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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
206 views

How to avoid the “60% tax trap”

I do understand that, past the £100k income threshold, one gradually loses her personal allowance at the rate of £1 every £2 earned. With this fiscal year's figures, the personal allowance is £11,850 ...
3
votes
1answer
40 views

Income Tax India - Respond to Notice U/S 139(9) of Income Tax

We did a mistake when we filed the ITR and the e-Verification before the payment was reflected. We then resubmitted the ITR as described here. So, if I now login to Income Tax website and navigate to ...
1
vote
3answers
223 views

Why is tax withholding based on the current paycheck only and not cumulative?

This question points out the familiar but bizarre mechanism that tax withholding uses: every paycheck is extrapolated to the year, tax is computed on that amount, and tax is withheld for the fraction ...
1
vote
1answer
128 views

Do I have to file Form 8843 even if I fail the substantial presence test?

Given the following presence in the U.S.: (All previous years are only short tourist trips) 2016: 6 days (all under VWP) 2017: 0 days 2018: 87 days (4 VWP + 83 J-1) The presence under the J-1 visa ...
0
votes
0answers
16 views

CA income tax for student fellowships: is all of Box 5 - Box 1 of 1098-T taxable by CA?

I have received a 1098-T due to receiving a fellowship from my school. Box 1 is all qualified expenses. This portion is not taxable by either CA or Federal. Box 5 is the total of the fellowship ...
1
vote
2answers
43 views

Filing a 1040 after filing 1040 ES

I'm trying to plan my taxes for 2018 (note, I have already filed taxes for 2017). I have about $5K of short term capital gains that have not had any tax withholding during the time Jan 1, 2018 - Mar ...
0
votes
2answers
60 views

Does one of the US Income Tax free file services allow for no-fee 1099 entry?

I've started to file my income tax with the HR Block free file service, but I'm getting hit with a 30 dollar upgrade prompt when I go to put in my 1099s. I have one capital gains 1099-MISC, one ...
1
vote
0answers
27 views

Amending return to include Schedule B?

I included and paid tax on the interest I earned in my foreign account as 1099-INT, but it didn't file a Schedule B or ask if I had foreign accounts. Since the account has over $10k, I need to file ...
18
votes
3answers
3k views

Why would a previous year's tax deductions affect the current year's taxes?

For the first time in several years, I'm preparing the income tax filing for my family. Since a professional did the preparations last year, we had no electronic records to directly load into the ...
2
votes
1answer
118 views

How does the IRS know which country I live in?

I live in Morocco and I recently ordered an EIN number from the IRS because I work in Envato Market and because we have an income tax treaty with the US of a (10%). Meaning that, If someone from the ...
1
vote
3answers
191 views

Is there any income increase that would result in less net income due to taxes?

We have all probably heard people say "I received a raise at work, but it doesn't matter because I'll just be paying more in taxes." This comment is usually in reference to a small raise. Is there ...
2
votes
0answers
107 views

I overlooked to file Form 8889 (HSA contribution) on my tax return. Should I file an amended return?

I filed a 1040NR-EZ tax return. Only after I mailed it, I realized that I had an HSA which requires Form 8889 and the non-simplified 1040NR to be filed. My W-2 does show a W contribution in Box 12. ...
4
votes
1answer
142 views

USA: Renter had major medical setback and may become unable to make rent. What implications?

For 2017 taxes (USA) I formally converted my first home to a rental by declaring income, establishing cost-basis for depreciation, etc. The tenant's lease is July/2017-July/2018. Complicating things, ...
0
votes
0answers
119 views

IRS: 330-day physical presence test for Foreign Earned Income Exclusion and international waters

I'm going crazy trying to understand how to consider time spent on/over international waters (by flying or taking a ferry) with regards to the physical presence test to qualify for Foreign Earned ...
1
vote
1answer
65 views

Tax questions from US citizen who repatriated midyear

I have a few questions related to what tax forms I need to complete based on my circumstances. I am a U.S. citizen. I lived/worked abroad for several years, up until summer 2017. In summer 2017, I ...
1
vote
1answer
41 views

claiming property tax and getting property tax documents

I bought a home last year (Feb 2017), so doing taxes myself for the first time as a homeowner. I need to claim property taxes I paid. So, I have the 1098 from the lender, which has mortgage interest ...
0
votes
1answer
102 views

Would I be a resident alien or dual-status alien for tax purposes in 2017?

