Questions tagged [income-tax]

This tag is to be used for any question pertaining to an individual's income taxes. If this tag is used, ideally a country-specific tag should also be specified, to indicate which region a question belongs to, as the answer may differ based on the country.

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35 views

Reduce income tax deduction after being unemployed

The previous month was the first month I have worked this year. I received gross pay of around $3400. However, approximately $500 was deducted for income tax. If I were to continue working for the ...
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IRS Form 8283 when donation is to a split-interest trust

We established a CRUT and donated $100,000 of privately-held securities, with the value determined by a qualified appraiser. Because the CRUT is a split-interest trust, I calculated the applicable tax ...
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Does a delayed refund suggest that an audit is likely?

My US federal tax refund is taking an unusually long time to be issued this year. I e-filed my return 3.5 months ago and the IRS Refund Status page just says it is "still being processed". ...
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0answers
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Can I deduct expenses from rental income on my principal residence without making it not a principal residence?

TLDR: can I still claim 40% of all of these expenses (screenshot from simpletax) on my taxes when renting a portion of my Principal Residence and it still be considered principal residence? and ...
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2answers
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How do I avoid paying tax on a cryptocurrency gain that I have already lost?

I'm not sure if this question belongs here, but I'm super confused about how cryptocurrencies get taxed. I invested $10,000 at the end of 2020. I made about 30 or so short-term trades in 2021 and sold ...
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1answer
73 views

How can I get a copy of a letter / notice from the IRS from 2004?

How can I get a copy of a letter / notice from the IRS from 2004? Or is there a way for me to get a statement from the IRS that I've made a payment on that letter or notice?
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1answer
191 views

tuition paid by grandparents directly to college

My daughter (US citizen) will be going to college here (US) beginning this Fall. My parents (Indian citizens) want to pay her first year tuition expenses direct to the University. The University ...
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3answers
749 views

Do counties in Illinois collect individual income tax (IIT)?

I did a google search on this issue and I didn't find a firm answer to this question. I did find that in Illinois a county will charge property tax (which varies with county) and there is a flat state ...
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US Resident Buy and Sell outide of USA- Do I owe tax other than the income tax?

I am a resident of USA. I purchase goods online from a supplier in the Philippines. My buyer is also based in the Philippines and is responsible for pick up from the supplier. Therefore, the ...
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0answers
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Can Bonus Depreciation offset my W2 income in the year I invest?

I am considering investing through a REIT/apartment syndication. The fund managers are saying that they are able to pass on the bonus depreciation to investors. I did a basic study on what this bonus ...
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Opting out of advanced child tax credit payments - benefits?

Is there any benefit to opting out of the advance payments on the child tax credit (2021)? As far as I can tell, worst case, is you end up with a bigger tax bill next year and maybe an underpayment ...
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Filling w8Ben as an independent contractor India

> 10. Special rates and conditions (if applicable—see instructions): The beneficial owner is claiming the provisions of Article and > paragraph ______________ of the treaty identified on ...
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Section 80D exemption for senior citizen parents partially covered under insurance

I'm a residential Indian filling ITR under the old regime. Can I claim IT exemption under section 80D for medical expenditure that I incurred for my senior citizen parents, for the OPD charges for ...
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42 views

Is a tax deduction possible for tuition fees in Germany?

If I already have a degree, and then pursue a second degree in an unrelated field, do the tuition fees lower my taxable income? What does it depend on? For example, assume that in 2022 I have an ...
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1answer
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Do you pay taxes on “phantom” transactions related to precious metal ETFs held inside a retirement account?

Precious metal ETFs (e.g. GLD) collect expenses from you by selling fractional shares on a month-by-month basis You have to pay taxes on these sales You have to account for fractional shares sold from ...
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1answer
93 views

Calculating the cost basis on a tax free Zero Coupon Bond

A tax free zero coupon bond is issued with a yield to maturity of 3.5%. After some time, an investor buys the bond at 50. ( 50 cents on the dollar ). When he buys the bond, the bond has a yield to ...
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1answer
90 views

Can 80G donation made in spouse name be claimed?

