Real tax questions from real readers, answered. Got a question of your own? This is where Taxgirl answers them.
Taxpayer asks: When figuring home office deduction for a separate structure like a garage, do you include the full square footage of the house and the garage or just the garage when it asks for office space? Taxgirl says: Assuming that you don’t pay separate utilities, etc., for the garage space, it makes the most…
Taxpayer asks: I sold a primary residence last yr and bought a new one. I did not gross over $250,000 on the sale of the house. What figures should I pay attention to for reporting purposes from the closing sheets? I presume that any taxes paid out prior to the sale of the house are on…
Taxpayer asks: I know you have probably gotten these questions hundreds of times, but sorry I need to ask again for my own benefit. First off, I have a little business on the web for which I am self employed and have no employees. This business has been around for a few years however I…
Taxpayer asks: My mom gave me money through my paypal account. There were 3 separate transactions totaling $380 but was non-business related, do I need to claim these transactions along with the other income from my business since they used my PayPal account?Taxgirl says: Absolutely not! Though I will take this opportunity to discourage you…
Taxpayer asks: Hi Taxgirl,I’ve been claiming lots of dependents (that don’t exist), but not filing or paying any Federal income taxes for the past three years. What is going to happen to me? Taxgirl says: Generally, if you’ve made a genuine mistake or you’ve omitted to include income on your return (or file at all),…
Taxpayer asks: Hey there! I found your blog entirely through random surfing, and it’s perfect for a question I have right now.I’ve returned to being a full-time student, after several years of working in the real world. Last year, my income was a big, even 0. I had simply no taxable income. The IRS seems…
Taxpayer asks: I just got married to my beautiful wife who happens to be Australian. I’m a graduate student in San Diego and she hasn’t come to live with me yet. My wedding was on December 27th so I’m wondering if it is somehow illegal for me to file my taxes as unmarried. She has never made…
Taxpayer asks: A tax client was issued a 1099-MISC for rental income received in 2006. Box 1 of the form showed $1000 when the correct number should have been $500. My client contacted the issuer, but the issuer will not correct this error. Please advise as to what I should do. Taxgirl says: Gosh, this…
Taxpayer asks: For the past few years, I’ve earned a little bit of self-employed income here in Philly. I never paid the city’s Business Privilege Tax (BPT) until 2006, when I paid all my delinquent business taxes, plus interest and “court costs.” Can I deduct those back taxes on my 2006 federal taxes? If so,…
Taxpayer asks: Have seen many 4-digit codes on “Where’s my Refund?” Do you have the de-coder ring? Specifically, what does 1301 and 1201 mean? Taxgirl says: According to the Internal Revenue Service (IRS), 1201 is a “catch-all” code when no other code applies and 1301 is a code that means that a prior return is…