As of May 31, 2023, we have updated our Code of Conduct.

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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How to estimate "estimated" taxes?

I am trying to figure out how to estimate quarterly tax payments. After some wonderful help on this forum, it seems I'll need to do this for my state, but not for the federal government. From what I ...
user2561523's user avatar
1 vote
0 answers
25 views

How to calculate super amount?

What is the actual super amount if it is $2000 iclusive super? My friend says $190 is the super amount. I couldn't understand how?
Shammi Aktar's user avatar
0 votes
1 answer
49 views

Roth Conversion using up foreign tax credits before and after expatriation

I'd like to sense-check the following scenario, to make sure I don't do something phenomenally stupid and irreversible. I'm hoping that I've correctly understood what I've read on this site & ...
ckp's user avatar
  • 1
0 votes
2 answers
49 views

Standard deduction when moving to US throughout the year

Consider the following context: Person A is moving to the US in July of 2022, formerly not tax-liable in the US (non-reisdent alien). They start a regular employment in the US for the remainder of the ...
dennlinger's user avatar
1 vote
1 answer
58 views

Late filing with overwithholding, coupled with unexpected income in more recent years

TL;DR-ish Can I use any part of my situation to carry forward any amount of refund to next years? It seems so silly to have so much locked up in refunds and then owe penalties when they've had excess ...
Nolan Robidoux's user avatar
-2 votes
1 answer
142 views

Check a bank legitimate [duplicate]

I would like to know if Habib Union offshore bank is legit. They had ask me to pay income tax ($5250) and IMF registering ($25500) to unlock my account. And now they asking to pay for IRA Clearance ...
Ajumma Ajumma's user avatar
1 vote
2 answers
144 views

Can I deduct defaulted Treasury bonds from my taxes owed

I purchase a U.S. Treasury bond. If the government doesn't repay it, may I deduct the face value of the bond from my income tax payment?
Clint Eastwood's user avatar
6 votes
2 answers
788 views

tax filing obligations for class action settlement income of under 10$ (non-resident alien)

I am a non-resident alien having lived in the USA 2017-2019. I received today by postal mail a check for less then $10 due to some class action settlement I had no idea about (apparently my bank ...
Marcus Junius Brutus's user avatar
1 vote
1 answer
39 views

Margin interest deduction carryover when claiming standard deduction

Margin interest is a deductible investment expense on a US 1040 Schedule A as an itemized deduction Margin interest can be carried over year over year until it is fully deducted If the standard ...
arcyqwerty's user avatar
  • 1,231
3 votes
1 answer
218 views

Can I use capital losses to offset income tax in the UK?

In the US, I am aware of the term called ‘tax loss harvesting’ where capital losses can be used to offset up to $3000 income. Is there a similar method in the UK to do this?
lemon-agent5's user avatar
2 votes
1 answer
87 views

When must an employer issue a T4A?

I've worked for some companies as a contractor where they have given me no tax slips or pay stubs of any kind. Is this legal? When must a company issue a T4A? I've heard some do it if you earned more ...
BenderPiece's user avatar
0 votes
1 answer
57 views

As an overseas company owner, what are my tax obligations to the UK?

I'm a dual resident of the UK and Country X for tax purposes. I'm not employed in the UK or Country X. However, I have a single company registered in Country X, which has regular income. The income ...
user122795's user avatar
3 votes
0 answers
35 views

Tax deductible expenses in Canada when moving for work

My husband and I moved for work in Nov. 2022 from Ontario to BC. We own a home in Ontario which has been vacant since (could not be rented due to slow demand in winter time although we had been trying)...
systemdebt's user avatar
0 votes
2 answers
100 views

Establishing South Dakota Residency: Alternatives to Leasing or Using a Friend's Address

I'm considering relocating to South Dakota due to its advantageous tax environment compared to my current high-tax state. I plan to use a mail-forwarding service for to obtain a South Dakota driver's ...
will_durant's user avatar
0 votes
1 answer
69 views

If an Humanitarian Parolee sold property (car, furnitures) from their origin country and have recently move to the US, do they have to pay tax on it?

Let's say a humanitarian parolee from Nicaragua, or Haiti has put their belongings on sale just before they leave for the US, but after 7 weeks in the US those belonging(car, furniture) has been sold, ...
Dr4ke the b4dass's user avatar
0 votes
1 answer
85 views

IRS Setting up a payment plan

A friend of mine has filed his/her taxes using a paper return with money due. The IRS has yet to process the return. Can my friend setup a payment plan with the IRS now? Should my friend wait for the ...
Bob's user avatar
  • 1,378
0 votes
0 answers
47 views

J1 visa two year exemption rule

I have been granted a fellowship for a postdoctoral position at a university in the USA starting from September 2023 and with two years duration. The fellowship is from a non-profit European ...
user122753's user avatar
8 votes
4 answers
3k views

Are miles driven for business deductible expenses if the travel expenses are reimbursed?

