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skipdogg posted:I'm not a tax anything, but I would think the only person that can take the deduction for paying interest is the person who actually paid the interest. Did your stepfather make the student loan payments? Admiral101 posted:They cannot take the interest deduction on your student loans if you are not their dependent. Yea my stepdad would pay like an extra hundred bucks on top of what I would pay each month; which I am extremely grateful for. Thanks for answering my questions!
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Feb 13, 2013 22:41
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Here's what will likely amount to be a simple problem, but I'm a simple man. My workplace moved office from WV to VA in 3Q12. (I'm a VA resident). I have two W2s to account for this, but both state versions say VA state reference/filing copies. One of these should say WV right? I'm doubly confused because the version I thought was the WV version says I have 2 State Exemptions, and the VA version says I have 0. I asked someone in payroll about this, but she told me to kindly eat poo poo and get a tax professional. Am I thinking about this too much or did someone over there mess up? I'm always intimidated when I do my taxes because I pay a fuckton to WV  but then it turns out that it's a wash when VA pays me a fuckton back  .
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Feb 14, 2013 02:50
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Internet Cliche posted:Here's what will likely amount to be a simple problem, but I'm a simple man. WV and VA have a tax reciprocity agreement. Your income from your W-2 should only be taxable in the state where you live - in this instance, Virginia.
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Feb 14, 2013 14:42
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Thanks for offering your help in this thread. I'd appreciate whatever advice you can offer: I tried to tackle my taxes alone this year, which hasn't been a problem in the past, but we had some major life changes in 2012, and my initial go through on TurboTax has left me in a panic. My wife and I left our Detroit area home to move to Nashville, TN for her job on June 1st, 2012. We purchased the Detroit house in December of 2008 and took the First Time Homebuyer Credit for $7500. We've been paying back $500 a year on our returns since 2010, but evidently since we left the home and it is no longer our "main home" we owe the rest of the $6500 that was unpaid on the credit immediately. Additional information: we are renting out the house to a couple of family members who are simply paying us the cost of the mortgage. We're making no profit on the home. Things have been pretty tight since moving to Nashville. It took me a while to find a job of my own (which I have now), but as a first year medicine resident and a first year social worker, we are basically living like college kids with insane student loan debt. This may just cripple us completely, especially since I went into tax season full of hope that we'd get a nice little shot in the arm financially with an actual refund after two years joint filing as two full-time students. I'm going to look into professional tax preparation tomorrow, but from your cursory viewpoint, how hosed am I?
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Feb 15, 2013 06:13
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furushotakeru posted:When you leave your house and travel to your first job site for the day, that is a commute and is non deductible regardless of how many miles it is.
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Feb 15, 2013 07:06
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Saint Fu posted:Somewhat related to the above... If you work as a private contractor and take public transportation to work every day, can you deduct the cost of the travel from your income? No.
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Feb 15, 2013 10:06
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furushotakeru posted:They aren't doing it that way any longer. With the introduction of modernized efile they are generally processing returns and refunds on a more real-time basis. Although they are no longer providing a timetable for refunds since they are implementing counter-fraud measures, so it might be a few days or it might be up to 3 weeks. 
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Feb 15, 2013 14:31
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Trot_to_Trotsky posted:Thanks for offering your help in this thread. I'd appreciate whatever advice you can offer: A tax professional isn't going to do much for you honestly. Maybe find a few deductions you might have missed offsetting a bit of the money. That was the deal with the tax credit when you took it. Pay it back over 15 years, or when you leave the house. You're basically hosed. http://www.irs.gov/uac/First-Time-Homebuyer-Credit-Questions-and-Answers:-Homes-Purchased-in-2008 Don't ignore this though, I'm sure the IRS runs into this all the time, file on time, get in front of it with some kind of payment plan. Minimize penalties and fees. The worst thing you can do is ignore it.
