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.
3,409
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Unrelated Business Taxable Income (UBTI) exceeding limit in IRA
I've kept an MLP stock in an IRA for several years not wanting to deal with the K-1 tax complexities. However it looks like this year my Unrelated Business Taxable Income (UBTI) will exceed the $1000 ...
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How to calculate imputed interest on options trades?
All interest income (including imputed interest) must go on 1040 line 2 taxable interest. For example, if the interest rate is 5%, then I can buy 100 T-Bills for $95 each. After 1 year I get $100 per ...
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Income tax question for small freelancer-type online LLC
I have a small start-up company in the USA providing educational services. Our users provide the services, and we make money by taking a 20% commission on all transactions.
We use third-party services ...
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Can I deduct expenses from interest income?
I have $5,000 of interest income, $5,000 of mortgage interest, another $5,000 of capital losses, and claim the standard deduction. What is the most reliable way to cancel out the interest income for ...
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Foreign tax credit carryover is less than foreign tax refund
I have foreign tax credit carryover for $14,000 in 2022 US tax return. In 2023 I will be getting a foreign tax refund of $21,000. What happens when I file 2023 tax return? Will I have $7000 tax due?
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66
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Trying to understand 1-person LLC taxes (paid myself as W-2)
I'm trying to prepare my 2022 taxes (using TurboTax Deluxe, if you care).
In the beginning of 2022, I created a 1-person LLC.
I set myself up as a W-2 employee of my LLC and paid myself on payroll. I ...
- 430
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What can be done to mitigate rental income tax liability once depreciation is fully exhausted?
US standard fixed rate mortgage on a rental property. If rent is $X/month and all in mortgage is also $X/month, it would suck to need to pay income tax on $X x 12 for the year, when it all went ...
- 2,846
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3
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113
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Reporting wage income not on W2
I was on a postdoctoral trainee fellowship for which I don't have a W2. My pay stub for that month (December 2022, pay stub dated at the end of December) indicates non-zero values for gross pay, net ...
- 21
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How do I calculate my deductions (income, national insurance, pension & student loan) for an income of 1 week?
I left Company 1 on the 22nd of September, 2022
My salary at Company 1 was £41,000.
My P45 states that my:
Total pay to date (at the time) was: £19,741.76
Total tax to date (at the time) was: £2,690....
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US Taxes: Increase Supplemental Income vs extra withholding?
From my company I am getting RSUs and the default 22% federal income tax is covered automatically by selling some of the vested shares. However, 22% is not sufficient to cover my tax liability.
We ...
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Will not receive 1095-A for federal taxes
I bought a health care plan on a state exchange but do not receive a subsidy and so did not receive a 1095-A form. However, on my federal income taxes, it is asking "Did you have health insurance ...
- 153
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753
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How can I withdraw money from Inherited IRA and credit it to last year?
I'm in a situation where I have a significant amount of money in an IRA that I need to withdraw over the next several years and I want to minimize the tax penalty.
I have some leftover tax credits and ...
- 159
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How to compute cost basis over multiple purchases, for sale of a fraction of the assets?
(The example below is, of course, unrealistically simple, just for the sake of illustration.)
Suppose that I made the following purchases and sales of shares of some stock X:
| 01/15/2021 | bought | ...
- 197
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Does someone going to college in another state need to file Virginia Taxes?
Our son (19) goes to college in MA while we live in VA. This year for the first time we did not include him as a dependent in our 1040. During 2022 he had an internship & research ...
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Declaring foreign interest in 1040 and FBAR
I am a foreign national (and a resident alien for tax year 2022) working in the United States. I am on a J1 Research Scholar visa. I have received W2 for my salary from an US University and I have a ...
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What counts as different sources of income?
I'm a freelance writer (in US), but I also do some freelance video editing, programming, and virtual assistance along the side. I'm wondering if each of this counts as a "separate source of ...
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When to claim check dated in one year but received the next
A check bears a December 2023 issue date. I receive it in the mail in January 2024 and deposit it in January 2024. I operate this business on a cash accounting basis (not accrual), so what do I do ...
