Questions tagged [taxes]

For any question related to taxes and not otherwise covered by a more specific tag such as income-tax, sales-tax, capital-gains-tax etc. When asking about taxes, please also specify a country tag such as united-states, canada, united-kingdom, etc.

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9 votes
5 answers
3k views

Understanding underpayment penalty: implications and how to avoid it in the future

Here is a small explanation of my situation which I hope will help to understand my question: I am a full time employee who lives in California. Each year I get a W2 from my employee and 1099 from my ...
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0 votes
1 answer
28 views

Schedule C 1040: How to list expenses related to payments to foreign companies/remote workers?

Where should I enter foreign independent contractors' payments/expenses (remote work so no 1099) in my schedule C form? Should I list it under "Legal/Professional Fees" or should I put it ...
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1 vote
2 answers
120 views

How do I pay content creators in a sole proprietorship?

I’ve made an app that’s completely free to use and isn’t otherwise monetised, for now. That being said, I want to do a couple things that involve money: For a campaign, I want to donate X dollars per ...
0 votes
3 answers
75 views

why is there no wash profit in taxes

Say someone lost like $100k from trading in 1 year. Now their investment is going up. Should they sell $3000 worth of stocks then buy it back immediately to take advantage of the $100k loss every ...
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2 votes
1 answer
88 views

Avoiding Double Taxation on US Capital Gains for US citizen residing in Portugal

I am a US citizen retired and living in Portugal. I make a living investing in US stocks. I report this income to both the US and Portuguese IRS and pay taxes on both ends. Could someone tell me ...
3 votes
1 answer
31 views

Can the portion of medical expense covered by private insurance be simply deducted from the amount claimed for Tax Deduction in Canada?

For example, if one had to pay $1000 to the medical service provider for a procedure, and upon making a claim - only $300 got covered by private health insurance, does one preserve both receipts for ...
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0 votes
0 answers
25 views

How to report 1256 future contracts gains/losses?

I am a student in the US on F1 visa. I have been involved in trading future contracts and cannot find correct way of reporting the gains/losses from doing so. I received 1099 B with a section 1256 ...
2 votes
0 answers
40 views

UK inheritance tax for Jersey-born British passport holder living overseas?

I was born in Jersey, where there is no inheritance tax. I have a full British passport which doesn’t have the page about being a crown protectorate because it was issued in Beijing. I have never been ...
0 votes
1 answer
84 views

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 ...
0 votes
0 answers
60 views

How to invest in the US market as a resident of Switzerland?

I am an EU, non-Swiss, non-American citizen currently residing in Switzerland where I plan to stay indefinitely, perhaps with a little pause to live in the US for a year. I would like to invest my ...
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0 votes
0 answers
22 views

How to submit self-competed 8949 form with TaxAct?

my wife and I are using TaxAct to file our US tax return for 2021. I have a handful of crypto transactions that I made last year - there are about 8 transcactions and the total volume is ~$600. I have ...
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0 votes
1 answer
61 views

How to account for a investment income on estimated tax?

I had a short-term investment payoff $40k. This figure will appear on the K-1 which I will receive in August. Meanwhile, what's the easiest place to stick this figure somewhere while doing estimated ...
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1 vote
0 answers
49 views

How do I report profits from selling stocks on 1040NR?

I sold stocks in 2021 and made a profit. However, my brokerage did not report this to IRS as my account is identified as nontaxable. Therefore they didn't withhold any tax and they did not issue any ...
0 votes
0 answers
24 views

Taxation in India and Hongkong

I have worked in India for first 11 months of FY. In 12th month, I have worked in Hongkong. Do i need to pay 12th month tax as per India tax rules of HK tax rules?
-1 votes
1 answer
154 views

Can you sell a liquid asset bellow market price to lower your taxes?

Imagine I bought 1 Bitcoin or any similarly liquid asset for 1.000 €. Imagine the market price went up to 10.000 €. If I sell at market value, I made a 9.000 € taxable profit. Is it legal to weasel ...
0 votes
1 answer
82 views

Crypto Wash Sale rule

There are various sources indicating that in the United States, the Wash Sale rule does not apply to Cryptocurrencies as they are considered property rather than securities. Does that mean that it is ...
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1 vote
1 answer
57 views

How do I obtain a cost basis for gifted real estate in Russia?

