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Washington Tax Law Questions & Answers
1 Answer | Asked in Employment Law and Tax Law for Washington on
Q: I am taking severance pay. They are classifying as a gift and taking 35-40%in taxes. Is there a way to make it pay?

My position is being eliminated. I'm taking severance pay. Want to get it as pay not a gift with huge taxes taken. Can that be done?

Steven J. Fromm
Steven J. Fromm answered on Nov 17, 2020

This seems strange. In a business context and where services are involved, it seems unlikely that any payment can be considered a gift. This sounds like taxable income to me. Regardless of how the employer treats it, you still have the responsibility to report all of your taxable income and if... Read more »

1 Answer | Asked in Tax Law for Washington on
Q: Does my WA LLC need to register for a state tax ID if we won't be making any gross income?

I have registered a WA state LLC just recently, and will be working with 1 other colleague. I have also obtained a federal tax ID.

However, we won't be making any money for a while. Is it necessary to get a state tax id if we will not have any gross income? I know washington has a... Read more »

David Ostrove
David Ostrove answered on May 3, 2020

The State of Washington probably requires an annual report from your LLC and an annual fee of $71.00

You should consult a State of Washington Lawyer when you set up an entity such as an LLC.

The profits and losses of your LLC pass through your LLC to the owners of you LLC.

2 Answers | Asked in Tax Law and Immigration Law for Washington on
Q: If we go back and amend our 2019 tax return by adding my newly acquired SSN, would that qualify our family for a check?

I am a recent immigrant to the US from the UK. I have a wife and two children here who are both American.

I've just found out that my family wont get a stimulus check because we filed 2019 joint tax return last month using my ITIN number (I was a non-resident at the time but still... Read more »

Adan Vega
Adan Vega answered on Apr 21, 2020

You should consult with a CPA or a licensed tax accountant to assist you in amending your tax return. Hopefully, the amendment can put you in position for a stimulus check.

Good luck to you.

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1 Answer | Asked in Tax Law for Washington on
Q: My husband has taken draws from a company that he is part owner in for two years and hasn’t claimed as income on taxes.

He has always handled taxes in past and I just found this out. Is this illegal? What could the ramifications be for me as a spouse? If I file separately, can I avoid being responsible for his decision? Legal seperation is in the works for marriage

Linda Simmons Campbell
Linda Simmons Campbell answered on Apr 16, 2020

If you have or will file any joint tax returns with him you are both separately and jointly liable for any taxes due whether they are due when the return is filed or as the result of an audit. If you file separately you will not be liable for any of his tax debt for the years you have filed... Read more »

1 Answer | Asked in Tax Law, Gov & Administrative Law and Social Security for Washington on
Q: Who is entitled to the stimulus check?

A couple days ago my husband was arrested and will most likely be doing prison time.

We are separated (not legally) and filed married filing jointly for 2019.

When the 1200 for him comes with the stimulus check, am I legally entitled to keeping it?

The reason I ask this... Read more »

Bruce Alexander Minnick
Bruce Alexander Minnick answered on Apr 9, 2020

This is not a legal question. This is a serious family control question--the answer to which will be answered by the two people affected: you and your husband.

I will ask you a question to give you a large hint as to the answer: If your husband was awarded the Medal of Honor for bravery...
Read more »

1 Answer | Asked in Tax Law for Washington on
Q: I didn't file my taxes from 2008 and possibly 2007 due to the fact that I was both physically and mentally impaired

At this time. I was due a refund and was wondering if I am still eligible for it? I read somewhere that exceptions were made for such impairments. I haven't worked since till this year when I did file and will it effect this or the 1200 stimulus check I may receive?

Bruce Alexander Minnick
Bruce Alexander Minnick answered on Mar 31, 2020

Sorry, but you are way too late to try to catch that gravy train--which left the station over 12 years ago. But who knows? If you did file a tax return for 2018 you might luck out and receive $1,200.

1 Answer | Asked in Real Estate Law and Tax Law for Washington on
Q: Question for a Tax Attorney about capital gains on houses

in 2005 we (My wife and I) bought a house and lived in it from 2005 till 2008 just after I went into the Army. We were outside the driving area for the base I was stationed at. We turned the property in to a rental and it remained a rental till we sold it in 2018. We used the tax exclusion for... Read more »

D. Mathew Blackburn
D. Mathew Blackburn answered on Mar 11, 2020

There is an ability for military personal to suspend the personal residence exemption but you have to be deployed during the suspension period. There's nothing in your question that makes me think it would apply, but I don't have all the facts.

It's probably not going to...
Read more »

1 Answer | Asked in Family Law, Tax Law and Child Support for Washington on
Q: I need some advice in regards to the IRS form 8332 and the verbiage.

On my husbands child support documents it states that in order for him to be able to claim his daughter (with his ex-wife) on his taxes “as long as he is current on his child support obligation. Current shall be defined as making all the monthly current support payments and making all the monthly... Read more »

Linda Simmons Campbell
Linda Simmons Campbell answered on Jan 27, 2020

Without seeing the document I tend to agree with your interpretation, however, there may be something else within the document that could change my answer. That being said, your husband should call the attorney that handled his divorce to double check. If they are unavailable, he should call the... Read more »

1 Answer | Asked in Employment Law, Tax Law, Workers' Compensation and Business Law for Washington on
Q: Can I sue for getting paid under the table?
Tim Akpinar
Tim Akpinar answered on Oct 5, 2019

It would depend on what the basis of the lawsuit was, but an attorney in each of the categories you list could probably advise you on the downside of working off the books. Maybe one of the most pressing issues is workers' comp coverage for an on-the-job injury. Good luck

Tim Akpinar

1 Answer | Asked in Tax Law for Washington on
Q: A property owned free and clear and is not being used for commercial activity, is not taxable. In other words your home

In order for an avalone Tax to occur you must have situs. Private homes are not taxable. You cannot tax a right. We have the right to property.

