Archives for September 2016

Back Taxes & IRS Calls | Southern Minnesota

Q:  I know I owe back taxes to the IRS, but they called me, demanded credit card payment over the phone, and told me that the sheriff would be out to arrest me if I didn’t pay them immediately.  Can they do that? A:  DON’T GIVE OUT YOUR CREDIT CARD NUMBER!  IT’S A SCAM!  The […]

File tax return for child’s inherited stock? | Southern MN

Q:  Our daughter inherited some stock from her grandparents that are paying her really good dividends and capital gains each year.  Do we have to pay tax on that? A:  She would have to file a tax return claiming the income if the amount is over $2,100.  If that was her only income and it […]

Filing Taxes for Kids | Southern MN

Q:  My kids, ages 12 & 14, both worked this year.  Do I have to file taxes for them-they hardly had any withholding? A:  Well, that depends on exactly how much money they made.  If, in 2016, you are claiming them on your tax return as your dependent, and they earned more than $6,300 working–yes, […]

Portability of Estate Tax Exemptions

Q:  I heard that estate tax exemptions have portability.  What does that mean? A:  Portability means that a surviving spouse can make use of any unused estate tax exemption, of the deceased spouse–thus increasing the amount of an estate that escapes the federal estate tax.  However, the only way to use “portability” is to elect […]