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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1answer
47 views

Where would printer ink go in Statement of Business Activites for tax?

I'm an independent contractor. I bought printer ink for the printer I use exclusively for work. On the T2125 where would it go? I'm guessing either lines 8810 or 8811: "office expenses", or "supplies"....
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1answer
73 views

Tax breakdown for bonus income

Say the bonus is $8000 and $6800 are set for a 401k (pre-tax) deduction. Here's the tax breakdown. Does this look right? Shouldn't the taxes be calculated on the $1200? ($8000 minus $6800 due to pre-...
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Is this corporation electing to be an S corporation beginning with this tax year?

I had a question about what to put for this answer in section G of Form 1120S. I already filed Form 2553 the prior year to be accepted as having S-corp tax status for my LLC. Do I put "No" here ...
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1answer
86 views

Do I owe federal/state tax if my deduction is greater than my income?

I'm currently filing with TurboTax for my first (official) year as a freelancer and had a question about how my tax owed is being calculated. I just do this stuff on the side (full-time student), so ...
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3answers
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When filing taxes, how do I report “informal income” for which I don't have any forms?

This past summer, I worked a normal summer job and received a W2 form. However, I have also been tutoring two fellow students at the university I attend. They have been paying me "informally"...
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How do I record roll over of IRA and CMA into the purchase of service credits on my federal income tax?

I work for the a county government with its own retirement system. I served about 10 years in the military. A couple of years ago I found out my dad had put money in an IRA and a UTMA CMA for me. I ...
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1answer
112 views

How do I handle US State Income Tax for the 2020 COVID-19 Coronavirus Filing Extension

While the IRS has a page on the Coronavirus impact is there any resource on handling the various State Income taxes. Are they extended like the Federal Income tax or do I have some relief due the ...
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111 views

Does money awarded from winning a hackathon need to be declared as income, within Canadian tax law?

The hackathon (competition where individuals/teams compete by completing some code project within a short period of time) was open to all members of the public. The competition took place just before ...
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427 views

Does the postponed tax-filing deadline affect Roth IRA contribution deadline?

Since Mnuchin has pushed back the filing deadline to July 15th this year (IRS announcement and Notice 2020-18), does that also push back the deadline to contribute to a Roth IRA? irs.gov says this ...
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Tax Residency under FATCA and CRS

I am an Indian citizen and a PR holder in Germany. I am opening a depot account in Germany and there is a question about Tax residency. I would like to know if I am a resident for tax purposes only in ...
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tax filing for F1 husband H1B wife

We migrated from India and have been in Arizona from July 2015. I have filed taxes as an individual since I am on an F1 visa. My wife started working since October 2019 and has her own H1B. She was my ...
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Income tax on property sale through LLC in another state

I was a small-time partner in an LLC that was set up to flip a house in NJ, and I live in MA. The LLC was set up in NJ, bought the old property, flipped it, and sold it. I received a K1 from the LLC. ...
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Why am I not allowed to add to what my employer deferred for my 401k?

My employer deferred 6% of my income in 2019 to my 401k. I would like to now contribute up to the maximum limit of 19,000 in order to reduce tax liability. However, turbotax is saying that my income ...
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1answer
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Is Money in LLC Bank Account Taxable?

If I maintain a business bank account for my LLC in the US, and if I let the money I make from my business remain in the business account (without withdrawing to my personal bank account) and use that ...
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Tax status decision

I left the USA for India on 1/31/2019. I was present in the USA in 2018 but for 15 days, and for the whole of 2017, and in 2016 except for 15 days. Will I be classified as a resident alien, non-...
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I work remotely for a company in another state. Both states are witholding taxes from my paycheck. Is this right?

I live in Pennsylvania. I work full time 100% remotely for a company that is located in Connecticut. On my first paycheck I was surprised to find that I was having state income tax withheld by both ...
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Residency Questions for International Student while filing Tax

I am an international citizen. I studied in New York City in 2019. I interned in California during the summer for about 3-4 months. On December 25th, I left NYC for my home country and returned to ...
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Points paid on purchace of principal residence shows up twice

I received two 1098 tax forms this year because I got a mortgage from one lender and then after a few weeks they sold the debt to another lender. Both forms show that there are "points paid" on the ...
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3answers
209 views

Mistakenly filed as Exempt from income tax witholdings for entire year 2019

I am a basic 30 year old filing Single, W2, healthy working individual. No dependents, no additional schedules, capital gains or losses other than Student Loan interest expense. I started a new job ...
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146 views

Nonresident aliens do not need to pay tax on earned interest?

