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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.

2
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1answer
43 views

Apply for ITIN before filing taxes

I'm a resident alien in the US. I got married with another resident alien in California in 2018. She is not eligible for a social security number, so she needs to apply for an ITIN so that I can add ...
0
votes
1answer
134 views

working as an european self employed for an USA company

I was wondering why companies from USA are are searching for remote developers from USA, even if the working contract is a W2? (I've seen that many companies have a requirement that the developer ...
2
votes
1answer
89 views

How can portion of cellphone bill be estimated for work?

First off I'm very new to this so some of my questions may be silly. I worked for several companies that issued me a T4A which means I need to fill out a T2125 with business expenses. To my ...
1
vote
3answers
196 views

Estimating the amount of my 2018 tax refund

I'm 23 and 2018 is the first year that I have worked full-time. I began working full-time in May of 2017 and got back about $5,500 from that tax refund (state & federal). I'd like to get a ...
0
votes
1answer
83 views

Self-employed, Medicare, Retiree: Box 5 on 1099-R is empty; is health insurance deductible (1040, Line 29)?

If Box 5 on a 1099-R is empty, does that mean that health insurance premiums for a self-employed retiree can be deducted on line 29 of the 1040? (Assumption: All other requirements for 1040 line 29 ...
-1
votes
1answer
79 views

tax income - working less than 12 months

If I work less than a year (6 months) and I earn 26,000 per annum. However, I didn't work before, therefore in March the overall amount will be apox. 13,000. Am I entitled to the tax return as they ...
1
vote
1answer
134 views

Social Security Insolvency?

I was perusing the Analysis of the 2018 Social Security Trustees’ Report. This report claims "that the Social Security program faces a large and growing funding imbalance that must be addressed ...
1
vote
1answer
40 views

Maximum amount deducted for carried-over long term capital loss

Suppose I have $10K of long term capital losses in FY2018. I'm married filing jointly, so the max I can deduct is $3K, and carry over $7K to the next year. Question: do I then have to deduct $3K ...
2
votes
1answer
83 views

Can I live outside Canada and get paid into my Canadian bank account for freelance work?

I live outside Canada and have declared non-resident status to the CRA. I haven't declared income or paid taxes for the last 4 years, or even stepped foot in Canada for the same duration. I do have an ...
0
votes
2answers
56 views

How are deductions divided between ordinary income and long term capital gains?

The question applies to the US federal income tax for tax year 2018. To make things concrete, let's suppose I have $50k in ordinary income and $50k in long term capital gains. I plan to use the ...
4
votes
1answer
68 views

Deduction for HSA contributions when MFS

Assume the following scenario for married couple living in the US: Both spouses have coverage under the High Deductible Health Plan (HDHP) of spouse A Spouse B does not have coverage under any other ...
37
votes
5answers
6k views

Why is progressive taxation achieved with brackets? [closed]

The marginal utility of money decreases as income increases. Intuitively, if I take $100 from both Jeff Bezos and a minimum wage worker, they will both be worse off, but the impact on the minimum wage ...
1
vote
1answer
83 views

Do I need to pay tax if I use my own bank account for collected money for a booked hotel in the UK?

We are organizing an event in the UK and we need to book a hotel for about 200 attendees. The booking fee of about 4,000 pounds is to be shared by all the people. Since we have no company bank ...
4
votes
2answers
1k views

Taxes for freelancers

I have done some research on this topic already. There are still some things about freelancer taxes I have questions about. According to what I've read so far, freelancers have to pay taxes on any ...
2
votes
3answers
182 views

Effective Tax Rate in Retirement

Suppose that I'd like to net $5k of monthly income ($60k per year after taxes) from my 401k when I retire in 20 years. For 2017, I would need $69.5k gross distributions from my 401k because my ...
0
votes
1answer
41 views

Dual status US federal taxes

I have been working and living in the US from January 14th until October 19th on an L1 visum. Before this I lived in France and for the rest of 2018 (and later) I will be a working and living in ...
0
votes
1answer
32 views

Rollover IRA contributions

I currently have 2 retirement accounts with Vanguard: 401K Rollover IRA I contribute to both. I and my employer contribute to 401K before taxes. I have been contributing from my paycheck (After ...
0
votes
1answer
57 views

How to determine how much is paid to OASDI?

