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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3
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2answers
594 views

The Canadian dividend tax credit: Why is it that someone can earn a lot in dividends but pay no/little tax?

from this link: http://www.taxtips.ca/glossary.htm#Dividend For an individual with no income other than taxable Canadian dividends which are eligible for the enhanced dividend tax credit, ...
3
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1answer
103 views

When spending parts of a year working in the US, and other parts working in Canada, where do I file my taxes?

I worked both in the US and Canada last year, while being resident in only one country. Am I required to report all of my income from both countries to both governments, or is there some rule or ...
8
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3answers
574 views

How safe will Roth IRAs/401(k)s be going forward re: US's deteriorating fiscal position?

I've on and off wondered how "safe" Roth accounts are and things like this anti-Roth screed in the LATimes and this blog post at the Atlantic talking about the sad fiscal shape of the US has me ...
5
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2answers
128 views

I would not like to rush to file taxes at the last moment. Does it make sense to file Form 4868?

Although I have all my tax information now in one place, I would like to study itemized deductions better and make sure that I file all my taxes correctly and maximize my returns. Does it make sense ...
5
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3answers
93 views

Designating a Roth contribution to the 2010 tax year: How does it work?

I would like to contribute $2000 to my Roth IRA and designate the contribution for the 2010 tax year. I would also like to know just how it works and how to do it. I know that designating this for ...
6
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1answer
669 views

If my parents claim me for taxes do I have to pay taxes?

This is kind of a late question. I am contractor at my current job (19 years old) and I have to pay taxes this year. If my parents claim me will the taxes I owe just come out of the money they get ...
4
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1answer
56 views

When filing part time residency how does one determine interest earned in which state?

I am filing in two states. My residency ends up being about 60-40. On the state forms it asks Interest and Dividend from State sources. Do I have to claim it on both, or do I just claim it on the ...
2
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2answers
878 views

What is the real tax benefit of Tax Free Savings Accounts (TFSA) vs normal (unregistered) savings or investment accounts?

From an investor's point of view, are investment options that are allowed to grow 'tax free' a beneficial choice? The investor is anyway going to pay tax once he withdraws the money*. What I am ...
3
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2answers
291 views

Saving money after paying income tax

UPDATE 1: I ask this question because I don't understand why there is a large market for tax free savings account, when your savings should already be tax free... ORIGINAL QUESTION: I am in the UK, ...
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2answers
876 views

Does anyone know what the UK tax code MI means?

Does anyone know what the UK tax code MI means. direct.gov.uk doesn't help. Thanks.
3
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1answer
557 views

Reporting vested and taxed RSUs on 2010 tax but unsold

I received some RSUs in 2010 and I'm wondering how I should report these on my taxes. The RSUs were taxed when they were issued so there were some shares withheld for tax purposes. I did not sell any ...
10
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2answers
528 views

What is Alternative Minimum Tax (AMT) and how does AMT get calculated? [U.S.]

What is Alternative Minimum Tax (AMT) in the U.S.? How does Alternative Minimum Tax get calculated? What conditions are likely to trigger an AMT assessment versus a regular tax assessment? Are ...
3
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1answer
4k views

How to report “short term capital gains distribution” to IRS

I am writing Sch D software and researching the proper way to report certain capital gains distributions from leveraged EFTs, for example TYH. These distributions are reported as "short term", see ...
4
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2answers
593 views

Is it financially-beneficial (tax-wise) for couples to be married, or to remain common-law, in Canada?

Which is more beneficial to your bottom-line (disregarding the cost associated with actually getting married, and assuming no children are involved).
6
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2answers
350 views

Do I need to start a company?

If I have access to a big hall/room in a building I own and I wanted to convert it into a personal gym. Then one day I say to a friend, you can use my gym if you give me $100 a year, and I will give ...
2
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1answer
235 views

Does India require its citizens to report income wherever they reside and earn (abroad)?

