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5

Ideally the customer(s) wouldn't have submitted a 1099-MISC since it was paid via PayPal, and ideally when they make a mistake like this they would correct it. Unfortunately, the IRS doesn't know the situation, they just know that you didn't report all of the 1099 income on your tax return which they have copies of. If you can't get the customer(s) to send ...


16

Canadian tax law is much simpler than the US. Canada does not have a "gift tax" either for the giver or the receiver, except for some very special cases. US gift tax is paid by the giver, not the receiver, so would not be payable by a Canadian on a gift given in Canada.


14

In the US the giver of gifts has the gift-tax obligation if any exists, not the recipient. Even if letting them stay at the house was considered to be a gift it wouldn't be relevant to the IRS if the giver is Canadian. I'm not familiar with gift-taxation in Canada.


4

The reference to January seems to suggest they are talking about paying estimated taxes, but the idea that paying in January is sufficient to avoid the penalty is incorrect. If the taxes withheld from your paycheck by the end of the year reaches 90% of your tax liability for this year, or 100% (110% for higher incomes) of your tax liability for last year, ...


4

Use Form 1040X as your secret weapon You can file right now. But here's the sucky part: After the final instructions come out, you'll have to re-figure your taxes. Well, almost. And if any changes did occur, you will have to file a Form 1040X to amend your taxes. "Almost?" There are 3 parts to tax instructions. Statute: the laws as passed by Congress,...


2

Here's what the IRS says about underpayment penalties: Penalty for Underpayment of Estimated Tax If you didn’t pay enough tax throughout the year, either through withholding or by making estimated tax payments, you may have to pay a penalty for underpayment of estimated tax. Generally, most taxpayers will avoid this penalty if they owe less than $1,...


8

Yes, you should definitely wait until after the final instructions for the form you're using are released before attempting to file. In addition to what Craig W said about tax filing not being open yet, using a previous year or draft instructions instead of the final instructions could lead to an incorrect filing. As you mentioned, the tax tables will be ...


32

Tax filing doesn't open this year until January 27, which is "when the tax agency will begin accepting and processing 2019 tax year returns". I assume you could mail in your return before that date, but nothing would be done with it until then. Also if you really want to get a head start, note that you can find draft 2019 instructions for Form 1040, although ...


2

Your employer will typically not allow more than the limit to go in there. Your contributions simply stop when reach the limit. Note that this is not a good plan to try - if your contributions stop, the employer match stops too for the rest of the year, so you could lose out. Make sure to not reach the limit before the end of the year, so you can still get ...


0

The best way is to order a certified copy of the transcripts from the IRS. You can also ask your accountant to do this for you. Once you receive it, you can mail it to the U.S. Department of State - Office of Authentications or hire a professional apostille company in Washington, D.C. I had one done about two months ago.


2

I assume that when sold, these were OTM covered calls and now you have a large gain on the stock? Just checking because if you sold deep ITM calls at the outset, there wouldn't be a large taxable gain unless the stock had already appreciated a lot. As for the IRS, gains and losses are reported in the year that they occur. You cannot back date a transaction ...


4

No, the IRS expects you to report the gains/losses in the year they occurred. Your brokerage will report this to the IRS in the proper year, so you'd have issues from the jump if you tried to claim the gains for the prior year. Note that the $39,375 threshold for the 0% long-term capital gain rate is based on taxable income (AGI - deductions), so you can ...


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