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1

TL;DR: Get a tax adviser (EA/CPA licensed in your State) for tax issues, and a lawyer for the Operating Agreement, labor law and contract related issues. Some things are not suitable for DIY unless you know exactly what you're doing. We both do freelance work currently just through our personal names. What kind of taxes are we looking into paying ...


3

Nice idea, but you will have a potential problem. State lawmakers have already considered this option: I looked at this site: Saving for college because it include info for on all the plans. For Illinois it discuses income tax recapture. Effective January 1, 2007, rollovers from this plan to an out-of-state program are included in Illinois taxable ...


0

This is from India point of view, Someone would come along and answer taxes from US point of view. Can stocks/shares held in the name of Indian parents be transferred to children living in U.S and what is the tax implication on it ? Assuming you are PIO and now US citizen, you would be treated at par with NRI. You have to open an NRI Demat NON-PINS ...


0

I can't give an authoritative answer to this, but I was in the same position in 2000 and 2001 and this was my experience as far as I can remember: I visited a HMRC drop-in centre and asked if I needed to do anything to pay tax in the UK on the foreign income. They said I didn't because it would be taxed in the US. I wasn't entirely convinced by this but I ...


1

What is the maximum cash gift a person can receive from Indian parents? There's no limit on what a US citizen can receive. The only thing to keep in mind is that if you get $100K or more in gifts/inheritance from foreign persons - you'll need to report it (not pay any taxes!) to the IRS on form 3520 as part of your tax return. Beyond what limit ...


1

From a federal tax point of view, withdrawals from 529 plans are treated as taxable unless they are used on qualified expenses: The part of a distribution representing the amount paid or contributed to a QTP does not have to be included in income. This is a return of the investment in the plan. The designated beneficiary generally does not have ...


3

T4A is "Statement of Pension, Retirement, Annuity, and Other Income" Other Income includes scholarship and certain grant. If the amount is exactly $890 and the payer is Ministry of Training, Colleges and Universities, it is 30% Off Ontario Tuition Grant. If the amount is exactly $1000 and the payer is Canada Student Loans Program, it is Canada Student ...


4

Capital losses from the sale of stocks can be used to offset capital gains from the sale of a house, assuming that house was a rental property the whole time. If it was your principal residence, the capital gains are not taxed. If you used it as both a rental and a principal residence, then it gets more complicated: ...


1

As pointed out by ulty4life, the IRS withholding calculator advises people to choose their withholding to more closely match their anticipated taxes. In my particular case I will be married in a couple of months and because my fiance is not employed I have already over payed in taxes for the year. Based on the good-faith honest information I entered, the ...


1

I must say that this is a question that you should hire a professional tax adviser (EA/CPA licensed in your State) to answer. It is way above our amateurs' pay-grade. That said, I'll tell you what I personally think on the issue. I'm not a licensed tax adviser, and nothing that I write here can be used in any way as a justification for any action. Read the ...


0

This sounds like a rental fee as described in the instructions for the 1099-MISC. Enter amounts of $600 or more for all types of rents, such as any of the following. ... Machine rentals (for example, renting a bulldozer to level your parking lot). Non-Employee compensation does not seem appropriate because you did not perform a ...


4

You cannot withdraw funds from a 401(k) while still employed with your company. To access your contributions, that would be treated as a loan against the 401(k), in which case you'd pay an upfront fee, and then have to repay the amount loaned, plus interest, over a set period of time. (In essence, you are paying back yourself.) Typically, there is also a ...


2

Choose the address based on where you currently live (where you are mailing the tax return from.) You can find the correct mailing address here. Just choose the state you live in, and the website will give you the correct mailing address. If you get it wrong, I don't think it matters a whole lot, except perhaps to delay things a little bit. They just ...


2

The one where you want to receive correspondence from the IRS.


1

Ed: Saw your comment, thank you. The short answer (a rough simplification), seems to be that you pay PA income tax for income made in PA. You pay IL income tax for income made in IL, not income made across both states. And you make sure the IL amount paid is correct via a credit calculated on Schedule CR. It looks to me (bear with me, I am no expert on tax ...


11

No. That's not an option. Unfortunately, it's a bit late to strategize, but in 2014, I'd have suggested that you take IRA money and convert it to Roth. Of course this only works if you have a pretax IRA or 401(k) you can convert. Between your exemption ($3900) and this deduction, you could have converted $30K with no tax due. More, taking property tax and ...


1

I suggest taking a look at your pay stub or pay statement. Your employer should provide you with one for each time you get paid. This shows your gross income (pay period and year to date or YTD for short) and all stuff that gets deducted and how your actual payment is calculated. In my case there are nine things that get taken off: Federal Income Tax ...


