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All other things being equal, you might be better off contributing to a IRA that is a brokerage account. You will have lots of flexibility in your investments and there would probably not be fees for the account itself. You might incur commissions for trading and/or owning mutual funds that are charged by the funds themselves. You won't be able to ...


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Retirement accounts often can be invested with pretax money, with the exception of Roth accounts that use post-tax and have tax-free growth if you follow the rules, rather than after tax money as well as provide a shelter so that you aren't having to pay annual taxes on dividends and other possible distributions. Another point would be to consider how much ...


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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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There are publications (the "blue book", available in many libraries) and websites (I believe cars.com has this, no endorsement implied) which can give you the typical prices dealers pay for used cars of a particular make and model, and the typical prices consumers pay to purchase those used cars from the dealers. Sometimes major accessories are also ...


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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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The IRS no longer requires that employers submit all W4 forms, but they can request a W4 for an employee at any time, and putting false information on your W4 is still a punishable offense. I agree that having a return is like giving the Treasury Department an interest-free loan for the year, but unfortunately paying the appropriate amount of withholding ...


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The purpose of the W-4 form is to allow you to adjust the withholding to meet your tax obligations. If you have outside non-wage income (money from tutoring) you will have to fill out the W-4 to have extra taxes withheld. If you have deductions (kids, mortgages, student loan interest) then you need to adjust the form to have less tax taken out. Now if yo ...


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I also received the same request in an email. I called Discover and they told me that they were required to send that out. I am assuming that they are required to send it out in order to adjust our line of credit, but they would not confirm that. They also said that it was optional for us to respond to that request. In other words, we don't have to ...


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You cannot contribute to the HSA in excess to the limit. The "post-tax" contributions "some links" are talking about may be referring to the case where you cannot contribute through your paycheck. In that case - you contribute from your own (after-tax) money, and then claim deduction from your taxes above the line, i.e.: you end up getting the same tax ...


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Assuming the United States. This is a loan and not an investment. You report this as income and will pay your tax rate on the 18% of the money that the borrower pays you (any money paid above what was originally lent) for the year in which it was received. You owe taxes on the income even if the borrower does not send you a Form 1099-INT showing the ...


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Post-86 After tax contributions to a 401k are after tax. The earnings on that money is taxable, but not the contributions. This means: If you invest $0 in pre-tax money in your 401k If you invest $10,000 in after-tax money in your 401k If your investment grows by $5,000 You'll have $15,000 in the 401k and $10,000 is considered after-tax and $5,000 is ...


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You definitely need an estate lawyer and maybe a CPA. My estate lawyer was generally knowledgable about estate tax. The gift tax exclusion is $14,000 per year. Your 529 contributions are considered gifts. There is also something called a generation skipping transfer tax, the details of which I'm not familiar with. The best advice would be dependent ...


2

Here's one source that says "negotiated rate." An HDHP is not allowed to pay for anything except preventive care until you have paid the deductible out of pocket. If the plan has negotiated prices with providers (such as an HMO or PPO), you pay only the negotiated price. However, many employer-provided HDHPs make a contribution to your health ...


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You should probably talk to an estate attorney (a lawyer duly licensed in your State) and a licensed tax adviser (EA/CPA licensed in your State) about this, as this may become tricky. It depends greatly on how the trust is defined and who are the beneficiaries.


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Massachusets does no such thing. The 5.25% tax is only on realized gains. "Unearned" means "doesn't tie to your trade/business", i.e.: is not gained through your personal performance.


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If I get a prepaid debit card for the money I make do I have to report my earnings? How do I go about doing this? Yes you must report this. It doesn't matter if they put it in your bank account, or on a debit card, or cash under the table. You have to report the income. You can count on your employer reporting the income to the IRS. What is the limit I ...


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Amen to what keshlam said. Whole life is sold to make a commission; term insurance is bought to protect your family. Whole life, or term & paying more for option to convert, is a relatively expensive investment. Big commissions, up to 40%. Only worthwhile in unusual tax situations. If you're in one of those, the team of tax consultants and ...


1

Bank-to-Bank wire transfer would be the best option. Dollar is going up nowadays, so if he brought the money not so long ago he might even earn the cost of the transfers back through the difference of the exchange rates. Re the IRS - they don't care. Same goes to the Israeli Tax Authority. What you and your friend need to show, if asked, is the paper trail. ...


