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I'm a US citizen living abroad (more background here). I'm self employed. I know that health insurance costs are generally deductible (I think it's a special kind of deductible? Turbo Tax wasn't very clear on that). But does that apply to health insurance abroad or is it strictly for providers that are registered with the US government? I pay for my own health insurance where I live and it's a shitload of money so it would be fantastic to deduct, but I'd rather not end up claiming a huge deduction that I'm not entitled to. dpkg chopra fucked around with this message at 20:59 on Apr 27, 2015 |
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Apr 27, 2015 20:56
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Ur Getting Fatter posted:I'm a US citizen living abroad (more background here). I'm self employed. I'm not aware of any rule saying that the insurer must be US based in order for the premiums to be deducted.
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Apr 27, 2015 21:26
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furushotakeru posted:The income earned in FL should be FL income (not subject to NYS or NYC taxes). That's not correct, as NY is a state that taxes wages under the theory that telecommuting for convenience is deemed to be as though you physically worked in NY (see Huckaby v. New York State Division of Tax Appeals and Zelinsky v. New York State Tax Appeals Tribunal). Given that Asterios is 'assigned' to the NY office, he has to apportion all the wages to NY. Horseshoe theory fucked around with this message at 02:27 on Apr 28, 2015 |
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Apr 28, 2015 02:23
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ThirdPartyView posted:That's not correct, as NY is a state that taxes wages under the theory that telecommuting for convenience is deemed to be as though you physically worked in NY (see Huckaby v. New York State Division of Tax Appeals and Zelinsky v. New York State Tax Appeals Tribunal). Given that Asterios is 'assigned' to the NY office, he has to apportion all the wages to NY. Huh. I stand corrected then. Not really sure how telecommuting creates nexus, but it is what it is. Now if you'll excuse me, I have to move my server to the Cayman Islands.
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Apr 28, 2015 03:46
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furushotakeru posted:Huh. I stand corrected then. Not really sure how telecommuting creates nexus, but it is what it is. The Supreme Court and/or Congress refuse to clearly define nexus in a universal manner since Quill v. North Dakota, so every state gets to decide whatever wacky standard they want to use unabated (see the Amazon click-through nexus case, Geoffrey v. SC for economic nexus, etc)? 
Horseshoe theory fucked around with this message at 10:39 on Apr 28, 2015 |
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Apr 28, 2015 10:37
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furushotakeru posted:Huh. I stand corrected then. Not really sure how telecommuting creates nexus, but it is what it is. Now if you'll excuse me, I have to move my server to the Cayman Islands. YOUR state is a dick about apportioned income and nexus. Don't bitch about NY.
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Apr 28, 2015 18:57
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AbbiTheDog posted:YOUR state is a dick about apportioned income and nexus. Don't bitch about NY. I'm pretty confident that CA only taxes income earned for services physically performed in CA, for non residents at least.
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Apr 28, 2015 20:53
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furushotakeru posted:I'm pretty confident that CA only taxes income earned for services physically performed in CA, for non residents at least. No, your state is a dick. https://www.ftb.ca.gov/businesses/New_Rules_for_Doing_Business_in_California.shtml See the "sales" bullet point. CA is basically saying even if a taxpayer goes nowhere NEAR the state, as long as enough of their gross sales come from a business domiciled in CA, the state wants them to pay in. Example given: Here in Oregon, a repo company seizes cars in Portland and never sets foot in CA. However 50% of the repos are done for a CA bank. CA would argue 50% of the income should be apportioned to CA, even though the company never entered the state. When I asked the CA revenue agent how they expect to enforce that, the response was "well, it's the law, so of course all the business will comply." Uh huh.
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Apr 28, 2015 22:04
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That sounds unconstitutional to me. Wouldn't interstate commerce clause nip that in the bud?
