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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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1answer
67 views

Are the low earning spouse's earnings basically irrelevant for Social Security retirement benefit purposes?

Spouse A is in their mid-sixties and was the lower earner by far. Spouse B is five years younger and had a very good salary, but only from the past twenty years. (The previous years' income was zero.) ...
2
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1answer
77 views

Tax Strategy: Take Inherited Traditional IRA deduction now, or let the money ride?

How can I best calculate the fiscal impact of these two choices? Take a $50k distribution from a traditional IRA to offset an expense, thus saving taxes now. Leave the money in the IRA, allowing tax ...
2
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1answer
26 views

ESPP: Qualifying Disposition (18 mo. after purchase) vs. Long Term (12 mo. after purchase)

I've attempted to search for answers to this, but I'm just not understanding them, so wanted to post to see if I can get some clarity. I am part of a ESPP which has a 6 month lookback, 15% discount, ...
9
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5answers
1k views

Should I become real estate agent to save on buying my own home and sell existing one?

I see cost to sell a home is at least 6% in commission and some expenses. I am planning to sell my $200K home and buy a new one of about $500K. Without arguing which party( buyer/seller) pays for the ...
0
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1answer
84 views

Sell losing stock to offset dividends

I am new to this so bear with me. In 2019 I received a total of $637.70 in dividends. From Etrade IRA $192.45 and from Robinhood $445.25. I know I will be taxed on this income. I wanted to know if ...
0
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2answers
232 views

What form of investment should I use to wait out fears of a recession?

I have recently pulled my investments out of the stock market and am looking for another way to grow my funds. However, in light of past recession fears I do not want to invest in any way that would ...
0
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1answer
44 views

New York State withholding penalty

If I get a penalty from New York State, can I pay it and the withholding all at once? For example, my withholding tax in NYS is $1k, and my penalty is also $1k. Can I can pay all $2k at the same ...
0
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0answers
20 views

It is taking the car insurance company a very long time to evaluate damages on my car [migrated]

I had an accident (not at my fault) about a month ago with my car. The car stopped working and I had to tow the car to a shop. The insurance company said they will do their best to quickly evaluate ...
5
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2answers
99 views

Tax treatment when selling stock and donating to charity

I sold stock worth $100k (of which ~$40k was long term capital gains) with the intent to donate this entire amount to charity. I later realized that one can — with some effort — donate appreciated ...
3
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1answer
98 views

Can I use a mistaken HSA distribution towards other expenses rather than put it back in the HSA?

My wife had several doctors appointments between August of 2018 and May of 2019. As it turned out, we pre-paid for appointments that insurance ended up paying for in full. The doctor used the credit ...
2
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1answer
50 views

Help to understand money market fund total return

Take Schwab money market fund as an example - On the page of SWVXX, the following information is listed - yields: 7-day yield (without waivers) - 1.44% net expense ratio: 0.34% returns (annualized): ...
11
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2answers
2k views

100% employee contribution to 401K, how to handle employee paid social security and medicare?

An employee earns $12,000 a year and wants to defer $12,000 as an employee contribution to 401K: Does the employee need to pay employer the employee portion of social security and medicare? Can ...
1
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1answer
40 views

What does the accounting term consolidated joint venture mean?

I live in the United States of America and I invest in public companies. If firm A and firm B have a joint venture. Call this joint venture C. Assume each firm owns 50% of C. Firm A considers it a ...
0
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1answer
37 views

Does charity contributions come under itemized deductions of California state w4 form?

I am trying to understand why State of California has no line for charity contributions or I may be something. For example, in the Worksheet B of this form, line 1, it only talks about the itemized ...
5
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1answer
114 views

Can I take advantage of forbearance to pay student loans down faster?

Years ago, I applied for the Borrower Defense to Repayment Program because I have student loans for a school that was punished for doing some shady things. Apparently the Department of Education is ...
4
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1answer
120 views

Do we need to consider the account balance as limit when converting from Traditional IRA to Roth IRA?

