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Eric P Rothenberg
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Eric Rothenberg’s Answers

350 total


  • State Tax Returns filing for a Massachusetts Student

    Hey folks, I am an international student in Massachusetts and had a question on my state tax filing. I do not have an SSN or ITIN yet, and would be submitting my federal tax forms soon, along with my W7. Do I need an SSN / ITIN to file for State t...

    Eric’s Answer

    If you have US source income, and it sounds like you do, then yes you have to obtain an ITIN and all income reportable to the US is also reportable in MA if you are resudent here. That being said, there are many complex issues raised within your question so please seek experienced legal counsel right away. For ex., how can you get a signing bonus unless you have the right to work here?

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  • On disability income, Should I get a tax id number or use social security number when starting part time business.

    I would like to know if I am on disability income, and I want to start a mail order business, am I better off getting a tax id number or using my social security number when paying taxes. I noticed on the IRS application for a tax id number , the...

    Eric’s Answer

    This is not really a tax question as it's about what you can do while collecting disability income. Those rules are not for a tax lawyer. But even if you apply for an entity federal ID or a proprietorship ID the IRS will need your social security number so it may be a moot question.

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  • Tax question? massachuesetts

    do people with temporary immigration status have to massachusetts health penalty tax for not having health insurence.

    Eric’s Answer

    MA requires health insurance only if you are a "resident". So if you are a non-resident all year then it's not required. It does not have to do with your immigration status. So if you move into MA during the year, you need insurance starting on the first day of the third month following the month you moved in. So if you move in May 14, then you must have the insurance effective August 1. If you are a part-year resident for less than 3 months, in that year you need not have health insurance.

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  • Tax question

    If I claim my brother in law dependent on my return. But he does not have health Insurence do I have to pay health insurance penalty. He did not had any income last year

    Eric’s Answer

    If you take him as a dependent on your income tax return, which means he lived with you more than 1/2 the year and you provided more than 1/2 his support, then yes, you must pay a tax equal to the amount calculated for he not having health insurance. He might owe that to you, but it will be your tax to be paid.

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  • 1099 Sales rep receiving draw as pay. Tax question.

    I work as a 1099 sales rep for a small consulting firm. They give me a "draw" against future commission each month that adds up over time. As I sell products and services and the company receives a commission it is taken out of the amount I have...

    Eric’s Answer

    This is requires you to have a lawyer analyze your agreement with the consulting firm. The issue here is whether, or not, your "draw" is merely a refundable advance or a guaranteed draw. So if the company pays you $120,000 and they have no right of recovery from you of that advance, then it is income to you because it is non-refundable. If, on the other hand, it's really a loan to you and repayable by you if you do not earn commissions or leave the position, then it's not income to you until such later date as the amount is made permanent or is forgiven by the firm. I really suggest you meet with legal counsel because regardless of what the two parties say (you and the payor) the firm is taking a tax position (giving you a Form 1099) that may estop them from claiming it's merely a loan. So it;s best to address this sooner than later.

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  • 401(K) penalty-free withdrawal option for an early-retiree. Current job is getting stressful to stay course.

    I'm aware of the availability of withdrawing money from your current employer's 401(k) penalty free if you leave/retire from the company in the year you turn 55. The question is what is the annual withdrawal limit, if there is any(at 55 and subseq...

    Eric’s Answer

    You need some very serious retirement planning given the facts you related and the choices you have. This planning needs to be done professionally or you could leave a large amount of money on the table. This includes both the 401(K) planning & social security planning. It will also take into your marital status too. Please sit with a professional versed in these questions.

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  • Formed my own business last year as a llc paid no taxes on $50k revenue is that ok ? or should I have paid quarterly

    former exec who struggled to find work and went on my own , formed a llc by a client advise , not sure if I have a tax liability

    Eric’s Answer

    Yes you have a tax liability no matter what choice you made. If you're a1 member LLC you are taxed either on Schedule C, or as C Corporation if you elected corporate status or as an S Corporation if you elected that too. Yes, you should have made estimates unless you had no tax liability the prior year. You certainly need tax advice.

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  • How would capital gains exemption work if new property was bought in 2013 but old property sold in 2014.

    My mother purchased a condo in 2013 but did not sell her old residence until 2014. She is being hit with a huge tax bill. She bought the condo herself but her former residence was a jointly owned multi-family house where she was a partial owner an...

    Eric’s Answer

    You will definitely need good tax preparation help. We haven't had residence "roll-overs" in a long time. With a mixed use property we treat them as separate properties. Careful planning could have avoided more of the gains.

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  • What is the proper tax form for a Delaware LLC registered as foreign in MA?

    Last year Schedule A shows it listed as a partnership. I am filing extension and need the tax return form number that will be used

    Eric’s Answer

    A Massachusetts business that was incorporated in another state (such as Delaware) must register in MA at the Secretary of State as a foreign LLC (doing business in MA). If there is more than one member in the LLC, then it's taxed as a partner ship in MA and that files Form 3. If, on the other hand, there is only 1 member in the LLC the business can report all income on the individual's personal return (resident [Form 1] or non-resident [Form 1NR])

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  • My sister filed as head of the household when she isn't and claimed me as a dependent, without my permission

    I'm a full time student, so she used that to get more money but I never gave her my permission to do so and she isn't the head of the household, my mother is, she doesn't even live in the same state as us, My mom and I are in MA and she lives in S...

    Eric’s Answer

    Your sister cannot claim you as a dependent if you were not living in her household. A full time student can count the time away at school as living in their "home" but your home isn't with your sister absent more facts. If she claimed you, that doesn't affect you. You are still allowed to claim yourself and if someone else can claim you, your sister will have to prove it to the IRS and the state that you are her dependent. You don't have to prove you are not her dependent.

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