Approximately ten years ago, we received some long-held real estate in Moscow. Last year, we sold it. My understanding is that we owe capital gains tax based on the difference between the value at the ...
1 vote
1 answer
90 views

Do you get money back from the IRS if you have no income for 2021 and its your first time filing taxes?

My cousin never filed a tax return before in his life as he never made any income. Should he file a tax return to claim any free IRS money for those with no income? He did get the free government ...
1 vote
0 answers
57 views

British citizen joining US startup as co-founder, tax considerations for stock agreements

I am joining a startup as a co-founder which is incorporated in the US. I am a British citizen (not a US citizen) and will work from the UK, whereas my co-founders will be working from the US. As part ...
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0 votes
0 answers
23 views

When and how to fill out form for supplying own work tools

I recently started a new job as an employee. The agreement was that I would provide my own tools. I was recently asked to fill out a Declaration of Condition of Employment Form (not the one related to ...
0 votes
2 answers
88 views

Why Is Irs Taxing Discount on 2 Year note

I bought 2 year note for $100, and got discount of $10. So really, I paid $90 for $100 Note. Now IRS says I need to pay tax on $10 discount. I received form 1099-B. They say long term capital gain. ...
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11 votes
3 answers
4k views

Can I submit my U.S. state income taxes in multiple envelopes?

I have a 12 page return and I have a number or pre-stamped envelopes. I read that I should only put 3-4 pages in each envelope. Can I submit them in multiple envelopes?
0 votes
1 answer
206 views

Automate attaching W-2 forms for online free file (USA)?

I have had several incomes throughout the year, so manually filling out the W-2 form wastes a lot of time. I have both paper and electronic copies, so is there anyway I can directly import them in? ...
3 votes
4 answers
817 views

Within a single year, when is the optimal time to contribute to an IRA?

Should I be making my maximum allowable IRA contributions as early as possible in the year (for instance, Jan 1st 2023 for the 2023 contribution), or as late as possible in the year (for instance, ...
1 vote
1 answer
49 views

Can't find a means of paying form 8879, Online options are broken

My girlfriend is an Au Pair from Brazil who is trying to pay the taxes she owes as part of her form 8879. She payed H&R Block expat tax services to file for her. When her return was accepted, they ...
5 votes
1 answer
866 views

Paying the IRS in installments. What is the approximated IRS interest rate?

My friend owes the IRS about $6,000 for the tax year 2021. He did some researches and found this link on the IRS webpage about paying tax in installments: https://www.irs.gov/payments/payment-plans-...
2 votes
1 answer
65 views

Can child daycare expenses be deducted on IL state taxes?

Can child daycare expenses be deducted on IL state taxes? We're doing our own taxes and everything we've read has led us to believe that the answer is no, but just wanted to double-check to be ...
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0 votes
1 answer
41 views

If I file a W8-BEN form, is a 1042 necessary?

I am a Costa Rican national, living in Costa Rica and I do not spend 183 days a year in the US. I opened an investment account with a US broker, TradeStation, and they asked me to fill out a W8-BEN ...
0 votes
0 answers
13 views

How to record CT receivable under FRS 102

This question relates to UK corporation tax prepared under FRS 102. When a company records a loss in a year, it's able to carry back that loss to a prior period if it has previously made a profit, and ...
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1 vote
1 answer
78 views

H4 EAD, Married, wants to file tax separately. What would be implications on green card processing?

I am married and currently working full time on H4 EAD. Last year we filed tax jointly but each of us felt we received less returns than expected. Also the refund goes to my spouse's bank account ...
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0 votes
1 answer
61 views

Taxes as "US employee" but working from home country

I'm being offered a remote position for an US company. The recruiter mentioned that I will have to pay taxes in the US and also they will process my visa, but I'll continue working from Costa Rica (...
  • 103
0 votes
2 answers
41 views

Do I pay a K-1 if I make below $3000 in a year?

I received a K-1 from an ETF. I was buying very small amounts of funds, because investing is my hobby. I did not receive any distributions, nor did I make a considerable amount of money. Do I have to ...
0 votes
1 answer
22 views

International Non-Resident Spouse CA Tax Filing and Community Income

Indian citizen working and living in California since 2019 and considered a CA resident for tax purposes. Got married in Nov 2021 to my wife who lives in India. She did not join me in the US in 2021 ...
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1 vote
1 answer
102 views

Is Form 2210 broken for people with children, or am I missing something?

