Tag Info

New answers tagged

0

Yes, you can still file your amended return. The statute tolls with the late filing. Per 1040x instructions: File Form 1040X only after you have filed your original return. Generally, for a credit or refund, you must file Form 1040X within 3 years (including extensions) after the date you filed your original return or within 2 years after the date you ...


0

This taxation guide may be helpful in sorting out some of your questions. I'm not entirely versatile with UK tax, so my answer will stay broad. I think the answer may be to consult a professional advisor. You may become non-resident but remain UK domiciled. Everybody has exactly one domicile and it is essentially their permanent home (the place where ...


2

As a practical matter, you can ignore it. As a legal matter, it's complicated but you can arguably ignore it. The general rule under IRC §61 is an incredibly broad conception of income, subject to specific carve-outs. If they're paying you a dollar to go grab food, then that's income - same as the tip you pay the pizza guy. But as with all tips, it's ...


0

Because (I assume) that any amount you end up ahead is small you do not have to declare it. In fact the IRS deals with this sort of thing around "de minimis" fringe benefits. http://www.irs.gov/Government-Entities/Federal,-State-&-Local-Governments/De-Minimis-Fringe-Benefits I would assume the situation you described fits in this regulation.


1

There are penalties for failure to file and penalties for failure to pay tax. The penalties for both are based on the amount of tax due. So you would owe % penalties of zero, otherwise meaning no penalties at all. The IRS on late 1040 penalties: Here are eight important points about penalties for filing or paying late. A failure-to-file ...


2

I'm going to answer this question for US taxpayers. It depends whether you sell your primary residence within 2 years of selling the vacant land next to your home. If you do not, then this is just a sale of land at the capital gains rate. If you do sell your residence, then you may be able to exclude the land sale as part of the same sale (even if it was ...


1

The 4868 Instructions are ambiguous but Pub 17 explains you do not need to file: How to get the automatic extension. You can get the automatic extension by: Using IRS e-file (electronic filing), or Filing a paper form. E-file options. There are two ways you can use e-file to get an extension of time to file. Complete Form 4868, ...


1

I would say not. Filings and payments are not equal. One can file without paying, and one can pay without filing. They are two separate acts.


2

If you sell a stock, with no distributions, then your gain is taxable under §1001. But not all realized gains will be recognized as taxable. And some gains which are arguably not realized, will be recognized as taxable. The stock is usually a capital asset for investors, who will generate capital gains under §1(h), but dealers, traders, and hedgers will ...


0

I think the answer you are looking for is: You are not taxed on the original basis (purchase cost) of your investment. If you pay $30 a share, and sell at $35, the $5 per share gain is taxable at time of sale. But the $30 basis cost doesn't enter into tax calculations at all. (So it's important to keep good records on your investments and how much you ...


1

If you receive dividends on an investment, those are taxed.


1

No, not really. This depends on the situation and the taxing jurisdiction. Different countries have different laws, and some countries have different laws for different situations. For example, in the US, some investments will be taxed as you described, others will be taxed as "mark to market", i.e.: based on the FMV difference between the end of the year ...


2

What was your total tax in 2013? If you had less tax liability last year than you expect to have this year (i.e. less than or around $25K in income), you could just use that number. From Publication 505: General rule. The total amount you must pay is the smaller of: 90% of your total expected tax for 2014, or 100% of the total tax shown ...


1

The amount earned is taxable. It needs to shown as income from other sources. Although the last date for paying Advance tax is over [15 March], there is still time to pay Self-Assessment tax till 15 June. If the tax amount due is less than 10,000/- there is no penalty. If the tax is more than Rs 10,000/- there is penalty at the rate of 1% per month from ...


1

I can only answer about the U.S. For question 2, I believe the answer is no. If you are a non-resident alien for tax purposes, then only income connected to the U.S. is reported as income on the tax return. Unless there were any non-deductible contributions to your pre-tax IRAs, when you convert to Roth IRA, the entire amount of the conversion is added to ...


-2

LOL. You don't need it to MAKE the claim, you need it to survive the audit! Seriously, if it's cash donation, in the US, your check or credit card records should be enough as long as you can show there is no quid pro quo. The problem is when you donate equipment and someone at the charity has to value it (not you).


4

Yes, you need the receipt to make the claim. If you are filing online you don't normally send the receipts, but Revenue Canada can ask for them, and if you don't have them you can be in trouble - maybe not prosecution, but certainly some extra attention the next few times you file. What you can do is file without the claim, and then if it is worthwhile ...