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Feb 15, 2013 18:48
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I'm not sure if it's cool to ask about refunds in here, but it seems like mine is really low. I'm using TurboTax freedom since I make 30k. I'm finishing up with it and it's telling me that I'm getting back $195 from federal and $20 from state. Isn't that really low? It seems like I got that much last year when I had been working at this job for barely a month. For reference, I'm renting from my friend who owns a condo, I'm not making any car payments, I'm single and have no dependents, and I'm not making student loan payments (I give my parents money since it's simpler for them to just keep making the payments). No debt or anything. My federal income withholding was $1800, $1000 for social security, and $350 for medicare. I thought that you end up getting the majority of withheld stuff back and that it was basically a zero-interest loan for the government? Did I do something wrong here?
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Feb 15, 2013 19:43
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Zenzirouj posted:I'm not sure if it's cool to ask about refunds in here, but it seems like mine is really low. I'm using TurboTax freedom since I make 30k. I'm finishing up with it and it's telling me that I'm getting back $195 from federal and $20 from state. Isn't that really low? It seems like I got that much last year when I had been working at this job for barely a month. For reference, I'm renting from my friend who owns a condo, I'm not making any car payments, I'm single and have no dependents, and I'm not making student loan payments (I give my parents money since it's simpler for them to just keep making the payments). No debt or anything. My federal income withholding was $1800, $1000 for social security, and $350 for medicare. Unfortunately those refunds sound about right for the amount of withholding you have. Check how you filled out your W-4 when you started working for your company. I'm betting you put Single/1 which is why you ended up almost breaking even. If you want a larger refund next year, change it to Single/0, but of course you'll get less in each paycheck. It's really a question of, do you want the money now or later. One thing to check though, are you claiming yourself or are your parents claiming you? If you're claiming yourself you can still take the student loan interest deduction even though they're paying for the loan as long as the loan is in your name.
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Feb 15, 2013 19:54
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Epi Lepi posted:Unfortunately those refunds sound about right for the amount of withholding you have. Check how you filled out your W-4 when you started working for your company. I'm betting you put Single/1 which is why you ended up almost breaking even. If you want a larger refund next year, change it to Single/0, but of course you'll get less in each paycheck. It's really a question of, do you want the money now or later. Ahh, I see. I'm a money hoarder so it doesn't make much difference to me whether I get it spread out or all at once, but it seemed strange to hear about people in similar situations getting way bigger refunds. I am claiming myself, though, so I'll go back and get that in. Thanks! edit: The student loan interest bumped it up to $570/$170! Thanks a lot, Epi! It didn't occur to me that the deduction would apply to the person whose name it's under, not the person making the payments. Zenzirouj fucked around with this message at 20:18 on Feb 15, 2013 |
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Feb 15, 2013 19:59
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skipdogg posted:A tax professional isn't going to do much for you honestly. Maybe find a few deductions you might have missed offsetting a bit of the money. That was the deal with the tax credit when you took it. Pay it back over 15 years, or when you leave the house. You're basically hosed. Thanks for the info. That's what I was gathering. Man, I wish we had waited just 29 days to close on that house... I can't believe the rules are that different between 2008 and 2009 for the credit. I guess we'll start working on a money strategy for the $4500 hit we're going to take in a couple of months.
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Feb 16, 2013 00:16
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I have taxes due to Federal and State governments this year. How do I send them money? Is it like an automatic transfer from my checking account when I file? Or do I just file my taxes and then send them a check in the mail? edit: I should have mentioned I am using TurboTax 2012 desktop edition. Woodsy Owl fucked around with this message at 06:54 on Feb 16, 2013 |
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Feb 16, 2013 04:50
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Woodsy Owl posted:I have taxes due to Federal and State governments this year. How do I send them money? Is it like an automatic transfer from my checking account when I file? Or do I just file my taxes and then send them a check in the mail? You should be able to elect somewhere on the returns themselves the method of payment.
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Feb 16, 2013 05:57
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I purchased a single family home as an investment property in 2011. I very thoroughly renovated it this past year and only had it rented for 5 months so lots of expenses but not much income. Is there a way to defer deductions in a situation like this for later years in which I'll have more money coming in from the property?
