Tax Chat: 7 On Your Side, experts answer viewer questions about filing deadlines and more

SAN FRANCISCO (KGO) -- The clock is ticking to file your taxes, and if you have some last-minute questions, 7 On Your Side may have some last-minute answers.

On Wednesday, 7 On Your Side and a team of tax experts are waiting to answer your questions about changes to the tax law, new deductions, deadlines, and much more.

Scroll down to see if they were able to answer the question you had.

MORE: Is there really no tax on tips, overtime, and Social Security? Here's what to know

Viewer name: Lisa
Viewer question: My sister & I co-own rental property and expenses are paid from a shared account. Do I calculate her estimated taxes based on a 10% MFJ tax bracket for $15k rental income or use her total income 37% tax bracket?
Volunteer name / organization: Norman M. Golden, EA California Society of Enrolled Agents
Answer: Her total income tax, which you state is the 37% tax bracket.

Viewer name: Robert
Viewer question: If I am selling things ive bought and collected for 60 years - do I have to pay taxes on the income?
Volunteer name / organization: Phil Fiegler; East Bay Assoc. Of Enrolled Agents
Answer: Unfortunately, yes. You will have to declare a sale which is a long-term capital gain. You will need to know what you paid for them (the "basis"). Sales of collectibles are taxed at 28% and you will have to declare that they are collectibles. You will list them on Form 8949 as sales not on a 1099-B.

Viewer name: Steven
Viewer question: I help pay for one of my parents' nursing care costs. Is this expense deductible? They are not dependents. What are the pros and cons of adding elder parents as dependents for tax purposes?
Volunteer name / organization: Norman M. Golden, EA California Society of Enrolled Agents
Answer: Unfortunately, you cannot. You must be able to claim them as dependents. If you are able to claim them as dependents, there isn't a downside tax wise. The pros are you will be able to claim the medical expenses you paid.

Viewer name: Steven
Viewer question: I bought a new Tesla vehicle with the $7,500 federal tax credit incorporated into the purchase price. Are there any tax forms I need to fill out? The tax credit was already accounted for.
Volunteer name / organization: Norman M. Golden, EA California Society of Enrolled Agents
Answer: When you state that the tax credit has already been accounted for, the answer is no, there isn't a form you need to attach to your tax return.

Viewer name: Shirley
Viewer question: I sued my landlord because I alleged negligence. They settled to avoid court but denied wrongdoing or responsibility. Can I claim this settlement as tax exempt?
Volunteer name / organization: Chris Housh, Esq. EA. Golden Gate Society of Enrolled Agents
Answer: The language in the settlement agreement will be the determining factor for what is taxable. The amounts that are to pay for your physical health and damages are not taxable, but payment for emotional distress, punitive damages and other expenses are taxable. If the settlement agreement does not state how much of the funds are for the damages versus other items, you can point towards the receipts related to the medical expenses as being exempt (but then you are at the discretion of the auditor).

Viewer name: Elle
Viewer question: The tax program I used did not generate the option for schedule R credit for seniors and disabled even though I qualify. I owed no taxes, using the standard deductions and credits. Are there any ramifications/issues for not applying the schedule R credit? Do I need to make an amendment to my taxes? Thank you.
Volunteer name / organization: Phuc Ly, Enrolled Agent - President of Level Up Quest
Answer: Since you state that you owed no taxes after applying the standard deduction and credits, the Schedule R credit would not have provided you with a refund or further reduced your tax liability, because it is a nonrefundable credit, it can only reduce your tax to zero, not below zero or generate a refund by itself .

