For any question related to taxes and not otherwise covered by a more specific tag such as income-tax, sales-tax, etc. Whenever asking about taxes, please also specify a country tag such as united-states, canada, united-kingdom, etc.

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36
votes
4answers
3k views

Recent graduate with new job: Choose Roth 401(k), or traditional 401(k)?

I just graduated, and I'm starting a new job soon. My employer has pretty good policy for matching 401(k) contributions, so I want to invest as much as possible, especially during this first year. My ...
4
votes
1answer
398 views

Wash sale rule + Mutual Funds/ETFs?

According to IRS rules, you can't sell a security, take a capital loss on your taxes, and then buy back the same or a "substantially identical" security within 30 days. However, "substantially ...
2
votes
3answers
6k views

Live in Florida & work remote for a New York company. Do I owe NY state income tax?

I have been down in Florida for the past 3 1/2 years and continue to pay New York state taxes out of the money I earn for a company I work remote for that is in New York. Should I be paying New York ...
1
vote
1answer
718 views

Deduct Health Care Premiums for Family When Employer Only Pays for Me

My employer offers insurance coverage, pays a substantial amount for me, but pays nothing for my spouse or my children. The difference in cost is around $127/month for myself and $1,330/month if I ...
19
votes
3answers
95k views

If I leave my job, what happens to my flexible spending account?

I am about to decide how much money to set aside for my 2013 Flexible Spending Account (FSA). (The max this year is $2500.) But I am wondering what happens if I switch employers during the year. Does ...
7
votes
1answer
615 views

Determining the minimum dividend that should be paid from my S corporation

I am the sole shareholder and only employee of an S corporation. I understand that all profits of the corporation are passed through and taxed as income to me. I also understand that all dividends ...
16
votes
3answers
7k views

How should I handle taxes for Minecraft server donations?

I run a Minecraft server and there is a donation button so players can help support the costs. I pay out of pocket for the rest, it's $125/mo. The money they donate goes right to paypal which is ...
15
votes
2answers
1k views

Estimated Taxes after surge in income

Last year my self-employment income was $300k and I paid about $80k in federal taxes. This year, in the first quarter, all of my business dried up and I had $0 in income. Turbo tax was advising me ...
12
votes
2answers
33k views

How to determine contractor hourly rate and employee salary equivalents?

I am aware of the general differences between being an employee and being an independent contractor. However, I am unable to easily compare the two when it comes to after-tax compensation. Company A:...
30
votes
6answers
4k views

How can I adjust tax withholding so that I don't get a large Tax Refund?

I'm a few years out of college now. I've filled out my W4 accurately and I still get a tax refund every year of a pretty sizable sum. The thing is, I have student loans and I would much rather have ...
12
votes
3answers
1k views

What is the best way to calculate the optimal tax withholding from my paycheck?

My tax refund for this past year (United States) was much higher than I would have liked it to have been. I'm single and have no dependents. My tax refund was about 4% of my salary. Is that normal? ...
8
votes
2answers
54k views

Will I have to pay taxes in India when I transfer money from a US bank to an Indian savings account?

I am currently in US, and would like to transfer some amount from my US Bank account to a savings account based in India on a monthly basis through a third party like Xoom or Transfast. If I'm going ...
23
votes
3answers
5k views

Am I obligated to file through a tax preparer after an unsatisfactory consultation?

I have been doing my taxes for 25 years with TurboTax. Like others, I was a bit upset at them for doubling the price of their software, so I decided I would make an appointment with H&R Block, ...
6
votes
2answers
7k views

Tax implications for a 100% 401k contribution limit

My company permits a contribution of a 100% of the paycheck towards the 401k. My question is, if I were to pick a 100% contribution amount, would I be liable for any taxes in the number of paychecks ...
12
votes
9answers
4k views

Has anyone compared an in-person Tax Advisor to software like Turbo Tax?

I've always been curious whether an in-person "tax man" would be able to save me any more money on my taxes. They normally charge more, so I've never done that. I have noticed that some softwares ...
10
votes
2answers
18k views

ITIN Application - IRS requesting original passport

I have filed joint tax return for 2012 tax year. My wife is not eligible for SSN (she's on H4 visa) so we included the W7 form (application for ITIN) into the package. This year the rules became more ...
6
votes
3answers
2k views

Can I receive “gifts” from my friend (who happens to be my employer)?

