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potentiometer posted:Oh crap, its been awhile since ive filed with dependants so 1040A it is. Grandma had the exemption last year and ive let her know that i'm taking it this year so there shouldn't be any issues. If asked there won't be any problems showing residency on either one. Make sure you aren't filing as head of household though. They are your dependents, but they are not qualifying dependents for head of household purposes since they are not related to you.
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Feb 1, 2014 23:19
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I made about $15,000 in 2013 from my website. I haven't been paying any taxes on this income. Am I going to get hit with a lot of penalties (in addition to the normal ~30% taxes that I'll owe). This is the first year I've made more than a few hundred bucks from my website. Is there anything I should be doing to stay cool with the IRS in 2014?
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Feb 2, 2014 00:11
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So let's say I had no retirement plans open in 2013. If I open a Standard IRA today, and deposit $1000 into it, can I still deduct that from my 2013 income?
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Feb 2, 2014 00:44
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Meta Ridley posted:So let's say I had no retirement plans open in 2013. Yes, you can count IRA contributions toward 2013's tax year up until April 15, 2014.
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Feb 2, 2014 02:46
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AbbiTheDog posted:Have you read the new IRS regs with the 23 examples? Effective 2014 tax year but early application encouraged? Yes, and the Repair Regs were terrible to read. "What if the drainage ditch went down two inches then up a tenth of an inch? What if you perched that gargoyle at a 23 degree angle instead of 46 degrees? etc." Just terrible. 
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Feb 2, 2014 03:47
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Omits-Bagels posted:I made about $15,000 in 2013 from my website. I haven't been paying any taxes on this income. Am I going to get hit with a lot of penalties (in addition to the normal ~30% taxes that I'll owe). This is the first year I've made more than a few hundred bucks from my website. It is kind of a pain to figure the penalties by hand. There's a form for it but the IRS will also do it for you and send you a bill. Maybe Turbotax or whatnot will do it too. As I recall it's 5% APR on the underpaid amounts. Which will be less than 5% of the total underpaid amount because the underpayments happened at different times during the year. Rough guess $200 in your situation? If you had withholding from your main job that was higher than needed, the underpayment will be less. This year, pay estimated tax on the quarterly deadline dates. Form 1040-ES. Or increase your withholding from your W-2 job.
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Feb 2, 2014 07:02
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JohnnyPalace posted:Yes, you can count IRA contributions toward 2013's tax year up until April 15, 2014. Hmm So basically, last year I earned $29800/Single. For the Saver Credit, the cutoff is $29500. I got a new job at the end of last year and set up the 401K in January, but no IRA yet. If I -Open a standard IRA -Deposit $1000 into it by April 15th -Contribute $1000 to my 401k by April 15th would I qualify for the Saver's Credit for 10% of $2000? $1000 to IRA should put me at $28800 AGI, which puts me under the cutoff for the Saver Credit. Then $1000 toward IRA + $1000 toward 401(k) would mean a Saver Credit of 10% of $2000, correct? I guess I am wondering if the Saver's Credit counts 401k contributions through April 15th as well as IRA, or if they had to be contributed DURING 2013 (which I didn't contribute any).
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Feb 2, 2014 08:15
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slap me silly posted:It is kind of a pain to figure the penalties by hand. There's a form for it but the IRS will also do it for you and send you a bill. Maybe Turbotax or whatnot will do it too. As I recall it's 5% APR on the underpaid amounts. Which will be less than 5% of the total underpaid amount because the underpayments happened at different times during the year. Rough guess $200 in your situation? If you had withholding from your main job that was higher than needed, the underpayment will be less. Thanks, I'm a grad student so I don't have another job.
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Feb 2, 2014 15:37
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Meta Ridley posted:Hmm Since 401k contributions are deducted right out of your paychecks, there's really no way to elect to have them count towards the prior tax year. Still worth it to do it with IRAs, though. I'd put just enough in a traditional IRA to get under the AGI limit, and go Roth the rest of the way.
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Feb 2, 2014 17:58
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Like an idiot, I filed my return two weeks ago, and I forgot to include information from the W-2s for two minor jobs I held at the beginning of 2013. Is this as simple as filing a 1040X and its state counterpart?
