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2

I remember being told that purchases made in the last quarter of the year can't be deducted entirely in that tax year; instead, they have to be depreciated over their expected life span (5 years for computing hardware). Is this true? It is true. In fact - it doesn't matter which quarter you made the purchase in. Computing hardware has to be ...


2

It's not a "withholding tax" it's a "withholding tax amount". That is, they are not taxing you but they are holding back some of your withdrawal and sending it to the government to cover any taxes you will need to pay on the withdrawal. Same as your employer withholds some of your salary and sends it to the government for you. You won't claim it as a ...


2

The withholding tax is considerred income tax that is submitted early. Note that the above withholding tax amounts are only estimates, which you will show on your tax return as taxes already remitted. Taxtips website


4

You don't need to report that gift and neither does she, since it is below the gift exclusion amount of $14,000 per year. There's no need for her to pay gift tax on this gift and you will not owe income tax. She may wish to file a protective gift tax return if she has significant assets and intends to make these gifts to multiple people annually. Filing ...


12

While there are no direct tax issues when a US citizen gifts another US citizen under the 14,000 threshold in a year, but there may be some other issues to be considered. You do not have a job this year. Are there any benefit programs that you participate in that would be impacted by accepting a gift of this size? Is gifting cash to you the best way to ...


23

Your daughter can give you (and also as many other persons as she likes, for that matter) $14K or less each year as a gift without needing to file a Federal gift tax return. She does not have to report the money anywhere on her Federal income tax return or anywhere else. In particular, she does not get to deduct that money in arriving at what is called the ...


0

I am assuming that your spouse is a nonresident alien for tax purposes (the definitions of resident alien are really complicated, but it sounds likely that she is not). In order to file as Married Filing Jointly, both people must be residents for tax purposes. So as your spouse is a nonresident, that means you must file as Married Filing Separately (or Head ...


1

Should he file a tax return as single, married filling jointly, married filling separately, or head of household? You can elect to file as "married filing jointly", but then the spouse will be treated as US tax resident and will be taxed on his/her worldwide income. Otherwise - depending on the circumstances either "married filing separately" or, if ...


0

You can invest into various tax savings options to the extent Rs 1.5 lacs under section 80C. Further if you have an house you can get tax exemption of around Rs 1.5 lacs on interest. There are other benefits under section 80 D of the Income Tax Act. Refer to the Government Website The Professional Tax is Rs 2500/- and cannot be reduced. Typically deducted ...


2

Can I do it without being taxed and/or penalized on the amount going to school loans? No. Any withdrawal from your IRA account which is not re-deposited into another IRA account within 60 days is considered a distribution and is taxable. Unless certain exceptions apply (and repaying school loans isn't one of them), you will also be charged an ...


0

You have to file them both separetly. Both Quebec and Canada income tax are not calculated the same: I have seem some small difference on some amount. That said, either if you have a good accountant or a good income tax software, they will make the right calculation. You really need to fill the right boxes and that is it. Hope that help. Feel free to edit. ...


3

So what should be the tax calculation criteria. Sum all salaries + AVP then calculate tax on that Yes. You need to add all salaries and AVP[I guess you Mean Variable Pay]. Also add any interest or other income you have earned. Then calculate tax. You may have to pay additional tax. Note that you have to pay taxes in advance else you will have to pay a ...


0

Unfortunately this is something that should have been determined prior to the book tour. Your tax advisor or accountant could have assisted you in making sure you collected the documentation you needed. You are going to have to sit down with your advisor with the documentation you have and determine what you can prove.


2

You're most likely required to file in both for 2013 - since you've lived in both. From 2014 and on you're definitely a NY resident (since you're renting a place there and live there), and you may very well continue being NJ resident (since you're essentially continue being domiciled there). I suggest talking to a EA/CPA licensed in NY and NJ to try and see ...