I completed some work for an organization. I was paid as an independent contractor and expect to be issued a 1099. For one part of the work, I was required to travel a significant distance (by car). ...
nuggethead's user avatar
  • 1,687
2 votes
1 answer
151 views

In the UK, is it more productive to pay wages into a pension than put money into investments?

I am lucky enough to have a sum of money - about £40k - which I have no particular need or pressure to spend. I had been considering investing it in an index fund but one thing that concerns me is ...
Bob Tway's user avatar
  • 1,249
10 votes
2 answers
5k views

I overpaid the IRS. Can I ask for a refund or credit next year?

For US federal tax this year, I mistakenly paid more to IRS than the amount I owe. I don't have a way to change the payment. Is it possible to ask for a refund or credit next year? Edit: I am owing ...
Sayan's user avatar
  • 203
0 votes
2 answers
84 views

Where to report foreign earned income on 2022 1040 form

In 2021 and earlier (PDF), line 1 of the 1040 form said "Wages, salaries, tips, etc. Attach Form(s) W-2". So I would include foreign earned income in that line (and then deduct it further ...
Stephen Powell's user avatar
0 votes
0 answers
41 views

Bond interest reported on Box 3 of a 1099-MISC

A friend of mine has a significant amount of variable interest bonds. In certain cases, I believe the issuer could have paid the bond off with stock. His broker reported the interest on these bonds on ...
Bob's user avatar
  • 1,378
1 vote
1 answer
70 views

Question about taxes on Roth backdoor IRA

Last year say I made $100,000.00 in income through my job (that is the amount on my w2 in box 1). I have a 401k through my job, so I use Roth backdoor IRA, so last year I moved 6000 into a traditional ...
Ufder's user avatar
  • 147
0 votes
1 answer
65 views

Does the Section 121 exclusion apply if I demolish and rebuild?

If I purchase a home, live in it for two years, demolish it, and build a new house, can I still claim the Section 121 exclusion? Or does it reset the clock? From this 2010 case, it seems the clock ...
A_P's user avatar
  • 103
3 votes
1 answer
117 views

What Schedule C Health care Expenses can I deduct?

I am helping my daughter do her taxes, and have a question about what deductions are appropriate. She is on her own, not a dependent anymore but still on my insurance as she's under 26. Her income is ...
JTP - Apologise to Monica's user avatar
0 votes
1 answer
24 views

H4 visa spouse Taxes : Joint or Separate

I'm working on H1B visa since Oct 2019 in the US and married in 2022. My spouse (on H4 visa) is working in Canada and has income in Canada. She doesn't have any income in the US and has no W2 and SSN/...
usertaxes09's user avatar
-1 votes
1 answer
43 views

Can my S Corp pay my personal tax liability and can my S Corp be able to deduct the taxes?

I understand S Corps are flow through entities so if I am paying the net income on my personal taxes then can the S Corp pay for the taxes due? Also can the S Corp be able to deduct the taxes paid as ...
Dallat's user avatar
  • 1
10 votes
1 answer
2k views

Would it benefit me to file taxes this year?

Neither my wife or I have worked in over a year. She needed a liver transplant and we left our home in Alaska and moved to the East Coast for better health care. During this entire time my family has ...
Soren Adams's user avatar
3 votes
3 answers
954 views

Can I file IRS form 1040 first then wait to pay until the deadline?

Normally I file and pay taxes at the same time. Is it acceptable to file first, perhaps months before the payment deadline? I ask because I have a large tax liability, and would prefer to put it off ...
Bryce's user avatar
  • 2,490
28 votes
1 answer
5k views

If I overpay estimated taxes in Q1, am I allowed to underpay in the other quarters?

I'm an independent contractor and I sent in my first quarterly estimated federal tax payment for 2023, but I realized that I went way over. Is it possible to pay less in the coming three quarters (...
fishingforgoats's user avatar
0 votes
1 answer
34 views

Tax: When filling out a Schedule C for a partnership, do I report the total sales or just my share as a partner?

Say I'm part of a 2 person partnership in which I own 50% of the business. When filing my personal Schedule C income related to this business I'm asked to report the "total receipts and sales&...
Donuts's user avatar
  • 167
0 votes
1 answer
36 views

For an 83(b) election, do I need a 1099-MISC if I am not a W-2 Employee?

I am working as a contractor with a startup company. The only compensation I am getting is RSU's. I was given the RSU's last year and made the 83(b) election within 30 days. I have been trying to ...
spectacularbob's user avatar
0 votes
1 answer
61 views

Taxes: What is the correct way to file freelance income?

I've been living and working remotely as a freelance software developer in America, but for European clients. Each month I write them an invoice for my contract hours and they pay me (in EUR, if that ...
Donuts's user avatar
  • 167
1 vote
1 answer
71 views

Do we need to file Form 8958 when we do Federal return, even though all our income are only from employment and interest?

We moved to Washington State last year which is Community Property State. We (myself and spouse) don't have any community income (income generated by shared assets) ; We both have income reported in ...
Sur Esh's user avatar
  • 23
1 vote
1 answer
54 views

Massachusetts State Tax: Can one at the same time apply a FICA deduction on the state tax return and ask for a FICA refund?