I am a nonresident alien living in the USA and paying federal and state taxes on my salary. I am working in a university in Colorado with a J1 visa which is valid from 06/24/2018. I have a social ...
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1answer
68 views

What taxes and fees to expect for income from Germany to USA

I am setting up a contract for freelance work that will be done from the USA for a client in Germany. At what rate will income from Germany to the USA be taxed? Are there other fees to think about?
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H1B Temporary Worker/ 1099 MISC Income

I am a H1B temporary worker in the united states at the moment. Last year, there was a pilot TV series filming in our apartment of residence which resulted in some inconvenience for me as a resident. ...
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1answer
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Is a IRS filing status of “qualifying widower” always equivalent to “married filing jointly”?

Are all applicable filing statuses are always explicitly spelled out in every IRS tax form, or are certain shorthands/assumptions made? For example, the 2019 Form 8995 says it may be used to ...
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1answer
49 views

Must 529 withdrawals be made the same year as student loan payments to avoid taxes and/or penalties?

Background The tax law definition for Qualified Higher Education Expenses (QHEE) was amended (signed into law in December of 2019) to include student loan payments (to a maximum of $10,000). 529 ...
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2answers
277 views

How much dividend tax will I pay while also earning a salary?

I live in UK, I have a day time job where I earn around £26,500 per year, I am also running my own limited company, and I just received a dividend of £60,000 My accountant told me that I will need ...
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1answer
37 views

As a Self Employed LLC filer living in NYC. How can I estimate my taxes? Is there a Tax filing form simulator I can input numbers into?

I have the following example values of: Self Employed LLC Income: 50K (Computer Repair Business) Married filing jointly 2 children No mortgage or property. We rent. Paying for daycare - $800/month. ...
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24 views

Which can I “Request to reduce tax deductions at source” for? 1. EI, 2. CPP, 3. Union deductions, 4. TTC, 5. DCPP?

I am completing T1213 Request to Reduce Tax Deductions at Source, but which of the following can be reduced too? EI? CPP deductions? Union deductions? TTC 2-month Pass? employer's defined ...
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1answer
1k views

How does a Child Tax Credit work to reduce my taxes?

Let's say I make 100K a year from my business and I have 3 kids under 9 years old. I read that each child can give me $2000 child tax credit. So if my 100K business income is taxed and say its 40%: ...
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2answers
92 views

In the U.S., what is the simplest way to establish a payment plan for back taxes?

I live in MD, U.S. My wife and I haven't filed taxes since 2014. We are sure we owe a large amount of money. We have money to throw at the problem, and would like it settled in the most painless way ...
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7answers
19k views

Why do American dual-high-income couples get legally married?

If each member of a couple makes a high income, they pay much more U.S. income tax if married. So it makes sense for them to avoid legal marriage. They can still do a religious ceremony or a ...
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37 views

US Citizen living permanently abroad working for US company vs State and Local taxes

I am US and EU citizen and I am going to start working remotely from EU for US company. It's going to be a full time employment (w-4/401k etc). Am I required to pay state and local taxes (NY in this ...
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28 views

2020 W4 Allowances? [duplicate]

What the heck is going on with the new 2020 w4? Allowances are gone and there's no clear relation on what to specify to get the same withholding amount you used to get when claiming an allowance ...
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1answer
49 views

Should I report Employer Tuition Assistance? (what if it's paid after tax year?)

I live, work and attend school in the U.S. My employer has a tuition assistance program in place that covers 100% of tuition and eligible expenses up to $5000 per calendar year. My plan was to attend ...
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1answer
68 views

How does one calculate their Gross Income using Quickbooks Online that is to be reported for Tax Filing?

