New answers tagged

0

Honestly, this is a good thing. They're double-checking and making sure, and that is a good thing for them to do. Especially in a volunteer org, where -- well, let's just say volunteers don't join to do accounting. So yes, I strongly encourage you to give the best response you can, with all due compassion. It's in your interest too, to get it right.


25

The status of 'married' or 'single' on your W-2 has nothing to do with how you file your taxes, only with how taxes were withheld by your employer. Single status withholding is higher than married, which means you probably paid more taxes than you needed to. This is not a huge problem, and can get back the excess paid in a refund when you file as married. ...


1

If you are no longer a partner in a partnership as of the end of any taxable year, you should not receive any more K-1 from that partnership for any subsequent taxable year. So, in your example, generally there should be nothing in your 2019 return relating to that partnership. If you withdrew as a partner mid-way through any year, you will still receive a ...


2

In the Form 1040 instructions, section for filing status Married Filing Separately (on page 13), it says: Check the “Married filing separately” box at the top of Form 1040 or 1040-SR if you are married and file a separate return. Enter your spouse’s name in the entry space below the filing status checkboxes. Be sure to enter your ...


0

Not that I'm aware of; PayPal charges us the same whether it's a donation or for goods. Our nonprofit rate applies to all transactions equally. I suspect the reason is PayPal doesn't want us using the Donate button for item sales. For instance an item sale will invoke their dispute resolution service, where the money recipient gets to challenge. A gift ...


1

TurboTax does not support 1040NR but instead links with SprinTax which does. Here's the FAQ which was updated on January 13, 2020: Does TurboTax handle Form 1040NR for nonresident aliens? TurboTax doesn't support Form 1040NR: U.S. Nonresident Alien Income Tax Return, but we have a partnership with Sprintax offering a nonresident tax filing ...


2

The answer to this question depends on many variables, including stock and bond returns, your investment timeline, your tax rate, your future contributions, your withdrawal strategy, etc. So I'm using the following assumptions: stock return: 2% qualified dividends + 8% appreciation bond return: 3% non-qualified dividends + 0% appreciation investment ...


1

australia I’ve seen the following construction: “Liability” loan account “Asset” bank account When the money goes into your bank account, the double-entry bookkeeping’s corresponding account is the loan account. In essence, you are recording an increase in your cash as well as an increase in your liability. You’d probably have one loan account for each ...


1

Would I have to count that as my income and pay taxes on it, No, because it's sales, not income. or just pay income tax on the $300 that the vendor pays me? I also pay the vendor's expenses (ie. printing,shipping) per order out of their money earned in my account. You pay taxes on only what you keep. You've probably got to tell the IRS about the ...


1

You're in luck - only 2 countries are regressive enough to tax you based on your citizenship regardless of where you live / where you earn your income, and you're in one of them. Apart from the US, only Eritrea taxes based on citizenship.


5

Since the S&P 500 ETF will probably have more gains, it would benefit more from being in the tax advantaged account. Personally I prefer to have all of my accounts balanced. But based on the parameters of your question, it would most likely be optimal to have the entire Roth IRA invested in S&P 500 ETF and the entire taxable brokerage account ...


3

Assuming I understand your situation correctly, some of these trades are indeed wash sale violations. However this is not quite as bad as it seems as the wash sale rules (assuming these trades were all in your taxable brokerage account) do not prevent you from claiming the loss, they merely roll it over into your next holding of the same asset. From what I ...


0

You asked: Can closing covered call and opening a new coverd call trigger wash sale? I believe the answer is yes. For example, if the option you buy back has 300 days to expiration and the new option has the same expiration and its strike price is 1% higher. In this specific case you site, the expiration dates are different and the strike price is ...


0

If you have your investments in a US brokerage, then they will probably send a form to the IRS each year on your activity. Since you haven't sold your investments, there are no capital gains to worry about. Just the dividend income. I believe you have to earn at least $400 in dividends for the IRS to even be interested. The tricky part will be when you ...


