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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2
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1answer
217 views

Why does increasing my W2 HSA contribution in TurboTax INCREASE my tax due?

TurboTax becomes more inscrutable every year. I was looking for where to report my HSA contribution, then realized it already came in on my W2. I have a $6000 line 12, code W (Employer contributions ...
18
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2answers
3k views

New Salary: UK Income Tax Discrepancy

I was promoted a few months ago and as a result my salary has increased to £59,400. However, prior to accepting the offer I calculated my expected salary via https://www.thesalarycalculator.co.uk/...
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2answers
551 views

Deducting gifts to parents?

I give my mother (a senior citizen) USD$200 amount per month. Can that be deducted from my Federal income tax return? We're both US citizens and my mother receives Social Security.
3
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1answer
43 views

Form W-9 for payments between property management companies

I collect rent on behalf of a client, deduct a management fee, then send the remaining rent to the client. One client's residential property is leased by a company who is a "master tenant." This ...
2
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0answers
31 views

How do I allocate gains on Form 4797 for the sale of a rental property?

I sold a rental property last year, so I'm filing Form 4797. I owned it for several years, and had a new roof installed a couple years ago. As I understand, the land (which cannot be depreciated) goes ...
2
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1answer
204 views

Can I file taxes if I am unemployed but have a child under 3 yrs?

Can I file taxes if I don't have a job but have a child under 3...and if so would I receive any money
1
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0answers
106 views

How do I deal with taxes on a U.S. Savings Bond that matured a few years before it was redeemed?

My parents recently found a 30-year Savings Bond of mine that matured in 2016. I redeemed it at the bank in late 2019. My understanding is the correct way to handle this is to file an amended 2016 ...
0
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1answer
79 views

Can this person use the tax status of qualifying widow on her 2020 income tax return

Please consider a case where I couple, living in the US, has two grown kids (a son and a daughter) (over 40) and the father dies in 2019. The mother inherits the husband’s assets. The couple normally ...
4
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1answer
148 views

Can I use a 529 plan to pay student loans and claim both the state 529 deduction and the federal student loan interest deduction?

At first blush, this sounds like it might be double-dipping. But let's take a look at the new IRS rules. As pointed out in another question, in the U.S. we can now use a Qualified Tuition Program (...
2
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1answer
106 views

Are long-term capital gains considered for ACA subsidy calculation, even if they are taxed with 0%?

If your total income is below a certain limit, long-term capital gains are taxed with 0% (again, up to a certain limit). If you stay below both limits, you are paying zero tax for the year; but - ...
1
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1answer
43 views

Should F2 spouse file 8843?

I have been in the US since 2016 under F1 student visa with my spouse who has F2 visa. Since I am still a non resident alien, I have been filing under single status. However, I learned that my spouse ...
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0answers
37 views

Can't file 1098-T electronically on Turbotax or Credit Karma

Historically, I've been able to claim the American Opportunity Credit that would give a surplus refund of $1000 to help with school while being a full time student and not working
0
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1answer
43 views

F-1 to H-1B Tax Filing Status - 5 Calendar Years?

I came to the US to study on an F-1 visa in August 2014 and graduated in May 2018. Since then, I have been working on an F-1 OPT visa. In 2019, I applied and received my H1B visa - specifically, my I-...
1
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1answer
90 views

Income-Tax and Side-Hustle Providing Internet Related Services

I'm looking at starting a side hustle that provides solely software related services. Like web-hosting, app development, etc. In the near future, I'm not looking for any sizable profit (or any for ...
1
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1answer
91 views

TurboTax had me file for a 1040 instead of a 1040NR. Is there a way I can change this?

It's my first time filing for a US tax return. I used TurboTax, filled up all the necessary information, and I got the result showing a form 1040, which means I got zero amount. I am from the ...
2
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1answer
117 views

Head of houshold: Domestic partner, and child, with joint checking

I am living with my domestic partner and our child, and she contributes about twice what I do into our joint checking account from which all bills are paid. Can she file as head of household? I think ...
2
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1answer
70 views

How to tell the IRS about Roth IRA gains on early withdrawal?

I had to give some of my Roth IRA to my ex-wife, and didn't do it in the wisest manner. How now do I tell the IRS that only about $80 of the $3,570 that I sent to her are taxable and penalizable ...
1
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1answer
81 views

Doing side work no LLC - what to do on W9 form?

I am doing some work for on the side for my former employer. They pay me via an application called square that I use. Its the end of the year so I asked them for a 1099 / W2 and they sent me a W9 ...
2
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1answer
48 views

Income Tax Paypal / Ebay sales (Australia) limits

Work were throwing away a bunch of boxes full of e-waste and I was able to take them for free. I have started selling the items on Ebay and getting paid through Paypal. I believe the max total ...
6
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1answer
150 views

In which country do I pay capital gain taxes, as a German with a US Internship?

This year, I did an internship in the US, and during that time I bought some stocks. Now I am back in Germany, and got dividend payments on these stocks, and also want to sell some of them soon. ...
4
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1answer
359 views

How do I avoid having my revenue taxed twice by the IRS?

I do affiliate marketing for a living. The commission payments get transferred into my business PayPal account and the various businesses also send me a 1099. Normally I would just list the 1099s on ...
13
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2answers
4k views

Can I open a 529 retroactively to pay my student loans?

