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DEMAG posted:Question, I earned dividends in Q4 2013 but haven't received a check for the amount yet (probably won't for a couple weeks). I want to include those earning in Tax Year 2013. I've been told by family that I have 60 days to have a check issued to me and have it still count for income in 2013. Is that correct? gently caress two days of searching https://www.irs.gov to find it. For any other goons. Dividends that are declared by a mutual fund/regulated company/REI in Oct, Nov, or Dec but are paid out in January are posted as being issued on Dec 31st. Thus they will be claimed on the previous years tax return. The 60 days refers to the Feb 28th which is when my 2013 1099-DIV is due to me for my tax purposes.
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Dec 31, 2013 20:13
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If I'm in the 15% bracket and am expecting to owe taxes this year, not receive a refund, does it make sense for me to try to postmark a check to pay my wife's tuition of ~$1800 today (in 2013) vs. just waiting till next year and taking the Lifetime Learning Credit for it in 2014? Would it be a big difference (other than reducing my taxes this year vs. next?)
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Dec 31, 2013 20:45
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mishaq posted:I emailed you 11 days ago about some business and never got a reply Sorry, holidays plus a death in the family. I will find your email and get back to you right now.
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Dec 31, 2013 21:41
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furushotakeru posted:Sorry, holidays plus a death in the family. I will find your email and get back to you right now. Sorry to hear about that.
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Dec 31, 2013 23:14
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Looking forward to utilizing your professional services for another year. Quick question - My wife and I are looking into establishing a company selling products over the internet primarily marketed to a US audience. How the plan is currently forming will be to largely work through fulfillment centers and manufacturers. Essentially, something we can run the marketing/design/inventory orders work from anywhere while having the order fulfillment tail on semi-autopilot. Light and mobile is important because my job has us moving either states or countries every few years, and LLC protection is important because I am quite frankly scared to death of someone being able to come after my personal assets over a business matter. Which brings us to the tax question. If money goes into the LLC and all the business taxes are taken care of, can we as 50/50 owners of the LLC just let the money continue to sit in the company year to year and only pay ourselves out when we are living in a tax advantageous area? With the above in mind which states would you suggest looking at for incorporation? I know this may not be your area of expertise specifically but anyone in the thread who is knowledgeable may drop some recommendations. Edit - Sorry for your loss. be sure to take some time for yourself and your family this new year. Spaceguns fucked around with this message at 02:49 on Jan 1, 2014 |
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Jan 1, 2014 02:47
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Spaceguns posted:Looking forward to utilizing your professional services for another year. An LLC is a pass through entity. Net business income flows through to the partners' tax returns in the year it is earned, regardless of whether any profits are withdrawn from the company. I don't think there is really a way to do what you are proposing. Perhaps with a C-corporation you can somewhat control what state you pay personal income tax to, but instead you will be paying corporate income tax when the money is earned and then personal income tax when the money is withdrawn via dividend or salaries.
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Jan 2, 2014 18:55
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I've been directed here with an early Roth IRA withdrawal question. I have a Roth IRA I started contributing to last year (towards 2012 at first): 2012 contributions: $5000 2013: $400 (in a single contribution) I was married in 2013, and whether we file MFS or MFJ for 2013 is still up in the air. Don't ask why, it's a separate issue I'm already on. If we were to file MFS, that $400 would need to be retracted, as I'd no longer be eligible to contribute to a Roth IRA. I'm wondering if I have this contingency right: If the $400 bought 15.552 shares @ $25.72, and the value at market close on the day I withdrew the funds was $28.32/share, my gains would be ((15.552*$28.32)-$400)=$40.43. So, -I would enter the $40.43 as the taxable amount on an "IRA Distribution" (1040a line 11b) -I'd owe an additional 10% penalty of $4.04? And where on a 1040a would I add the early withdrawal penalty? I can't see anything that applies.
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Jan 2, 2014 23:01
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I have a Prudential Variable Appreciable Life insurance policy that I would like to surrender for the cash value. I am 29 and the policy was started in 1996 (it's about to turn 18). My understanding is that I would only need to pay taxes on this money if the amount I withdraw exceeds the "basis" of the policy, which I understand to be the amount that was paid in (I might be misunderstanding what "basis" means for life insurance policies here). If the cash value does not exceed the total amount paid in, does that mean I won't pay any taxes? The policy was actually opened for me (in my name) by a family member and I have never made any payments into it myself. Does this change my tax liability if I cash out the policy? Thanks, sorry if this isn't the best place for this question.