Using quickbooks online, I'm able to generate my Profit and Loss statement and I see my Net Income for the year 2019. Is this the final Gross Income number that I will be reporting on my tax return or ...
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0answers
53 views

RRSP, TFSA — Which ought I buy Puts of US-traded ETFs?

My RRSP, TFSA, and non registered accounts at Questrade all have Contribution Room (1. is this correct term?). I now just hold just CAD, no USD. I know Norbert's Gambit. To minimize taxes, avoid ...
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0answers
98 views

If my job is exactly the same across three employers, is it considered one job or three for tax credit purposes?

The state of Oklahoma has a tax credit for engineers working in aerospace, described in form 564. The definitions on page 2 specifically state under "Qualified Employee": [the employee] was not ...
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1answer
69 views

Break-even for itemized deductions in Maryland

The federal standard deduction for married filing jointly in 2019 is $24,400. The Maryland state standard deduction is only $4,550 and you cannot itemize on your state return unless you itemize on ...
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1answer
140 views

Variable Rate Bonds and NQSI

I was looking at a friend's 1099 and I saw the term NSQI. It was for a variable interest rate bond. Am I correct that means non-qualified stated interest? The 1099 showed both the interest the bond ...
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1answer
138 views

How should I treat my Proof of Stake (PoS) rewards on my tax return?

Let me know if I'm wrong, but I don't think the IRS really has any clear guidelines on how to report Proof of Stake rewards. Some resources say to treat it as dividends or interest, but just simply ...
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1answer
32 views

What is the deadline to file an amended tax return?

About a week e-filing my taxes this year one of my brokerage accounts sent me a corrected 1099-div. Is there a deadline to get my amended tax forms sent in? Is it still April? Also, are is there a de-...
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0answers
70 views

How is the Swedish income tax when compared to that of the US?

Calculating the income tax does not seem easy like solving a single formula. I tried to use online calculators, but the results widely varied by sites, so it may be more accurate to ask someone who ...
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0answers
26 views

due date for tax filling when recently moved abroad

I was US resident alien for the three past years (no Green card; had an H1B visa), i.e. 2017, 2018 and 2019. In December 2019 I moved permanently back to my native country. We 're now (February 2020) ...
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2answers
202 views

strategies to reduce the impact of large, long-term capital gains?

I once had a boss who, even though he was not working in Florida, would frequently fly to Florida for just the weekend or stay for extended periods at his residence there in order to be able to claim ...
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5answers
4k views

History of marginal-rate taxation in the US

I recently came across an article that made me think about marginal tax rates in the US. Specifically, in the fourth paragraph there is the statement: He once asked me to explain to her that if she ...
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1answer
118 views

Where should I send my federal tax return if there is no payment attached but I'm not owed money?

I wound up owing a small amount of money on my federal tax return this year. Rather than attaching a payment, I decided to pay online immediately. But now I'm a bit confused about where to send my ...
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0answers
36 views

Social Security Spousal Benefit while Spouse is Working

For US Social Security, a person of Full Retirement Age (FRA) can claim spousal benefits to receive 50% of the FRA benefits of their spouse. Suppose person A is of FRA and has no income. Person B (...
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1answer
73 views

If my HSA contributions are already deducted on W2, should I still deduct it from Schedule 1, Line 12?

All of my HSA contributions were made through salary reductions last year, so they already show up on my W2 as such. Thus, if I claim HSA contributions on Line 12 of Schedule 1, it seems like I am ...
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94 views

Reporting adjusted cost basis for ESPP shares

I have a 1099-B from selling some lots of shares purchased through an ESPP. The sales are qualifying dispositions as the shares were held longer than 2 years from the grant date and 1 year from the ...
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1answer
165 views

How to declare Cash Liquidation Distribution considering the Cost Basis?

I've been accumulating RSU and Compensation via stock (against my better judgment, but that's another topic) Now the company liquidated. e-trade documentation for 1099-div shows that i received money ...
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1answer
136 views

How to avoid paying tax on starting bonus that was used to reimburse a bonus from a prior employer?

My prior employer paid me a retention bonus in 2018. I left that company a year later, causing me to have to repay half of the bonus. My new company added an equivalent amount to my starting bonus. I ...

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