0

In general, one should be taking one's distributions based not just on one's current tax bracket, but also on what one thinks one's future tax bracket will be. For instance, if someone is currently in the 22% tax bracket, but thinks they'll be in the 12% bracket later, they should not take any distributions now. In your case, if I understand the formula ...


1

@Aganju If OP converts to Roth, that money is still taxed. Albeit, the tax rate is based on current tax bracket which may be lower than future bracket and all gains and distributions are tax free in the future. Think that should be mentioned. As @pete-b mentioned, your beneficiaries are likely to receive a large portion and this too should be considered if ...


0

Their primary gain would be indirect - public view of the company. They can represent themselves as 'having donated such and such', and hope that the public opinion of the company - which directly influences their attractivity as employer - gains from it. Any direct financial impact is minuscule, and probably negativ, as the overhead cost of setting the ...


2

In your case, it's simple: your employer is giving you $60 to reimburse your membership, so that's essentially $60 in additional, taxable income. The wording in the employer guide is to cover situations where you are not reimbursed, but instead your employer pays the gym directly. So you have a $60 gym membership that you yourself pay $0 for. The taxable ...


1

In the UK, the company would benefit a tiny bit. For every pound of pre-tax salary, the company has to pay an additional (I think) 13 percent in employer health insurance / pension contributions. So giving up £1 in salary saves the company £1.13; since they donate £1, they save a grand total of 13 pennies. I don't think it's worth it.


3

When it comes to making financial changes to reduce tax liability, there's (usually) no free lunch. You generally can't save money on taxes without directly or indirectly incurring costs or losing money elsewhere. There are lots of ways to shift things, but not many (easy) ways to "win" in the sense that you seem to be wondering about. In your scenario, the ...


3

When I was first working after college the company I worked for, and other companies competing for US government contracts, liked to be able to claim in their bids for contracts that the were patriotic and good citizens. They did this by being able to claim 100% participation in purchasing US Savings Bonds and 100% participation in donating to charities ...


0

The company is ending up exactly as before, only difference is that the employees donate some part of their salary to charity. The reason for this is that both salary and charitable donations are deductible from corporate tax, leaving the company in the exact same state in both cases (perhaps the charitable donations give the company a better image, but ...


2

You need not be a taxpayer to invest in ELSS. Anyone can invest. A taxpayer gets tax deduction benefits. If you have invested more than what you plan, best is to stop the SIP and further investments. It's opinion based. You have to decide. Generally close ended funds perform better when stock markets are volatile as there is no redemption pressure on fund ...


5

From the IRS: How do I know if I have to file quarterly individual estimated tax payments? Answer: Generally, you must make estimated tax payments for the current tax year if both of the following apply: You expect to owe at least $1,000 in tax for the current tax year after subtracting your withholding and refundable credits. You ...


5

I was finally able to get information from a bank representative. This is related to Republic Act 9160 or the Anti-Money Laundering Act (AMLA). Banks and other financial institutions are mandated to institute “know your customer” (KYC) rules that ensure the legitimate source of funds.


10

You should consider the option of converting a chunk into a Roth account every year (instead of into a taxable account). The (small) disadvantage is that it is basically 'stuck' for five years; the advantage is that any further gains are tax-free.


8

I think you've got this backwards. If you pay for something that your employer then reimburses you for, the amount you've paid in the end is 0. So you would owe tax on the full value of the benefit. If anything this would count as a "Benefit allowance" - it's certainly not a "Reimbursing allowance" which is defined as: Reimbursing allowances are payments ...


0

Since the prime source of deposit in the NRE account is from abroad, the funds available therein are freely repatriable i.e. you can transfer the money back to your country of residence without any approval or any specific documentation. You may follow the link https://entryindia.com/articles/repatriation-money-india-nris-non-resident-indians for more ...


