JENNIFER: JOINING US TO ANSWER
TAX QUESTIONS, TONY KING OF KING
KING & ASSOCIATES.
IT'S ABOUT THAT TIME.
>> GETTING CLOSE.
JENNIFER: THE FIRST QUESTION, I
STARTED AN INTERNET BUSINESS IN
2015, REGISTERED IT WITH THE
STATE AND BUILT A WEBSITE.
I HAVEN'T EARNED ANY INTERNET
YET BECAUSE I HAVEN'T WORKED IN
THE COMPANY YET.
DO I PUT IT ON MY TAXES.
IF SO, WHERE?
>> YOU CAN DEDUCT YOUR STARTUP
COSTS WHEN YOU FORM A NEW
BUSINESS.
USE A SCHEDULE C.
ALTHOUGH YOU HAVEN'T GENERATED
INCOME YET, YOU CAN STILL DETUKT
YOUR INITIAL STARTUP COSTS.
JENNIFER: CAN ESTATE TAXES PAID
BE DEDUCTED ON THE 1040.
>> UNFORTUNATELY NOT.
THE ESTATE FILES ITS OWN TAX
RETURN SO YOU CANNOT COMINGLE
THE TAXES OF THE ESTATE WITH
YOUR PERSONAL 1040.
SO YOU CANNOT DEDUCT ESTATE
TAXES.
JENNIFER: THE NEXT PERSON HAD A
DEATH IN THEIR FAMILY.
MY MOTHER IN LAW HAD A DEATH IN
THE FAMILY.
MY HUSBAND'S SIBLINGS SPLIT THE
PROCEEDS FROM THE SALE OF THE
HOUSE.
HOW CAN I REPORT THAT ON MY
TAXES.
THE EXECUTOR DID NOT TAKE OUT
TAXES OR FILE ANYTHING.
>> IT SHOULD HAPPEN THAT THE
SURVIVE CHILDREN SHOULD HAVE
CREATED AN ESTATE FOR THE
MOTHER, FOR THE DECEASED MOTHER,
THEN THE ESTATE WOULD BE
RESPONSIBLE FOR SELLING THE
HOUSE AND IF THERE'S ANY GAIN OR
LOSS ON THE SALE OF THE HOUSE,
THEN THAT MONEY WOULD HAVE BEEN
TAXED AT THE ESTATE LEVEL AND
THEN THE MONEY COULD HAVE BEEN
DISTRICTED TO THE FIVE OR SIX
CHILDREN.
SO IT SHOULD HAVE BEEN AN ESTATE
CREATED AND THEN THE ASSET WOULD
HAVE BEEN THE DECEASED MOTHER'S
HOUSE INSIDE THE ESTATE.
JENNIFER: IF MY GIRLFRIEND, HER
DAUGHTER AND I LIVE TOGETHER
DURING 2016, CAN I CLAIM THEM IF
NO ONE ELSE IS CLAIMING THEM?
>> UNFORTUNATELY NOT.
THIS PARTICULAR SITUATION, THERE
HS TO BE A RELATIONSHIP TEST.
AND A SUPPORT TES NOR
IN ORDER TO
CLAIM SOMEONE AS A DEPENDENT.
THERE'S NO RELATIONSHIP HERE
BECAUSE THERE'S NO GU
BLOOD
RELATIVES
JENNIFER: I HAVE AN STOCK
ACCOUNT FOR MY BOYS.
WHEN IS IT TAXED?
>> I'M ASSUMING IT HAS THE
SOCIAL SECURITY NUMBER FOR THE
CHILDREN.
THERE ARE TWO TIC
PARTICULAR
SITUATIONINGS WHERE IT COULD
CREATE INCOME.
ONE, IF THERE'S AN INCREASE OR
IF THE STOCKS ARE SOLD.
THAT'S GOING TO TRIGGER A
TAXABLE EVENT.
IF IT'S IN THE SOCIAL SECURITY
NUMBER OF THE KIDS, MORE THAN
LIKELY THE KIDS WILL NOT HAVE TO
FILE A TAX RETURN BECAUSE THEY
THE INVESTMENT INCOME DOES NOT
EXCEED A CERTAIN AMOUNT.
JENNIFER: VOLUNTEERING QUESTION.
I VOLUNTEERED FOR A 501C3 ANIMAL
RESCUE.
AT THE END OF JANUARY, I FELL,
FRACTURED MY SHOULDER AND A KNEE
CHASING A FOSTER DOG WHO GOT
LOOSE.
I INCURRED OVER 2,00 IN MEDICAL
QU
COPAYS SO FAR.
ARE THOSE TAX DEDUCTIBLE.
>> YES, ALL A DEDUCTIBLE.
IN ORDER TO BE DEDUCTIBLE, THE
MEDICAL EXPENSES MUST EXCEED TEN
PERCENT OF YOUR ADJUSTED GROSS
INCOME.
FOR SOMEONE MAKE $50,000 A YEAR,
THE FIRST $5,000 WOULD NOT BE
DEDUCTIBLE.
DEPENDING ON WHERE T $2,000
FALLS ON THE INCOME RANGE,
SCHEDULE A IS WHERE YOU'D REPORT
IT.
JENNIFER: WHAT ARE YOU HEARING
IN TERMS OF HOW FAST REFUNDS ARE
COMING BACK TO PEOPLE.
>> SLOW.
FOR SOME REASON, IT'S SLOW.
THE E-FILE SYSTEM WAS OPENED UP
JANUARY 23rd WITH THE INTERNAL
REVENUE SERVICE.
BUT I'M GETTING CALLS FROM MY
CLIENTS SAYING, WELL, YOU
E-FILED MY RETURN LAST WEEK.
WHEN SHOULD I EXPECT IT.
TYPICALLY, IT'S FIVE TO SEVEN
BUSINESS DAYS FOR THE INTERNAL
REVENUE SERVICE.
JUST A LITTLE BIT SHORTER FOR
THE STA OF MARYLAND.
JENNIFER: THANK YOU FOR COMING
IN PUP ALWAY
IN.
ALWAYS HAPPY TO HAVE YOU.
YOU CAN EMAIL YOUR TAX QUESTIONS
DIRECTLY TO
TAXQUESTIONS@WBALTV.CO
TAXQUESTIONS@WBALTV.COM.
GO TO THE WEBSITE AND CLICK ON
CONSUMER ALERT.
IF YOU'D LIKE TO GET IN TOUCH