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0

As per the DTAA the Social Security Tax is not considered. There is no mention of State Tax. As per the definition, only Federal Tax is considered.


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my tax liabilities in India on my stock profit in US You would need to pay tax on the profit in India as well after you have become resident Indian. India and US have a double tax avoidance treaty. Hence if you have already paid tax in US, you can claim benefit and pay balance if any. For example if you US tax liability is 20 USD and Indian liability ...


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Yes, you've summarized it well. You may be able to depreciate your computer, expense some software licenses and may be home office if you qualify, but at this scale of earning - it will probably not cover for the loss of the money you need to pay for the additional SE tax (the employer part of the FICA taxes for W2 employees) and benefits (subsidized health ...


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No, you don't. Rounding errors happen, and if there's no change in the actual tax there's no reason to amend. If all the income was properly reported and the tax was properly calculated - no-one cares if it was rounded up or down on one of the lines. Note for the next time though: Not sure about New York, but Federal taxes are generally rounded to the ...


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The first method is the correct one. You bought an asset worth of $1000 and you put it on your depreciation schedule. What it means is that you get to write off the $1000 over a certain period of time (and not at once, as you do with expenses). But the value you're writing off is the $1000 regardless of how much you've written off already. Assume you ...


1

I'm not a tax advisor, but I've done freelance work, so... If any of your side-business revenue is reported on a 1099, you're now a business owner, which is why Schedule C must be filled out. As a business owner, minimum wage doesn't apply to you. All revenue is income to you, and you owe taxes on the profit, after subtracting legitimate (verifiable) ...


1

If the $5000 is income, then you need to pay income taxes on it. That's simply the way it works. Hourly rate has nothing to do with whether or not you pay taxes. If it helps, try to think of the $5000 as the first $5000 you make for the year. Now it's covered by your standard deduction and you're not paying taxes on it.


1

The main difference between a mutual fund and an ETF are how they are bought and sold (from the investors perspective). An ETF is transacted on the open market. This means you normally can't buy partial shares with your initial investment. Having to transact on the open market also means you pay a market price. The market price is always a little bit ...


4

The service they provided is Triage, which is also what you did. The medical staff at any Hospital/ER/Urgent Care have to decide who gets seen first and what level of care is appropriate for that patient based on the medical situation. In general if the medical care is either beyond the beyond the scope of the Urgent Care, or it is likely to result in an ...


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You report all of your own contributions on line 28 of the Form 1040, you report the matching to your employees (if you have any) on line 19 (pensions and profit sharing plans) of your Schedule C. Deducting your own contributions on Schedule C is not allowed because it affects the SE tax calculation (the 401(k) contributions are not exempt from FICA/SE ...


2

You got a service from the urgent care facility--the evaluation that the problem was beyond their ability to deal with and needed an actual hospital. Just because your daughter was not helped by this judgment does not mean medical work wasn't performed.


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Does your employer offer a 401(k) match? If so, contribute enough to maximize that--it's free money. After that, contribute to an IRA where you can invest in funds with low expenses. After you max that out, if you still have money left over, max out your 401(k) despite the high expenses for the tax advantages. Remember when you leave the company you can roll ...


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Yes, they do. Generally though you'll only see it on one or two reports. With regards to the impact on your credit score. Hard inquiries only stay on your credit for 2 years, after that they fall off. For most credit scores (specifically FICO) they only have an impact for 1 year after their date. If you have a few in the same 30 day period FICO will ...


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You need to run a virus scan on your computers to make sure you do not have a key-logger program running on either. I would also think about designating one old computer to only access your bank accounts and not do anything but that. If your computer is infected then every time you login your credit cards can be compromised.


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See http://www.cra-arc.gc.ca/E/pub/tp/itnews-43/it-news-43-e.pdf. I haven't checked to see if there is anything more recent. The general idea is that Canada will stay out of your IRA, but only if tell them in a timely manner that you actually don't want to be taxed in your ROTH. -JT


2

Is this also true for a sales transaction where the sale terms were completed on paper prior to the date of death but the actual proceeds were not received until after the decedent passed? Yes. That's exactly the case you described in your first paragraph. The cut-off date is the date when the death occurred, any outstanding debt becomes an asset of ...


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You're talking about NQO - non-qualified stock options. Even assuming the whole scheme is going to work, the way NQO are taxed is that the difference between the fair market value and the strike price is considered income to you and is taxed as salary. You'll save nothing, and will add a huge headache and additional costs of IPO and SEC regulations.


2

First thing to do when you notice a credit card fraud is to call the respective banks who issues the credit card and most banks immediately (as far as my experience goes - twice) they will cancel the credit card and issue a new card with different number. Your credit card account will remain the same, no effect on credit score as the account is still ...