- 1,445
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Required to fill out Form 7203 per TurboTax for S-Corp K-1?
I am using TurboTax Premier to do my taxes for 2022. I have a K-1 from my S-Corp, and TurboTax is telling me I need to fill out form 7023 for this K-1, a form I have never had to fill out before. I ...
- 3,491
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IRS Notice LTR 105 C Disallowed claim
I paper filed an amendment for my 2020 tax return which was processed with Single status. Because unavailability of ITIN, I could not include my spouse in the 2020 tax filing.
ITIN for a spouse was ...
- 115
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2
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Withholding as single and filing as married jointly: question after W4 changed?
My wife and I went to a tax return preparation agency to do our 2022 taxes. This was the first time we were married for a full tax year. We're in the USA. We owed a very large amount, and the tax ...
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How to deduct a loss from an investment that went bankrupt?
We had money in a BlockFi account, which went bankrupt at the end of 2022. How can we deduct that loss on our 2022 tax return?
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Unmarried couple, DCFSA without claiming the child?
We are an unmarried couple with a young toddler living in an extended household - filing separate tax returns. The child can qualify as a dependent for either of us since we both live with him ...
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If the highest federal marginal tax rate is 33% and the highest Ontario provincial marginal tax rate is 13.16%, why can marginal rate by 53.36%?
The highest marginal federal tax rate in Canada is 33% and the highest marginal provincial tax rate in Ontario is 13.16% (source: Government of Canada tax rates webpage)
Adding these together, the ...
3
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144
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HSA and Concierge Medicine
I currently have a high deductible healthcare plan and max out my HSA. I am looking for a primary care doctor and have decided to use a concierge doctor. On the doctor's website it says:
Insurance ...
- 2,113
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35
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How I get federal tax extension granted proof when Form 4868 was mailed?
I mailed Form 4868 Extension of Time To File U.S. Individual Income Tax Return. How does one get a proof whether the extension was granted? Does IRS send any letter?
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Can I combine lines on my 1099-B if the basis and dates are the same?
Suppose I have multiple 1099s, and there are several transactions with the same basis per share, proceeds per share, acquisition date, and disposition date. Can I combine them on form 8949?
For ...
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38
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Wash Sale Basis Adjustment When There Are More Replacement Shares
Consider the following scenario:
On Jan 1 I bought 10 shares of XYZ for $10 each on Jan 1, and sold them for $8 each on Jan 2, resulting in a loss of $20 ($2/share)
On Jan 10 (less than 30 days ...
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Does every US state set its standard deduction to match the federal one? Why?
The United States' 2017 Tax Cuts and Jobs Act nearly doubled the U.S. federal income tax's standard deduction from its 2017 level, starting in 2018. My state also increased its income tax standard ...
- 777
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75
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Independent contractor taxes with J1 visa
I have a J-1 visa as Research Scholar to pursue full-time research at an American university.
The visa is sponsored by the university and expires on June 2023.
I am planning to move back to Europe ...
- 121
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3
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406
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better understanding wash sale rule
This is for USA tax purposes.
I find wash sale rule simultaneously a simple and complicated concept. I kind of understand overall idea, but miss the details. Surprisingly, I couldn't find many ...
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120
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Can a single file tax as "married file jointly" to take advantage of more standard deductions?
Can a single file tax as "married file jointly" to take advantage of double the standard deductions? Why or why not?
- 443
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How to handle a hobby that makes income in US
Suppose a US hobby artist consistently has more expenses than income, so the activity does not qualify as a business. But suppose the hobby has income from selling paintings. How should the artist ...
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What does "Paid/Adjusted in 2023 for 2022" mean on a 1099-DIV?
On a 1099-DIV, what does this column heading mean?
Paid/Adjusted in 2023 for 2022
Does it refer to dividends that were earned (e.g. the record date came in 2022) but not paid?
