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
28 views

Do I need to exchange my EU income (Euros) to GBP to get taxed in the UK?

I live in the UK and will start working as a contractor for an EU company soon and I am very new to this process. The company will pay me monthly in Euros, am I obligated exchange them to pounds? I ...
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Is certificate issued is part of IAS or IFRS [closed]

Mr. D is distributor of products of a company C. D lifts products from C as distributor and sells to retailers(say R) at a price set by C. D gets commission from C on such dealings. Of this ...
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1answer
160 views

I contributed to my and my spouse's Roth IRA when she was unemployed. Now she has a job and we will exceed the income limit. What to do?

Back in January 2021, my spouse was unemployed and our joint income for 2021 was (expected to be) less than $198,000. Thanks to that, I contributed $6,000 to my own Roth IRA and $6,000 to the Spousal ...
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49 views

Contract beneficiary: who pays income tax?

Ashley and company X have reached an agreement. In the agreement, she agrees to lend some money to company X, and company X repays in some number of years. The agreement specifies that all interest ...
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1answer
57 views

Can I claim a tax credit for child born in October for that calendar year?

Our new child was born recently (in October) and I am wondering how the tax situation going to be while filing my 2021 taxes in 2022. I am the only one working and my wife doesn't work. Am I eligible ...
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1answer
86 views

How would this trade be taxed?

I am wondering about the tax implications for the following scenario: Say I am domiciled in the USA and have some stocks, which I think will go down vs USD. Rather than sell them and buy back later (...
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0answers
32 views

Germany - Nebenbeschäftigung under 450 EUR classified as Steuerklasse 6 instead of Minijob all the time. Retroactively fixable?

I started a second employment in November 2019, with a monthly pay below 450 Euros, and I don't have any other second employments. I'm now doing my tax declarations, and I have just realized that all ...
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2answers
48 views

Question on depreciating capital improvements made prior to sale of rental housing

Imagine this scenarior: Year 2018 - Purchase duplex for $1M. Begin taking depreciation deduction for the home (not land) value. Year 2019 - Various repairs $25,000 Year 2019 - Capital Improvement $25,...
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1answer
84 views

How much must one pay tax in Canada if received income from Switzerland?

I am a Canadian Citizen, who lived and worked in Switzerland for a full year. During that time, my only source of income was the company I was working for there. Swiss government deducted a particular ...
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0answers
48 views

What tax do I pay when I close a limited company?

I used to be an IT contractor for many years. With recent IR35 changes, I have decided to take up a permanent/FTC job. Over the past year my contract has been under IR35, so I am paying paye tax etc. ...
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1answer
27 views

Do MLPs report identifiable information about unit holders to federal or state governments?

Unit holders of MLPs receive a schedule K-1 form to use in tax filing. Often these partnerships operate in many states, and you'll also receive a state specific k-1 form. For example, Enterprise ...
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1answer
66 views

Working remotely for a Japanese company as a non-resident, from Italy

I will start remote work for a Japanese company from Italy. I am non-Japanese nationality residing outside of Japan. Am I subject to the flat non-resident tax of 20.42%? The company said I will start ...
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1answer
41 views

Claim of Tax Treaty Benefits of W-8BEN for New Zealand resident

I'm starting full-time remote employment with a US company soon, and they asked me to fill up the W-8BEN form. So what should I fill up on the part of Claim of Tax Treaty Benefits? I found that NZ has ...
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1answer
53 views

Recharacterized 2 years of Roth IRA Contributions - how much to invest through Backdoor?

I have mistakenly been contributing to a Roth IRA for 2020 and 2021 while my adjusted gross income (AGI) exceeded the 120k limit. Therefore, I called Vanguard to recharacterize my contributions to my ...
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1answer
81 views

Live in an EU country and pay taxes in your home country(non-EU)?

I live and work in Ireland. Can I pay my income tax in my home country which is a non-EU country? I've read all of these: Is it possible to work in a country and pay taxes in another within the EU? ...
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3answers
6k views

Am I comparing take-home pay correctly?

I have two offers in the US at the moment. One at 153k and one at 175k. Single filer. annual gross fed tax retained % take-home income $153,000 0.24 0.76 $116,280 $175,000 0.32 0.68 $119,000 While ...
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1answer
256 views

ETF's, Capital Gains and Taxes

Suppose that an ETF (that holds stock) sells a stock at a profit. It is my understanding that profit must be distributed to the share holders as the form of a dividend. Once distributed, it would ...
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2answers
455 views

Does overpaying estimated taxes lead to loss of non-refundable tax credit?

Say: My total fed tax liability is 60K. I've made estimated payments of 65K. (keeping withholdings out of picture here for simplicity) I'll expect a tax refund of 5K. I also installed solar panels and ...
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0answers
17 views

What is the meaning of "to the extent attributable to contributions" in IRS Publication 519?