I have read that: "The U.S. requires its citizens to file tax returns reporting their earnings wherever they reside. However, there are some measures designed to reduce the international double ...
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2answers
1k views

Tax filing for two states and becoming married mid-year

I moved from VA to PA in late May 2010. I continued working for the same company and got a raise during the move. I also became married in mid June 2010. I have to file state tax returns in both ...
6
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1answer
2k views

How can I make a Roth IRA contribution AFTER filing taxes for 2010?

I just e-filed my 2010 taxes and have received a direct deposit of my refund already. I just realized I'd like to make a contribution to my Roth IRA (and my wife's) for 2010. How can I do this? Do ...
2
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4answers
8k views

How can I calculate how much tax I will pay

I'm a consultant thinking of taking a full time salary job. I live in WA state and have a family. How can I calculate how much tax (federal, social security, medicare) I will pay? I've used http://...
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1answer
423 views

Can I claim child care expenses as a deduction on my federal return in Quebec?

My friend want to claim Child Care expense for Federal Tax, but as she lived in Quebec, a large part of her children's day care fees are already returned by Quebec government. So could she still ...
3
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1answer
109 views

What should you do if you have misplaced your previous tax returns?

What is your best option if you have misplaced those previous returns?
2
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1answer
157 views

Can you claim being a care giver against income tax in Canada?

My brother is on ODSP in a wheel chair. He lives with mom, she is care giver. Last year I ran across something where she can claim that on income tax. I gave it to her, she lost it, and I don't ...
2
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4answers
239 views

US Tax return upon returning to UK

I have an offer from my employer to move to New York, but I am concerned about what happens when I choose to return home to the UK. I understand that there is a double taxation treaty between the UK ...
4
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3answers
297 views

Are taxes applied to expense reimbursements?

I have recently accepted a new job which requires me to move across the country and as part of my employment I was offered a signing bonus to assist with relocation. It just barely occurred to me that ...
3
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4answers
6k views

Contract job (hourly rate) as a 1099: How much would I be making after taxes?

I have an opportunity that would pay me $70 an hour but it would be corp to corp, which as far as I understand would mean I would need to do all my own taxes and Social Security. I live in Raleigh, ...
10
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3answers
21k views

Do the tax consequences make it worth it for me to hold ESPP stock?

Disclaimer — I've read What should I do with the stock from my Employee Stock Purchase Plan? and the answers seem to be both slightly wrong (from what I know) and contradictory, which is why I ...
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1answer
1k views

Filing Tax on Income Received from iPhone App

I have two applications in the app store which are doing fine! I wanted to know how do I report the income to the IRS that I received from my iPhone apps. I called IRS and they told me to report as ...
2
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2answers
120 views

Financial Responsibility for Tax Purposes

I am fully "financially responsible" for a property in the United States that is not in my name. I made arrangements with the previous owner to take over payments on the property and assume full ...
3
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1answer
975 views

In Canada, can tuition paid by an RESP withdrawal be claimed on the income tax return?

Can tuition fees be claimed on the tax return if the money was withdrawn from an RESP we've been contributing to?
3
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1answer
2k views

In India, does a company compulsorily have to file income tax on my behalf?

I work in an IT company in India. I get my monthly salary after monthly tax deduction as per TDS law. The tax filing deadline as per Indian government is 31st July, but my company has a deadline for ...
6
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2answers
1k views

Best way to pay US Federal taxes on unpredictable royalty income on time throughout the year?

My wife collects some income in the form of royalties on a book. What I've read seems to indicate that we should try to estimate quarterly income and pay quarter-to-quarter. However, because her ...
18
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1answer
417 views

What do you do if an employer underreported tips?

I've been helping a friend put together her taxes. Going through her W-2, she noticed that at a restaurant she worked at, the employer has vastly underreported her wages and tips, apparently including ...
6
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2answers
579 views

Tax implications of having some self-employment income?