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In the long run, think of your second house as a simple P&L account. There are no special benefits. In a way it can be a good thing initially since you pay a lot in interest and every rupee can be treated as an expense against any revenue (rental).


1

As an accountant, I have to agree with ExpatTaxCPA. If we made the error, our office fixes it free, and even covers the penalty at times (not the interest). If it's due to something the taxpayer failed to give us, or something they misrepresented, it's only fair to charge them for the audit work done.


5

If you are the only contributor to the premiums, you will not owe income taxes on the benefits. Only the portion of the benefits you receive which were paid by your employer are taxable. Source: IRS 'Life Insurance & Disability Insurance Proceeds' Question: I am receiving long-term disability. Is it considered taxable? If you pay the entire ...


0

As JoeTaxpayer has mentioned, please consult a lawyer and CA. In general you would have to pay tax on the profit you make, in the example on this 10% you make less of any expenses to run the business. depending on how you are incorporating the business, there would be an element of service tax apart from corporate tax or income tax.


1

This may be closed as not quite PF, but really "startup" as it's a business question. In general, you should talk to a professional if you have this type of question, specifics like this regarding your tax code. I would expect that as a business, you will use a proper paper trail to show that money, say 1000 units of currency, came in and 900 went out. ...


1

If working in NY - you pay NY taxes. If living in NJ - you pay NJ taxes. If NJ taxes are lower than NY taxes - you lose the difference by paying NY taxes vs paying NJ taxes if you have an option of having the same work and the same salary in NJ. Pretty simple, really. Generally, salaries in NY are a bit higher to compensate for that.


1

Find approximate housing-cost difference, which is likely to swamp the tax differences. Find a cost-of-living measurement you believe for each state and figure appropriate state's sales tax on the non-housing portion of it (numbers can be found on line). Figure out roughly what your state income tax would be (forms on line). Figure city sales tax for each ...


0

I edited my W4 over several years, trying to get rid of my refund. It's a balancing act, just be careful to not owe more than about $1000 each year. They can hit you with a small penalty. It's never been enough to concern me, but it's there. It's also a balancing act if you get a raise, a bonus, any kind of differences in pay...


1

I am not a lawyer, but the big thing to consider would be how you would split the money should either of you decide you want to close the account (or, at least her/his portion of the account). I suspect you'd also need to determine how to split the capital gains/losses for tax purposes. I can't really see any benefit to a joint account, unless you needed ...


6

If you keep the account in your name only and your girlfriend is depositing money into it, then she is in effect making gifts of money to you. If the total amount of such gifts exceeds $14K in 2014, she will need to file a gift tax return (IRS Form 709, due April 15 of the following year, but not included with her Federal tax return; it has to be sent to a ...


2

The IRS only knows what is reported to them on required forms (W-2, 1099, etc.). They don't know: How many dependents you have Your daycare costs Student loan interest Mortgage interest etc...etc...etc... All of this is important to reduce your tax liability. Also, technically you are supposed to report other income that the IRS may not be aware of. ...


4

The IRS does not have a record of all of my tax-deductible donations, expenses on my rental property, or any number of other factors that would affect my return negatively. They do have the option to fill out the 1040EZ online if you are taking the standard deduction, but if you are itemizing, there is no possible way for them to compute this to your best ...


7

However this seems off because I would essentially be purposely filling out a form incorrectly. Note that the only part of the W-4 form that is required to be filled out and given to the employer is the small certificate at the bottom that you tear off. In this part, it only asks you for "Total number of allowances you are claiming". You don't have to ...


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On the back of the W4 is a Deductions and Adjustments worksheet. This worksheet will give you an accurate number to enter on line 5 of your W4.


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This is a frequent problem for anyone with a large amount of deductions, whether it is student loan interest, home mortgage interest, charitable contributions, or anything else. As an employee getting your tax withheld from your check, your options to reduce the amount withheld are limited. The HR department has no control over how much they withhold; the ...



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