Take for example, I'm an employee and my employer is my good friend. We are both US persons living in the US, and I'm working for my friend for a monthly wage of $5 USD which is subject to income ...
3
votes
2answers
614 views

Should I pay off my braces all at once so that I can write them off this year as a health expense?

Should I pay off my braces all at once so that I can write them off this year as a health expense? Or should I pay off my braces over the long haul? P.S. I live in Pennsylvania.
3
votes
2answers
518 views

I have $20k of imaginary gains from trading last year due to wash sale rules. Should/can I take mark to market?

I have traded for most of the year while I work at my full time job as a software developer. I am using it to augment my income. I like working in academia but it just doesn't pay that well! I started ...
2
votes
4answers
15k views

Sales Tax: Rounded Then Totaled or Totaled Then Rounded?

E.g. There is a sale with 3 items, each costing $1.00. Sales tax is 12.4%. In calculating the tax for each item, do I round the tax amount first and then total everything up? Like this: ITEM 1: $1.00 ...
1
vote
2answers
3k views

How do you declare an interest free loan?

In the discussion around this question about gift tax it was said that a loan must be at market rate, or it is not considered a loan. Respecting the wisdom of the people who said that, I'm unclear ...
1
vote
2answers
2k views

Are there taxes for exchanging goods in a barter transaction?

For example, if I trade someone 10 apples for 10 strawberries, do I or my trading partner need to pay taxes? Do I need to pay taxes if I do business without using officially issued currencies? If ...
12
votes
5answers
1k views

What should I do with the stock from my Employee Stock Purchase Plan?

I've got an employee stock purchase plan program. The details are a little tricksy, but I basically get to buy about 2500 shares of company stock at something like $2.33/share... and the stock has ...
11
votes
3answers
829 views

When and how should I pay taxes on ForEx trades?

I am an Israeli citizen. I've bought BitCoin (let us agree for sake of discussion it is a currency) using US dollars. Let's also assume I never convert the bitcoins to any other currency (but instead ...
7
votes
1answer
8k views

My bonus is taxed at a higher rate than my regular paychecks, so should I contribute 100% of my bonus to 401k?

Is there a tax advantage to putting 100% of my bonus into 401k? From looking at my pay stubs, my bonus gets taxed at a higher rate than my regular paychecks. And since traditional 401k contributions ...
7
votes
4answers
11k views

Which state do you pay taxes in if you work in a different state than your employer? Specifically, if you live DC and work for a company in New York?

I've been doing some research on paying state taxes while working remotely and I will be consulting a tax advisor or CPA in regards to the matter; however, I love the StackExchange and I wanted to see ...
6
votes
2answers
5k views

Graduate student stipend 1099-misc taxes seem to be coming out too high. Am I doing something wrong?

I am a graduate student and I receive a stipend that pays my living expenses, through a national fellowship that I was awarded. The fellowship never withholds taxes of any kind, and so I have been ...
6
votes
1answer
1k views

Tax treatment of repaid tuition after employment termination

I am getting audited....yay! So here is the situation In 2010 I worked for mega corp that paid my tuition for a qualified master degree program. Obviously I am not entitled to an education tax ...
6
votes
4answers
22k views

Are 401k Employer Match amounts subject to FICA or any other tax?

When my employer makes a contribution to an employee 401k account, are any taxes payed by the employee (e.g. FICA)? And does the employer match amount show anywhere on the employee's W-2 or 1040?
5
votes
1answer
781 views

Tax implications of owning a Roth IRA as a Canadian resident?

I am a Canadian citizen, U.S. resident with Roth IRA, contributing for 15 years. I will be moving back to Canada in 2 years, am 47 years old, and will leave the Roth with Vanguard and not touch it ...
5
votes
1answer
961 views

Do I have to pay taxes in the US if my online store sells to US customers even though I don't live in the US?

I own a website and I sell digital content. I'm a nonresident alien with the US. Most of my customers are US based so I was wondering will I have to pay any taxes to the US? I have read that ...
5
votes
3answers
11k views

Am I being charged taxes on my grocery purchases at Walmart?

Today, I only bought groceries at Walmart and noticed that there is no tax on groceries in California (Google tells me that this is perhaps true for whole of the US?) So far I have always paid tax at ...
5
votes
2answers
165 views

Is it advisable for a new PhD student to enroll on a Roth IRA?