I have paid for a donation from my account to an organization that has 80G exemptions for its donations. However, the donation is made in my wife's name and the receipt has my wife's name. Can I ...
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0answers
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NPS[India] taxation in the US

National Pension Scheme (NPS) is a retirement account in India similar to 401k in US. If someone has a NPS account with money in it, and they become US tax resident, how it will be taxed. One needs ...
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Term For Business Entity Founded With The Sole Purpose Of Holding Non-traditional investment?

I've done some searching but have been unable to find info on what I'm specifically looking for. My guess is there's a specific term for this type of business that I don't know. Suppose I want to ...
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2answers
768 views

IRS 2020 Refund not received

I filed the 2020 1040 by paper (mailed it) in April 2021 and still have not received the refund (Direct Deposit) I tried the Track the Refund site on IRS and provided all the accurate info. The site ...
2
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1answer
122 views

If I am employed by a UK company and change country of residence regularly, will I have to pay income tax anywhere?

I am a salaried employee in a UK company and currently have income tax automatically deducted from my monthly pay in the normal PAYE way. I am considering, covid-19 permitting, of going "digital ...
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0answers
32 views

New York state income taxes for out of state remote worker [duplicate]

I am looking at taking a job offer from a company based in New York. The position is fully remote and I live in Utah. I have been trying to find information on what my state income taxes will look ...
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Does Canada respect the tax-free status of National Savings certificates for residents who left the UK?

I know Canada and the UK have a tax treaty that is designed to prevent double-taxation. But I don't know if it extends to honouring the tax-free status of government-issued savings certificates. ...
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0answers
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IRS filing obligations for non-resident shareholders of a US c-corp [closed]

I'm thinking of forming a micro-sized US c-corp and I have some questions related to the filing obligations. I plan to have two non-resident shareholders on board, one non-resident individual holding ...
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1answer
48 views

Can we apply for Individual Tax Payer Identification(ITIN) for the first time in the out of tax season?

I am new to the US and just arrived here on May 31, but what I need is having ITIN to get credit card, etc. But someone told me you must at least wait until the next year's tax season that will start ...
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0answers
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What would be the tax liability in Korea?

Scenario: Subject is a Spanish citizen (no other nationality). Learns Korean language in South Korea, staying in Korea with a D-4-1 visa (Student visa). The subject is not employee by any company (nor ...
4
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1answer
84 views

If I defer the 2021 child tax credit can I base it on my 2021 income?

The 2021 child tax credit includes payments that the IRS will send from July to December of 2021. The payment is based on the 2020 filing. However I get the impression that it is really based on the ...
3
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1answer
148 views

Where to mail an IRS CP11 notice response?

I received a CP11 notice regarding my Year 2020 tax return and would like to submit a response expressing my disagreement with the assessment. Despite the notice stating I should call to review my ...
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1answer
46 views

Does the amount converted over from traditional to roth-ira count towards the contribution limits for that year?

IRS has contribution limit of $6000 ($7000 for 50+ individuals) for any given year for contribution to IRA account. Say in a given year, a person decides to convert $3000 from his/her traditional IRA ...
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1answer
115 views

How much of my 401(k) should I roll over to a Roth IRA to pay the least taxes?

I am 61 yrs old want and I want to start rolling over my 401K to a Roth-IRA account. How can I figure out how much money I should roll over in order to pay the least taxes? Through a google search, I ...
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2answers
59 views

Is there an upper limit to amount of money a person can contribute to a traditional IRA if he is okay making a non tax deductible contribution?

Consider a person who wants to contribute $50,000 to his traditional IRA account per year. Now I know there is a limit of $6000 for tax deductible amount you can contribute to an IRA every year. But ...
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1answer
30 views

Will a traditional IRA account's capital gains incur annual taxes, if a person's income is above the limit for tax deductible IRA contributions?

Say a person's income is above the limit of making a tax deductible contribution to a traditional IRA account. If he/she still decides to make a contribution of say $6000 per year to a traditional IRA ...
2
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1answer
77 views

Taxes on Payment in lieu of notice (PILON) and salary overlap

Assuming that someone leaves a company for a new role on the day of the payment (both companies pay on the same date monthly), there are two scenarios: The Payment in lieu of notice (PILON) is paid ...
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2answers
61 views

Double taxation between Germany and US for dual citizen

Suppose I am a dual citizen of the US and Germany. Suppose further, that I currently live and work (employed by a german company) in Germany, and this will stay like this for the foreseeable future. A)...
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0answers
32 views

West Virginia Taxpayer aged 61 with IRA distribution from Puerto Rico

I am a permanent resident of West Virginia age 61 unemployed and receiving health and food assistance from the State...thankfully. I have very limited investment income, not enough to pay taxes of ...
4
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3answers
131 views

What income threshold exempts one from filing for income tax

I am 61 years old single with no income (no W2 nor 1099). I would like to roll over some of my 401k into a ROTH IRA. I was wondering if there is an income threshold that exempts one from filing an ...
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1answer
31 views

1040-ES Line: 15. What to put here if I started self-employment in Q2?

