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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23
votes
11answers
15k views

How to pay less tax on a high salary?

I'm working as a software engineer in the Bay Area. I file my taxes as "Single" and because of the high salary, I fall into the 32% bracket. Some of my salary goes into a 401(k). What are some ways ...
1
vote
1answer
104 views

What should be my state tax withholding if I do internship in another state?

I am doing internship in New York but I live in California. I am also an international student (F1). Our country has tax exempt agreement, so I am eligible for federal tax refunds. During the ...
2
votes
1answer
16 views

Tax Exemption on Foreign Currency Income in India

If a salaried person in India also makes 20,000 USD (in the entire financial year) from affiliate marketing and freelancing with US clients, would those 20,000 USD have any tax exemption in India? ...
-1
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2answers
137 views

US income tax for non US citizen

If I sell In App Purchases ANDROID to US customers from outside USA do I have to pay income tax to USA.Google already taxes a 30% cut.
0
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0answers
41 views

Source of Income for Google [duplicate]

Suppose I am in India, I have an app that has In App Purchases, and I sell a purchase to someone in Australia. Google India pays me the amount and takes a 30% cut. Since Google is an American ...
4
votes
1answer
103 views

What are the US federal tax implications of a forfeited signing bonus?

Example scenario: I accept a job that pays me a signing bonus. I accept the job, and I receive my signing bonus, which is taxed appropriately. However, there is a clause in my agreement that states ...
0
votes
1answer
183 views

Will IRS refund if it double taxes me?

I'm not a US citizen, but was working until recently in the US with a work authorization visa (TN1) For family reasons I had to go back to my country N (where I am a citizen) and I'm currently ...
3
votes
1answer
162 views

Meal and Grocery Deductions for “Long” Business Trips

It's my understanding that meals are 50% deductible on a business trip. Given that, I have two questions: 1) Does this include groceries if you choose to eat in your hotel room? 2) When does a ...
1
vote
2answers
85 views

Paying Taxes for One-Time Contract Work

I completed a one-time technical writing project which paid me $250. I don't plan on doing more contract work this year and was wondering how I need to report and pay taxes for this income? Do I need ...
0
votes
1answer
72 views

Clarification on State Income Tax

I live in the StateA and work in the StateB as a Contract Employee. Every day, I commute to my work. My Employer ( Contract Holding Company ) operates from StateC. My clarification is, Whether my ...
0
votes
1answer
529 views

Several cents difference in the actual and calculated “Withholding Tax” values

I have decided to check/calculate my salary in a spreadsheet. All the numbers align correctly, except the federal Withholding Tax. I have tried to use the Schedule 15, and Schedule 15A (Tax year ...
3
votes
1answer
132 views

How does the IRS know which lawsuit settlements to tax?

A relative received a modest settlement. The judge who worked on the case gave a letter to him, and the letter was careful to specify that the settlement was for a physical injury. The IRS does not ...
1
vote
1answer
54 views

FBAR last year of residence

Next year leaving U.S. for good. Gonna obtain sailing permit with IRS and file taxes as soon as possible. I will need to file FBAR for 2020 as well. Should I file FBAR only for part of the year I ...
1
vote
1answer
179 views

Premium tax credit repayment

Due to having withdrawn money from IRA to purchase a home, I had to repay the entire Premium Tax Credit in the amount of $15,000.00 when I filed my taxes in February 2018. Can I deduct the entire $15,...
6
votes
3answers
249 views

Contracter with day job - limited company dividends

I currently have a 'day job' as a web designer. I am considering taking on some freelance work which I have been offered and this would be completed in evening/weekends whilst also retaining my day ...
2
votes
1answer
67 views

Income tax on Medicare premium paid by employer

We are a church in Texas. The pastor's contract with the church includes payment for health insurance for him and his family. The pastor's wife turned 65 this year and is now eligible for Medicare. ...
1
vote
0answers
50 views

If I accept payment through my spouse's paypal who gets taxed?

I have a few compound questions, some of which may border legal SE. So please feel free to defer areas that you feel are in the other category. I have been spending time learning photography and ...
0
votes
0answers
18 views

Why total corporate and personal income tax by using a corporation to income = personal tax if individual at the top marginal rate directly incame?

