Questions tagged [united-states]

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

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If Stocks are given as a gift, is the cost basis preserved?

When selling a gifted stock, is the entire value considered taxable income, or is the original cost basis used to calculate the difference? Thank you
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In what case(s) is the end of the offering period (when one purchases the shares) considered the grant date?

I read on https://fairmark.com/compensation-stock-options/employee-stock-purchase-plans/dispositions-of-espp-stock/ in the context of employee stock purchase plans (ESPP) in the United States: For ...
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The Social Security Special Earnings Limit Rule---How Long is the Cap on Hours Worked in One's Own Business Truly in Effect?

I am under the impression that retirees who are collecting Social Security benefits and start a business are capped in the number of hours they can work between 15 and 45 hours per month if they have ...
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1 answer
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AMS points as taxable income when living and paying taxes in EU

I have been invited by Mathematical Reviews to perform reviews of articles. As compensation, I received some AMS points, which are redeemable as credit toward future purchases of books, etc, from the ...
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1 answer
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New reporting requirements in 2022 for proceeds over $600

I am serving as a conduit for a friend by receiving money from PayPal and sending it to her through CashApp (her PayPal account is currently limited). The transactions I am getting in PayPal are ...
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Can house expenses be part of downpayment if buyer pays them?

Don't know exact numbers, so I'll just make up some that seem plausible. Purchase price of house $200,000. Work house needs might cost $10,000 Person able to do that work wants to buy house. If "...
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Is Home Sale Legal Protection worth buying?

I'm selling my home and curious if "Home Sale Legal Protection" plans are worth purchasing. They are self described as covering the cost of lawyers for legal disputes about the information ...
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1 answer
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What methods exist to verify if my tax return was received by the IRS?

I finished my taxes on February 15th. However, TurboTax had a bug that prevented e-filing. I waited until the 22nd, and when it still wasn't fixed I just mailed a paper copy of my taxes. I started ...
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2 votes
1 answer
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USPS taking too long to deliver tax returns [US Taxes]

I used USPS First-Class Mail with tracking to send my State and Federal Tax returns. It's been 10 days and the tracking site has a In Transit, Arriving Late status. What happens if USPS fails to ...
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1 answer
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Should my wife claim our child as a dependent when filing her NY state income taxes if we both live in CT and I claim the kid on our CT and US taxes?

My wife and I are Connecticut residents. I work in Connecticut, but my wife just accepted a new job in New York State. We're planning to file our tax return jointly as we have done in previous years....
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Should we sell our current primary residence to payoff a rental we also own in favor of no mortgages? [closed]

Townhouse: About 10 years ago we bought a nice townhouse for about 300K. Single family: About 4 years ago we decided to buy a single family house for about 400K and we kept the townhouse and it is a ...
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If I sell a stock and buy another in an IRA do I have to do anything when filing taxes?

In an IRA, if I buy a stock and sell it a year or two later but then buy something else without withdrawing any money, is there any paperwork I would need to do when filing taxes during the year when ...
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8 votes
2 answers
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Can I put my rental in a trust and have the trust sell it?

I probably am not the first to think of this and the IRS most likely has this covered but if one wanted to put their rental into a trust and then have the trust sell it, would they save on taxes since ...
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Cost Basis of Foreign Property That Becomes Subject to US Taxation [duplicate]

Let's say a non-US person moves to the US and then becomes US person for tax purposes of that year. At the time of arriving to the US, the person has been holding onto some property (i.e. stocks and ...
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8 answers
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Dental insurance isn't really a type of insurance?

The central tenet of insurance is to pay slightly more on average while getting protected from paying very large amounts of money should disaster strike. In essence it's paying a premium to lower risk....
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How to withdraw contributions from Fidelity Roth IRA? Fidelity-specific

From my understanding (correct me if I'm wrong), contributions can be withdrawn from a Roth IRA at any time without any penalty. I opened a Roth IRA with Fidelity two weeks ago and contributed $3,000 ...
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2 answers
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How can I write a check with no exact amount but with an upper bound in the United States?

I live in the United States. I'd like to write a check to someone. I don't know the exact amount yet but I do know the upper bound. How can I write a check with no exact amount but with an upper ...
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3 answers
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How much credit can one get with a low-paying job?

