Questions tagged [united-states]
For questions that relate to the laws, practices, and products of the United States.
1,119
questions with no upvoted or accepted answers
13
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0answers
717 views
What are the appropriate forms to file when using a mega-backdoor?
For the backdoor (IRA -> Roth IRA, generally up to $5500 per year) conversion, we need to file Form 8606.
Are there any equivalent forms that must be filed for mega-backdoor (After-tax 401k -> Roth ...
11
votes
1answer
60 views
How do I solve an accidental violation of Medicare's 6-Month look-back HSA contribution prohibition?
I'm 67 and worked past 65, not enrolling in SS, Medicare A or B. Therefore, I contributed to my corporate HSA through October 2020. I stopped contributing immediately when, upon my research, I heard ...
8
votes
3answers
2k views
Mega Backdoor Roth: Withdrawal consequences for in-plan vs out-of-plan conversion
My employer allows after-tax 401k contributions, and has an option for automatic quarterly after-tax 401k -> Roth 401k in-plan conversions. The other option for executing the mega backdoor Roth is to ...
7
votes
1answer
654 views
Tax question - Inheritance from UK living in USA
I am a Green Card resident in Nebraska USA, and I am a UK citizen. Is it correct that I need to report to the USA Government if I inherit more than $10,000 from my father’s Will (he too was a UK ...
6
votes
0answers
45 views
Tax exclusion for American Expats
I am an American Citizen.
I work remotely for a company based in the US.
Working remotely means that I can live wherever I want.
If I move to a foreign country and live full-time there and ...
6
votes
0answers
97 views
What is my cost basis for a stock I received when my insurance policy was demutualized?
Background:
My brother and I are co-beneficiaries of a trust that held an insurance policy with The Principal Financial Group, which Demutualized on October 26, 2001. At which time the trust was ...
6
votes
1answer
225 views
In which country do I pay capital gain taxes, as a German with a US Internship?
This year, I did an internship in the US, and during that time I bought some stocks. Now I am back in Germany, and got dividend payments on these stocks, and also want to sell some of them soon. ...
6
votes
0answers
98 views
State Income tax when splitting a day between states (in the USA)
First of all, I realize that when traveling to another state for employment it is commonplace to owe taxes in that state for the work performed+sourced in that state.
Example: you work/live in ...
6
votes
1answer
126 views
I'm still working but my payments are deferred due to Covid19. Do I qualify for unemployment insurance benefits?
I'm self-employed in California and my biggest client (>90% of my billable hours) is not able to pay due to cash flow disruptions related to Covid19. I've agreed to continue working and billing as ...
5
votes
0answers
82 views
What taxes does an Eritrean-American-Canadian citizen Canadian resident pay first?
I am a Canadian born to an American-born Canadian father and an Eritrean mother. We live in Canada, where I was born. I am a citizen of all three countries mentioned.
Because of insane laws, I am ...
5
votes
0answers
63 views
In what circumstances, if any, is it advisable to file 1040-X before the original return is processed?
Some sources suggest "never":
You must wait until the IRS has processed your tax return before making corrections.
Or suggest "never if your original return claimed a refund":
...
5
votes
0answers
61 views
Is preschool closure (due to the pandemic) a qualifying event for Dependent Care FSA?
I'm trying to figure out of closure of my daughter's preschool meets the qualifying event criteria so that I can reduce my dependent care FSA contributions. I've read a few places online that change ...
5
votes
2answers
432 views
Is there evidence that in the long-term, leveraged ETFs perform poorly?
I came across an interesting question: "Why are daily rebalanced inverse/leveraged ETFs bad for long term investing?"
Despite the topic, the answers there actually illustrated the hypothetical risk ...
5
votes
0answers
414 views
Donating winning lottery ticket to 501(c)3 Private Foundation: cost-basis deduction + full tax free redemption for foundation?
US 501(c)3 Private Foundations are typically controlled by the primary donator, so that is a nice perk, but in exchange for that perk I realize the tax deductions for donating are significantly ...
5
votes
1answer
683 views
Do I need to pay taxes on my mother in law giving us “rent” money?
This is for California, USA
My MIL is living with us these days and we do not actually charge her for any rent. She has a small business that has sporadically yields some income. She insists on ...
5
votes
0answers
71 views
County tax credits for living and working in different states
I moved mid-year to Indiana, from Illinois. My employer remains in IL. For the entire year, my employer withheld IL state taxes. For the second half of the year, my employer also withheld local (...
