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.
3,520
questions
2
votes
1
answer
45
views
Switzerland taxation over income derived from foreign businesses
I'm considering moving to Switzerland permanently (I'm Italian, currently living in Italy), but I would like to know if my income derived from an US LLC (foreign-owned single-member LLC) is exempt ...
- 173
0
votes
1
answer
49
views
The Roth IRA clock and taxes
Please consider the following hypothetical situation:
A 30 year old investor puts $500 into a Roth IRA. When he turns 36, he takes all the money out and pays taxes on his profits and maybe a penalty ...
- 1,542
0
votes
1
answer
67
views
How do I report Interest on tax refund from India?
I live in the US. In 2022 I claimed foreign tax credit for the taxes I paid in India. In 2023 I received a tax refund from India with interest added and TDS on the interest deducted. How do I report ...
- 169
2
votes
1
answer
71
views
Difference in the Capital gain due to exchange rates
I am a US citizen. I inherited a property in India in 2018 and sold it in 2023 with no gain/loss in Indian currency.
But when I convert the cost and the sale price to US dollars, I get a loss because ...
- 169
0
votes
1
answer
169
views
Can I claim the tax back from my lawyer's fee?
I received a settlement from a car accident of 285000.
I have a personal GST number, so can I claim the tax from my lawyer's 30% fee which seems high?
I haven't worked since this accident in 2012. I ...
3
votes
1
answer
81
views
Can I re-file a missing Schedule 1 in this situation?
A friend of mine, with self-employment income did his/her income tax using Turbo Tax. Turbo Tax produced the tax return including Schedule 1. My friend has a Qualified business income deduction. ...
- 1,542
3
votes
3
answers
105
views
How do income taxes work with basic personal amount in Canada?
The tax brackets do not seem to include a 0% tax rate up to the basic personal amount (BPA), so how does this work with income taxes?
E.g. BPA is 15k, federal tax bracket is 15% for 50 197$ or less. ...
- 145
1
vote
1
answer
68
views
If the highest federal tax rate is 33% and the highest provincial tax rate is 25.75%. why is the marginal tax rate 53% rather than 58.75% (Quebec)?
If I understand correctly, the total tax is basically the sum of federal taxes and provincial taxes, so for Quebec this should give a marginal tax rate of 58.75% (33% federal and 25.75% provincial). ...
- 145
1
vote
1
answer
106
views
Are interest and penalties due to the IRS when there is an automatic extension due to emergency?
I just got a letter from the IRS, saying that I owe them a small amount of money. I live in California, where we had an automatic extension to the due date until October 15, so that is when I filed. I ...
- 113
7
votes
6
answers
7k
views
Paying $185k back rent to sister - can I claim in taxes?
My sister bought my mother’s home from under me. It was a two family home. My sister lived in one apartment and I lived with my mother and two kids in the other apartment. My mother never asked for ...
1
vote
0
answers
22
views
Is personal loan interest deductable from other income / income for capital gains
Say I take a personal loan and invest that amount on P2P lending platform, or in a high yeild FD, or in the stock market. Is the loan interest that I pay for this loan eligible to be deducted from the ...
- 95
3
votes
1
answer
340
views
In the UK, if I pay tax on both PAYE and Self-Assessment, where will my savings interest be taxed?
Like a lot of people in the UK fortunate enough to have savings, the higher interest rates mean that I will be getting more than the £1000 tax-free allowance on savings interest. Unlike a lot of ...
- 1,281
1
vote
1
answer
228
views
How can I log onto the IRS website without using ID.me?
Several years ago when I went to log into my online IRS account they had added ID.me to their site and I have been trying ever since to get verified. I have many of the secondary documents proving my ...
- 21
2
votes
2
answers
123
views
Can only the individual version of this health plan be a High-Deductible Health Plan?
I'm looking at a health insurance plan that has a deductible of $3000, for each person enrolled. If you enroll one person, it pays out when that person has $3000 or more of medical expenses. If you ...
- 159
0
votes
2
answers
164
views
Can I deduct driving expenses when I am driving for a ride share service and hoping to get a passanger?
Imagine a person is driving for a ride share service such as Uber. He is at his favorite spot waiting for his next passenger. He then gets a passenger and drives the passenger where he/she wants to go....
- 1,542
1
vote
1
answer
73
views
Inherited Roth IRA distributions and taxes
My mother died this year and I inherited her Roth IRA. I do not need the income from her account and I do not need to pay any extra taxes. I am 61 years old and I plan to be on Medicare when I turn 65....