Please consider the following scenario for a Traditional IRA to Roth IRA conversion using Betterment. A Traditional IRA account was created & funded with $6000. After a week, the account balance ...
3
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2answers
92 views

Taxing Capital Gains in an Earlier Year

I know I will have a large $70,000 capital gain in the beginning of 2020 (due to my selling deep-in-the-money covered calls which will expire, and therefore get exercised, in January). Would the IRS ...
1
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1answer
63 views

Calculate income for long term capital gains

How do you estimate your income for long term capital gains? Do short term capital gains count in this income for long term capital gains? Do short term capital losses reduce income for long term ...
0
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1answer
109 views

Can a US company give equity to an Indian?

Is it possible for a US company to give some percentage of its ownership to an Indian? Background: I'm an Indian citizen working with a US client. I'm located in India. Together we are developing a ...
0
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0answers
20 views

If I void paychecks in past quarters should I use IRS form 941 or 941x?

We did some paychecks through Intuit software for educational purposes to see How the process works. We voided them before the end of 2019 but after the quarter in which they were issued. I learned ...
0
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1answer
52 views

Federally Recognized Tribal Income

My understanding is that tribal members of a federally recognized tribe who receive income from 1040 on Line 21 as :INDIAN GAMING PROCEEDS, INDIAN TRIBAL DISTRIB, NATIVE AMERICAN DISTRIB receive a ...
3
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3answers
161 views

If I purchase and simply hold on to a non-dividend yielding stock for an entire fiscal year, will I need to report it on my tax return?

Next year will be the first time I file for taxes. Though I have a pretty good understanding of how taxes work, I just want to confirm whether I need to include stocks that I have not sold and do not ...
1
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1answer
35 views

Will offsetting $x in long-term gains with the exact same $x in short-term losses of the same asset class result in no taxes on the gains?

As the title says, will I have any tax consequences (aside from paperwork) if I offset an equivalent value worth of long-term gains with short-term losses? Assuming no other externalities except an ...
3
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2answers
85 views

Adjusted Income vs Adjusted Gross Income

I am done with my federal tax W4 form but I am not 100% sure about one line 4 of the deductions and adjustments worksheet. Are Adjusted Income and Adjusted Gross Income the same? To me the Adjusted ...
0
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0answers
56 views

Tax Calculation for 2019 Self Employed

Currently, I am self employed and I am going to file tax with my spouse. I have below questions on self employment tax. Do I need to pay 15.3 percent social and medicare self employment tax before or ...
0
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2answers
125 views

Salary deduction to contribute more to a 401K through the employer's match

If an employer is allowed to contribute up to 38K (57K-19K) to your 401K through a match, why don't we have an option to deduct the extra 38K from our salary and count it as the employer match in ...
0
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0answers
51 views

Taking back your capital from your S-corporation

If I put 100k of my own money into my business, and now my business made 150k, can I take out my 100k without it being taxable? If so, how would that be inputted onto the k-1?
2
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3answers
133 views

How to name a revocable living trust?

The abbreviated context of the question is this: I have young children that are too young to name as secondary beneficiaries (my wife is the primary beneficiary) on various accounts. I am creating a ...
0
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0answers
22 views

LLC (part assembly business) taxation

So I am starting a company for assembling computer parts (no change made to the components, just assembled). My company will be registered in Delaware but will work out of PA. My question is, do such ...
3
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0answers
35 views

How Should a US Expat in Vietnam Optimize Compensation Package to Maximize Net Pay?

I may have the opportunity to work on a project in Vietnam starting in early 2020, and am hoping to get some advice on how I should negotiate my compensation package with regard to taxes. I am a US ...
2
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1answer
99 views

Year of 401k contribution for last paycheck?

I am getting my next paycheck on Jan 2nd, 2020. The paycheck covers work performed in 2019. Will the paycheck go towards my 2019 or 2020 401K contribution limit?
3
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1answer
168 views

Is my HOA's balance sheet healthy?

I'm purchasing a condo and trying to evaluate if the association is financially healthy. Are there any red flags in this balance sheet or income statement? There are 200 units and utilities are ...
10
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5answers
5k views

What do I do about my bank account and “sugar daddy”?

I did something completely dumb and fell for it because I wanted money. I gave away my bank account login to my sugar daddy and now it’s suspended. He claims it’s because he tried to login twice ...
3
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1answer
76 views

Do Social Security retirement benefits count when calculating financial aid?

