New answers tagged income-tax
0
F1 non-residents do not pay FICA tax.
1
There are two kinds of ESPP plans.
In qualified plans, you are not taxed until you sell the stock. In nonqualified plans, you are tasked on the discount at the time you get the shares, and then after that you are taxed as any other stock purchase is taxed. Your basis is the non-discounted price.
In my experience, employers do withhold taxes on nonqualified ...
2
You use form 5329 to explain why you took a withdrawal that you are not paying tax on. The instructions are brief and helpful.
1
The company will probably not withhold anything from the sale itself, so you need to take it into the account. Ask your payroll department if they adjust their calculations for the regular salary withholding, but I don't think they do.
6
Will I have to pay taxes in India when I transfer money from a US bank to an Indian savings account?
As NRI/PIO (Non-Resident Indian/Person of Indian Origin), the overseas income and transfers in foreign currency are exempt from Indian income taxes. However, the account in India has to be designated NRE or FCNR.
There are three kind of accounts that an NRI can maintain
Non-Resident Ordinary Rupee Account (NRO Account)
Non-Resident (External) Rupee ...
1
Will I have to pay taxes in India when I transfer money from a US bank to an Indian savings account?
If you are a non resident Indian, the income you earn and transfer to India is tax free in India. You can hold the funds in USD or convert then into INR, there is no tax implication.
18
This is tax fraud, plain and simple.
I recently wrote an article The Step Transaction Doctrine, in which I explain that a series of events may each be legal, but aggregate to one transaction and the individual steps are ignored.
In this case, it goes beyond that, by accepting $5/mo you are already outside the tax code. As littleadv noted, you can't work ...
12
In almost all cases, gifts from employers are considered taxable compensation, based on the employer-employee nature of the relationship. Furthermore, cash gifts are always considered to be intended as wages, regardless of how you receive the money.
Furthermore, regardless of whether you expect to receive anything in return (such as contractual ...
22
Am I right to say that no tax needs to be given for the annual ~$130k
USD, since they are considered as annual gift tax exclusion?
Not only that you're wrong, but it also looks like a tax fraud, not just mere avoidance. You'll have hard time proving to any judge or jury that the gifts are "in good faith".
By the way, $5 a month is below minimum wage.
...
0
You have two different operations going on:
Recharacterization: change a contribution from one type of IRA to another type of IRA.
Excess Contribution: Money was contributed that exceed the allowable limits.
They each have of a set of rules regarding amounts, timelines, taxes, and penalties. The excess money can't be recharacterized except during a ...
4
You got it right. It is in part III of the form (form 8829, that is, in its current form). You pay 25% tax on the amounts deducted as depreciation.
That is if you sell at more that your current (= post depreciation) basis.
Talk to your tax adviser about the details. He may be able to help you getting the old forms if you didn't keep the copies, you'll ...
3
The interest rate on overdue income taxes is 5%.
You were approximately six weeks late paying your tax installment. By my calculations, that means you will owe an additional $45.90 in interest charges. That's using the following math: 0.05 * 7956 / 52 * 6
It's possible that interest is calculated from the beginning of the year rather than the due date of ...
1
I am working from India for a US company and as per my knowledge I am
not liable to pay any tax to US govt.
Says who? When the IRS comes knocking to you (or the company that pays you, more likely), what will you pull to show them? Verify with a licensed EA/CPA (licensed in the US, of course) if it is true, and based on what. Generally, income sourced ...
2
In India you would need to pay Income Tax as per the tax bracket. You would need to record your income similar to what Lawyers, Doctors do. Please refer to the related question Indian citizen working from India as freelancer for U.S.-based company. How to report the income & pay tax in India?
0
Just to augment Dilip, the IRS has probably already filed your older returns for you and sent you letters hence your question.
You should definitely talk to an accountant (not a major firm since they will get you to file all years even if you don't need to / shouldn't), but there are some things you should know:
If you were below a certain income ...
1
You need to hire a tax professional and have them sort it out for you properly and advise you on how to proceed next. Don't do it yourself, you're way past the stage when you could. You're out of compliance, and you're right - there are penalties that a professional might know how to mitigate, and maybe even negotiate a waiver with the IRS, depending on the ...
1
Is the business an S-Corp, LLC or Sole Prop? I am going to guess based on the question that it is an LLC that you never closed with the state and you live in a state (NY) that charges a fee for having an LLC in the state in which case you owe those fees to the state.
I am not aware of any taxes on the mere existence of a business by the IRS. I think you are ...
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