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Questions tagged [united-states]

For questions that relate to the laws, practices, and products of the United States.

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2
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1answer
70 views

Why are some money market mutual funds not margin-able for 30 days?

My broker has a money market mutual fund where I can park the money when not invested, but that position does not give margin buying power for next 30 days. Per article part shown below. Example ...
2
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0answers
65 views

Is claiming $0 in withholding deductions on 2020 W-4 the same as claiming 0 allowances in the past?

The IRS form W-4 for 2020 has you compute any amount that should be deducted from your federal income tax withholdings and then report the amount in dollars. In the past I merely reported the number ...
2
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0answers
24 views

Stock Reclassification to ESOP in 401k

In my current 401k, there are periodic conversions (looks like the beginning of each year) of the classification of company stock to ESOP shares. There is no change in quantity of traded shares and ...
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3answers
173 views

Why is S&P average PE ratio increasing since 1990?

PE ratio is one of the best tools to evaluate equities. A company that has positive earnings will have a positive PE ratio. But what is considered a reasonable PE ratio appears to be changing over ...
1
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1answer
112 views

How does the US FDIC apportion its premiums?

I'm not from the US, and the banking system there is vastly different to how most other countries operate. So, I'm a little confused about how the FDIC apportions its premiums (the deposit insurance ...
6
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2answers
2k views

Do I have to wait for my W-2s to fill my tax return for the previous year?

First year out of college (and my first paid jobs ever). I worked at 3 different companies last year (2 as a full-time employee and 1 as an independent contractor (1099-MISC)). Do I need to wait for ...
3
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0answers
63 views

Can term life insurance have a surrender value?

Five years ago, I opened a 20-year term life insurance policy with Protective Insurance. In my recent annual statement for the policy, I was surprised to see a non-zero value listed next to "...
3
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1answer
20 views

Foreign Earned Income Exclusion for new Green Card holder

This is something I am a little surprised doesn't come up more, but here goes: I am a current resident alien (living in NY). Previously I lived and worked in Dubai for 5 years. My Green Card (by ...
2
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1answer
322 views

If health insurance 'doesn't cover' a procedure, does the cost of the procedure get applied to my deductible?

If I haven't yet met my deductible?
0
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0answers
31 views

What self-employment and/or “payroll” taxes exist for NYS Single-Member LLC w/ S-Corp Tax Election?

I am about to form a New York (NY) state single-member LLC and elect S-corp taxation per my CPA's advice. I am the only employee and will be the only employee, at least through to the end of the ...
0
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1answer
81 views

Street Name and broker problems

It is my understanding that if I keep my stocks in street name it is legally owned by the broker. As a result, if the broker successfully sued for a lot of money ( say 5 billion ) I would expect the ...
2
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1answer
61 views

What is the tax liability on a Primary Residence that was turned over as Deed in Lieu?

2010: Home was purchased in New Mexico, USA. Negligible down payment. PMI included. Price $152k 2019: Attempted short sale due to hardship (moving to a new city after losing job). Short sale ...
0
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2answers
164 views

Can I use both donations and purchases at a charity shop as a tax deduction?

Certain charities operate retail stores which take donations of goods (i.e., used clothes) and also sell merchandise to the public. Let's say I donate $100 of items to such a charity. At some other ...
3
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0answers
65 views

Using a US state for payroll while not being a resident

I'm an American currently living in France with my wife (also an American). She has a part-time job working remotely for an American company. This company uses a US-only payroll company, so my wife ...
1
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1answer
111 views

Can an estate be forced to reimburse a life insurance beneficiary?

In New Jersey, a beneficiary is named on a $15k life insurance policy. That beneficiary collects the money and decides to pay the funeral expenses of $9k, then decides she wants to be reimbursed from ...
-1
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1answer
227 views

What's to stop a person from forming multiple trusts in order to split their taxable income?

Suppose a person who is a beneficiary of a trust holds assets generating $100,000 annual income in one irrevocable trust, and they are taxed by the IRS at about 37% of all income above about $12500. ...
8
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1answer
133 views

Do I have to take an RMD from my IRA next year?

