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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7
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3answers
519 views

Freelancers in the US: pay estimated quarterly taxes or pay when you file?

My wife is currently freelancing, and the IRS would want us to file and pay estimated taxes every quarter, which is a pain. I could take extra deductions out of my paycheck, but figuring out the ...
7
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2answers
1k views

I rent out a room in my house, do I have to report the rent as income?

Title says it all. Let me know if you need more details! Thanks!
7
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1answer
115 views

What is the best way to get back overpaid taxes generated after baby was born in the middle of the year?

I receive pay stubs from my employer semi-monthly. Taxes are paid automatically based on W-4 form. I pay taxes jointly with my non-working wife, so I set 3 as number of allowances on W-4 form. In ...
7
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1answer
3k views

I went to prison; do I file taxes for that period?

I was incarcerated from 2012 to 2014. Am I supposed to file taxes and if so how do I file or what do I file under since I paroled. I'm from Stockton CA. I await an answer.
7
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1answer
597 views

Write off personally owned computer parts used in company owned computers?

The company I'm employed by contracts labor to other companies (clients). I'm one of the non-exempt minions that perform that labor. The client I currently work with provided me with a laptop solely ...
7
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1answer
7k views

Is it a good idea to increase W4 allowance claim in order to fully fund 401k?

My company matches my 401k contributions, up to a limit, 6%. I don't currently contribute the max, but I would like to start. I know when I increase the W4 allowances, my take-home pay goes up, and ...
7
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1answer
679 views

Lower withholding based on my calculations. How to get employer to change withheld amount?

My employer will withhold taxes from my paycheck as if I have been working at a particular salary range all year. Basically: pay period = (base salary / 2080 hours) * 80, and taking all taxes as a ...
7
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3answers
16k views

cost basis of donated clothing?

(similar but NOT identical to How can I calculate the value of donated clothing for tax purposes? ) My wife donated several boxes full of old clothing to Goodwill, and calculated the total thrift ...
7
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2answers
116 views

What are some good resources for yearly US tax law changes?

Every year, in the US, we have new tax rules, deductions, limit increases/decreases, exceptions, benefits, etc. Are there some good resources out there for self education on what to expect with the ...
7
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1answer
750 views

I was given a 1099-misc instead of a w-2 what are my next steps?

I received a 1099-misc from a past employer but I was under the impression I was an employee and not an independent contractor especially after I told my employer I did not want to get a 1099 at the ...
7
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1answer
1k views

Received a late 1099 MISC for income I reported already, do I have to amend?

I have already filed and received returns for federal and state. Part of the income reported was cash for a side business cleaning houses (wifey). Last week, the lady my wife cleans with/for handed ...
7
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2answers
72k views

How do I check if I have already filed my taxes [Unites States]

I don't know if I've filed my taxes or not! I am due a refund according to TaxACT Deluxe, but I have no idea how to check if I have already filed for my taxes? What happens if I e-file again and I ...
7
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3answers
11k views

U.S. citizen, working for U.S. company, living in Mexico: Where do I pay taxes?

Similar to this question, but I'm a U.S. citizen who is moving to Mexico, but retaining my U.S. citizenship and employment. I will be in Mexico on a Temporary Residency visa (good for one year, ...
7
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2answers
18k views

How do I claim investment income that was earned in a jointly held account?

My spouse and I now have a jointly held investment account. I have received a T5 "Statement of Investment Income" for the account for the tax year, addressed to Mr James Foobar or Mrs Jenny Foobar. ...
7
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2answers
342 views

Options for giving an amount greater than the annual gift tax exclusion

Gifting up to $13,000/year (as of 2009) to someone is not subject to gift tax. http://en.wikipedia.org/wiki/Gift_tax_in_the_United_States Assuming that the individual receiving the money is older ...
7
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1answer
201 views

How can I fix a mistake I made on my income tax filing? [US]

How can I fix a mistake I made on my income tax filing?
7
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1answer
1k views

What happens when a non-U.S. citizen who's been making money from the U.S. moves to the U.S.?

