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furushotakeru posted:Certain forms in 2010 supported modernized Efile and can in theory can still be efiled. I'm pretty sure Lacerte just didn't support mEf until the 2011 program. Our thousands of dollars each year at work! I haven't paid that bill yet, don't remind me.
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Aug 9, 2012 17:36
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State Tax question here. Here's the back story. I recently moved from MD to CA for work for a defined period of time ~2 years. So from doing a bit of research (from here: http://www.marylandtaxes.com/publications/bulletins/it/ar_it37.pdf) it seems that MD will still consider me a resident. I have no intention of getting CA drivers license/registering vehicles here/registering to vote here. From the FAQ#1&2 I believe I'm clearly still an MD resident because I own a home there that I do not plan to 'change' my domicile and 'abandon' MD (I'll be renting for 2 years in CA). quote:Question 1: I have been a resident of Maryland for the last six (6) years; however, I was not in Maryland at any time during the last tax year. I did not benefit from any state or local privileges. I did not use the roads, schools, shops or anything here. Why do I have to pay tax here in Maryland? The second part of this is: http://individuals.marylandtaxes.com/incometax/outsidemd.asp quote:If you have income that is taxed in another state, see Maryland Form 502CR to determine if you are eligible for a tax credit. Be sure to include your completed Form 502CR with your Maryland return, along with a copy of the return you filed with the other state. It seems that MD will give me a credit for all income taxes paid to CA (because I obviously have to pay income taxes here) while I maintain my residency in MD. So my question: Which State return do I take deductions/itemization from come tax time? I would think I take the deductions from CA, then use MD form 502cr to offset my MD tax obligations but I'm unsure. I'm pretty sure that this will be a wash in the end in terms of my tax liability but what State is my 'main' return supposed to be for? Or do I take deductions on both? (which I'm pretty sure is wrong). Also how is CA going to feel about me living here for ~2 years without become a resident? Will they care as long as they get their income taxes?
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Aug 9, 2012 18:13
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Plinkey posted:State Tax question here. In the end it really won't matter. CA taxes income earned in CA regardless of whether you are a resident. Then you will file as a MD resident and report your income earned in CA and claim a credit for the CA taxes paid on that income, which should bring you down to zero. CA doesn't care (or at least the taxing agency wont) as long as you pay them what is due.
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Aug 9, 2012 19:02
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aleph1 posted:My employer pays for the flight if it is booked through them, but if the cost of the flight is fully deductible I'd prefer to book it myself for flexibility (and upgradability, and the miles) Having your employer pay for it seems like it'd be the better option. Even if it is fully-deductible you'd only be reducing your tax bill by 15%/25%/28%/whatever-your-tax-rate-is% of the cost of the ticket assuming it is a tax deduction and not a tax credit. And you should get the miles anyway; miles go to the individual flying them even if a company pays for them (unless they book you in a fare class that doesn't earn miles).
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Aug 9, 2012 19:33
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fordan posted:Having your employer pay for it seems like it'd be the better option. Even if it is fully-deductible you'd only be reducing your tax bill by 15%/25%/28%/whatever-your-tax-rate-is% of the cost of the ticket assuming it is a tax deduction and not a tax credit. Unreimbursed expenses go on Form 2106. The IRS has gotten stricter on auditing these expenses and make you show the Company policy on these expenses. If you could have gotten reimbursed, but chose not to, they will disallow them. If the employee policy is vague and you didn't submit the expenses and don't have a letter from your manager denying the reibursement, the expense will be disallowed. And since the expenses are reduced by 2% of your AGI (and are nondeductible if you're in AMT) just get the expense paid by the Company.
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Aug 9, 2012 22:14
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AbbiTheDog posted:Unreimbursed expenses go on Form 2106. The IRS has gotten stricter on auditing these expenses and make you show the Company policy on these expenses. If you could have gotten reimbursed, but chose not to, they will disallow them. If the employee policy is vague and you didn't submit the expenses and don't have a letter from your manager denying the reibursement, the expense will be disallowed. Pretty sure he was figuring it was a moving expense, and therefore deductible on the front of the return.
