New answers tagged

3

Tax exempt contributions made to an employer Section 125 Cafeteria plan are governed by the IRS. The IRS states that the election change may not be made during a plan year except for certain qualifying events. Off plan-year changes due to eligibility under a different employer plan, loss of eligibility under a different employer plan and open enrollment at ...


5

Having worked for H&R Block for one tax season I can speak to the entire process. The accepted answer at the top nails a big part of it but I'll add a bit of background knowledge. I was looking for a temporary job one year and decided to give H&R Block a try. I was made to take a training course for the first level of returns, and after two weeks of ...


2

You usually have to pay tax on your UK income even if you’re not a UK resident and wages are included on which you have to pay tax. Malta has a double taxation agreement with UK so you don't have to pay tax in both places. So you can pay your taxes in UK and that covers all. If in doubt you can visit a tax adviser or contact HMRC for any further ...


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What tax benefits do I get if I have a non working spouse ? None Do I get these benefits for the duration that she is not in the US but back in our native country and has a job there ? N/A


4

Generally in the US, tax withholdings are calculated by extrapolating the check amount against the number of pay roll periods in a year, then considering the standard deduction and number of exemptions you've claimed. If you receive a retroactive raise and, as a result an abnormally high paycheck, your withholdings will likely be over-estimated on that ...


0

A startup tends to offer a few different types of equity compensation depending on size. The company would offer stock options (either Incentive Stock Options and Nonqualified Stock Options). They are allowed to give $100K of ISOs per year. (Note, if you have early exercise privileges, then only the first $100K worth of shares would be ISOs and the rest ...


0

You don't want to do that. DON'T LIE TO THE IRS!!! We live overseas as well and have researched this extensively. You cannot make $50k overseas and then say you only made $45k to put $5k into retirement. Some people have said that the IRS considers Foreign Earned Income as NOT being compensation when computing IRA contribution limits. Publication 590-A ...


1

If you follow the worksheet, then: 1 for yourself 1 since You are married, have only one job, and your spouse does not work 1 for your spouse for a total of 3.


2

It depends on different factors but what I would invite you to read is the following document in order to better see where you would sit. How it usually works in Europe: You pay taxes where your residence is, and, You pay taxes where you earn money. What countries of Europe have put in place is something that enables you to not pay the same tax twice (...


5

The CNN article you linked to lists the organization specializing in medical debt forgiveness: Oliver transferred the file with the 9,000 debtors' personal information to RIP Medical Debt, a nonprofit that forgives medical debt with no tax consequences for the debtor. That organization's web site FAQ says Do I Have to Pay Taxes on This? The ...


10

You're talking about salary deductions, not the actual taxes. These are not the same. Salary deductions include benefits, which differ between companies. They also include tax withholding which is calculated on annual basis. In California they also include the State-mandated disability insurance, which can be a tax (CASDI) or a private insurance sponsored ...


4

According to IRS Topic 431 - Canceled Debt, Cancellation of a debt may occur if the creditor cannot collect, or gives up on collecting, the amount you are obligated to pay. In general, if you have cancellation of debt income because your debt is canceled, forgiven, or discharged for less than the amount you must pay, the amount of the canceled debt is ...


2

Ben's answer is correct. As a follow up, I'd suggest that you get through a pay cycle where the new withholding is reflected. Take those paystubs and project out to year end. Then go to an online Tax Calculator, and do a dry run of your 2016 return. If you need to withhold more, just use the line on the W$ to withhold $XXX extra each check. Keep in mind, ...


3

TL;DR - my understanding of the rules is that if you are required to register for GST (earning more than $75k per annum), you would be required to pay GST on these items. To clarify firstly: taxable income, and goods and services tax, are two different things. Any income you receive needs to be considered for income tax purposes - whether or not it ends ...


3

The IRS has a Withholding Calculator on their website. On it, you enter the details of your filing status, number of dependents, and the amounts from your current paychecks, and it will recommend a number of exemptions to claim on the W4.


2

Assuming your country is the United States there is. See schedule C line 9 and the corresponding instructions. There are many rules associated with this, in some cases the entire purchase can be written off but typically if the truck is only used for business. Most people write off partial usage in the form of credits for mileage. You are best to ...


2

You'll need to contact payUSAtax.com support and explain the situation. From the payUSAtax.com support FAQ: I used your service and received a non-payment notification from the IRS? Please verify your prior payment through this service by selecting the payment verification link. Within the payment verification link, you will enter your prior ...


2

I'll be happy to edit when you provide answers to the question I posed in the comments. Given the choice (and I assume there is no other) I'd take a loan from the 401(k) vs a withdrawal. You withdraw $40K. I'll assume 25% bracket as you're planning at least a $200K house. Hopefully, your taxable income is above $38K, the 25% line for singles. The tax and ...


3

Unless you have an actual hardship (bankruptcy or other emergency), you will be better off leaving that money alone. This excellent answer, gives more than enough reasons why a withdrawal or loan is not recommended. I would love some advice because I need to know if I should contribute more into my 401k or less. If your priority to purchase is high ...


1

This is a purely numerical statement that you should be able to check (and you CPA friend should be able to prove, if true). The general advice, I think, is that you should not use your retirement funds this way, but general advice does not apply equally well to everyone. You didn't give enough information for us to compute the answer, so you're on your ...


9

Generally if you need to tap into your retirement for the house - you probably shouldn't buy the house. But that's your call. There are several things you could do. Sue your CPA "friend" for malpractice. Especially if there's any actual proof of that stupid suggestion. Check with your 401k administrator about home-purchase loan from the 401k. You'll be ...


1

The definition of residence qualifying for the interest exemption is in Sec. 121 (the interest deduction itself is discussed in Sec. 163). From my reading of that section, there's nothing to prevent you from taking the deduction. Keep in mind that since you're not going to be having 1098s from your foreign bank, you'll need to provide proper documentation ...


10

Nope, not deductible. It's true that some investment expenses are deductible, mainly as "miscellaneous itemized expenses", though only the amount that exceeds 2% of your adjusted gross income. But as explained in IRS Pub 550, which lays out the relevant rules: Stockholders' meetings. You cannot deduct transportation and other expenses you pay to ...


-1

Jurisdictions will vary but I can imagine calculation methods for child support where the raise could become significant in the present with long future ramifications as well, even if the job is temporary or the parent wanted to step away from working full-time to attend school. The timing of the raise might coincide with disclosure of income to an ex-spouse ...


1

Am I eligible for declaring my earnings to the IRS? You're always eligible. You're probably asking whether you're required. In the US it doesn't matter where you deposit the money, it matters where you earn it. Money is earned where the services are provided. This is called "sourcing". So if you are working in a foreign country - you're only subject to ...


1

That's true for the tax return. The T1135 has some late penalties. These only apply if you had to file one, some/most people don't. http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/frgn/pnlts_grd-eng.html



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