All Posts

FIRSTLY, both U.S. citizens and green card holders, or lawful permanent residents, are generally obligated to file U.S. income tax returns and report their global income to the IRS for tax purposes. SECONDLY, this global income encompasses earnings from both the United States and any foreign countries. The penalties for failing to file or report foreign income and assets can be quite severe. LASTLY, it is beneficial to file taxes even when no filing requirement exists, simply to maintain current financial records. From personal experience, I have seen instances where taxpayers had to file up to three years of tax returns despite having no initial filing requirement due to circumstances that necessitated proof of income. Having tax returns on file significantly simplifies this process. Kind Regards, Franklin TurboTax Expert **Say "Thanks" by clicking the thumb icon in a post **Mark the post that answers your question by clicking on "Mark as Best Answer"

@question_tax2025  having gone through this whole thread and generally agreeing with  (a) that there is a "taxable gift" amount  specific to   Spousal gifting where donee/ recipient  is  Non-Resident  per section 2523 and follow-on section. (b) that the current  situation described  is NOT a gift ( absent a donor  spouse quit claim declaration or other such in-effect documentation)  from one spouse to another . It is merely  a  pooling of bank interest between the spouses for ease  of joint purchase. (c) State laws as to marital property and/or community property needs to be taken into consideration.   Is there more one of us can do for you ?   pk

Sorry, SwapnaM.  This is not helpful.  When I sign in to the account and go to the Tax Home page, scroll down to "Add a State" (it is a white bubble), it just takes me back to the sign in page (perhaps because my state doesn't have a state income tax?).   There is no listing for Tax Tools or Print Center.  And likewise I cannot find a Federal Information Worksheet, part V or any other number.   Any other suggestion? Btw: When I completed and filed the tax return (in February - there was some perk for filing early)   the Filing instructions/summary and the thank you letter from Turbo Tax that has always come with the finishing up in previous years was not included this time. 

If we are talking about medical insurance and life insurance for more than 2% shareholders of an S Corp, then please see the details below. The situation differs for non-shareholder insurances.    Medical Insurance (Health and Dental) must be included in the shareholders' wages and reported on their W-2. Then, it is claimed as the above-the-line deduction on the shareholder's individual tax return.  It is not reported on Schedule K-1 directly. Only as an expense that will be incorporated into the net income, which will show up in box 1 of the Schedule K-1.  Life insurance for a shareholder is not a deductible expense. So, you will not see it as part of the other expenses. However, it needs to be reported on Schedule M-1, line 3b, so that the Accumulated Adjustments Account (AAA) reflects the correct information. 

Per IRS: The penalty may be waived if the account owner establishes that the shortfall in distributions was due to reasonable error and that reasonable steps are being taken to remedy the shortfall. In order to qualify for this relief, you must file Form 5329 and attach a letter of explanation.   REASONS WHY  OBTAINING A WAIVER HAS A LOW PROBABILITY: New Rules: THE 2019 SECURE ACT  and subsequent regulations have changed the rules for inherited IRAs, making 2025 the STARTING POINT for compliance with the NEW RMD requirements.    No More General Waivers: The IRS has made it clear that they will no longer be issuing general waivers for missed RMDs from inherited IRAs.  IRS urges many retirees to make required withdrawals from retirement plans by year-end deadline    10-Year Rule: Most non-spouse beneficiaries must deplete the inherited IRA within 10 years after the death of the  original account holder, and this often involves taking annual RMDs.    Penalty for Non-Compliance:  If beneficiaries fail to take the required RMDs, they face a 25% excise tax penalty on the amount they should have withdrawn.  STRATEGIC PLANNING AND CONSIDERATIONS   Consult with a Tax Advisor: Given the complexity of the new rules, beneficiaries are strongly encouraged to consult with a tax advisor or financial planner to understand their specific obligations and how to best manage the inherited IRA.    Strategic Withdrawals Beneficiaries should consider the tax implications of their withdrawals, as the 10-year rule could lead to a significant tax burden in a single year if all the funds are withdrawn at once.    Roth IRAs: Beneficiaries of Roth IRAs are not subject to the same 10-year rule, but they are still subject to RMDs.  SUMMARY In conclusion, although there are a few specific situations where waivers may be applicable, there is no overarching exemption for the year 2025. Beneficiaries must adhere to the new RMD regulations for inherited IRAs or face potential penalties. IRS: Retirement plan and IRA required minimum distributions FAQs  Kind Regards, Franklin TurboTax Expert **Say "Thanks" by clicking the thumb icon in a post **Mark the post that answers your question by clicking on "Mark as Best Answer"

Since alimony is considered compensation for IRA purposes I can make an IRA contribution/deduction with just alimony income; however, if the feds aren't taxing the alimony I can't. California does not conform to non-taxability of Alimony so I should be able to make an IRA contribution for California purposes. In this instance wouldn't my basis be different?

@osbuntax611 Thanks for the question. Could you please clarify what application are you referring to? The answer depends heavily on the specific definition of "household member" used by the application you're filling out. There isn't one universal definition.

Yes, assuming you are a US Citizen, you still have to file taxes if you meet the filing requirements.   Here's an article that should help you figure that out. Note: If your only income was social security, you would not have a filing requirement. However, when additional income enters the picture (e.g., interest, dividends, stock sales, other pensions), you may have a filing requirement and it's possible some portion of your social security becomes taxable.  Here's something that explains that.  This article also does a great overview on taxes for expats! Hope this helps and enjoy your new home! **Please cheer or say thanks by clicking the thumb icon in a post **Mark the post that answers your question by clicking on "Mark as Best Answer" Regards, Karen TurboTax Expert   @osbuntax611 

If you find that you have correctly entered the bank details and that the IRS should have been able to withdraw the funds, then you can file an accuracy claim and ask for the refund of penalties and interest paid by you. In order to make the claim you will take the following steps:  1) Make sure that you have a notice from the IRS asking for penalties and interest 2) Go to Accuracy claim form  3) Select the year 4) Follow the steps 5) Wait for the email with link to upload the documents The Accuracy department will be the ones to determine if your claim is correct and they will send you the response to your claim.