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Questions Answered by Michelle D. Wynn
2 Answers | Asked in Tax Law for Oklahoma on
Q: I have a $105000 federal tax lien on my credit report that is non collectible , how can I go about getting this removed
Michelle D. Wynn
Michelle D. Wynn
answered on Jan 12, 2018

It depends on why you are saying the lien is non-collectible. If it is past the statute of limitations for collection, the lien will usually have expired and it will remain on your credit report as a historical bad debt item until it ages off. If you are referring to the more likely reason, that... View More

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1 Answer | Asked in Divorce and Tax Law for Arizona on
Q: How do I know if I have to file jointly or separately with an ex-spouse?

My divorce was finalized August 2, 2017. I want to file separately. He says because we were married for most of the year we have no choice. Is this accurate?

Michelle D. Wynn
Michelle D. Wynn
answered on Jan 10, 2018

Because you were divorced on 12/31/2017 you cannot file with a married filing status. You should each file your returns as Single or Head of Household, whichever is appropriate in your circumstance.

2 Answers | Asked in Consumer Law, Estate Planning and Tax Law for California on
Q: If you cosign for a mortgage in NJ and make it your primary residence, what are tax implications if you live in CA?

If you cosign for a mortgage in NJ and state that it is your primary residence, what are the tax implications if you move back to CA? How would you file your tax return considering you had two primary residences (nonconcurrently) that same year?

Michelle D. Wynn
Michelle D. Wynn
answered on Jan 10, 2018

It sounds like you are stating that you indicated that the NJ home was your primary residence on the mortgage application for the home. There may be special restrictions dealing with the mortgage or other home purchase financing specifying the amount of time the home had to be your primary... View More

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1 Answer | Asked in Tax Law for Maryland on
Q: If an EU citizen works for an EU company - paid to their EU bank - while living in the US, do they have to pay US taxes?

I'm a US citizen, but my wife is from the EU. We are moving back to the US, but she wants to keep her job from an EU company and work for them from home in the US. Does she have to pay US taxes? The money is going from a foreign company to a foreign bank, in €, and to a foreign citizen.... View More

Michelle D. Wynn
Michelle D. Wynn
answered on Jan 9, 2018

If your wife is going to be in the US for enough of the year that she is treated as a US tax resident (which can be based solely on time spent in the country rather than citizenship) then she would need to declare her EU income on a US tax return. In addition, she would be subject to US income tax... View More

1 Answer | Asked in Tax Law for Pennsylvania on
Q: Do capital gains change tax bracket I am in?

Let's say, my annual income is around 50 K. Less than a year ago, I invested in stock markets around 10k and it became around 500K! So, my question is, does this huge short-term capital gains will change my tax bracket? With this Hypothetical values, how much tax should I pay on my capital gains?

Michelle D. Wynn
Michelle D. Wynn
answered on Jan 9, 2018

First of all, congratulations on such a successful stock investment. Now, on to the tax question. If you were to cash out the investment when it was invested for less than one year, it will typically not qualify for the reduced capital gains rates. Instead it would be taxed at ordinary income tax... View More

1 Answer | Asked in Tax Law for California on
Q: How would this work on a Schedule C, as we have not made a distinction between wages and business income in the past
Michelle D. Wynn
Michelle D. Wynn
answered on Jan 5, 2018

Under longstanding tax law, the owner of a sole proprietorship, is not entitled to receive wages from his own business. If the business paid wages to other employees, then those could be used for purposes of calculating the deduction. If the business does not pay any wages, then this may prevent... View More

1 Answer | Asked in Tax Law for Texas on
Q: My wife/I have a joint owned savings acct. My adult son isn't a signer. Can we add him as signer or will there be taxes

The money in the savings acct ($35000.00) came from a joint checking account owned by me and my son (32 years old now, acct opened when he was minor). The money in the checking account is earned by him with employment direct deposit. I have been transferring money monthly for many years from the... View More

Michelle D. Wynn
Michelle D. Wynn
answered on Jan 5, 2018

It seems like the savings account was really an account where you were holding these funds in trust for your son and he was the beneficial owner of the funds all along. If he was always the beneficial owner of these funds, then the money moving to the savings account would not have been a gift to... View More

1 Answer | Asked in Tax Law for Alabama on
Q: Okay well my daughters father owes childsupport and when it’s around tax time I never receive anything from his taxes.

