Deceased Tax Refund
Question: A tax Q asked on behalf of my boyfriend’s mother….concerning a problem depositing a deceased spouse’s check?
My boyfriend’s father passed away on June 16th, 2006. He and his wife had been filing “MFS”, but this year, she filed separately on his behalf and signed her name and “surviving spouse” on his return. For whatever reason, she elected to have the refund mailed to her house.
When the refund check arrived, she took it to the bank where she and he had a joint account, but the bank refused to let her deposit the check, saying that she had to mail it back to the IRS and have them issue a new check in HER name.Is this a bank policy, or is there some rule about this? BTW – she had the taxes prepared by an outside source, and she says they never mentioned to her that she may have trouble depositing the check…….
And we live in Texas, if that makes any difference………
Any feedback would be MUCH appreciated!!!!
Answer: Generally, the person who is filing a return for a decedent and claiming a refund must file Form 1310 (PDF) , Statement of Person Claiming Refund Due a Deceased Taxpayer, with the return. However, if you are a surviving spouse filing a Joint Return, or a court appointed or certified personal representative filing an original return for the decedent, you do not have to file Form 1310. Personal representatives must attach to the return a copy of the court certificate showing the appointment.
You need to send the check back with the form 1310
http://www.irs.gov/taxtopics/tc356.html
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Question: Do I need a business account and need to register a company?
I am going to start a web/internet based business where in I will be receiving money as fee from international customers. I may also be sending them money as part of payback/refund.
I am planning to use PayPal as the payment solution. Do I need to -
1. open a business account,
2. register a company,
3. get a service tax id?I have heard that PayPal causes problems in withdrawing funds if not having a business account/service tax id/company name? Will there be any tax related implications without any of these three?
Please help. Any information/suggestion is most welcome.
I am talking about genuine service based internet business. For example, web hosting etc.Answer: You better be careful about these businesses. These are scams. Those money transfer businesses. Google it.
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Tax Refund Child Care
Question: 2009 Tax Refund- 29500 fed income Married – 4 kids 5 and under- paid 2700 in taxes, will it be over $8000..?..?
Please only answer if you know what it would be? married filing joint- gross 29500, 2800 paid in fed taxes(long story on why so High, bonus taxed. 4 kids, no child care was paid for etc, just basic.. I know there is eic and child tax credit in addition to return of fed tax with that income. Thanks, Just curious
Answer: In your case you should not have any Federal income tax withheld from your wages. Your W-4 should reflect Married + 14 withholding allowances. This will wipe out any Federal withholdings. Your Federal income tax liability before any credits are applied is already $0.
You’ll receive $4,000 under the Additional Child Tax Credit plus over $2,500 under the Earned Income Credit, plus whatever Federal income tax was withheld. With $2,800 already withheld that’s over $9,300 in refunds already. That is FAR too much money in the government’s hands!
I would strongly urge you to file a new W-4 with your employer reflecting Married + 14 allowances. Then file a Form W-5 to get a partial advance on your EIC in your paychecks. Those two steps alone should increase your take-home pay by nearly $100 per week.
Raising 4 kids on that income is tough and you need as much money in your pocket on payday as possible as opposed to letting the government sit on nearly $10,000 of your money. And yes, if you don’t make any changes now, your refund would be close to and maybe even a bit more than $10,000.
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Gross Income What Is
Question: Can I deduct the amount I pay for utilities on a rental unit before reporting gross income?
I own a duplex and rent the other apartment out.
They have separate heating, hot water and electrical, but I include them in their rent, they come on a separate bill from utility companies.
When I report my gross income to IRS do I have to report the entire rent amount, or can I deduct what I pay for their utilities before that?
It would be advantages for me to be able to report a lower gross income rather then deduct it afterwards.
Any help would be appreciated.
Answer: You would subtract the utilities as expenses on Schedule E. Then after finishing Schedule E, whatever is income or loss will be transferred to your 1040 as part of gross income. So yes, the utilities are taken off before gross income is reported.
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