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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8
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5answers
71k views

How do I calculate net monthly salary (after taxes) in Germany?

If I were to say that my yearly, gross salary was 50,000 euros, then what would be my monthly net after-tax income? For example, this calculator looks OK to me: http://calculatenetsalary.com/...
8
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2answers
219 views

Tax implications of my first well paying job

I start my first ever well paying job in two weeks. Since I start halfway through this year, my tax bill for 2011 will be much lower than 2012. Is there anything I can do to take advantage of this?
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3answers
1k views

Estimated State payment too big --> money back; + 2018 Tax Reform

In Apr 2018, for 2017 taxes, I filed for extension and made a payment for estimated tax for the State & local taxes of NY of 20K. I was completely wrong, and ended up getting a State refund of 30K ...
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2answers
441 views

What's the point of tax tables?

Every year, the IRS and equivalent state organizations publish pages upon pages of tax tables. This year the federal one comprises 13 pages, but of course that only handles taxable incomes of up to $...
8
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3answers
427 views

If I volunteer to give back to my community, is there a monetary amount assigned to my time, to act as an Income Tax Deduction?

Is there a value that can be assigned to my time, i.e. an hourly rate, so that I can be given a receipt to remit to CRA come Income Tax Filing time? I live in Canada.
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2answers
6k views

What are the costs to establish an LLC and to maintain it?

What's the average (approximately) cost to open a basic LLC in Florida state or in NY state? (FYI in my case is to buy an house in Miami and rent it. I already have a bank account in the U.S.) What's ...
8
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1answer
2k views

How is rental income taxed?

I own two properties which I rent out. I am also paying mortgages on each of these properties (I'm not sure if this matters). How is the rental income taxed? Do I have any options regarding how this ...
8
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1answer
11k views

ITIN application rejected, and IRS lost one of our passports. How to get back the lost passport?

I have filed my 2012 tax return jointly with my wife, along with my wife's ITIN application, back in late March. In April, I got a letter for IRS ITIN department saying that we should send my wife's ...
8
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1answer
582 views

How should I pay tax on arbitrage profits?

Suppose I make an instant gain on an arbitrage trade. This is instant profit, so to speak, so technically there is no capital gains made. Do I pay CGT or income tax on the profit? I'm inclined to ...
8
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2answers
719 views

How to treat blog income for tax purposes & report PayPal income to the IRS?

I made a small amount of money for a blog I write, and I'm wondering how to enter it into my tax form. I was paid via PayPal so I have no W-2. (And not reporting it to the IRS is not a viable option.) ...
8
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4answers
2k views

What are the consequences of overfunding a 401k plan?

The current 401k contribution limit is $18,000. If I'm trying to contribute the maximum amount for the year and accidently go over, what happens? For example, if I end up contributing $20,000 for ...
8
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2answers
17k views

How do you calculate pretax deduction savings?

I am trying to determine how much money I will save by participating in the TransitChek program. The way the program works is I can set aside a certain amount of money from my pay check before taxes ...
8
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1answer
217 views

If I can be claimed as a dependent, what do I do without my parent's tax information?

I'm filing my 2016 taxes. Although I was not claimed as a dependent by my parents, I meet the qualifications of being claimed as a dependent. When filling out my tax return via TurboTax Freedom ...
8
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2answers
2k views

Can I contribute to a 401k for employer matching and then immediately withdraw it?

I have some friends who work at a company which offers 50% 401k matching up to some amount, but they don't take advantage of it because they want to use the money for non-retirement purposes. Ignoring ...
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3answers
1k views

Are U.S. Social Security payroll contributions and state taxes deductible from taxable income for India?

I moved to USA during the financial year Apr 2014 - Mar 2015, in which I was resident in India for more than 182 days due to which my status is "resident" in India for the tax year concerned. I ...
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1answer
3k views

Best way to transfer abroad loan amount to Indian parents Savings Account

Can you please advise: I am working in Dubai, and applied for a loan of 25 lakhs, I would like to use this funds to repay my personal loan (to relatives) and want to buy a land with left out money. ...
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2answers
1k views

Does a US citizen freelancing for a US company while resident in the UK have to declare this for UK tax?