I turned 70.5 last year and was required to take my required minimum distribution. I took it, but the laws changed at the end of last year making the new age for RMD at 72. Do I have to take the ...
1
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1answer
129 views

Adjusting withholdings for high debt?

I am looking to find out if it would be a good/beneficial idea to adjust withholdings for the next year, and use the extra money to pay down credit card debt. Using rough calculators, I am estimating ...
1
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1answer
57 views

Receiving stock through an LLC

I have an LLC with S-Corp tax status. I am working for a startup and part of my compensation is stock. I am receiving 25% of this stock after 6 months and the rest is being awarded monthly after 6 ...
8
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3answers
3k views

If IRS instructions for Form 1040 are not available, should taxpayers wait to file until they are published?

Apparently the IRS has not yet published the instructions for Form 1040 for the tax year 2019 yet (as of January 7, 2020). When I go to the standard form instruction index page it just lists the ...
1
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1answer
47 views

Does a sole proprietor have to file taxes if they make less than the personal annual minimum?

A person making less than a certain minimum, generally does not have to file any personal income taxes. For example, for a single tax payer the minimum for 2019 is $12,200. However, if the taxpayer ...
6
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2answers
189 views

Can one generate 'self-employed income' with a friend, to be able to contribute to IRA?

Let's assume A is happily living from interest and capital gains, but for various reasons he would like to contribute to his IRA. The IRS allows only contributions that come from income earned by ...
1
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3answers
197 views

What are the downsides to refinancing a mortgage, if any?

I'm about one year into a 30-year fixed-rate mortgage, and while visiting my bank's website, I noticed that their rates for an equivalent mortgage are about 0.5% lower now than what I am paying, which ...
1
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2answers
203 views

Pay taxes to the IRS, before filing, to avoid penalties?

I live in US and in the last two years I had a tax consultant recommend that I pay a certain amount to IRS online each January so I won't get a penalty. This year I don't have a consultant. I earned ...
1
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0answers
59 views

insurance refund check made payable to me and my ex husband [migrated]

we were to receive a $924. insurance refund due to overpayment on a house we sold. my ex husband had the check sent to his new address without telling me , signed his name and forged my name and ...
3
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1answer
375 views

Why are Vanguard's 2050 and beyond target retirement date funds badly underperforming the S&P?

At work, we're in the process from switching from an IRA to a 401(k) and I've been looking at the different fund options. What struck me as very strange was how poorly the Vanguard Target Retirement ...
3
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1answer
42 views

How do you properly handle calculating barters for taxable income and related, intrinsic expenses?

Sorry for asking what feels like a common question, but I can't find a straight answer to this question even though I've done a good bit of Googling on this topic. Last year my wife ran a website ...
2
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1answer
42 views

Whether travel expense related to training for a contract employee will be consider as an expense for tax deduction?

Whether travel expense related to training for a contract employee will be consider as an expense for tax deduction? I work for a company on their W-2 as a contract employee. I traveled for a ...
8
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2answers
582 views

I wrecked my car and it might be totaled after 2 months of ownership which includes a loan, what happens now?

I started financing a 2011 Toyota Camry LE for $11.6K October 2019. I’m 20 years old and I just got my license in September 2019. I’ve been paying $323 a month for full coverage through the General, ...
1
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1answer
34 views

Can a dependent keep COBRA as secondary insurance as well as an (inferior) new employment group insurance?

Details: The COBRA is for an awesome PPO insurance. Primary subscriber is about to start a new job. Both my child and I are dependents facing high medical and prescription costs in the next few months,...
3
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1answer
101 views

What is the best way to finance medical screenings for a non-resident alien?

My dad is coming to visit me from a country with a very poor medical system. The kind of system where senior citizens don't get much attention from doctors at all and pretty much left to die from ...
1
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1answer
69 views

What happens when contributions exceed IRS Retirement Savings Plan (RSP) limit?

IRS has Retirement Savings Plan (RSP) limit of $19,500 for year 2020. What happens if I make more contributions than this limit? Do I need to pay additional tax now? (I am less than 50 years old, ...
3
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1answer
104 views

Getting bills after out of pocket max?

