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I received a lump-sum distribution when I retired. Is there any special tax treatment on a lump-sum distribution?
You may be able to elect optional methods of figuring the tax on lump-sum distributions you received from a qualified retirement plan. A lump-sum distribution is the distribution or payment, within a single tax year, of an employee's entire balance from all of the employer's qualified pension, profit-sharing, or stock bonus plans. The distribution must have been made under specific conditions.
Should I notify the IRS of my change of address?
If you moved, you need to notify the IRS of your new address. We can change our records so that any tax refunds due you or any other IRS communications will reach you in a timely manner.
I am unable to pay my delinquent taxes. Will the IRS accept an Offer in Compromise?
You may qualify for an Offer in Compromise if you are unable to pay your taxes in full or if you are facing severe or unusual economic hardship.
For an American citizen residing in Canada using Form 1040 or Form 1040A, is the taxable amount of U.S. social security benefits $0.00 due to the Canada-U.S. tax treaty?
Under the 1997 protocol to the Canada - U.S. tax treaty, the Canadian and U.S. governments agreed to return to a residence-based system under which social security benefits are taxable exclusively in the country where the recipient resides. As a result, the entry for taxable social security is $0.00.
I purchased a computer last year to do online day trading part-time from home for additional income. Can I deduct or depreciate the cost of the computer or internet connection from my investment income?
You may deduct investment expenses as miscellaneous itemized deductions on Form 1040, Schedule A , line 22, Itemized Deductions . This would include depreciation on the portion of your computer used for investment purposes, and the portion of your internet access charges used for investment purposes. The acquisition cost of a computer purchased for investment use can be depreciated over a 5-year recovery period.
If you have addition questions, contact a Tax Lawyer near you!
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