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FAQs About Tax Answered by Tax Experts

Frequently Asked Questions About Tax (Photo: Patriot Software)

Frequently Asked Questions About Tax (Photo: Business Insider)

Do Social Security disability payments have to be taxed?

Eric Bronnenkant, CFP, CPA, and tax expert, said that Social Security benefits, including disability payments, may be 0% taxable, or up to 85% taxable, depending on the level of combined income.

Can you still take the charitable deduction if you take the standard deduction?

Tax experts said the charitable contribution deduction for non-itemizers expired and was not extended in 2022. People ages 70.5 or older could donate up to $100,000 per year from their IRA as a QCD (qualified charitable distribution) tax-free. This is true whether the taxpayer takes the standard deduction or itemizes.

Can my wife file separately even though we share an address?

Married filing separately while living at the same address is permissible. With a few exceptions, filing separately frequently results in a higher combined tax liability, as mentioned by tax experts.

READ ALSO: 6 Common Tax Mistakes People Do When Filing

Frequently Asked Questions About Tax (Photo: Immigrant Invest)

Is it necessary to pay quarterly estimated taxes if my only source of income is my pension?

According to the IRS, you must pay the lesser of 90% of your current year’s tax or 100% of your prior year’s tax — 110% if your AGI was greater than $150,000 in the previous year — through withholding and/or estimated tax payments. If the pension withholding does not meet these safe harbor requirements, estimated tax payments may be required to avoid underpayment penalties.

Do I have to pay taxes on a Christmas gift worth over $15,000?

Gifts are exempt from income tax. However, if the gift was used to buy a bond with taxable interest, the interest received is taxable income.

I am a former Air Force officer. Is paying taxes on my military retirement pay necessary, and VA would pay?

According to tax experts, military pensions are considered taxable income. However, the portion of the pension for a service-connected disability would be tax-free.

I am over the age of 80. What income do I have to pay taxes on?

Lisa Greene-Lewis, one of the tax experts, said you could receive Social Security benefits. Typically, Social Security income is not taxable on its own, but if you have other sources of income, such as retirement income reported on Form 1099-R, anywhere from 50% to 85% of a portion of your Social Security may be taxable.

Do I have to report the money I get back from a credit card to the IRS?

Tax experts explained that if the money you get back is a rebate based on your credit card spending, it would not be taxable.

READ ALSO: Common Questions Ask for Tax Rebates – Here’s How To Get Ready For Your 2023 Tax Refund!

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