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Assuming the bulk of your income comes from "earned income," your best bets are moves that lower your taxable income.
You say that some of your salary goes into a 401(k). The more you contribute to your 401(k), the less taxable income you have. In 2019 the maximum amount you can contribute is $19,000. In 2020 that number will go up to $19,500.
Other tax-...
28
Nope, the IRS just deals with federal. You'll have to work with your state's department/office of revenue to settle up with them.
27
Generally speaking, you cannot lower your expenses related to taxes. You can lower your taxes, but not in a way that will make sense.
For example, if you qualify for itemized deductions, then a $1 deductible expense will save you up to $0.32 in taxes. While you did cut your taxes, it cost you $0.68 to reduce your taxes.
There are exceptions to the above ...
7
He was told he will not receive any tax documentation for this settlement.
This also means that the IRS will not receive any tax documentation for this settlement. Forms documenting taxable income, such as W-2 and 1099, are sent in duplicate (effectively) to the taxpayer and the IRS, and this is the primary way the IRS knows about income.
The IRS does not ...
7
You're probably better off having an accountant or tax lawyer going over your finances than having people on the internet try to come up with ideas that might apply to you, but one small thing is that if you use public transit and your employer has a transit program set up, you can put $265 a month of pre-tax money on a Clipper Card or towards other public ...
7
What are the ways I can pay less taxes?
Daniel already noted that you can reduce your taxes by making charitable contributions; note that these lower your taxable income and not your taxes. That is, it is a deduction, not a credit. If you give your last earned dollar to charity, it lowers your taxes by the 32 cents that you would have paid on that dollar ...
6
In addition to the other excellent answers, consider doing a "Backdoor Roth IRA." Assuming that your income is too high to fund a traditional IRA with pre-tax dollars, fund it to the max with after-tax dollars, then immediately do a Roth IRA conversion. There is no immediate tax cost or benefit the first year, but as soon as the Roth IRA begins earning ...
5
Get married
Get divorced
A huge chunk of your income will be allocated to "spousal support", which is tax deductible for you (taxable for your ex-spouse). This will significantly reduce your tax burden.
4
Employers may reimburse employees for medical costs through a Section 105 plan, named after the IRC Section 105. Reimbursements made this way are tax free to the employee. Reimbursements can be used to pay insurance premiums, including Medicare premiums and Medicare supplement premiums. Small employers often implement a QSEHRA (qualified small employer HRA) ...
3
I did a little bit of googling and found the answer to my own question. Not sure why I was too lazy to do that initially.
Anyway, it depends on when you have to repay the bonus. If you accept the job, then have to pay back the bonus in the same tax year, then you just repay the amount you received after taxes. IE, if my bonus was $1000 and I only received $...
3
If you earned the money in your PayPal account overseas before even arriving in Australia, then there is no tax payable on that money, as you would be classed as a non-resident for tax purposes.
You will only pay tax in Australia on the money you earn in Australia, whether that is through employment in Australia, through a business in Australia, interest on ...
3
or can I just added to next years income taxes?
Of course, it goes on this year's income taxes, but that's probably what you meant.
Since it's so late in the year, and just $250, I'd just add it to your 2019 Tax Return and call it a day.
(I hope you put about $50 away for the taxes you might owe on it.)
3
If you and your wife file as married filing jointly, the only difference her starting date (2019 or 2020) will make in your Federal Income Tax is that the two of you will have more income in 2019 because she started in 2019. And, note: the pertinent date is not when she started her job, but when she received her first paycheck. State Income Taxes are often ...
3
I believe that, in general, your work income would be taxed by both your state of work and state of residence, and you would claim a tax credit for taxes paid to one state on the doubly-taxed income on the other state's tax return. Whether the credit is claimed on the resident state or nonresident state depends on the exact pair of states. (In the case of ...
3
One way to pay less taxes is with the mortgage deduction. The mortgage payment replaces a rent payment but the interest on the mortgage is deductible. Then hopefully the property also increases in value by more than the interest cost of the mortgage. Also, consider the property taxes.
3
The IRS allows travel deductions for "temporary assignments" which it considers as job assignments outside of your tax home (i.e. not in the city or region where you normally work) which are expected to last for 1 year or less. So, for instance, if you normally work in New York but you will be traveling to Los Angeles for 6 months, that counts as a ...
2
I believe that you should not be subject to US taxes on your work income after you started working remotely from abroad, and your employer should not be withholding US taxes (including federal income tax as well as FICA tax (Social Security tax and Medicare tax), as well as any state taxes).
As a nonresident alien, you are only subject to US taxes on your ...
2
I believe they will provide me with a 1099 statement.
Income from contract work is considered business income and gets entered via Schedule C (or C-EZ) regardless of whether or not that income is reported to the IRS separately via 1099. You'll also record any appropriate expenses that might offset this income. If after factoring in expenses there's more ...
2
This might work if you die in your seventies. But, since the distribution period decreases every year (percentage increases), if you live into your late eighties, you will be accessed the penalty over and over for the amounts you should have taken.
Assuming that your tax bracket soars to 70%, a modest growth of 3%, and whoever inherits this IRA pays zero ...
2
IANAL but as far as I know in the EU people have to pay their taxes based on the country where they live (residency), not based on nationality. Since you spend more than 6 months a year in the US, you're considered a US resident so you're no liable to general income taxes in Portugal.
Per the official web portal of the EU:
Living in Portugal? You must ...
2
I am not an accountant so YMMV. Also, tax rates change as they have since the question was posted.
In the UK salary employees are paid each month after all taxes. Most UK citizens simply don't think about tax. When you are a freelancer you pay the tax bills yourself. As per the calculations below you may find you pay more taxes than a typical salaried ...
2
There is no tax exemption. You have to declare it as income from other sources and pay taxes as per tax brackets
1
I would only trust a tax accountant's answer on that one. It seems like it could go either way and may even change from year to year. LLCs organized as a sole proprietorship would be tricky in this case.
If, however, your LLC was organized as a S-Corp this would be an unnecessary step. You would simply hire yourself and pay yourself occasionally. Part ...
1
Any money that transferred to an individual bank account is not subjected to tax. However, you must declare it if the amount exceeds A$10000. The declaration is just a part of anti-money laundering measurement, no details explanation required. Do not try to outsmart the system by transfer a lot of money and make it below $9999 to avoid declaration. ...
1
You know, the whole Idea around the payment services like Google store, Apple store, ShareIt, ... is to save you all the hassle of international taxation.
You get you money from google India and google resales your products, with correct taxation (VAT, mainly) to the customers around the world.
You only have to worry about the correct declaration of your ...
1
No, you will not have to pay income tax to the US if you aren't a tax resident of the US.
You likely will have to pay income tax in the country you live and/or your country of citizenship.
1
As a software developer, have you considered incorporating and being paid as an independent contractor? There are a lot of things you do now that could be written off as an independent contractor such as commuting to an office, purchasing a computer, software licenses, and other office supplies.
If you have a home office, you can write off the portion of ...
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