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Jan 2, 2014 23:27
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Remy Marathe posted:I've been directed here with an early Roth IRA withdrawal question. I have a Roth IRA I started contributing to last year (towards 2012 at first): You wouldn't be using a 1040a, you would file a 1040 like a grown up 
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Jan 3, 2014 00:56
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poo poo just got complicated
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Jan 3, 2014 02:07
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Alereon posted:I have a Prudential Variable Appreciable Life insurance policy that I would like to surrender for the cash value. I am 29 and the policy was started in 1996 (it's about to turn 18). My understanding is that I would only need to pay taxes on this money if the amount I withdraw exceeds the "basis" of the policy, which I understand to be the amount that was paid in (I might be misunderstanding what "basis" means for life insurance policies here). If the cash value does not exceed the total amount paid in, does that mean I won't pay any taxes? You're correct. The fact that your family paid the premiums shouldn't matter, since your basis in the policy is the same as their basis (i.e. the amount of cash paid in).
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Jan 3, 2014 02:45
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furushotakeru posted:An LLC is a pass through entity. Net business income flows through to the partners' tax returns in the year it is earned, regardless of whether any profits are withdrawn from the company. I don't think there is really a way to do what you are proposing. Perhaps with a C-corporation you can somewhat control what state you pay personal income tax to, but instead you will be paying corporate income tax when the money is earned and then personal income tax when the money is withdrawn via dividend or salaries. Wouldn't there also be the issue of the accumulated earnings tax (beyond the first $250,000 accumulated, assuming no good business purpose is offered) if a C-Corp election is made? Horseshoe theory fucked around with this message at 13:48 on Jan 3, 2014 |
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Jan 3, 2014 05:50
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So e-filing is delayed. Can we go ahead and mail in paper returns?
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Jan 3, 2014 09:59
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Small White Dragon posted:So e-filing is delayed. Can we go ahead and mail in paper returns?  What's up, taxes-done-by-the-2nd buddy?
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Jan 3, 2014 15:10
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Small White Dragon posted:So e-filing is delayed. Can we go ahead and mail in paper returns? Yes, but the IRS isn't processing anything until the end of the month.
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Jan 3, 2014 17:35
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ThirdPartyView posted:Wouldn't there also be the issue of the accumulated earnings tax (beyond the first $250,000 accumulated, assuming no good business purpose is offered) if a C-Corp election is made? Might be easier to do a pass-through entity and elect to pay the personal tax in your non-resident states at the LLC/S Corp level. You still get the LLC/S corp of your dreams, simplifies the multi-state filing.
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Jan 3, 2014 17:36
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Small White Dragon posted:So e-filing is delayed. Can we go ahead and mail in paper returns? Sure, once the IRS gets around to issuing the final versions of forms.
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Jan 3, 2014 19:00
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PhantomOfTheCopier posted:
This shoemaker's children do not go barefoot
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Jan 3, 2014 19:03
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furushotakeru posted:This shoemaker's children do not go barefoot I always do mine 4/15 at around 3:00. So there. 
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Jan 3, 2014 19:11
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I normally get it done by the 2nd, although this year I've got a 1098-T I have wait for so I probably couldn't file until early February, anyway.
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Jan 3, 2014 20:24
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AbbiTheDog posted:I always do mine 4/15 at around 3:00. So there. I think most preparers end up filing an extension but I always want to know how much I need to come up with in April so I don't have to worry about it.
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Jan 3, 2014 20:58
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furushotakeru posted:I think most preparers end up filing an extension but I always want to know how much I need to come up with in April so I don't have to worry about it. I did my projection last month. Come on, man. You could always start an off year-end S Corp/LLC if you want your K-1 forms done before year end.
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Jan 3, 2014 21:49
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PhantomOfTheCopier posted:
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Jan 4, 2014 02:46
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So taxes are suddenly complicated and I can't imagine that what I've come up with is right. Any help is HUGELY appreciated! I got married in 2008 when gay marriage was legal for a second in CA. With the removal of DOMA, I am planning to go back to 2010 to amend all of our tax returns. In the past we've had to file single for our federal, and married for our state. HUGE hassle. I'd always heard that married couples got tax breaks, but lo and behold, I've redone 1040s for 2010 and 2011, and came up with us still getting refunds, but WAY smaller refunds than we got as single people. For the record... 2010 - between the two of us, our federal refund was $3587. Redoing it as a couple, it's $2916. 2011 - refund WAS $3275. Redoing it, it looks like it would be $1459. I haven't even touched 2012, this was so discouraging. If I filed these bad boys we'd owe the IRS a crapload of money that we don't have...can't be right. I typically do our taxes each year and itemize (we are homeowners, pay student loans back, give lovely amounts to charity), and as far as I can tell - I've done it twice for each year - I haven't screwed anything up. Can you guys tell me if it's normal to pay more in taxes when filing married? I'm trying to figure out whether ornot I'm making some dumb mistakes and should go pay to get it done right. This bites, we were hoping for some kind of crazy tax windfall.