2

You need to wait for them to reject and follow the instructions on how to resubmit. In some cases, if e-file got rejected, you'll have to paper-file the fixed one. If you're rejected, the submission deadline gets extended by a few days, so as long as you resubmit on time, you're OK.


3

The only non-retirement, tax-advantaged accounts I'm aware of are: HSA accounts. 529 accounts. You can also invest in government bonds. They have lower returns than stocks over the long run, but are federal tax-free. For most states, they are also state tax-free if you buy bonds from the state you're a resident of.


3

You can ask your employer to add more exemptions so that they withhold less taxes from your paycheck. However, this is a really bad idea; you're not supposed to knowingly claim an inaccurate number of exemptions. If at the end of the year, you owe the IRS too much when you file your taxes, they will hit you with a penalty. Find out more about the penalty ...


1

I did receive TurboTax's automatically generated confirmation of successfully completing tax filing electronically the day I did my tax on their web site. About 24 to 48 hours after you push the button at TurboTax the IRS should either confirm or reject the initial check of the tax documents. You should return to the TurboTax website to make sure the IRS ...


0

Assuming you're talking about your United States Federal Income Tax payment or refund, the IRS has a website for checking the status of your refund. You can check that site to see where your refund is. If it doesn't show up on that site (assuming you provide all the information correctly), then you may want to check TurboTax to verify it was correctly ...


6

Yes, your tax bracket is 25%. However, that doesn't mean that your take home pay will be 75% of your salary. There is much more that goes into figuring out what your take home pay will be. First, you have payroll taxes. This is often listed on your pay stub as "FICA." The Social Security portion of this tax is 6.2% on the first $118,500 of your pay and ...


3

I made an appointment with and visited the taxpayer assistance center of my local IRS office. This is what I was told: I should contact the employer and ask them to fix this. If contacting the employer is not possible or not successful, I should submit a Form SS-8 detailing the situation and providing all relevant details. The SS-8 is separate from the tax ...


3

File a 2nd amended return that corrects the mistake I made on the 1st amended return This. Pay the $500 before April 27th and try to get it back later This.


4

The problem is your first assumption seems to be incorrect. (I do not see the $178,700 figure anywhere on the the page you referenced, by the way.) Federal withholding is not the same for singles and married couples up to AGI of $178,700 because their taxes may differ at lower amounts. An example: Taxpayer A: AGI = $60,000 - Standard deduction of $6200 - ...


15

I'll answer based on your response to my comment on the OP. The basic issue is that when income from multiple jobs is combined, the marginal tax rate may be higher than that for either job separately. For a single taxpayer with multiple jobs, this is easy to figure out. Suppose you have a job where your AGI puts you at the very top of the 15% bracket, so ...


0

In your case, I believe the answer is that you don't owe any taxes, if your deductions exceed your income. There is something called the Alternate Minimum Tax to catch "rich" people, who claim "too many" deductions. Basically, it taxes their "gross" income at a lower rate, but allows them no deductions if they make $175,000 or more. You are not in that tax ...


4

No. The electronic rejection didn't change the due date of your return and the following code sections still apply. § 408A(c)(7) -> §219(f)(3) (3) Time when contributions deemed made For purposes of this section, a taxpayer shall be deemed to have made a contribution to an individual retirement plan on the last day of the preceding taxable ...


0

As a CPA I can say, without a doubt, you do not owe any federal income tax. However, assuming all of you income was from your business and therefore subject to self-employment tax and you had no healthcare coverage, you would owe: $2,523 in Self-Employment Tax 645 in Healthcare Penalty $3,168 Total Amount You Should Owe. Assuming you have given us ...


1

Yes. While you file Income Tax Return, you can include any interest earned (this includes FD, RD and SB accounts) as other income. Any tax deducted at source can be included in tax paid section. So the amount of Rs.2336 of tax deduction in your question will go to tax paid section. As per laws applicable for FY 2014-15, a bank branch would deduct 10% TDS on ...


1

Yes, that would probably do. You'll probably need to attach a statement explaining that the other account holder already reported the income. However, a tricky situation may occur if the other tenant paid no tax while you would. In this case, I'm not sure what would be the right way to handle the situation and suggest to talk to a licensed tax adviser ...


3

Did I do anything wrong by cashing a check made out to "trustee of <401k plan> FBO ", and if so how can I fix it? I thought I was just getting a termination payout of the balance. Yes, you did. It was not made to you, and you were not supposed to even be able to cash it. Both you and your bank made a mistake - you made a mistake by depositing a ...