I'm trying to file my taxes right now, and H&R Block's tax software is simultaneously telling me I'm owed a four figure refund and owe a (modest) underpayment penalty. On digging through this year'...
0 votes
1 answer
37 views

for a simple real estate rental LLC, how much data goes on tax form 1065 vs form 8825?

we have a "humble" partnership LLC for an airbnb real estate rental unit. I believe Im supposed to put most/all of the incomes/expenses on form 8825 and not on page 1 of the 1065 but my ...
12 votes
2 answers
3k views

Employer tax benefits of 401k matching vs salary increase

I was trying to understand why a company would offer 401k matching instead of higher salaries to employees. I read that some states require companies to offer retirement things which makes sense. One ...
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1 vote
1 answer
92 views

Is it possible for 3 stimulus checks paid for one dependent?

Mother remarried files Married Separate in 2019, receives $1400 based on 2019 tax return for dependent. Father receives $1400 based on 2020 tax return for dependent. Stepfather files Married Separate ...
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1 vote
0 answers
28 views

Does Dependent Care FSA/DCAP have an income phaseout?

In the past, dependent care expenses could be deducted through either a Dependent Care FSA/DCAP (an employer program) or a Dependent Care Tax Credit (aka Form 2441). On the surface, they seem like two ...
0 votes
0 answers
49 views

How to prove that Form-1099s are a part of my K1

I'm a US citizen that invested in a foreign partnership and received both K-1 and 1099s for the same income. I am supposed to only report the parts shown on K-1, per the instruction from IRS (see page ...
1 vote
2 answers
398 views

Why might a Fan Duel bettor want to launder his winnings through someone else's bank account? [duplicate]

A friend of my son's won a lot of money from betting on Fan Duel. We can't figure out why the friend asked my son to receive payments related to the guy's winnings. After receiving the transfer of $...
0 votes
0 answers
38 views

Post-hoc hardship to avoid early withdrawal penalty (US)

My wife and I took money out of our retirement accounts to pay for emergency repairs to our home in May of 2021. Unfortunately, we were not ordered to relocate or demolish, so it doesn't meet criteria ...
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1 vote
2 answers
199 views

Where to report "payments in lieu of dividend" when filing taxes?

Form 1099-MISC, line 8, received from normal stockbrokers, can report you as having income in the form of "payment in lieu of dividend". Internet research indicates that this is "...
16 votes
1 answer
2k views

Tax implications of paying someone else's medical bills

If I wanted to help pay a significant sum towards an extended family member's (in-laws) medical bills, would that be subject to any kind of gift tax or similar? Just for an example say I wanted to pay ...
-1 votes
1 answer
138 views

Can you kindof hide a transaction from the government if you use ATM? [closed]

I'm a citizen of NL. I keep my money in US. I can send money from my US account to my NL account using Wise I can withdraw cash from US via ATM. Then deposit the cash into my NL account via ATM ...
2 votes
4 answers
5k views

Can you earn income and pay taxes to the United States government when you are a non-citizen and not living in USA?

I would like to do freelance work and earn income in United States dollars. I would like to pay taxes to the United States government. I have an SSN from the time that I actually lived, worked and ...
0 votes
1 answer
98 views

How do I determine the cost Basis for IRA funds converted to Roth?

I converted $100,000 from rollover ira to Roth IRA in 2021. What is the basis for this converted amount? I entered zero. I want to make sure I am doing it right.
1 vote
1 answer
55 views

Double Tax - U.K. resident US citizen

Let’s say I am American citizen and a U.K. resident. I have businesses registered in both countries. Is my US income taxable in both the US and the U.K. in this scenario? Any replies would be greatly ...
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1 vote
1 answer
354 views

Can a dependent based on 2020 taxes claim the 2021 Recovery Rebate Credit?

So I graduated college in 2021 and based on discussions with my parents they are not going to claim me as a dependent for the 2021 tax return, but they did for 2020 and 2019, I'm not sure which year ...
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1 vote
0 answers
65 views

How does Buy Borrow Die work? [duplicate]

I discovered this interesting article by ProPublica on tax strategies of the ultrarich. It boils down the strategy to Buy Borrow Die. The idea is you have tons of stock you don't sell. You borrow ...
  • 611
0 votes
1 answer
110 views

Foreign person forgot to turn in W8-BEN

I am a foreign person living abroad. I own stocks with a US brokerage. I do not have SSN or ITIN. Last year, I forgot to submit W8-BEN. My brokerage did 24% W9 withholding on the dividends and gave me ...
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