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furushotakeru posted:You should be able to do this, but check with your payroll departments to make sure. I do not think there should be any plans out there that won't reimburse for a spouse's expenses as well as you own. Just to be sure I get this right - there's no problem insofar as the IRS is concerned and that it just comes down to whether the employer-provided FSA covers spouse's expenses as well, correct?
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Oct 9, 2012 03:11
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PretzelAssassin posted:Just to be sure I get this right - there's no problem insofar as the IRS is concerned and that it just comes down to whether the employer-provided FSA covers spouse's expenses as well, correct? I doubt there will be a problem at all, but it won't come from the IRS if there is one
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Oct 9, 2012 03:11
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furushotakeru posted:I doubt there will be a problem at all, but it won't come from the IRS if there is one Excellent - thank you!
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Oct 9, 2012 03:33
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Shampy posted:My business is in desperate need of a resell tax exempt license. We're in the distribution business and haven't been asked for one until now. We need to get this ASAP. What's the quickest way of doing this? I see 20 business days quoted but I'm willing to go anywhere to get this poo poo done NOW. But sales tax in Florida is administrated by the Florida Department of Revenue, so I'd go [strike]harass[/strike] pay them a visit. Small White Dragon fucked around with this message at 04:24 on Oct 9, 2012 |
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Oct 9, 2012 04:21
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Shampy posted:My business is in desperate need of a resell tax exempt license. We're in the distribution business and haven't been asked for one until now. We need to get this ASAP. What's the quickest way of doing this? I see 20 business days quoted but I'm willing to go anywhere to get this poo poo done NOW.
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Oct 9, 2012 05:44
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AbbiTheDog posted:A) We can represent for collections, but I'm guessing it's more than just a collections matter. Thanks for the attention guys. I appreciate it. I'll tell a bit more about my situation to clear things up. I'm a bit hesitant to divulge details out of embarrassment/privacy, but I will tell what I feel comfortable with. So, first off, I do not and have never made a lot of money. I do research for a living and have never broken 25k. I am debt free because of aggressive CC payments. I rent an apartment so have no mortgage and I do not own a car. On top of this, I am in a master's program now so that I can apply my research skills to organizations and make real money and that pretty much cuts my salary to 22k or so cause of classes. My situation is simply that I have not filed for a number of years (3 or 4). The years I filed I was able to keep up with payments only with the help of family, which I could not afford to go through again. The payments were just too hard to keep up with. I had to stop paying health insurance to make them and I have still haven't gotten on a new plan, which is illegal in my state since I'm in MA. Ugh, it's really pathetic. Why am I so concerned now? I just got married a month ago and I don't want to gently caress my wife over. I want to take care of my poo poo, budget payments, whatever. This not filing thing was definitely a terrible, awful habit, but it will not be continuing from this point forward. I am 100% sure of that. I just need to fix things for as cheaply as possible. Abbithedog, good point on the IRS filing for me. I forgot that they have done that for the 2009 year. When I saw the penalty for not filing I went "OHNO!" and realized how much my idiocy was going to cost me. That was a major eye opener and what really motivated me to get help. I think I may be a great OIC candidate so I will do more research on that. I've definitely made a lot of stupid choices when it comes to taxes and I know I will have to suffer some consequences, but I just want to make things right moving forward. At this point in time I could get a large lump sum from a family member (10k maybe) because I am due some inheritance at some point so they would know i'd be good for it. I've been waiting for two years on the inheritance at this point already though otherwise I would have taken care of this sooner.
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Oct 9, 2012 16:21
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Jewce posted:Thanks for the attention guys. I appreciate it. I'll tell a bit more about my situation to clear things up. I'm a bit hesitant to divulge details out of embarrassment/privacy, but I will tell what I feel comfortable with. Ugh. Here's what you've got: The IRS looks at two items for an Offer In Compromise (OIC). They look at hard assets you can sell (which you have none) or they "term" out your income stream to see what you can afford to pay. They have predetermined formulas that state how much you can pay per month for housing, food, clothing, etc. In order to settle, the "termed out" debt of the taxes owing needs to be less than what you can afford to pay under the "income stream" method in your case. Filing back taxes is step one, as mentioned several times. You should call the IRS and tell them you're working on this to stave off any collection attempts (they should give you 30 days or so to come up with this). You can then start looking at the forms for OIC (Form 433a http://www.irs.gov/pub/irs-pdf/f433aoi.pdf) to see if you want to screw with it. If you don't want to do OIC, you can still do an installment payment plan (Form 9465 http://www.irs.gov/pub/irs-pdf/f9465.pdf). As long as the payment you propose will payoff the tax in 60 - 72 months, they'll typically take it if you owe under the "fast track" agreement amount. The amount used to be $25,000 in back taxes owed, I think they upped it to $50,000 but don't quote me on that. Until you payoff the taxes in full or they are waived, it will show on your credit report. I don't do many OIC (I avoid it if possible simply due to the clientele associated with them) but usually they take 12-18 months to work through the system. As far as the spousal impacts, you can file separately (which sucks tax-wise) or use Form 8379 (http://www.irs.gov/pub/irs-dft/f8379--dft.pdf) when you file your returns together.
