Questions tagged [united-states]
For questions that relate to the laws, practices, and products of the United States.
1,237
questions with no upvoted or accepted answers
9
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 ...
6
votes
0answers
233 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
2answers
306 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
113 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
152 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
89 views
Do foreign debts require special treatment in a bankruptcy petition?
I have foreign debts, and I'm aware that while they cannot be discharged in the USA where I am filing, they still need to be declared.
My question is simply if they should be included with the ...
5
votes
0answers
81 views
For 2021, What is the most Tax-Advantageous Way to Make a Charitable Donation that is Larger than my AGI?
I may be making a charitable donation this year (2021) to my school; it will be about 1.5 times my AGI.
What is the most tax-advantageous way to make this donation? If I make the donation in stock ...
5
votes
0answers
94 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
1answer
92 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 ...
5
votes
0answers
71 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
0answers
904 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
3k 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 ...
5
votes
0answers
75 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
125 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
1answer
305 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
485 views
Tax implications of receiving Bitcoin as a gift from abroad
What kind of taxes I would need to pay for receiving bitcoin gift (>100k USD) from foreign relative (Russia -> USA)?
As I understand, I would not need to pay any tax at the receiving date, as ...
4
votes
0answers
66 views
Social Security, expat, and small side business
I plan to retire soon. I am an American and I expect to get about half my retirement income from Social Security. I have not reached full retirement age. (I'll be 63.) I own a tiny side business that ...
4
votes
0answers
36 views
West Virginia Taxpayer aged 61 with IRA distribution from Puerto Rico
I am a permanent resident of West Virginia age 61 unemployed and receiving health and food assistance from the State...thankfully. I have very limited investment income, not enough to pay taxes of ...
4
votes
1answer
112 views
401K balance while in foreign company branch
I have transferred from a US company to a branch in home country.
I'm paid through local country payroll and have no ties with US or the US branch payroll any longer.
When I requested a distribution ...
4
votes
0answers
78 views
What eventually happens when my Medicare premium is MORE than my Social Security benefit?
Most of my working life was not subject to Social Security taxes (yes, this can happen legitimately in the US), therefore my Social Security benefit is very modest.
My Medicare premium is withheld ...
4
votes
0answers
53 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
58 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
57 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
129 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
0answers
56 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
0answers
104 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
1answer
244 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
103 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
79 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
84 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
224 views
Do you have to pay taxes on a Unison "investment"?
I keep getting these Unison solicitations in the mail. Another question discusses whether or not this is a good deal in general, but one thing I don't see mentioned is taxes. I have searched quite a ...
4
votes
0answers
239 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
0answers
88 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
91 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
63 views
What defines a transportation-related medical expense to be "primarily for, and essential to, medical care"?
I'm trying to understand which transportation-related medical expenses are IRS-Qualified Medical Expenses for health savings accounts (HSA).
I understand that Publication 969 defines what HSAs are, ...
4
votes
0answers
159 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
97 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
432 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
86 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
84 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
43 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
0answers
769 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
176 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
113 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
95 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 ...
4
votes
1answer
289 views
Excess Roth IRA contributions and taxes
My wife and I contributed the maximum for our age ($11,000 combined) to a Roth IRA for the 2015 tax year. It turns out we unexpectedly made too much money to be eligible at all. I shouldn't have ...
4
votes
0answers
286 views
Inheriting funds from a U.S. trust where you are not the trustee
I am a U.S. citizen trustee and executor of my mom's trust. My brother is a Canadian citizen and lives in Canada and not a trustee. I will be dividing the trust funds or investments between the two ...
4
votes
0answers
424 views
Donating to US versus Canadian charities to maximizing tax benefits
I am a US citizen and I have the option to make my charitable donations in either the US or Canada for the next few years. How do I maximize my tax benefit for a fixed donation size?
My ...
4
votes
1answer
245 views
CP542 backup withholding notice from IRS
I've just received an utterly bizarre letter from the IRS, excerpted below:
Notice: CP542
Form: 1040 Tax Period Ending: 12-31-1985
Our records show you have reported and paid all tax due on the ...