Same state. Same status. I recently switched jobs ($130k to $200k) and I noticed a huge amount goes to OASDI but before I didn't pay any. My overall tax deduction went from 24% to 36%. I am not-...
0
votes
1answer
85 views

Will the IRS return some of the taxes imposed at a higher level than normal on a severance payment?

Say a former employer pays out a lump-sum severance, and say that payment has taxes withheld at a higher than normal rate. Will the difference between that tax amount and my regular payroll tax rate ...
2
votes
1answer
106 views

Backdating employment start date

Is it possible to officially backdate my employment start date with HMRC? I have been working part time for my current employer since April 2018 and I have just found out from my employer that he hasn'...
1
vote
0answers
27 views

I own a corporation taxed as an S corp which hires me to do web development/consulting. Does the company income qualify as QBI under the TCJA?

In defining a "qualified trade or business", the Tax Cuts and Jobs Act (TCJA) excludes a "specified service trade or business" and lists "consulting" in its list of disqualified business types. But ...
2
votes
2answers
156 views

Tax implication when receiving Bitcoin gift from foreign relative?

Does the recipient has to pay tax, or report receiving the Bitcoin? receiving: US, sending: China. Edit: receiving gift.
6
votes
0answers
75 views

If your spouse passes away do you lose any tax credits (GST and Trillium Credit) owed to them before they died?

My husband passed away this pass on 17-July-2018. Until he passed away we hadn't filed our income tax for the years 2015, 2016 and 2017. I am wondering if and when I do decide to file our taxes; ...
0
votes
2answers
115 views

What would be my Indian Income Tax if my salary is 15 lacs per annum

This is one topic which has always puzzled me to no end. No matter how hard I try to understand it, I always do not seem to grasp the concept. I'm currently considering an offer and would like to ...
5
votes
1answer
137 views

Contributing to IRA with high income

If your AGI puts you in the in the "partial deduction" or "no deduction" category for IRA contributions, can you still contribute up to $5,500 (2018) without penalty? Is it still advantageous to do ...
1
vote
2answers
94 views

HSA deduction vs medical expenses

My understanding is that medical insurance premiums are not valid expenses for an HSA - but that they are deductible if you deduct your medical expenses - at least the part above 7.5% of income. ...
2
votes
0answers
40 views

Should I use 403b while filing 2555

I am a US citizen and have started a new job working at a US university. However, I live outside of the US and am considered domiciled permanently abroad (I have a "Bona Fide" residence outside of ...
2
votes
1answer
67 views

Tax returns while working in 2 states

Situation: NYC Resident Work 1-2 days a week in NYC Work 4 days a week in CT Employer is taking taxes of my paycheck to both states which sums up to about 40% in taxes Questions: I was reading that ...
7
votes
2answers
128 views

Can I have a dual-purposed limited company

I am an IT Consultant and have a limited company which I use to invoice my clients a daily rate for my consulting work. Can I use this same limited company to buy property and then offset the gains ...
8
votes
3answers
6k views

INR 10 million borrowed from friend at 7% interest per annum

If my friend transfers INR 10,000,000 into my bank account and we make a legal document for the same to return the amount at 7% per annum for next 12 yrs, should I pay tax on the same? If my salary ...
4
votes
1answer
1k views

Tax consequences of a gift returned to sender?

Transaction 1: On 2014-12-27, I sent a holiday gift of 0.1 BTC (which according to Coinbase was worth about 31.47 USD at the time) from my Coinbase account to an email address. Transaction 2: On 2015-...
1
vote
2answers
127 views

WIll money that a friend sent me (for his share of dinner bill that I paid) be taxed in India?

I paid for dinner with 3 of my friends. And at the end of the day, these 3 people send me Rs.500 each. They sent me the money via UPI bank transfer (say, using phonePe or BHIM). Will this amount (Rs....
3
votes
2answers
144 views

How are my 401(k) withdrawals taxed if I also withdraw from a Roth IRA?