My parents are telling me to do it, but I do expect to pay a lot of money for the first year just because I need to move in and get a lot of things set up (like an ergonomic working environment). So I'...
4
votes
2answers
962 views

Can I write off time I spent working on my business?

So, I'm a freelance web programmer by trade, which means that my time really is money. I, occasionally, work on side projects of my own and forgo the possibility of earning direct income for that time....
3
votes
1answer
673 views

“Cap gains exposure” of an ETF — what does it mean?

Morningstar provides an ETF data point called potential cap gains exposure. For example, here is Vanguard's Europe ETF (VGK): This value is negative 78% for VGK. I understand that this is a good ...
3
votes
1answer
906 views

Am I eligible for a refund of Social Security and Medicare taxes for when I was on an F-1 visa?

This question is for a friend. They came to the United States as a student in 2009 on OPT/F-1 visa. In November of 2011 they started to work for the Department of Defense as a teacher. They had Social ...
3
votes
2answers
181 views

Marriage Tax Benefits

If two individuals were considering marriage after college, what would the actual tax benefits be? Both are male. Both have full time jobs. In the United States.
3
votes
2answers
131 views

Have I correctly calculated my takehome pay?

In some months, I'll start working in the United States. I come from a country where calculating the net salary is REALLY complicated, and where the various taxes are paid at multiple stages (e.g.: ...
3
votes
1answer
422 views

Transferring money from the Philippines to the USA?

I would like to bring in $150,000 from my bank in the Philippines to another bank here in the US. This money is from a lot I sold which was given to me (under my name) by my dad who has already passed ...
2
votes
1answer
4k views

Will it be taxable if I transfer money from UK account to India account?

I am a resident of India and currently in UK for 1 year on a work permit where I am getting salary in Pounds. My Indian salary has stopped till the time I am back in India. Now, I have a Home Loan ...
2
votes
1answer
680 views

Taxes and part-time consulting

I'm married and my wife and I work full-time. And I also started part-time consulting on the side (less than 10 hours per week or no hours during certain weeks). This is my first time doing consulting ...
2
votes
1answer
602 views

233 days India/132 days US - entire US salary taxable in India?

I was living in India for about 7 and half months in FY2013-2014 working as an independent consultant for a US company. I moved to USA for employment on Nov 20 2013 to work as an employee for the same ...
1
vote
1answer
101 views

Colombian citizen working for a small US company from abroad

I'm a Colombian citizen working as a consultant for a small US Company. I'm working from abroad (Colombia). My questions are: What form does this US company need to fill out for taxes? Can I pay ...
1
vote
4answers
1k views

I file 83(b) election, but did't include a copy of it in that year’s tax return

I filed an 83(b) election for stock I purchased in 2011 with the IRS with the 30 days window, but later did not include a copy of it in that year’s tax return. The the purchase price and the fair ...
1
vote
2answers
285 views

How to fill out form W4 when I'm earning $1600 extra income per month?

August 22 was my last day at a job that paid $76,000 / yr. Afterward, that job is supposed to pay me $400 / wk for consulting for $1,600 / month. At the new job (which I started on Aug 26) I'm making $...
-1
votes
2answers
271 views

Emptying a Roth IRA account

If I withdraw money from my single Roth IRA account to make it empty, will the account be closed? Is there any expense to open a new Roth IRA account? If my purpose of emptying my Roth IRA account is ...
40
votes
6answers
7k views

Why are businesses allowed to deduct expenses from their income, while individuals generally cannot?

In general, it's an accepted principle that businesses should be allowed to deduct expenses. How did this principle come about? And why doesn't it appear to apply to individuals to the same extent? ...
15
votes
3answers
945 views

Moving from full time to contractor

For many reasons I am moving from full time employee to a contractor with an associated company in a different city. Everyone I have spoken to says contracting is great except for the taxes and lack ...
9
votes
3answers
278 views

Solid reading/literature for investment/retirement/income taxes?

I'm striving for financial literacy and education. I've been really frustrated with most of the literature that's out there surrounding retirement, income taxes, and investment. Most of it seems ...
14
votes
4answers
7k views

How can I make “four equal” quarterly tax payments when I don't know what my income will be?

I'm running my own business for the first time and I noticed while filing my first quarter's estimated taxes that the instructions ask you to make "four equal payments" throughout the year. But many ...