The Tax Questions Blog

Archive for March, 2010

Question: Living Trust Money and Taxable Income?

My father recently passed away. He had a living trust (not a will). Left his estate/money to my mother who wants to disburse it now to surviving children.

In California, how much of this (living trust) money can we receive before we get taxed on it? In other words, could we receive, say, $20,000 and not be taxed?

Answer: These gifts to you will not be income taxable. Your mother will need to file a gift tax return on Form 709 if she gives you more than 12,000 per year each. But no gift tax will be due on the first 1 million so she can give that much without her paying - but she would have to file to prove it.

'The poster-child for tax law complexity'

Dear Action Line: Please explain the federal income tax option 'alternative minimum tax.' — in 250 words or less. No Greek, please. — W.M., Tulsa.

Tax-free child support payments - taxing children #3

Question: received a 1099r for a life & accidental death distribution on my deceased son. is this taxable income?

the distriubtion code on the 1099r says 4. i know life insurance payouts to beneficiaries are nontaxable so i'm wondering why i received a 1099r.

Answer: Box 1 of the 1099-R shows the gross distribution. Box 2a of the 1099-R shows the taxable amount. In your case, Box 2a should be either blank or zero to show there is no taxable income.

The codes in Box 7 identify the distribution you received. Code 4 in Box 7 means Death.

Exceptions To The 60-Day Retirement Account Rollover Rule

An individual who receives a distribution of assets from a retirement account can avoid applicable taxes and penalties on the amount if he or she rolls it over to an eligible retirement account within 60 days of receipt. There are, however, a few exceptions to this rule.

Question: I solved National Health Care? Why wouldn't this work?

U.S. Government Health Insurance Company: covers ALL Americans on a "sliding-scale": low-income pays no premiums or co-pays, middle-class would pay discounted premiums/co-pays. Coverage under plan is optional, you may buy private insurance if you so choose. All doctors/hospitals MUST accept National Plan patients. Sign-up for coverage at any hospital or Dr. office. Premiums deducted from paychecks and income deducted is tax-free. Private insurance benefits will be taxable to help subsidize plan, but may be able to operate at profit on its own.

Answer: Well then with your sliding scale, why don't low income families pay less for groceries, same housing, vacations, cars, etc. I'm so tired of being taxed to pay for others! I understand that there are some circumstances that make it hard/impossible for SOME to pay but really, most just choose NOT to work. My husband and I both worked our butts off through college, painting houses, clerks at gas stations, you name it, got degrees and jobs. People need to start taking some responsibility for themselves.

Brazil Insurance Report Q2 2010 - New Market Report Published

This report differs from its predecessors in several respects.

Alex Jones Tv {Sunday Edition} 3/8:Pelosi "Buy a $15,000 Policy or Go to Jail"