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Feb 2, 2014 19:22
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ThirdPartyView posted:Yes, and the Repair Regs were terrible to read. "What if the drainage ditch went down two inches then up a tenth of an inch? What if you perched that gargoyle at a 23 degree angle instead of 46 degrees? etc." Just terrible. It was even worse if you spent the last 3 years reading every bulletin and revision on them
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Feb 3, 2014 03:46
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Donald Kimball posted:Like an idiot, I filed my return two weeks ago, and I forgot to include information from the W-2s for two minor jobs I held at the beginning of 2013. Is this as simple as filing a 1040X and its state counterpart? Yes
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Feb 3, 2014 08:59
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Earlier this year I received an e-mail saying some stocks were basically "buy them or lose them", so I sold them. The weird thing is I'm trying to figure out how to report it to the IRS and it makes no sense. Specifically I had the buyout price for the shares, and I sold them for X and received Y, but there's an unknown quantity Z that's missing. So say it sold for 2,000, I got 700 and the buying price was 700, there's 600 missing from this that isn't showing as taxes paid or fees or anything of that nature. On the 1099-B the only thing the trading company listed was the amount they sold for minus their fees. I don't want to lie to the IRS but I also don't want to be taxed on money I never got or worse if the missing sum was paid as taxes I don't want to be taxed on the same amount twice.
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Feb 3, 2014 17:04
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Mulloy posted:Earlier this year I received an e-mail saying some stocks were basically "buy them or lose them", so I sold them. The weird thing is I'm trying to figure out how to report it to the IRS and it makes no sense. The difference is withholding that is already shown on your W-2. As is the gain, probably. So for your example, if the strike price is $700 and the sale price is $2,000, then $1,300 is already included on box 1 of your W-2 (and you should see code V for $1,300 in box 12 of your W-2) so your basis for the capital gain reporting is $2,000 ($700 stock price, plus the $1,300 included in your W-2 so you don't pay tax twice).
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Feb 3, 2014 18:21
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furushotakeru posted:The difference is withholding that is already shown on your W-2. As is the gain, probably. So for your example, if the strike price is $700 and the sale price is $2,000, then $1,300 is already included on box 1 of your W-2 (and you should see code V for $1,300 in box 12 of your W-2) so your basis for the capital gain reporting is $2,000 ($700 stock price, plus the $1,300 included in your W-2 so you don't pay tax twice). Side note - you NEED to list the sale of the stock on your tax return with zero gain (usually it's a small loss due to the commission on the sale). Otherwise the IRS computers chase you down for missed reporting.
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Feb 3, 2014 18:24
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What the gently caress is this?quote:North Carolina did not conform to the increased expense deduction or increased investment limit for section 179 property but rather maintained the expense deduction and investment limit allowed under the Internal Revenue Code as of May 1, 2010. Any amount added to federal taxable income on your 2010, 2011, and 2012 returns may be deducted in five equal installments beginning with the 2011 North Carolina return. Enter 100% of the excess Section 179 amount added back to your 2010 North Carolina income and we will calculate this year's deduction. I don't have that form and I have no idea what that garbled tax language means.
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Feb 3, 2014 19:44
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the posted:What the gently caress is this? My state (Oregon) has disconnected from the IRS on several key issues, depreciation being one. Your state has done the same. You'll need to keep a separate depreciation schedule for North Carolina now. The language they stated is fairly clear (all things considered) and you're going to need to go back and start state depreciation schedules as if they had always been that way, and the change is going to be prorated over a five year period.
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Feb 3, 2014 21:09
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AbbiTheDog posted:Side note - you NEED to list the sale of the stock on your tax return with zero gain (usually it's a small loss due to the commission on the sale). Otherwise the IRS computers chase you down for missed reporting. I was so confused by this while I was looking at my 1099 since it was reporting the small loss due to fees. So essentially, W-2 reporting of the income and having the tax pre-withdrawn means that I have already paid tax on this capital gains? Do I have to pay AMT or anything?
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Feb 3, 2014 22:16
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Shadowhand00 posted:I was so confused by this while I was looking at my 1099 since it was reporting the small loss due to fees. So essentially, W-2 reporting of the income and having the tax pre-withdrawn means that I have already paid tax on this capital gains? Do I have to pay AMT or anything? You list the stock sale on Form 8949 (which carries to D). You'll need to check the boxes for the 8949 "type" (short, long, basis reported, not reported, etc). You'll have a small loss due to the commission, that's it for that part. On your W-2, box 12, should have a code W and a dollar amount. This is the gain on the exercise of the stock and has already been thrown on your box 1 total on the W-2, and had taxes withheld. So by reporting your W-2 info, that's how the taxes are figured on your personal tax returns. Amt is factored on your total income tax return in these kind of "cashless exercise" of options/stock (different story if you were awarded options or exercised options without selling the underlying security). For example, here in Oregon AMT kicks in at the federal level for married filers when their adjusted gross income (AGI) is around $180,000 - $550,000, so you'll need to prep your return and see what spits out. Form 6251 is the AMT form.