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Whole Life really is just an insurance product and an investment product wrapped into a single package. The only advantage is that since you're forced to make payments to maintain the insurance, you're forced to invest. It's really just the "Christmas Club" or payroll-deduction idea, though it tries to claim otherwise. If you're unable to make yourself set ...


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Yes, it will be taxable in the US. You will report your worldwide income, and will be able to take credit for any Indian tax paid. However, the portions that are tax-free in India will be fully taxable for you in the US. Keep in mind, in addition to the taxes, the FBAR requirements and the FATCA forms you may need to be filing as well. Failure to file ...


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You will need to file a US income tax return, and declare all income world-wide. Whether this results in any tax owed depends on your particular circumstances, and the effect of any tax treaties between the US and India. There are additional requirements for the filing of information on the amounts in foreign accounts held by "US tax persons". Depending ...


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If you have an S-Corp with several shareholders - you probably also have a tax adviser who suggested using S-Corp to begin with. Why aren't you asking him/her this question? If you decided to use S-Corp for multiple shareholders without a professional guiding you - then you're not a very smart person. That said, and reminding you that: 1. Free advice on ...


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With a $40,000 payment there is a 100% chance that the owner will be claiming this as a business expense on their taxes. The IRS and the state will definitely know about it, and the risk of interest and penalties if it is not claimed as income make the best course of action to see a tax adviser. Because taxes will not be taken out by the property owner, ...


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It is ordinary income to you. You should probably talk to a California licensed CRTP/EA/CPA, but I doubt they'll say anything different. You would probably ask them whether you can treat some of it as a refund of rent paid, but I personally wouldn't feel comfortable with that.


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Sales tax permits come from the state in which your business is operating. You need a business license first for them to issue you one. US sales taxes are collected by the business and remitted to the government, you need the permit in order to do this. A bigger question is whether it's legal for you to engage in business in the first place. What is your ...


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Yes, as long as you are not filing "Married, Filing Separately," you can deduct student loan interest expense as an adjustment to income. Since your MAGI is < $60k, you can deduct the lesser of $2,500 or the actual interest expense. http://www.irs.gov/taxtopics/tc456.html http://www.irs.gov/publications/p970/ch04.html You didn't mention how you might ...


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I would consult a tax professional for specific help. On my own research, I believe that you could. I know that when I made payments when I was in school for my undergraduate, I made payments on the interest. I believe that I was even told by my financial aid office that I could deduct the interest that I paid. I made not much money so I wasn't anywhere ...


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Many investment companies are also offering target retirement date portfolios to invest in. They manage reducing the risk over time so you don't have to worry about it if you choose not to.


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Yes, provided you're not over the IRA deductibility limit as well. – JoeTaxpayer♦ Aug 4 at 18:02 Note that if you get refunded for excess contributions, it usually happens in the following year, in which case it doesn't affect the year where these contributions occured -- rather, the refund counts as taxable income in the year you received the refund. – ...


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There are a couple of things that are missing from the analysis. The PPO plans feature a copay for doctors visits and prescriptions. For example, if you need to see your doctor, under the PPO plans, you would pay $20 out-of-pocket. Under the HDHP plan, you would pay the negotiated price for a doctors visit. We don't know right now what this is, but ...


1

Would I be taxed at my personal income tax rate upon withdrawal of the funds for this loan from my professionally managed, balanced 401k (not Roth funds)? Yes. This is a regular distribution. Why wouldn't you be taxed? What's gifting has to do with anything? If taxable, this would move me to the next higher tax bracket. Depending on your other ...


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Either approach will put a strain on your friendship, unless you are willing to treat it as a gift which may or may not be returned rather than a loan. I agree that paying it direct to the dealer (or giving her a check that is made out to the dealer) avoids the risk of the money getting sidetracked.


4

This really depends on your usage. I went with the High Dedux and HSA option this year... and discovered that until I'd hit the deductable, I didn't get any of the prescription drug discounts. If you're on an expensive maintenance med, that can be serious sticker shock (difference of 20 times!). Of course the HD plan also has lower premiums which more or ...


2

From your viewpoint you paying the dealer directly is better. You know that the check went to the dealer, and was used to purchase a car. If you give the check to your friend they may say I can't find the car I want this week, so I will purchase it next week but first let me by groceries and a new suit. I will replace the funds after my next paycheck. Next ...


