If I live in Florida for 183 days each year, do I still count as a resident in my state for the purpose of state income tax?

Just because you spend 6 months and a day in Florida out of a year does not make you a resident of that state. So, you can’t just avoid a state income tax by saying you live in Florida.

My Ex says I can only count my kids as dependents every other year, is that true?

It depends on the custody agreement and arrangements you made. It must not conflict with the IRS. You must go along with what the Federal tax law says, even if it disagrees with Family court.

What is an exit tax ?

No State has an exit tax, you may be subject to income tax on the sale of your personal residence such as in Pennsylvania, or maybe additional withholding on the sale of your home. But any additional State income taxes will be refunded when you file your return.

My divorce came through at the end of the year. How do I allocate income for the year?

You are Single or Head of Household for the whole year.

If you give birth on December 31, at 11:59 PM. Your beautiful child is your deduction for the whole year also.

My summer rental was destroyed as a result of a storm flooding the house. What are my remedies?

Renting out a summer home is a business loss and not a personal loss. The insurance proceeds you received is not income if you rebuild the property. Any insurance over the original costs can be capitalized with the rebuilding of the new summer house. This is the simple answer – depending on the facts, you should speak to a professional to go over the complications.

I have an internet business that I run through Etsy. What do I report for sales tax?

If you have an online business through the major web sites, they will report and collect the sales taxes and pay it to all the states you sold things to. You may be subject to Income tax in some of those states as a business. The only other sales tax you will owe is the taxes collected directly by you.