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
102 views

File as a single and married for remaining months

I was single in Jan 2020 and got married in Feb 2020. So is there something like filing a single for one month and then file as jointly for the remaining months? I was in the same state all time.
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2answers
52 views

How to calculate cost basis for cryptocurrency gift?

USA Taxes. Here are two possible scenarios: Purchase price is known. Jan 10, 2020 my brother purchases $1,000 worth of crypto (let’s say BTC). Jan 15, 2020 my brother gives me all that crypto (but ...
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Are changes in the tax code for individuals usually retroactive to the beginning of the year, or not? [duplicate]

With the new administration, there is a potential for changes in the tax code. The one that interests me the most is the possibility that the rate for long-term capital gains (now 20%, maximum) will ...
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Seek advise on Income Tax for India and US - for a new Green Card Holder

No income in US till date. Have some income in India - interest on FDs and Rental income. Please advise: how and where to Fill the forms in US? What all to declare (about India income) and how? ...
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2answers
194 views

Can I afford to buy a used car?

I will be 18 in 2 weeks and I need a new car before I start college (in about 6 months). I make around $1200 a month right now and I have $1050 saved. After I start college I will have to get a new ...
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2answers
162 views

Adult Entertainment Taxes; Independent Contractor, SMLLC, LLC, S-corp, etc?

I've been dancing for a few years. I've been filing taxes as an independent contractor. I do not receive any 1099s. All my earnings are cash, received that day. I pay a house fee (rent for being ...
2
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1answer
92 views

What are the upsides of rolling over a Roth 401(k) to a Roth IRA?

Some employer's retirement allows to roll-over Roth 401(k) to a Roth IRA, otherwise this can be done when leaving one's job. Roth IRA has at least 3 upsides compared to Roth 401(k): There are no ...
0
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1answer
55 views

Wash Sale Rule - Multiple Purchases across accounts

If I purchase a stock/option, sell it for a loss, and then repurchase the same stock/option in multiple accounts, does the wash rule apply to the first repurchase? I think my understanding of options ...
2
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1answer
78 views

Can a Roth 401(k) be transferred somehow to a Roth IRA if younger than 59.5-year-old and not leaving one's job?

I understand that: A Roth 401(k) may be rolled over to a Roth IRA if older than 59.5-year-old or if leaving one's job. It is possible to do in-service distributions from an after-tax 401(k) to a Roth ...
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1answer
36 views

Will capital gains from one state offset capital losses from another state?

I moved in the middle of the year. I made capital gains from stock sale while living in NYC and then had capital loss from stock sale after I moved to NJ. Usually I could offset capital gains with ...
2
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1answer
31 views

IRS sale of main home form entry notation

In the instructions for IRS Form 8949, it lists out a table of codes that you can put on the form. For the main home sale exclusion, the code is "H". It further explains: "Report the ...
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1answer
42 views

Option trader with wash sales at the end of the year

I day trade options and I understand that wash sales at the end of the year can really screw you. I have not traded any position in 2021 that I traded in the last 40 days of 2020 in either my day ...
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2answers
24 views

Is the FEIE tax reduction, based on Physical Presence Test, prorated based on how many days you were outside of the country in the year?

Let's suppose that I am out of the USA from January 1st 2020 to December 31st 2020 for 335 days of the year. So I do qualify, but instead of the full ~100k reduction, would I only get (335/365) * 100k ...
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3answers
342 views

What kind of services do mutual funds offer that their equivalent ETFs don't?

This answer by base64 mentions: Now you may ask why VTI is 0.03% while VTSAX 0.04%. That is because Vanguard of VTSAX provides service, while the service of VTI is provided by your broker. I don't ...
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0answers
22 views

Why is the second lowest cost silver plan (SLCSP) premium reported as $0 when no advance premium tax credit (APTC) was taken?

In the instructions for Form 8962 (Premium Tax Credit), it says: If no APTC was paid for your coverage, Form 1095-A, Part III, column B, may be wrong or blank or may report your applicable SLCSP ...
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4answers
233 views

What would most likely happen if you owed money to a business upon completion of a service but realised that you don't have a way to pay?

I came pretty near this situation, but luckily I had an extra debit card (although I would've preferred to use my credit card). I was at a vet to prepare my pet for a surgical procedure, and they ...
10
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2answers
2k views

Why is the expense ratio of an index fund sometimes higher than its equivalent ETF?

