Questions tagged [irs]
Internal Revenue Service which is the US Federal Tax authority.
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When does the IRS typically announce health FSA contribution annual limits?
Based on this and this, as of November 6, 2023, the IRS still has not announced the health FSA contribution limits for the year 2024, even though most private employers have already begun their open ...
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Do I need to file form 5472?
I own 100% of a US based LLC, in Wyoming, and I am a non-resident of the United States. I want to know if I need to file form 5472 even though my company had no transactions whatsoever.
I paid a third ...
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Can I re-file a missing Schedule 1 in this situation?
A friend of mine, with self-employment income did his/her income tax using Turbo Tax. Turbo Tax produced the tax return including Schedule 1. My friend has a Qualified business income deduction. ...
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F1 to H1B - Should I be filing taxes for 2019 as a Resident Alien or a Non-resident alien?
I was on F1 since my first arrival to the US in 2015 (never been to the US before).
My H1B was approved in June 2019 (I have been on F1 all the time before this date and was Exempt)
Should I be ...
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Are interest and penalties due to the IRS when there is an automatic extension due to emergency?
I just got a letter from the IRS, saying that I owe them a small amount of money. I live in California, where we had an automatic extension to the due date until October 15, so that is when I filed. I ...
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How is the Underpayment of Estimated Tax penalty determined?
My understanding is that if you pay at least 90% of your current tax year obligations, pre-deductions, or 100%† of your obligations in the previous tax year, you avoid the penalty.
I was just sent a ...
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How can I log onto the IRS website without using ID.me?
Several years ago when I went to log into my online IRS account they had added ID.me to their site and I have been trying ever since to get verified. I have many of the secondary documents proving my ...
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wash sale with leveraged ETF
If a person sales regular ETF ( suppose QQQ) at a loss and buys a leveraged ETF on similar Index e.g TQQQ within 30 days, will the loss on QQQ be treated as wash sale ?
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Check made out to wife and husband
We received an IRS check made out to my husband and myself. We want to deposit it into my account. How does my husband sign it over?
Thanks.
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Outsourcing projects: is there a threshold on how much I can deduct from taxes (IRS)?
Suppose that:
I have a $10000 project. I subcontract the entire project to a subcontractor and pays that person $9999. This means my net gain (or profit) is $1.
If I submit that info to the IRS when ...
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Understanding S-Corp election timeline
I started a business on February 2nd of 2023, and my Tax Year will be 1st January, 2023 to 31st December, 2023, and the business tax filing deadline will be 15th April, 2024. Will I be in compliance ...
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Is there any objective benefit to electronically submit tax returns with software rather than POST the prepared returns?
This question is about the IRS tax returns in the US. This question is neither opinion based nor is it about specific tax preparation software.
I am asking specifically if there are objective benefits ...
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Tax liability for non-US person living outside of the US for US-source income
My situation is as follows:
In 2017 I've received an ~$18k income from US sources while living in Ireland (also I'm not a US citizen and was not a US resident at that time).
I have moved to US since (...
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IRS - ITIN application
I have filed my 2020 tax return jointly with my wife, along with my wife's ITIN application, back in late Feb 2020.
In March, I got a letter for IRS ITIN department saying that we should send my wife'...
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ITIN Application- IRS requested to submit original passport
We have submitted my spouse passport on June 16 for ITIN application and received ITIN number on August 23 but still did not receive original passport back.
We try to contact IRS multiple times but no ...
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Foreign student with unpaid taxes returning to the US - What are the risks?
In 2001 I was a foreign student from Haiti, I Studied in the States and my tuition was paid for by my grandfather, so I didn't apply for financial aid and no student loans.
After graduation I worked ...
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Declaring $50,000 cash deposit from parents in a foreign country
During the summer vacation in my home country, my parents gave me $50,000 USD in cash (they exchanged this cash several years ago from the bank by their savings) to support me buying a car. Recently (...
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What exactly are you taxed on as a US resident vs US non-resident? Is this guide correct?