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Feb 16, 2013 07:38
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dwoloz posted:I purchased a single family home as an investment property in 2011. I very thoroughly renovated it this past year and only had it rented for 5 months so lots of expenses but not much income. Is there a way to defer deductions in a situation like this for later years in which I'll have more money coming in from the property? Depending on the renovations you should be capitalizing and depreciating those renovations. Not expensing them.
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Feb 16, 2013 13:23
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Admiral101 posted:Depending on the renovations you should be capitalizing and depreciating those renovations. Not expensing them. About half are improvements (depreciated) and half are repairs (deduction) dwoloz fucked around with this message at 19:18 on Feb 16, 2013 |
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Feb 16, 2013 19:05
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dwoloz posted:About half are improvements (depreciated) and half are repairs (deduction) The repairs are more than likely not current deductions. If you bought a home in good condition, and over time things deteriorated and needed repairs, that would probably be a current expense. If you bought an investment home in bad shape to begin with and then repaired it do a "better" standard, that would be capitalized. The IRS has issued new temporary regs on this, http://www.irs.gov/irb/2012-14_IRB/ar05.html
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Feb 16, 2013 20:23
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AbbiTheDog posted:The repairs are more than likely not current deductions. Appreciate the input, thanks (this stuff is mostly over my head)
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Feb 16, 2013 22:17
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Hi, question for you all: I sold some RSUs in 2012 and am wondering if brokers (in this case Schwab) are required to return 1099Bs. I understand that brokers may not send anything when stocks vest, but I'm wondering if they are required to send 1099s when you actually sell.
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Feb 17, 2013 01:20
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dwoloz posted:I purchased a single family home as an investment property in 2011. I very thoroughly renovated it this past year and only had it rented for 5 months so lots of expenses but not much income. Is there a way to defer deductions in a situation like this for later years in which I'll have more money coming in from the property? Also, I think you get up to $25k in losses applied against total income from a rental property as long as you were "actively participated" in managing it. "Actively participated" is a fairly low bar as well, as long as the property management company called you to get permission to spend money on the rental it counts.
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Feb 17, 2013 02:47
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dwoloz posted:Appreciate the input, thanks (this stuff is mostly over my head) The 263(a) regulations are over most peoples' heads, which is why they're not required to be followed until tax year 2014 (and will likely never actually be implemented because the regs are absolutely retarded).
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Feb 17, 2013 03:19
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Can I go ahead and file my federal return even while waiting for a W-2C which only amends my State information? I mean it is a simple 1040ez return that I want to e-file and will not change at all with the W-2C. I asked earlier if the federal and state things didn't matter (and was told the feds don't care) but I just wanted to make sure that the W-2C form won't kick things back or trigger something even if the federal values match.
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Feb 17, 2013 19:47
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Admiral101 posted:The 263(a) regulations are over most peoples' heads, which is why they're not required to be followed until tax year 2014 (and will likely never actually be implemented because the regs are absolutely retarded). Retarded or not, it's easy to see where an auditor is going to go. Plus the cap vs. exp rules have been around for a while, and in the OP's fact pattern, I'd be inclined to state the costs should be capitalized, since it sounds like they were incurred before the property was "available to rent" anyways.
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Feb 17, 2013 20:30
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sullat posted:Also, I think you get up to $25k in losses applied against total income from a rental property as long as you were "actively participated" in managing it. "Actively participated" is a fairly low bar as well, as long as the property management company called you to get permission to spend money on the rental it counts. You're close but not quite there, few other rules. PIGs and PALs! http://www.smartmoney.com/taxes/income/tax-rules-for-losses-on-rental-real-estate/
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Feb 17, 2013 20:31
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My brother-in-law lives with my wife and I and we provide nearly all his housing and food. We're planning on claiming his as a dependent. He's already filed his taxes and didn't check the "Can you be claimed as a dependent on someone else's return" box. My return has since been rejected unless I manually mail in the forms now. If I mail this in, will this affect his tax return at all? EDIT: I somehow missed the income requirements on dependents so I don't think he's even eligible, never mind. FCKGW fucked around with this message at 06:31 on Feb 18, 2013 |
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Feb 18, 2013 06:10
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Got a question in regards to NYC taxes. I've worked in NYC for 5 years now. This august 1st I moved from NJ to Brooklyn. Updated my info with hr and they started deducting NYC taxes this year. Makes sense so far, but can i file as a nj resident since I lived there for 7 months this year? And if so can in expect to get my NYC income withholdings refunded via my nys return for 2012?
