Let's say I make a $1,000 investment into a mutual fund on Jan 1, 2016. On the 1st of every subsequent month through Dec 1, 2016, I contribute an additional $1,000. By end of year, my total purchase price is now $12,000. In the middle of January 2017, Let's say the market value of the fund is now $15,000 and I want to sell. Can someone help explain how capital gains tax would work in this scenario for the $3,000 gain? Some specific questions below the fold. [more inside]
Hi all, I claim exempt at two of my part-time jobs. However, I still get federal and state taxes withheld each paycheck (about 20% of each paycheck). Is my job doing this correctly? And should I be claiming exempt? I'm a graduate student and making about 13k a year. Thanks!
A while ago I quit my job and went on unemployment insurance. Then later, I signed up for Patreon because I figured it might help to make a little extra cash. But then I found out that apparently Patreon money is considered taxable income and you have to complete a W9 if you make more than $600/year. So... am I in some kind of "employment limbo?" [more inside]
So, it looks like my Maine taxes did not get filed (or "accepted"). I filed through Tax Act, but see no documentation from that they actually charged me or submitted my taxes (I do have the accepted notice from the Feds, and we're all square with them). I discovered this because we owe the state money and have been patiently waiting for them to contact me with the payment agreement as they have in years past. I don't think they yet realize we have not filed or paid. What happens now?
I’m the beneficiary of a (small) trust which my old accountant, let’s call him A, also prepares the returns for. I’m switching to a new tax accountant, and A is now refusing to provide me the K1 for this trust. [more inside]
What paperwork will the IRS accept that proves I am authorized to sign my deceased Mother's tax returns? [more inside]
My father is going to give me around £20,000 within the next couple months. YANML/tax expert. [more inside]
You are not my lawyer, my accountant or my financial planner. Which makes sense, financially speaking, or, what factors should I consider, in figuring out which way to credit my ex for his portion of our marital home. My choices: (1) Pay him 85K cash; or (2) credit him 90K in his tax-deferred Thrift Savings Plan (TSP) from my marital share. I am in the U.S. [more inside]
We just purchased a house and are renting back to the previous owner until August 1st. There are a fair amount of improvements we want to make to the house. Can we deduct the expenses on our taxes as as we have a valid rental agreement with the owner? [more inside]
After a confusing tax season, I'm trying to figure out how many allowances to claim on my W-4s. I have 4 part-time jobs, am in a masters program, and barely live above poverty line (really killin it at life in NYC). I currently claim exempt, but was just told that's actually completely wrong. And I am single, no kids. What should I claim?
I'm looking into using a "Roth conversion ladder" to periodically convert some of my money from a traditional IRA to a Roth IRA, which I can then withdraw five years later in a tax-advantaged manner, despite being younger than the typical age to withdraw funds from IRAs. I have several questions about this. [more inside]
Should I ask my HR department to stop auto-deducting federal & provincial tax from my paycheque, given the following conditions? Alternatively, can you recommend a good personal tax advisor in Vancouver, Canada? [more inside]
You are not my lawyer. But I want to know if this is possible, and should I find a lawyer? It involves a divorce and taxes in New Jersey. [more inside]
It's weird to ask tax questions in May, but I'm trying to be nicer to myself next April. If I have a full time job that involves attending events, can I write off expenses regarding those events? And, if I'm anticipating having to file freelancer taxes next year, how much of that untaxed income should I be setting aside to pay taxes? [more inside]
In my mail today was a check from the IRS, made out to myself and my wife, for exactly $4000. The check and additional literature in the envelope said it was our tax refund. The thing is, we owed money this year, and I paid it via electronic check when I filed; the exact amount due came out of my checking account the next day. So what should I do with this thing?
I've got a web development firm classified as a single-member LLC filing as S-Corp, and as such I pay myself a regular salary. It's just that for the past year I've been on sabbatical, and my salary has dropped to near zero. [more inside]
On my tax forms, do I report the $$ from this transaction (a refund, essentially, very little) as money from a "lawsuit" even if no court papers were filed? [more inside]
Payroll deduction question: I'm in CA and get paid by several different companies, and I just got a paycheck with the big deduction for "ca rs st"? Does anyone know what that is?? Perhaps it has something to do with a new sick time benefit?
I'm having some confusion with my (USA) taxes, involving estimated payments and refunds. [more inside]
I am part of an organization run entirely by volunteers, with income from several sources. We've never filed taxes, but the question has come up of whether we need to. I'd appreciate advice from the experienced. [more inside]
I goofed on my taxes and want to make it right, expert help appreciated. [more inside]
I was researching some tax questions on AskMe and learned about the "injured spouse" provision. Last tax year we had a situation where our refund was absorbed by an old outstanding tax bill my spouse incurred a decade before we were married and had forgotten about. I understand I can file as an injured spouse to recoup some of this loss that came from my withheld taxes, but my question is: what happens to the debt? Will my spouse just receive a new bill for that amount? If that's what happens we're probably best chalking it up as water under the bridge. Thanks for any help you can provide.