So I've been making money from the US over the Internet, money that has been wiring from affiliate companies, PayPal, and Google to my home country. I never reported any taxes because of my non-US ...
7
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2answers
3k views

Remote work. Live in one state, company in another state. tax witholding

I don't currently know a tax lawyer/firm that is actually competent in all the issues here, so maybe you all can tell me something constructive about this state income tax question. In this scenario, ...
7
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1answer
195 views

How does taxation change when I have a child?

My wife & I currently both work full-time (in Australia) and I'm curious what changes would take place to our income taxation when we move from 2 incomes & no dependents to 1 income with 1 non-...
7
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3answers
7k views

How can I calculate the value of donated clothing for tax purposes?

I have many clothing items that I plan on donating to a local charitable/religious organization. I want to include the value of these items as a charitable deduction on my income tax, but I don't know ...
7
votes
2answers
177 views

IRA conversion when part of the contributions were non-deductible. Taxes owed?

I have a traditional IRA, which has money which has been contributed three different ways: deductible IRA contributions non-deductible IRA contributions rollover from 401(k) I'm looking at ...
7
votes
1answer
183 views

Can I choose which state to pay income tax to when I am traveling and have no permanent residence in the US?

I am leaving for a year-long trip around the world. I will have an income while traveling. Is it possible for me to choose which state will tax me as I will not have a permanent residence in any state?...
7
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2answers
1k views

US Taxes: How does the foreign earned income exclusion affect Roth IRA contribution limits?

We are US citizens. We live overseas and make our income from a business here. We pay taxes here on the income and thus don't pay US taxes on it. Let's say we make $50,000 and all of it is excluded on ...
7
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1answer
363 views

How much penalty will I have to pay for paying my tax installment late?

I had a tax installment of $7956.00 due on March 15th which I missed and paid on April 30th. I can make an extra installment now to cover the penalty, but I don't know how much it should be. The ...
7
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1answer
112 views

How do I report using an IRA distribution to purchase a first home

The tax code allows up to $10,000 to be withdrawn from an IRA (Roth or regular) and put towards the purchase of a first home without having to pay the normal 10% penalty for an early distribution. ...
7
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1answer
578 views

Working as freelancer with two partners. How do I report the income for tax purposes in India?

I am a software engineer working in a IT company. Apart from this, I am also working as a freelancer with a U.S. client. Money comes in USD to my Indian bank account. I have two partners with an ...
7
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2answers
139 views

Do tax-exempt bond fund earnings need to be reported on taxes?

I'm deathly afraid of having to report bond/stock earnings to Uncle Sam. I feel like my tax returns are complex enough and I don't want to deal with any additional complexity. I'm looking for a way to ...
7
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1answer
212 views

I need a tax accountant, but don't know how to find one

Is there a trusted listing service for tax accountants? I'm reluctant to call the first listing I see on google or to search craigslist. I also have no idea what is a fair amount for such a person ...
7
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1answer
9k views

My daughter got married last year in late August, can I still claim her part year?

If my 21-yr-old daughter lived at home (and I provided more than half of her support) until her wedding in late August of last year, can't I still claim her as a dependent of some sort?
7
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1answer
190 views

If your spouse passes away do you lose any tax credits (GST and Trillium Credit) owed to them before they died?

My husband passed away this pass on 17-July-2018. Until he passed away we hadn't filed our income tax for the years 2015, 2016 and 2017. I am wondering if and when I do decide to file our taxes; ...
7
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2answers
137 views

Can I have a dual-purposed limited company

I am an IT Consultant and have a limited company which I use to invoice my clients a daily rate for my consulting work. Can I use this same limited company to buy property and then offset the gains ...
7
votes
1answer
377 views

Moved to Canada for Grad School, Getting Heavily Taxed in U.S

I'm about to file my U.S. tax return for 2017. In August of 2017, I moved to Canada from the U.S. for graduate school (I am a U.S. citizen). I was on a vacation during April 15th, 2018 and quickly ...
7
votes
1answer
366 views

How long can I spend on a trip abroad without tax impact?

I am from Brazil and live and work in the US. I am a Brazilian citizen and not a US citizen or permanent resident. I can work from home for a few weeks if I want to. I still own a house in Brazil ...
7
votes
1answer
120 views

E-file and additional paperwork: Can I e-file an explanation of a rollover or do I need to paper file?