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Feb 18, 2013 15:05
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Alright, international tax law questions. Anyone who didn't just run screaming from the room, thank you for not running screaming from the room. Preliminaries: I'm a U.S. citizen currently working in the republic of Ireland for an Irish employer. It's likely that I'll only be here medium-term; I intend to return to the U.S. in a few more years. I'm 30 years old. I take the Foreign Tax Credit. Without doing adequate homework, I signed up for my employer's retirement plan several months ago. It's an (Irish) tax-deferred retirement plan (similar to but not qualified as a 401k) which both I and my employer contribute to. I'm no longer contributing to this plan... but under Irish law I'm pretty much forbidden from withdrawing my contributions before age 65, unless I quit my job within the next year or so, which I really would rather not do. Its balance is approximately $8000. I stopped contributing when I found out -- pretty much by accident -- about the US tax laws relating to foreign trusts with U.S. owners. Near as I can tell, the retirement fund is considered a "foreign trust", and I'm considered a "U.S. owner" (based on my inexpert reading of section 677). I think this means I'm required to file form 3250 for every year the fund is in existence, and also (since the retirement plan itself isn't doing it) form 3250-A. That seems like a difficult thing to do, given that the information available to me is basically "as of such-and-such a month, your account balance is X euros". Questions: * Am I correct that I'll need to fill out forms 3250 and 3250-A for the next thirty-some years, just because the fund is out there waiting for me? * How onerous and problematic are these forms likely to be? * Is the year-over-year growth of the account taxable in the U.S.? * Will the eventual distributions from the account be taxable in the U.S.? * Is there anything else I should know or do? (Incidentally, I do know about FBAR requirements. Those seem more straightforward.) Sneftel fucked around with this message at 18:03 on Feb 18, 2013 |
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Feb 18, 2013 18:01
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I've got a rental that suffered a combination of bad luck and a bad tennant and left me with what was a $19k rebuilding project -- we basically rebuilt a bedroom and a bathroom of a 2br/2ba house from the floor joists up. I'd generally prefer to capitalize it, is that permissible?
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Feb 18, 2013 19:29
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wwb posted:I've got a rental that suffered a combination of bad luck and a bad tennant and left me with what was a $19k rebuilding project -- we basically rebuilt a bedroom and a bathroom of a 2br/2ba house from the floor joists up. I'd generally prefer to capitalize it, is that permissible? It's actually required, so you 're in luck. Sneftel posted:Alright, international tax law questions. Anyone who didn't just run screaming from the room, thank you for not running screaming from the room. Beyond the scope of this thread, I'm afraid (by which I mean I don't know the answer off the top of my head, and researching it would involve billable time) namelesstwo posted:Got a question in regards to NYC taxes. You'll need to file as a part year NYC resident and they will prorate NYC taxes based on the time you were living in the city. You will report your income earned while living in NJ to NJ like normal, also as a part year resident.
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Feb 18, 2013 19:56
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furushotakeru posted:It's actually required, so you 're in luck. Thanks!
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Feb 18, 2013 20:38
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Here's an odd situation: my wife worked as an editor for a publication based out of Slovenia. They paid her 1000 euros, of which they withheld 225 euros in Slovenian taxes. The remainder amounts to $984.71. They did not, and as far as I can tell, cannot issue her a W-2 or 1099. How do I report this? Do I say that she received 1000 euros in pay, and that she paid 225 euros in foreign taxes? Where does this info go? I'm telling her to quit this stupid job because the headache is not worth it. Related: does anyone know how to file for a Slovenian tax refund?