2

@Spig You are correct that the Custodian should NOT be reporting administrative fees as a normal distribution. Fees should be excluded from distribution reporting entirely. Continue to contact them until they confirm that they are posting a corrected 1099-SA or you receive one.


0

Tax-exempt interest (and dividends attributable to tax-exempt interest) is required to be reported on Form 1040 line 8b (or the analogous line of Form 1040A). While it is not directly taxed, it does come into play in the calculation of taxable income and various credits. For example, tax-exempt interest is counted when determining the portion of Social ...


9

They will not send a bill, though there's a chance they will eventually send an accusatory letter. You must proactively pay your taxes. The simplest route is to send a check to each taxing authority with the respective full amounts due. I wouldn't bother calling them. You could also file amended returns with each containing the correct information. As a ...


0

It sounds like they want to enter you into a contract in which they are allowed to charge a flat fee for filing contingent on money saving results from a tax review service, paid in full. Like those who answered before I have no legal experience. IRS Circular 230 defines the ethics for tax practitioners and the definition of a tax practitioner is broad ...


2

This is a legal issue, or possibly an ethical issue, and not really a finance issue. And I am not a lawyer. But for what it's worth: Did you sign a written contract with H&R Block? If so, then the terms of that contract would govern. If you signed a contract saying that you agree to file your taxes through them if they meet such-and-such conditions, and ...


3

The obligation is contractual, so you need to read the contract to answer your question. However, since you paid for the service provided, I see no way they can force you buy any other service from them. They cannot file your tax returns without your explicit consent (on a form dedicated to that, dated and having the numbers matching the return filed - not ...


0

It only matters for purposes of the dependent, so if you are clearly at 50%, then you don't need to calculate this cost. If it is close to not being 50%, then you will have to allocate between your sister and mother. To calculate support costs, you can of course include the costs incurred for transportation, per Pub 17 p 34. If you and your sister have an ...


1

Well, I can see you must've done some treaty analysis already, but I can't help out unless I start from zero. It will repeat the conclusions your school accountants already reached, but I can't always orient myself if I jump in halfway. So let's start with the US-Canada Income Tax Convention, as amended. Article XV - Dependent Personal Services. This ...


2

I don't see how allowing usage of your vehicle is less support than giving money to buy their own vehicle. If that's the only vehicle your mother has - then you're supporting her. Quantifying that support may be difficult though, but if you are providing her all of her needs - it doesn't matter. If she does have income of her own, I do not think that you ...


2

No, you cannot. See the IRS instructions: Generally, you can claim the deduction if all of the following requirements are met. Your filing status is any filing status except married filing separately. No one else is claiming an exemption for you on his or her tax return. You are legally obligated to pay interest on a qualified student loan. ...


1

If you're claiming treaty exclusion, you should attach form 8833 to your tax return to explain your position. It should also be disclosed on schedule OI item L of your 1040NR. Remember that State income taxes are independent of the US tax treaties and many States don't accept the treaty exclusions. So while you may be able to exclude it for Federal tax ...


1

If you don't have private health insurance, and one of you is earning little, you can also inform the insrance company to get a free family insurance. btw, the examples with 5000 and 10000 don't make sense unless you know if it is per month or per year ;)


6

The Finanzamt is in charge of the tax class (you can apply for a change using this form: http://www.formulare-bfinv.de/ffw/action/invoke.do?id=034003 ) and will notify the citizen office and your employer of your current status (might be a good idea to check with your employer anyway). I don't think it's relevant for health insurance, nor should it be for ...


1

•According to this website: If NRI return to India with the intention of permanently residing in India, the assets brought by him will be exempt. Also, the money and the assets acquired from the money, brought by NRI within one year after his return, will be exempt. This exemption is available to NRI for a period of seven years after his return to India. ...


1

There is a limit on how many years you can claim treaty benefits, and when you're on H1b - you're resident for tax purposes (except for the first year where you can usually choose not to be). If you're a non-resident - you can always itemize, I do not know how "the treaty would give you an itemized deduction of $6100". What the Indo-US treaty may be able to ...


1

Yes, use a separate Form 8829 for each home used for business during the year. The top of 8829 includes that exact instruction.


6

From your question it seems that you're not entirely sure what these laws are. Let me clear this out for you and everyone else: What is FATCA Foreign Accounts Tax Compliance Act. There are many resources about this law, but I suggest starting with these: IRS FATCA page. Wikipedia FATCA article. In short, this act includes various provisions that add ...