I am a US citizen living and working in the UK on a spousal visa. (My husband is British.) I've got the opportunity to do some freelance work for a US company on top of my full-time job, getting paid ...
8
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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 ...
8
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3answers
900 views

Changes in Capital Gains Tax in the US - Going to 20% in 2011?

I have made substantial gains in the stock market this year on stocks that I have held long term (> 1 year). I understand that when I sell this stock, I will pay 15% capital gains tax. I have heard ...
8
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1answer
984 views

Due to the repeal of DOMA, can I exclude imputed income if I amend prior year returns?

My wife and I each cover the other under our employee health coverage (belts and suspenders, ok?) and therefore each incur imputed income on the value of that coverage. We live in a state that ...
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3answers
565 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 ...
8
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2answers
330 views

What are these “new IRS requirements” that H&R Block refers to when forcing me to change my password?

Attempting to log into H&R Block's website to file my taxes, as I've done for the last several years in a row, I'm now being prompted to "Update your account settings so they meet new IRS ...
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2answers
517 views

Raised 100k on a gofund.me campaign to teach a hands on electronics repair workshop for the next few years. How do I pay taxes?

I managed to raise 100k on a gofund.me campaign to teach a hands on electronics repair workshop. This amount lets me do workshops at least twice a month for the next 3+ years. Since I received this ...
8
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1answer
180 views

How do taxes work if one's spouse dies?

My question is not for estate planning, but to understand taxes (similar to question for Canada) but when taxes have been filed regularly (and pertaining to the U.S., not Canada). Suppose a couple ...
8
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1answer
650 views

What is a good strategy for an over-funded 529 account?

Given a situation where there is an abundance of funds in a 529 account for the current educational situation, what is a clean strategy for getting the money out with minimal taxation? This over-...
8
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1answer
519 views

Can I turn myself into a pass-through corporation in order to save money on income tax?

Given the pending changes in the tax code, I'm wondering if I could legally structure myself as a pass-through corporation in order to decrease my income tax bill. How would I go about doing this? How ...
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2answers
170 views

How to estimate income tax rate for making a budget?

I am currently applying for jobs in a variety of U.S. cities, and I'm trying to estimate what my net monthly salary will be based on different gross yearly salaries. I have a draft budget in a ...
8
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1answer
376 views

How is road warrior's income taxed?

One UK tech company is offering me to work for them (ie. be on their UK payroll). I am citizen of Estonia. Since, in this job I will travel every 3 or so months between different countries (as in ...
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2answers
2k views

Is freelance income earned by a U.S. citizen while living abroad subject to state income tax?

My wife is a freelance web developer, formerly residing and paying taxes in NY. She left her job in December 2011. We moved to Italy (where I am employed by the U.S. government) in January 2012. ...
8
votes
1answer
661 views

Which side has burden of proof to reopen a US income tax return after three years?

This came out of a discussion with someone over how long to keep returns and backup documentation... As (layman) I understand it, in the first three years the IRS can go after a return for any reason....
8
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1answer
524 views

How to share income when married filing separately?

For a couple filing "married filing separately" are there any tax implications in moving money from one spouse's bank account to the other's? Would the IRS see this as "income"? I spent a while ...
8
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2answers
248 views

LLC with $100K Profit - How to Reduce Taxable Income via Spending and Investments?

I'm a US citizen with a US-based single-member LLC operating in the internet space that will have $100K of profit / taxable income this year. I'm looking for ways to creatively (and legally) spend/...
8
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1answer
282 views

Can I apply prior years' capital losses against my employee stock option exercise?

I'm Canadian, and I executed a "same-day-buy-and-sell" on options granted to me by my employer. My T4 slip has the appropriate taxable benefit called out, but my question is, can I apply my previous ...
7
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2answers
2k views

Arguments on the “unconstitutionality” of income tax: What acts, etc. of Congress require payment of income tax?