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Apr 29, 2015 00:02
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kefkafloyd posted:That sounds unconstitutional to me. Wouldn't interstate commerce clause nip that in the bud? A lot of states have tax law that leans towards being unconstitutional. Almost no state law tax cases ever make it to the Supreme Court (which is the only judicial body that gives a poo poo about the constitution's interaction with tax law)
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Apr 29, 2015 00:56
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ThirdPartyView posted:That's not correct, as NY is a state that taxes wages under the theory that telecommuting for convenience is deemed to be as though you physically worked in NY (see Huckaby v. New York State Division of Tax Appeals and Zelinsky v. New York State Tax Appeals Tribunal). Given that Asterios is 'assigned' to the NY office, he has to apportion all the wages to NY. This is what TurboTax seems to be saying -- I currently live in Florida and plan to for the rest of my life. Because I'm a NY "non-resident" and NY is the "source" of my income, they want me to pay taxes on all that money. The only sticky part for me is -- I work for a gigantic corporation whose corporate headquarters are in Kansas. So...is NY the source of my income because I "report" to supervisors in the NY branch, or is the ultimate source of my income Kansas? It's not a lot, thankfully, but it's good to know whether or not I need to pay more NY state tax than I have to.
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Apr 30, 2015 01:37
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Asterios posted:The only sticky part for me is -- I work for a gigantic corporation whose corporate headquarters are in Kansas. So...is NY the source of my income because I "report" to supervisors in the NY branch, or is the ultimate source of my income Kansas? It's based on the office that you report to. For example, Wal-Mart is based in Bentonville, Arkansas but a cashier for Wal-Mart in New York will pay tax to New York, not Arkansas, since that's the physical location that you are working in. In your case, since you are deemed (by New York) to be working in Florida for convenience rather than necessity (which is a pretty much impossible standard to meet most of the time), your telecommuting is viewed by New York as though you physically commuted into New York every day. As discussed above, since the Supreme Court and Congress basically refuse to regulate income (and other) taxation amongst the states, every state takes their own position and their own courts generally back them on it, leaving them to dictate the terms of taxation.
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Apr 30, 2015 01:58
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ThirdPartyView posted:It's based on the office that you report to. For example, Wal-Mart is based in Bentonville, Arkansas but a cashier for Wal-Mart in New York will pay tax to New York, not Arkansas, since that's the physical location that you are working in. In your case, since you are deemed (by New York) to be working in Florida for convenience rather than necessity (which is a pretty much impossible standard to meet most of the time), your telecommuting is viewed by New York as though you physically commuted into New York every day. As discussed above, since the Supreme Court and Congress basically refuse to regulate income (and other) taxation amongst the states, every state takes their own position and their own courts generally back them on it, leaving them to dictate the terms of taxation. That makes a lot of sense. Again I appreciate the incredibly thoughtful analysis from everyone here. I guess my last question is -- I moved to Florida to care for an ailing relative. Would that meet the criteria of necessity rather than convenience? Is that even a door worth opening, or should I just shut up and pay the money?
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Apr 30, 2015 02:15
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Asterios posted:That makes a lot of sense. Again I appreciate the incredibly thoughtful analysis from everyone here. This is a pretty detailed analysis of the telecommuting rules and the tests. From what I can tell, there is no medical exception that would get you out of being classified as convenience-based. And given the aggressiveness of the NYSDTF and potential costs of fighting any future assessment (as well as interest, penalties, etc) coupled with the NYSDTF's success in prior case law, I honestly don't think it would be worth fighting on this.
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Apr 30, 2015 02:59
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ThirdPartyView posted:This is a pretty detailed analysis of the telecommuting rules and the tests. From what I can tell, there is no medical exception that would get you out of being classified as convenience-based. And given the aggressiveness of the NYSDTF and potential costs of fighting any future assessment (as well as interest, penalties, etc) coupled with the NYSDTF's success in prior case law, I honestly don't think it would be worth fighting on this. Thanks so much, I really appreciate it.
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Apr 30, 2015 14:52
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So when I sell a rental house whose depreciation I have been deducting from income do I pay it back at ordinary tax rates or capital gain rate?
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May 4, 2015 15:41
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Elephanthead posted:So when I sell a rental house whose depreciation I have been deducting from income do I pay it back at ordinary tax rates or capital gain rate? Capital rate max of 25%.