Viewer name: Peter
Viewer question: My mother passed in 2025. She had been suffering memory loss and was living in an adult home. I am the trustee of her trust. When cleaning out her room, I located a check from the Franchise Tax Board for her 2022 tax refund for $294.00, dated 2023. I contacted the state Returned Warrant Desk and followed the directions given to me in several phone calls. I have sent in all of the documentation requested. I was told that the reason I had not been refunded is that I had not sent in the proper form 1131, Replacement Warrant Claim. I faxed the form to her. They confirmed she had received the form in a subsequent phone call, and assured me the request has been sent up the chain. I also sent letters and all required documents to the Director of the Franchise Tax Board, and to the California State Controller. I have been totally ignored by all parties and have received no communication. I do not have the original check as I was told I was required to send the original to the Returned Warrant Desk, and I did so. I have copies of the check and all other documentation. I don't know if you can help in this case.
Volunteer name / organization: Phil Fiegler; East Bay Assoc. Of Enrolled Agents
Answer: FTB tends to be very slow on these types of cases. It may be difficult to get some traction as the amount is small and it relates to a decedent's account. The only thing I can suggest at this time is to reach out to the FTB Taxpayer Advocate's office. Here is a link to a page with their contact info. There are multiple methods of contact available including an online form:
https://www.ftb.ca.gov/help/disagree-or-resolve-an-issue/taxpayer-advocate-services.html

Viewer name: Carmen
Viewer question: I received my W2's for all 6 companies I worked for last year. I one of them I worked more than half of my income in overtime. My accountant noticed that the OT Premium (the additional compensation above the regular, straight-time rate) that I am entitled to was not in one of my W2. My accountant said that this needs to be rectified by ADP before you can rightfully claim tax benefits for that OT. He asked me to talk to my boss and ask him to call ADP to get the W2 corrected. My boss called ADP while I was infant of him. ADP said they can not do its for this year. I am wondering if that is illegal? I understand that this is something that it require for them to invest time but, I am pretty sure that I am not the only employee that worked overtime last year. What can I do about it? I earned $21,000 in overtime only on that job. Is there a way to put pressure on them?. I am sure ADP nationwide has a lot of clients who pay a lot in overtime. I am sure I am not the only one who's W2 need to be corrected. I would appreciate any help you can provide.
Volunteer name / organization: Patty Pringle, East Bay Association of Enrolled Agents
Answer: For the employer is not required to include the overtime on their W-2 beginning in 2026 the employer will be required to report on the W-2. Keep in mind that the CA overtime rules are different than the federal FLSA rules. You can go back through your paystubs and calculate your federal overtime.

Viewer name: Lani
Viewer question: We were issued a state tax refund check for the 2024 tax year for my husbands business. We both retired in 2024 and dissolved the business. We were unable to deposit the check since it was made out to the business name. We contacted FTBS and were instructed to return the check with a detailed letter and who to re-issue check to for the refund. We did as instructed and the check was delivered. No signature since it was delivered to a PO Box as instructed. As of today and 4 phone calls to them we still have no re-issued refund check 10 months later! FTBS keeps telling us that they have no record of check returned and open case is still being researched. They state they cannot cancel the original check even though they say its is still uncashed. We were recently contacted by another agency who says we have unclaimed funds from a state agency, so obviously it is still out there uncashed. We are at our wits end with no solution in sight. Please any assistance would be greatly appreciated.
Volunteer name / organization: Chris Housh, EA, Esq.; Golden Gate Society of Enrolled Agent
Answer: Start with following up with state unclaimed funds agency to see if they can have the check returned to you, or reissued to the state. The sales tax agency should be able to see that you dissolved your company and that you are the responsible officer. You can request a Taxpayer Advocate work with you on getting the taxing agency to reissue the check in your name.

Viewer name: Cynthia
Viewer question: Husband born in 1932 and receives monthly pension. In 2023 pension shown as code 7. This year code is 7a which I believe is for lump sum distribution which he did not receive. Pension fund refuses to change code saying it's correct because he was born before 1936. Where to show this income on tax return?
Volunteer name / organization: Lourdes Rabara Enrolled Agent for the East Bay Association of Enrolled Agent
Answer: You should report the income under pension and use code 7.