- 1,542
1
vote
1
answer
95
views
Contribution deadlines for Solo 401k as Single-Member LLC
I am trying to understand Solo 401k contribution deadlines for Single-Member LLC:
Pre-tax contributions to traditional solo 401k. This includes both employer and employee contributions.
After-tax ...
- 161
0
votes
1
answer
57
views
espp tax calculations when loss does not exceed discount
I have participated in four ESPP grants at my current company and am trying to do some tax planning. I've read the following as research:
https://www.irs.gov/faqs/capital-gains-losses-and-sale-of-...
- 101
1
vote
1
answer
267
views
How to correct a Roth conversion pro-rata rule mistake on form 8606?
I have an after-tax IRA and pre-tax IRA. In 2022 I converted $30,000 from the pre-tax IRA to a Roth IRA. I wasn't aware of the pro-rata rule. According to pro-rata rule, I was supposed to convert $4,...
- 111
2
votes
2
answers
79
views
Is the beneficial limiting effect of the clean vehicle credit on the child tax credit codified by law or can it change before the forms are finalized?
Looking at the relevant draft US federal tax forms for 2023 (Schedule 3 and Schedule 8812), they appear to mirror 2022.
Consider a taxpayer who in 2023 takes delivery of an EV that qualifies for the ...
- 21
2
votes
1
answer
83
views
Does temporary lodging qualify as a moving expense for California tax deduction?
Does anyone have a detailed source for what qualifies as a moving expense for California state tax purposes?
I moved to California from outside the US and when I arrived I stayed in temporary lodging (...
- 21
0
votes
2
answers
110
views
TQQQ Tax Treatment
I understand that dividends from TQQQ are not qualified. As such, they will be fully taxable. I consider this to be a negative for TQQQ. For comparison purposes, they would be qualified if the ...
- 1,542
1
vote
1
answer
99
views
Double Taxation - New York and New Jersey
I have a tax situation for year 2022. Amounts given below are examples.
1/1/2022 to 8/8/2022: living and working in Indiana (income $55,000)
8/9/2022 to 12/31/2022: living in New Jersey, working in ...
- 151
1
vote
2
answers
56
views
How to resolve an error with my PAYE income tax reporting
My employer seems to have made a mistake when totalling the income tax on my 22-23 payslips and ultimately my P60 - I have found the month where this occurred, where the year to date tax column was ...
- 111
2
votes
1
answer
472
views
All up front rental payments impacting taxes?
Prospective tenant in Philadelphia, PA wants to pay for year long lease all up front. How does this impact net income and therefore taxes? Typically when paid on a monthly basis I am able to deduct ...
- 2,864
0
votes
0
answers
30
views
[India-US]Taxability of qualified dividends on US mutual funds by Income Tax department of India
AFAIK, dividends paid out by mutual funds are of two categories, ordinary and qualified. The ordinary dividends are taxed as ordinary income while the qualified dividends receive the favourable LTCG (...
3
votes
3
answers
394
views
If I receive goods as a form of compensation, can I sell those goods without being double taxed on them?
I recently got invited to participate in a program which sends people consumer products free-of-charge in exchange for a detailed, unbiased review of the products in question.
When enrolling in the ...
- 133
0
votes
0
answers
73
views
Foreign student with unpaid taxes returning to the US - What are the risks?
In 2001 I was a foreign student from Haiti, I Studied in the States and my tuition was paid for by my grandfather, so I didn't apply for financial aid and no student loans.
After graduation I worked ...
- 1
1
vote
1
answer
77
views
Recently my mother died - how to handle her living trust account - Does the date of trust formation change?
A few months ago, my mother died. She had a living revocable trust which reported its income to the IRS under her social security number. When she died the trust became irrevocable and I went to the ...
- 1,542
3
votes
2
answers
282
views
Roth vs Traditional 401K when paying income tax in two states
I graduated in May and got my first full-time job and would like to being contributing more to retirement. I live in New York State (not NYC) and work in Connecticut so I pay state income tax in both ...
- 33
1
vote
0
answers
78
views
Can you sell shares before ex-dividend and buy back after, to replace 'dividend income' by 'capital gains'?
Note: this is the opposite direction than most sell/buy questions over dividend day.
Here is the situation: I have large losses from unrelated trading activity, and can only deduct 3000 per year from ...
- 37.6k
8
votes
1
answer
1k
views
Overwithholding due to wrong address
Former company in NY has the wrong address for me on file. The address is in the city and because of that it has withheld city taxes in addition to NY state taxes. I don't live there, I moved outside ...
- 81
0
votes
0
answers
119
views
Setting up a limited company and appointing spouse as director for tax purposes
I am a programmer registered as a sole trader in UK, and I have around 40k GBP of annual income from my self employment. Apart from that, I also have a permanent job working for a UK employer, where ...
