LPT: Do not turn down raises due to perceived negative tax outcome. In the US taxes increase only for a portion of your income. E.g. if you get a raise from $86K to $100K you’ll only be taxed 24% on the amount above $86K, not on whole income, and 22% on income under the $86K threshold.
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πŸ‘€︎ u/tysmily
πŸ“…︎ Jan 15 2022
🚨︎ report
If my income is below the tax-free threshold can I claim deductions for work-related expenses?

I was speaking to someone and they said you wouldn’t be able to, however I wasn’t able to find this information on the ATO website. It says you incurred expenses if:

  • you received a bill of invoice for an expense that you were liable for
  • you did not receive a bill or invoice but were charged and you paid for the expense

There’s nothing about income thresholds.

Edit: spelling

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πŸ‘€︎ u/personality_exam
πŸ“…︎ Jan 16 2022
🚨︎ report
Income thresholds for tax credits halved in latest version of Build Back Better bill

https://twitter.com/CoreyBCantor/status/1455984151673323531

Page 1483: https://rules.house.gov/sites/democrats.rules.house.gov/files/BILLS-117HR5376RH-RCP117-18.pdf

New limits:

$500,000 in the case of a joint return , $375,000 in the case of a head of household, and $250,000 in any other case

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πŸ‘€︎ u/_night__king_
πŸ“…︎ Nov 03 2021
🚨︎ report
Opening an IRA, confused about new salary being on threshold of income limits for Traditional IRA tax deduction, help needed

Hello, long time lurker/ new poster here. I'm in my late 30s and due to some poor choices when I was younger, have only started getting serious about my finances this year (saving, repairing/ building credit, getting serious about retirement savings, etc.).

In January of this year I starting contributing to a Principal Roth 401k through my employer and am contributing 2% over the 4% required to get the employer match. I've recently considered increasing my contributions further, but found this sub and wiki, which led me consider an IRA instead of contributions over the match amount. I'll be able to start with contributing about $400 per month to this account and, because I can't contribute 1- 3k to open the account, I think I'll go with Fidelity due to their no minimum to open vs. Vanguard.

The issue is, I'm stuck on the Roth va. Traditional IRA part. (Forgive me if I get any of this wrong, I'm still learning). I understand there are income limits for the Traditional contributions being tax deductible. Here's the kicker, 2 weeks ago I got a salary increase to 125k, which I understand is the income limit/threshold for contributions to a Traditional IRA being tax deductible.

So, do I open a Traditional IRA for now as my income for 2021 will be under 125k so I can get the tax advantage for 2021, and then plan on [learning how and] doing backdoor conversions to a Roth IRA for 2022 and after when my yearly income will be 125k? Also, does that mean I need both a Traditional and a Roth account going forward after 2021, and that every year I'll contribute to the Traditional and then covert it to the Roth?

TL;DR: From what I understand, the wiki advises that a Traditional IRA is not suggested if you won't get the tax deduction for contributions, and I just got a raise that I'm pretty sure puts me over the income limit, where should I start (Traditional/ Roth IRA) for opening and future years, with a midyear change to 125k income?

Sorry for the long post and thank you for reading!

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πŸ‘€︎ u/SecondChancingIt
πŸ“…︎ Sep 12 2021
🚨︎ report
John McDonnell - Sunak steals my rhetoric but no substance. Working people hit by income tax rise as thresholds frozen, council tax rise, pay freeze for public sector workers, cliff edge cut in Universal Credit in months, nothing for disabled on legacy benefits and over 2 million still excluded. twitter.com/johnmcdonnell…
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πŸ‘€︎ u/popcornelephant
πŸ“…︎ Mar 03 2021
🚨︎ report
Shadow Chancellor Annaliese Dodds suggests Labour will back the four-year freeze on income tax thresholds, which will push 1.3 million low paid workers into the tax system, saying: β€˜In principle we are not against the freeze’ twitter.com/JasonGroves1/…
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πŸ‘€︎ u/Max_Cromeo
πŸ“…︎ Mar 04 2021
🚨︎ report
Labour will vote against the decision to freeze income tax thresholds this week, warning that workers and families should not be asked to repair the economic damage of the pandemic before big business | Labour Whips, Twitter twitter.com/labourwhips/s…
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πŸ‘€︎ u/MarcusAtakin
πŸ“…︎ Mar 06 2021
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Why does NZ lack any tax-advantaged savings options (e.g. 401k [US], ISA [UK]) and a tax-free income threshold (e.g. UK, Aus)?