The irs saids that they can’t do anything and my dhr worker told me she can’t do nothing about it either. What can I do since he’s way behind on childsupport .

Michelle D. Wynn
Michelle D. Wynn
answered on Jan 5, 2018

Typically if your child support enforcement case is being handled by the child support enforcement division they can obtain orders that allow for garnishment of any back child support from the father (or mother). The child support enforcement agency would send this order to the IRS and the IRS... View More

1 Answer | Asked in Tax Law for California on
Q: I am a sole proprietor and file a Schedule C. Can I use the 20% deduction in the new law without being S Corp
Michelle D. Wynn
Michelle D. Wynn
answered on Jan 5, 2018

Sole proprietors filing a Schedule C can qualify for the new 20% deduction, assuming they otherwise qualify for the deduction. The deduction is available for any pass thru entity which includes S Corps, Partnerships, and Sole Proprietorships, among others.

1 Answer | Asked in Tax Law for Washington on
Q: I need to file an amended tax return for 2015.

I need to file an amended tax return for 2015. I have to change my filling status from single to married filing jointly. My wife was not a US resident in 2015, so I filed as single. What I want to know is, am I allowed to use her social security number now to amend my 2015 return? Even though she... View More

Michelle D. Wynn
Michelle D. Wynn
answered on Jan 5, 2018

If you were married to your wife at the end of 2015 (regardless of whether she was US resident at the time), you can file for a Married Filing Joint status. However, by her consenting to filing jointly with you she is agreeing to be treated as a US Tax Resident for many tax purposes. This means... View More

1 Answer | Asked in Tax Law for North Carolina on
Q: Is the spouse of a S corporation 100% share owner responsible for tax issues/investigations related to the business?
Michelle D. Wynn
Michelle D. Wynn
answered on Dec 20, 2017

It is sometimes possible for the IRS (or state taxing authority) to hold a spouse responsible for business tax issues their spouse's business has. I would recommend that if your spouse's business is having tax problems, he/she should get competent counsel to assist in dealing with the... View More

1 Answer | Asked in Tax Law for Washington on
Q: When operating under a entertainment (dancing) license as an independent contractor, what taxes must I file?

I'm assuming I must file my personal taxes (which should cover my income and deductible expenditures) but do I need to file other business taxes? Does my time to file change?

And I just read that maybe I should have been paying as I earned; is this correct? I didn't explicitly... View More

Michelle D. Wynn
Michelle D. Wynn
answered on Dec 20, 2017

It sounds like you would be classified as a Sole Proprietor for purposes of your tax filings. This means that your personal income tax return will include a Schedule C where you will declare your income from dancing and any deductible expenses associated with producing this income. This will also... View More

1 Answer | Asked in Immigration Law and Tax Law for Florida on
Q: If i am a illegal immigrant that overstayed their stay can I file for a tax is.
Michelle D. Wynn
Michelle D. Wynn
answered on Dec 14, 2017

For the most part, your immigration status does not change your obligations to file and pay taxes. If you already have a Social Security Number or ITIN, you should continue using that number. If you don't, you can apply for an ITIN and the IRS will issue you one. The IRS does not care about... View More

1 Answer | Asked in Tax Law for California on
Q: Bitcoin and German/US Tax law

I am not sure if you know what bitcoin is, but its a digital currency. In germany, I can cash it out tax free, but I would like to know, if I bring it back to the US, would there be some kind of tax? If I turn it into an physical cash in a bank account and wire it here, or just sell bitcoin... View More