Let’s say it’s time to retire and I have a $2,000,000 retirement fund. $1,000,000 was accumulated in a Roth IRA and the other $1,000,000 was accumulated in a traditional pre-tax 401(k). Let’s say I ...
1
vote
0answers
43 views

Receiving money in US for work performed overseas

I previously lived in the US on a work visa and so have a bank account there, but am now living overseas (with no tax residency status in the US). I am performing freelance contract work for a US ...
4
votes
1answer
302 views

Helping friends pay for a party

We're throwing a BIG party next year. Our friends have agreed to contribute. The total cost of the party comes to £20,000. Our friends will contribute £15,000 and we will subsidise the rest. This ...
-4
votes
2answers
153 views

How to calculate someone's true net worth?

Is there a way I can look up or calculate another person's net worth through math? Is a person who is making credit card, car, house, etc payments owe more that what they have equal they are worth ...
1
vote
1answer
87 views

Was the brouhaha on pre-paying real estate tax in 2017 for 2018 taxes ever resolved, and if so, how?

The new tax bill (Federal, United States) allows only a $10,000 deduction for 2018 for state income tax plus real estate tax. There was considerable backing and forthing on this as the tax bill ...
3
votes
2answers
97 views

Qualifying as a Professional Musician to Deduct Cost of Instruments

I've been a hobbyist musician my whole life, playing random paying gigs from time to time. The group I am with now all have day-jobs as non-musicians, but we plan to start playing shows and recording ...
2
votes
1answer
46 views

Tax and National Insurance Savings if non-resident (UK)

I'm working for an employer in London. There is an option for me to work partially from home which means also abroad (EU). I'm considering arriving in the UK on Monday in the morning and leaving on ...
2
votes
0answers
102 views

If my ISOs are converted to NSOs, do I still have 90 days to exercise my vested options as ISOs?

Let's say I have a bunch of incentive stock options (ISOs) in a company that have vested but I have not exercised yet. If I were to leave the company, I have 90 days to exercise them with ISO tax ...
7
votes
1answer
169 views

Can I choose which state to pay income tax to when I am traveling and have no permanent residence in the US?

I am leaving for a year-long trip around the world. I will have an income while traveling. Is it possible for me to choose which state will tax me as I will not have a permanent residence in any state?...
0
votes
2answers
61 views

Help calculating quarterly estimates for September

I was looking to get some help with my federal quarterly estimates this September. My W2 income is 36k/year My 1099 income (started 2 months ago) is around $1000/month How do I calculate my ...
15
votes
2answers
2k views

If I sell shares in the US, will I be liable to pay taxes in US?

I am a South African citizen living in South Africa who works for a large US company. As part of my compensation, I receive restricted stock units (RSUs) which my country considers to be part of my ...
0
votes
1answer
50 views

Can I qualify for the foreign earned income exclusion if I am employed by a US based company?

I am a US citizen considering living abroad for a full year, staying in 12 different countries for a month each (Remote year). I am planning to remain employed by the US based company I currently work ...
-2
votes
1answer
166 views

How to calculate Recurring Deposit Interest in c# [closed]

Can anyone please help to calculate recurring deposit interest using c#? I am using following method: //A = P*(1+R/N)^Nt //A = Maturity amount. //P = Principal amount (In our case, it is Rs.5000) /...
0
votes
1answer
37 views

Sole Proprietor LLC quarterly estimated tax payment

This is going to be my first quarterly estimated federal tax payment for a single member llc (treated as disregarded entity- sole proprietor). I see online that for annual taxes, I need to fill out ...
1
vote
2answers
130 views

Am I required to pay taxes on my U.S. freelancing income in France?

Similar to this question (and the question that OP linked to), I will be living abroad (in France) and working there, but I also do freelancing for U.S.-based companies. There are other questions ...
2
votes
1answer
877 views

Taxes when you lose money in investments?

I've been wondering about the following scenario. Let's say you invest $10k in stock market. At the end of year 1, your investment has grown to $11k. The government taxes a percentage of that new ...
4
votes
1answer
84 views

Single-Member LLC vs LLC having only one member

So, I registered a LLC but I am the only member in this LLC. If I do business under this LLC, when I file tax, I think I should NOT choose "Individual/sole proprietor or single-member LLC" category, ...
1
vote
0answers
72 views

How to Respond to CP2000?

I got a CP2000 from the IRS for 2016. It concerns three retirement account transactions. A direct rollover from an existing IRA to a Solo 401K (a qualified plan; 1099-R Code G in box 7) In 2016, I ...