vania-janet/multiturn-rag-retrieval-data huggingface dataset:
No, it is not a taxable event. You will not have to pay tax on the $500 in this scenario. See the IRS publication 590-A: To recharacterize a contribution, you generally must have the contribution transferred from the first IRA (the one to which it was made) to the second IRA in a trustee-to-trustee transfer. If the transfer is made by the due date (including extensions) for your tax return for the tax year during which the contribution was made, you can elect to treat the contribution as having been originally made to the second IRA instead of to the first IRA. If you recharacterize your contribution, you must do all three of the following. Include in the transfer any net income allocable to the contribution. If there was a loss, the net income you must transfer may be a negative amount. Report the recharacterization on your tax return for the year during which the contribution was made. Treat the contribution as having been made to the second IRA on the date that it was actually made to the first IRA.
Two things I would recommend doing:   I would save a minimum of 15% into retirement.  By young I will assume that you are under 30.  15K/year + company match will grow into a sick amount of money by the time you are in your 60s.  So you have a net worth that is north of 5 million.  What kind of charitable giving can you do then?  Answer:  What ever you want!  Also it could be quite a bit more then that. Get a will.  It will cost a little bit of money, but for someone like you it is important to have your wishes known.
For a parent deciding on contributing to a 529 plan the first consideration is the plan run by the state government that will trigger a state income tax deduction. You do have to at least look at the annual fees for the program before jumping into the state program, but for many people the state program offers the best deal because of the state tax deduction. Unfortunately for you California does not offer a state tax deduction for 529 plan contributions. Which means that you can pick another states program if the fees are more reasonable or if the investing options are better. You can even select a nationwide plan unaffiliated with a state. Scholarshare is run by TIAA-CREF. TIAA-CREF is a large company that runs pension and 403(b) funds for many state and local governments. Many teacher unions use them.  They are legitimately authorized by the state of California: The ScholarShare Investment Board sets investment policies and   oversees all activities of ScholarShare, the state’s 529 college   investment plan. The program enables Californians to save for college   by putting money in tax-advantaged investments. After-tax   contributions allow earnings to grow tax-deferred, and disbursements,   when used for tuition and other qualified expenses, are federal and   state tax-free. The ScholarShare Plan is managed by TIAA-CREF Tuition   Financing, Inc. The ScholarShare Investment Board also oversees the Governor’s   Scholarship Programs and California Memorial Scholarship Program. note: before picking a plan from another state make sure that they allow outside contributions.
First, you'll need to find a service that can handle transferring that amount of money, whether it's using a bank, or wire transferring service. Any major Wall Street bank (Wells Fargo, Chase, Bank of America, etc.) should be able to handle it. You could also use services such as Western Union. As for your legal and tax obligations, according to Western Union: Individuals in Canada and the U.K. don’t have any tax considerations,   unless international payments are received as income or in the form of   capital gains. Only then must they report it on their income taxes,   says Ilyas Patel, director at Ilyas Patel Chartered Certified   Accountants based in Preston, U.K., and the director of Tax Expert, a   tax advice website. To that end, when considering their tax obligations, individuals   should take care to look into the reporting requirements on foreign   income or gifts ranging up to a certain amount. For example, in the   U.S., the Internal Revenue Service (IRS) requires individuals who   receive more than $100,000 U.S. dollars from a foreign source to   report it on a Form 3520. “You may not owe taxes on the money, but it   informs the IRS that you received it,” Gragg says, stressing the   importance of consulting with a professional. “They’re looking for   certain terrorist activities and other illegal activity.” Due to the large sum of money your transferring, it would be in your best interest to speak with a banker (maybe even a lawyer or CPA) about this.
Look into the Coverdell Education Savings Account (ESA). This is like a Roth IRA for higher education expenses.   Withdrawals are tax free when used for qualified expenses. Contributions are capped at $2000/year per beneficiary (not per account) so it works well for young kids, and not so well for kids about to go to College. This program (like all tax law) are prone to changes due to action (or inaction) in the US Congress.  Currently, some of the benefits are set to sunset in 2010 though they are expected to be renewed in some form by Congress this year.
A) a tax treaty probably covers this for the avoidance of double taxation. Tax treaties can be very cryptic and have little precedence clarifying them http://www.irs.gov/businesses/international/article/0,,id=169552,00.html B) I'm going to say NO since the source of your income is going to be US based. But the UK tax laws might also have specific verbage for resident source income. sorry it is an inconclusive answer, but should be some factors to consider and point you in the right direction.