My late brother owed me a fair amount of money, mostly a mortgage currently valued over $400K. He said (in writing) that I would be paid by his widow out of his $500K life insurance. His widow is the ...
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2 votes
1 answer
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Can Wash sale be claimed in this situation in adults joint account

I had bought some sharers of an sector ETF in my joint account with my spouse. Now those shares (suppose quantity 250) are far below ( let say $40 per) our purchase price( let say $100). I am thinking ...
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1 vote
1 answer
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Should I categorize a cash injection into my 2-owner LLC as an owner loan or owner investment?

I have an LLC, S Corp where I and my business partner share a 50/50 ownership. We ran out of cash, so I deposited $1,000 into the account to get us over the hump. The plan is to pull it back out once ...
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4 votes
1 answer
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Can you get a tax write off for providing software to a not for profit?

I developed an application that provides critical information in the event of an emergency for health care providers. The facility I designed it for uses it frequently but does not seem to have the ...
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0 answers
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Filed 2019 taxes in 2022. Which year to claim state income tax refund?

I am catching up with my taxes. I just filed my 2019 Federal and State taxes. I'm now working on 2020. I had a State refund due for 2019. I applied it, in full, to my 2020 estimated State taxes. If I ...
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Self-Employment: is equipment deductible as part of the home office deduction, or as a separate deduction?

I have a side gig and am setting up a separate home office area for exclusive side-gig use. I intend to take the home office deduction, but am not yet decided if I'll calculate it the simplified way (...
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5 votes
2 answers
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Will I be penalized for not making an estimated payment in the first quarter for a side gig that started in the second quarter?

I picked up a side-gig on March 30th, that pays me at the end of each month, so my first pay check will be towards the end of April, which is in the second quarter. It seems I have two options to ...
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1 vote
1 answer
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Is this inheritance will fair, or only equitable? [closed]

I'm formulating my will and I wish to provide for my three children. They are all aged near 50. Two children earn 300k+ and have assets of over two million dollars each. The third child has no income ...
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2 answers
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Verizon says my bill has been paid, but no transaction on my card?

So I paid my Verizon bill this Friday and they’re saying everything is okay, but nothing’s posted on my card and no money has been taken out? What’s happening here?
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1 answer
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Cryptocurrency mining/transfer fees as a taxable exchange for a service?

There's an FAQ for virtual currency on the IRS website. There's a question, Q38, indicating that transfers between your own wallets or accounts are not taxable: Q38. Will I have to recognize income, ...
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1 vote
1 answer
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Should I report a cryptocurrency transaction with a $0 capital gain?

I'm reporting my cryptocurrency trades on 2018 Form 8949. For some of them, after rounding to the nearest cent, the gain is $0.00. Should I still include those rows even if there's no capital gain or ...
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4 votes
2 answers
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My tax return was approved, when does the IRS debit my account?

I just recently filed on TurboTax. This is the only time I've had to pay the IRS anything beyond what they normally take in withholding. I know normally when they "withhold" more than they'...
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Schedule CA 540 Part I Section A: what role do the little 'a' rows serve?

I'm a bit baffled looking at the Schedule CA 540 form in its Part I Section A set of rows. There's the rows that form the matrix against the various major columns A, B and C, but there's also this set ...
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Filing a missing prior year 8606 & Effect on future tax return

I am realizing I messed up a previous backdoor roth - this is what my timeline looks like: On 3/1/2020 Deposit 6k to Traditional IRA For Tax Year 2019 On 3/30/2020 Convert 6k to Roth IRA On 12/31/...
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1 answer
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Life span of overpaid tax applied to next year?

Assuming tomorrow is the last day to claim a refund on my 2018 US federal income tax return, instead of asking for the "amount I overpaid" to be refunded to me, may I apply it to my 2019 ...
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2 answers
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If I have a Roth 401k, what would making after-tax contributions mean?

(To start, i know the Roth 401k uses after tax dollars, and i know that the IRS allows further “after-tax contributions.” This makes it seem kind of confusing, as it would appear I’m asking about ...
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3 answers
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What happens when I exceed IRA contribution limit due to rewards?

