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Receiving Freelance Payments as an NRI: NRE vs. NRO Account

Deposits into NRE accounts must be in hard (non-Indian) currency; the deposits are then converted into INR and held as INR in the NRE account. So, unless the client has access to US dollars (say) and ...
Dilip Sarwate's user avatar
2 votes

FICA refund on H1B as a non-resident while performing work outside the US

According to here, it says that nonresident aliens on H-visas are exempt from FICA taxes, so I could be in for a 100% refund. That page specifically talks about H2 and H2A in that context. You had ...
littleadv's user avatar
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8 votes

Why is the IRS asking about digital assets?

The IRS added this question because people were not considering trading in digital assets as a taxable activity. In fact, in its origin, crypto currencies were peddled as a tax evasion scheme. Many ...
littleadv's user avatar
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4 votes
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Should I convert my rental unit into an LLC for tax purposes?

In the US LLC is a disregarded entity for tax purposes and is effectively ignored. In California LLC provides liability protection and limitations. In return you're liable for an LLC tax which is at ...
littleadv's user avatar
  • 174k
0 votes

What double-entry bookkeeping and account structure lets me report taxable distributions from retirement savings plan (e.g. RRSP)?

For each asset account for a tax-deferred retirement savings plan, create a companion asset account called "taxable distributions from" [the plan]. Book taxable withdrawals from the plan as ...
Jim DeLaHunt's user avatar
4 votes
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How to pay quarterly estimated taxes when IRS doesn't let me pay online?

Yes, you can just mail them a check with the form 1040-ES payment voucher. See the instructions here.
littleadv's user avatar
  • 174k
1 vote
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exchange rate for taxes paid and reported on form 1116

I recd. interest from several short-term deposits from Spanish banks, none of which report the exact date on which they paid me the interest or deducted the tax at source. That's extremely unlikely. ...
littleadv's user avatar
  • 174k
2 votes

W4 tax form and need suggestions re: single vs. married filing jointly

If you plan to file as married filing jointly, you should put that on your W4. It can get complicated with two incomes, and you will need to account for that on both W4s. If you file as single then ...
D Stanley's user avatar
  • 135k
4 votes

Can I put my daughter back on my taxes after she filed years before on her own?

Just to clear up some terminology, one can still file a return and still be claimed as a dependent on someone else's tax return. This is common for children that earn income and are still "...
D Stanley's user avatar
  • 135k
3 votes
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Did this person need to make estimated taxes?

I want to make a few clarifying assumptions because you've included 3 tax years - 2022, 2023, and 2024, and you've also stated two different tax liabilities for 2023. $100 is the 2022 (not 2023) tax ...
Stan H's user avatar
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-1 votes

Did this person need to make estimated taxes?

Yes, that is correct. Of course the interest/penalty may be small enough that it isn't worth worrying about. Also check the "safe haven" rules.
keshlam's user avatar
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2 votes
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NRA/RA Test and FICA exemption

The FICA exemption based on F1 status and an exempt job no longer applies even if you're a non-resident, since 2024 is your sixth calendar year in status. As to the residency status, check the ...
littleadv's user avatar
  • 174k
0 votes
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My mother, Estate Income Tax, a living revocable trust and the 645 Election

Given these facts, can her executor make the income tax return for the estate final and still leave the trust open with plans to file additional tax returns in the next year? Yes, but the election ...
littleadv's user avatar
  • 174k
2 votes
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How much taxes would I have to pay if I sold my startup in cash?

If I sold my tech startup to a large entity for $1 Billion dollars in cash. How much is Uncle Sam getting? Selling a business is complex transaction. They have assets and liabilities. They have ...
mhoran_psprep's user avatar
15 votes

Donated $500 to a charity but didn't get an official receipt

Contact the charity and ask them to send you a receipt. If they're legitimate they shouldn't have a problem doing that Note that not all gifts to all charities are tax deductible. Or they may only be ...
keshlam's user avatar
  • 46.5k
7 votes

I filed my taxes not knowing I was being claimed as a dependent meaning that the Head of Household will have more deducted than before

In order to amend a mistake on your tax return you file... an amended tax return. Here's the IRS page on amending returns, with links to all the related information and instructions you might need.
littleadv's user avatar
  • 174k
1 vote

Are medicare advantage rewards taxable?

Last year, the IRS issue a memorandum stating "Certain Wellness Benefits are Taxable". According to this article, rewards earned through a rewards program are not considered taxable unless ...
Bob Baerker's user avatar
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2 votes
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Calculating non-exempt interest for California income tax

If the fund invests more than half of its assets in bonds from outside California, then all the fund interest is taxable, including that from CA bonds. See the instructions for the CA FTB form 540 ...
littleadv's user avatar
  • 174k
3 votes
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Double self-employment tax (MA state and federal)?

First, as other answers have mentioned, Massachusetts does not have a separate self-employment tax. The federal Self-Employment Tax is simply the employer and employee parts of the FICA tax (i.e. ...
user102008's user avatar
  • 17.2k
2 votes

Double self-employment tax (MA state and federal)?

There are many websites which give a general idea of how much tax you should be expecting to pay. The first one I happened to stumble across that focused on 1099 consultants (not an endorsement!) was ...
keshlam's user avatar
  • 46.5k
2 votes

Double self-employment tax (MA state and federal)?

Massachusetts does not have a separate self-employment tax. There is only the federal tax. Some sites may give the wrong impression about this. A quick Google search turns up multiple sites that seem ...
user2357112's user avatar

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