Is this money taxable income?
elmer_...@alvarezincometax.com
To: all forum members,
I need your help. A customer's illegal Alien brother who was in jail in CA; sue the city of Los Angeles and got around $80,000 dollars for X reasons. my question, does she have to pay taxes on that money? She says that the city neglected all requests to put her brother in a different jail because he was in danger.
Second Case:
Customer has a mother in a retirement home. she gets about $65,000 a year in retirement accounts, and it is not enough to cover the retirement home fees.
Custome asked me. If he brings his mother home and looks after the mother. Can he claim a deduction in his taxes for her. My response was that I doubted it because she makes enough a year, was I right or not?
I would appreciate feedback on both cases.
Sincerely,
Elmer Alvarez, BA, CRTP
Alvarez Income Tax Svc.
Lee Reams
Elmer,
Answer Question #1: Damages are only excludable if cases of physical injury, physical illness, or wrongful incarceration. You didn’t include the stated reason for the judgement or settlement.
Answer Question #2: He would generally have to claim her as a dependent to get any tax benefit. For a single individual to claim head of household, the taxpayer must be a U.S. citizen or resident AND must either:
(a) A relative for whom the taxpayer may claim a dependency exemption, OR
(b) Pay more than half the cost of maintaining a separate household that was the main home for a dependent parent for the entire year.
Lee
--
You are subscribed to the ClientWhysConnect group.
Post Address: clientwh...@googlegroups.com
Unsubscribe Address: clientwhysconn...@googlegroups.com
For more options, visit this group at
http://groups.google.com/group/clientwhysconnect?hl=en?hl=en
Disclaimer --- You use the information shared on ClientWhysConnect.com at your own risk. The information is based upon unsubstantiated member opinions and if you have concerns about the validity of the information you should research the issue thoroughly yourself and arrive at your own conclusions. We will never share any of the information you’ve provided to the ClientWhysConnect.com list with anyone.
---
You received this message because you are subscribed to the Google Groups "ClientWhysConnect" group.
To unsubscribe from this group and stop receiving emails from it, send an email to clientwhysconn...@googlegroups.com.
To view this discussion on the web visit https://groups.google.com/d/msgid/clientwhysconnect/1714686476.236616229%40mail.clientwhys.com.
 |
| ||||||||||||
| |||||||||||||
PHILIP P STORRER
<PastedGraphic-2.tiff>
Lee Reams Sr., BSME, EA Chief Content Officer CountingWorks Pro | CountingWorks | TaxBuzz | TaxCPE p: 1.800.442.2477 x240 w: www.countingworkspro.com/ e: lee....@countingworks.com 
See how CountingWorks can grow your practice.
--
You are subscribed to the ClientWhysConnect group.
Post Address: clientwh...@googlegroups.com
Unsubscribe Address: clientwhysconn...@googlegroups.com
For more options, visit this group at
http://groups.google.com/group/clientwhysconnect?hl=en?hl=en
Disclaimer --- You use the information shared on ClientWhysConnect.com at your own risk. The information is based upon unsubstantiated member opinions and if you have concerns about the validity of the information you should research the issue thoroughly yourself and arrive at your own conclusions. We will never share any of the information you’ve provided to the ClientWhysConnect.com list with anyone.
---
You received this message because you are subscribed to the Google Groups "ClientWhysConnect" group.
To unsubscribe from this group and stop receiving emails from it, send an email to clientwhysconn...@googlegroups.com.
To view this discussion on the web visit https://groups.google.com/d/msgid/clientwhysconnect/2AD65289-65C5-41CE-B4A9-7B03A39C6870%40clientwhys.com.