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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1answer
32 views

Is it more tax efficient to use a website that does the logistics, manufacturing and selling for you?

Is it more tax efficient to use a website that does the logistics, manufacturing and selling for you like Merch By Amazon, or is it more tax efficient to create your own store with Shopify, do your ...
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2answers
89 views

Can someone withhold $0 in federal income tax?

Is a US citizen allowed to have no federal income tax withheld on their paycheck? Assume that the person has a moderate-income, full-time job, but their child tax credits equaled more than their taxes ...
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0answers
79 views

How much money can a self-employed person put in his IRA

Consider a self-employed person (over 55) who wants to contribute to an IRA. His income from self employment is 8000. That is, on line 31 of his Schedule C, the number 8000 appears. He cannot put into ...
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107 views

Germany - How are Acc ETFs taxed after the first year of investing? (confused about how I can apply the calculation formula)

I just started investing in 2021 and upon reading how to calculate the tax I owe for my accumulating ETF, I realised I don't know how to apply the explanations found on the Internet to my situation. ...
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37 views

How does US Royalty Trust taxation work?

I'm talking about the US Oil Royalty Trust, such as BPT, SBR,...which are traded on NYSE stock exchange. As far as I know, unit holders typically receive form 1099-MISCs at the end of the year to file ...
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1answer
30 views

Separate bank account / finances from Schedule C sole-proprietorship for single member "disregarded entity" LLC

If having a Schedule C business and then starting a single member LLC (i.e. which the IRS views as a disregarded entity for tax purposes), should a separate bank account / expense tracking need to be ...
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1answer
39 views

Claiming Educational expenses for my spouse - married filing jointly

My spouse is preparing for the CPA and I am wondering if I can claim her course related expenses while filing 2021 taxes? Q1. In 2021, there were only exam related and books related expenses. Are ...
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1answer
3k views

Can I pay my partner’s income tax (Canada)

I net approx. twice what my spouse does. At income tax time can I pay her income tax for her so she has more money to invest in her retirement savings account (RRSP)? I know that if I were to give her ...
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2answers
91 views

When a stock held in an IRA takes a downturn, is that a good time to move that asset to a Roth IRA?

I have some traditional IRA funds invested in QuantumScape, and it's down quite a bit since the initial purchase. I want to continue to have some holdings in the company. Would this be a good time to ...
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1answer
69 views

Can home office deduction be taken for a portion of the area

Self employed, provide services for clients in an area of my home in the United States of America. Most of that area is not exclusively used, but there are storage areas as well as closets that are ...
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2answers
1k views

Is it correct for employer to not take out federal taxes with 2 dependents?

My wife and I each make $50k in the USA at the same employer. I noticed on her pay stubs the line for federal taxes said "$0", while mine is closer to $70, so we contacted her employer. They ...
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1answer
732 views

Can I deduct driving expenses when I am driving for Uber?

A person is driving for Uber. He gets in his car and turns on the Uber app. After some time, he gets a rider. He then drives to pick up the rider. After that, he gets another rider. He repeats this ...
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1answer
90 views

How does let-to-rent tax work

I’d like to let out my home in London for moving out to the country where I’d like to rent a bigger house. Will I have to pay tax on the rental income without claiming the cost of the new rent?
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1answer
93 views

When do I report managed rental income?

In October 2021 I acquired a short-term-rental investment property in California for which I use a management company. They handle all booking management and collection, take a commission, then they ...
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1answer
36 views

How do I report interest income whose non-resident tax was not withheld?

I'm a former resident of Canada who kept their Canadian bank account upon leaving Canada several years ago. It seems that my bank either did not receive or did not act upon my change of address ...
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0answers
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How to interpret the 50Lakh limit for presumptive taxation?

If someone in India has total income of 60Lakhs in FY 2021 as under: 20 Lakhs from Salary 20 Lakhs from Profession (after quitting salaried job mid-year) 20 Lakhs from capital gains can he/she avail ...
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1answer
68 views

How can I get credited for stock losses I took in 2018?