- 131
3
votes
0
answers
118
views
How does HMRC collect underpaid tax
In 2022/23 tax year, I was working for a UK employer and had a base salary around 100k GBP. My tax code was 1071T, which apparently means that I had a tax free allowance of 10710 per year (according ...
- 131
0
votes
0
answers
19
views
Claiming HRA for a jointly owned property
I am a salaried person in India. I am in the process of getting a new house on rent but the property is a jointly owned property.
The rent agreement will have both the owner's names & i would be ...
0
votes
1
answer
46
views
Estimated Taxes and Solar Tax Credit [duplicate]
Can I apply the anticipated solar tax credit for my system that was installed in 2023 to my Form 1040-ES estimated tax payments (i.e. lowering them by that amount) without incurring an underpayment ...
- 175
3
votes
3
answers
318
views
Can an individual filler use accrual method for federal tax purposes?
I am struggling with a tax situation and I have consulted professionals with conflicting opinions. (Does not help being abroad).
I became a greencard holder in 2022, i am filling taxes for 2022 (first ...
- 31
3
votes
1
answer
513
views
Deferring Tax on Social Security payments
Recently, I went to a free seminar (sales pitch) on retirement income. The speaker claimed that he has a method where you can defer the income tax on your Social Security payments to age 85. However, ...
- 1,542
0
votes
1
answer
68
views
What is a qualified dividend (NOT REITS!)
According to NerdWallet, qualified dividends are dividends that:
It is paid by a U.S. corporation or qualifying foreign entity. For many investors — be they in stocks, mutual funds or ETFs — this one’...
- 9
2
votes
1
answer
316
views
Where do I report ISO income with a subsequent disqualifying disposition, and what taxes are due on it?
Here's what happened in 2022 in the United States. I have changed numbers a little bit for simplicity and privacy.
I had an incentive stock option (ISO) grant that I exercised using a net exercise ...
- 279
0
votes
0
answers
22
views
Selling overseas stocks and Australian tax obligations
I'm an Australian citizen and i worked for a US company for several years (and left it since 2022)
While employed there i was given stocks as a bonus each year and the account was held at Bank of ...
- 163
3
votes
3
answers
262
views
How do I value items for charitable deductions?
A US resident donates a used book to a charity. He wants to deduct the value of the book on his tax return. He observes that a very similar book can be bought for $30 at a local used bookstore. The ...
- 1,542
0
votes
1
answer
102
views
Avoiding extra tax - UK
For the past 10 years I have been earning from an employed job, with all taxes paid before I receive my salary. (Around £60k)
I have recently started to do extra work for which I receive the payment ...
- 1
4
votes
2
answers
912
views
Making separate individual estimated tax payments when married filing jointly
My spouse and I typically file our tax return as married filing jointly due to the advantages like the child and dependent tax credit, and we plan to do so again this coming year.
This year, we have ...
- 175
4
votes
1
answer
2k
views
Employer not sending corrected W-2. What can I do?
For USA tax year 2022: I got my W-2 via ADP in February 2023. It had a mistake and I requested a corrected version (W-2C) in March 2023. Tax filing was due in April 2023 so I filed an extension (...
- 151
0
votes
2
answers
28
views
EPF with PPF clarification for salaried person
Suppose a non-government salaried person has an EPF account.
Employee Contribution EPF amount 4500 Rs and Employer Contribution EPF amount 4500 Rs
What will be the 80C and 80CCC deduction benefit ...
- 101
3
votes
1
answer
594
views
Clarification Needed: Calculating Taxes and Rental Income for Buy-to-Let Property Investment in Berlin
I hope you're all well. I need some guidance regarding a financial scenario I'm considering. I'll break it down as clearly as possible to ensure I get accurate advice.
Let's simplify things by ...
- 133
2
votes
2
answers
89
views
Tax Reporting and a Defective Trust
By a defective trust, I mean a trust that meets the definition of a trust for estate tax purposes but not income tax purposes.
Consider an irrevocable defective trust that is setup without going to ...
- 1,542
2
votes
1
answer
401
views
Taxes, personal mortgage loans, and interest. IRS Form 1098?
My sister has a personal loan for the purchase of her manufactured home, issued by the owner. She'd like to be able to deduct the loan interest from her taxes.
As far as I can tell from IRS ...
- 143
1
vote
2
answers
70
views
Claiming Federal Tax Withholding Exemption for first year in US
I am a student, and it is my first-year present in the United States. According to sources, I am eligible to claim exemption from federal withholding if the following two conditions are met:
You owed ...
- 113