14

What happened was Tax Reform, implemented in 2018. The new tax code pushed through a new withholding table contained within Publication 15. Payroll departments withheld according to the new table and people across the country cheered their 'higher take home pay'. Then when tax time came, it became clear that their total tax bill for the year was little ...


13

If the intent is for the new property to be a primary residence, then 1031 exchange does not apply. You can convert a 1031 exchange property to a primary residence but to avoid the prior exchange being invalidated you would have to rent it out for part of 2-years and limit personal use, per IRS guidance : (2) Replacement property. A dwelling unit that a ...


8

The FBAR reporting does not result in any tax liability; you have nothing to worry about. You don't pay taxes for having money, you pay taxes for making money (=income). The main reason the IRS wants to know about foreign accounts is to follow illegal money streams.


5

You can stop contributing or change your contribution at any time, but there are some restrictions on taking the money out that you should be aware of. For example, you can't cash out the 401k while you are still employed by the company that hosts the 401k. Also, even when you can, you will be penalized for withdrawing funds before you turn 59 1/2. FYI: ...


4

Unless your company uses accrual basis then you recognize income and expenses when money changes hands. And unless your company has a non-calendar fiscal year you recognize income in the year it was earned/received depending on accounting method. The vast majority of self-employed and small companies are on cash basis and use calendar year for their fiscal ...


4

Unvested funds goes back to the company (including any profit/loss from those funds). As for the HCE test, I'm not an expert there but my understanding is that all companies are subject to the HCE test whether they match or not. The intent of the test is to ensure that companies don't favor highly-compensated employees unfairly (i.e. 401(k) becomes a ...


4

This is a feature that a broker can offer, it's broker specific. I just signed into my (broker) account and see a 'Pay Bills' tab that allows me to enter the details for any bill I wish to pay, pretty similar to how I pay from my regular Bank Checking.


4

You do not need to withdraw, you can recharacterize your contribution as a Traditional IRA then roll it over to a Roth. Contact the brokerage. Source: https://investor.vanguard.com/ira/ira-recharacterization


4

I've had an HSA for the last five years and have never been asked to provide any supporting documentation when filing my taxes that all my distributions were for approved medical expenses. However, in the event of an audit, I'd need to be able to produce receipts or other proof that those distributions were for medical expenses. In the event you're audited,...


4

You aren’t supposed to get Copy A. Copy A is for the IRS. Normally, you never see Copy A. However, all the copies are supposed to agree, and the fact that you received Copy A that doesn’t match your other copies is worrisome. You should talk to your employer. Ask them why the amounts are different on the different copies, ask them which total is correct, ...


3

Employee Income Employee housing benefits can be non-taxable to employees if all three of these conditions are met: The housing is provided on the property owned by the business or employer The housing is provided for the convenience of the employer. The employer must have a "substantial business reason" for this, such as a remote work location. The ...


3

Form 1089-T I don't have direct experience of the US tax and education systems, but it appears (e.g. from Form 1098-T on Wikipedia) that (at least part of) the purpose of From 1098-T is to record certain tuition and educational expenses paid by a student out of their own pocket. These records can then potentially be used to claim The American Opportunity ...


3

Neardupe Where to enter earnings income when correcting excess Roth IRA contributions? (which I just updated). How much to withdraw? .... Is this right? It looks right to me, but when you request this Vanguard should (re)compute it for you, using the figures for the date the correction is executed. (AFAIK all IRA custodians do this, but you asked ...


3

Cost Basis = (# of shares x share price) + commission Sale Proceeds = (# of shares x share price) - commission (note that the # of shares is the same in both of the above) Gain or Loss = Sale Proceeds - Cost Basis


3

In the US we are taxed on total income. There are things that reduce our taxable income, and credits that reduce the amount of tax we owe, but it starts with all of our income. If your business is a pass-through entity then the business pays no tax independently and the business profit is counted towards your total income. So, if you have 100k in taxable ...


3

You're over thinking. One wrong paycheck withholding isn't going any problems. Redo your W-4 to what it should have been in the first place, and go on with your life. If you're only a wage earner, then your refund will be a little bit smaller than it would have been. The IRS absolutely does not care. Even if you'd left your status Married Filing Jointly ...


