New answers tagged

0

It depends on the tax laws in your jurisdiction and your company type - in many cases accumulated corporate losses can be applied in future years against earnings. There may also be specific tax credits if the losses are incurred in some type of government-favored activity such as R&D.


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Per the 1040 instructions (also downloadable in PDF, if you want to have or keep a copy or for anyone who finds this in the future, use the nav link at the top of the page to go up one level): Scholarship or fellowship income, if taxable, goes on line 1 with a notation SCH (sixth bullet). For details on whether and to what extent your grant is taxable, see ...


0

Is that really accurate? What are my options? The only people who can definitively answer both of these question are the IRS. You should look up the nearest office at https://www.irs.gov/help/contact-your-local-irs-office They will have copies of all the documents so you can double check their work on your own. I'd HIGHLY RECOMMEND paying this. File an ...


5

Unfortunately it sounds like you won't be getting anything, even if you file a return with no income. You said in a comment that your father pays more than 50% of your living expenses. This means he can claim you as a dependent, which means you are ineligible for the stimulus check. Note that even if he does not claim you, you still can't get the check. The ...


4

I filed electronically on March 22 and received the refund (direct deposit) 7 days later.


1

You first need to determine if you are somebody's tax dependent. The rules for that are outlined in the IRS Publication 501 and you can ask your family to run the Interactive Tax Assistant decision engine relative to the question to double-check. Based upon the facts and circumstances you have presented there is insufficient information to give you a ...


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Generally the IRS processes your return as soon as they can. So unless there is an issue that causes them to have to stop processing returns you will get your refund in a few weeks. It does depend on direct deposit vs paper check. Usually each year they set a date in January or February when they will start processing returns, but if you file after that ...


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The sooner you file your tax return, the sooner you’ll get your refund. This has not changed, and there has been no talk of delaying tax refund payments.


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The other answers have addressed whether and how "is that [tax] really accurate". As to "what are my options" and more concretely "Can I make the payment online?": YES -- the IRS makes it as easy as they can for you to pay them. (Gee, I wonder why they would want that.) The nav bar at the top of every page on their website has a prominent link to https://...


14

Its important to note that the minimum threshold of income to be required to file your taxes ($12,200 for a single filer under 65) is just that, a minimum to be required to file, not the minimum where filing is an option. If you so choose, you can file your taxes with $0 in reported income (or some small amount of money from your odd jobs in your specific ...


3

Is that really accurate? Your sheet shows an income that would put you in the 24% marginal tax bracket in 2018 The tax is $1668 on almost $7000 of taxable income, not $6000. That is 24%. The extra $89 interest. So yes, it is accurate. You seem to not be disputing the unemployment payment amount. Is the interest income accurate, about $1000?


22

If you have not (and will not) file your taxes for 2018 or 2019 then the only way to receive the check is to file for 2020 next spring. The check is actually an advance on a 2020 tax credit, so you can take it now or later. However, for this year you have until July 15 to file your 2019 taxes. Even if you have $200 in income for the year, might as well file ...


10

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 mentioned that you worked in several states. The IRS did get a copy of the 1099-G and are now reconciling all the forms they received with the SSN numbers to make ...


3

Yes, unemployment is taxable. You didn't specify a state, so here's what Maryland says: Are unemployment insurance payments taxable? Yes. Any unemployment insurance benefits that you receive must be reported as part of your gross income for both state and federal tax purposes. To assist you in filing your tax returns, we will send you an IRS Form ...


0

I am not familiar with US tax system but my general advice is to call IRS using number from a reliable source and ask them. The interest penalty is usually non negotiable but it makes no harm to just ask. If the notice is real I suggest you pay the amount within the due date to avoid additional interest.


5

You cannot attach documents; but you don't need to. The IRS assumes all data entered in the forms is correct, and you have the respective documents; your tax is decided on that basis. Only if they select you for an audit, they will contact you, and then you need the recipts, W2s, etc. So keep all orignals secure (for 6 years), and file your taxes without ...


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You cannot attach documents on free fillable forms, except those which are built into the program. From the website: General Program Limitations Attaching Statements- This program does not allow you to attach any documents to your return, except those available through the Add/View Forms menu. If you need to attach any such documents, you will ...


-1

I believe that that should be fine. You recharacterized part of your contribution, and you are now recharacterizing another part of your contribution.


3

AGI actually stands for Adjusted (not Annual) Gross Income, so that may be part of your problem. The IRS recommends you use the 'Return Transcript' for AGI. Search for ADJUSTED GROSS INCOME or ADJUSTED GROSS INCOME PER COMPUTER (hopefully they match). For me it's about a third of the way down the second page. There is a return transcript for each year. The ...