Michelle D. Wynn
Michelle D. Wynn
answered on Oct 24, 2017

The answer to this question largely depends on whether you are US tax resident. If you are a US Citizen, Green Card Holder (Permanent Resident) or reside in the US long enough during the year that you are treated as a resident for tax purposes (depending on your visa type), then you are taxed on... View More

1 Answer | Asked in Tax Law for California on
Q: Tax concern

I have been claiming single/0 since I started working and always gets at least $1,200 refund each year. I got married and decided to change my tax withholding online. I will apologize in advance to the experts when it comes to finance and taxes, but I am someone who knows little about taxes. I... View More

Michelle D. Wynn
Michelle D. Wynn
answered on Oct 19, 2017

It is hard to answer whether there will be any balance due with your tax return when you file in 2018. However, if you were claiming single/0 for the majority of the year, got married during the year (and presumably would be filing jointly with your spouse which would give you a lower tax rate than... View More

1 Answer | Asked in Tax Law for Washington on
Q: Can a publisher legally file their taxes without knowing the real names of the authors who publish through them?

I apologize if this is a dumb question, but I am a bit on the young side so I (fortunately) have not had much tax experience.

To make a long story short, I have been considering trying to start a small publishing house that focuses on maintaining anonymity for the author - not even I would... View More

Michelle D. Wynn
Michelle D. Wynn
answered on Oct 11, 2017

This proposed business model may cause some issues with intellectual property and copyright issues (and perhaps other issues if the reasons for secrecy impacted criminal law concerns), but for tax purposes the biggest issue would be not being able to issue 1099s to your authors. Typically... View More

1 Answer | Asked in Tax Law for California on
Q: Proof of a gift to IRS

I'm bringing 20k of travellers cheques to US, it is a gift from my dad to support me as educational tuition and some living cost.

I understand that it will need to be declared at the custom upon entry. And that it will not be taxed because it is a gift

But what should I do to... View More

Michelle D. Wynn
Michelle D. Wynn
answered on Sep 1, 2017

You can get your dad to write you a letter explaining this is a gift. Given the family relationship, this should be sufficient proof.

1 Answer | Asked in Tax Law for California on
Q: Taxation on bringing in over 10k from oversea

My dad is giving me $20k in traveller's cheques as part of my tuition and living cost here in US. I'm a citizen myself and I know I'll need to declare any amount over 10k at the custom.

My question is, will I be taxed on this amount of travellers cheques by the irs? I... View More

Michelle D. Wynn
Michelle D. Wynn
answered on Sep 1, 2017

You would not have to pay taxes on this because it is a gift. If your total gifts from your dad plus gifts from any other foreign persons related to your dad for the year are more than $100,000 USD, then you would need to file an IRS Form 3520 to declare the total value of the gifts you received... View More

1 Answer | Asked in Social Security and Tax Law for Georgia on
Q: US teacher working as a freelancer in Europe: US self-employment tax even with mandatory social security payments?

Freelancers mostly count as self-employed, but freelance teachers are a exception in this European country: They must pay social security (almost 20% of their income into retirement, health insurance on top of that). Of course, they also pay income tax on their profit. Is such a teacher subject to... View More

Michelle D. Wynn
Michelle D. Wynn
answered on Aug 30, 2017

It is possible that this teacher may be subject to US self-employment taxes, depending on which country the teacher is working in. The US has entered into "totalization agreements" with many countries that can relieve a person from having to pay Social Security-type payments in both... View More

1 Answer | Asked in Divorce and Tax Law on
Q: My wife and I are divorcing, and I'm giving her my 401k in the settlement. Does she get taxed on this?

She will be using the money to live, and not rolling it over.

Michelle D. Wynn
Michelle D. Wynn
answered on Aug 28, 2017

For the transfer of your 401K to her, make sure that you use a Qualified Domestic Relations Order (QDRO). This will ensure that the transfer of the 401K from you to her is not treated as a taxable distribution to you. If done in the proper manner, the 401K will be transferred into her name and she... View More

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