Vanguard Total Stock Market Index Fund Investor Shares (VTSMX)'s expense ratio is 0.14% whereas VTI, its equivalent ETF, has an expense ratio of 0.03%. Why is the expense ratio of an index fund ...
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7answers
5k views

Why are cheques so insecure?

I was reading this question about fraud committed by printing and cashing checks and the thought occurred to me that is should be trivial to prevent such scams. There are many ways that this could be ...
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1answer
80 views

Why are outgoing international wires from the United States typically more expensive than outgoing domestic wires?

I see on https://www.finder.com/bank-fees-wire-transfers (mirror) that outgoing international wires from the US are typically more expensive than outgoing domestic wires: Bank Incoming domestic wire ...
1
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1answer
72 views

Eligibility for stimulus payments

In 2020 I became a resident for tax purposes via the substantial presence test. I also got married in 2020. My wife is from Canada, moved to the US mid to late 2020, but has not yet passed the ...
2
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0answers
62 views

Is there any reason why my federal tax is reduced while the state tax remained almost the same?

I'm a PhD student living in South Carolina. I have a graduate research assistant job in my university and my salary is $20,000 per year. I just got my paycheck recently and I realized that my direct ...
2
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0answers
40 views

Made large capital gains on Dec 31, 2020. Should I send a check to the IRS right-away earlier than sending my return for 2020? [duplicate]

In the US, I made large capital gains on the last few days of 2020. It was not so much anticipated, so I didn't send the IRS any estimated taxes for these gains. I am afraid of possible penalties for ...
1
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1answer
127 views

Why are long-dated US treasury bond yields so low?

I know that the US Fed sets only the federal funds rate, which impacts only the shorter term treasury bonds. The longer term bond yields (ie 20, 30 years) are impacted by demand for those bonds. The ...
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3answers
89 views

Wash Sale Question [duplicate]

It's Jan 1st and I buy 1 share of XYZ for $10. Jan 2nd I sell it for $9. Jan 3rd I buy it back for $9. Jan 4th I sell it for $8. Final loss: -$2 I understand this is a wash sale. But in my year end ...
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1answer
88 views

Roth 401(K) and a traditional IRA

If an individual has net earnings from self-employment of $3000 and he contributes $3000 to a Roth 401(K) can he also contribute to a traditional IRA? That is, does the contribution to the Roth 401(K) ...
2
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1answer
39 views

How broadly are qualified expenses defined for the Lifetime Learning Tax Credit?

The IRS allows 20% of up to $10,000 of "qualified education expenses" to be applied to one's tax bill via the Lifetime Learning Credit (LLC). I've been searching for more information ...
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2answers
52 views

Offsetting capital gains with previous losses

I only trade options. Nothing exotic but just buying and selling CALLS and PUTS. So for example if I lost 30,000 USD trading options for the 2020 Tax Year. In 2021 I go on to profit 40,000 USD. Does ...
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1answer
62 views

what does “Announces Proposed Public Offering of Common Stock” mean?

Sometimes we can get news about "XXX Company Announces Proposed Public Offering of Common Stock". What does that mean? Does it mean the company is in good shape or in a bad situation? Its ...
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2answers
62 views

When a company spins off a part of itself into a new company and I'm long the parent company will I automatically be long the spin off company?

*Disclaimer: This question is regarding taxes in the United States of America. I own stock in a company that announced at the end of 2020 that it will be spinning off a portion of its business later ...
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0answers
11 views

How to properly compare the performance of a domestic index fund and an international index fund domiciled in the U.S?

For example, when comparing the performance of IVV (which tracks the S&P500), against the performance of the FTSE Canada RIC Capped Index (which tracks mid and large cap Canadian stocks), the S&...
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1answer
74 views

Does this mean I cannot do pre-market trading?

I am a Fidelity customer. Does the first Warning mean I cannot do pre-market trading? If that is true, who can? EDIT: The order is actually executed when the price target is met. I am confused.
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2answers
154 views

What if Other Income approaches “self-employed”? Large “Other Income” amounts?

I was wondering, in the US when you file your tax return you are either a "normal" salaried employee, W-2, or "self-employed". If you're a "normal" salaried filer, there'...
12
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1answer
92 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 ...
3
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1answer
79 views

How will I be taxed on returns from crowdfunded debt?