Viewer name: Gina
Viewer question: I didn't know my overtime amount. Submitted my return without. So I calculated my pay stubs for overtime and we find out each week whether we have overtime or not. Will it be beneficial for me to amend my taxes?
Volunteer name / organization: Phuc Ly, Enrolled Agent with Level Up Quest
Answer: Yes, go through your paystub to look for overtime paid. Most likely your overtime paid was already shown as W2 income but you need to file for a deduction against it. Keep in mind you will phase out of this if income is over $150k for single filing or $300k for MFJ filing. If your pay stub separately shows the overtime premium, use that amount.

Viewer name: Debbie
Viewer question: My father-in-law died in 2023. We subsequently found out he had a bit of cash sitting around. His traditional IRA was liquidated & split between the two brothers, but the bank has not bothered to send the correct paperwork (1099?) to probate attorney so we can get a K-1. Can we file without it if we know the exact amount, or should we file for an extension to be safe?
Volunteer name / organization: Phil Fiegler; East Bay Assoc. Of Enrolled Agents
Answer: That depends. If the IRA had the brother as beneficiaries, and they liquidated it, each of them should have received a Form 1099-R. If the trust or estate was the beneficiary and the IRA was distributed to it, the 1099-R should go to the estate or trust. These 1099s should have been issued in January of the year following the liquidation. A K-1 would only be received from the estate or trust tax return, which would need to be filed if it received the IRA or had other income. That would be on a 1041 and not a 1040. I cannot comment on the cash as I do not know the source.

Viewer name: Mel
Viewer question: I paid back $30,000 to Social Security for overpayments. When I initially received these payments, I of course paid income taxes on them each year. How do I recoup the income taxes I have already paid each year?
Volunteer name / organization: Larry Pon/CalCPA
Answer: This will be reflected on your Form SSA-1099. There will be a reduction of your Social Security benefit for any repayments your made.

Viewer name: Roxann
Viewer question: Can I get federal tax credit in 2026 for heat pump water heater? Some credits expire but some are available. I need to replace my water heater in April 2026 and heat pump water heaters are expensive.
Volunteer name / organization:
Answer: No, you cannot claim a federal tax credit in 2026 for installing a heat pump water heater. The federal Energy Efficient Home Improvement Credit under Internal Revenue Code section 25C, which covers heat pump water heaters, will not be available for property placed in service after December 31, 2025.

Viewer name: Sally
Viewer question: Son is incarcerated please don't say that on TV along with my name He has three months of expenses before he went to jail. Business tax exemption more than the 1099 of 1745. Should I file his taxes for 2025. Close the business down while he incarcerated. We filed every other year in business. Won't the IRS think it's funny that he didn't file for 2025.? Thank you
Volunteer name / organization: Norman M. Golden, EA California Society of Enrolled Agents
Answer: A Schedule C taxpayer has a filing requirement if he has net earnings of $400 or more. If he has more expenses than revenue, he doesn't have to file. If a taxpayer doesn't have a filing requirement and doesn't file, the IRS will not take action.

Viewer name: B B.
Viewer question: I sold a guitar I owned for 6 years, for $2000, but I paid $3000 6 yrs ago. It was just a personal use item. I understand E-Bay may have the same issues. Reverb sent me the 1099 form for income, but I am not a small business, even though they require you to pick a shop name to list gear. How do I deal with treating this reported income as a profit or a loss as an individual. Someone suggested just list the original price as the selling price no loss or gain, and be done.
Volunteer name / organization: Lourdes Rabara from the East Bay Association of Enrolled Agent
Answer: What kind of 1099 did you get? 1099 Misc? If yes, then enter the amount on other income and add another line with the minus sign for the same amount of the income and write incorrectly reported income.