I was employed by a company from February 2011 - September 2013. When my employment terminated in September of 2013, I purchased stock of the company for $1100 In 2018 the company was liquidated and ...
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0answers
50 views

How much you have to pay taxes for selling gold in USA? [duplicate]

Imagine you don't trust the stock market nor the banks so you keep the money in your house. Then you want to protect yourself from inflation and you buy gold. Then one day you want to sell a ...
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1answer
72 views

Will moving from the UK abroad mean I don't have to pay tax on my property income below my personal allowance?

I have a property in Scotland where I will earn under £10k on when I rent it out (currently I live in it) If I live in the UK at the time, and make say £40k I will earn a total of £50k with the ...
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2answers
73 views

W2 form box 16 (state income) meaning

I work for a company based in NY, who pay my salary into a US bank account. I live in Japan, and all my work is done remotely from Japan. The address in my company HR records is a PO Box in New Jersey....
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0answers
46 views

Tax on cheques that are yet to be encashed

I have a cheque issued with a date 20/01/2021 and validity of 3 months. I forgot to encash it and now the cheque is expired. I want to know if I need to identify this as a source on income for the ...
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1answer
53 views

Doing contracting work in a foreign country, who are taxes owed?

I have a question about taxes in relation to the following: A British citizen has a work permit in a foreign country (Ukraine). They work full time here. They also do contracting work remotely for an ...
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1answer
68 views

Are short term capital gains considered earned income?

I'm trying to figure out the implications of my income situation on my eligibility for the Earned Income Tax Credit. My understanding is: that short-term capital gains are taxed at the same rate as &...
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3answers
88 views

Do dividend taxes affect how much a stock price will fall on the ex-dividend date?

In theory, when a company pays out $1 in cash dividends per share, its stock price will fall by $1 due to the cash dividend. Does this relationship change when investors have to pay taxes on the ...
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1answer
234 views

Sold Calif. house for more than we paid, but moved to more expensive Calif. house. Do we owe tax?

Bought house [A] in May 2019 for $590k. In 2021, bought house [B] for $915k in July and sold house [A] for $754k in Dec. Moved from A to B july/aug 2021. UPDATED 1/15/2022... Both houses were our ...
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1answer
226 views

Why are the deductions so high on my payslip

My base salary is approximately £110,000 and I also get an annual bonus of approximately £30,000 paid in January. This December my employer gave out a flat bonus amount of £750 grossed up, so I was ...
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2answers
64 views

End of year Tax for S-Corp holding January payroll

To my understanding of S-Corps in the US, at the end of the year all money left in the corporate account is "profit." This money is distributed to the owners who pay income taxes on it. ...
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5answers
236 views

What current tax bracket is used for Roth 401(k)? What happens if it's incorrect?

When contributing to a Roth 401(k), you get taxed on it immediately. But we know that, in general, your company won't know your exact tax rate and brackets; it'll only have an approximation—that's why ...
2
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1answer
61 views

Two IRAs and RMDs

An investor, who is over 75, has two different IRAs. If the first IRA has an RMD of $4000 and the second IRA has an RMD of $6000, can he satisfy both RMDs by taking out $10,000 from the first IRA? I ...
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4answers
2k views

Minimizing taxes on dividends

I own stocks and ETFs in my taxable brokerage account at Vanguard, and these securities generate taxable dividend income every year, which is a problem. How do I fix it? It was a bad idea on my part: ...
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1answer
57 views

SIPP pension withdrawal tax obligations (UK HMRC)

When investing in a SIPP you get tax relief. How much depends on whether you are a basic or higher rate tax payer. For this post, I am focussing on basic rate payer. My understanding is that when you ...
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1answer
46 views

Is the higher income child benefit tax charge based on accrued or received payments?

People in the UK who earn over a certain threshold have to repay Child Benefit they or their partner received. Although Child Benefit is advertised as a weekly rate, it is actually paid ever four ...
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2answers
284 views

can I retroactively make a Roth contribution based on an amended 2020 return?