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Feb 18, 2013 21:41
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kaishek posted:Here's an odd situation: my wife worked as an editor for a publication based out of Slovenia. They paid her 1000 euros, of which they withheld 225 euros in Slovenian taxes. The remainder amounts to $984.71. They did not, and as far as I can tell, cannot issue her a W-2 or 1099. How do I report this? Do I say that she received 1000 euros in pay, and that she paid 225 euros in foreign taxes? Where does this info go? I'm telling her to quit this stupid job because the headache is not worth it. Yes the 1000 Euros is reportable as self employment income. You can claim a foreign tax credit for what was withheld to offset some of the US income tax. Use form 1116 to calculate the credit.
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Feb 18, 2013 22:04
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Still trying to figure out the answer to my prior question (whether certain deductions will be taken into account when determining MAGI for PPACA subsidies next year), and I came across this document, which included this table on p. 7: According to the table, retirement-plan contributions are "partially" factored in when determining PPACA. Does anyone know the limits, or how the partial deduction is specifically factored into MAGI?
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Feb 18, 2013 22:22
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Hi Furu, this is 3P again. The W2 State ID issue worked itself out - I got a replacement W2 with an ID number. I have additional question. Hopefully this is laughably simple! Religious donations (such as but not limited to Tithing and offerings for Jews and Christians, Zakat for Muslims, etceteras) can be listed on an itemized deduction. The religious institution probably sends out a notice at the end of the year saying that the member paid $X which is a tax-deductible contribution. On the piece of software I am using, it asks for the name of the institution given to, a description, the amount, as well as a date. These donations were made throughout the year, but they were tallied up into a final receipt that didn't list individual dates and amounts donated. Is it safe to simply list the last day of the year, or the last day that donation was given, probably a Friday, Saturday, or Sunday, in that field? I'm guessing that date is more for situations where someone gives multiple donations for the same organization over a year, but the organization gives separate reciepts for the donations, or gives reciepts when the donations are delivered. (Like if you drop a box of goods off at Goodwill or Sal-Val, they give you a reciept right on the spot.) My guess is that the date is probably not super-important.
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Feb 18, 2013 22:49
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Three-Phase posted:Hi Furu, this is 3P again. The W2 State ID issue worked itself out - I got a replacement W2 with an ID number. I have additional question. Hopefully this is laughably simple! Make sure you're not in the noncash (Form 8283) donation input section.
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Feb 18, 2013 23:51
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AbbiTheDog posted:Make sure you're not in the noncash (Form 8283) donation input section. I had to read that twice - I missed the "not" the first time. Gotcha.
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Feb 19, 2013 00:36
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Hi, all. I have a question concerning Short Term stock sales. I participate in a company Employee Stock Purchase Program. I sold stock without waiting one year, so the sale is considered Short Term. I've received my 1099-B and filled out Form 8949 and Form 1040 Schedule D. That amount is then entered on Line 13 of Form 1040. Now, my employer's W-2 Box 14 shows the Disqualifying Sale gain which is also included in my total taxable earnings in Box 1. My question... If the disqualified gain of the Short Term sale is already included in my W-2 taxable earnings, doesn't Line 13 add to that, effectively taxing me twice on the same money? What am I missing here? Edit: Ok, so the Disqualified gain reported by my employer is the 15% discount. But why is the difference between the basis and sale price lumped in with income instead of being taxed at a separate capital gains rate and added to my income tax at the end? Falciform fucked around with this message at 14:30 on Feb 19, 2013 |
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Feb 19, 2013 03:01
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Falciform posted:Hi, all. The amount on your W-2 gets added to the purchase price of the ESPP shares when calculating your basis, so you don't get taxed twice. If you think you are, then you are calculating your basis incorrectly.
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Feb 19, 2013 18:20
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furushotakeru, quick question! I do my parent's taxes and they acquired a rental property in 2012. The property was not placed in service for rental until 2013. I'm aware that (to my knowledge) all improvements will be added to the cost basis and depreciated starting in 2013. However, what do I do with the expenses from 2012? I know they cannot be deducted in 2012. Do I add them to the cost basis of the home, or otherwise depreciate them? Does 'expenses' include things like buying new towels or a shovel for the garden? Thanks.
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Feb 19, 2013 19:37
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