2

Some reimbursements are taxable and some are not, that depends on the type of reimbursement and the reporting required. If the reimbursement is from an accountable plan and for qualified expenses - it is not taxable. Otherwise it is. See the relevant section of IRS Publication 521 for details.


0

If you can afford it, I would give her the money. It is likely that she will not pay you back and then you would lose a friend. This friend cannot afford the car. If you want to be a really good friend, offer different options like buying a junker until she can save up for a nicer car. Based on your comment, I am gathering the following: You can't ...


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Much information comes from this source. Your tags say you are in New York. New York security deposit law requires that you store the security deposit in a banking institution. Additionally, the deposit must be stored in a separate account, not your own personal account. If the lease is for six months or more, the money must be stored in an interest-bearing ...


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According to the New York Attorney General's Tenants' Rights Guide: Landlords, regardless of the number of units in the building, must treat the deposits as trust funds belonging to their tenants and they may not co-mingle deposits with their own money. Landlords of buildings with six or more apartments must put all security deposits in New York bank ...


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https://twofactorauth.org A nice list of all sorts of services and their multi-factor auth status, the site also enables you to bug a bank or service via Twitter to implement 2FA.


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In addition to the Foreign Tax Credit, which @DilipSarwate mentioned, if you stay out of the U.S. for more than 330 days of the year, you can also use the Foreign Earned Income Exclusion, with which you can exclude your first ~$95K of income from U.S. taxes. In any case, you will still have to file U.S. tax returns, regardless of whether you actually have ...


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If you are a telecommuter and in good terms with your employer, then all you need is contact your employer and explain your situation. Ask them for a short letter that indicates: "1. they require you to work from a privately rented office (or from a home office for those who prefer working from home), 2. this is one of the terms of your employment, and, 3. ...


0

You are not locked in to this percentage of new money forever, you may change it every paycheck. Pick a split that makes you feel comfortable. Then revisit how you allocate new money every year. If congress makes changes to the brackets; or your compensation changes; or the rules regarding retirement funds changes: adjust accordingly. Note that the Roth ...


9

Since you are a US citizen, you have to pay US income tax on your world-wide income, but you do get to deduct (or take a tax credit for) taxes paid to other countries from the taxes you owe to the US. Tax treaties also affect such matters. Also watch out for reporting requirements for foreign accounts that you have, or will likely have once you start ...


3

Pre-edit, Pete mentioned that he feels real estate agents would (a) like you to buy as much house as you afford, and (b) would love to show you three houses and have you choose one. As a real estate agent myself, I believe his warnings were understated. As with any industry, there are good and bad people. Agents are paid to move houses. If the median US ...


3

First of all...never accept a loan where you are upside down. Ever. Next, contact your state attorney general and see if they broke any laws regarding the sale of your trade-in before they actually finished with the "sale." If you can make a valid argument that you did not think the transaction was completed then the dealership may be on the hook to ...


3

You are right about the 3%. It is itemized out. They charge you a foreign currency conversion fee which is about 3%.So for example, you are in Europe and purchase something for 100 Euros which is $128.32 in today's rate, your statement should show:- 1.) Whatever you purchased - $128.32 2.) Foreign Currency conversion fee - $3.85 ( 3% of $128.32) Please ...


3

There was an uproar about this several years ago in the US--that banks were not adequately disclosing foreign transaction fees. They are now listed separately on the credit card statements. I have personally seen it on 4 different credit cards resulting from foreign travel and purchases from foreign merchants (ABEbooks, AmazonUK, etc.). I was also included ...


5

At this stage, I would think about education. You can attend open houses, and often times real estate agents and bankers put on seminars for first time home buyers. Borrow books from the library and I would watch some HGTV. Many of the shows are entertaining and quite educational. Secondly you may want to get your finances in order. Make and stick to ...


4

Annuity calculation formulas can be found here. http://en.wikipedia.org/wiki/Annuity_(finance_theory). In addition, as suggested in the comments, there are many sites that have calculators. Having said that, a simple financial mechanism that is followed by many is to invest a portion of the fund in regular income instruments, for example Govt. or corporate ...


2

The only time to stop saving money for retirement is when you have enough money to retire tomorrow. Not all of your "retirement savings" need to be in a 401k, it is just better if you can. Be sure to get as much as you can from the employer matching program. Unfortunately some employer matching programs discourage you from putting in too much. I've been ...



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