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Oct 9, 2012 18:58
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So after I filed my taxes for 2011 well in advance, I got a 1099 from a freelance gig I'd forgotten about. I had my accountant prepare an amended return (1040X) in April so that I could pay the $134 I owe, and I haven't sent it in yet (from being broke, being busy, or forgetting for long stretches). Now that I'm working regularly I'm ready to send it in, but I have some irrational fear that it might: do more harm than good, have accrued insane interest, incur some hidden penalty or audit switch, or result in the IRS cashing my check at an inopportune time months in the future after I've forgotten about it. I'm sure this is mostly irrational and just ignorance at work, but does anyone have advice so I can know what to expect/if sending it in late is problematic/how quickly they'd process my payment? NickArtcade fucked around with this message at 07:20 on Oct 10, 2012 |
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Oct 10, 2012 06:43
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NickArtcade posted:So after I filed my taxes for 2011 well in advance, I got a 1099 from a freelance gig I'd forgotten about. I had my accountant prepare an amended return (1040X) in April so that I could pay the $134 I owe, and I haven't sent it in yet (from being broke, being busy, or forgetting for long stretches). The address you send the return too? Yeah, it's probably a bank lock box. They will cash the check within a week or two, several weeks before they actually process the amendment. Penalties and interest are based on the amount due so it won't get too significant.
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Oct 10, 2012 07:58
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furushotakeru posted:The address you send the return too? Yeah, it's probably a bank lock box. They will cash the check within a week or two, several weeks before they actually process the amendment. Not to mention that the IRS computers will eventually notice your return missed the 1099 and send you a bill anyways. Doing it yourself will save interest/penalties.
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Oct 10, 2012 16:33
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I had to use a credit card to cover a HSA-eligible expense, because the vendor had issues processing my HSA debit card. Can I transfer money out of my HSA to pay off the balance of the credit card? Can I just transfer the money from the HSA account to my normal checking account that I use to pay all my bills?
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Oct 10, 2012 21:00
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mlnhd posted:I had to use a credit card to cover a HSA-eligible expense, because the vendor had issues processing my HSA debit card. Can I transfer money out of my HSA to pay off the balance of the credit card? Can I just transfer the money from the HSA account to my normal checking account that I use to pay all my bills? You are allowed to use HSA funds to reimburse yourself for qualified out of pocket medical expenses that you pay for outside of the account, yes. I personally pay for all my medical expenses by credit card and then issue a check to my credit card company out of my HSA.
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Oct 10, 2012 21:03
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I didn't go to school for business or anything like that, but I am finding myself selling my work now and I need to figure this one out: I sell something, online, in my state for $50. The state/local tax rate for that is 8.25%. My merchant account charges 2.9% + $0.30. What amount do I actually pay taxes on? For example: An item sells for $50, my merchant account takes $1.75 and my bank account only shows that I made $48.25. Do I get taxed off that number? That would be $3.98 in taxes, leaving me with $44.27 at the end of the day. Or do I base taxes off of my listed price, regardless of the fee that was taken out before I made any money? That would be $4.13 in taxes and a final profit of $44.12. I know that ultimately this is literal pocket change, but I want to get it right. Anyone have any ideas? Maybe a link to a good business accounting 101 book or website for someone who has zero experience in this kind of thing? Thanks in advance! edit - oh, and am I wrong or do I only need to collect sales tax if my customer is in the same state as me? Syjefroi fucked around with this message at 19:05 on Oct 11, 2012 |
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Oct 11, 2012 19:01
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I'm trying to figure out how my husband and I should have our W4s set up. I just got a new job and we will have nearly the same salary with him making about 2.5k more than me. We do not have a mortgage and no kids either. We do not itemize. I just found out that his W4 is currently set up at a single withholding rate and 0 allowances. My W4 is set at married with 2 allowances. This is the way it has been for a few years now and last year we got a $850 refund. Do we need to change anything? We are trying to get as close to beaking even as possible without owing. What is the ideal setup as far as what type of withholding rate (single or married) each of us has on our W4 and how many allowances for each of us? Any help is much appreciated!