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Feb 3, 2014 22:59
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AbbiTheDog posted:You list the stock sale on Form 8949 (which carries to D). You'll need to check the boxes for the 8949 "type" (short, long, basis reported, not reported, etc). You'll have a small loss due to the commission, that's it for that part. Code W is for HSA contributions. Code V is for stock options sales 
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Feb 4, 2014 00:58
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furushotakeru posted:Code W is for HSA contributions. Code V is for stock options sales Oh shoot, am I off? I never prep anything anymore. Going off memory.
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Feb 4, 2014 01:43
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AbbiTheDog posted:Oh shoot, am I off? I never prep anything anymore. Nice humblebrag
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Feb 4, 2014 03:13
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My wife and I each only claimed 1 exemption on our W-2, bought a house this year, paid property tax and mortgage interest, paid student loan interest, and still somehow owe $1500 on our Federal taxes according to turbotax. How in the hell is that possible? The drat W2 form tells you to claim 1 if you have no dependents. Is this right, or should we go to a proper accountant and have them look this stuff over. I just can't comprehend this, as I have way more deductible expenses this year compared to last, have about the same income, and reduced myself from 3 exemptions to 1 on my W2. Last year, with 3 exemptions, I only owed $700 to the federal government. My head is spinning right now, I would have to pay my taxes with a credit card if this is correct.
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Feb 4, 2014 04:30
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LeftistMuslimObama posted:My wife and I each only claimed 1 exemption on our W-2, bought a house this year, paid property tax and mortgage interest, paid student loan interest, and still somehow owe $1500 on our Federal taxes according to turbotax. How in the hell is that possible? The drat W2 form tells you to claim 1 if you have no dependents. Is this right, or should we go to a proper accountant and have them look this stuff over. I just can't comprehend this, as I have way more deductible expenses this year compared to last, have about the same income, and reduced myself from 3 exemptions to 1 on my W2. Last year, with 3 exemptions, I only owed $700 to the federal government. My head is spinning right now, I would have to pay my taxes with a credit card if this is correct. That sounds weird. Perhaps one of you makes much more than the other? At can sometimes cause under withholding. Or sometimes your joint income puts you in a higher tax bracket than your individual earnings would indicate.
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Feb 4, 2014 05:02
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furushotakeru posted:That sounds weird. Perhaps one of you makes much more than the other? At can sometimes cause under withholding. Or sometimes your joint income puts you in a higher tax bracket than your individual earnings would indicate. She made 30k after you remove deposits to her pre-tax 401k, and I made 40k afer you remove deposits to my pre-tax 401k. I paid about 2600 in mortgage interest, 2400 in property tax, and we paid about 10k in student loan interest together. I understand that I'm no longer in the lowest tax bracket (this is the first year where that's the case, which is pretty exciting), but given that our tax system is progressive, I didn't think I had enough income over the next bracket to end up owing money. I'm going to have my mom's accountant re-do it, but if it turns out that this is how the numbers truly work out, I'm going to have to, for the second year in a row, lose my upcoming raise to reducing my withholding. I am one of the most pro-tax people there is, but I'm definitely starting to understand how some people in this country get so worked up about taxes. You can do everything exactly how the form says and still end up owing money. Looking at the filing jointly table, we should definitely only be in the 15% bracket, as we made less than 72k together, and are well below that (though not to the next bracket) whether you use our itemized deductions or the standard deduction. Doing some quick notepad match, our total federal liability should be $9600, and I had over $7000 withheld from my check alone for federal taxes. TurboTax has to have screwed up somewhere, right?
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Feb 4, 2014 07:29
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LeftistMuslimObama posted:She made 30k after you remove deposits to her pre-tax 401k, and I made 40k afer you remove deposits to my pre-tax 401k. I paid about 2600 in mortgage interest, 2400 in property tax, and we paid about 10k in student loan interest together. $7,000 of tax liability sounds about right with the numbers you're providing. $72,000 (W-2 federal taxable income, I'm assuming right?) Less: 12,200 Standard MFJ Deduction Less: 7,800 Standard 2 exemptions Less: 2,500 Student Loan Interest Equals: 49,500. 49,500's tax liability is roughly 7k. 72,000 is the total of your box 1 taxable income on your w-2s right?
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Feb 4, 2014 13:25
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Plugged in my taxes to estimate how much if any of a refund I would get. It actually looks like I will owe $460 for federal. I dont really have any deductions since I make over 80k, dont own a home not married, 401k just started since I work for a small company make too much for student loan interest to have any affect So I was looking of ways to reduce taxable income. It looks like I can open an ira and put $5000 in there. However when I entered that amount into tax program(as a test) it didn't affect the refund at all.