Youngest child is starting college; parent is unemployed. Will the FAFSA consider the following, or will they be ignored for financial aid calculations? Retirement benefits (social security) ...
3
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2answers
87 views

How to decide whether to start drawing Social Security first, or start drawing down from IRAs?

Spouse A is in their mid-sixties and was the lower earner by far. Spouse B is five years younger. They recently became unemployed. Is there a rule of thumb or some other method, that will help them ...
32
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11answers
6k views

Should I wait for a recession to buy a home?

I am currently renting, but am considering buying a house in the future (1-3 years). I want to know if I should even consider waiting for a future recession to buy a home at a better price. Some would ...
5
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4answers
2k views

Is an inspection contingency with “no money back” wasted verbiage?

We are the sellers. Our contract explicitly states 2 things: The Buyers can back out based on the inspection and receive earnest money back. Sellers will not provide money back at closing, or make ...
0
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2answers
117 views

Can a secured loan help me build credit?

I'm moving to the US from the UK in January. I have just opened a bank account and have applied for a Capital One secured credit card to help start building credit. Would also taking out a secured ...
2
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1answer
32 views

When does an option assignment actually get fulfilled?

I had 2 iron butterflies in RSX, expiring Jan 20th 2020. My short legs were at $25 strike, and the long legs were at $22 and $26. Over the weekend, I was notified that my short call ($25) was ...
2
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1answer
45 views

Data security of financial service companies

I use non bank financial service companies such as Wealthfront and Robinhood. It's incredibly important that they manage data (such as account balance) correctly. I'd be inclined to trust major banks ...
2
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1answer
48 views

How to fill in Line 6 on Form 1040 if Schedule D does not have to be filed?

In the United States, IRS Form 1040, line 6 is for Capital Gains. The instructions on the form say: Capital gain or (loss). Attach Schedule D if required. If not required, check here In order to ...
0
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2answers
70 views

What's our option in filing tax return

I got married June 2019 to a US citizen, and recently filed for adjustment of status. We live together presently with her 9 year old daughter, and I can't work because I've yet to receive my EAD. ...
0
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3answers
90 views

If a business used the following diagram, would it be technically selling stock?

diagram The process is as follows: The consumer (A) purchases a good or service from a business (B). The consumer receives the good or service and also receives points, similar to that of a loyalty ...
0
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1answer
109 views

My 401(K) plan and form 5500

I live in the United States and have a small unincorporated business. I have no employees and I am single. I have a 401(K) and a Roth 401(K) through E*Trade. Between the two accounts I have a little ...
1
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0answers
52 views

Approximate tax savings if NYC employee moves residence from NYC to NJ?

How much would an employee expect to save on tax bill by moving residence from NYC to NJ, approximately? Assume $200,000 income, single, no dependents, $0 for everything else (IRA, 401k, investments, ...
2
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1answer
80 views

How can I compensate a new owner for a special assessment without incurring income tax?

The dwelling in question is a Townhouse in Boulder County, Colorado I was the owner of a dwelling in Colorado when a fairly bad hail storm hit this last Summer. I received notice that there would ...
1
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1answer
72 views

Getting an FHA with less than 1 year of self-employment income

My wife and I (in our 20's) are looking to purchase a home in September after our lease is up, but won't quite have enough for 20% down by then (most likely 10-15%. I've currently switched from W2 ...
2
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1answer
49 views

Taxes For Expired Worthless Puts On Invested Positions

My question relates to the tax implications of purchased puts that expire worthless (no gain, but loss based on the purchase price). These puts exist to protect invested positions. Suppose I ...
1
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0answers
25 views

Locking in Capital Gains when in Lower Tax Bracket [duplicate]

I am a college student graduating this upcoming year. I have a decent amount currently invested in a taxable brokerage account. For the 2019 year I would be in the 0% long term gains bracket and 12% ...
0
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1answer
173 views

Is it legal to issue free stock? [closed]

Are there legal obstacles to issuing free stock? Along with no promise of any return. Do you still need to be a corporation to do so? The money comes from payments made elsewhere for products and ...