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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27
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3answers
1k 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 ...
1
vote
1answer
364 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 ...
1
vote
1answer
206 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 ...
1
vote
3answers
5k 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 ...
7
votes
2answers
18k 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 ...
12
votes
9answers
1k 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 ...
6
votes
2answers
6k 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 ...
5
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 ...
4
votes
1answer
238 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 ...
3
votes
2answers
557 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.
10
votes
5answers
835 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 ...
6
votes
1answer
396 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 ...
5
votes
1answer
5k 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 ...
4
votes
2answers
218 views

What accounts for the “average” FICA payroll tax paid not being close to its 15.3% theoretical maximum?

This is a question regarding the social insurance tax in the U.S. The effective payroll tax cited by the Congressional Budget Office as well as the Tax Policy Center is lower than I would expect for ...
3
votes
2answers
140 views

Nanny taxes and payroll service

We are employing a nanny for our 6 month old. What service do you recommend for managing taxes and payroll? Is it possible to do on our own? If so, where do we start?
3
votes
1answer
372 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 ...
1
vote
2answers
178 views

Trading US stocks from India

I used to live in US on H1B visa. I have opened a trading account in US. Now I have moved back to India but I am still doing trading with US account. Also I have not closed my bank account in US. My ...
1
vote
1answer
118 views

cross-currency accounting

I am an American and pay taxes in US dollars. I have some holdings in another currency, for instance, the Euro. Obviously the funds have never been repatriated but this lack of tax event is messing ...
1
vote
2answers
918 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 ...
1
vote
1answer
94 views

US Simple donation taxation question

If i take in 50k of income and donate 40k to a 501(c)(3) non-profit, how much money will have to pay taxes on? I am a sole proprietorship. Thanks!
0
votes
1answer
102 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
220 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 ...
35
votes
5answers
6k 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? ...
14
votes
3answers
533 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 ...
11
votes
4answers
3k 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 ...
10
votes
5answers
1k views

Where does most of a salary go?

I'm not working and earning a salary yet, as I'm still in college, but I was wondering: where does most of a salary go? As a software engineer, I might earn around $70,000 a year. I find it hard to ...
9
votes
3answers
243 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 ...
11
votes
3answers
2k views

Are there capital gains taxes or dividend taxes if I invest in the U.S. stock market from outside of the country?

Recently, I invested in some stock in the U.S. stock market. I was wondering: Whether there are capital gains taxes if I sell stock? Do they take account into my foreign exchange loss? Are there any ...
11
votes
5answers
312 views

What's the difference between Term and Whole Life insurance?

How would one decide which is most appropriate? Are there tax or benefits differences that one offers over the other?
6
votes
1answer
1k 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 ...
22
votes
4answers
1k views

Pros/Cons of a Health Savings Account (HSA) in the USA?

I am wanting to know the real benefits or pros/cons of a HSA in the USA. I have now been given the option of signing up for one due to healthcare changes. I understand some of the basics, but after ...
10
votes
3answers
33k views

If I leave my job, what happens to my flex 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
2answers
8k views

What is the difference between pre-tax and post-tax paycheck deductions?

I am getting insurance for about 4 months, the length of my contract with a company. I am given the option of having the cost deducted from my paycheck pre-tax or post-tax. What is the difference? ...
5
votes
3answers
6k views

Do the tax consequences make it worth it for me to hold ESPP stock?

Disclaimer — I've read What should I do with the stock from my Employee Stock Purchase Plan? and the answers seem to be both slightly wrong (from what I know) and contradictory, which is why ...
4
votes
2answers
2k views

Can I be my own administrator for an Individual/Solo 401k?

I'm interested in creating a company and rolling my 401K into a Solo or Individual 401k so that I can have more control over my investments. From what I've seen so far, it looks like you need an ...
4
votes
1answer
126 views

Should I put things like Family Payments, Interest on savings .. everything .. under my wife's name for Australian taxation reasons?

so it's tax time again. My wife and I aren't sure who's name/names we should be putting any of our incomes into for Australian Taxation reasons. To keep this simple, I'll use some fake numbers to ...
3
votes
2answers
2k views

Can capital loss in traditional IRA and Roth IRA be used to offset taxable income?

For traditional IRA and Roth IRA, can capital loss be used to offset taxable income for tax purpose? If not, when withdrawing from traditional IRA and Roth IRA, can the capital loss now be used to ...
3
votes
1answer
241 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 ...
3
votes
2answers
965 views

Should I wait to sell a stock (at a loss) that I have held for less than a year?

I currently hold some shares of a stock that I don't expect to regain much value. I bought this (at a higher price) about 8 months ago. My limited understanding of the way capital gains taxes work ...
2
votes
3answers
2k views

Using bonus in a tax-efficient way with my 401k account? [duplicate]

Possible Duplicate: My bonus is taxed at a higher rate than my regular paychecks, so should I contribute 100% of my bonus to 401k? Is there any tax advantage that I can gain if I invest my ...
1
vote
2answers
50 views

How can I determine my basis for a gift of mutual funds?

My parents, saving for college many (20+?) years ago, purchased some Evergreen mutual funds for each of their children. I believe the accounts were established in the children's names. Thanks to some ...
10
votes
3answers
567 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 ...
8
votes
3answers
3k views

Is Tax Audit Protection insurance worth the money?

TurbaTax is offering me Tax Audit protection for $49.95. If my tax return is randomly selected for audit they will represent me. Is this service worth the money?
8
votes
2answers
6k views

Can I get US sales taxes refunded for electronics purchased while on vacation?

I'm visiting the US for vacations (specifically Manhattan) and wanted to buy a digital camera. The guy at the shop told me that I can get back what I pay in NYC taxes for that camera if I present the ...
7
votes
1answer
215 views

Convert Traditional IRA to Roth IRA when income limits are not satisfied by Roth IRA?

Our household MAGI (Modified Adjusted Gross Income) does not allow us to contribute the full amount to a Roth IRA for 2010. In that case is converting some part of Traditional IRA to Roth to complete ...
6
votes
2answers
3k views

I plan on receiving a $200,000 personal loan via wire transfer. Do I have to report this to the IRS?

After researching online, I found many websites that said wire transfers are not reported to the IRS, but others said that they were reported. I just want to make sure that I do not have to pay taxes ...
6
votes
1answer
525 views

Moving money from my savings account to an IRA - why am I paying taxes on it?

I'm planning to move money from my savings account to a new IRA account, but I don't understand why I'll be charged penalties for withdrawing the money. Why do I have to pay extra taxes to take my ...
6
votes
2answers
10k views

Why do companies have a fiscal year different from the calendar year?

There are many companies that have their year end occur on dates other than December 31. What are the advantages to this?
5
votes
2answers
381 views

Rationale for lower deduction limits for married couples filing seperately?

I recently discovered that I can't contribute to a Roth IRA if I file taxes separately from my wife. What is the rationale for this rule? mod edit ...
5
votes
2answers
939 views

Remote work. Live in one state, company in another state. tax witholding

I don't currently know a tax lawyer/firm that is actually competent in all the issues here, so maybe you all can tell me something constructive about this state income tax question. In this scenario, ...