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Aug 9, 2012 22:19
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furushotakeru posted:Pretty sure he was figuring it was a moving expense, and therefore deductible on the front of the return. Well, maybe I should have read the original post instead of just somebody's quote of him. 
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Aug 13, 2012 16:52
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Is it a good idea to ask my income tax preparer to review this "2012-13 UNSECURED PROPERTY TAX" bill I received from the County? Looks like a tax of ~$150 on ~$15k of property (type: BB1 BUSINESS ASSESSMENTS), so I'm not sure whether it's even worth their time to scrutinize because it's a relatively small amount.
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Aug 14, 2012 00:39
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Mandalay posted:Is it a good idea to ask my income tax preparer to review this "2012-13 UNSECURED PROPERTY TAX" bill I received from the County? Probably not. At least around here the assessor doesn't share his assessment formulas so I wouldn't know what to look for. Plus, around 1% sounds about right.
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Aug 14, 2012 00:44
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furushotakeru posted:Probably not. At least around here the assessor doesn't share his assessment formulas so I wouldn't know what to look for. Plus, around 1% sounds about right. Yeah, it doesn't quite line up with the Business Property Statement filed earlier this year but I'll just trust the County on this one. Thanks!
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Aug 14, 2012 00:56
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My wife and I got an AUR form saying we owed $2,500 + $120 interest for discrepancies on our 2010 taxes, which were done by a CPA. Reviewing them, the education credits form 8863 has my name and social instead of my wife's (she was in grad school that year). I'm hoping that this is a relatively easy fix, but I'm not sure if this something I'd have to fill out an amendment for or if it would just be covered by the AUR. While we wait to hear back from our accountant--who I hope will be awesome about this (his fault but we should have caught it)--can someone sooth our nerves or tell us to get out the checkbook?
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Aug 14, 2012 01:21
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The Aphasian posted:My wife and I got an AUR form saying we owed $2,500 + $120 interest for discrepancies on our 2010 taxes, which were done by a CPA. Reviewing them, the education credits form 8863 has my name and social instead of my wife's (she was in grad school that year). It should be easy enough to fix with a letter response from your preparer. An amendment probably won't be necessary (or even advisable).
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Aug 14, 2012 01:32
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Thanks. I'll try to post back when/if it all gets resolved.
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Aug 14, 2012 01:40
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Does SB/SE just take all the extensions that they get between March and April and throw them into the furnace so that they can send out more late-filing notices? Maybe if we send out five hundred letters + proofs of mailing we will get a free bumper sticker. Cripes.
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Aug 14, 2012 02:09
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scribe jones posted:Does SB/SE just take all the extensions that they get between March and April and throw them into the furnace so that they can send out more late-filing notices? Maybe if we send out five hundred letters + proofs of mailing we will get a free bumper sticker. Cripes. That's why it's best to Efile extensions  Although at $6 a pop that gets a bit costly to do a bunch of them 
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Aug 14, 2012 05:28
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Why the gently caress does efiling extensions cost more than a stamp? Because online has to be easier to process than snail mail..
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Aug 14, 2012 10:09
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furushotakeru posted:That's why it's best to Efile extensions You didn't get unlimited efile?
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Aug 14, 2012 16:49
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AbbiTheDog posted:You didn't get unlimited efile? Not for businesses, only individual. I do about 50-60 entity returns a year, unlimited business efile doesn't make sense for me.
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Aug 14, 2012 21:49
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scribe jones posted:Does SB/SE just take all the extensions that they get between March and April and throw them into the furnace so that they can send out more late-filing notices? Maybe if we send out five hundred letters + proofs of mailing we will get a free bumper sticker. Cripes. I am pretty sure that is exactly what they do. I am actually pretty pleased with efiling. By and large our experience has been quite good.
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Aug 15, 2012 04:45
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seymore posted:I am pretty sure that is exactly what they do. The nice thing with efiling the extensions is our software has reports you can print that shows the transmittal log. Even the IRS sends notices to our clients that the returns are late for efiled, and we need to send them that info.
