New answers tagged

1 vote

Wash Sale - Selling RSU Shares Before Another RSU Vest

I have another batch of RSUs that are vesting in two weeks. If I sell the already vested RSUs today, would me acquiring another batch of RSUs in two weeks constitute a wash sale and prevent me from ...
user avatar
  • 127k
2 votes
Accepted

How to calculate interest on amount due with an amended return?

You can't calculate and pay interest with additional tax owed on an amended return, since there's no line for such interest on Form 1040-X. The IRS will calculate it and bill you. The reason is that ...
user avatar
0 votes

How to calculate interest on amount due with an amended return?

You most definitely can leave it to the IRS to calculate. Submit the amended return and the owed taxes and they'll send you (or not...) the bill for the interest.
user avatar
  • 127k
3 votes
Accepted

Tax filing requirement for Teens 16 to 21 years

In general, the filing requirement is not dependent on whether or not you filed the year before. If you aren’t sure whether or not you need to file in a given situation, the filing requirement ...
user avatar
1 vote

Can you defer the July self assessment tax payment until January in the UK

Everyone who self-assesses for income tax is theoretically subject to making three payments in respect of a given tax year. Let's take 2022-2023 as an example: A first payment on account in Janary ...
user avatar
0 votes

Can you defer the July self assessment tax payment until January in the UK

If submitting your tax return online you may be able to postpone until January the year after the tax year ends. That is the case for rental income "on the side", for example. HMRC deadlines ...
user avatar
17 votes

What's the point of the wash rule?

The point of the wash trading rule [and similar variations in different jurisdictions] is to prevent someone from deferring gains and accelerating recognition of losses, for tax purposes. Without a ...
user avatar
27 votes

What's the point of the wash rule?

The point of the wash rule is to defer (not eliminate) the tax benefit of a sale until you close out the position that you opened after realizing the loss. In your example, you closed your re-opened ...
user avatar
  • 113k
2 votes
Accepted

What is the contribution limit for self-employed person to their SEP-IRA?

Sorry to say this, but ... your limit is indeed 20% of net income (profit - half SE tax), not 25%. See the Rate Table for Self-Employed in Pub 560. (Not sure what's going on with the CP2000 you got, ...
user avatar
0 votes

How do I determine the division of cost basis for multiple NFTs minted in a single transaction?

In a "regular" (aka tangible) assets transaction, you'd do an appraisal of each of the assets and split the cost basis proportionally to the appraised values.
user avatar
  • 127k
1 vote
Accepted

How much tax return can I expect from a mortgage compared to standard deductible

According to the irs: the standard deduction rises to $12,950 for 2022 You have to see if your itemized deductions exceed the $12,950. Most people when they itemize use the following things: State ...
user avatar
0 votes

How, *exactly*, do I calculate my UK PAYE personal Tax Allowance ... since it's not quite the published figure?

I'm doing the monthly version of this, because that's what I have source data to compare/validate against. I haven't examined what happens in the weekly/other version, thought the links have the data, ...
user avatar
  • 2,002
1 vote
Accepted

UK Taxation: Should I be able to calculate my PAYE tax for the year exactly?

WOW! I've now solved the ~probl~puzzle, and found the information that was missing. As always the answer is "secret answer D": the UK Tax Rules are exact ... they just don't quite match the ...
user avatar
  • 2,002
0 votes
Accepted

New reporting requirements in 2022 for proceeds over $600

Frame challenge: The IRS is the least of your worries There are at least a couple of possibilities here that work out very badly for you. You're straight up being scammed. I think this is the most ...
user avatar
  • 431
3 votes
Accepted

What methods exist to verify if my tax return was received by the IRS?

For paper filing the way to go is with certified USPS service. This is the only legally binding proof of mailing if any dispute arises, and also provides tracking for you to check when the envelope ...
user avatar
  • 127k
1 vote

UK Taxation: Should I be able to calculate my PAYE tax for the year exactly?

This is a partial answer that I may flesh out later, but according to the comments perhaps still enough of an answer to be useful. The short answer is that PAYE tax is predictable but it does take a ...
user avatar
4 votes
Accepted

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?