Tax Planning for You and Your Family 2019 by KPMG. p 189. 11.5 Should you incorporate your small business? If you have an unincorporated business, you may be considering incorporation to ...
2
votes
1answer
60 views

What taxes are owed by dual US-Portuguese citizens who reside outside of Portugal for most of the year?

Let's say someone is a dual American/Portuguese citizen. They reside in the US approximately 10 months out of the year. They work for an American company located in the US. Would they owe any ...
2
votes
3answers
105 views

Possibly better to pay RMD penalties than to take RMDs?

Could it ever be advantageous for a wealthy retired person over the age of 70-1/2 with significant taxable investment income to intentionally fail to take a Required Minimum Distribution (RMD) from an ...
4
votes
1answer
175 views

Expenses deducted on tax return with no proof. What should I do if I get audited?

I just filed my tax return for the 2018 tax year (NETFILE, with StudioTax). I work 100% at home, and I rent the place from a landlord. According to an agent of the Canada Revenue Agency, I am allowed ...
1
vote
0answers
31 views

Is it okay for non-US citizen contractors living outside the US to be paid by US employers into their US bank accounts?

I'm in a unique situation with my US based employer. I'm an Indian citizen and after a year of working in the US, have had to move back to India. My employer would like me to continue working for them ...
2
votes
1answer
174 views

Should my wife start working in December or in January

My wife got a job offer and we need to decide if tax-wise it's better for her to start in December 2019 or January 2020. Does her status of being employed or unemployed as of December 31st affect ...
4
votes
0answers
48 views

What's wrong with transferring $12,000 from RRSP to RRIF and withdraw $2000/yr 65-71 inclusive? Why doesn't this give you $12000 out RRSP tax-free?

I live in ON. Jim Yih wrote Are You Taking Advantage of the Pension Income Tax Credit? Transfer RRSP to a RRIF. At age 65 transfer $12,000 to a RRIF and take $2000 out per year from age 65 to 71(...
3
votes
0answers
152 views

Will I get trouble with CRA, if I withdraw yearly maximum Capital Gain without paying tax in ON for many years?

Assume I get 0 income and my Capital Gain doesn't fall. I live in ON. Call F the maximum federal ($12069 in 2019), and P the maximum provincial ($10582 in 2019) basic personal amounts. Retirement ...
6
votes
1answer
2k views

Does the amount owed listed in my account on irs.gov include both federal and state taxes owed?

I don't see any kind of indication of whether the amount owed listed in my account on irs.gov includes both federal and state or just federal. I've received letters in the mail about how I owe state ...
0
votes
1answer
43 views

Are profits made from equity investments subject to income tax on top of CGT?

I want to invest in a stock ETF, but I'm wondering if any profit I make from these investments is subject not only to the 20% Capital Gains Tax but also counts towards income and thus subject to ...
0
votes
1answer
101 views

Can I send money to indian saving account from Canada bank account?

I am confused about how to send money from Canada bank account to my Indian Saving account since I came to Canada only for work assignment for 1 year. I came to Canada in November,2018 and moving ...
0
votes
2answers
59 views

Total Income tax and self-employment tax

I worked as a full time employee (W4 taxes were deducted by the employer) and I was self-employed (independent contractor - 1099MISC i.e. no taxes were deducted by the employer) for some months of the ...
2
votes
2answers
92 views

Tax safe harbor rule with estimated payments (no tax liability on prior year)

I am a Spaniard and immigrated to the US on January of this year. I worked in the US in 2015 & 2016 and filed taxes for those years, but I was not in the US during 2018 so I had no tax liability ...
0
votes
0answers
50 views

How do I set up the books for LLC taxed as a C-Corp?

Most resources online for bookeeping for LLCs immediately repeat a myth about C-Corp taxation subjecting you to double-taxation, declare that nobody would set up their single-member LLC as anything ...
2
votes
1answer
315 views

Is there a non-income tax way of my father paying off my house?

