taxanswers

Posted: Feb 23, 2007 5:10 PM

State: Arkansas

QUESTION

My 1099R is a pension that is by Goodyear Tire and Rubber Co.,Am using Turbo tax to transfer from Federal to State,Box 1 amount, not in box 2B,axable amount not determined. Shouldn't the amount show up on line1*A instead of 18.

ANSWER

I am not sure I understand exactly what you mean by transfering from Federal to State? I like TaxAct better than Turbo, maybe the problem is in the software.

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Posted: Feb 6, 2007 6:06 AM

State: Pennsylvania

QUESTION

If husband owes payroll taxes on an incorporated business he once had, is wife responsible for it also?

ANSWER

If you filed a joint return, the wife is probably liable. The IRS wants married couples to file joint returns for this very reason. That is why they make it a better deal to file jointly, because it benefits them. It gives them two people to collect the same tax debt from.

Posted: Jan 22, 2008 9:23 PM

State: Texas

QUESTION

Can't i just give all my property to my kid before I die and avoid estate taxes?

ANSWER

Yes. That is what I intend to do. Here is an article on estate taxes from The Wall Street Journal:

Calculating Federal Estate Tax

By The Wall Street Journal

Last update: 7:43 p.m. EDT Aug. 14, 2007

Q: I bought a duplex for $155,000, and it's now worth about $600,000. I was planning to leave it to my daughter. What amount of federal estate tax would there be?

A: The answer depends on the size of your total estate, including the duplex. For this year, the basic exemption is $2 million, and the top estate-tax rate is 45%. That's also the exemption level -- and the top tax rate -- for 2008. In 2009, the exemption is set to rise to $3.5 million. In 2010, the federal estate tax is scheduled to disappear and then reappear in 2011. But don't count on the tax to vanish. With Congress concerned about big budget deficits, lawmakers probably won't eliminate this tax. Congress may compromise by raising the exemption level to somewhere around $3.5 million and reducing the top rate. But nobody knows for sure. If you leave the duplex to your daughter in your will, there's another important provision to be aware of known as "step-up in basis." If she sells the duplex, under current law, her tax basis typically would be the duplex's value on the date of your death, not the $155,000.