In 2020, wife and I filed separately. She was unable to make an IRA contribution (a deductible one, at least) due to being highly-paid and covered by a retirement program at work, and I was unable, ...
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1answer
56 views

Calculate total NET payment with overtime hours in a partial month

I am trying to learn how to calculate the NET payment for a partial month and the overtime (net and gross) based on some random payments and facts I found from the past. I got stuck with a specific ...
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1answer
87 views

Clarification of income tax rules for farm staking rewards (UK)

In the UK we have to pay Income Tax on crypto farm staking rewards. I'm unsure as to at which point I'm legally obliged to pay income tax on staking rewards. Is it: As the rewards clock up on my DeFi ...
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2answers
279 views

Capital gains tax on car trade in with appreciated value?

For US tax resident If car is traded in for a higher value car and the trade in value of the car is higher than the purchase price of the car, considering long term (>1yr)? Will there be any ...
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0answers
157 views

I'm a nonresident alien who won and claimed a $50 giveaway through the internet before I realized this could give me a headache, please help

This might be a silly question but: I think I'm not obliged to file a tax report since my income from a U.S. source is only $50 (please correct me if I'm wrong). But what about paying the actual tax (...
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1answer
34 views

amending return from MFS to MFJ to reduce IRMAA Medicare surcharge

My wife and I filed separate returns in 2020 (MFS), because her situation was very complex (with some inheritance and such) and she wanted to have a CPA do it, and it was also one of these unusual ...
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1answer
69 views

SAFE Notes and taxes

If you are an advisor or a software developer and the company that you advise/consult for, pays you 10K USD, then you pay tax on the 10K received eventually. But if you chose to opt for 10K USD worth ...
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3answers
3k views

Give third party check to charitable org?

I got a small stipend as a check for a focus group thing, $125. I don't want to deal with the taxes, etc. Can I just endorse the check, hand it to, say, the food bank, and pretend I never saw that ...
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1answer
32 views

If you are doing an 83(b) early exercise, would there be any tax difference between incentive stock options and non-qualified stock options?

Let's say one is being given employee stock options with a relatively low exercise price, such that it makes sense to do an 83(b) early exercise. In that case, would it matter if they are incentive ...
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2answers
256 views

Is there no tax free way to shelter your savings from depreciation due to inflation like converting to any other unaffected foreign currency?

As I understand it, currency appreciation is treated as taxable income. However, if the currency you've converted to or any other currency you convert to isn't really appreciating at all and instead ...
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1answer
111 views

In the UK, from where does your employer take the money to put it into your pension scheme?

I have been reading about the UK workplace pensions schemes but I don't understand them very well. What I have read is that you can choose an amount of money, which is taken from your gross salary, ...
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2answers
33 views

How do non-refundable tax credits combine with fully refundable tax credits

I am considering purchasing a solar system for my house. I didn't do it last year, because I projected my income tax liability to be less than $1k after the child tax credit due to the fact that I ...
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0answers
36 views

Managing Income to Facilitate Taking Tax-free Capital Gains

Regarding Capital Gains Tax in U.S.: I am retired, and my only income is what I think is called "passive", e.g. RMDs, dividends, interest, and realized capital gains. My understanding is ...
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0answers
29 views

Have a HDLC health insurance with a $4000 benefit going into a HSA. Just found out I am not eligible for the HSA. How to rectify

Did not know I was not eligible for HSA as I have had Medicare for several years. The $4000 dollars the company put into the account has been used as my wife had major surgery. There is a $3000 ...
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0answers
41 views

Backdoor Roth with contributions from previous years?

Say an individual maxed out their IRA contribution for 10 years running, and each year was not able to take a deduction on their IRA contributions because their income was above the limit. Could that ...
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1answer
189 views

How does the IRS define non-compliance?

How does the IRS define non-compliance? If an individual taxpayer makes a typo of $1 on a tax form, does the IRS consider that person to be non-compliant? Is there a scope of actions that the word ...
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2answers
133 views

What is the advantage of making charitable contributions (CCs) from one's IRA over just writing checks?

From time to time, I see an enthusiastic tip about how neat it is to make one's charitable contributions from one's IRA, in lieu of taking all or a part of one's RMD. I don't see the point. The ...
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2answers
153 views

Problem with the tax code on my first job

Hi I have a yearly income of 30000£ in UK, this is my first job and my tax code is 1210 L. I didn't get taxed for the first month. Could anybody please let me know whether I need to change tax code to ...

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