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Oct 11, 2012 22:01
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I've used the withholding calculator from the IRS website previous years and have always been really close http://www.irs.gov/Individuals/IRS-Withholding-Calculator
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Oct 11, 2012 22:23
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Syjefroi posted:I didn't go to school for business or anything like that, but I am finding myself selling my work now and I need to figure this one out: That said, if sales tax is due, you should actually charge that on top of the $50, so $50 * 1.0825 = $54.13 And yes, you only have to charge sales tax to customers in the states where you physically do business.
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Oct 11, 2012 22:38
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skipdogg posted:I've used the withholding calculator from the IRS website previous years and have always been really close
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Oct 11, 2012 23:18
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Small White Dragon posted:You're asking about sales tax, this is an income tax thread. Is there a sales tax thread, or a thread this question would better fit in?
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Oct 12, 2012 14:58
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Blakles posted:I used that before posting here and it said for both of us to have the married withholding rate with him having 10 allowances and me having 7. That didn't sound right to me so I thought I would get 2nd opinions here. It's probably calculating what you need to change to, to break even for the rest of the year. Right now you've more than likely overpaid, so it's saying for the next month and a half you would change to that to not get a big refund next year.
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Oct 12, 2012 16:10
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sapmagic fucked around with this message at 20:04 on Feb 9, 2022 |
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Oct 14, 2012 15:00
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sapmagic posted:I'm trying to figure out my best retirement plan options and someone from the long term investing thread recommended I ask here: is it possible for a multiple-owner S-corp (with no other employees) to set up a solo-401(k)? Or is it limited only to single-owner businesses & self-employed folks? Solo 401K is only available for businesses whose only employees are a single owner and/or their spouse. You need a SEP-IRA or traditional 401K.
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Oct 14, 2012 16:14
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Moved in with girlfriend who owns her condo. I am paying half of expenses. Does this count as rental income to her? Would it matter if I just paid all the utilities instead of paying part of mortgage?
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Oct 15, 2012 00:00
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sapmagic fucked around with this message at 20:04 on Feb 9, 2022 |
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Oct 15, 2012 11:34
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Couple of questions: 1. I have been living in the UK on a series of temporary assignments since late 2009. Thelast state in which I was domiciled before I moved was SC. What are the necessary / sufficient conditions for breaking SC residency? I would very much like to stop paying them taxes. 2. I have some equity compensation (ISOs) I would like to use to buy investment property. I am interested in figuring out: a. The most tax-efficient way to structure the purchase. I plan on eventually moving back to the USA, possibly (probably) into this investment property. If I purchase it myself, I believe I get to write off the mortgage interest and repairs during the time it is an investment property, and then continue to write off the interest once it becomes my domicile. However, I may have other options, ideas?? b. Because I am not domiciled in the UK, my UK taxes are on a remittance basis. Because I am not remitting my equity income into the UK, HMRC doesn't see it for capital gains purposes, correct?
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Oct 15, 2012 15:29
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sapmagic posted:I see. Just to confirm my understanding: for 2012, the maximum SEP-IRA & 401k contribution limits are both $50,000. If I want to max out a SEP-IRA, I have to pay myself wages of $200,000 to hit $50,000 (since the limit is 25% of wages). If I want to max out a 401k, I can make an employee contribution of $17,000 (salary deferral) and an employer contribution of $33,000 (employer match). Therefore, I would prefer a 401k to a SEP-IRA because I can max out the former without getting crushed by the extra 15.3% payroll taxes that paying $200,000 in wages would cost. Mostly correct. I'm not sensing you understand that the employer match to a 401(k) is limited to nor more than 25% of w-2 compensation from the company, and also that ALL qualifying employees must receive the same % of their wages in employer matching contributions. Potentially even ones that don't choose to defer salary via paycheck withholding, depending on what kind of testing your plan administrator elects to follow. Then again you have to make employee contributions to SEP IRA accounts too.