2

Yes. I am assuming for simplicity's sake that you mean a US-traded, as well as US-based, company*. Which shares exactly, this depends on your broker. But the answer is yes it's possible with a UK brokerage firm. To take a mainstream example, with Hargreaves Lansdown for example, most US shares from the main indexes (NYSE, Nasdaq)[1] are available. You ...


2

I combed through my tax return, and I believe that I understand what happened and why it did not appear to affect my taxes owed. TurboTax collects the data for self-employed health insurance at two points: once for non-exchange plans and once for exchange plans. The collection of this information is structured differently for each instance and the effect on ...


2

There are some situations where health insurance premiums are not deductible: 1) You paid for it with pre tax dollars 2) Your employer paid for it 3) You received an ACA subsidy In the case of (2) and (3), you might be able to deduct out of pocket insurance costs that exceed what you employer or the subsidy paid toward the total cost. IOW, health ...


2

It is not true that you "will only become a resident alien after 183 days." Rather, you will only know whether you pass the Substantial Presence Test for 2020 in 183 days. But if you pass the Substantial Presence Test for 2020, you will have been a resident alien for all of 2020, including right now. Passing either the Substantial Presence Test or the Green ...


2

In the HSA systems I have used, the pay-me-back process required me to provide a PDF of the insurance EOB. The EOB showed what I was supposed to pay for that service/visit/prescription after taking into account the negotiated rate and the amount paid from the policy. That information should be enough to meet any investigation by the IRS. The pay-my-...


2

If this is a very recent deposit give it a few days. For me I was paid on Friday the 14th because the 15th is a weekend day. So the pay stub noted that there was a 401K contribution from me, and the expected match amount from the company. Yet on Saturday morning it wasn't reflected in the 401K account. With Monday being a federal holiday I don't expect to ...


1

First, there is no penalty for not converting money from Traditional IRA to Roth IRA soon or all at once. You can convert any amount you want, in the same year or any later year, and the timing and amount of conversion just affects which year it is reported in, and whether there is any tax upon conversion. The only thing that you have a penalty for is the ...


1

Am I still liable if the funds came from my father's account ? Obviously yes. The original money came from your father (and was gift and I assume properly taxes). The profit from the sale is not "from your father" in any means - it is the gain in value in the years since purchase made on a flat in your name. The devil now is in the details - double ...


1

Is it a technical limitation? Sort of. I'm guessing that your brokerage requires a routing number and account number for electronic transfers (in or out) and so does your credit card. Since neither your brokerage account nor your credit card account have routing/account numbers (these are typically just for bank checking/savings accounts) there's not a ...


1

Generally, you can buy shares from every company which trades at any of the exchanges your broker works with. E. g., if Tesla is traded in Paris, Frankfurt, but not in London, you cannot buy it if your broker only works with the London Exchange. So whether it is possible or not depends on the company whose shares you are interested in and the exchanges ...


1

While your linked article doesn't use that term, I think this is talking about 'gerrymandered' zoning lots. This article shows one example lot: Crain’s Reveals Gerrymandered Zoning Lot (Or do an image search for "200 Amsterdam Ave".) Here, the legal lot includes a bunch of space that is unrelated to the building under construction, apparently in order to ...


1

There are all kinds of rules about asset allocation and they involve time horizon and risk tolerance. If you're young, your time horizon is long and you can invest more aggressively. It's based on your age which everyone knows :->) Risk tolerance is more subjective because it's a personal decision. If you're young, your time horizon suggests that you can ...


1

I think this is too personal of a question, since only you know how much you are comfortable losing. I would first validate whether I have an adequate Rainy Day fund, am funding my 401(k) at 12%+, saving for a house, and have reserve funds for auto replacement, vacation, insurance deductibles, etc. After all that, ask yourself how much you could throw in a ...


1

I believe the answer is Yes. Basically, California doesn't recognize HSAs, and taxes it like a regular non-privileged account. So you must apply whatever adjustments to the federal amounts so the end result for California is what it would be if it were a regular taxable account. So for example, contributions to the HSA (either through the employer or ...


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