63
votes
Accepted
Payroll tax on wheat given as wages
The CPA is mostly correct. Her use of "in kind" may be confusing, but it appears that while our gut would call this "bartering" and refer to the rules regarding same, there's a different set of rules ...
30
votes
Accepted
How do you know how much to withold on your W-4?
My father says that if I need more money, I can withold less on my W2 (which won't result in the same oh here's $3,000 come tax return time), but will give us access to more money.
He's right.
So ...
- 50.6k
28
votes
Accepted
Why am I being under taxed on a part time job?
In the US we deduct certain things from income to calculate how much of our income is taxable. Rather than have everyone list out all applicable deductions people can choose to use a standard ...
- 69.1k
27
votes
Accepted
W2 Form Stating Single instead of Married
The status of 'married' or 'single' on your W-2 has nothing to do with how you file your taxes, only with how taxes were withheld by your employer. Single status withholding is higher than married, ...
- 4,452
22
votes
Accepted
Why do some employees fill out a W-4 and some don't?
This is functionally the same as submitting a W4 claiming 0. The employee is defaulted to the highest withholding for taxes. Some people like the quasi-forced-savings aspect of excess withholdings ...
- 49k
18
votes
Accepted
For 2017 I have 3 different W-2s with 3 different addresses
For the federal taxes, it is no problem at all.
For state taxes, just be aware that you probably had state tax withheld from multiple states. Look at your W-2’s closely to determine where all of ...
- 115k
15
votes
How do you know how much to withold on your W-4?
The goal of withholding is to get as close to the actual amount of tax you will owe by the end of the year as possible. So ideally, you should have no refund and owe no tax when you file your tax ...
- 16.9k
15
votes
Accepted
Employer not sending corrected W-2. What can I do?
What are my options if they don't send me the corrected W-2? What
happens if I don't file my taxes by October 2023 for any reason?
The IRS has guidance: W-2 - Additional, Incorrect, Lost, Non-Receipt,...
- 136k
13
votes
Should/How I pay tax return in US for last year even after I moved permanently to India?
You were US resident part of the year (or at least had US-sourced income, I'm assuming you were resident), so yes - you should be filing a tax return. Since you returned to India, this would be a dual-...
- 166k
13
votes
Overwithholding due to wrong address
I have asked the company to send me the corrected W2 form, but they
are not responding.
If this is for income received in 2022:
The company should not be issuing a corrected W-2. The purpose of the ...
- 136k
12
votes
Why do some employees fill out a W-4 and some don't?
There's two cases to consider where co-workers aren't really employees of the company:
Self-employed
These workers are independent contractors paid via a 1099. As self employed, they pay tax ...
- 3,272
12
votes
Accepted
Is it legal for a company to deduct their FICA match from a W2 employee's pay?
If you're a 1099 contractor, you're considered self-employed. You'd be responsible for both the employer and employee portion of Social Security and Medicare taxes (this is SECA for self-employed ...
- 6,508
11
votes
Payroll tax on wheat given as wages
Conceptually, you should think of it like this: You issue your employee a paycheck, and your employee then turns around and purchases the amount of wheat from you which equals the entire net amount of ...
- 47.2k
10
votes
Does an employee have the right to pay the federal and state taxes themselves instead of having employer doing it?
You can file a revised W-4 with your employer claiming more allowances than you do now. More allowances means less Federal tax and (if applicable and likely with a separate form) less state tax. This ...
- 13.8k
10
votes
Payroll tax on wheat given as wages
Farm income is a separate beast under Schedule F. There may be a basis for the CPA'S assertion in regards to a farm-income concept of "commodity wages" though I don't have the expertise to ...
- 8,348
10
votes
IRS notice of owing money for income tax and interest
Is that really accurate?
You need to find the 1099-G forms that you should have received from the state. It is possible that it didn't get to you because in another question from a year ago you ...
- 136k
7
votes
I won't be receiving a W-2. When should I call the IRS?
Can I call IRS now or after Jan 31st?
The IRS says this: "If you are unable to get a copy from your employer, you may call the IRS at 800-829-1040 after Feb. 23." Unfortunately, it does not look like ...
- 6,849
7
votes
FICA was not withheld from my paycheck
Should I have a W-2 re-issued?
A W-2 can be corrected and a new copy will be filed with the IRS if your employer incorrectly reported your income and withholding on a W-2 that they issued. In this ...
- 32.7k
7
votes
Accepted
Received W2 from ex-employer for selling shares previously bought under ESPP
It is not a mistake. The stock was sold quickly enough to be considered a disqualifying disposition, so the ESPP discount is considered income. The amount reflected on the W-2 should be the amount ...
- 5,097
7
votes
Accepted
A picture of one copy from a W-2: can it be used for filing taxes?
If you are filing electronically, then as long as you can read the numbers on the cellphone photo so that you can type them in, that should be fine. You don't send the actual paper to the IRS anyway, ...
- 22k
7
votes
W-2 contractor loopholes
To be clear, if you are receiving a W-2, you are an employee, not a self-employed contractor.
Before the new tax reform law, it was possible to deduct unreimbursed employee expenses. These were ...
- 115k
7
votes
Accepted
Working as a European self-employed for an USA company
Suppose you're a US company and you want to hire a guy in Palombia to do coding for you.
You may try to structure the deal such that -- according to the American law you're used to -- it is just you ...
7
votes
Do I have to wait for my W-2s to fill my tax return for the previous year?
Companies like TurboTax can import data like W-2 if its available to them, but I believe entering the 1099-MISC is a manual operation.
Generally you should be paying estimated tax throughout the year ...
- 2,702
7
votes
How to avoid paying tax on starting bonus that was used to reimburse a bonus from a prior employer?
You don't get to avoid paying taxes on this new income. But, you may be eligible to deduct the repayment to your previous employer. Publication 525 and its section on Repayments may provide you with ...
- 2,302
7
votes
Is it legal for a company to deduct their FICA match from a W2 employee's pay?
They can't legally deduct both parts of FICA and Medicare. What is supposed to happen is that you get 7.65% deducted from your pay and, independently, the employer pays an additional 7.65%. The ...
6
votes
Tax questions and understanding my paystub
I will handle your questions point-by-point:
Plus reported tips $239 (I have never reported any)
If you are working in a position that you collect tips, some of the tips you receive are from ...
- 136k
6
votes
I was given a 1099-misc instead of a w-2 what are my next steps?
I agree that you should have received both a 1099 and a W2 from your employer. They may be reluctant to do that because some people believe that could trigger an IRS audit. The reason is that ...
- 47.2k
6
votes
Accepted
W2 & Self-Employment Tax - Taxed Twice?
No - self-employment tax is to cover the 15% FICA and medicare withholdings that an employer would normally cover half of (they would pay 7.6% and withhold 7.6% from your paycheck).
You would pay ...
- 131k
6
votes
Accepted
Can I deduct travel expenses even if I received a W-2?
In order to deduct travel (and other expenses), you would have to classify this as a legitimate business. In this case, even if you did get a 1099, you would still not be able to deduct expenses ...
- 76.1k
6
votes
Is it legal for a company to deduct their FICA match from a W2 employee's pay?
The question is whether this is legal from the IRS' perspective
It is not. These are taxes on the employer, you pay your own taxes. You can report them to the IRS following the instructions here. You'...
- 166k
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