I am J1 nonresident for tax purposes using the Sprintax software and I ran into a bit of a conundrum. The software is applying a FICA deduction for my MA state tax return but I am claiming a refund of ...
MA tax payer's user avatar
1 vote
1 answer
20 views

Should Box 1 and Box 2 of Schedule K-1 be combined on Form 8582 or Schedule E?

I received a K-1 with a positive value X in Box 1, and a negative value Y in Box 2. The partner's instructions for K1 seem to treat them completely independently, even if both are passive, although ...
merlin2011's user avatar
1 vote
0 answers
18 views

Where should the sale of a 506(b) real estate syndication be reported on a limited partner's tax return?

I am a limited partner in a 506(b) real estate syndication, and the property was sold in 2022. Over the past few years, I have reported passive losses using Form 8582 and Schedule E. If the property ...
merlin2011's user avatar
6 votes
2 answers
501 views

Best Option to Fix IRA Contributions and Do I Need to Do Tax amendments for Previous Years

Please help!! I contributed $6000 to Roth IRA in 11/3/2020. In 12/22/2020 I contributed to Traditional IRA $6000 (I did not know that $6000 was for the combination of Roth and Traditional). In 1/14/...
Rachid Brah's user avatar
1 vote
1 answer
2k views

Whose responsibility is it for paying SS and Medicare?

My previous company never deducted Social Security and Medicare taxes for the last 6 years. In all these years, I have been filing the taxes using the exact W2 information that they provide. I think ...
ACE's user avatar
  • 147
4 votes
1 answer
368 views

Amending Taxes To 'Cheat' Student Loan IBR Payments?

I can find a lot of resources that talk about the impact that different filing statuses have on student loans (example1, example2). My wife is pursuing a Public Service Loan Forgiveness, meaning the ...
Rob P.'s user avatar
  • 1,065
1 vote
1 answer
60 views

What is the distinction between "earning untaxed income" and "acting as a sole trader" (UK HMRC)

I live in the UK and have a full-time job paid in the usual way under PAYE. In addition, I have received small amounts of income from various organisations (honoraria in return for activities ...
avid's user avatar
  • 494
1 vote
2 answers
162 views

Why doesn't anyone look at the combined federal and [Your State] tax rate, grouped by bracket?

Why doesn't anyone look at the combined federal and [Your State] tax rate, grouped by bracket? Let's say like the Federal + New York tax rates? Wouldn't this determine the incremental amount of total ...
Katsu's user avatar
  • 475
3 votes
1 answer
255 views

Reporting taxes withheld from social security check on 1040. Do I need to attach SSA-1099? They only send one copy and it says do not return to irs

I have a question about reporting taxes withheld from my social security check. At present, I have 10% deducted for federal tax. Do I need to attach SSA-1099 to form 1040 like I do with 1099-R? They ...
David's user avatar
  • 83
3 votes
0 answers
78 views

Mortgage interest deduction limit: omit house?

We have an unusual situation with the mortgage interest deduction limit. We moved late in the year; as a result, we had two mortgages, #1 and #2. #1 was most of the year and had a typical amount of ...
sideband's user avatar
16 votes
1 answer
3k views

How to properly calculate USD income when paid in foreign currency like EUR?

Say I live and work in the United States, but mostly do contract work for European organizations. This would mean that I very often invoice and get paid in EUR, which initially might go into a EUR ...
Donuts's user avatar
  • 167
1 vote
0 answers
26 views

How to report dividend reported on French form 2777

I live in the US, but the parent company of my employer is headquartered in France. It's a privately held corporation, and I received some stock as a bonus a few years ago. Last year they underwent ...
Barmar's user avatar
  • 1,827
0 votes
1 answer
46 views

Should capital losses on RSUs sold for taxes be matched against retained shares in the original vest or only future vests?

My company uses a "Sell to Cover" strategy in order to withhold money for taxes. That can result in the following situation: I vest 100 shares on Day 1. The company sells 22 of these 100 ...
merlin2011's user avatar
2 votes
1 answer
295 views

AirBNB not in the US being paid in a US bank

I have a question about the use of W8ECI requirements. I am a foreign nonresident noncitizen living in South America. I have opened a savings account in a US bank filing a W8BEN as I do not live in ...
Alejandro Pastor's user avatar
0 votes
0 answers
22 views

Unrelated Business Taxable Income (UBTI) exceeding limit in IRA

I've kept an MLP stock in an IRA for several years not wanting to deal with the K-1 tax complexities. However it looks like this year my Unrelated Business Taxable Income (UBTI) will exceed the $1000 ...
public wireless's user avatar
0 votes
1 answer
41 views

How to calculate imputed interest on options trades?

All interest income (including imputed interest) must go on 1040 line 2 taxable interest. For example, if the interest rate is 5%, then I can buy 100 T-Bills for $95 each. After 1 year I get $100 per ...
personal_cloud's user avatar

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