As the question says, I'd like to know if there are any reasons NZ has not adopted these approaches please?

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πŸ‘€︎ u/Confy
πŸ“…︎ Dec 12 2020
🚨︎ report
Seeking Help On If Our Retirement Plans Trigger the Income Limit Thresholds for Tax Deductions

I have a an old Rollover IRA that has just been sitting in Fidelity. I owe taxes for 2020 so was hoping I could offset them some by contributing to this IRA. My wife and I both have CalPERS retirement and I have a 401(a) through work. I can't tell if these trigger the income limit thresholds for tax deductions or not. If they do trigger and our combined MAGI is over $124,000 then we get no deduction on taxes right? Thanks in advance!

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πŸ‘€︎ u/sldarb1
πŸ“…︎ May 05 2021
🚨︎ report
1031 Exchange to DST - List of state income tax filing thresholds for non-resident?

Situation: I'm selling my actively-managed rental properties in the state I live in which does not have an income tax. I'll be doing a 1031ex on each of them (eventually) to purchase interest in a number of Delaware Statutory Trusts... I'm tired of dealing with tenants. I'm working with an investment firm, but I have not selected any specific replacement properties yet.

Goal: Avoid having to file state income tax (especially in multiple states). I can do this one of two ways: 1) purchase DSTs within states such as my own with no income tax or 2) purchase DSTs from states where my state income is below the filing threshold.

Example numbers: $100,000 gross federal income from my day job; $50k ownership of a DST that pays out 5% annually ($2500).

The Problem: I can't find a compiled list of state filing thresholds for non-residents. Does a list exist? I've looked at a few random states, and the ones I've seen use one's federal gross income (not just what you earned in the state) against the threshold and apply a ratio of what you earned in the state to calculate your threshold and standard deduction. Are there any states that only tax nonresidents on what they earned in the state without using the total US income? I'm fine with paying a simple state tax on what I earn in that state; but I don't want to create a giant mess to deal with every April.

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πŸ“…︎ Mar 04 2021
🚨︎ report
Is your income just over the threshold for the $1,400 stimulus check? Tax preparers have tips to help you qualify marketwatch.com/story/tha…
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πŸ‘€︎ u/RandomCollection
πŸ“…︎ Mar 15 2021
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What’s the income threshold for filing tax for FY 2019-20? 2.5L or 5L?
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πŸ‘€︎ u/ToothPicker2
πŸ“…︎ Dec 17 2020
🚨︎ report
Boris Johnson's tax pledge would cost Β£8bn a year, IFS says - Johnson’s pledge to raise the threshold for the top rate of income tax from Β£50,000 to Β£80,000 would cost Β£8bn a year and boost the incomes of the highest-earning 8% of the adult population, according to the Institute for Fiscal Studies. theguardian.com/politics/…
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πŸ‘€︎ u/ManiaforBeatles
πŸ“…︎ Sep 27 2019
🚨︎ report
CMV: Farm income above a threshold should be taxed

Hoping to get more traction and serious discussion here. Would love to hear opinions from people in the agri business.

Currently all farm income is tax-free in India. This is to support the common farmer. Taking advantage of this, many politicians, industrialists etc show their black money as farm income, and thus their farms show incredible yield (e.g. 100x of the average yield in India) and Cortes of Rs in income. To keep the common farmer tax incentivized, simply don’t tax the first Rs 15L of income and thereafter introduce tax slabs for additional farm income. (15L threshold can be changed obviously). I would like to hear pertinent counter arguments to why this should not be the case, or supporting comments or further ideas. Thank you!

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πŸ‘€︎ u/dnqxote
πŸ“…︎ Aug 30 2021
🚨︎ report
PSA: Even if you are below the required filing threshold, you should file federal income taxes. You may qualify for the Earned Income Tax Credit (EITC)

I missed out on this for many years.