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Jan 4, 2014 05:24
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scunish posted:So taxes are suddenly complicated and I can't imagine that what I've come up with is right. Any help is HUGELY appreciated! I got married in 2008 when gay marriage was legal for a second in CA. With the removal of DOMA, I am planning to go back to 2010 to amend all of our tax returns. In the past we've had to file single for our federal, and married for our state. HUGE hassle. Unfortunately you're probably not making any mistakes. http://en.wikipedia.org/wiki/Marriage_penalty
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Jan 4, 2014 05:47
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What the hell? That's horrible. if we were renters, I guarantee we'd owe every year. That just can't be right - lots of married people rent and still get refunds at tax time, ugh.
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Jan 4, 2014 07:39
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scunish posted:What the hell? That's horrible. The marriage penalty isn't as prevalent as it's made out to be, but it does happen sometimes on account of the married tax brackets not being exactly double the single-filer tax brackets. If you were both near the top of your tax brackets while filing single, and it was the 25% bracket or higher, then yeah, you could have been bumped up a little by combining your incomes.
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Jan 4, 2014 08:14
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Looking at the link Epi Lepi posted, it seems I was in 25%, she was in 15%, and combined we're in 25%. So I guess that, plus losing her standard deduction, is gonna kill us. I was bummed about it tonight and she sweetly said, "do you want to get a divorce?" Hey, wait a minute!!
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Jan 4, 2014 08:24
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I'm looking at investing in the US stock market as a nonresident (I live in Australia). I'm an accountant and qualified lawyer here in Australia and ordinarily do my own tax return, however obviously if I were to have US holdings of securities I would need to consult a tax accountant or tax preparer in the US. My question is rather basic: how much would such a service cost? I imagine on the scale I'm investing it would not be very complex as I only would have dividends and the odd capital gain/loss if I were to sell.
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Jan 4, 2014 11:40
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scunish posted:Looking at the link Epi Lepi posted, it seems I was in 25%, she was in 15%, and combined we're in 25%. So I guess that, plus losing her standard deduction, is gonna kill us. I was bummed about it tonight and she sweetly said, "do you want to get a divorce?" Hey, wait a minute!! Well, the silver lining here is now there's no reason to actually go through the hassle of refiling your taxes, and you're up a couple thousand dollars on account of people being assholes. v  v
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Jan 4, 2014 12:25
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scunish posted:Looking at the link Epi Lepi posted, it seems I was in 25%, she was in 15%, and combined we're in 25%. So I guess that, plus losing her standard deduction, is gonna kill us. I was bummed about it tonight and she sweetly said, "do you want to get a divorce?" Hey, wait a minute!! So in the past, you itemized and she took the standard deduction? That makes sense, that's 5700 getting folded back int AGI, at 25%, equals about 1400, what you're seeing for 2011.
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Jan 4, 2014 14:14
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At what point do you face a penalty for underpayment of taxes? I've read in several places that it's if you owe more than 10% of your total tax amount, but I've also read that if you owe less than $1000, you also don't face an underpayment penalty. I'm going to owe just over 10% (roughly $415 and my total tax amount paid will be around $4140) because of a one-time stipend that I earned this year from which nothing was withheld (and I wasn't given an opportunity to have anything withheld from it). I figure I have nothing to be worried about right? Edit: Found a definitive answer - seems that anything under $1000 owed will not result in a penalty, and I should have done more research before posting. Sorry! Sleipnir fucked around with this message at 00:29 on Jan 5, 2014 |
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Jan 4, 2014 22:20
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I have a question about the child tax credit for 2013. I am filling single, but I had a tax exemption code 1, due to the fact that I have a child. My question is, if I only made 5500$ last year should I, or should I not expect a large tax refund. My daughter is 2 Years old and based off of H&R block online it says my refund is 2450.00$ am I doing something wrong? I know I shouldn't base my taxes of others that I know, but my friends who are servers take home a nice 6000.00$ and they make just as much as me. I am just confused on what to do. Should I file HOH or should I file single. If so, where do I go from here, or am I doing my taxes right, but it's just I am not getting as much money as I expected? My daughter lives with me at least 6 months or more during the year, and if there is any other information you need please let me know.