Tax Guide
During the period of time that an individual is considered a US-resident for tax purposes:
All worldwide income is taxed by the IRS at the normal rates. (e.g. basically any source of income ...
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Can an individual filler use accrual method for federal tax purposes?
I am struggling with a tax situation and I have consulted professionals with conflicting opinions. (Does not help being abroad).
I became a greencard holder in 2022, i am filling taxes for 2022 (first ...
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Sending a 1099-C with missing data to a deadbeat client
I sent a demand letter via email to a client for a $500 balance they owed. They offered a token amount, by email, to settle. Their token was so small that I would rather send them a 1099-C.
My ...
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How do you determine purchase date when there are multiple stock buys?
I buy 5000 shares of ABC on Jan/01/22 for $100,000 ($20.00/share)
I buy 2500 shares of ABC on Feb/01/22 for $100,000 ($40.00/share)
I now have 7500 shares with a cost basis of $200,000 ($26.66/share)...
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US tax 2021 for H1b and H4 visa holders- when to use 6013 h Election
I was on H1B and spouse on H4, have been filing US tax for 2015-2020 as married filing jointly and have been in US 365 days for all 5 years.
In 2021 - we stayed from Jan to April 2021 which is less ...
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Dual Status Tax eligible for Premium Tax Credit?
Me and my wife moved in the middle of year as Green Card Holders to the US. As I understand I am eligible for A PTC for Healthcare. If I file as Dual Status Alien (NR for 8 months and Resident for 4 ...
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Employer not sending corrected W-2. What can I do?
For USA tax year 2022: I got my W-2 via ADP in February 2023. It had a mistake and I requested a corrected version (W-2C) in March 2023. Tax filing was due in April 2023 so I filed an extension (...
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Figuring out the tax basis of property inherited 15 years ago
In 2008 my father died. 15 years later I just sold the property that I inherited from him. Now I need to pay capital gains on that property, but what do I use as the tax basis?
I could just assume the ...
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457(b) withdrawal limits?
I have a 457(b) from a state (Minnesota) employer which allows me to withdraw money from it in either regular monthly amounts or via 1-time withdrawals.
Years ago (5-7?) I was told that once I start ...
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Should one try an audit reconsideration alone or with a CPA?
If anyone is following my previous questions, I have a long saga of an audit that has gone foul. I hired a CPA to help me but in 8 months he was unable to get the audit sorted out for me.
The CPA firm ...
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Do I have enough legal grounds to sue the IRS for not giving me a chance to speak with them about an audit?
Here is my story. About 9 months ago, I received a notice from the IRS that they want proof of what I reported in 2019. I received the paper work 2 weeks after the deadline to respond as I live abroad ...
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Is it possible to make additional principal payments for IRS's payment plan installment agreement?
I am looking at this page on IRS website
https://www.irs.gov/payments/payment-plans-installment-agreements
and I don't see any information about whether I can make additional principal payments to pay ...
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Do tax professionals have a special phone number to get through to the IRS?
I have an ongoing audit since July 2022. I hired a tax professional to take care of the audit as I was not able to get a person on the phone when I tried calling many times. It's now almost July 2023.
...
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LLC tax for non US citizen
I incorporated my business in US (LLC) last year. I am a non-US citizen. Currently, the business has no revenue. I read how tax income works and that tax brackets are applied as an individual since ...
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Can you prorate the standard deduction as a dual-status alien in the United States? [duplicate]
According to the IRS:
"You cannot use the standard deduction allowed on Form 1040, U.S. Individual Income Tax Return. However, you can itemize certain allowable deductions."
Does this mean I ...
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Check a bank legitimate [duplicate]
I would like to know if Habib Union offshore bank is legit. They had ask me to pay income tax ($5250) and IMF registering ($25500) to unlock my account.
And now they asking to pay for IRA Clearance ...
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Which credit bureau(s) does ID.me and/or the IRS check for purposes of obtaining an IRS transcript?