Background: I came to the US in Aug 2013, to pursue my Master's degree. After graduating in Dec 2014, I worked for a company in Michigan from Feb 2015 to July 2017. Starting from Aug 2017, I have come ...
0
votes
2answers
78 views

Straddles and Index Calls

An investor owns a stock portfolio consisting of 200 stocks each from the S&P 500 index with a significant amount of unrealized gains. He then sells calls on the S&P 500 index at the money. ...
3
votes
3answers
80 views

How can I can get tax forms / instructions for next year?

The rules for the 2018 tax year in the United States I expect will change significantly due to the passage of Public Law 115-97, the so-called "tax cuts and jobs act". There are some vague guides to ...
0
votes
0answers
27 views

Where to report a certain business loss.

My question relates to a business loss. I was a partner in a law firm that failed. The firm had a line of credit, and I was a guarantor. I settled with the bank and paid off the debt using money ...
1
vote
1answer
116 views

My husband and I live in NJ but he works in PA. Where to declare the income?

My husband and I both live in NJ. He works in PA. I work in NJ. For the NJ state returns, should this be my income only and the PA state form be his income only? Or should both incomes be listed ...
0
votes
1answer
98 views

Do I need to file taxes in the city I work?

I live and work in Ohio. However, I moved in 2016 to a village without city income tax. However, I work in a city with income taxes. I started with this organization in 2017. My employer has been ...
1
vote
0answers
41 views

How to account for inventory returns to wholesaler?

USA 2017 tax question here. My wife has closed out her sole-proprietorship retail business last year, and as her arm chair accountant it falls to me to figure out her gains/losses. She was able to ...
1
vote
1answer
67 views

Cost basis for spinoff company

I owned Stillwell financial stock (they were the parent company of Janus Capital). In 2001, they separated. What is the cost basis for each stock?
3
votes
1answer
87 views

Foreign Tax Credit / form 1116

I have a foreign retirement income. Income tax is withheld at source in a foreign country. As I have to file form 1116 to get the FTC (foreign tax credit) I need to know if such retirement is a “...
1
vote
0answers
35 views

State Residency for tax purposes / substantial presence test

I was a visitor to the US. With three trips I made during 2017 I met the substantial presence test and I became consequently resident for tax purposes for the entire 2017 as I arrived to the US on 12/...
0
votes
1answer
46 views

How long it takes to be classified as a resident alien?

I have been in the US since 1st of August 2016. I filed my taxes for the year 2017 as a non resident alien just now. In a tax workshop in the University I work and study I was told that as a F1 I have ...
0
votes
1answer
19 views

Do filers who have trader tax status with Mark to Mark election need tradelog or another accounting solution?

About me: I'm a trader with trader tax status. I do not have a company. I did have a few trading accounts, but most of the time I traded them separately. I'm trying to hire a CPA to do my taxes. I ...
5
votes
1answer
123 views

I am a foreigner withdrawing a USA pension. Do I file a state tax return?

I am a citizen of a European country who worked a couple of years in the USA, then moved back to Europe. I withdrew my 401(a) pension last year as a lump sum and need to know how this is taxable. ...
1
vote
1answer
38 views

Tax situation for non-resident

I have an F1 visa and my spouse is a permanent resident with no income. My employer has deducted FICA taxes and I would like to get a refund for that as well. What will be my best options for filing? ...
1
vote
0answers
29 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, "...
0
votes
2answers
86 views

State taxes for convoluted NY/NJ work situation

I lived in New York the entire year and worked in my New York City office the first half of the year. After that my offices were moved to New Jersey and I worked remotely from my home in NYC 80% of ...
0
votes
1answer
237 views

Income code 37 from 1042-S in 1040NR

I have received 1042-S which contain income code 37, which is the return of capital. This amount is not taxable to me and the amount withheld was already repaid to me. Is there a need to report it ...
2
votes
1answer
72 views

Taxes for a foreign freelancer getting paid in the USA

I, a Mexican citizen, was living in Portland last year and had a TN work visa, but decided to come back home. The company I was working for decided they wanted to keep working with me but as a ...
3
votes
1answer
61 views

How do ACA premium tax credits work?