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Aug 15, 2012 16:45
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After finally getting my dream job, I know am faced with filing out a W4. The thing is, I moved to a different state to get this position, with my wife and daughter staying in the other. Before, we obviously filled jointly. And as the OP stated, this is almost always beneficial. However, I don't know much about taxes and will be paying someone for their services this year. With all that in mind, should I fill out my w4 as married filing seperate? Edit: I guess I am looking for reassurance and information. Is it legal to file mfj with us living in different states? SHSrunner09 fucked around with this message at 17:44 on Aug 15, 2012 |
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Aug 15, 2012 17:33
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SHSrunner09 posted:Edit: I guess I am looking for reassurance and information. Is it legal to file mfj with us living in different states? Yes. The federal government doesn't care what state you live in. The states might get a little more complex but generally speaking they will only tax you on the income you earn in that state.
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Aug 15, 2012 17:56
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furushotakeru posted:Yes. The federal government doesn't care what state you live in. The states might get a little more complex but generally speaking they will only tax you on the income you earn in that state. Your new W-2 will list your new state, the old W-2 will list the old state. Pretty easy to do with today's software. If you have a mortgage in each state (selling one house and buying another) do your tax prep guy a favor and let him know which mortgage is for which state, not every 1098 form lists the property being mortgaged.
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Aug 15, 2012 18:39
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AbbiTheDog posted:not every 1098 form lists the property being mortgaged. One of the very few things that I like about BofA is that they do this (of course they got it from buying Countrywide, but at least had the sense not to stop doing it). (or more likely it would have cost money to change and they said "eh")
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Aug 15, 2012 19:19
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So here is a slightly unique situation: I had a side project that my company is purchasing from me. The plan is to simply add it to my salary as a "Bonus". Is this the best way to deal with things, from a tax perspective? Would it be better to treat it as something else?
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Aug 21, 2012 20:59
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A side project? Was it created using company resources? Or is this something you did on the side privately? Did this project cost you any money personally? Without knowing details, I would say that treating it as a bonus is the way to go, if for no other reason than your employer picks up about half of the payroll tax.
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Aug 21, 2012 21:30
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Admiral101 posted:A side project? Was it created using company resources? Or is this something you did on the side privately? Did this project cost you any money personally? It was a project that I built prior to employment, so I 100% own the IP. The only costs were website hosting costs (so basically negligible). My company is pay $1000 for it, which is also pretty negligible in the grand scheme of things.
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Aug 22, 2012 01:51
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polyfractal posted:It was a project that I built prior to employment, so I 100% own the IP. The only costs were website hosting costs (so basically negligible). My company is pay $1000 for it, which is also pretty negligible in the grand scheme of things. Depending on exactly what they purchased there is a possibility you could classify it as a capital gain. It is probably not worth the effort. Ask them to gross you up by paying your tax costs ?
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Aug 22, 2012 02:56
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seymore posted:Depending on exactly what they purchased there is a possibility you could classify it as a capital gain. It is probably not worth the effort. Ask them to gross you up by paying your tax costs ? Under what circumstances would he be able to report this as anything except self employment income? Since he personally built this project, it seems pretty textbook. Admiral101 fucked around with this message at 12:29 on Aug 22, 2012 |
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Aug 22, 2012 12:25
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seymore posted:Depending on exactly what they purchased there is a possibility you could classify it as a capital gain. It is probably not worth the effort. Ask them to gross you up by paying your tax costs ? Self created assets are not subject to capital gains is my recollection.
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Aug 22, 2012 16:57
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Federal tax question. I am single and my allowances on my paystub states 0. I received a promotion at my job and I'll be making significantly more, and I will also receive a nightshift and weekend differential on top of it. Also, I will be working about 8 hours of overtime a week (paid). Since my allowances is 0, and I'm single, does that pretty much guarantee me not having to pay back tax money at the end of the year?
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Aug 24, 2012 09:43
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I withdrew some funds from a retirement account - in order to roll the money over and avoid paying the income tax, do I just have to invest the same amount into an IRA? It seems too simple - no goofy forms to fill out or anything, I just reconcile it when I file my taxes?