3

The CRA page about T2125 business expenses shows this about Line 8810 - Office Expenses: You can deduct the cost of office expenses. These include small items such as: pens pencils paper clips stationery stamps For Line 8811 - Office Stationary and Supplies, it says: You can deduct the cost of items the business used to provide ...


0

US citizens are required to file taxes regardless of where they live in the world. Most painfully, this also includes FBAR filings. Only the US and Eritrea do this to their citizens. Your only out is to renounce citizenship, which is a pretty aggressive stance and should only be contemplated after thorough review of your situation with a lawyer.


6

Social security and medicare taxes are still levied on 401k contributions at a total of 7.65%. Looking at your table, ($496 + $116)/$8,000 = 7.65%. Federal taxes were 22% of $1,200 (0.22 x $1200 = $264) which is inline with IRS rules, as pointed out by users in the comments. State taxes look like they are levied on the $1,200 as you expected. But, you can ...


4

This is probably why: Self-Employment Tax Rate The self-employment tax rate is 15.3%. The rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance). So you're probably not paying any Federal Tax, but you still have to contribute to other taxes. $462 is less than 13% of ...


2

It is not a smorgasboard. Your facts and circumstances decide which you must do. Based on yours: Pretend you got a 1099-MISC for that income. File Schedule C. And you report it exactly the same as if you had gotten a 1099-MISC. This means you must go through the rigmarole of filing Schedule C, which will seem weird because you don't have a sole ...


5

Yes, the deadline for making contributions to Traditional IRA and Roth IRA for 2019 is now July 15, 2020. See this IRS FAQ: Q17. Does this relief provide me more time to contribute money to my IRA for 2019? A17. Yes. Contributions can be made to your IRA, for a particular year, at any time during the year or by the due date for filing your ...


0

Ben Miller's answer is good, but for completeness, I will simply note that if any of your students had paid you more than $600, they would be legally required to report that on a 1099-MISC, per IRS rules. Of course, many folks don't do this, especially if the amount is not much above the threshold. But this would definitely make it important to report the ...


45

Let’s start with your last question first: Do I even need to report it? Yes, you are supposed to report it, as this is considered income. It was not simply a gift, because you did do some work in exchange for the money. Having said that, I will point out that, because it was all in cash, it is unlikely that the IRS would ever find out about it if you did ...


3

A prize is not income, in general. According to the Government of Canada, When the prize has been received as a gift, it is not included in computing income at the time of receipt. However, the recipient will be deemed to have acquired the prize at its fair market value pursuant to paragraph 69(1)(c), so that a subsequent disposition of the prize will ...


1

A resource where individuals and small business owners can check is: The American Institute of Certified Professional Accountants document on Coronavirus State Filing Relief The document is broken down by state and has links to the various state income tax agencies. As the situation is changing, the document is being updated (although I don't know how ...


1

I'll mostly repeat my revised detail from the other answer thread. The 2019 version of the IRS Publication 970 seems to be fairly clear that you have to take the distribution from a Qualified Tuition Program (e.g. a 529 account) in the same year as the QHEE. I base this on the following three citations from that document, in addition to being unable to ...


0

I am assuming that variable salary (approx 8.23L) is in the nature of Commission or Bonus or a mix of them. That is taxable. Tax on Total salary (under new regime) - assuming no 80C, HRA, other deductions - 1.4L (source) Your monthly fixed salary - 5.1L Variable salary - 8.2L less Tax - 1.4L less non cash component of salary - 0.8L (incl. employer + ...


1

I have also read that SREC payments are not taxable until the homeowners basis is exceeded by the payments. For example, one spends $100,000 on solar panels and gets a 30% Renewable Energy Credit. That would be a $30,000 credit on his/her taxes. It may be realized in the initial year or carried forward each year until it is all used up, depending on the ...


4

401(k) plans are, for the most part, funded by voluntary deferrals by the employee, that is, you have to make a conscious effort to do something to put money into your 401(k). It used to be that the deferral was entirely voluntary, but so many people were ignoring the opportunity that the Government changed the rules to make a small percentage mandatory in ...


1

I would ask yourself the following: Is it worth the extra (calculate postage & envelope cost) to deal with the time and hassle on the phone and in paperwork for the IRS if it doesn't get filed properly? To me, the answer is NO WAY. I'd rather pay the extra 60 cents per return. BTW: One stamp = 4-5 standard pages in a standard envelope; Two stamps for 5-...