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Form 1099-S issued in conjunction with 1031 like-kind exchange
During 2022, I performed a 1031 like-kind exchange, in which I sold a piece of undeveloped land, and used the proceeds towards purchase of a vacation rental house. (This is a way of deferring capital-...
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Tax Reporting for Teen Freelancer using PayPal and Outsourcing Work: Necessary Steps?
I have a 16-year-old doing some freelancing as a side gig. I'm pretty certain that the PayPal income does not meet the $20k/200 threshold. There has not been any 1099 forms from PayPal. Should any ...
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241
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Can Uber drivers deduct daily car washes on their income tax?
Imagine a person who drives for Uber every day. Before driving passengers, he takes his car to the car wash to be washed. Is the cost of the car wash deductible on the person's income tax?
I am ...
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I'm self employed and I 1099 someone on my Schedule C. This person also happens to watch my kids as daycare, can I double dip the expense?
I am self employed and I have a worker that I issue a 1099. This person helps me around and picks up my kids and watch them as childcare service. I know I can deduct the 1099 income as an expense on ...
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60
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IRS CP45 letter with $400 Reduction in Estimated Payment Credit
I received a letter last April with identifier CP45 from IRS after filing for tax year 2022. I understand this is regarding the IRS indicating they won't apply a tax overpayment to this year's (2023) ...
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768
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Underreporting expenses to get social security credits
My wife has a hobby that brings her some income and that's her only income. The money she gets from it usually is spent on buying more tools for that hobby or for materials. Most of the time those ...
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Is the original wager included in sports gambling winnings for income tax purposes?
The IRS states that all gambling winnings are fully taxable, regardless of whether they are reported to you by the gaming operator on a W-2G form. However, in the case of sports betting, the cases ...
- 1,861
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How to adjust cost basis for multiple wash sales for 1099
How do I adjust the cost basis for my trades that incurred a wash sale on my 1099.
Do I total all of the wash sales and add to the cost basis of the last trade? see below image
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How to handle income tax for weird insurance claim scenario
About 5 years ago, a dependent attended a treatment facility in another state. All of the insurance checks were sent to me and I forward them on, since the facility was out of network. We thought this ...
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73
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Nonresident alien working remotely for a US company - will I have problems with IRS?
I' not a US citizen. I work a US company remotely while living in a different country. according to the US laws, I am a nonresident alien of the US and my income source is from a non-US source. Thus, ...
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S Corp Stock basis
My wife is self employed as an S Corp. The stock and debt basis forms are asking about stock basis for the year. If she owned 100% of the S-Corp at the beginning and end of the year and did not ...
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69
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What is the impact of IRS Form 8332 on filing status?
Assuming a US person has one dependent child, is filing as Head-of-Household and an income over the limit for claiming any child credit. Supposedly, he could use IRS Form-8332 for transferring the ...
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1
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62
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Are Colorado TABOR refunds taxable as federal income, if a state sales tax deduction was taken previously?
Colorado has a law called TABOR that, in years when the state government has more revenue than predicted, allows every taxpayer to claim a refund. This is done with a line item on the state income ...
- 6,891
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Do I need to file a tax return if I am a nonfiler college student?
I am a college student and since I started college, I put down as a non-filer on FAFSA. This year I am about to turn 24 and I keep receiving a 1098-t, but I don't have any income nor have I ever had a ...
- 11
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How to calculate tax deduction for first year of opening an LLC when funding it from your salary?
I need help understanding how it works when one opens an LLC in the United States, funds its activity from a job he or she does. For example the individual earns 200,000 dollars in a day job and pays ...
- 113
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94
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Can I choose to be a resident alien tax purposes in the USA and waive my tax treaty rights?
I've recently arrived in California under a J-1 visa from Spain. Most people under these visas file as an non-resident for tax purposes in the US. My understanding is this means means they are paid ...
- 113
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New job tax code
I had a summer internship last July (2022). And about to start a graduate job this coming September (2023). I need to choose which of the below statements best suits me. I've chosen the statement A ...
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