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May 5, 2015 00:04
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Admiral101 posted:Capital rate max of 25%. If, on the off chance you have a really old rental from the early 80s and prior, the answer will be different. What Admiral101 is referencing is the section 1250 recapture (real property). If you have improvements that you depreciated as section 1245 property (personal property) then that recapture is taxed at ordinary income rates. Form 4797, page 2.
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May 5, 2015 16:47
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Thanks, I didn't bother to capitalize any appliances because I am lazy and I purchased the property in the last decade. I guess I effectively reduced my tax rate on the income from 35% to 25%. I love america. Assuming the real estate bubble doesn't pop before some sucker buys it.
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May 7, 2015 16:17
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[redacted]
Friend fucked around with this message at 06:07 on Oct 5, 2015 |
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May 8, 2015 21:06
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So assuming you make 70k for 2015: You will have a : 12k standard deduction 8k exemption Assuming no other deductions, this brings your taxable income to roughly 50k. At 50k, your tax liability (combined for both you and your wife) is going to be around $6,500. This is going to be on the high side because obviously your wife may or may not find work. Do you contribute to a 401k at all? How much are you currently withholding for federal per month? Has your wife been getting any unemployment compensation?
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May 8, 2015 22:36
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Is foreign income abroad which qualifies for the foreign income exclusion eligible for contribution to an IRA to offset the tax burden of domestic non-earned income?
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May 9, 2015 09:42
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DNova posted:Is foreign income abroad which qualifies for the foreign income exclusion eligible for contribution to an IRA to offset the tax burden of domestic non-earned income? If you exclude income using the FEIE, it does not count as earned income and you can't use it to contribute to an IRA. You can use foreign tax credits to offset your US tax liability on that income and then it will be counted as normal earned income eligible to be used for IRA contributions.
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May 10, 2015 09:04
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I'm switching to being an independent 1099 contractor after some bullshit with the staffing company I work(ed) for; I'm currently negotiating my new hourly rate with my employer and I'm trying to figure out how much I need to take out of each paycheck for taxes to see what I've got left. With regards to federal income tax, my husband and my joint income puts us in the 25% tax bracket but my income on my own is in the 15% bracket. Do I withhold 25% or 15% from my paycheck for federal taxes?
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May 15, 2015 23:14
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Gold and a Pager posted:If you exclude income using the FEIE, it does not count as earned income and you can't use it to contribute to an IRA. You can use foreign tax credits to offset your US tax liability on that income and then it will be counted as normal earned income eligible to be used for IRA contributions. Very helpful, thank you.
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May 15, 2015 23:32
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Aquatic Giraffe posted:I'm switching to being an independent 1099 contractor after some bullshit with the staffing company I work(ed) for; I'm currently negotiating my new hourly rate with my employer and I'm trying to figure out how much I need to take out of each paycheck for taxes to see what I've got left. Don't forget that as an independent contractor you will also be responsible for both halves of FICA taxes. You should expect to set aside about a third of your 1099 income and maybe make estimated quarterly payments, depending on how much you will be making. Or you could have your husband increase his withholding and prevent an underpayment that way.
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May 15, 2015 23:44
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JohnnyPalace posted:Don't forget that as an independent contractor you will also be responsible for both halves of FICA taxes. You should expect to set aside about a third of your 1099 income and maybe make estimated quarterly payments, depending on how much you will be making. Or you could have your husband increase his withholding and prevent an underpayment that way. I'm factoring in the 15.3% self-employment FICA, but whether it's 25% or 15% for federal determines how much more money I ask for from my employer since the "raise" they offered is actually a pay cut after taxes. Edit: if I ask for more it bumps me up into 25% anyway so I'll just use that. Better to withhold too much than too little. Edit 2: I'm planning on withholding 25% federal, 6.84% state, and 15.3% FICA for a total of 47.14%. Does that sound right or have I gone wrong somewhere? Problem! fucked around with this message at 00:04 on May 16, 2015 |
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May 15, 2015 23:54
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Aquatic Giraffe posted:I'm factoring in the 15.3% self-employment FICA, but whether it's 25% or 15% for federal determines how much more money I ask for from my employer since the "raise" they offered is actually a pay cut after taxes. The FICA caps out during a calendar year for the social security portion, so you'd need to compare to what you've already earned to date to see how much applies. Note that the federal, 1/2 of FICA, and state would apply no matter what, so the "hourly rate" difference would really be 1/2 the FICA if you're trying to compare apples to apples.
