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John P Fazzio III
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John Fazzio’s Answers

1,040 total


  • First time filling Annual Federal Tax Return

    Hi I live in Irvining Taxes. I am working as a consultant with a firm based in Wasington marryland. This is my offshore job. I work online with them. My annual salary is $26000.My weekly salary is $500.I am paid by my employer every 15 days and ...

    John’s Answer

    Yes, yes and yes.

    You are an employee. Thus, you need to pay Texas taxes as this is where you do the work. And you can file your tax return online using TurboTax or the like.

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  • Do I need to provide insurance documentation for tax purposes when my family is traveling abroad?

    I'm asking about health insurance tax penalty. My wife and son are traveling abroad and will be back to the US in March. Are they required to show health insurance from the country they are visiting? FWIW, I'm not a permanent resident but this yea...

    John’s Answer

    Under ACA they will need to provide insurance to avoid the penalty. I don't think the law makes provision for what nation the policy originates from. If you are filing as a resident alien, I am not sure whether ACA applies to you, and you should call your insurance provider.

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  • What are the tax implications of not authorizing shares in our Certificate of Formation? When will must begin doing this?

    My company is registered in Delaware. We used an online service, Incorporate, to register as an LLC. When we registered our company we did not authorize any shares in our Certificate of Formation. The company has not begun earning revenue, we hope...

    John’s Answer

    • Selected as best answer

    In Delaware, you have to pay for authorizing shares or membership interests. It can be done later. But, this only matters, for tax purposes, if you are gong to be raising revenue by selling membership interests.

    Other than that, an LLC is a pass through and income will be reflected on your personal tax return, or if you have a partner, it will be treated as a partnership, with interests recognized on both owners tax returns via issuance of K-1s.

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  • Can my mother in law put down my daughters name on her tax return to get money?

    My mother in law wants to put my daughters name on her tax return to get some money. I don't agree with that and she wont force the issue but I want to know some information, incase I need to argue it out with her. Only a dependant would be named ...

    John’s Answer

    If your daughter lives with you more than half the year and you provide more than 50% of the income for her care, your mother in law cannot claim them.

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  • Which type of LLC is correct for my healthcare consulting business and what are the tax implications?

    I'm a licensed pharmacist in MD and I am looking to start an LLC. I am trying to determine which business designation is the correct for my services. The LLC will be focused on healthcare consulting. The consulting will take on a number of forms....

    John’s Answer

    Find a local business attorney to set this up for you. You do not need a professional LLC to my knowledge, but either way, the filing requirements are the same. Forming an LLC is an easy proposition and shouldn't take long.

    The tax implications are not great. The income/loss flows to your 1040, so long as it is a single-member LLC. If you have another member, it is treated as a partnership and K-1s must be issued. If you have losses in the initial years, it may increase your refund, but after a few years returns will be scrutinized if you are not showing a profit.

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  • How do I know if I need to bill sales tax for my consulting work?

    I am a new independent business consultant ready to bill a client for my first hours of work. I registered a sole owner business license with WA state and am planning to bill under that license. The work I did for this client (and planning for oth...

    John’s Answer

    I would defer to Mr. Gates's summary of the application of the State's Gross Receipts tax. It would seem that you pay these taxes quarterly and not on a per client basis, as with sales tax. You will want to investigate the tax you will likely owe at year's end with a local tax professional and determine how much you should raise your prices to make allowance for payment of the tax, and what portion of your gross receipts you should set aside for that purpose.

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  • How should the taxes be paid if I publish the app in this fashion and it generates income?

    Hello, I am an iOS app developer and have a new app that Apple will pay me to put ads on. The problem is that the Apple Developer Account name is not my name (if you want to know why I can tell you, but it's not important to the question). Ther...

    John’s Answer

    You will pay tax on the income. Apple has no discretion in how they issue the 1099s.

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  • Can they take my tax return ? How much ?

    I currently have a wage garnishment i need to know if this agency can take my tax return

    John’s Answer

    You cannot get good advice if you don't put the appropriate detail in your question.

    The tax offset program let's federal agencies and other federally chartered garnishees take any tax refund you may have.

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  • Should I win, do I pay taxes to California?

    I live in Nevada and purchased a lottery ticket in California.

    John’s Answer

    Yes. Pay your taxes. You should always anticipate that you will be paying some tax anytime you have income.

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  • 4. Are newly-formed LLCs in the states of NY and CT tax exempt for the first 3 years?

    My wife and I work in New York state, but are residents of Connecticut (pay tax in CT). We want to open an LLC, (consulting firm - only service provided, no physical goods moved, and no physical office required). Will have only two of us as employ...

    John’s Answer

    Right. You are better off forming in Connecticut because incorporation costs are lower. You can form an LLC and then report on Form 1065 and issue K1s to the inclusions on your joint 1040. Any tax lawyer can help you with the formation or you can do it yourself online. The tax reporting and accounting will be basic, but you want to get payroll through Paychex or ADP, but Zenefits and Xero are gaining in popularity. You can put down any address you want regardless of which jurisdiction you incorporate in. Moving jurisdictions or using Delaware is also not difficult, but a foreign registration is generally easiest. Hope that helps.

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