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Oct 15, 2012 15:55
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sapmagic fucked around with this message at 20:04 on Feb 9, 2022 |
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Oct 15, 2012 16:46
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sapmagic posted:The 25% limit was explicitly mentioned in the solo-401k materials I was reading but I wasn't sure if it also applied to regular 401k plans too. So, the 401k can be maxed with wages of $33,000 x 4 = $132,000, whereas the SEP-IRA requires wages of $200,000. With an S-corp the difference can be paid via distribution instead, which provides a tax savings of ($200,000 - $132,000) * 15.3% = $10,404. You're correct on the payroll tax issue. You might find that if you weren't taking $200k w-2 wages to start with, jacking up your payroll to maximize deferring income might not be the best choice, especially if tax rates are going UP starting next year.
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Oct 15, 2012 16:57
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Aren't 401(k)'s difficult and costly to administer?
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Oct 15, 2012 21:07
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Small White Dragon posted:Aren't 401(k)'s difficult and costly to administer? Depends on the kind and testing method you choose. A solo 401(K) is very inexpensive. I have a client with 401(K) for himself and two employees, electing a non discretionary match rather than the more complex methods of top-heavy testing, and he pays about $2-3K annually for administration (including filing the annual IRS form 5500 return).
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Oct 15, 2012 21:30
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furushotakeru posted:Depends on the kind and testing method you choose. A solo 401(K) is very inexpensive. I have a client with 401(K) for himself and two employees, electing a non discretionary match rather than the more complex methods of top-heavy testing, and he pays about $2-3K annually for administration (including filing the annual IRS form 5500 return). Add that up with the payroll taxes due and it's an uphill battle to make a return.
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Oct 15, 2012 22:37
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furushotakeru posted:Depends on the kind and testing method you choose. A solo 401(K) is very inexpensive. I have a client with 401(K) for himself and two employees, electing a non discretionary match rather than the more complex methods of top-heavy testing, and he pays about $2-3K annually for administration (including filing the annual IRS form 5500 return). The 401(k) limit is currently $16,500 compared to the $11,500 limit of a SIMPLE IRA. Hardly seems worth that extra cost unless you have a lot of money to [strike]waste[/strike] shelter?
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Oct 16, 2012 01:16
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well, it's done. despite someone proforma'ing 2010 for no reason and wiping out every return in 2011 Lacerte. yes that is a real thing that happened. at 3:30pm. time to drink!
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Oct 16, 2012 02:24
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sapmagic fucked around with this message at 20:05 on Feb 9, 2022 |
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Oct 16, 2012 05:46
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Well poo poo it looks like you only need to not have full time employees. They might be right. It's probably the "solo" in solo 401(K) that threw me off.
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Oct 16, 2012 06:05
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Small White Dragon posted:That sounds pretty terrible. I assume a SEP IRA is like a SIMPLE IRA, which is, to say, cheap and easy to do. The 401(K) employee deferral contribution is actually $17,000 in 2012. SIMPLE is still $11,500 because no one ever uses those things anyhow so the IRS doesn't care enough to index the limit  SEP IRA has lower administration costs I think compared to a 401(K), but still has the same requirement that the business contribute to all eligible employees the same % of their compensation.
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Oct 16, 2012 06:08
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Hi folks. I'm trying to get a headstart on my taxes for this year because I think they'll be a bit of a mess. I'm pretty sure my best bet will be to hire someone (speaking of, furushotakeru your contact details in the OP require archives.) I'd like to give an outline of what's going on and see if you guys agree. When it comes down to it the only interesting things going on this year are that I got married (common law-TX, have an affidavit and all that) and my wife is in school. I make a fair bit of money so affording a tax preparer isn't an issue, I just want to make sure that we get the most deductions we can out of the school bills. Her tuition is pretty cheap, but over the course of this year she won't have any taxable income (<$1000 total) and we have to pay for separate housing for her which I'm hoping is deductible. Basically I've only ever done completely standard tax filings before and I want some help figuring out if I should do this on my own and what kind of records I need to start putting together. I'm an engineer so I'm not a total retard but tax language always confuses me and I'm afraid if I do it myself I won't get as good of a result as I would otherwise.
