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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.

1
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1answer
134 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 ...
2
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1answer
122 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
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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 ...
4
votes
1answer
87 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
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1answer
211 views

Should one file 1040X to get extra $5 tax refund [duplicate]

After I finished my taxed in last week of March, I received a Updated 1099 with only one modification where 199a is modified from zero to $50 or so. Refund is about to come in a week. Initial values ...
1
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1answer
234 views

How to show in income tax filing a loan taken from friends to repay home loan?

I took home loan from PNBHFL of 20 lakhs. Due to various personal reasons (to clear my debts) I sold my house. I purchased it in August 2016 and sold it in January 2019. I sold it for 40 lakhs. ...
1
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1answer
66 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
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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 ...
6
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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 ...
5
votes
1answer
3k views

TurboTax Made an Error - Should They Pay?

I used TurboTax to file my college-age daughter's 2012 tax return. TT said she was eligible for a $1,000 American Opportunity Credit. We claimed it and got no argument from the IRS. I used TT again ...
5
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0answers
63 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 ...
2
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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 ...
1
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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 ...
0
votes
1answer
51 views

Tax system on savings account in India

I would like to know if the money in the bank is taxable. Let's say I have deposited some x amount in my savings account and the yearly interest is y amount. I know that this y amount is taxable, but ...
4
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2answers
488 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, ...
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 ...
4
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2answers
601 views

Indian won a contest in US. I got 1042-S claiming 30% tax. How to file?

I won a contest and the sponsor paid the money without withholding tax against my W8BEN. I am Indian citizen and I have to file taxes to US from India. I have received 1042-S claiming that I have to ...
4
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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 ...
10
votes
1answer
804 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 ...
0
votes
3answers
437 views

Will I get a tax refund if my bonus+regular paycheck brings me above a tax bracket for that month?

I received my bonus recently, but it was combined with my normal monthly check. The bonus the company gives out is 4 times the monthly pay, which combined with my regular pay is 5 times more... this ...
-1
votes
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 ...
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
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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 ...
2
votes
1answer
2k views

How do I declare my profits in binary options while paying income tax?

I'm from India and have been trading in binary options for a while now, and have made some profit which I will be withdrawing through an e-wallet (Skrill/Neteller). Under what section do I declare my ...
5
votes
0answers
101 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
320 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 ...
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),...
1
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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 ...
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?
1
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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
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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 ...
42
votes
6answers
7k views

How do tax brackets work? Do they yield significantly different results than a continuous curve?

In Canada (and many other countries), high-earners pay a greater percentage of their income in taxes than low-earners. Here is our Schedule 1 form: The marginal utility of money decreases smoothly ...
3
votes
0answers
76 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 ...
1
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0answers
69 views

How to check status of application for extension (Form 2350)

I want to use the Foreign Earned Income Exclusion when doing my U.S. taxes, but I have not yet been present in a foreign country for the required 330 days. Because of this, I used Form 2350, "...
1
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1answer
42 views

Individual Mandate Penalty for a Resident Alien who left the country in August

I am an F1 student who was in the United States from September 2011 till August 2018. I completed my coursework in May 2015, and stayed in the US for another three years under the OPT provision. I ...
1
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2answers
71 views

Tax exemption on HRA in India

I am fresh out of college working in Bangalore, and have not much idea about the income tax system in India. Here is my salary structure: Basic - Rs. 12,50,000 pa HRA - Rs. 6,25,000 pa I looked up ...
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 ...
5
votes
1answer
116 views

Sold wall map as fundraiser for a 501c3 non-profit. Need to report on tax returns? How?

In my spare time outside of my full time job, I produced a wall map for as a fundraiser for a 501c3-registered non-profit organization. I then sold the maps via FundRazr.com and money from sales was ...
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 ...
3
votes
1answer
304 views

UK Self Assessment benefit in Kind

I'm trying to complete my Self Assessment and it's fairly straightforward - I don't have any complicated tax affairs or multiple incomes. What's confusing me is the benefits section. I have private ...
3
votes
0answers
80 views

Amended return (dead or alive): What address or addresses to use for various forms?

An amended return multiple forms, most of which require an address. But if the address has changed since the original return, then what address do you enter on each form? For example, the amended ...
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 ...
4
votes
1answer
1k views

If PF is withdrawn by an NRI staying in USA does it become taxable as per US laws?

I have been service in an Indian company for 10 years and now getting transferred to US. I want to keep the PF and not withdraw as I don't need money and it will earn good 8.5% interest for next 3 ...
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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? ...
1
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2answers
92 views

Income Tax Deduction / Reimbursement of Rs.15000/- per year

Can the purchase of medical equipment like Blood Monitor Machine, Blood Sugar Machine etc. be claimed under the medical reimbursement or income tax deduction of up to Rs.15000 per financial year for ...
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 ...