My father will soon be moving in with me as he is retiring at the age of 77. We are wanting to pay off my mortgage ($250,000). But we want to do it all in my name because we don't want it to appear as ...
2
votes
2answers
3k views

In the U.S as F1-visa student, I used TurboTax and filled the wrong form twice

I unfortunately filled my taxes using TurboTax as an International student twice and got money back before I found out it was incorrect for me to use that system. I have not filled the 8843 form ...
0
votes
1answer
95 views

Business losses for expenses incurred by a foreign contractor

I am a resident of California (Green Card holder), and started a new business in 2018 to evaluate an idea I had. It was not registered in state of CA as I was not sure how far the idea can go. Anyway, ...
0
votes
1answer
70 views

How to handle taxes by using credit card app (Square)

My old workplace wanted to contract me in to help with some on going issues they had. They ended up having me sign up to square which is a credit card service that charges a small fee when you charge ...
3
votes
0answers
80 views

Does money spent from lawsuits get reported in tax?

I had the unfortunate experience of taking my landlord to court. We eventually reached a settlement where I got some money. I strongly believe I should have gotten more and have evidence to support ...
2
votes
0answers
36 views

Should CRA be paid as soon as tax return is submitted or should I wait for their response?

I just filled my tax return with the CRA. I know that I will owe some money as I worked as a contractor without tax taken off. Should I wait for the CRA to assess my return and tell me if I made any ...
3
votes
1answer
129 views

over contributed after-tax 401K

I have had two employers in 2019. Through both employers, I made around $18K pre-tax 401K contribution combined in 2019 (which is less than $19K limit). However, through employer match and after-tax ...
1
vote
1answer
34 views

Tax treatment of cash bonus for new rollover IRA account

Questions: Is this considered a contribution subject to things like yearly Roth contribution limits? Is there any special tax treatment? Such as the cash bonus in regular IRA becoming after-tax ...
1
vote
1answer
29 views

Dividend from ESOP to Cash - India

I'm Indian and working for a US organisation in India. I have been investing in the Employee Stock Purchase Plan (ESPP) for a while now. During the initial investment period, I had not opted for re-...
0
votes
2answers
196 views

401k Taxes (USA) — Traditional vs Roth (not IRA)

Good afternoon, Looking for the 401k tax pros out there. I have four primary 401k tax related questions: 1) Income Tax Bracket at Retirement: When retiring and "cashing out" on a trad 401k: I ...
0
votes
0answers
21 views

Ensure tax compliance before moving to US. Investments in Offshore mutual fund that holds US stocks

As a non-resident alien, a person has to fill a W8-BEN form. Non-resident aliens are subject to withholding tax on dividends from US stocks (is that Ok?). Should the fund have had withheld those ...
0
votes
0answers
29 views

Foreign moving to US with investment in offshore fund through third country broker

A person from country x has a broker that some years back recommended investments in y fund. Say this one: Amundi Funds II Pioneer U.S. Fundamental Growth https://international.pioneerinvestments.com/...
2
votes
3answers
170 views

How do employers determine how much tax to withhold?

I work two jobs, both are casual, and I am claiming the tax free threshold from one job. Each time I am paid from the other job (the one I am not claiming the tax free threshold from), my employer ...
1
vote
1answer
100 views

Traditional IRA Withdrawal Strategy

My father is retired (age 66) and makes $35K between his pension and Social Security. He also has a traditional IRA with $60K that he is not currently withdrawing from. My mother is currently working (...
4
votes
1answer
189 views

How to report 1099-MISC Box 7 bonus ($0 in box 3), but not an independent contractor and not self employed (payment from client of my employer)

I work for a concessions company, but I received a 1099-MISC from the company's client (the team). It's an end-of-year discretionary bonus for taking care of guests of the team as part of my normal ...
1
vote
1answer
70 views

Do I have to pay income tax and capital gains tax on S-corp distributions when my stock basis is $0?

Consider the following hypothetical: I start an S-corporation as sole owner and employee but contribute no initial capital or assets. My starting basis is $0. (My initial investment is my expertise, ...
2
votes
2answers
239 views

Shared Income System

I would like to share my salary with a small group of family or friends. Is there a way to do this without the income being taxed twice (once for me and once for each friend?
1
vote
1answer
52 views

Self assessment: Entering in sideways loss relief from previous year

Any one au-fait with Self Assessment? I am not sure where/how to fill in the online self assessment form to do this: Claim previous year's losses in one business to claim relief on this years ...
2
votes
1answer
160 views

Is there a deadline to respond to an IRS request for additional documentation?

When I sent in my 2014 tax return late last year, I also sent in an amendment to my 2013 tax return due to a Section 1256 contract loss carryback (I had Section 1256 gains in 2013 and losses in 2014). ...