A list of puns related to "Income Tax Threshold"
I was speaking to someone and they said you wouldnβt be able to, however I wasnβt able to find this information on the ATO website. It says you incurred expenses if:
Thereβs nothing about income thresholds.
Edit: spelling
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
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!
As the question says, I'd like to know if there are any reasons NZ has not adopted these approaches please?
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!
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.
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 donβt 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!
I missed out on this for many years.
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 governmentβs 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
Note : For this debate no delta awards will be provided.
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!
My income comes from room rentals and a small home-based art business. I made well over the threshold for total gross income, but thatβs 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 βother incomeβ. When reading the CRA website last night, it states βThe 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.β
Does anyone have any knowledge about whether CRA will be looking at line 150 or if my βother incomeβ wonβt 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.
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.
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 wonβt pay any tax at all on your capital gains. If you earned between $38,601 and $425,800, youβll 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.
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?
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?
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