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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.

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68 views

How can I fill Line 1 of T1213, when I can't know my annual salary and Union deductions in Dec yet?

My dad is paid hourly but sometimes he works over-time. His employer issues his T4 in Feb 2020. He has $50K in RRSP he never deducted. Let BPA mean Basic Personal Amount. Line 1 of T1213 = Optimal ...
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52 views

Approximate tax savings if NYC employee moves residence from NYC to NJ?

How much would an employee expect to save on tax bill by moving residence from NYC to NJ, approximately? Assume $200,000 income, single, no dependents, $0 for everything else (IRA, 401k, investments, ...
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3answers
9k views

Is one spouse responsible if other failed to file taxes

I have a friend who's in a unique situation. She has not worked since she and her husband were married 7 years ago. He has typically worked contract jobs receiving 1099's at the end of the year. She ...
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22answers
24k views

Why would you ever turn down a raise in salary?

Related to a comment on this question: Is it true that Income Tax was created to finance troops for World War I? Does it ever make financial sense to turn down a raise at your job? It was mentioned ...
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1answer
55 views

What does it mean to reduce tax on Lump Sum payments, rather than Salary?

See screenshot from the CRA T1213. In requesting to reduce the tax withholding from an employment payment, you can select either 'Lump sum' or 'Salary'. What does "Lump sum" mean? How is it different ...
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2answers
89 views

Taxes & Work Authorizations for US Citizen Working in US for Ireland-based Company

I'm applying to a remote job that is based in Ireland. I live in and would work from the US. One of the questions on the application made me pause: "Do you require visa sponsorship?" Obviously, I ...
4
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1answer
228 views

Regarding W-8-BEN for annuity inheritance

My father worked in USA for 11 months in 1985. He made contribution to an individual retirement plan (tiaa-cref) only during that period. The money since then has grown. He expired in 2016 aged 68 ...
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1answer
61 views

How to declare interested earned from unmatured NSC (5 years) in ITR

5 year NSC shows its interest earned is reinvested every year, So I can clam it under 80C. But there is no interest entry made by the Post Office department against NSC. How can I declare such ...
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1answer
106 views

Tax Return Married NRA: Is Glacier Tax Prep fill the 1040NR out correctly?

I am an F1 student (NRA) and Married. Based on the new 1040NR(-EZ) instruction a married NRA cannot claim more than $5,000 deduction (1040NR Instruction). Glacier Tax Prep is a software provided to ...
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1answer
4k views

Do I have to file for tax if I don't work at all but just received 1098-T form from my college?

I don't work at all right now. So I thought I wouldn't have to pay for taxes. But then I got this 1098-T form from my college a month ago. So now I'm confused. Can I/Do I still have to file for tax ...
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1answer
74 views

Income tax exemption (in India) for interest on second home loan

I own a house in Bangalore (India) for which I had earlier taken home loan and which was fully closed nearly 7 years ago. This property has been let out as I am working & staying in Mumbai. I have ...
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2answers
112 views

Reclassifying income from passive to active for actively managed rentals

I own multiple rental properties and a property management LLC. I would like to start paying a 10% management fee (industry standard rate) on all my rentals to my property management LLC. My ...
2
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2answers
46 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? ...
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1answer
98 views

How to exactly find out income earned from Fixed Deposits?

I have an SBI savings accounts with autosweep facility such that it creates FD if the amount goes above a certain limit. Now any interest earned from FDs is taxable. However this year, I don't see ...
2
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1answer
573 views

Does an extended stay hotel qualify as “living quarters” for New York tax form IT-203?

I was in New York City for about 3 months last summer for an internship. During that time, I lived in an extended stay hotel (in NYC). Item H of the New York tax form IT-203 asks whether I "had ...
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1answer
101 views

Non UK company hiring local staffing

Do I need to issue any tax form to the local staffing we hired in UK for a small event? We are an Event company based in US.
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1answer
63 views

Should I indicate on Form 1 for 2015 for Massachusetts my current address or my address in 2015?

I am filling out a 2015 Form 1 (mirror) for the state of Massachusetts in the United States. My address has changed since 2015: I now live in a different state in the United States. Am I supposed to ...
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2answers
62 views

Income tax on paypal ( Australia )

I had some money in a foreign PayPal account which I earned before coming to Australia. Later, I moved to Australia in July 2019 as an international student. And in order to withdraw the money to my ...
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11answers
16k 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 ...
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1answer
126 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 ...
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2answers
151 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.
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0answers
43 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 ...
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1answer
118 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 ...
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1answer
189 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 ...
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1answer
178 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 ...
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2answers
88 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 ...
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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 ...
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1answer
570 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
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1answer
137 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 ...
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1answer
55 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 ...
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1answer
187 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,...
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3answers
251 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
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1answer
69 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. ...
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0answers
54 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 ...
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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
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1answer
66 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
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3answers
110 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 ...
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0answers
34 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
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1answer
179 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
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0answers
54 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(...
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0answers
153 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
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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 ...
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1answer
44 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 ...
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1answer
113 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 ...
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2answers
62 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 ...
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2answers
103 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 ...
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0answers
51 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 ...
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1answer
323 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 ...
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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 ...
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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, ...