1

I think you should consult a professional with experience in 83(b) election and dealing with the problems associated with that. The cost of the mistake can be huge, and you better make sure everything is done properly. For starters, I would look at the copy of the letter you sent to verify that you didn't write the year wrong. I know you checked it twice, ...


1

You're confusing a lot of things here. Company B LLC will have it's sales run under Company A LLC, and cease operating as a separate entity These two are contradicting each other. If B LLC ceases to exist - it is not going to have it's sales run under A LLC, since there will be no sales to run for a non-existent company. What happens is that you merge ...


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As per TransUnion Placing a freeze on your credit report will prevent lenders and others from accessing your Credit Report entirely, which will prevent them from extending credit. With a Security Freeze in place, even you will need to take special steps when you wish to apply for any type of credit. Because of more stringent security ...


0

Foreign stocks tend to be more volatile -- higher risk trades off against higher return potential, always. The better reason for having some money in that area is that, as with bonds, it moves out-of-sync with the US markets and once you pick your preferred distribution, maintaining that balance semi-automatically takes advantage of that to improve your ...


1

Here's the 2009-2014 return of the S&P 500 (SPY) vs. Vanguard FTSE ex-US (VEU) (higher returns bolded) 2009: SPY 26.37% vs. VEU 37.59% 2010: SPY 15.06% vs. VEU 11.81% 2011: SPY 1.89% vs. VEU -14.02% 2012: SPY 15.99% vs. VEU 18.90% 2013: SPY 32.31% vs. VEU 14.18% 2014: SPY 13.46% vs. VEU -4.54% 2015 YTD: SPY 2.49% vs. VEU 5.83% Another argument for ...


4

I went to Morningstar's "Performance" page for FUSEX (Fideltiy's S&P 500 index fund) and used the "compare" tool to compare it with FOSFX and FWWFX, as well as FEMKX (Fidelity Emerging Markets fund). According to the data there, FOSFX outperformed FUSEX in 2012, FEMKX outperformed FUSED in 2010, and FWWFX outperformed FUSEX in both 2010 and 2012. When ...


1

In the US, money talks and bullshit walks. You can skip any credit history requirement if you demonstrate your ability to pay in a very obvious way. Credit history is just a standardized way of weeding out people that cannot reliably pay, instead of having to listen to an individual's excuses about how the bank overdrafted their account five times while they ...


1

Credit is important for many reasons. Establishing credit is an important step and should be no challenge for someone who already has good habits. The same lessons and advice that you would find for a student to establish credit would be applicable to your case as well. Factors that influence credit score, Payment history - good behavior, pay your debts ...


1

Tricky question, basically, you just want to first spread risk around, and then seek abnormal returns after you understand what portions of your portfolio are influenced by (and understand your own investment goals) For a relevant timely example: the German stock exchange and it's equity prices are reaching all time highs, while the Greek asset prices are ...


1

When you start living in US, it doesn't actually matter what was your Credit history in another country. Your Credit History in US is tied to your SSN (Social Security Number), which will be awarded once you are in the country legally and apply for it. Getting an SSN also doesn't guarantee you nothing and you have to build your credit history slowly. ...


2

The prohibition is on working for someone else, not on making money. You would not be an employee or contractor of the app stores, you will also be able to release the app worldwide, and you will sign up to those services based on your current citizenship and banking relationships in your country. As such, I'm going to go with "Yes", to your original ...


1

I think I have an answer. After double checking with a few people, it appears that the correct answer is to input all my income, from all sources during the tax year of 2014. The language means to say that, "for the taxable year, for which I am to be considered a nonresident of NJ, input the amount of income (gross) earned from all sources, inside and ...


2

In a word, yes. You can buy very low cost index ETFs, like VTI, VEA, BND, FBND and rebalance in proportion to your age and risk tolerance. Minimal management and low cost.


0

Unfortunately, that's a call only you can make and whichever route you choose comes with advantages and disadvantages. If you manage your money directly, you may significantly reduce costs (assuming that you don't frequently trade index funds or you use a brokerage like RobinHood) and take advantage of market returns if the indexes perform well. On the ...


2

Report the amounts as they are. If the IRS sends a letter asking why your report doesn't match the reporting on the 1099-MISC, you'll respond with the exact explanation you gave in your question and a copy of the said settlement. That said, I suggest you have a paid professional do that for you, including properly formulating the statements attached to your ...


2

It's not without some consequences ... maybe. You will have to use US dollars to make the purchase and banks often charge 1-2% just to exchange your money. There are ways around this at most, if not all, discount brokers - but it's more complicated. You will possibly be exposed to US estate tax but that has historically been for larger estates. What it ...