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Feb 4, 2014 15:21
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You make over $80k and you're upset about owing $460?
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Feb 4, 2014 15:28
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Does it matter how much I make? I have a great deal of student loans, paid almost $20k this year. So that doesnt leave me with much.
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Feb 4, 2014 15:30
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ROTH IRA does not reduce your taxable income. Get married.
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Feb 4, 2014 15:34
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silvergoose posted:ROTH IRA does not reduce your taxable income. Get married. Thanks, what about a traditional? IRA
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Feb 4, 2014 15:40
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DholmbladRU posted:Thanks, what about a traditional? IRA Should, yeah. That'll reduce your taxable income by the 0-5500 you put in.
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Feb 4, 2014 15:43
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silvergoose posted:Should, yeah. That'll reduce your taxable income by the 0-5500 you put in. Ah, I think the problem was I did not check 'user did not have company retirement account(or similar wording)'. That flips it and I get a refund. Should be putting into an IRA anyways. But including a traditional IRA looks to reduce my taxable income when entered into turbotax. Thanks! DholmbladRU fucked around with this message at 15:52 on Feb 4, 2014 |
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Feb 4, 2014 15:47
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DholmbladRU posted:Ah, I think the problem was I did not check 'user did not have company retirement account(or similar wording)'. That flips it and I get a refund. Should be putting into an IRA anyways. Bear in mind, you're just deferring taxes, you're not removing them. You do realize that, right? The pretax retirement dollars, you'll still have to pay taxes on them, just down the road when you're taking money out for retirement. Not saying you shouldn't be putting money away, you definitely should, just don't treat pretax retirement benefits as tax avoidance, just deferral. Plus, of course, your income should be lower so maybe you will pay less tax.
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Feb 4, 2014 15:50
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silvergoose posted:Bear in mind, you're just deferring taxes, you're not removing them. You do realize that, right? The pretax retirement dollars, you'll still have to pay taxes on them, just down the road when you're taking money out for retirement. Yeah with traditional IRA you will pay tax when that money is pulled out and it will be at the current tax rate that you are at?
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Feb 4, 2014 15:54
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DholmbladRU posted:Yeah with traditional IRA you will pay tax when that money is pulled out and it will be at the current tax rate that you are at? Yeah. Picture this: your marginal rate right now is probably 25%. So, the last 5500 of your income is being taxed at 25%, or about 1250 bucks. If you put that away into a trad IRA, you don't pay those taxes now, and let's say in 40 years you take out 20000 a year because that's how much you need to live on (random number, you'll need more because of inflation, but we're getting into who knows territory here, maybe they'll raise tax rates too). Then, your marginal rate is 15%, so instead you only have to pay 15% of that 5500, or about 800 bucks. So, does that $550 worth of taxes really matter, over the course of 40 years? Probably not. Save for retirement because you need money for retirement and compound returns, not because of tax reasons. But if you're saving for retirement *anyway*, may as well get some tax benefit for it too. As a note, ROTH IRA means you pay your tax rate now, but *nothing* on it or its gains when you take money out for retirement. So if the government raises tax rates to 30% for your bracket, say, then you'd be saving money that way! Not knowing which way it'll go means you should diversify, i.e. have some in traditional 401k or IRA, and some in ROTH IRA, which is generally the advice for the long term retirement thread which you should probably read all of. 
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Feb 4, 2014 16:09
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Thanks for the easy to follow explanation. I guess another benefit of contributing to a traditional IRA is the account gains interest on the potential tax that would have been paid had it been a ROTH. I also see one of the times you can withdrawe from an IRA without penalty is for firstime home buyers. Is this something that is beneficial to leverage or not? I probably will be purchasing a house in three years or so. DholmbladRU fucked around with this message at 16:25 on Feb 4, 2014 |
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Feb 4, 2014 16:23
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Rule of thumb: never, ever, super ever withdraw early from retirement to buy things. Save up more, leave the retirement stuff where it belongs.
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Feb 4, 2014 16:30
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LeftistMuslimObama posted:She made 30k after you remove deposits to her pre-tax 401k, and I made 40k afer you remove deposits to my pre-tax 401k. I paid about 2600 in mortgage interest, 2400 in property tax, and we paid about 10k in student loan interest together. Did you pay 10k in student loan interest, or 10k in student loan payments? I suppose it is possible, but that sounds high. Only the interest is deductible.
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Feb 4, 2014 16:52
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DholmbladRU fucked around with this message at 17:09 on Feb 4, 2014 |
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Feb 4, 2014 16:57
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