Tax Attorney Long Island

When overpaid state income tax is itemized into the federal deduction, I get back federal money I’m not technically entitled to. Next year I will have to report the state refund and pay federal taxes on it.

1) Will I have to report the 2006 state refund only if I itemize on the 2007 tax return? If yes, great (though doesn’t make much sense), if not, where will it be reported?

2) Is there a way to adjust my federal taxes this year so that I don’t get back this federal money now and don’t have to report state refund next year? If yes, how? I was hoping for something on Schedule A, but I don’t see it.

Thanks.
Ok I see the answer to #1 — it’s like 10 on the 1040. Thanks, Bill.

But why would I have to amend my return? I haven’t filed it yet. I will know exactly what all the amounts are before I file, I just don’t know how to adjust my itemized deductions.

crazydave — your answer to my #2 doesn’t apply because if I receive a refund for 2006 taxes, I have to report it on my 2007 tax return. Withholding won’t change that. And no, I don’t need to adjust anything — this year is a special case and I didn’t know I’ll itemize until November.

The actual problem is that I plan to be in a higher tax bracket in 2007, so if I have to pay tax on my refund I will simply lose a small chunk of money.
skip — yes, it’s legitimate, and not just for 2006, it’s also for 2007. I think people are having a hard time reading the years in my question, but they are correct, you just need to pay attention — I refer to the 2006 tax return as the one due April 15 2007, and the 2007 tax return as the one due April 15 2008.

You said that “The clawback is to the extent of the tax benefit received.” But according to my estimates it is not. Example — if my state refund is $100, then I will save $25 this year (because that $100 is part of itemized deductions under “state taxes paid”), but I will pay $28 next year.(because the refund will be reported on the tax return as income).
It’s too late to adjust anything for this year, and there won’t be any need next year.

I am going to itemize, there’s no question about it. I just want to itemize in such a way that my state tax refund is included in the federal calculation. Generally federal is calculated first, then propagated to the state forms. I need the info on the state form to make it back to federal. I want to pay the proper federal tax with my 2006 return, not with my 2007 return.
Clarification for Judy — 12% interest (~ 28/25) is a little too high, especially considering that I know all this in advance. There’s gotta be a way to fix it, does no one know….

I looked on a tax table that the tax is 25% for 2009. Is this true?
So if I make $1462.00 gross bi-weekly. So If I am write this would
be over $365 each paycheck in federal taxes. Am I correct or did
I calculate wrong. I do not want to spend no more that $250 for total
deductions.

Say I were to win a few million dollars gambling.

I know you get the w-2g at a casino, but can you reinvest the winnings in a business or other investment in order to avoid paying the taxes?

For example:

Bob wins a 5 million dollar super-fecta at the horse track. He then takes the 5 million dollars and uses it to invest in Bob’s Company Inc. in the same Tax year. Because Bob reinvested that money into a company, is there any way the company can receive the tax liability for the income he provided them in exchange for the income he received?

If I had won money, I would hire a tax attorney, but I am just curious how gamblers get tax shelters.

Can you file federal taxes as joint/married one year and the following year file married but separate?

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I thought I’d try doing our taxes this year asked DH for his W-2 and he handed me a stack from 2000 – 2006 and told me the last time he filed was 1999! Looking the W-2’s over noticed one year had $0 Fed tax withholding and the rest were only a little over $1000.00 in Fed withholdings. He makes between $30 – $46 a year. He then tells me he prefiled with his employer to go tax exempt for one year and the rest of the years as having 8 dependents when there’s only DH, my son and I.

#1, DH says to do nothing until we can get a tax attorney.
I want to get these things filed ASAP and see where we stand.
Which would be best?

#2, I don’t work DH wants to file Married filing jointly to try and get the most to offset his owed amount. My understanding is if we file jointly I become responsible for this as well. After years of this kind of crap, divorce is afloat and I don’t want to be stuck with his idiots debt. Any advice?
Been married since 1995
Rent our home
Have no assets

Should I file these ASAP or wait to get a tax attorney?

After years of being in the hole I was given control of our finances in June 2006 and just got us paid up on all our debts. Now this. Can I claim the first $12,000.00 of DH’s life insurance as a tax free gift? I am only joking……. ha ha yeah ha

In 2008 I owed $1100 in federal taxes after running through my tax software.

Well, I changed all my withholdings to 0 Federal and 0 state, plus single even though I am married. I changed my wifes income to 0 Federal and 0 state, but married status.

This year we still owe $550. I am very worried about an audit. What should I do?

recourse does the living next of kin have. They live in the home of the deceased (willed to her). The mailman had a certified letter from the IRS and she refused to sign for it stated that her mother was deceased. She is concerned that they may try to gain entry into the home. My question is this can the IRS come into the home for any reason and if so would they have to have a warrant. Who is responsible for the tax debt of the deceased/

I didnt file tax last year 2007. I make a small profit, roughly $20K on a cash-based business, buying and selling stuff. (not a registered sole proprietorship, just doing it out of my own spare time)
I have to show my last year’s tax to sponsor my husband for his green card. would I be able to file by 2007 tax return now? how? and where can i find a list of penalties for late filing? thanks

My mother is over 65 and owes the IRS back taxes. She makes under $26,000/yr. We have hired a law firm to negotiate with the IRS as she does not have the means to pay.She recently heard of a person (a friend of a friend) that found out after some research,that they are not liable because they are over 65 and make under either 24k or 26k per year. However, my mom’s attorney’s (who only deal with the IRS) neglected to mention this, so I’m not sure if it’s true. Possibly the law firm knows this and wants to collect fees anyway? Any info would really be appreciated.

do you put in paid federal income tax and and paid in social security and medicare you’ve paid in ?

I need a website from where I can download income tax calculator for India for the assessment year 2008 – 2009 Somebody please provide the relevant link. Thanks
raghavan_sn@yahoo.com
Thanks Prasanth,
That was really nice of you. Many thanks.

I have a friend who is going through a major face to face tax audit next week.
I remember reading somewhere that if the auditor asks for a previous year tax return that you should refuse to do this. It went on to explain why and how do refuse nicely.
Does anyone know about this or remember reading this article. It was sometime in the last 1-2 months in a magazine and could have been in Money but I cannot find it now.