In IRS Publication 519 (Tax Guide for Aliens), in a section about Personal Service Income for pensions, is the following text (emphasis mine): Pensions. If you performed personal services in the ...
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2answers
370 views

Can I pay a previous quarter's estimated taxes with current quarter?

I've never done estimated taxes before and I found out today is the last day for the June 1 - August 31 period to pay estimated taxes. I went to the IRS site and saw how I can do it but there is ...
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1answer
47 views

Can a company with a non-citizen/not green card holder board member taxed as an S-Corp?

If a company has 2 or 3 board members that one of them isn't a US citizen nor green card holder, is it possible for this company to be considered as a S-Corp in the tax season? Or at least citizen/...
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0answers
72 views

What are the tax consequences of the borrower defaulting in securities lending?

I recently agreed to lend out some of my shares to my brokerage. They deposit collateral in a bank account, and the balance is adjusted daily based on the changing value of the shares borrowed. My ...
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1answer
58 views

Paying Local Taxes in Pennsylvania when working remote for a company in a different state

I live in the state of Pennsylvania and work from home full time for a company in Virginia. I'm having my employer take out local Taxes based on where I live in Pennsylvania. Is this correct? Do I ...
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2answers
76 views

Do state and city taxes get pulled out concurrently?

I'm trying to figure out if I should accept a job offer in NYC. Here's tax bracket information for NYC. Here's federal tax information. I'm trying to figure out how much of what I'm being paid I'll be ...
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1answer
103 views

How to reconstruct a W2 for prior year when no access to payroll system

My accountant died in August last year, and his estate executor and I have no way to get into his payroll system. I know it's overdue, but is there any way to build a W2 for my one employee based on ...
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1answer
64 views

Do I need to file a tax return if my only income was from dividends and I am a foreigner?

I am not a US person for tax purposes. I do however own stocks in the US and therefore am subject to a dividend tax rate of 30% (1). If the total amount of my dividends (my total taxable income) was ...
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1answer
67 views

How does capital gains tax work on a year when you move from one state to another?

I recently moved across the country (about 3 months ago) and was wondering if I am able to sell any of my equity without a huge tax penalty. I definitely acquired the stocks long before I moved (more ...
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1answer
65 views

How to figure basis for XOM (ExxonMobil) shares when XON (Exxon) was bought in 1985

I bought Exxon (XON) in March of 1985, 39.6649 shares @ 49.35/share with reinvestment of dividend income. I'm attempting to determine my basis of 100 shares deposited with Fidelity in 1992. I was ...
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2answers
64 views

Electing Cobra with HDHP after layoff

I have researched that if a COBRA plan is a HDHP, one can continue to contribute to their HSA. How would one contribute to HSA pre-tax if laid-off? Or Would the HSA contributions be deducted on tax-...
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0answers
56 views

How will Washington State Long Term Care tax affect workforce joining in the future

Washington state is planning to bring in a new Long Term Care tax that is going to be 0.58% of the total income. To opt out, tax payers need to buy a private policy before 2021/11/01 and then apply to ...
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0answers
33 views

How to correct mistake on CA 540 NR?

I recently received a letter saying that I owe the state of California money because I did not submit form 3853. My understanding is that this is the form I should be submitting if I do not have ...
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3answers
8k views

If my account only sells crypto, will I get taxed?

Will I get taxed if I do this? Purchase $1000 USDT on Binance Transfer to a crypto exchange outside the U.S., or transfer to a wallet address and use decentralized exchange. Buy bitcoin, earned $1000,...
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5answers
463 views

Why are taxes so complicated if they really want to be paid?

I'm now 36 years old. In spite of really trying, numerous times, I have never been able to feel as if I even "vaguely" grasp the basic tax concepts for my country (Sweden) or any other for ...
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1answer
114 views

Where does "state tax" come into the picture in Sweden?

Having never had anyone clearly explain this to me, I'm trying to figure out how much taxes the government wants me to pay. In particular, I'm confused about the concept of a separate "state tax&...
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1answer
65 views

As a Non-US freelancer, do I need to pay tax in the USA for money earned outside USA?

I'm a Bangladeshi citizen, will go to USA for my PhD few days later on a student VISA (F1). I have <1000 USD in my account of a freelancing site that I plan on withdrawing after going to USA. The ...
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4answers
353 views

How to pay taxes if I have no money? [closed]

My question refers to the US. Suppose I live in a village and I get vegetables from my neighbors, either as a gift or for services I do for them. I consume all the vegetables. I live off these ...
3
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1answer
143 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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0answers
17 views

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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0answers
58 views

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". ...
3
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0answers
48 views

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 ...
10
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2answers
7k views

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
78 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
212 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
778 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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0answers
34 views

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
60 views

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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0answers
33 views

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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0answers
13 views

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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0answers
44 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
71 views

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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