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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.

0
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1answer
80 views

How to get money back from tax filing in US?

I'm on a student visa in the MA, US. This year(2019) it was my first time filing for tax as I got the part-time job on-campus in my university. I submitted the tax form to a person who came to my ...
4
votes
1answer
86 views

Do I have to pay my tax balance while my amended return is being processed?

I forgot to included a sizable deduction when I filed my original return, but I discovered it and filed an amended return before April 15. The original return showed me owing tax but with the amended ...
2
votes
1answer
111 views
+50

How does Massachusetts tax selling US Treasury Bills before maturity?

If I buy a 4-week US Treasury Bill at auction and hold it to maturity, the interest I earn is state-tax-free. Just to put a number on it (even though I know rates aren't actually that high right now), ...
46
votes
9answers
9k views

What do I need to do, tax-wise, for a sudden windfall?

I had stock options in a company which was recently sold to a private investment firm. As a result, my options were converted into a single large sum ( > $100,000) and delivered via wire transfer into ...
1
vote
1answer
65 views

Declaring income when self-employed

As described here, I earn extra money (around $7000 per year) from a second job, in which I am running a business as a sole trader. Due to the nature of the work, I am mostly paid in cash, and deposit ...
2
votes
1answer
68 views

Student loan tax deductions when married filing jointly in United States

My spouse and I received a chunk of cash that we would like to use to pay off student loan debt. The cash is not enough to pay off both of our loans. If we simply put the cash towards the highest ...
5
votes
0answers
62 views

What, specifically, causes the necessity to revise a brokerage 1099, and why are revisions so common?

We've had two questions about revised 1099s causing the OPs' tax liabilities to change after they had filed. One of them is here; the other was a duplicate. We've had this happen to us regularly. We ...
1
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2answers
130 views

Is this a way around the Wash Sale Rule?

This question is prompted by my answer to the question about wash sales. I'm not going to repeat everything in the question or my answer. The question had a simple answer: technically Maybe but as a ...
0
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0answers
7 views

Calculating nonresident credit for 2016 Ohio Schedule of Credits

I wanted to double check I'm doing this correctly on the 2016 Ohio Schedule of Credits form. I didn't do 2016 state taxes for Ohio, yet, which is why I ask. On line 26 I entered some number. On line ...
10
votes
1answer
800 views

Are UK pensions taxed twice?

I, like many, have a workplace pension. I pay taxes through PAYE and file a self assessment covering all other income. My understanding is that your personal pension pot is 25% tax free then you pay ...
4
votes
2answers
485 views

Why doesn't the UK allow paying income tax as a couple, like the USA?

This is possibly an unanswerable question, but I'm curious as to why the UK doesn't have the concept of paying income tax as a couple, the way the USA does? It occurred to me a few days ago that, ...
-1
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1answer
64 views

What is Tax Return document and where to search for it ONLINE? [closed]

I am wondering whether so called "Tax Return" document for X time period has any alternative definition or form code (form id number)? If yes, what is it? I am trying to find it online for wanted Inc ...
5
votes
0answers
100 views

Donating winning lottery ticket to 501(c)3 Private Foundation: cost-basis deduction + full tax free redemption for foundation?

US 501(c)3 Private Foundations are typically controlled by the primary donator, so that is a nice perk, but in exchange for that perk I realize the tax deductions for donating are significantly ...
2
votes
1answer
319 views

What is the need for progressive tax rates? [closed]

I learnt that progressive tax rates are used in order to be fair (i.e. collect more from people earning more and lesser from people earning less) but, even if the same percentage of income is ...
1
vote
3answers
152 views

Do employers withhold the correct amount for higher tax brackets?

I'm for the first time making a pretty large sum of money that puts some of my income in the 24% federal tax bracket (though my effective tax rate- fica/fed/state is around 30%) I just got my first ...
4
votes
1answer
306 views

How to rent a home that I own outright for maximum benefits?