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πŸ‘€︎ u/11ej25
πŸ“…︎ Dec 30 2020
🚨︎ report
The Chancellor is reportedly considering bringing forward the Conservative manifesto commitment to raise the main income tax thresholds to Β£12,500 and Β£50,000 next year. This would cost around Β£3.7bn, and overwhelmingly benefit the richest tenth of households twitter.com/resfoundation…
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πŸ‘€︎ u/justthisplease
πŸ“…︎ Oct 28 2018
🚨︎ report
"Boris Johnson plans to slash income tax for 3 million people by hiking 40p rate threshold from Β£50,000 to Β£80,000. The move will cost estimated Β£9.6 billion, funded from Β£26 billion fiscal headroom currently set aside for no deal" mobile.twitter.com/Steven…
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πŸ‘€︎ u/NilFhiosAige
πŸ“…︎ Jun 09 2019
🚨︎ report
Economy Debate : Increasing Revenue - Impose income tax on agriculture income above a certain threshold and Sell off State-owned companies and Public Assets to the Private Sector.

India's GDP growth has fallen and now stands at 5% , Do you think the following are two good ways to increase revenue and accelerate and push our economy forward ?

First Method

To impose income tax on agriculture income above a certain threshold. Contrary to popular perception, India has a many wealthy farmers and even profitable agriculture industry corporate groups who are not paying any income tax because of the tax exempt status of agriculture.

Second Method

Sell off State-owned companies and public assets to the private sector. This will result in the better utilisation of the assets, and remove liabilities from the government’s balance sheet.

Both these approaches will entail facing off against powerful lobbies and unions. But since Modi enjoys popularity and credibility; should he not make the case to the people, citizens will stand with the Union of India against the unions of India.

Those in favor of the motion can begin their defense/arguments with [For].

Those who are against this motion can begin their criticism / arguments with [Against].

II. Instructions

  1. Refrain from personal attacks
  2. Donot indulge in derailing
  3. Support your arguments with proper citations

Note : For this debate no delta awards will be provided.

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πŸ‘€︎ u/Orwellisright
πŸ“…︎ Aug 30 2019
🚨︎ report
Rolling Mutual Funds into Roth IRA Tax Free While under LTCG taxable income threshold

I have some money invested in mutual funds and realized that I would rather grow the money in a Roth IRA, as I am earning less than the 2020 income threshold and will be for the foreseeable future. The investments have grown since 2018, so the gains qualify as long-term capital gains. I also just started my first job this September, and as such my 2020 income will be well below the taxable income threshold for even the lowest 15% tax on long-term capital gains. Can I safely sell my mutual funds, not be taxed on the gain, and reinvest into a Roth IRA to avoid taxation assuming I don't make any early withdrawals? All perspectives appreciated, especially if I missed something. Thanks!

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πŸ‘€︎ u/AirsoftingGamer
πŸ“…︎ Oct 30 2020
🚨︎ report
Steven Swinford: Exclusive: The Tories have ditched Boris Johnson's plans to increase threshold at which people start to pay the 40p rate of income tax from the Tory manifesto They will instead focus on increasing NICs threshold in move designed to help the lower-paid twitter.com/Steven_Swinfo…
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πŸ‘€︎ u/Kross_B
πŸ“…︎ Nov 09 2019
🚨︎ report
If I have only capital gains as my only income and held the asset >12 months. and the capital gains is 18k, which is under the tax threshold. Do I pay no tax?
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πŸ‘€︎ u/DenseGreen
πŸ“…︎ Apr 10 2020
🚨︎ report
Does income entered as β€œother income” on tax form count toward CERB 5k threshold?

My income comes from room rentals and a small home-based art business. I made well over the threshold for total gross income, but that’s because of my room rentals. My art business was very slow last year in large part because I was focused on renting the rooms. When doing my taxes, rental income is entered as β€œother income”. When reading the CRA website last night, it states β€œThe income of at least $5,000 may be from any or a combination of the following sources: employment; self-employment; maternity and parental benefits under the Employment Insurance program and/or similar benefits paid in Quebec under the Quebec Parental Insurance Plan.”
Does anyone have any knowledge about whether CRA will be looking at line 150 or if my β€œother income” won’t be considered? My art business did not make the threshold last year because I was focused on getting and keeping my rooms rented.