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Jan 5, 2014 01:36
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sullat posted:So in the past, you itemized and she took the standard deduction? That makes sense, that's 5700 getting folded back int AGI, at 25%, equals about 1400, what you're seeing for 2011. Yep, that's what we did. That is a huge, huge penalty just for getting married. drat you heteros, keep your expensive marriage traditions! We were counting on our typical amount for a refund this year to fix up the backyard. That won't be happening for another year!
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Jan 5, 2014 04:59
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Polishguerrilla posted:I have a question about the child tax credit for 2013. I am filling single, but I had a tax exemption code 1, due to the fact that I have a child. My question is, if I only made 5500$ last year should I, or should I not expect a large tax refund. My daughter is 2 Years old and based off of H&R block online it says my refund is 2450.00$ am I doing something wrong? I know I shouldn't base my taxes of others that I know, but my friends who are servers take home a nice 6000.00$ and they make just as much as me. I am just confused on what to do. Should I file HOH or should I file single. If so, where do I go from here, or am I doing my taxes right, but it's just I am not getting as much money as I expected? My daughter lives with me at least 6 months or more during the year, and if there is any other information you need please let me know. It sounds like you are eligible to file as head-of-household. I don't have all the facts, but I'm assuming that you are entitled to claim the exemption for your daughter (i.e. it wasn't assigned to someone else in a divorce decree). In that case, a $2450 refund seems like it's in the ballpark. I don't know your friends's situations so I can't explain why they (claim to) get a larger refund.
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Jan 5, 2014 05:03
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Is turbotax still the best tax preparation software?
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Jan 5, 2014 16:31
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I bought a brand-new Chevy Volt in 2013, which is eligible for the full amount of the federal and state (mine has one) non-refundable tax credit for purchasing an alternative vehicle. Using online software, I've prepared my taxes on my own since I was first required to file because they were simple, but it's my understanding that I'll now have to provide proof of purchase to obtain the tax credits. My AGI for 2013 will be slightly below $50,000. This is an estimate because I was paid for the last two months of the year by the US Navy as well as my primary income source (for which I do have the gross income). I can't verify my gross income for the Navy during that time yet, but based on my net income from them during that time, I don't anticipate the total being above $50,000. What will I have to provide as proof of original ownership in order to claim the tax credit? Will any additional forms for the credit require me to submit a paper application instead of efiling? Would it be easier to hire someone to prepare my taxes for me because of that extra complication? I'm currently not stationed anywhere (I leave in February although I'm already active duty), but it's my understanding many places offer cheap or free tax preparation services to military members. Any help is appreciated!
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Jan 5, 2014 19:46
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SuppressdPuberty93 posted:Is turbotax still the best tax preparation software? Sure, as long as you put the right information into the right places. Then again, any tax prep software is fine, with that caveat.
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Jan 6, 2014 18:53
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Millennial posted:I'm looking at investing in the US stock market as a nonresident (I live in Australia). I'm an accountant and qualified lawyer here in Australia and ordinarily do my own tax return, however obviously if I were to have US holdings of securities I would need to consult a tax accountant or tax preparer in the US. My question is rather basic: how much would such a service cost? I imagine on the scale I'm investing it would not be very complex as I only would have dividends and the odd capital gain/loss if I were to sell. Depends on the preparer, but I would assume at least $400-500 USD. The non resident form is more of a pain than the resident one, and there are tax treaty provisions to research and apply to make sure that you are not paying more than you should and that you are given proper credit on your Australian taxes for what you pay to the US. edit: actually I do not believe that you would be subject to US taxes on your investment income unless you are actually a resident of the US, which you are not. You will likely need to obtain a US tax ID number (ITIN) to open a US brokerage account, but you should be able to notify the account holder that you are not a US resident or citizen. The Aus-US tax treaty states that dividend and interest income is taxable to the country where the recipient lives. Does not seem to say anything about capital gains on first glance but I would assume there is something there that says they are treated the same way. Might be worth researching on your own (or hiring someone to look at your specific circumstances). furushotakeru fucked around with this message at 19:50 on Jan 6, 2014 |
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Jan 6, 2014 18:58
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Capital gains are sourced where the recipient lives (except real estate cause of FIRPTA). No withholding should be due. You would provide your payors with form W-8BEN and claim the benefits of the US-AUS tax treaty for reduced withholding on dividends and interest. Looking at the treaty, dividends should be subject to 15% withholding and interest to 10%. Still better than 30%. You should not be required to file a US tax return unless you invest in a passthrough entity (such as a partnership) earning business income in the US. edit: forgot to mention: some interest payments would qualify as portfolio interest and would not be subject to withholding, ditto to bank interest. PatMarshall fucked around with this message at 03:59 on Jan 7, 2014 |
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Jan 7, 2014 03:54
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