I just finished my taxes and I want to e-file, but because of a pension rollover taxcut gave me a warning saying I need to send in an explanation of said rollover. Will I be able to do this via e-...
6
votes
6answers
1k views

Why are US taxes taken out as if spread over the year instead of as due?

{Note - I am going to simplify the numbers below since the US tax code is, well, complicated} Given the following tax rates: 1..12000 10% 12001..24000 15% 24001..36000 20% 36000 and up ...
6
votes
3answers
6k views

Why should I report extra income from a side-job to the IRS?

Say an individual earns extra money on the side by tutoring through craigslist. Moral obligations aside, why should that person report those earnings when doing taxes? What I'm asking is how the IRS ...
6
votes
2answers
4k views

Does our baby need to file a tax return?

My friends had a baby last year, and he's turning 8 months by April 15, 2016. The parents are going to file a joint tax return this year. Can they claim their baby as a dependent? Should they ...
6
votes
3answers
2k views

How will my income tax vary throughout a year where my income fluctuated

I am in the USA: Will the income tax percentage change throughout the year if my (hourly) wage in the spring was low, then high in the summer, then in the middle of the start and end now in the fall? ...
6
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3answers
78k views

$65000/year or $2500 every two weeks: If I claim 3 exemptions instead of zero, how much would my take home pay be?

I live in Pennsylvania. They take out about $750 per paycheck as of right now. I recently changed the allowances that I had from 0 to 3. It had no effect whatsoever on my take home pay. And I had ...
6
votes
6answers
403 views

Why are you required to file your taxes if you employer deducts them for you? [duplicate]

When you work for someone they automatically deduct tax from your pay and give it to the government. Filing your tax returns allows you to get money back if they taxed you too much. So why is not ...
6
votes
4answers
14k views

What does the new 10K deduction limit include?

Some of my friends paid their property taxes early this year, due to the new 10K deduction limit (https://www.mercurynews.com/2017/12/22/can-you-pre-pay-your-2018-taxes-to-avoid-the-gop-tax-bill-heres-...
6
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2answers
1k views

Confusion about tax bracket?

So until last year, I was least concerned about tax brackets because I was getting money back every year. However, my wife started working this year and sounds like we do owe some money to uncle SAM ...
6
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1answer
1k views

Do I need to pay medicare/social security as full-time employee but with a business on the side of which I'm the sole owner/employee?

I'm working full-time for a company, but I also have my own mobile app business on the side. Do all the regular self-employment rules apply to me? I'd like to take the money I make from my side ...
6
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2answers
6k views

How does the US federal income tax system work?

General question here about US personal income federal tax rates. Is it a cumulative effect where your income is first taxed at the lower tranches and move up, or is it one specific percent for your ...
6
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2answers
19k views

What is the difference between a W-2 and a W-4?

What is the difference between a W-2 and a W-4? I know they're both US income tax documents I have trouble keeping them straight.
6
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5answers
2k views

Why doesn't the U.S. government pay interest on tax withholding returned via a refund?

When the US government pays you your tax refund, it doesn't include any sort of interest payment for what is essentially a loan to the government. Why doesn't the government pay interest?
6
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3answers
197 views

Do I have to pay taxes on a Roth IRA that is opened with Wedding Gifts?

I am a 29 year old teacher that will be getting married in July. I was hoping to use some of the remaining money from the wedding to open up a Roth IRA. I am not a financial professional and have ...
6
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2answers
2k views

Should/How I pay tax return in US for last year even after I moved permanently to India?

I'm in a situation where I left the U.S. last year in April, 2015. I worked in the U.S. until March 2015, so I received a W2 for the year 2015 from my US employer. But since April 2015, I'm back in ...
6
votes
1answer
1k views

Does purchasing a mobile home allow you to lower your income tax?

I have heard that by owning a home that your federal income tax is reduced. Does this still apply to mobile homes? If so, how much reduction could I expect? I currently have a tax rate of 28%. Living ...
6
votes
1answer
8k views

Received W-2 but was never paid

I just now received a W-2 from a company that I worked for 3 days as a contractor. I had to leave country for 2 months due to a family emergency. Since the employment duration was very short, I was ...