9

First of all, the #1 reason NOT to buy shares in a US-domiciled ETF is that you lose too much money on converting your Canadian dollars into US dollars in order to buy it, and again converting back when you sell. So unless you have a source of USD income, or are comfortable using Norbert's Gambit, you should probably instead buy a Canadian ETF that holds US ...


4

There are two possible scenarios, relating to slightly different definitions of 'pension'. The most normal definition of 'pension' is that you are paid a defined amount each week or month by some company, or the government. If so, that is not part of the estate. You won't be able to take it as a lump sum (probably). It isn't affected by whatever your ...


4

The communication between you and your CPA (and EA, as it is also a Federally authorized practitioner) is only privileged in non-criminal matters. If you suspect that you may face a criminal prosecution - you can only discuss it with an attorney. If a tax advice is need - the attorney will hire the tax adviser, not you. All your communication will flow ...


1

In general, scholarship income that you receive that is not used for tuition or books must be included in your gross income and reported as such on your tax return. Scholarship income you receive that is used for those kinds of expenses may be excludable from your gross income. See this IRS information and this related question. I believe that as ...


0

Can said company deposit my salary check directly into my account Yes. Is it legal for me to work as the company's employee It is perfectly legal. Note that your company has to adhere to Indian laws like TDS etc. Hence it makes more sense to have this as a freelance contractor. Do I need to pay both service tax and income tax? Income tax is ...


7

On line 3 of the QDCGT worksheet, as you say, you enter the smaller of your long-term gains and total gains. Assuming you did not have a loss in either category, your long-term gains will be less than both long- and short-term combined, so you will enter long-term gains here. On line 7 of this worksheet, you effectively subtract your long-term gains from ...


5

Since you're a minor (I'm assuming you also live with your parents), you generally don't need to file your own tax return unless you earn quite a lot of money on your own. How much is quite a lot? At least $6200 a year, for earned income only, which in your case it looks like you have. If you have un-earned income (interest/dividends/capital gains) then the ...


1

You continue with this form. The fact that the trade in value is less than market value doesn't mean that you don't have taxable income from the sale. Since you depreciated the car before selling it, you need to compare the trade in value not to the market value, but to your cost basis, which may be lower.


5

First, I would push back some on your premise. Yes investments add some complications to tax, but it needn't be much hassle. As long as you stick to the mainstream -- US-based retail funds, or "normal" stocks and bonds (and ETFs and UITs and such) through a domestic brokerage -- they'll keep the needed records for you. Practically all have done so as a ...


1

You are confused about a couple of terms: filing means that a person/company/university sends a form to the IRS. report means that the information on a form is then included on a another tax form. For example you work for company A: They file a W-2 two ways: one copy to the IRS; another copy to you. You report the numbers on the W-2 when completing ...


2

It looks like these types of companies have to disclose the health of their accounts to CFTC (Commodity Futures Trading Commission). That is the gist I get at least from this article about the traders that lost money due to the Swiss removing the franc’s cap against the euro. The article says about the U.S. retail FOREX brokerage: Most of FXCM’s retail ...


0

The IRA doesn't care so much about gross income as your taxable income. That's where you do the math. Yes, 10% is on the gross withdrawal, and the gross withdrawal also gets added to taxable income. From what your offered, we are probably looking at 28/33% for income tax plus the 10% penalty.


2

Short answer: It doesn't matter - it's all based on percentages anyway. If there are transaction costs (sales commissions on stocks, for example), do it all at once. The taxes owed are based on the entire amount withdrawn, including the 10% tax penalty. Your financial institution will likely offer to withhold 20% for taxes (some give you the choice, others ...


2

I looked at Publication 463 (2014), Travel, Entertainment, Gift, and Car Expenses for examples. I thought this was the mot relevant. No regular place of work. If you have no regular place of work but ordinarily work in the metropolitan area where you live, you can deduct daily transportation costs between home and a temporary work site outside ...


1

Here is some good advice, read your UCO prospectus. It seems to hold 20% of it's value ($600MM out of $3B) via 13800 of the Apr 21st 2015 contracts. (expiring in 30 days) Those will be rolled very quickly into the May contracts at a significant loss of NAV. (based on current oil futures chains) Meaning if crude oil stays exactly the same price, you'd ...


-1

Before anything else, pay down any debt at higher interest rates. Best guaranteed return on investment you can get. What do you plan to use the money for, when, with how much advance planning? How risk-tolerant are you, and how patient are you ? Would you see a dip in an asset's value as lost money or a buying opportunity? A good financial advisor -- and I ...



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