One of the best things you can do for this purpose, while getting a modest ROI on a passive investment, is invest in a company that profitably does whatever you want to see more of. For example, you could invest in a for-profit company that sells needed goods to low-income people at lower prices. Something like Wal-Mart, which is one of the most effective anti-poverty engines in the US. You might also say the same of something like Aldi (owner of Aldi stores and Trader Joe's), which is a discount store chain. This is true even though a company like Wal-Mart is seeking to make money first. Its customer base tends to skew heavily towards low-income consumers, and historically to rural and elderly consumers. When Wal-Mart is able to provide food, clothing, appliances and the like to poor people at a lower cost, it is making it marginally less painful to have a low income. Peter Suderman can explain why Wal-Mart is a humanitarian enterprise: Walmart’s customer base is heavily concentrated in the bottom income quintile, which spends heavily on food. The bottom income quintile spends about 25 percent of income on food compared to just 3.5 percent for the top quintile. So the benefits of Walmart’s substantially lower prices to the lowest earning cohort are huge, especially on food. As Suderman points out, this view of Wal-Mart dramatically lowering prices that low-income people pay for food was corroborated by an Obama adviser. That's just one company. You can pick the industry and company that best suits your personal preferences. Alternatively, you could invest in something like Whole Foods, a company with multiple missions to improve the planet and the community, in addition to the more typical mission of being a prosperous retail chain. Of course, as a general proposition, a less than entirely altruistic, charity-inclined investment doesn't need to be targeted at those with low incomes or at saving the planet. You could invest in almost anything you think is good (yachts, yo-yos, violins, energy production, industrial inputs, music performances) and the company will take care of making more of that good thing.
"Employers withhold at rates specified in Circular E issued by the IR. You can request that additional money be withheld (not an issue here) or you can have reduced withholding by claiming additional allowances on a W-4 (i.e., more than just for you and spouse and dependents) if you believe that this will result in withholding that will more closely match the tax due. (Note added in edit):Page 2 of the W-4 form has worksheets that can be used to figure out how many additional allowances to request. Also, I wonder if your withholding will be 37% or final tax bill be 26% of your adjusted gross income. The tax brackets are the tax on marginal income. If you are in the 28% tax bracket, you owe 28 cents in tax for each additional dollar of income, not 28 cents in tax for every dollar of income. Your overall tax might well be less than 20% of your income. As a specific example, in 2011 a married taxpayer filing jointly would be in the (highest) 35% tax bracket if the taxable income was $379,150 or more (marginal tax rate of 35% is applicable to every dollar more than $379,150) but the tax on $379,150 itself works out to be $102,574 or 27.05% of the taxable income. So if you do expect to be earning around $350K or more in salary between now and December 31 to hit that 26% that you expect you will owe, you might want to consider paying a tax accountant for advice on how to fill out your W-4 form for your new employer rather than relying on an Internet forum such as this for free advice. Note added in edit: Your comment ""... it is a cocktail of ... federal taxes, state taxes, local taxes, health care ..."" on the earlier version of my answer does raise the question of whether you want your employer to withhold 26% instead of 37% and have the money go to meet all these obligations or just 26% towards your Federal income tax liability only. The Federal W-4 form affects only how much money is withheld from your paycheck and sent to the US Treasury.
That will make it clear that there is room to give to those who are not as fortunate as you. If your SO's motivations are only worry that there won't be money when it's needed, you will not only get permission to donate, you'll get a happier SO. (For those who don't know how this can happen, I knew a woman just like this. The only income she believed they had was her husband's pension. He had several overseas companies and significant royalty income, but she never accounted for that when talking of what they could afford. Her mental image of their income was perhaps a quarter of what it really was, leading to more than one fight about whether they could take a trip, or give a gift, that she thought was too extravagant. For her own happiness I wish he had gone through the budget with her in detail.)"
IRS Publication 529 is the go-to document.  Without being a tax professional, I'd say if the dues and subscriptions help you in the running of your business, then they're deductible. You're on your own if you take my advice (or don't). ;)
Go through the IRS Publication 521. Generally, relocation assistance is given either as : or
Answering for just the US part, yes, you should be able to do this and it's a good strategy. The only additional gotcha I can think of is that if you've made after-tax contributions to your traditional IRA, you need to prorate the conversion, you can't just convert all the pre-tax or all the after-tax. I'm not familiar with Oregon personal income tax so there may be additional gotchas there.
