Q: I inherited some stock from my mom that are paying really good Dividends and Capital Gains each year. Do we have to pay tax on that? A: Any dividends or capital gains that are issued to you are taxable. They will send a 1099 at the end of the year with the information that needs … Read more
With recent high school graduates getting ready for the next stage in their lives, I’ve been asked the following question by a few parents: “My child always had a part-time job and we had him claim exempt because he wouldn’t earn more than $6,300. But he is graduating this year and will be making more money now. What should he … Read more
Q: I heard the IRS changed the due dates of the 1099’s. I thought they were always due on January 31st, so what changed? A: W-2’s and 1099’s were always due to the recipients by January 31st, but, this year, they are also due to the IRS and SSA. This means that they have to … Read more
Q: I heard the IRS changed the due dates of our tax returns this year, is that correct? A: Actually Congress changed the due dates by the PATH Act (Protect Americans from Tax Hikes) of 2015, but, YES, returns are due earlier. The new deadline dates for returns are as follows: January 31st due to … Read more
Q: I never did the property tax refund before but my neighbor told me they got a refund. Do I have to apply to the Property Tax Refund? A: The MN Property Tax Refund is not a required form, but it can pay you a refund if you qualify. It’s a double sliding scale based on … Read more
Q: I heard that criminals are impersonating IRS agents with aggressive and threatening phone calls, is this true? A: Yes, the Treasury Inspector General for Tax Administration (TIGTA) announced that they have received reports of roughly 896,000 contacts and have become aware of over 5,000 victims who have collectively paid over $26,500,000 as a result … Read more
Q: I heard the IRS changed the due dates of our tax returns this year, is that correct? A: Actually, Congress changed the due dates by the PATH Act (Protect Americans from Tax Hikes) of 2015, but, YES, returns are due earlier. The new deadline date for returns are as follows: January 31st due to both … Read more
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 … Read more
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, … Read more
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 … Read more