I've recently started work as an independent contractor starting in April and I'm trying to calculate my estimated quarterly taxes for Q2. Line 15 on 1040-ES says: "If the first payment you are ...
4
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2answers
99 views

Tax implications of a UK company (owner of my US employer) paying for my rent in the US?

Let me get right to the chase. Situation: My employer offered to pay for my rent, giving me a few options to consider, and I'm not sure of the tax implications for each. Details: I live in Florida and ...
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0answers
34 views

My HRA limit is 20000 per month. Can I use it for a total of only six months instead of 12 months (40000 per month x 6)?

I am from India and a Monthly salaried IT employee. My question is "My HRA limit is 20000 per month. Can I use it for a total of only six months instead of 12 months (40000 per month x 6)?". ...
69
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2answers
12k views

Our friends and we often barter babysitting time with each other. Do we owe taxes?

Our friends and we have an informal agreement that we will babysit eachother's kids when necessary. We don't pay any cash to each other for the service, but we agree to "repay" by providing ...
0
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1answer
34 views

Does Leave Travel Allowance claimed for one calendar year includes the return fare?

Suppose between Sept 20, 2021 and Sept 23, 2021, I travel from Mumbai to Chennai having ticket cost as Rs.6000 and back to Mumbai having ticket cost as Rs.5000. So, while filing LTA for the FY 2021-22 ...
3
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1answer
60 views

Filing jointly, can I pay estimated taxes on behalf of my wife's side work?

Quick background: I have an EFTPS account where I've paid estimated taxes in the past for some side work in programming. I haven't used it in years. My wife recently started a free lance writing gig ...
13
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4answers
4k views

Boyfriend buying a property and girlfriend renting, what are the possible tax write-offs?

Let's assume: Boyfriend (bf) will be purchasing a 1MM condo in San Francisco, CA. Borrowing 750K from the bank. Girlfriend (gf) lives on the property with boyfriend. GF will be paying rent. ...
2
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0answers
37 views

Is telecommuting due to covid valid for taking the home office deduction for W-2 employee for New York State Tax Return?

For W-2 employees, as far as I know, you cannot take the home office deduction for your federal return, if the reason is telecommuting due to covid. It must pass the "convenience of the employer&...
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0answers
22 views

Are state disability benefits taxable in tax year when you were eligible for them, or approved for them, or when benefits were actually paid?

Imagine that someone gave birth on November 5th, 2020. California allows moms to take off up to 8 weeks of disability insurance benefits. Are such state disability insurance benefits taxable in 1) tax ...
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1answer
45 views

Can you declare home office use for New York State return but not Federal?

Due to the 2018 IRS Tax Law, W-2 employees lose out on most work expense deductions including home office deduction, as I understand it. And for this year, you cannot use the home office deduction due ...
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1answer
31 views

Is there a solar tax credit or deduction in California for year 2020?

I can't find info on this anywhere. Bought a new solar power system for my primary residence for $65k in July. I'm using Turbo Tax
2
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1answer
69 views

Income Tax on RSU - Stock crashed 80% during lock period after IPO

My company went IPO last year, and I had about $1 Million worth of RSUs at time of RSU vesting. 22% of the RSU (220K) were sold to cover the federal supplemental income tax. In total, about 43% of the ...
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0answers
23 views

What are the tax rules for non US residents transferring money into the US?

Assume a person has no US affiliated ties, like a residency or citizenship, and they live in another country, and they want to move their life savings into a US based bank. What would be their ...
3
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1answer
61 views

Health Insurance Premium deduction for Husband/Wife LLC

Assume the following situation: My wife and I own a LLC in a community property state. (50/50) We are self-employed and have no employees. Under this arrangrement, business income flows through to ...

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