You cannot defend your position against IRS by saying ""But the article on Nolo said I can not pay SE taxes on my earnings!"", you cannot say ""Some guy called littleadv lost an argument with some other guy called Ben Miller because Ben Miller was saying what everyone wants to hear"", and you can definitely not say ""But I don't want to pay taxes!"". There's law, there are legal precedents. When some guy on the Internet tells you exactly what you want to hear - beware. Many times when it is too good to be true - it is in fact not true. Many these articles are written by people who are interested in clients/business. By the time you get to them - you're already in deep trouble and will pay them to fix it. They don't care that their own ""advice"" got you into that trouble, because it is always written in generic enough terms that they can say ""Oh, but it doesn't apply to your specific situation"". That's the main problem with these free advice - they are worth exactly what you paid for them. When you actually pay your CPA/Attorney - they'll have to take responsibility over their advice. Then suddenly they become cautious. Suddenly they start mentioning precedents and rulings telling you to not do things. Or not, and try and play the audit roulette, but these types are long gone when you get caught."
From PayPal's website: PayPal offers discounted transaction rates for 501(c)(3) charities for   most products, and consistently low rates for all other nonprofits. No   extra fees for setup, statements, withdrawals or cancellation.   2.2% + $0.30 per transaction and no monthly fee for charities. There is a reduced rate if the donations total more than $100,000 (which they would for Wikipedia), but PayPal doesn't publish those rates. You have to call and ask about them. One forum I read indicates the rate drops to 1.9% + $0.30 per transaction.
"The pure numbers answer says you want the refund to be close to $0.  You can even argue, as some answers have, that you want to try to maximize the payment without receiving any sanctions for underpaying during the year. If you trace the money, it's easy to see why.  Let's say you get a paycheck.  Tag some of the dollars for Uncle Sam.  These are the dollars that, eventually, will be given to the IRS.  Now consider the following scenarios: From the raw numbers like this, its clear that you lose utility by setting yourself up for a large refund check.  The money was yours the entire time, but you chose to give it to Uncle Sam instead. However, the raw numbers are only part of the puzzle.  If you're a cold steely-gazed numbers person, they're the part that matters.  When the billionares are playing their tax evasion games, this is the only thing they are paying attention to.  However, real humans have a few psychological reasons they may choose to lose utility in terms of raw dollars in exchange for psychological assistance: These attitudes exist, and may be ideal for any one person.  Obviously the financially savvy answer of ""minimize your refund"" is the ideal answer from a dollars and cents perspective, but its up to you to see whether that attitude is right when you account for all of the non-measurable things, like stress.  In general, I would lead anyone to ""minimize your refund,"" but I would be remiss if I didn't include the very real psychological reasons people choose to deviate from it."
Another option if it is available is a Roth 401k.  It is similar to a Roth IRA in that you pay taxes up front, but the withdrawals are tax free.
"You could always put cash in an envelope and mail it, with no return address on the envelope. Any form of anonymous donation that I can think of has the risk that if the money is intercepted and stolen, you'll never know. Also, you won't get a receipt that you can use for tax purposes. You could try sending this organization a note saying, ""I think you're doing great work, but this donation was a one-time gift. Please take me off your mailing list."" I don't know if it would work, but it's worth a try. By the way, the problem is worse than you think: charities share mailing lists. Once one charity has your name, they'll often share it with other related charities. For example, I give to the Catholic Family Association even though I am a Protestant -- I think they're doing good work that Catholics, Protestants, and people of many other faiths could support. But over the years I started getting fundraising letters from other Catholic charities, and then from groups trying to spread Catholicism, and now I'm getting mailings from groups whose stated purpose is to oppose Protestants. I laugh and throw away the letters, but I know some people get really bothered by this sort of thing. ""I'm pretty sure that the total cost of the mailings including postage has now exceeded the $20 I donated."" I've occassionally thought of sending some trivial donation, $5 or $10, to some political or activist group that I totally oppose, just so they'll spend way more than that over the course of the next few years asking me for more money. :-) Plus, they'll send me letters that will tell me what the opposition is up to."