5
votes
0answers
122 views
Is there any reason I'd prefer having my school not report a 1098-T?
I didn't get a 1098-T from my school this year. I contacted them about it, and they said it wasn't required in my case, but they went ahead and issued it anyway since I asked. They also told me they ...
5
votes
0answers
4k views
NY State Sales Tax on Lease Transfer
I am hopeful that someone can help me understand New York State (NYS) Sales Tax with regards to a lease take over, in what seems to be paying tax twice.
So here is the scenario:
Person A leases a ...
5
votes
2answers
439 views
Dual Citizen (US / CDN) wants to buy US equities in Canadian brokerage
I'm dual citizen (US & Canada) residing in Canada. I returned to Canada two years ago. I just started thinking about investing again in Canadian equities (either stocks, ETF's or mutual funds). ...
5
votes
1answer
3k views
US resident with Canadian income via T4A-NR
I am a single person LLC in the US and I do a lot of contract work for a US company. In 2016 I was asked by them to do some work in Canada and spent about 30 days working in Vancouver. My LLC issued ...
5
votes
1answer
272 views
State income tax : full resident, spouse part-year resident: joint return possible?
In 2018 I was a resident of New Jersey the whole year, but my spouse was a part-year resident: he permanently moved to Germany on August 1st and established his domicile there. After that date, he ...
5
votes
2answers
235 views
How do I invest in retirement if I'm planning to leave the US?
I'm completely new to investing and know very little about it. I'm about to graduate from college and take a software engineering job that pays very well, leaving me some slack for investing in my ...
4
votes
0answers
43 views
When is the latest that I can move out of the US to qualify for FEIE based on physical presence test
As I understand it, to qualify for the physical presence test, the last date that you can use is the date you file your tax return.
So suppose that I will file my tax returns on April 1st 2022.
Does ...
4
votes
0answers
44 views
Understanding 529 tax benefits and recapture (Illinois)
I'm a little confused as to how recapture works for 529 plans in Illinois (particularly with respect to playing for private school and possible changes in the state tax code.) Or rather, I want to ...
4
votes
0answers
52 views
With 40 credits, can I still be eligible to receive social security benefits at age 67 IF I LOSE MY permanent resident status?
I know there are similar questions here, but my case is a bit special so I ask this question.
I have been working in the U.S. for 10 years and accumulated 40 social security credits.
Now, I and my ...
4
votes
1answer
81 views
Tax implications of a Transfer on Death Deed
Back in June 2020 my mother passed and left me with two documents, a Last Will and Testament and a Transfer on Death Deed that applied to her home transferring her interest in the property to me.
I ...
4
votes
1answer
42 views
529 distribution pro-rata with multiple accounts
With multiple Roth IRA accounts, distribution ordering rules treat all accounts as one. Does this rule generally also apply to 529 accounts?
That is, if I am the owner on multiple 529 accounts, are ...
4
votes
0answers
51 views
Does a Lawful Permanent Resident have to pay a tax when buying real estate?
The Alleged Tax
Two years ago, my wife (US Citizen) and I (Permanent Resident) bought and moved into a house in Colorado (Greeley, Weld County). At closing, we were just about to put both our names on ...
4
votes
1answer
281 views
Should I request that my employer reduce my salary to fully max out my 401k?
Conventional personal finance wisdom often instructs one to make full use of tax-advantaged accounts before placing additional savings into other investments.
I don't think this is bad advice in ...
4
votes
0answers
65 views
How should we close Coverdell accounts with minimal penalties?
I have 2 kids that I had coverdell accounts for. We never used them for school expenses because we thought they could be used to pay off loans which I now know we can't. Both of my kids are now over ...
4
votes
0answers
120 views
What are “Tax Relief Fees” on American Depositary Receipt (ADR) dividends?
I noticed that a "Tax Relief Fee" is usually deducted from ADR dividends. Consider AXA ADR's (OTC: AXAHY) 2020 cash dividend announcement, which includes a "Tax Relief Fee" of $0....
4
votes
0answers
100 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 ...
4
votes
0answers
67 views
Why a W9 is needed for firstinspires Kids Robotics
Some kids(including mine) are doing LEGO competition and for that they received $500 ( yet to actually receive) from a corporation for their expenses( about $3K) pooled between them.
To get this $...
4
votes
0answers
74 views
Who reports the dividend for ACTS transfer, Outgoing or Incoming brokerage?
