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If you are a permanent resident (and it wasn't taken away or abandoned), then you are a resident alien for U.S. tax purposes. (One of the two tests for being a resident alien is the "green card test".) Being a resident alien means all your worldwide income is subject to U.S. taxes, regardless of where you live or work. That doesn't necessarily mean you need ...


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I know a guy on a much higher rate than me, about £500 per day, and he claims to pay around 18% tax which has me bewildered Your acquaintance may be using a tax efficient, or "marketed avoidance" product identical or similar to those required to be registered or declared under DOTAS legislation in the UK. If this is the case then no, your accountant ...


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Where you earn your money makes no difference to the IRS. Citizen/permanent resident means you pay income tax. To make matters worse given your situation it's virtually certain you have unreported foreign bank accounts--something that's also an important issue.


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Another way to look at it is that deductibles are intended as incentives or subsidies to particular industries (in this case the healthcare industry). Guaranteeing a decent standard of living and making sure everybody can meet the costs of “necessities” can be achieved much more easily by a low tax rate on the first XXX$ of income and/or generic welfare ...


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You could debate the "why"s of tax policy endlessly. There are lots of things in tax law that I think are bad ideas, and probably a few here and there that I think are good ideas. I am well aware that there are things that I think are good ideas that others think are bad ideas and vice versa. To your specific point: I suppose you could say that having a ...


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The answer is simple. You can generally claim a deduction for an expense if that expense was used to derive an income. Of course social policy sometimes gets in the way and allows for deductions where they usually wouldn't be allowed. Your rent is not tax deductible because this expense is not used to derive your income. If however you were working from ...


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Law is a mass of special cases, informed by but not driven by some general principles. Tax law likewise. Don't try to make it make sense; you will only confuse yourself. Not all "necessities" are deductable, only those which someone has explicitly passed a law to make deductable.


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IRS pub 521 has all the information you need. Expenses reimbursed. If you are reimbursed for your expenses and you use the cash method of accounting, you can deduct your expenses either in the year you paid them or in the year you received the reimbursement. If you use the cash method of accounting, you can choose to deduct the expenses in the ...


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I believe moving reimbursement has to be counted as income no matter when you get it. I'd just put it under miscellaneous income with an explanation.


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I know a guy on a much higher rate than me, about £500 per day, and he claims to pay around 18% tax which has me bewildered He will be showing expenses, which are deductible. Check with your accountant about expenses, which can be legally claimed as expenses. This is the main benefit of operating through a limited company. Legtimate business expenses ...


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Only the person who actually made the donation can claim the deduction. Interestingly, I can't find an IRS source addressing this misconception directly, but it is implicit in statements like this: You can deduct your contributions only in the year you actually make them You can also find various other sources on the internet saying the same thing ...


2

I think your real question is: "Can I avoid paying quarterly taxes in my situation". The answer is probably "yes". If you calculate your profits and taxes owed, you can have your employer withhold the extra taxes from your paycheck (assuming you're not self-employed, etc.). You'll still have to do yearly taxes and details then, but if you don't want that ...


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As you do not have any relation to your Uncle, It will be treated as "Gift" to your uncle. He has to pay a Gift Tax on the amount received. Under the Gift Tax, if the total value of Gifts [including assets like shares etc or Immovable assets like land / house etc] exceeds Rs 50,000/- for a year, all the amount will be taxable at the income tax slab. If ...


4

Quarterly tax payments are required if your withholding isn't enough to avoid penalty. If you buy a rental property and manage to have say, $5000 in profit, after all expenses and depreciation, you'd owe $1250 in tax in the 25% bracket. Whether this is enough to trigger a penalty is the question. If you have other income, you can simply adjust the ...


3

Here's a rough estimate, though these numbers may vary widely: Gross income: $150k Fed Income Tax: 20% $ 30k (Depends on dependents, etc.) Soc Sec and Med Tax: 10% $ 15k (Depends on dependents, etc.) State Income Tax: 10% $ 15k (Depends on dependents, etc.) Medical Insurance: $ 2k (Varies widely based on ...


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The IRS has offices in most large cities of foreign countries (basically anywhere Americans are likely to live). You might want to visit one of those offices and ask them what to do. It's possible that they might accept a check from you or forward your check to the United States,


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You haven't mentioned the dates when you took the possession of the house. Assuming this to be in the current financial year, i.e. April 2014 to Mar 2015; you can claim a rebated of Rs 2,00,000/- on the interest. The pre-emi interest is to be amortized at 20% for 5 years. So for the current year, your total interest paid will be 2,60,000 + 1,80,800/5 = ...


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Being self-employed, your "profit" is calculated as all the bills you send out, minus all business-related cost that you have (you will need a receipt for everything, and there are different rules for things that last for long time, long tools, machinery). You can file your taxes yourself - the HRS website will tell you how to, and you can do it online. ...


3

If you aren't filing anything new (just accepting what the IRS says you owe) I think you can use the usual methods. IRS payment options DirectPay is essentially an electronic check. They have options for doing it via credit or debit card for a small fee. Credit/Debt options The IRS can be picky about some things, but when it comes to accepting money ...


2

Short answer: Yes, if the Fair Tax was passed, this would create an incentive for people to make purchases before the new tax went into effect. And, I might add, to defer income until after it went into effect. Like at my job we typically get a Christmas bonus on December 31 each year. If the Fair Tax was going into effect on January 1 and so the income tax ...


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Your question can be generalized to address any significant changes in the tax code. The recent series of changes to the estate tax, for example, offered a year in which dying produced an unlimited exemption for your estate. 2010 will be remembered by tax geeks at "a good year to die." To the exact point you mention, home purchases. This isn't as simple a ...


0

You mention "early exercise" in your title, but you seem to misunderstand what early exercise really means. Some companies offer stock options that vest over a number of years, but which can be exercised before they are vested. That is early exercise. You have vested stock options, so early exercise is not relevant. (It may or may not be the case that your ...



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