I hit my 2019 out of pocket max after a surgery in Nov 2019 but am still getting bills related to it (e.g. anesthesia). Since I’ve hit my max, I shouldn’t have to pay these. What am I supposed to do? ...
0
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1answer
39 views

Trying to understand S corp

Say an S Corp has one owner and earns 300k in a year. It pays wages of 100k. Can the 200k be invested by the S Corp so that the the 200k does not have to be distributed?
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0answers
17 views

Warrant extension - would this have any tax implications?

If someone has warrants to purchase shares in a private C corp in the US, if they were about to expire and they got the company to agree to extend them, does this have any tax implications? These are ...
2
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3answers
251 views

Do share prices on average drop by the whole dividend?

Share prices (including ETF prices) drop when a dividend is paid out. What's the empirical evidence for the exact amount of the drop? I found some old papers that mention that the stocks they looked ...
1
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1answer
38 views

Is a foreign equity holder liable for business debt?

I'm an Indian citizen residing in India. If I get 20% equity in a US company, am I responsible for the company's debts (current and future debts)? Note that this is a sweat equity (no money invested)....
0
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1answer
37 views

Claiming tax exemption to use the funds for Capital Investment

I currently work as a server/bartender, and saving up to get a food truck off the ground. Suppose I claim tax exempt on my W-2 (with the restaurants I work for) and use 70% of gross funds for Capital ...
1
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0answers
36 views

Would cash held in a US brokerage account by a non-resident alien be subject to US estate tax?

According to the IRS page, it seems like the answer is a no, as cash is neither US real estate, tangible property or securities of US companies. U.S.-situated assets include American real estate, ...
2
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0answers
112 views

When shutting down a single-member LLC do you need to close your business account with the IRS?

I'm shutting down a single-member LLC and have filed the necessary paperwork with the city and state in which I live. The only thing remaining is what, if anything, do I need to file with the IRS. I ...
5
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1answer
119 views

Dividing capital gains over 2 calendar years

I was reading through some investment brokerage literature and came across this caption Long-term capital gains & AMT Realizing a capital gain that's large in comparison to the rest of ...
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0answers
40 views

What is the role of Real Estate Broker? [duplicate]

I asked earlier but I guess was not clear enough. Please don't tell that one cannot get Real Estate Agent exam. In past I have taken enough exams( honestly) without being an expert. So getting through ...
3
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0answers
36 views

Recapture of portion of Federal subsidy

My state offers a mortgage program which stipulates: The Internal Revenue Code includes a restriction relating to such mortgage loans. The Federal government treats homebuyers who purchase a ...
7
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1answer
2k views

Should a nonresident US citizen get SSN

I am married to a woman who holds dual citizenship for both the US and Israel where we actually live. Our entire life is in Israel with no assets in the US at all (later on I will buy some American ...
0
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2answers
202 views

Do I have to collect sales tax when reselling used personal items?

I bought a new dehumidifier off of Amazon. I used it in my apartment for a month but don't need it anymore. I want to sell it used, at a price lower than the price I bought it for. I listed the item ...
0
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3answers
103 views

Sell house after exceeding capital gains exclusion?

Let's say that the value of your house has increased by more than the amount of the capital gains exclusion ($500k for married and $250k for single), and you otherwise meet all the criteria to exclude ...
1
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1answer
47 views

Marginal cost/benefit of FICA contribution

How do I calculate the marginal lifetime cost and benefit of a FICA contribution? This calculation applies when determining how to structure a business, such as whether a single-member LLC should be ...
3
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0answers
77 views

Can one take retirement benefits from both Europe and the US?

Person A, a German citizen who currently holds a US green card and lives in the US, worked earlier in their life in three different European countries, contributing to various government-sponsored ...
1
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0answers
43 views

How would investing in real estate (REIT or similar) affect my tax situation in the U.S.?

My wife and I are in our 30s and bought our first house this past year. We don't expect to have enough money to buy a rental property or another house in the foreseeable future, but we are ...
1
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2answers
58 views

Do post-retirement earnings affect the amount of the benefit?

Suppose Person A, who does not have a full 35 years of earnings, and was not a high earner, files for retirement benefits at age 62. The benefits will be rather small. What if Person A starts ...