Life Transitions (Taxed)

Life involves change and government is there to tax you from Social Security on your first summer job to bank interest earned while you lie awaiting death. This all raises compliance issues on your individual and trust tax returns.

The “Kiddie Tax”

  • Sometimes, your children will be taxed at your marginal rates; calculations are needed.

Tax for College

  • What are the best credits to take while paying for education and when should your child claim their personal exemption? Sometimes amended returns are needed.

A Tax on Marriage?

  • Yes, frequently there is a small marriage penalty. Married couples must choose filing status and occasionally calculations surprise all. We can also help the spouse who was shocked by her husband’s secret business.

Certainly Tax on Divorce

  • Divorce in a community property state like California frequently subjects spouses to income splitting requirements involving multiple calculations. I expand on this more here.

Business Loss, Bankruptcy, and Foreclosure:

  • Planning for these contingencies belongs elsewhere; the preparer must simply deal with sales of homes, cancellation of debt (COD) income and net operating losses (NOL) as they arise. I reference this in greater detail in this article.

Disability Tax

  • When is disability income taxable? I’ll check for you.

Death Tax

  • California has no estate tax and most taxpayers won’t have estates large enough to generate federal estate taxes, though many will file gift tax returns along the way. Generally we work with trustees or executors of estates are here to file the final 1040s and frequent 1041 tax returns required. We endeavor to respect all parties concerned as neutrals who keep information secure. I have personally experienced the widow process, which I detail more here.

“This is too difficult for a mathematician. It takes a philosopher.” — Albert Einstein on his tax returns