As a "What if I lost my job?" budgeting exercise, I went to https://www.healthcare.gov/apply-and-enroll/health-insurance-plans-estimator-overview/ and punched in the numbers for me and my children ...
0
votes
0answers
20 views

Are payments from LIC single premium money back policy taxable in US?

I have a single premium LIC money back policy, which pays money every 3 years. I have received the 1st payment. I wanted to know whether that amount is taxable in the US? I am in USA.
1
vote
1answer
51 views

S-Corps and owner draws: Are draws tied to equity shares?

A friend of mine is involved with an organization as an employee but also owns a 5% equity stake in the organization. The organization is a S-corp. They want to pay 5 members an equal owner draw ...
13
votes
2answers
3k views

What's the meaning of the word 'less' in this tax table?

Our government introduced a new Payee tax scheme. Can someone please explain how does the word 'less' work in this context?
0
votes
2answers
230 views

Why do I need software to e-file?

I have a PDF of a 1040 filled out. Why can't I just email it to the IRS? Why do I have to find a company offering e-file, read their privacy and terms of service, fill out a form to register an ...
1
vote
0answers
89 views

Do I have to file a tax return for 2017 if my only income was a tax refund? [duplicate]

In 2016 I did a summer internship at a technology firm in California. Came from Europe on a J1 visa. Filed a 1040NR-EZ, and got a tax refund in 2017. Now, as I understand, state tax refund is taxable ...
3
votes
1answer
269 views

Minimize taxes with very uneven personal income

If you're self-employed, and your personal income is much higher one year than the previous years, can you distribute your reported taxable income to the previous years somehow in order to minimize ...
1
vote
1answer
92 views

New York tax forms and software incompatibility

This is either a where-to-download question or a software question. The federal tax forms can be filled out with free Foxit pdf software. One can easily save the basic data in an XML file and import ...
5
votes
2answers
176 views

Is there a penalty to withholding more taxes at the end of the year?

Suppose that Bob realizes in November that he has severely underwithheld taxes and would have a large penalty due when he files. Since he works at a salary-paying job, he elects to increase his ...
1
vote
0answers
39 views

What are the laws about selling random things on ebay for EU-based private person?

I was thinking to sell some things I don't use anymore on eBay and I was wondering if I should register or tax it somehow? I'm a private EU citizen and that's where I reside, and I assume that I would ...
0
votes
1answer
25 views

Income in 2 states with one very small amount

This is a US question. If a married couple have a primary residence in one state (say Florida with no Income Tax) and another vacation residence in another state (say Mass) and while being on vacation ...
33
votes
12answers
11k views

I hate the high taxes in NYC. Should I incorporate in or move to another state?

I'm in NYC currently and make a good living doing remote web development work and I get a 1099 at end of year. My taxes take about 35% of my paycheck. I was thinking about incorporating in another ...
1
vote
1answer
124 views

Where should standard deductions be mentioned on form 1040NR?

I am a non-resident alien for the year 2017 as far as tax returns are concerned. I used a software to complete my 1040NR form, but I have a question regarding the document that was prepared by the ...
1
vote
0answers
31 views

Procedure to mail 1040NR-EZ, 540NR from outside of US

I have to mail my federal and state tax returns 1040NR-EZ and 540NR to IRS and FTB, CA respectively from India? What are the mailing addresses and which is the best courier service to choose to ensure ...
1
vote
1answer
83 views

Swedish tax agency skatteverket.se reports an higher annual income than actual. How to verify?

I'm expat no longer living in Sweden but need refund form skatteverket.se. The income reported seems higher than actual received. Actual received is reverse calculated from salary and other benefits ...
1
vote
1answer
105 views

Graduate School Tuition

I thinking about helping a family friend by paying his law school tuition and maybe give him a stipend for books and living expenses. Do I need to create a scholarship or grant to do this or can I ...