I'm in the US and playing with investing with crowdfunded debt like miventure. (I'm not affiliated with them, just an example) When I end up getting yields from this I think it ends up in my e-wallet ...
-1
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2answers
67 views

Options trading and wash rule

For example, I buy a PUT option on TSLA for 3000 dollars and realize it's not working and sell it to close for 2000 dollars. Thus I have lost 1000 dollars on this transaction. Within thirty days of ...
4
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1answer
86 views

After converting after-tax 401(k) into Roth IRA, can the 401(k) contributions be withdrawn from the IRA without penalties?

https://www.investopedia.com/articles/personal-finance/063015/roth-401k-vs-roth-ira-one-better.asp mentions this upside of Roth IRA regarding pre-retirement withdrawals: A final advantage is greater ...
0
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2answers
65 views

Capital Gains Term when purchasing more of the same asset [duplicate]

How does Capital Gains Term work in this scenario? Buy x amount of xyz stock and hold for over a year. Then buy z amount of the same asset and hold for less than a year. Questions: If I sell the ...
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4answers
221 views

Why contribute monthly to an IRA rather than a brokerage account?

Hypothetically, if I had a long term investment in mind (let's use FNCMX) that I believed would perform well enough annually to allow me to retire at an early age, (call it 40 years old) what ...
1
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1answer
45 views

Employee health insurance before vs after tax deduction

The employee insurance I am being offered gives a choice deduction being taken out before or after tax. Which of these choices would result in overall more money saved? Cost of insurance is ~ $60 a ...
0
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1answer
34 views

What should I do if my Dependent Care FSA amounts are inconsistent?

Box 10 (for dependent care FSA) shows $4423. I elected, contributed, and was reimbursed 5000 according to the benefit provider, but only actually had 4423 withheld according to the payroll provider. ...
0
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1answer
219 views

Day Trade $25,000 again

If I have a margin Day Trade account, after some transactions/tradings there is only $25,000 cash in this account now. There are some cases for this Day Trade account I need to know its status. Please ...
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0answers
27 views

Revenue earned from consulting work C-corporation taxes

I am a U.S citizen and did some consulting work for a company based in Singapore. I lived abroad and paid taxes in the country of residence. I am owner of a US based C-corporation and I reported the ...
1
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1answer
56 views

Error in 401K rollover to new platform. Same employer

My Company changed their 401K platform due to a partner split. Prior to this change I took out my portion and rolled it into an IRA. Two months later when they rolled all other employees amounts over ...
0
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1answer
29 views

Can I select lots for exercised covered calls on transferred shares where I'm tracking the cost basis?

I wrote covered calls against multiple lots of company A stock, each lot with a different cost basis. I originally bought the shares through eTrade, later transferring them to Vanguard. Only a portion ...
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2answers
142 views

help me to understand the day trade requirements

I am new to the stock market and the Day Trade. I need your help to clarify some definitions (from Fidelity): "A Day Trade is defined as an opening trade followed by a closing trade in the same ...
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0answers
25 views

Tax benefits for investors holding SAFE agreement with closing US-startup

I hold investments in a startup, using a SAFE agreement as the investment instrument. The startup is no longer existing, and as per the nature of the agreement, the investment is lost. I'd like to ...
3
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1answer
182 views

Company Received Unemployment Claim - I Still Work There

Company received unemployment claim in my name (with slight mispelling of my first name) I still work for the company. I have no filed anything. The paperwork has my SSN. What are my next steps and ...
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0answers
59 views

Best place to keep savings for home down payment?

I'm currently saving for a first home down payment (in USA), but don't want to keep a large pile of money sitting in a low-yield savings account while I'm looking for the right home. I want to find a ...
0
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1answer
35 views

Does closing an unqualified covered call option result in realization of gains on the underlying?

In general, in a covered call scenario, does any trade on the options contracts trigger a realization of capital gains on the underlying? I am not concerned about the reset of the holding period on ...
1
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1answer
111 views

When selling a startup, how is the sale price taxed?

I'm interested in understanding how the sale price of a company passes through an LLC and ultimately finds its way to the founders. Let's say i have a startup which is filed as an LLC, taxed as an s-...

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