I recently opened an IRA account with Fidelity. They have some sort of reward program running where they give additional $100 for qualifying accounts. So if I contribute $6000 and Fidelity contributes ...
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1 answer
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Income Tax Return filing for 2022: Home Office and W-2 Employee expense deductions for hybrid employees

I receive a W-2, as an employee, and I now work a permanent hybrid schedule but I can come into the office if I want to. I'm classified by HR as a hybrid employee. I know the federal home office ...
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1 vote
2 answers
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Family land in Texas

My grandfather owned land in Texas, which was just sold by our family, and the proceeds were allocated to all the grandchildren. I received a portion of the proceeds. I'm curious how that should be ...
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Do I have to actively sell a capital asset to be required to file Schedule D?

I'm reading the instructions for 2021 Line 7 for the 1040 and noticed the following Capital Gain or (Loss) If you sold a capital asset, such as a stock or bond, you must complete and attach Form 8949 ...
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1 vote
2 answers
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Distributed from wrong IRA account last year. Any way to correct?

We distributed $47k from wife's (age 52) regular IRA last year, 2021, to improve home. Realize now we should have distributed from my (age 64) regular IRA instead. Now we're paying penalty for early ...
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1 answer
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The Two classes of stock of Lennar

I am looking at the company Lennar. I noticed that it has two classes of common stock. The symbol for the two classes are LEN and LEN.B. As far as I can tell, the second one (LEN.B) is at least as ...
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1 answer
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Income Tax Return: Is the co-op's mortgage (not the lending institution mortgage) a secured or unsecured loan?

I have two 1098 forms: One from the lending institution and another from the Corporation. For the lending institution 1098 form, I deduct the mortgage interest and there are no real estate taxes. It's ...
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0 votes
0 answers
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How to report interest on uncashed savings bonds?

I have a Series EE U.S. savings bond that matured in 2018, but I still haven't redeemed it. What do I put for the payer's name on 2018 Schedule B (Form 1040), line 1? More details: IRS Publication 550 ...
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1 answer
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Need to amend my tax return to account for initial error reporting IRA contributions, even if tax return is correct after IRA withdrawal?

I contributed $6,000 to an IRA, however I discovered as I was filling out my tax return that I am only eligible to deduct $2,600. I will withdraw the $3,400 from my IRA (as allowed per Pub 590a), so ...
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1 vote
1 answer
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Can I withdraw leftover money in PA 529 account because my child received scholarship?

My daughter graduated in 2017 with BS degree. She received scholarship money about $100,000 in 4 years. So I took money from 529 only for room and board and so there is left over money in 529. I ...
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Canadian Spouse wants to send money to American wife - Tax problems?

Looking for some help please. I am a Canadian citizen who is married to an American citizen. I want to send my wife approx 50,000 USD urgently. I have no status in USA, and she has no status in Canada....
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1 answer
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Tax libility for non-US person living outside of the US for US-source income

My situation is as follows: In 2017 I've received an ~$18k income from US sources while living in Ireland (also I'm not a US citizen and was not a US resident at that time). I have moved to US since (...
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2 votes
0 answers
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Does asset custodian matter when determining which capital gains lot you sold? (USA)

Say you bought N shares of some company at broker X on Jan 1, 2021. You bought N more shares of the same company at broker Y on Feb 1, 2021. Then on March 1, 2021, you sell N shares with broker Y. For ...
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1 answer
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How does Turbotax get your W-2 from the previous year without user input?

How does Turbotax get your W-2 from the previous year without user input? Does it use the prior year's W-2 to populate the current tax year's W-2? Also when Turbo tax says you will get a refund next ...
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1 vote
0 answers
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Unvested "RSE" on W-2 Box 14

My spouse's employer has granted him RSUs (which for some reason they call RSE) as part of a long term incentive plan. It is a set amount granted ever year over the past 3 years, but none of it has ...
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1 vote
1 answer
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Capital Gain on sale of shares

I have sold shares held by me in Pakistan. My holding was for more than a year. Do I need report this on my US Form 1040 for 2021 tax year? How do I report it ie where and how on Form 1040?
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Depreciating an investment property & tax strategy

This is regarding US Federal taxes (and California state taxes). Last year in February we purchased a second home property (via mortgage) and have made numerous renovations and repairs to it up until ...
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