Edit: Found this on the Canada website. . It looks like I may qualify for it to be business I come because I provide laundry and cleaning services for my renters. This means I will have to refile my taxes for the last few years. But it also means I should qualify for the CERB.

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πŸ‘€︎ u/TAJobhunter
πŸ“…︎ Apr 02 2020
🚨︎ report
Random question - what would be the impact to the subway system if we had a tax on all nyc residents (above x income threshold) equivalent to a 30 day unlimited subway ticket and made the subway "free" to all residents

I was having this discussion with a friend, and I am curious as to what you all think would happen. I understand that it's an extremely broad question.

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πŸ‘€︎ u/tyrionslongarm22
πŸ“…︎ Jan 03 2020
🚨︎ report
I have an unusual tax problem but the gist is this: I need to figure out if I can lower my taxable income without quitting my job. Basically, I'm selling a rental property this year and my income is going to be just over the threshold that requires me to pay a large tax on the profit from the sale.

My understanding is that if I make more than about $38,000, I will have to pay at least 15% additional tax on the profit from selling my rental property (compared to whatever the tax is on the capital gains from selling a non-rental home). But if I make less money than this threshold, I literally pay 0% additional tax on the capital gains. This could be the difference between paying as much as $30,000 additional in taxes or $0 in taxes on the capital gains.

My income this year will be just over $38,000, probably over by about $3000 or so.

There's an article about this stuff here: https://finance.zacks.com/sell-rental-house-taxable-1089.html

Here's the relevant section:

"If your total income for the year is less than $38,601, you won’t pay any tax at all on your capital gains. If you earned between $38,601 and $425,800, you’ll pay 15 percent tax on the gains from your rental property sale. For those who earned more than $425,801 during the tax year, capital gains will be taxed at 20 percent."

So, one option (obviously) would be to quit my job later in the year before I go over the threshold. But I don't want to have to do that. So I'm wondering if there is some way to get my taxable income down by maybe $4000.

For example, what if I bought a new roof for the house for probably $5000? Would that count as a subtraction on my taxable income that would put me below the taxable income threshold? Or could I put money into some kind of write off account, like a health savings account or something? Or what if I take a class at the local university? Would those costs cut into my taxable income?

I've only just started looking into this and I know next to nothing about tax-related issues, so pardon me if I'm showing a lot of ignorance here. If I have to, I will find a tax expert to discuss this with.

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πŸ‘€︎ u/anonymous-man
πŸ“…︎ Jul 20 2019
🚨︎ report
Income Tax Threshold Increase from 50k - 80k?

If Boris raises the Income Tax Threshold from 50-80k, how does that actually help anyone or help the country?

The average salary is Β£37,428 per year. So how does it help the country or people on less than 50k? To me this just means that people who have a ltd company can just increase there dividend payouts and pay less tax overall?

The only benefit I can see is people earning over 80k in london will actually be able to save more to purchase a house?

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πŸ‘€︎ u/U2903
πŸ“…︎ Jan 07 2020
🚨︎ report
Earned income well below the 250K threshold and forgot to file Quarter Income Tax

So I'm self-employed and I just got some work over the last couple of months as freelance work and this has been my sole source of income over the course of the year. Total is well-below the Tax Threshold but employer has been witholding income per some tax regulation on employers witholding income of consultants/freelancers [from what I recall, employer told me na if I was earning what I had earned every month for the full year then total would breach the threshold kaya they were required to withold tax]. Also, I'm registered as Self-Employed so that's one thing I got right. Wasn't earning anything na since September of last year (went to gradschool) and only started earning September this year so I sorta forgot to file income tax returns. What do I do? Do I file an ITR pa for this quarter? What about the other quarters I missed? Will I get fined even though I didn't really earn anything in the first three quarters and even though all my income this year has been below the taxable threshold naman?

πŸ‘︎ 5
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πŸ‘€︎ u/pmags_31
πŸ“…︎ Dec 15 2019
🚨︎ report

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