Suppose, I have a home that I want to rent, and it is paid off and valued at about $350K. I am currently living in this home. Should I sell this home to a LLC ( This LLC to be formed and owned by me),...
3
votes
1answer
69 views

401k / Foreign Tax Credit

I am resident in the UK. My Wife is also resident in the UK, but is a US citizen. I'm 40 years old. We file a joint US tax return each year, and we file 1116 against all of my UK earnings. I have ...
2
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0answers
43 views

Tax on inherited property [duplicate]

I am USA citizen and I want to sell my inherited property in India. If I bring that money to USA, do I need to pay taxes in USA?
0
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4answers
187 views

What do we know about elementary financial education at highly ranked schools at the pre-college and early college levels in the US?

Several answers and comments have postulated ignorance of the most basic financial features, for example, a total misapprehension of "marginal tax rate". See, for example, the comments under the ...
1
vote
1answer
150 views

Should I rent out a home I own outright or one with a mortgage?

If I have two homes of equal value ($300K each) and one is paid off and other has a mortgage balance of $235K. I'd like to rent one of those out. Which one should give me the most advantages with ...
1
vote
1answer
128 views

Realize losses and gains at convenient time

Suppose I am long-term invested in some stocks or etfs. Consider the following two situations: 1) stock market is high, my personal income from work is low. Is it a good idea to sell (part of) my ...
2
votes
1answer
83 views

Remote state taxes

I live in Florida and I work remotely to a New York office and I am being paid thru their payroll not 1099. The employer has been deducting NY state tax and I know Florida does not have state tax. I ...
12
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3answers
4k views

Capital gains on stocks sold to take initial investment off the table

Suppose I have invested $100K in a stock that was trading at $100 per share. The stock has gone up by 10 percent and is now at $110. I sold 909 units at $110, i.e. 909*$110 ≈ $100K, which is ...
3
votes
0answers
75 views

Foreign Earned Income Exclusion when working for a US company remotely

I'm a US citizen who lives and works in California. I've been looking at a possibility of working remotely and living abroad. My understanding is that when it comes to state taxes, you pay income tax ...
2
votes
0answers
61 views

Married filing jointly, withholding number does not match actual tax savings

I am getting married this year (2019). My wife will not be working or bringing in any wage. Beginning in 2020, I plan to submit a new w-4 to specify a withholding amount, with the goal of having a ...
0
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0answers
32 views

List of states that issue/generate K-1s

Where can I find a list of all states that issue state-based K-1s? For instance, I know that New York can issue an IT-204-IP, but what about a state such as Wyoming? Pennsylvania is another state ...
1
vote
0answers
33 views

Canada Income Tax benefits if family is living outside of Canada

I am working in Toronto, Canada under Work permit. My family is living outside Canada. I am fully taking care of their expenses. Can I get any income tax benefits for the money I am sending to them? ...
2
votes
1answer
90 views

Understanding how the german tax system works [duplicate]

I hope that you can help me understand how the German tax system works. I recently found a job in Berlin with a yearly gross salary of 68000. I am married (we are both Spanish) but my husband is ...
2
votes
3answers
116 views

Money received from USA

My son completed his MS in the USA after taking an education loan from an Indian national bank. He has started earning in USA, paying taxes as per USA rules. He is planning to send Rs. $5000.00 per ...
6
votes
1answer
262 views

Is supporting a charity through specialty license plates tax-deductible?

In Massachusetts, one can get a license plate which supports particular charitable organizations. At renewal (every two years), these cost an additional $40 in registration fees, all of which gets ...
1
vote
1answer
75 views

Medical expense deduction when there is no income

If medical expenses exceed your income, is there a mechanism by which you can receive money back when you file your taxes? What impact would trying to claim the Earned Income Tax Credit have on this ...
1
vote
0answers
33 views

Income tax filing for married couple with separate addresses in Canada

I am a resident in Ontario and have just got married. Can I file joint taxes with my wife even though we live on separate properties?
3
votes
0answers
61 views

Tax return on income less than 8000 USD from royalties

I am a U.S. Nonresident Alien (graduate student in Seattle, WA). I am married, but my wife is not in US. In 2018, I earned ~8,000 USD in royalties. That's my total US earnings for 2018. I have not ...
3
votes
1answer
130 views

Can I hire a CPA after already filing and paying my taxes if I want to see if there were any mistakes?