If you guys are filing taxes jointly, then you guys are jointly claiming the dependent on your joint tax return. It's not a case of "you claiming" or "her claiming" the dependent. ...
user avatar
  • 15.6k
6 votes

USPS taking too long to deliver tax returns [US Taxes]

IRS uses the postmark date rather than the delivery date. From IRS Topic No. 301, second paragraph: Your return is considered filed on time if the envelope is properly addressed, has enough postage, ...
user avatar
  • 1,208
4 votes
Accepted

Do I need to fill in my tax declaration in Germany?

Assuming your only income is through normal, full-time employment at a single job and your tax bracket is "Steuerklasse 1" you do not explicitely need to declare your taxes in Germany. Your ...
user avatar
  • 156
14 votes

Can I put my rental in a trust and have the trust sell it?

What you are missing: Trusts have to pay income tax too, and the rates are higher than personal income tax. There is also no standard deductible for them.
user avatar
  • 36.7k
2 votes
Accepted

Private health insurance in Germany

(I don't know about the specialties of Beamte, "only" about the private/statutory health insurance choices as they apply to freelancers/self-employed. Is the private health insurance fully ...
user avatar
22 votes

Can I put my rental in a trust and have the trust sell it?

If the trust is a revocable grantor trust (i.e.: the grantor is the trustee and the beneficiary and can change the trust any time), then it is invisible to the IRS and is indistinguishable from the ...
user avatar
  • 127k
1 vote
Accepted

Self-Employment: is equipment deductible as part of the home office deduction, or as a separate deduction?

Every separate item is deducted separately using its own depreciation schedule (or in case of small items as a misc expense or office supplies).
user avatar
  • 127k
8 votes
Accepted

Will I be penalized for not making an estimated payment in the first quarter for a side gig that started in the second quarter?

If you go with option #2 and you withhold enough extra to avoid an underpayment (safe harbors are summarized here), you won't be penalized. This is by far the simpler option as long as your side gig ...
user avatar
  • 14.6k
0 votes

Will I be penalized for not making an estimated payment in the first quarter for a side gig that started in the second quarter?

Based on my direct experience (self-employed, married filing jointly), you are not likely to be penalized. As you've noted, you are currently employed and you are currently having taxes withheld. The ...
user avatar
2 votes
Accepted

Should I report a cryptocurrency transaction with a $0 capital gain?

Yes you should. You want to show that there is no taxable gain on the transaction.
user avatar
  • 3,203
5 votes

My tax return was approved, when does the IRS debit my account?

When you e-file in TurboTax, it asks you how you want to pay the amount due, and you have to make a decision. I think they offer 'pay with ACH from my account' (the default), and 'mail a check ...
user avatar
  • 36.7k
-1 votes

Distributed from wrong IRA account last year. Any way to correct?

My daughter, a highly experienced tax CPA and manager with Deloitte, recommends contacting IRS and asking about their one-time correction. If they agree, this will save us the $6k penalty, and I'll ...
user avatar
  • 536
4 votes
Accepted

My tax return was approved, when does the IRS debit my account?

Todays deadline is for filing. So long as you have filed(and submitted payment) by today, when you actually pay your owed taxes(money leaving your account) doesn't affect the "lateness" of ...
user avatar
  • 2,316
8 votes
Accepted

Is this how you calculate how much you can deduct from itemized deduction for mortgage interest and property tax?

I have a few comments after answering your questions: Does this mean I can have deduction of 22,369 + 8000 = $32,369 from mortgage interest and property tax? Yes you math is correct. Since $32,369 ...
user avatar
2 votes

Is this how you calculate how much you can deduct from itemized deduction for mortgage interest and property tax?

You should use the values you get from your bank on form 1098 and from your county for the property tax which is proportional per value (as opposed to fixed amount per parcel which is non-deductible), ...
user avatar
  • 127k
3 votes

Is this how you calculate how much you can deduct from itemized deduction for mortgage interest and property tax?

Yes. The exact amount of mortgage interest you paid will be reported to you on form 1098 at the end of the year. Yes.
user avatar
  • 15.6k
1 vote

Life span of overpaid tax applied to next year?

As mentioned in the comments, you're giving the government a free loan. The government will be more than happy to allow you to roll the loan forward year after year for as long as you wish to ...
user avatar
  • 127k

Top 50 recent answers are included