I worked as an independent contractor for a short time this year (summer), bringing in under 5K in earnings. I have received all of my W2's at this point and am preparing to do my taxes this weekend. ...
4
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1answer
419 views

USA to Canada emigration and income tax

From January to August 2010 I worked in the USA and then I moved to Canada where I'm a student. Do I file an income tax return in Canada, USA or both? (If Canada, how do I get all of the deductions ...
2
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2answers
161 views

Where on tax return to deduct IRA distributions made directly to charity?

Where on the Federal tax return does one subtract RMD (qualified money) distributions that have gone directly to a qualified charity; the 1099-R form reports the sum of ALL distributions, i.e. regular ...
4
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2answers
220 views

Mortgage interest income tax deduction during year with a principal residence change

In 2010 my residency changed from the home I own to a home I'm renting, but I owned the mortgaged home all year. Is the deductable amount of mortgage interest paid pro-rated based on the date I moved?...
2
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1answer
112 views

Change in taxes with change in residency status in U.S.?

I am on a student F-1 visa in the United States, and have invested in a number of U.S. mutual funds through Vanguard. Questions: Do I count as a non-resident alien OR a resident alien for tax ...
6
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1answer
1k views

Ontario HST Rebate: Is the HST rebate taxable / to be included in one's income?

Is the HST rebate taxable?
2
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1answer
48 views

Is there an online resource that provides a current and comprehensive list of US Federal tax deductions and credits for individuals?

There are lots of sites out there that have lists of common tax deductions/credits and several that list ones that people often forget to take. However, is there a good resource that provides a ...
4
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2answers
823 views

Side work taxes higher if regular job salary higher?

Simple question. If Person A makes $150,000 at their regular job (W2) and brings in $5,000 on a side job (1099-MISC), do they owe more in taxes on the $5,000 versus Person B, who earns $50,000 (W2) at ...
4
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2answers
376 views

The IRS incorrectly changed my return. Is it too late to do anything about it?

My wife and I purchased a home last year and claimed the first-time homebuyer credit. After filing, we received a notice that our return had been changed, and our refund had been adjusted down exactly ...
3
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3answers
334 views

At what point does a hobby turn into a business?

Is it based on how much I earn? if so, can I re-invest all of the income back into the hobby and still call it a hobby?
10
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1answer
6k views

I'm self-employed with my own LLC. How should I pay myself, given my situation?

I do a ton of freelance web design and decided to setup a simple LLC so I could have a credit card to make business purchases with. From my limited understanding, I can choose to be taxed as an S-corp ...
6
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2answers
350 views

Best way to fund solo 401k account in cash crunch?

I'm Self-employed in the US. 2010 was a good year, and I am facing a big income tax bill. Will owe $18-20k in April. I can reduce that significantly if I max out my solo 401k at $45k. Haven't made any ...
3
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1answer
806 views

How can I determine why I received a Form 1099-G?

I received a 1099-G Tax Document in the mail today. Is there a way to determine why I got this and what it is related to?
4
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1answer
202 views

First-Time Homebuyer Credit: Did not get my housing tax credit yet. What should I do?

I feel that my new accountant has dropped the ball. In doing my taxes, he failed to get me and my wife the new home tax credit. In looking into it, those who never owned a home were to get $8k back ...
4
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2answers
387 views

This is my first job and I've only worked for 4 months in 2010. With a default withholding, should I expect a large refund?

I started my first job out of college in September. I claimed no deductions on my W-4 at that time. My company is withholding enough each month to pay 1/12 of the tax on my yearly salary. I have ...
9
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2answers
10k views

Does the sale of personal items need to be declared as income on my income taxes?

I have been selling some books that I own. I am selling them at a loss (less than I bought them for and less than market rate). However, I have gotten about $1,400 in income minus $400 for shipping ...
6
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1answer
403 views

Historical US federal income tax rates

Is there any good online source for historical federal income tax rates in US comparison? I'll explain the problem: there are may good sources for marginal rates and income brackets, what I am ...
4
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2answers
641 views

What is exactly is considered taxable income when you retire?

I'm in my 30's and trying to figure out whether I should convert some of my traditional IRA funds into a Roth. The funds would be taxed at 15% based on my current taxable income. So, I need to best ...