I'm glad keshlam and Bobby mentioned there are free tools, both from the IRS and private software companies.  Also search for Volunteer Income Tax Assistance (VITA) in your area for individual help with your return. A walk-in tax clinic strength is tax preparation.  CPAs and EAs provide a higher level of service.  For example, they compile and review your prior year's return and your current year, although that is not relevant to your current situation.  EAs and CPAs are allowed to represent you before the IRS.  They can directly meet or contact the IRS and navigate audits and other requests on your behalf.  Outside of tax season, an accountant can help you with tax planning and other taxable events. Some people do not hire a CPA or EA until they need representation.  Establishing a relationship and familiarity with an accountant now can save time and money if you do anticipate you will need representation later.  Part of what makes the tax code complicated is it can use very specific definitions of a common word.  Furthermore, the specific definition of a phrase or word can change between publications.  Also, the tax code uses all-encompassing definitions and provide detailed and lengthy lists that are not exhaustive; you may not find your situation listed or described in the tax code, yet you are responsible for reporting your taxable events.  The best software cannot navigate you through your tax situation like an accountant. Lastly, some of the smartest people I have met are accountants and to get the most out of meeting with them you should be as familiar as possible with your position.  The more familiar you are with accounting, the more advanced knowledge they can share with you. In short, you will probably need an accountant when: You need to explain yourself before the IRS (representation), you are encountering varying definitions in the tax code that have an impact on your return, or you have important economic activities that you are unsure of appropriate tax treatment.
From WePay (GoFundMe's payment processor) support. I received only gifts and donations.  Will I receive a Form 1099-K?   As of 2015, the IRS has clarified that WePay is not required to send    a Form 1099-K with respect to payments that are made solely as gifts   or donations.  The purpose of Form 1099-K is to report payments for   the provision of goods or services, which may be subject to tax.   Gifts and donations typically are not reported as income by recipients,   so it is not necessary to send them a Form 1099-K.   https://support.wepay.com/hc/en-us/articles/203609483-Tax-Reporting
This is called an in-plan Roth conversion and is discussed by the IRS here. If your 401(k) has a Roth option then it likely also has a provision to convert pre-tax dollars, but you'll have to check with the administrator to be sure. They could also potentially limit the type of money that can be converted. But most likely you should be able to convert any amount you want, and since it's all pre-tax (your contributions, employer matching, and earnings), it doesn't really matter which money is converted because it's all equivalent. One caveat is you won't able to convert any employer matching that hasn't fully vested.
If you want to predict the, the easiest solution is to get hold of a copy of last year's tax forms and fill them in with estimated numbers.  Odds are that none of the more complicated deductions will apply to you this first time around, so I'd suggest just using the federal 1040EZ, and your state's equivalent, for this purpose. If it turns out that you can claim anything more than the standard deduction, that would reduce your taxes, so this is leaning toward the safe side.
It's better to set corporate tax rates at 0% and instead tax individuals or property. Taxes reduce what you tax. Subsidies increase what you subsidize. If you want to eliminate cigarettes or corporations, you tax them heavily.  What Starbucks does pails in comparison to Ikea.
"There are countries out there that are known as tax havens, where they offer companies low or no taxes on earned revenue. I haven't looked into this in over a decade, but recall that countries like the Cayman Islands, Switzerland, Ireland, and Nauru, to name a few fit that tag. But like bstpierre stated, there's a reason why the IBM's of the world can pull that off easier then us mere mortals. They have the financial clout to make sure they have accountants that dot every i, cross every t, and close every loophole that would give an ""in"" to the folks at the IRS, CRA, Inland Revenue, or who have you."
I would think that the real teeth here would be the IRS, should they look into it (and they should).  Splitting paychecks to avoid overtime also reduces taxes paid, which is large scale tax fraud, which generally leads to a sentence in gently-caress-my-bum-Federal-Penitentiary.
"Am I right to say that no tax needs to be given for the annual ~$130k   USD, since they are considered as annual gift tax exclusion? Not only that you're wrong, but it also looks like a tax fraud, not just mere avoidance. You'll have hard time proving to any judge or jury that the gifts are ""in good faith"". By the way, $5 a month is below minimum wage."
"It seems I can make contributions as employee-elective, employer   match, or profit sharing; yet they all end up in the same 401k from my   money since I'm both the employer and employee in this situation. Correct. What does this mean for my allowed limits for each of the 3 types of   contributions? Are all 3 types deductible? ""Deductible""? Nothing is deductible. First you need to calculate your ""compensation"". According to the IRS, it is this: compensation is your “earned income,” which is defined as net earnings   from self-employment after deducting both: So assuming (numbers for example, not real numbers) your business netted $30, and $500 is the SE tax (half). You contributed $17.5 (max) for yourself. Your compensation is thus 30-17.5-0.5=12. Your business can contribute up to 25% of that on your behalf, i.e.: $4K. Total that you can contribute in such a scenario is $21.5K. Whatever is contributed to a regular 401k is deferred, i.e.: excluded from income for the current year and taxed when you withdraw it from 401k (not ""deducted"" - deferred)."
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