2

You received K-1 for the States in which the LLC was operating and had income from. You should check if your personal income from these states (income reported to you on the K-1s) puts you above the filing threshold in these states - if so then yes, you should file a tax return there. You would probably be filing non-resident tax return only for the income ...


1

I don't have anything definitive, but in general positions in a company are not affected materially by what is called a corporate action. "Corp Actions" can really be anything that affects the details of a stock. Common examples are a ticker change, or exchange change, IPO (ie a new ticker), doing a split, or merging with another ticker. All of these events ...


1

You will need to look at your W-2 forms. You should have two forms one from company A, and one from Company B. Company A should specify two states (Maine and Pennsylvania) for state income and taxes. Keep your pay check stubs, especially the ones that bracket the time you moved. This may been needed to document exactly how much you earned in each state. ...


3

I generally agree with NL7's answer (and +1ed it), but it is somewhat vague and I want to clarify some points more specifically to what you asked. My wife and I can only file separate returns because that is a restriction on dual-status aliens. We need to equally split all of our community income, deductions, etc because we live in CA. Should my ...


1

I'm not sure how exactly the entries in H&R Block Online work, but you should be able to select the relevant State for each item of income. Check that you marked every income item properly - Main-sourced should be marked with ME, Pennsylvania-sourced should be marked with PA. If you mark your income as "US" or leave it empty, it will be assumed to be ...


1

The FSA money is still spendable, but the deduction may be phased out unless both incomes are high enough. The self-employed spouse can use the Publication 334 "optional method" in case of a net loss:


0

Normally, yes, you would have to pay. If you are in the US, or a citizen of the US, then IRC Sec. 61 would levy tax on all income. Even if you find money on the ground, that will generally be taxable income (the treasure trove doctrine). If you are paying foreign income taxes, the US may allow credit.


2

Income code 09 is dividends, so yes - it is the same as line 1 of the US form 1099-DIV. 1a or 1b however depends on whether the requirements for qualified dividends are met. If they're met - its 1b, if not - 1a. These are treated and taxed differently. See here on what are the qualification requirements. Note that Canada has a tax treaty with the US making ...


3

If you receive educational assistance benefits from your employer under an educational assistance program, you can exclude up to $5,250 of those benefits each year. This means your employer should not include those bene- fits with your wages, tips, and other compensation shown in box 1 of your Form W-2. This also means that you do not have to include the ...


2

In the US, you can deduct this as a "bad debt". Since it's an investment, it is a personal bad debt, and as such it has to be totally unrecoverable. Personal bad debts are deducted as short term capital losses using form 8949. See more information, and links to the relevant forms and instructions, here on the IRS site. I missed a crucial word in your ...


6

Yes, you do. Depending on your country's laws and regulations, since you're not an employee but a self employed, you're likely to be required to file some kind of a tax return with your country's tax authority, and pay the income taxes on the money you earn. You'll have to tell us more about the situation, at least let us know what country you're in, for ...


1

These unclaimed wages were presumably yours for the taking in Year X when employer paid your other wages. Maybe this is just about uncashed paychecks. In that case, they would have appeared on your W-2 for that year. If you filed your return including that W-2 income, then this is likely not new income. This would be a constructive receipt evaluation. ...


1

You should probably talk to a professional tax adviser. This doesn't seem to be a common situation. From the top of my head, without being a lawyer or a tax professional, I think of it like this: The income is for year 200..., and should have been taxed then. You constructively received it then, and not claimed it. You probably had withholding from this ...


2

You are correct that as dual-status, you cannot file jointly. However, you and your wife can also file jointly and be treated as resident aliens the whole year if you want. (This is a little off-topic, but it is the usual thing to do in your situation.) Once you are dual-status by using the first-year choice, then you can either Choose Resident Alien Status ...


4

First, it is not strictly necessary to file your W-2s at all. Millions of people who e-file are not including any documents at all. The IRS already receives millions of information reports keyed to SSNs and EINs, including W2s and 1099s. So you can safely file photocopies without fear of incident. Second, your spouse should report the total liability she ...


4

Capital gain distribution is not capital gain on sale of stock. If you have stock sales (Schedule D) you should be filing 1040, not 1040A. Capital gain distributions are distributions from mutual funds/ETFs that are attributed to capital gains of the funds (you may not have actually received the distribution, but you still may have gain attributed to you). ...



Top 50 recent answers are included