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

Your question states that the country is the United States. You also seem confident that the question actually comes from your bank and not a potential scammer, but, as others have stated, best to make absolutely sure of this by asking your bank directly, ideally in person. I've had bank accounts for decades, and never been asked, under threat of closing ...


1

This sounds very much like a scam to steal your banking information. I would call your bank directly or visit a local branch. Do not call or contact them using only the information in the email. It is very possible the email isn't from your bank, it is someone trying to trick you into giving up personal information.


2

Those Meetup members who pay to attend an event are not forming a partnership. Just like if they bought a Concert Ticket - no partnership can be forced upon them as it is fee for service. But, those Organizers who are controlling the funds by collecting and/or depositing them, or using equivalent value collected in some other form are either 1) Sole ...


1

Assuming the two shifts you worked were done since the beginning of April then you need to select B. You wouldn't have paid tax on that previous job if it would have fallen within your tax free allowance, however the income is still classed as taxable income and would be added to all other income for the tax year to work out your total tax liability (which ...


1

A donation/contribution to a trust is not considered a gift as long as the beneficiary has a future interest in the gift. If you are referring to a payable on death account than it is the same as your parents leaving you the monies when they die--except it avoids probate. Note that your parents have a large estate exemption so this would only be relevant ...


1

This is a regular scheme and is not eligible for tax rebate/deduction. You need to invest in schemes that are ELSS with lock-in of 3 years for tax deduction


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 ...


2

Frankly, your whole structure doesn't make much sense to me. I know why some people choose to work "through" a pass-through entity, but - generally speaking - it's an iffy proposition. In your case, it seems you work "through" an LLC which elected to be treated as corporation and then elected to be treated as a Sub S corporation; why??? Also, was your "...


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 ...


4

Yes, because if you have net earnings from self-employment of $400 or more, you are required to pay self-employment tax (source), which requires filing a tax return with Schedule SE. You can use the IRS's Interactive Tax Assistant (ITA) to confirm this.


2

One way to simplify the analysis of barter is to think about a barter transaction as if it involved cash which changed hands twice - and the picture will be significantly simpler. Take for example your wife who "received a free meal from a restaurant valued at $50, but wrote an article for which she would have typically charged $50". Make believe she ...


0

Long story short, if you are a nonresident alien (i.e., not a US citizen and not living in the US), you are subject to US Federal estate tax (the US name for inheritance taxes) only if your US "situs" assets exceed $60,000. Shares issued by a US corporation (including "regulated investment companies" like Vanguard's) would probably constitute US situs assets....


1

For simplicity let's consider a single share that you sell for $120, 5 years from now. This is qualifying disposition, but assume for a minute it was not. In that case, you'd owe regular income tax on the discount of $32 ($100 - $80 x 85%), and long-term capital gains tax on the remaining $20 ($120 - $100). But since it is a qualifying disposition, more of ...


2

If you haven’t already made the charitable donation, you can still donate appreciated stock (assuming you still have some), and use the proceeds of the sale for some other purpose, such as diversification, for which you would need to sell more stock anyway.


1

I'm not sure what you mean by "withholding tax" but typically you pay any penalties when you file your annual tax return; it is added on to your total tax amount and used to calculate your net tax due or refund. For example, if you have $10,000 in income tax due, have a $1,000 penalty and had $10,500 withheld throughout the year, when you file your state ...


3

There is so much in the tax code where timing is important. In many cases, a day makes all the difference when a transaction occurring in one year (Dec 31) vs the next (Jan 1) can have a very different tax implication. I am sorry for your loss. No, the situation is not reversible, as the stock is already sold. It may not be any consolation, but yours is ...


2

Your linked form DE4, page 3, worksheet B, line 1 indicates that you should estimate your California itemized deductions based on the FTB form 540 schedules. Form 540, line 18 indicates that schedule CA is used for calculating itemized deductions. Form 540 Schdule CA, part II lines 11-14 cover gifts to charity (requires first completing IRS Form 1040 ...


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