D. Mathew Blackburn
D. Mathew Blackburn answered on Jun 27, 2019

Your premise that private homes are not taxable is false.

What is an avalone tax?

Also, you didn't actually ask a question.

Also, also, if you're trying to avoid a tax by arguing definitions and rights you're going to have a bad time.

I would suggest...
Read more »

1 Answer | Asked in Real Estate Law and Tax Law for Washington on
Q: My brother and I own rental houses jointly in our home states, Washington and California. We've decided to split up.

I'll take the houses in my state and he'll take the one in his. I'll pay him the difference to equalize the values. Can we just sign quit claim deeds and are there any tax consequences? The houses have all been appraised and we agree on these terms.

Bruce Alexander Minnick
Bruce Alexander Minnick answered on Jun 7, 2019

If either of you enters into this planned transaction without benefit any lawyer's advice, IMPO one or both of you will probably not like the result.

1 Answer | Asked in Employment Law and Tax Law for Washington on
Q: Is it normal for your total amount on withholdings on your w2 not match your total amount on your last pay check

Should your w2 info match info on your last pay stub

Bruce Alexander Minnick
Bruce Alexander Minnick answered on Apr 8, 2019

Many companies use two separate programs when creating paychecks and W-2 forms; and this is especially true in companies that use third party payroll companies and third party CPAs to prepare 1099s and W-2s. In most cases the difference is too tiny to be concerned about. When choosing which one to... Read more »

1 Answer | Asked in Tax Law for Washington on
Q: Can my current wife and I gift my townhome to my son and his mother, my first wife without paying a gift tax?
Chad Silver
Chad Silver answered on Nov 16, 2018

This depends on how much the value of the townhome is. There are tax free gifts available but it depends on the amount to be gifted. Please give my office a call so we can discuss the proper gift tax returns and amounts you can gift tax free. Call Silver Tax Group at 855-900-1040

Best,

Chad

1 Answer | Asked in Tax Law for Washington on
Q: I quit my NC Job & moved to WA late 2017; got a bonus from NC job in 2018. No work/resident in NC 2018. NC Tax on bonus?

I left my Raleigh NC job at the very end of 2017. In 2018 I didn't work any hours for my NC job nor was I a resident. I moved to WA state where there is no state income tax and I work at a full time job in Richland WA. If I didn't live in NC or work in NC....and a NC company sent me a... Read more »

Eric Steven Day
Eric Steven Day answered on Jul 17, 2018

The bonus that you received was in relation to work that was performed in NC, therefore, NC can tax you in relation to that income. If the income was produced or "earned" in that state's jurisdiction, that state has the right to tax that income. The other way that a state would be... Read more »

1 Answer | Asked in Tax Law for Washington on
Q: Taxation on transfer of crypto currency across country border

I am resident of US for tax purpose (have job in US). I have transferred money from My foreign account to US account. I have used this money to buy crypto currency and sold this crypto currency in INR with profit. The money from sale got transferred to my Indian account. I transferred this money to... Read more »

Michelle D. Wynn
Michelle D. Wynn answered on Jan 26, 2018

When you are a US resident for tax purposes, all of your worldwide income is taxed in the US, regardless of where the proceeds are deposited. This means that, in addition to being taxed on your virtual currency transactions, you would also be subject to tax on the earnings in any Indian bank... Read more »

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... Read 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... Read 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... Read 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... Read 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... Read 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... Read more »

1 Answer | Asked in Criminal Law, Tax Law, Business Law and Divorce for Washington on
Q: Divorcing my spouse & we started a construction company about 25 years ago, suspect corp embezzlement by him & officers

My soon to be ex and his business partners have dissipated our business in violation of court orders, taken out and spent all the money ($300K in meals and entertainment in 2 years), casinos, trips, his secretary/girlfriend fixing her car buying her clothes, trips etc. The business is now out of... Read more »

Michelle D. Wynn
Michelle D. Wynn answered on May 3, 2017

You are likely going to need a business attorney in your area to represent you in any dealings with these creditors who are hounding you. The business attorney should be able to advise you on any potential exposure to creditors claims and defend you if any creditors attempt to collect against you... Read more »

1 Answer | Asked in Tax Law for Washington on
Q: I am a caregiver for adult disabled child. I am paid by the state. I normally receive a 1099 and file that as

Nontaxable income but this year i received a w2. Do i file the same way or do i owe income tax on this?

Matthew M Montoya
Matthew M Montoya answered on Feb 8, 2017

The most important question is why believe the 1099 income was not taxable. IRS publication 525 specifically lists the kinds of income that are not taxable. https://www.irs.gov/pub/irs-pdf/p525.pdf You may be able to get a caregiver tax credit if you are a family member or "qualifying... Read more »

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