When a taxable brokerage account is transferred from one broker to another and as the old broker receives( and in turn forward to new broker) the dividend after the transfer as Dividend pay date is ...
4
votes
0answers
215 views
Foreign Earned Income Exclusion when working for a US company remotely
I'm a US citizen who lives and works in California. I've been looking at a possibility of working remotely and living abroad.
My understanding is that when it comes to state taxes, you pay income tax ...
4
votes
1answer
996 views
Can closing a covered call and opening a new covered call trigger a wash sale?
In Jan 2019, I bought 200 QQQ (ETF) at about $160 and also wrote two covered calls for June 2019 at 170 (higher than the last day price) netting a small premium. Now QQQ is at about 185 so it will be ...
4
votes
1answer
117 views
Individual Mandate Penalty for a Resident Alien who left the country in August
I am an F1 student who was in the United States from September 2011 till August 2018. I completed my coursework in May 2015, and stayed in the US for another three years under the OPT provision. I ...
4
votes
0answers
55 views
Can I list multiple wage income abbreviations on Free File Fillable Form 1040?
Background
Wage income abbreviations are for taxable income not listed on a W-2. Two examples of these abbreviations are "HSH" and "SCH". Those two abbreviations are mentioned on pages 26 & 27 of ...
4
votes
0answers
83 views
Does a French citizen living in the US owning stocks in a brokerage account in France have to pay taxes on dividends to the French tax authorities?
Does a French citizen living in the United States and owning stocks in a brokerage account located in France have to pay taxes on dividends to the French tax authorities (fisc)?
Additional ...
4
votes
0answers
146 views
IRA rolled over mistakenly to 401k
In a previous tax year I rolled over some money from a former employer's traditional IRA (TD Ameritrade) to a non-Roth 401k plan (Milliman). I didn't report this on my federal tax return at all ...
4
votes
0answers
87 views
Does basis remain in Traditional IRA after a complete conversion?
If you convert your entire Traditional IRA to Roth IRA, but the amount you convert (the value of the Traditional IRA at the time you convert) is less than the basis (after-tax amount) in the ...
4
votes
0answers
377 views
How does one calculate their AMT MAGI to determine their passive activity loss limitation?
The instructions for line 19 (passive activities) of Form 6251 (Alternative Minimum Tax) mention that you may need to do an AMT version of Form 8582 (Passive Activity Loss Limitations):
Refigure ...
4
votes
0answers
84 views
Understanding Nexus as a small business owner
I'm interested in becoming a 3rd party Amazon FBA (fulfilled by Amazon) seller. I recently learned about a rule called "nexus". Basically, I understand I have nexus (tax liability) in the state ...
4
votes
0answers
78 views
Should I create a simultaneous Part-time Sole Proprietorship and Part-time single-member S-Corporation?
I am self-employed and my business has two distinct parts:
Engineering and Design - which makes $50k income / year
Manufacturing and Sales - which makes $150k income / year
I am currently running ...
4
votes
0answers
40 views
Single Member CA LLC moving to WA keeping CA client - residency and work outside of CA
I have a CA Single Member LLC and do work for a California client. Contract work is between client and LLC.
I move from CA to WA and establish residency there. I perform ALL work outside of CA.
...
4
votes
1answer
304 views
US taxation of stock purchase plan for non-resident alien
An individual in USA is a non-resident alien for tax purposes for the whole year. He works for a US corporation in US. He buys stocks under the stock purchase plan of the company and sells it in the ...
4
votes
0answers
763 views
Capital gains while living abroad?
Let's say I'm a U.S citizen and have money in a brokerage account at a U.S institution, but I have moved to Germany. Let's imagine that this money generates capital gains. Assuming that I have to pay ...
4
votes
0answers
169 views
Questions on retirement saving plans for non-resident aliens
I am a German citizen that started working as a postdoctoral researcher at a University in the U.S., being on a J1 visa.
Part of my benefits package includes an employer match that I can make use of ...
4
votes
0answers
106 views
What's the tl;dr investing rules for married Canadian citizens when one partner happens to have US citizenship?
Canadians with US citizenship have several things to consider regarding investments:
Canada's Tax-Free Savings Account (TFSA) is not considered tax free by IRS, and filing taxes may significantly ...
4
votes
0answers
93 views
State tax withholding election
I live in Connecticut but work in New York. My employer wants to know what state I wish to be "taxed in". I understand that CT gives a credit for taxes paid in NY. Which state should I elect to have ...