0

An LLC is a "flow through" entity. Assuming you are the only member of your LLC, it's also a "disregarded entity". What that basically means is that the IRS treats the LLC is if it doesn't exist: the assets of the LLC (including its bank account) are treated as owned by you personally, and the income of the LLC is treated as earned by you personally. And ...


-1

You have to report the income, yes. LLCs have to make at least annual reports about their income and costs. I'm not an expert on the topic though and I even think that bigger companies have to make reports each quarter of the year. Is the income taxable? Yes, the interests it makes meanwhile in the bank account are taxed annually. However it's not income / ...


1

Did some googling, and this appears to be a unique difficulty of Connecticut that's hosing you. Typically, you would only be charged in the State where the work was actually performed-- IE, Pennsylvania, since that's where you were physically typing. Unfortunately, Connecticut Law as of 01/01/2019 states: Connecticut teleworker implications ...


3

Notes: (a) I am not an accountant nor a financial adviser; this is not financial advice. (b) I had all but written this answer when Mark edited his answer to include my correction regarding the Dividend Allowance. As I hope my "visual" representation may be useful addition, I decided to post (a slightly modified version) anyway. But the main credit should go ...


2

It seems unlikely that you paid additional points when the mortgage was sold, I've never heard of someone doing that, and I think you would know if you had. So either this duplicate reporting of points is a mistake, or the second 1098 includes all the amounts you paid, and essentially supersedes the first 1098. It's been a while since I had a mortgage that ...


5

First, let me clear up a misunderstanding in your question. Is there a way to check with the IRS to see if they indeed receive my file as Exempt and if they did actually return it to my Employer? I’m just wondering if either HR forgot to follow up with me or even IF the IRS does actually cull these exempt requests in the first place? The W-4 form does ...


2

If you know it is incorrect, then just report one. It sounds like an obvious mix up on their part. If you report two, and you get audited, it will cause you more headaches than it is worth. Being honest goes a long way with the IRS.


3

The total tax you will pay over the course of the year [from withholdings + a final tax bill] is based on your income, not your source deductions. Whether your deductions are correct or not will not impact the total amount of tax you pay. So you say you "I don't feel like I should be entirely responsible for a $5k-$6k tax liability for a HR clerical error". ...


0

First off, it's your money. Nobody has as much of a vested interest in your finances as you. Nobody will look after your money for you on your behalf better than you. It is your job to check for these kinds of mistakes and correct them. Having said that, now that you have found the mistake and corrected it, going forward you will have learned a valuable ...


1

Yes, for a non-resident alien (as defined for US tax purposes) interest on a US bank account is excluded, unless 'effectively connected' to a 'trade or business' you operate in the US; see pub 519 chapter 3. And interest from a foreign bank is not US-source at all, and thus not subject to US tax as an NRA. (It may be taxable to you in the country where it is ...


2

When providing services internationally, two kinds of taxes are relevant: income taxes sales taxes or VAT These are completely independent. Income Taxation There is a US–German tax treaty[1]. When providing independent professional services[2], the location where you perform your service or have your establishment is relevant, but the location of the ...


5

My calculation is £13,475 for the dividend tax amount. I don't understand why your accountant has given you a figure quite as high as £16.5k. Here are my workings… First, income tax – as this affects how your dividends are taxed subsequently: Total salary Personal allowance Taxable salary Tax rate Amount of tax 26,500 12,500 ...


0

Non-qualified stated interest (NQSI) is term used for certain types of bonds that do not have level interest payments ("Contingent Debt Instruments"). IRS pub 1212 defines these terms and explains how to perform calculations but it is not easy reading. My understanding is as follows, but you need someone who knows this stuff unless you have a decent ...


2

This is a great question. My understanding is that unless otherwise specified in specific cases in the instructions, if you are filing as Qualified Widow(er), you use all the same numbers as Married Filing Jointly. Tax rates, deduction amounts and limits, and thresholds are all supposed to be the same between Married Filing Jointly and Qualifying Widow(er)....


0

Wait, are your MIL and Spouse both co-owners, and it's the primary residency for your MIL correct and not your residency? Is your wife handling the money for your MIL? How much mortgage does she (MIL) pay, and you (your spouse/you) pay in %. If she pays 100% of her own mortgage, then provides you the 10k-15k; then it's clearly a gift, and it's subjected to ...


0

First, Net income and Gross income are two different line items on the P&L. Second, the short answer is "you'll have to factor other things", maybe. The P&L will have most of the components, but (depending on the thoroughness your Chart of Accounts), some elements may not be needed, others not clearly present, still others that are needed but not ...


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