When I filed my taxes earlier this year, I was surprised to be owing the IRS over $10,000. But, I did exercise a bunch of ISOs without holding them, and apparently my request to change my ...
3
votes
1answer
90 views

HSA Based Income Tax Optimization Strategy

A hypothetical individual living in the USA held a high deductible healthcare plan (HDHP) in 2017, 2018, and in 2019. She maxed out her HSA contributions in 2017 and 2018 but did not make any ...
4
votes
1answer
122 views

Tax implications of dividend vs salary

I'm recently self employed. My accountant advised the total amount of tax I'll pay (combined business and personal) is the same whether I pay myself 100% dividend or 100% salary and the only deciding ...
2
votes
0answers
117 views

Does passing an IRS audit with flying colors affect in any way the probability of an audit in a later year?

I am asking this out of curiosity; we will not change our good behavior on tax reporting based on this answer! Several years ago, we had a thorough audit on our federal income tax return (US). The ...
1
vote
0answers
34 views

Made a mistake reporting total income on T1 tax forms

This is a bit embarrassing but apparently, I made a mistake on my income tax return. In particular, the "total income field". In my first tax return(2017), I thought this was "monthly income", but ...
0
votes
1answer
89 views

Do I have to pay tax on Capital Gained on primary property?

I am a Canadian citizen. I have been working in a company in Mississauga Ontario since 2016. Around this timeframe my dad was diagnosed with illness so he added me on to his property in Markham ...
37
votes
3answers
10k views

How do I deal with an erroneously large refund?

Alright, it's a weird complaint, I know. But I just checked on the status of my refund on the IRS Refund Status website, and the IRS had corrected upward the refund I filed for by a lot. Based on the ...
1
vote
1answer
96 views

Credits, Refunds & Reimbursements made prior to April 15th for Prior Year HSA Qual Disbursements

Apr '19: I've recently worked w/ my HSA trustee/custodian (my CU) to correctly code HSA reimbursements transactions in early 2018 for HSA Qualified Distributions in 2017. Same for 2019/2018. So we ...
3
votes
1answer
49 views

Do I need an ABN for self-employment?

I work as a private tutor in addition to my full-time job in the public sector. I know that I will need to include any additional income on my tax return since I will need to pay an extra tax. Do I ...
2
votes
1answer
102 views

If I intend to earn on the side doing different category of things should I do it as an individual or as a small business?

If I have a few areas of expertise (that can't fit a classification of services/products) and I'd like to make use of those and provide products or services based on those, should I do it as an ...
2
votes
2answers
190 views

Am I required to amend my tax return if I overpaid my taxes?

Long story short: I got a corrected 1099-DIV after filing my taxes. After going through the calculation, it appears that correcting the return would net me an extra $13 refund, i.e. I overpaid my ...
0
votes
1answer
63 views

IRS e-file Error Messaging

The following is the error code sent back saying they were unable to process my return due to these error: "Taxpayer TIN in the Return Header must not be the same as a TIN of a previously accepted ...
2
votes
2answers
108 views

German Nationality, working for US company but living in Germany

I studied in the USA for 4 years and started working as a Software engineer in the USA. Now I was wondering if I could work full time remote from Germany for the same US company. After some research ...
2
votes
1answer
111 views

Can one deduct lawyer consult fee less than $1000 for ex-employer's threat letter related to confidentiality in 2018 taxes?

Someone I know paid around $1000 last year to consult lawyers regarding a threatening letter from a former employer related to company confidential information where they threatened lawsuit and ...
4
votes
0answers
30 views

What, exactly, makes an “unrelated business” unrelated in the case of junior partnerships held inside IRAs?

My question is concerning the unrelated business income tax on partnership interests inside a Roth IRA. Specifically, I own common stock in a company that's technically classified as a Limited ...
22
votes
6answers
6k views

Is the Standard Deduction better than Itemized when both are the same amount?

For 2018 the standard deduction is $12,000 for individuals, $24,000 per household. If someone's itemized deductions equals the standard deduction, or is very close, which one is better to take? For ...
2
votes
1answer
68 views

Dealing with an incorrectly filed tax return

Situation I had one company (in another state that I have used for years) file my taxes but when they had finished and sent us the results in the mail we noticed they had filed Married, filed jointly ...