In order to get a transcript of my IRS account, I have set up an ID.me account and am up to the step of submitting a photo as part of verifying my identity. It appears that ID.me and/or the IRS asks ...
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What is the time zone used for US tax filing deadlines?
IRS webpage "When to File" says that April 18, 2023 is the last day for me to file taxes for the 2022 calendar year. From my understanding, this means that I won't be considered late as long ...
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How to correct excess contribution to Roth IRA?
IRS has income limits for Roth IRA as given on https://www.irs.gov/retirement-plans/amount-of-roth-ira-contributions-that-you-can-make-for-2023. It is hard for me to guess what would be my modified ...
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IRS Setting up a payment plan
A friend of mine has filed his/her taxes using a paper return with money due. The IRS has yet to process the return. Can my friend setup a payment plan with the IRS now? Should my friend wait for the ...
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What tax form is used for Roth conversion within a 401(K)? (Not IRA)
I am not asking about a conversion from 401K to Roth IRA. (That'd be Form 8606 by the way).
My employer plan allows both traditional and Roth 401(K). Really. They also allow Roth conversions from ...
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I overpaid the IRS. Can I ask for a refund or credit next year?
For US federal tax this year, I mistakenly paid more to IRS than the amount I owe. I don't have a way to change the payment.
Is it possible to ask for a refund or credit next year?
Edit: I am owing ...
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Do I need to file Form 8990 if my partnership has Box 20 Code AE?
The partner's instructions for Schedule K-1 states the following:
Code AE. Excess taxable income. If the partnership was required to
file Form 8990, it may determine it has excess taxable income. ...
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What does Identifying number mean on Form 4797?
At the top of Form 4797, there is a section for "Identifying number", but I was unable to find anything in the documentation about it.
Is this just my SSN, or is it some other identifying ...
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Is IRS Form 56 needed when filing for a deceased person?
I am the Personal Representative (known as the Executor in some states) for the Estate. I am reading publication 559 and other online advice. I am seeing 3 possibilities:
IRS Form 56 should be filed ...
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Can I file IRS form 1040 first then wait to pay until the deadline?
Normally I file and pay taxes at the same time.
Is it acceptable to file first, perhaps months before the payment deadline?
I ask because I have a large tax liability, and would prefer to put it off ...
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How can I pay estimated taxes when I'm no longer filing jointly?
Suppose that I am married and have been filing taxes jointly with my spouse for years, with my spouse as the primary taxpayer. For the upcoming tax year (here, tax year 2023, since at the time of ...
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Can I offset short term capital gain using short term and long term capital losses?
What is the IRS rule on how to use short term and long term losses?
Let's say, My tax situation is as below. Can I offset my entire short term capital gain using both short term and long term capital ...
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How to compute cost basis over multiple purchases, for sale of a fraction of the assets?
(The example below is, of course, unrealistically simple, just for the sake of illustration.)
Suppose that I made the following purchases and sales of shares of some stock X:
| 01/15/2021 | bought | ...
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What is the Euro 10 yr Swap?
I know that a swap (more specific an IRS) is an OTC product to exchange future payments base on a principal. In this case, the interest on the fixed leg will be computed trying to have a NPV of 0, so ...
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H1B & H4 Married Filling Jointly+ITIN with less than 183 days in Substantial Presence Test
I'm on H1B visa and my spouse is on H4 visa. We both came to US on Sep 2022 & We have been in USA for 113 days in 2022 and 0 days in 2021 & 2020. Can we file Married filing jointly as Resident ...
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IRS Notice LTR 105 C Disallowed claim
I paper filed an amendment for my 2020 tax return which was processed with Single status. Because unavailability of ITIN, I could not include my spouse in the 2020 tax filing.
ITIN for a spouse was ...
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Should I claim medical expense before insurance made final determination?
A family member has had a surgery at the end of last year. So far the insurance claim has been rejected because the doctor did not report it properly. I have no idea when that will be resolved and ...