I've heard that while the 16th Amendment gave the U.S. Congress the authority to enact laws for the application of an income tax on US citizens, but I've also heard that there is currently no law on ...
7
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5answers
1k views

Should I contribute to a 401k with a vesting schedule?

I am looking for some advice as to how much I should contribute to a 401k. I am considering taking a job at a place that has a worse 401k plan than I currently have - 6%, half matching. The plan has ...
7
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3answers
1k views

How do I report this cash bonus/tip on income tax return?

My wife does seasonal gardening work. Her employer pays her hourly, withholds taxes, provides W-2s, etc. She does her work on a single property, and last year the owners of the property gave her an ...
7
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2answers
1k views

Do I need to file a tax return as a student?

If I was a student in the US, do I need to file my personal tax? What form would I file? What is the personal tax due date? What software application is recommended? Should I go see a CPA? I have ...
7
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2answers
301 views

Why is there an income restriction on contributing to a Roth IRA?

Currently, single adults making more than $112,000 ($178,00 for couples) per year cannot use Roth IRAs I was just wondering what the reasoning behind the income restriction was for the Roth IRA ...
7
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3answers
3k views

What is my cost basis for an old computer given to me by a client when they upgrade?

I do I.T. and sometimes a client will want to upgrade or buy a new computer even when their old one is decent. Suppose they give me a computer that they paid $1000 for, and the FMV is around $400 at ...
7
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2answers
1k views

Can I deduct two years of IRA contributions in the same tax year?

The 2015 IRA contribution deadline is in April 2016. As such it is possible to contribute $5500 to my 2015 IRA and $5500 to my 2016 IRA during the 2016 calendar year. My question is simply: if I ...
7
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2answers
9k views

Are tax federal or state tax refunds taxable in the next tax year?

If I get a refund from IRS and or from a state tax agency, will that refund be considered taxable income for the next year's federal or state income taxes?
7
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3answers
8k views

How should I go about filing taxes if I have 2 different W-2s from 2 different jobs?

I worked 2 different jobs (Jan - Aug) and then (Aug - Dec) in 2010. I have W-2's from each of these jobs. What is the best way to go about filing taxes for this kind of scenario? What should be ...
7
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1answer
1k views

Getting a tax return as a dependent student

I am a 17 year old student that is filed as a dependent by my mother. This past summer, I had a paid internship where I had to pay FICA taxes alongside some state taxes. I believe I can get taxes paid ...
7
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2answers
4k views

What is the difference between PPF and NSC saving schemes?

I want to invest money in either a PPF (Public Provident Fund) or NSC (National Savings Certificate) scheme, but I would like to understand the differences between them.
7
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3answers
714 views

Can I file early and use refund for last year's IRA contribution?

I'm in the odd position this year of expecting a large tax refund (>$10K). I also have not maxed out my 2015 IRA. Lastly I don't have a ton of extra money on hand and don't expect to before April (A ...
7
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3answers
3k views

U.S. citizen living abroad: How do I declare my income and file for taxes if I've been delinquent in filing?

I'm 26 and have lived outside the U.S. all my life. I never filed a U.S. income tax return. I know nothing about doing my taxes, and would like to file for the years that I neglected to before the ...
7
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1answer
1k views

Can expenses for attending stockholders meetings be deducted in U.S. income taxes?

I have a few different common stocks holdings from which I receive quarterly dividends. In addition I receive an annual notice of a stockholders meeting and of course the voting proxy. I have often ...
7
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4answers
752 views

How can I estimate my income tax bill for the current year?

I am so tired of being surprised by how much I owe in taxes come Jan-April. How can I predict what I'll owe next year for this year's earnings?
7
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1answer
1k views

I gave an incorrect account number to pay my income taxes

I used TurboTax to prepare and e-file my federal and New York State tax returns. I owed money on both and I elected to have the amounts debited from a savings account. When the transactions never ...
7
votes
2answers
483 views

I may earn a lot of cash soon through self-employment on a lucrative project. How to handle the tax?

I'm in Canada, and am young and don't know anything about finance. I've been working part-time as a software consultant for a friend who's starting a marketing company. He recently landed a job with ...