Viewer name: Kristi
Viewer question: IRS says my taxes are filed every year including my son and I have not filed. They won't help me since 2017. I didn't make enough to file as a full time student. Can I get the back owed taxes someone else is getting?
Volunteer name / organization: Chris Housh, Esq., EA; Golden Gate Society of Enrolled Agents
Answer: If your identity has been stolen, you need to fill out IRS Form 14039 and FTB Form 3552. You will need to provide them with the information that you have about the stolen identity situation. You would be able to get back the withheld taxes that were from your income for only the last three years. The government will also issue you new PINs to identify you for future tax returns, and stop the person filing the false returns.

Viewer name: James
Viewer question: we scheduled a full federal tax automatic payment for April 14th, but we want to pay it sooner. Is it possible to change or cancel the scheduled automatic payment date (we used turbo tax) ? If so how?
Volunteer name / organization: Larry Pon/CalCPA
Answer: Yes, but it take a bit of effort. Call the IRS at 1-800-829-1040. It may be easier to go to a local IRS office, you may need to make an appointment, but this may take some time, so block off time for this.

Viewer name: Lynn
Viewer question: Can I write off my new car purchase of I bought it on Dec 30 2025? I paid cash and am a 1099 employee (consultant)
Volunteer name / organization: Larry Pon/CalCPA
Answer: You can claim your auto expenses based upon your business usage of your vehicle. You need to keep track of your business mileage. You can deduct your auto expenses either based on the Auto Allowance method or the actual expenses, but only the business portion.

Viewer name: M. Consuelo
Viewer question: We are doing our taxes in the most complicated question is, are Admin Fee, we pay taxes on it. It is taxable or not, or is it just an Admin? Fee, I called my boss or my supervisor and he said it's a gratuity, but it says Admin. Do I claim it on my taxes, or will I get a refund on the taxes already paid on earned income?
Volunteer name / organization: Lourdes Rabara, East Bay Association of Enrolled Agent
Answer: Where you issued a 1099Misc? If yes, regardless of the description you will have to include as income and pay tax on it. It is possible that you will not have to pay self employment taxes.

Viewer name: Mona
Viewer question: I haven't received my SSI form for 2025 and can not get into my social security account online. What can I do to get my information?
Volunteer name / organization: Larry Pon/CalCPA
Answer: You can call the SSA at 1-800-772-1213 or go to your local SSA office.

Viewer name: Ellie
Viewer question: What are the rules on itemizing on the federal level and on the CA forms?
Volunteer name / organization: Norman M. Golden, EA California Society of Enrolled Agents
Answer: A taxpayer is entitled to take the greater deduction of Itemized Deductions vs the Standard Deduction. The only time a taxpayer has to itemize is when he or she is married and filing a separate return from their spouse. In that case, if one spouse itemized deductions, the other spouse must itemize.

Viewer name: Randy
Viewer question: When you make a required RMD the following first quarter of the next year of turning 73 yrs - where and how do you notify the IRS on the 1040 (or associated forms) to differentiate it from the "regular" RMD taken for that year? ... and if you know - how does it get reported in TurboTax?
Volunteer name / organization: Phuc Ly, EA - Level Up Quest
Answer: No need to separate it.

Viewer name: Debbie
Viewer question: I know we were supposed to be issued a K-1, but we were not, can I file without getting it or should we file an extension? This is re father-in-laws death in 2023.
Volunteer name / organization: Phuc Ly, Enrolled Agent - Level Up Quest
Answer: You should file an extension and wait for the K1. Filing it now then trying to report the K1 later will require you to file an amended return. Not worth the trouble to file an amended return - better to file an extension.

Viewer name: Martha
Viewer question: I'm retired do I need to file?
Volunteer name / organization: Norman M. Golden, EA California Society of Enrolled Agents
Answer: At your income level, you do not have to file a tax return, however, at your option, you may want to file to get a refund of the $88 in withholding. For 2026 and all subsequent years, I would contact the trustee of your pension and tell them that you don't want anything withheld. There is no requirement to have withholding.