3

Generally with most states and Colorado specifically, having an employee in the state triggers "nexus" or presence for your company in that state. With nexus, your company will be subject to state income taxes and sales taxes in Colorado. The company will have apportion the services that you render to clients as income in Colorado and pay income tax to ...


1

To report backdoor Roth IRA contributions in TurboTax, you have to fill in two completely separate places: Wages & Income -> Retirement Plans and Social Security -> Retirement Plans and Social Security Deductions & Credits -> Retirement and Investments -> Traditional and Roth IRA Contributions After you fill out #1, your "taxes" will seem to ...


18

There's one factor the previous posters apparently missed here: You say "self-employment tax"--in other words, at least some of that $16k is from self employment. In a normal employment situation the FICA tax is taken out of your paycheck, it's normally spot on and generally doesn't show up on your tax return. However, for the self-employed it's another ...


4

I'm going to echo Phil and say that you should add more information. That being said, I think it is possible for you to owe the government that much. If you received a federal health insurance subsidy and live in a state that didn't expand medicaid, you could have received a subsidy through out the year that you did not end up qualifying for. It appears ...


5

No, it's not possible. Even if you had no deduction or credits, your federal tax on $16,604 would be: $9075 @ 10% = $907.50 + $7529 @ 15% = $1129.35 = $2036.85 That assumes you are filing as single. There must be more to the story. Typo in your income numbers? Also, what do you mean by a self-employment tax deduction? Maybe update your question to ...


2

You probably entered it wrong in TurboTax. Distribution code "2" should have triggered some more questions in the TurboTax, but I don't know exactly how it works there. Bottom line is that you need to add form 8606 to your return. Here's something on Intuit forums that tells you how to get to it.


4

You do not value the house for tax purposes. You don't need to. You know your cost basis exactly, to a cent. Nothing to value. This is how it works: You bought it for $150K in 2004. You converted it to a rental in 2011, with depreciation basis of $70K (the lesser of the FMV or your original cost basis). You depreciated between 2011 and 2014 - lets say $9K ...


1

should I be filing an amended form i.e. Form 1040X and also should I send Form 1040 NR now, too, as the form I filed was Form 1040? Assuming your determination is correct (that you should have filed NR) and you're not making a first year election, yes you should. In fact, even if you do make the first year election (which would make you dual status - ...


0

You have two moves, and you must pass the distance test and the time test. From the same publication 521: Distance test: Your move will meet the distance test if your new main job location is at least 50 miles farther from your former home than your old main job location was from your former home. For example, if your old main job location ...


3

Square is a company. They need to detail as part of their corporate taxes all of their expenses. The money they collected for you, and sent to you, is not income for themselves. Their tax form included the amount of money they sent you, along with either your Social Security Number of corporate tax id. The IRS computers match the information regarding ...


0

I've been through a similar experience. Consider the following: Since you've done so much prep this year with the current CPA, stick with him for your 2014 taxes. Keep the relationship as amicable as possible. Pay him for his work and make sure you get all your forms and paperwork back from him. If he still has paperwork from previous years, ask for those ...


0

Edit: Please also see the comments below. @NateEldredge has added some important information that has to be examined. Is the scholarship an actual scholarship or is part of it an assistantship/fellowship (common with graduate students, teaching assistants, et al.)? If the latter is true, the portion of the remuneration that is not spent on what the IRS ...


1

Yes, for personal income. All personal income that is not from capital gains or eligible Canadian dividends is treated as Other income and subject to the same marginal tax rates.


5

It seems that counting your father as your dependent shouldn't, in itself, cause him to be ineligible for SNAP. Eligibility requirements for SNAP can be found on this FNS page. There are upper limits on the "countable resources, such as a bank account" that the beneficiary's household may have, and on that household's income. (There are some other ...


0

The employment tax circulars state that bonuses should be taxed at 25% with regard to proper withholding by the employer. Some paycheck software may not take this rule into account, as above. See IRS.gov Circular E. For the employee, the total income (including bonuses paid) is declared at year-end, and the tax rate is applied from the tax tables, which may ...


1

Bonuses in the U.S. are taxed as normal salary/wage income. They are part of the total taxable income reported to you on Form W-2 and you include them with your normal income on your 1040/1040A/1040EZ. As with normal income, the rate at which they withhold from a bonus has nothing whatsoever to do with how much tax you will actually owe on the bonus. You ...


15

In the US, withholding has nothing to do with your actual tax liability. You control the amounts withheld via form W4 that you provide to your employer. It is up to you what to write in that form, and how much is withheld will be based on that. You may limit the withholding and have nothing withheld at all, or withhold twice as much as your real tax ...



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