New answers tagged

0 votes

Do foreigners pay taxes on dividends from Canadian listed ETFs?

The CRA withholds 25% from dividends paid to non-Canadians (see here). If there's a tax treaty that applies to you and affects the rate - you should let the payer know so that they adjust the ...
  • 134k
1 vote

US - Taxation of foreign trust before distribution

There's a reporting requirement which may be onerous and with very stiff penalties (IIRC something like $10K penalty for non-compliance). It is reported using form 3520 and form 3520-A. If there's no ...
  • 134k
0 votes

No taxes were taken out of my paycheck. Is this a mistake?

In some of my jobs here in the UK, the employer did the math for me in the following way: They calculated how much tax I should pay, per month, if I am employed 12 months. As I started not in the ...
3 votes
Accepted

When to use a CPA and when to use a Tax attorney?

As mentioned in the comments, any tax professional will tell you what specific representation is required. I'll list the different types available. Note: this is for US only, in other countries this ...
  • 134k
8 votes

No taxes were taken out of my paycheck. Is this a mistake?

As a supplement to DJClayworth's answer, I wanted to suggest checking your tax code. This should be printed on your payslip and is usually made up of four numbers and 1-3 letters. There is a full ...
  • 81
0 votes
Accepted

Can submitting a form 12203 Request for Appeals help me in my situation when I am a month past last date to respond?

Can you submit? Absolutely. Will the IRS "work with you"? They don't have to. Depends on what you write, and how you present it, and what claims you're making and how you are substantiate ...
  • 134k
19 votes

No taxes were taken out of my paycheck. Is this a mistake?

Your employer won't start deducting tax until you have been paid enough money that you will owe tax. British PAYE taxes are designed to deduct exactly the right amount of tax for the amount you have ...
1 vote

How to resolve my unearned income issue with the IRS?

You're being audited for the tax year 2019. In the audit the examining officer found some mistakes on your return and proposed changes (changing earned income to unearned income). They're asking for ...
  • 134k
1 vote
Accepted

Taxes for retired American expat in Egypt?

There's a tax treaty between the US and Egypt. Article 20 talks about Social Security payments and says that any such payment will be taxed by the country where you reside. So if you live in Egypt and ...
  • 134k
-1 votes

When does an exchange of gifts become taxable?

They are allowed to give up to $16,000 a year tax free under the gift tax rules. They can give each of you $16,000 that is. https://www.irs.gov/businesses/small-businesses-self-employed/frequently-...
3 votes

When does an exchange of gifts become taxable?

Her parents want to show their gratitude by... doing things for us. At what point would that become less like mutual gift-giving and more like a renter/landlord arrangement? For tax purposes, I mean. ...
  • 134k
2 votes
Accepted

Does calculating Crypto taxes need previous year numbers?

Yes, you'd need 2020 information assuming that you didn't close out all your positions before the end of 2020 (or that you closed all your positions but had wash sales when you re-opened them in Jan ...
0 votes

Will I pay taxes twice after doing a Roth IRA -> IRA recharacterization?

To be clear, is this because you are ineligible or in phaseout for Roth because of AGI, and ineligible for deductible trad because of employer plan coverage and AGI? If you are over 6k in Roth (7k ...
0 votes

How does adjusted cost basis work with RSU? And should I use it?

The cost basis you should use is the value of the stock at the time you received the actual shares (i.e. when they vested). If that's what's reported on the Adjusted Cost Basis, then that's what you ...
  • 117k
1 vote

How does adjusted cost basis work with RSU? And should I use it?

Turbo Tax should support adding adjustments to the cost basis. But the bottom line - yes, you should use the adjusted cost basis. Here's the E*Trade document that explains the whole thing in great ...
  • 134k
6 votes
Accepted

US Social Security taxes while working for Canadian employer but living in third country

It appears that Canada is a red-herring in this question. Canada doesn't tax non-residents on earned income, and if your employer makes deductions you should claim refund (see here). From the US tax ...
  • 134k
8 votes

How to split bills without it showing as income?

It sounds like you are repeatedly paying, for each lesson taken. In that case, you could take turns paying the bill, so that you pay one bill in full and your partner pays the next bill in full. This ...
0 votes

UK global consultant, living and working in different EU countries

No, you can't just assume this is how the EU works. The EU does allow its own citizens to work everywhere in the EU, but you're not an EU citizen. EU member states still have the right to grant work ...
  • 2,633
58 votes
Accepted

How to split bills without it showing as income?

There's no need to do anything. You don't need to declare it on any tax form, and if you are ever audited by the tax authority (HMRC), just explain what happened. Repayment of a debt/sharing an ...
0 votes

Can W-2 form be verified using QR code or something relevant?

Looking at your comments, you're interested in the concept of employment verification in the US. In the US W2s are not issued by the government, but rather by your employer (through their payroll ...
  • 134k
2 votes

Can W-2 form be verified using QR code or something relevant?

Some countries provide forms similar to US' W-2. The W-2 form is issued by your employer. The government only knows the numbers are real because the employer provided a copy to the IRS and to the ...
2 votes

Can W-2 form be verified using QR code or something relevant?

There is an online tool for viewing your own prior transcripts. Note it is only for personal use: Caution: This service is for individual taxpayers to retrieve their own transcripts for their own ...
  • 46.4k
5 votes

Can I convert interest income to capital gains by selling t-bills before maturity?

This here's the relevant guidance from IRS: https://www.irs.gov/instructions/i1040sb Basically no, the accrued portion of unpaid interest is still considered regular interest income; see further here [...
1 vote

How do I contact the IRS about my tax return from a non-US phone number?

In the North American Numbering Plan (of which Canada is part of, and which is dialed through the international access code +1), 800 is a "toll free" area code where the receiver of the call ...
  • 134k
1 vote
Accepted

How do I reflect discount on a Treasury Note

Treasury notes and bonds both pay a coupon twice a year (although this can be 'stripped' and held/sold separately) and are often auctioned at a discount; when you buy any bond discounted at issue by ...
2 votes

Voluntarily treat scholarships as taxable income to get AOTC?

The main point of contention appears to be the following question: Is it possible to treat a scholarship paid directly to the school as taxable income (e.g. by applying it to the non-qualified room ...
  • 121

Top 50 recent answers are included