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May 18, 2015 16:44
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If you change employers after hitting the FICA cap, does that information travel to the new employer, or do you pay double FICA tax that year?
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May 18, 2015 20:52
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Bisty Q. posted:If you change employers after hitting the FICA cap, does that information travel to the new employer, or do you pay double FICA tax that year?
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May 18, 2015 21:30
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Small White Dragon posted:It doesn't carry over; instead, you can claim the excess FICA on your tax return. Your new employer gets screwed over, though.
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May 19, 2015 16:32
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I'm paying quarterly taxes for the first time this year because I stated making a decent amount of cash last year (self employed). My estimated payments are based off last years earnings so I pay about $5000 in taxes each quarter. However this year I'm making more money. I've probably already made as much this year as I did all of last year. Should I adjust my quarterly payments or just continue paying the $5k and then pay the rest at the end of the year? Also, is there any good accounting software to help me do all this? I used an accountant last year but I'm thinking I might be able to do this on my own.
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May 20, 2015 13:25
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Omits-Bagels posted:I'm paying quarterly taxes for the first time this year because I stated making a decent amount of cash last year (self employed). My estimated payments are based off last years earnings so I pay about $5000 in taxes each quarter. quote:Generally, most taxpayers will avoid this penalty if they either owe less than $1,000 in tax after subtracting their withholding and estimated tax payments, or if they paid at least 90% of the tax for the current year or 100% of the tax shown on the return for the prior year, whichever is smaller. If you want to avoid a penalty, you should aim to pay at least 100% of your 2014 tax liability. But you also want to be able to pay the full balance at the due date, so increasing the estimated taxes ccertainly couldn't hurt.
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May 20, 2015 18:37
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sullat posted:If you want to avoid a penalty, you should aim to pay at least 100% of your 2014 tax liability. But you also want to be able to pay the full balance at the due date, so increasing the estimated taxes ccertainly couldn't hurt. Another question... I'm moving states soon. How do I figure state taxes now?
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Jun 2, 2015 13:09
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Omits-Bagels posted:Another question... I'm moving states soon. How do I figure state taxes now? You'll do two part year resident returns for the periods of residency in each state.
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Jun 3, 2015 00:17
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Filed my tax return a few months ago which was suppose to be for a couple thousand. It got held up as someone else tried to use my ss#. Only took a 3 hour phone call to fix that. Got my return today and the check is for under $100. Woohoo taxes are fun, now to wait and see what the reasoning is.
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Jun 5, 2015 03:27
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Harminoff posted:Filed my tax return a few months ago which was suppose to be for a couple thousand. It got held up as someone else tried to use my ss#. Only took a 3 hour phone call to fix that. Got my return today and the check is for under $100. What do you mean? You filed the tax return, how don't you know what refund you get?
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Jun 5, 2015 23:15
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I filed my return back in January which was suppose to be for a couple thousand however never got the refund so I called the irs and they said that someone else tried to use my ssn and that they will get it corrected and mail out my check. Yesterday I got a refund check however it was for under $100 so now I need to call them back and see what's up.
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Jun 5, 2015 23:59
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So apparently when paying my taxes online a few months ago I paid next years taxes 2015, instead of 2014. I'm getting papers saying we still owe, and of course the IRS is closed on the weekends. Is this something they can fix?
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Jun 6, 2015 18:49
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Deep Winter posted:So apparently when paying my taxes online a few months ago I paid next years taxes 2015, instead of 2014. I'm getting papers saying we still owe, and of course the IRS is closed on the weekends. Is this something they can fix? Yeah, they can fix it. Do you like spending time on hold? If so, I have good news about that, too.
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Jun 6, 2015 19:36
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