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Aug 24, 2012 12:57
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Tyro posted:I withdrew some funds from a retirement account - in order to roll the money over and avoid paying the income tax, do I just have to invest the same amount into an IRA? It seems too simple - no goofy forms to fill out or anything, I just reconcile it when I file my taxes? I hope the CPAs will correct me if I'm wrong, but a roll-over is done when the custodian of your current account transfers the funds to the custodian of the new account. If you withdraw the funds to yourself, and then try to put them into a new account, you don't get the tax benefits of a roll-over. In other words, can you undo the withdrawal? Did someone advise you to withdraw those funds in order to make a roll-over?
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Aug 24, 2012 15:20
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Hughmoris posted:Federal tax question. I am single and my allowances on my paystub states 0. I received a promotion at my job and I'll be making significantly more, and I will also receive a nightshift and weekend differential on top of it. Also, I will be working about 8 hours of overtime a week (paid). You should be fine. entris posted:I hope the CPAs will correct me if I'm wrong, but a roll-over is done when the custodian of your current account transfers the funds to the custodian of the new account. If you withdraw the funds to yourself, and then try to put them into a new account, you don't get the tax benefits of a roll-over. An indirect rollover an be completed within 60 days of receipt
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Aug 24, 2012 15:38
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furushotakeru posted:An indirect rollover an be completed within 60 days of receipt Correct, that is what I am trying to do. Do I need to notify the receiving institution that the funds are being rolled over or can I just create an IRA, dump the money in, and do the paperwork when I file? edit to add: A brief google shows I should notify the receiving institution so they can send in a form 5498? Tyro fucked around with this message at 17:33 on Aug 24, 2012 |
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Aug 24, 2012 17:22
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Tyro posted:Correct, that is what I am trying to do. Do I need to notify the receiving institution that the funds are being rolled over or can I just create an IRA, dump the money in, and do the paperwork when I file? Yes
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Aug 24, 2012 22:33
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Tyro posted:Correct, that is what I am trying to do. Do I need to notify the receiving institution that the funds are being rolled over or can I just create an IRA, dump the money in, and do the paperwork when I file? Just tell the receiving institution it's an "indirect rollover" and they'll fill in the proper amounts on the 5498. If you don't, the 1099-R issued will tell the IRS the full amount will be subject to taxation and around 10 months after you file your tax return you'll get a CP-2000 matching notice telling you to pay a fortune in back taxes. On your 1040 for 2012, you'll list the gross distribution on the IRA line and then list -0- in the taxable section, and the word "rollover" on the same line.
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Aug 24, 2012 22:55
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AbbiTheDog posted:Just tell the receiving institution it's an "indirect rollover" and they'll fill in the proper amounts on the 5498. Don't know if you have run into this or not, but a few months ago I saw 3 CP2000 notices for 2010 returns that correctly reported Roth conversions that were only partially taxable due to basis in the traditional IRA. The notices were saying we didn't report all of the distribution, even though it was all very clearly spelled out on form 8606. Annoyed the crap out of me.
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Aug 24, 2012 23:42
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furushotakeru posted:Don't know if you have run into this or not, but a few months ago I saw 3 CP2000 notices for 2010 returns that correctly reported Roth conversions that were only partially taxable due to basis in the traditional IRA. The notices were saying we didn't report all of the distribution, even though it was all very clearly spelled out on form 8606. Annoyed the crap out of me. Part of that might stem from the fact that you need to file the 8606 every year. Turns out the IRS does NOT keep track of that info for you on an ongoing basis. Had a client do an IRA rollover, and they had done their own taxes for decades, and part of that included non-deductible IRA contributions. Took about 15 months to clean up the taxation of that with the IRS, and thank goodness they kept their old tax records from the 90s.
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Aug 25, 2012 00:00
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Speaking of CP2000 notices, I have a client who just got one with a proposed balance due of $1.5 million.  Obviously this is because the IRS doesn't have the basis information, but even with the correct basis information, it appears that his tax preparer failed to report approximately $450k in long-term gain. Whoops.
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Aug 26, 2012 21:20
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