Viewer name: Stacey
Viewer question: Still waiting on our tax refund from last year. Have spoken to many people at IRS and they say they are still working on it. They sent us paper work to fill out which we have done and sent back in but still no refund. Help don't know what to do next.
Volunteer name / organization: Phil Fiegler; East Bay Assoc. Of Enrolled Agents
Answer: They are severely slow on anything which has to do with paper correspondence. If you end up having to re-submit anything to them, be sure to send it by Certified Mail with Return Receipt Requested. This way you have a record of them receiving it and can prove you sent it. Other than calling them up at 1-800-829-1040 and being on hold for a long time; there is not a lot you can do. If you happen to have an IRS online account, there may be a possibility that if you log into it, you might be able to find out something as well.

Viewer name: Michael
Viewer question: We currently are on an installment plan with the IRS for previously years taxes. We will need to add to add to the plan to pay 2025 taxes and may get push back from the IRS. How do we negotiate this Can you recommend a good tax attorney with experience negotiating with the IRS? Thank you for your help, Michael
Volunteer name / organization: Phuc Ly, EA - Level Up Quest
Answer: I would recommend Angie Toney to help you with this. She specializes in resolutions with IRS.
https://myoasistax.com/

Viewer name: Peter
Viewer question: My wife and I will fill a joint return this year. She receives a monthly pension from CALSTRS. No withholding is taken from this monthly amount. What percentage of this yearly pension income is NOT subject to tax?
Volunteer name / organization: Gregory Crofton, CFP(R), EA with Adap Tax Financial, Inc & U.C. Berkeley
Answer: The amount of tax you will owe on your pension isn't a flat percentage of your pension income. You would take your total income, deduct the greater of the standard deduction or your itemized deduction, apply other deductions and credits, then you the tax table to calculate the tax. Once you do this you can divide the total tax by your total income to get your effective or average tax rate.

Viewer name: Marita
Viewer question: I started our free e-file last night with OLT. It is asking for 1099-MISC which we did not get from CA franchise tax board, our refund was directly deposited to our bank. Where do i write the refund? State income? It is asking for payer's ID number. Thank you
Volunteer name / organization: Phil Fiegler; East Bay Assoc. Of Enrolled Agents
Answer: I am not sure about OLT or how it works. The form the FTB (Franchise Tax Board) issues for refund is called a 1099-G. If you did not itemize deductions on your 1040 via filing a Schedule A in 2024, your CA refund will not be taxable.

Viewer name: Martin
Viewer question: When I do an IRA to Roth IRA conversion, the amount is taxable as income. Does that amount count towards medi-cal eligibility/ineligibility for a 68 year old person?
Volunteer name / organization: Gregory Crofton CFP(R), EA; Adap Tax Financial, Inc. & U.C. Berkeley
Answer: An IRA to Roth IRA conversion is taxable income. In some cases you may have basis in your IRA contribution so there may or may not generate taxable income. If there is net taxable income, it would likely count toward income for healthcare eligibility.

Viewer name: Art
Viewer question: We received this form for an IRA distribution. We moved funds from one account to a new account. We did not receive cash from this transaction. Just moved funds. Are we required to enter this transaction into our tax return as income even though we received no income from the transaction?
Volunteer name / organization: Gregory Crofton CFP(R), EA; Adap Tax Financial, Inc. & U.C. Berkeley
Answer: If you performed a direct custodian to custodian rollover, the 1099-R issued for the rollover should include a distribution code that reflect the rollover. This is usually code G.

Viewer name: Jackson
Viewer question: A social security recipient tax question. When income is taxable for U.S citizen who lived aboard or did not live aboard for countries like Egypt, etc. in 2025? What will be the right answer?
Volunteer name / organization: Gregory Crofton CFP(R), EA; Adap Tax Financial, Inc. & U.C. Berkeley
Answer: I don't completely understand your question and need more information to answer. I suggest contacting an Enrolled Agent at csea.org. Whether Social Security is taxable depends on what other income you have for the tax year. US person who are citizens or residents owe tax on any income received worldwide whether they live in the US or outside the US.

Take a look at the questions and answers from last year's tax chat here.

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