I made a stupid mistake filing my tax return: I accidentally underreported the amount of state tax withheld by failing to fill in that value from one of my W2s. Correspondingly, TaxAct calculated that I owed four figures to Illinois (including a $300 underpayment penalty) and about $100 to the US Government. I e-filed over the weekend and have the vouchers to mail in with my payments. Only after I filed did I realize my mistake. Updating the W2 in TaxAct shows that I'm actually due a refund from both federal and state governments. [more inside]
Forgot to sign up for tax credits, received no money back on tax return. Is sending in an 8962 the way to get this tax credit money back? [more inside]
If you get a divorce, is that automatically reported to the IRS? [more inside]
I have a property management company managing my rental properties. At the end of every month, they deposit a somewhat arbitrary amount into my checking account that represents some portion of the months incomes (they always hold some back and maintain a cash balance for expenses). Should my taxes/income be based on the monthly deposit or the total revenues that the property management company is receiving? [more inside]
I want to do the right thing: pay what I owe. Yet, I don't know who would be on my side! A tax preparer? An accountant, CPA, tax attorney, someone else? The years have caught up to me, true, but how will I live once I've acknowledged my debt? Can I pay my bills and the person/company helping me before the IRS freezes or sucks money out of my account? What if my "income" comes not from a job, rather a will/trust account? Add to this Obamacare and recently, a state tax. I am frightened. I figure I'll pay until the day I die. How many years will that be? [more inside]
Been using Block for years but am attracted to Turbo. Any recommendations, especially if you've used both? [more inside]
My mother-in-law is selling, or thinking of selling, a house she's owned forever. It's been paid off for decades. She hasn't lived in it for 5 years (has had it rented out by a property manager) and is looking at a huge capital gains tax if she sells. What alternatives does she have to reduce the tax burden? [more inside]
I did a small amount of work for a company that turns out to be headquartered out of my state of residence. The company is located in California, but I communicated with them remotely and did all of the work in my home state where I reside. I am wondering if I need to fill out a non-resident state tax return for California. The amount of money is small (less than $1000).
I resigned from my Washington, DC employer in September 2015. At the time, I was living in Virginia, and for the past 5 years had been paying VA state taxes. 2 weeks later, I moved to Maryland. I just received my W-2 from the DC firm, and it lists my Maryland address, even though I never filed a new W-4, and I never lived in Maryland during the time I worked for my DC employer. Everywhere else it indicates Virginia as the state, Virginia state income tax, etc. How problematic is it if my address is incorrect? [more inside]
I have a small mess on my hands with IRS Form 5405, and repaying the 2008 First Time Homebuyer Tax Credit. Looks like amending is going to be needed. In what order, and how, do I need to amend all of these returns? Bonus: also need to amend my 2015 taxes, anyway. [more inside]
I feel pretty crass even asking this question but I am a wondering if I can write a bereavement gift off on my schedule C. [more inside]
I've been offered a bit of freelance editing work by a British publisher. As a Canadian, I know I would have to declare that income when I file my Canadian income taxes. But would I also have to file income taxes with the British govt? Bonus UK tax question after the jump! [more inside]
A friend and I are starting an Etsy store. We're planning to sell a bunch of vintage clothes I collected in the nineties but do not wear, and then move on to reselling. I am confused about the tax implications and the best process. You Are Not My Tax Lawyer, but.... [more inside]
I am an only child in my early 30s; my mom is in her late 50s. I have a good income, while she does not really make a living wage and has no retirement savings or pension. I am committed to taking care of her, and I want to try thinking about our finances in a unified way. [more inside]
My friend (who has never failed to let everyone know how much he's making) was fired from his job a couple months ago in NYC. He now has gone one two vacations...while taking unemployment money. This is all information he voluntarily told all his friends. [more inside]
I have a relative who benefits from a charitable organization. I have money, but not enough to give the same amount of benefits this organization provides. Is it ok for me to give this charitable organization a donation that I will claim on my taxes? [more inside]
What measures should I take after learning that someone else has filed taxes using my SSN? [more inside]
You are not my lawyer, or tax preparer. I have been working at the same company for a few years. In September of 2014, I moved. I asked my employer what I needed to do to make sure my file was updated with the correct address, and was told to add the new address to the HR portal, which I did. A couple of weeks ago, my W2 forms were sent to my old address. Fortunately they were returned to the office. I asked HR if I can get updated forms and was told "you don’t need a corrected W2 for an address change. You will be able to file your taxes without an issue with the address and enter your own address for your return." [more inside]
For the past 5+ years I've owed small amounts of Federal income tax, $5-$11. Why not this year? [more inside]
Joyous tax season is here. Please help me figure out what is going on with one of my W2s! [more inside]
I am one of the thousands of Americans who live overseas and because of ludicrously low incomes have never gotten it together to file taxes in the USA. Zero of my USA friends here are filing taxes in America. I suddenly co-own a business but their accountant does not do expat taxes. How to go about this smoothly would be a delight. I am currently being quoted £500 for each tax year preparation.
I worked as a part time nanny for the first half of this year, but I stupidly accepted being paid under the table. How do I pay taxes now? [more inside]
In June, I started renting out a bedroom in my condo. I know I can deduct a percentage of some household expenses, but I want to make sure I 'm doing it right. I've been doing my taxes online with FreeTaxUSA for years. I'm really happy with them, but I've always just taken the standard deduction, and I'm wondering if it would be worth hiring someone this year (and then maybe going back to online next year). More inside. [more inside]
As I consultant, when I travel on client business, I pay for travel with a card and the client reimburses me (on top of my fee). Likewise with other expenses -- I buy a projector for use on a project, client keeps projector and reimburses me as above. So do I include such reimbursement amounts in both my income and expenses on Schedule C?
I spent almost all of 2015 working full-time for a big company through a temp agency, but the temp agency misclassified me as a contractor. This means that I'm on the hook for self employment tax, which is 7.65% of the year's income! I'd like to avoid paying that tax. What's the best way to do it? [more inside]
If I prepaid taxes on a Roth conversion then recharacterized back to a traditional IRA, how do the taxes I paid work? [more inside]
My spouse efiled our US federal and state tax returns as married/separate. I haven't filed mine yet. We did some re-calculations and realized we'd get a bigger refund filing married/joint. How do we get the IRS to delete/reject the already efiled return or amend things so we can file the married/joint one correctly?
My ex has NPD and anger problems so I really don’t want to tick him off – but I think I’m about to. Please help me to mitigate the damage. [more inside]