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Oct 16, 2012 17:04
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Good morning! I apologize ahead of time for this post because I don't know if I'm in the right spot and I also don't know the best way to go about this. Trying to not post a long story, my dad isn't here to handle tax paperwork. My mom was left in charge of it. She had my brother file an extension for her and then I think everyone assumed she had already done it. A week ago I get a call from her about some confusion on taxes. I kind of put it off and today I am here with a stack of paperwork for 2011 taxes she never touched. Yup. Yikes. I don't have a way to reach my dad right now. So I've got a K-1 his company sent over, several 1099-INT and 1099-R forms (among other things). I tried doing a quickie TurboTax last night to see if I could just get something together really quickly to mail out and I have to admit, it is over my head. There's questions that are probably answered by the company's accountant but I'm not sure what to ask. My question: I managed to get to my mom's bank and print out 2011's list of deposits and payments organized by month. If I take this and the tax forms over to someplace like H&R, could they figure this out without needing to reach my dad about it? I don't know what else to do other than to give them the number to the company my dad is with and to my mom and hope they can together figure it out. I'm also concerned that state and parish taxes (we live in Louisiana) haven't been paid. She said something that the parish taxes were automatically taken out of her account, but I don't know how that is possible if she's never filled out the paperwork? Is this something an accountant will be able to call around on my behalf and check to verify? Otherwise I'm not exactly sure the best way to go about this. Thanks very much in advance for any advice people can give.
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Oct 17, 2012 16:34
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TehSaurus posted:Hi folks. I'm trying to get a headstart on my taxes for this year because I think they'll be a bit of a mess. I'm pretty sure my best bet will be to hire someone (speaking of, furushotakeru your contact details in the OP require archives.) I'd like to give an outline of what's going on and see if you guys agree. This doesn't sound messy. You'll be receiving a 1098-T on whatever tuition your wife paid. Your wife should also keep receipts of whatever books or course materials she bought. You will (likely) be eligible for the Lifetime Learning Credit, depending on your joint income and a couple other factors. This is all very much doable by turbotax. What problems are you anticipating? Sangoire posted:Good morning! I apologize ahead of time for this post because I don't know if I'm in the right spot and I also don't know the best way to go about this. Why would you need a list of deposits and payments from your mom's bank account? H&R Block would probably do the return. Whether it would be anything close to right or not is a gamble without your father's involvement. It's not hard to complete a tax return using the K-1's and 1099-R's and whatever other tax forms you've received. That said, it would be pretty stupid to file a tax return without talking with your dad first about his K-1 and 1099-R's. Regarding your state/local taxes: I don't know specifics with LA, but it sounds like she may have been making estimated tax payments. You can call the state and parish and determine what payments they have on record. The best way of going about this is to have your dad do his own taxes instead of having you trying to stumble your way through them. Doing somebody else's taxes, especially when they involve passthrough income and 1099-R distributions, is incredibly unwise to do. Admiral101 fucked around with this message at 20:57 on Oct 17, 2012 |
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Oct 17, 2012 20:52
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Admiral101 posted:This doesn't sound messy. You'll be receiving a 1098-T on whatever tuition your wife paid. Your wife should also keep receipts of whatever books or course materials she bought. You will (likely) be eligible for the Lifetime Learning Credit, depending on your joint income and a couple other factors. This is all very much doable by turbotax. Meh, he could handle it. First thing I would do is have his mom call the IRS and ask for a wage and income transcript for both her and her husband - they're done processing 2011. If they have a fax machine the IRS can fax it over in a couple hours, and that will show what the IRS has received on their account for 2011. Then it's a small matter of collecting medical expenses/charity/property taxes (stuff the IRS doesn't get)and dropping it in. The K-1 forms shouldn't be that hard, just read the instructions (you might need to go online to get them, just do a google search) to see what numbers go where. You're late, so the IRS won't accept an Efile, you'll need to send in paper returns. If you don't have copies of the W-2/1099-R forms and need to attach them you can use the substitute form instead.
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Oct 17, 2012 22:21
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Admiral101 posted:This doesn't sound messy. You'll be receiving a 1098-T on whatever tuition your wife paid. Your wife should also keep receipts of whatever books or course materials she bought. You will (likely) be eligible for the Lifetime Learning Credit, depending on your joint income and a couple other factors. This is all very much doable by turbotax. Thanks for this information. It looks like the LLC will be the way to go and that it should be pretty easy with some standard software. I think I'm just a little intimidated because this is our first year filing jointly.
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Oct 18, 2012 15:22
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