At the end of the year 2019, congress passed the SECURE Act. This act does many things relating to retirement accounts, but Section 302 specifically relates to 529 account expansions. These changes ...
6
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2answers
2k views

Do I have to wait for my W-2s to fill my tax return for the previous year?

First year out of college (and my first paid jobs ever). I worked at 3 different companies last year (2 as a full-time employee and 1 as an independent contractor (1099-MISC)). Do I need to wait for ...
3
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1answer
29 views

Foreign Earned Income Exclusion for new Green Card holder

This is something I am a little surprised doesn't come up more, but here goes: I am a current resident alien (living in NY). Previously I lived and worked in Dubai for 5 years. My Green Card (by ...
0
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1answer
69 views

HMRC Starter Checklist - Employee Statement

I am going on placement next year and I have to fill out the HRMC Starter checklist form. I worked part time (only two shifts) and the pay I received was not taxed. Does that mean I select statement A ...
-1
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1answer
228 views

What's to stop a person from forming multiple trusts in order to split their taxable income?

Suppose a person who is a beneficiary of a trust holds assets generating $100,000 annual income in one irrevocable trust, and they are taxed by the IRS at about 37% of all income above about $12500. ...
1
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1answer
188 views

Adjusting withholdings for high debt?

I am looking to find out if it would be a good/beneficial idea to adjust withholdings for the next year, and use the extra money to pay down credit card debt. Using rough calculators, I am estimating ...
8
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3answers
377 views

Is it tax-inefficient to receive and pay rent?

Suppose I own a home and live in it. Then I realize I want to move to another part of town that is closer to work. But this is temporary because I don't know what my job will be in 5 years. So I rent ...
0
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0answers
46 views

Contractor Tax Rates [UK]

I worked for 6 months last year as a contractor for a company straight out of university in the UK. I wasn't having to pay taxes with my paycheck but I know I must pay them at the end of the year. ...
0
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1answer
40 views

Trying to understand S corp

Say an S Corp has one owner and earns 300k in a year. It pays wages of 100k. Can the 200k be invested by the S Corp so that the the 200k does not have to be distributed?
1
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1answer
48 views

Marginal cost/benefit of FICA contribution

How do I calculate the marginal lifetime cost and benefit of a FICA contribution? This calculation applies when determining how to structure a business, such as whether a single-member LLC should be ...
2
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1answer
81 views

Tax Strategy: Take Inherited Traditional IRA deduction now, or let the money ride?

How can I best calculate the fiscal impact of these two choices? Take a $50k distribution from a traditional IRA to offset an expense, thus saving taxes now. Leave the money in the IRA, allowing tax ...
3
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2answers
94 views

Taxing Capital Gains in an Earlier Year

I know I will have a large $70,000 capital gain in the beginning of 2020 (due to my selling deep-in-the-money covered calls which will expire, and therefore get exercised, in January). Would the IRS ...
0
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0answers
20 views

If I void paychecks in past quarters should I use IRS form 941 or 941x?

We did some paychecks through Intuit software for educational purposes to see How the process works. We voided them before the end of 2019 but after the quarter in which they were issued. I learned ...
0
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1answer
58 views

Federally Recognized Tribal Income

My understanding is that tribal members of a federally recognized tribe who receive income from 1040 on Line 21 as :INDIAN GAMING PROCEEDS, INDIAN TRIBAL DISTRIB, NATIVE AMERICAN DISTRIB receive a ...
3
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3answers
164 views

If I purchase and simply hold on to a non-dividend yielding stock for an entire fiscal year, will I need to report it on my tax return?

Next year will be the first time I file for taxes. Though I have a pretty good understanding of how taxes work, I just want to confirm whether I need to include stocks that I have not sold and do not ...
0
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1answer
81 views

Tax Calculation for 2019 Self Employed

Currently, I am self employed and I am going to file tax with my spouse. I have below questions on self employment tax. Do I need to pay 15.3 percent social and medicare self employment tax before or ...
3
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0answers
36 views

How Should a US Expat in Vietnam Optimize Compensation Package to Maximize Net Pay?

I may have the opportunity to work on a project in Vietnam starting in early 2020, and am hoping to get some advice on how I should negotiate my compensation package with regard to taxes. I am a US ...
0
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2answers
82 views

How to calculate Income Tax in Germany?

In order to calculate my net salary I am using this calculator and it works pretty well: I have the exact same numbers on my payslips. I am able to calculate every tax by myself starting from my ...
3
votes
1answer
101 views

How to fill in Line 6 on Form 1040 if Schedule D does not have to be filed?

In the United States, IRS Form 1040, line 6 is for Capital Gains. The instructions on the form say: Capital gain or (loss). Attach Schedule D if required. If not required, check here In order to ...
0
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1answer
109 views

My 401(K) plan and form 5500

I live in the United States and have a small unincorporated business. I have no employees and I am single. I have a 401(K) and a Roth 401(K) through E*Trade. Between the two accounts I have a little ...
1
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0answers
54 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, ...
1
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1answer
61 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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0answers
72 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 ...
37
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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 ...
1
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1answer
30 views

Advance Tax on Fixed Deposit Interest in India

Lets say a person makes 30,00,000 INR in a year. So he falls under 30% tax slab. Lets say he also earns 1,20,000 INR from Savings Account Interest and FD Interest. This means, an additional tax of ...
2
votes
2answers
115 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 ...
1
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2answers
80 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 ...
2
votes
2answers
48 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? ...
0
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0answers
44 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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