2013 tax thread - questions/answers (1 Viewer)

[shuke]

My only question is do I claim small amounts from class action lawsuits as income if I did not receive a 1099?

Also, can someone confirm that for my IRA's, when shares are sold to cover the management fee, that is not treated as a taxable event, but I cannot claim those fees as tax deductions.

TIA

 

[Plorfu]

PM Shuke. He'll answer everything.

 

[eoMMan]

My only question is do I claim small amounts from class action lawsuits as income if I did not receive a 1099?

Also, can someone confirm that for my IRA's, when shares are sold to cover the management fee, that is not treated as a taxable event, but I cannot claim those fees as tax deductions.

TIA

Depends on what exactly the class action lawsuit is for but in general, you are supposed to. Kind of like when you win $300 at blackjack at the casino....

Correct, if the fees are paid from the IRA, it is not tax deductible. Same goes for tax-free investments. If you pay investment fees and have a mix of tax-free investments along with regular, taxable investments, you are supposed to allocate the fees based on the percentage of taxable income.

 

[Worm]

What do I need to do to be legal with regards to money paid to a babysitter/nanny?

While she was in school her hours were lower and we didn't worry about it. But she's out of school now and working full time between us and another job.

 

[eoMMan]

Pay your share of employer taxes via payroll returns or give her a 1099.

Does she have a company formed and could be considered an independent contractor? Will she, at the very least, be reporting the income on a schedule C?

 

[skycriesmary]

I received, and promptly sold some restricted stock units last year, and am not able to locate the cost basis on my 1099-B. When they were granted to me, the company immediately sold enough of the stock to pay my taxes on them. Would I be safe to have my cost basis the same as the sales price? I know the company sold enough to cover all taxes on them, at a rate of about 45%!

 

[Shatner!]

I refinanced my home. Both the old and new loans were with the same lender. Timing worked out where I "skipped" a payment and the two mortgage statements are missing that payment. I can still claim that interest as it was part of the settlement right? Also they paid one of my half for property tax out of the settlement but not on the mortgage forms. Im drawing a blank. 1098s right.

You'd think everything would be picked up including the settlement on either the new or old loan statement.

 

[Keerock]

Official