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ThirdPartyView posted:If property has already been transferred to the beneficiaries, they will be joint and severally liable (along with the executor) on the final Form 1040 tax liability (and any Form 706 estate tax liability if the unified credit doesn't eliminate any estate tax liability) under Section 6901, and the IRS will chase you for that liability (plus any and all applicable penalties and interest). Given past experiences representing clients in such situations before the IRS, I strongly suggest that, if the assets are still in the estate, that you discuss with the other beneficiaries (per state estate law) what asset(s) you're willing to liquidate in order pay that liability. There shouldn't be (Note: this is not actual tax advice, but an assumption based on your fact pattern) resulting gains on the liquidation since the property should have been stepped up to Fair Market Value at the time of death, so there shouldn't be any gains requiring an additional liability on a Form 1041 (estate income tax return). Ah! There's someone who deals with dead people owing the IRS money.
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Feb 22, 2014 01:55
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AbbiTheDog posted:Ah! There's someone who deals with dead people owing the IRS money. I've got a dead guy who is going through OVDI and will likely end up owing $1.2MMish in civil penalties 
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Feb 22, 2014 08:20
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ThirdPartyView posted:If property has already been transferred to the beneficiaries, they will be joint and severally liable (along with the executor) on the final Form 1040 tax liability (and any Form 706 estate tax liability if the unified credit doesn't eliminate any estate tax liability) under Section 6901, and the IRS will chase you for that liability (plus any and all applicable penalties and interest). Given past experiences representing clients in such situations before the IRS, I strongly suggest that, if the assets are still in the estate, that you discuss with the other beneficiaries (per state estate law) what asset(s) you're willing to liquidate in order pay that liability. There shouldn't be (Note: this is not actual tax advice, but an assumption based on your fact pattern) resulting gains on the liquidation since the property should have been stepped up to Fair Market Value at the time of death, so there shouldn't be any gains requiring an additional liability on a Form 1041 (estate income tax return). There is no such thing as "stepped up basis" upon death; there is however a basis adjustment upon death to the FMV on the date of death, and sometimes (but not always) it happens to be a step up  /pedantic scribe jones posted:I've got a dead guy who is going through OVDI and will likely end up owing $1.2MMish in civil penalties Tell the IRS they can pry it out of his cold dead hands  
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Feb 22, 2014 18:27
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When I filed my taxes I made a dumb mistake and didn't realize I had my 1098T available to me and just claimed tuition based on what my mother said she used to claim tuition in previous years, which was a terrible mistake. I received my 1098T a little while after I filed my taxes but I didn't bother amending because I figured it would be fine. I got my refund and I received basically nothing. So what do I do? Am I allowed to amend after I've received my refund? I did my taxes through Turbo Tax and when I go through and fill in the information using the 1098T for an amend it says I will totally get more money back, but... can I do this after I already recieved my refund? (I got like $27 compared to the estimated $1100+ ) Also am I even entitled to this refund? I'm technically a dependent because when I'm not in school I currently live with my mother, but I pay for my school stuff and work so...? I only ask because I keep seeing things saying that I might not be eligible for stuff if I'm a dependent but I've also heard that doesn't count for the tuition credit? And now I just feel dumb and confused.  EDIT: hahaha wait it says here I cannot take the tuition and fees deduction because I could be claimed as a dependent? Is there anyway for me to make it clear that I won't be? Because my mom has already filed her taxes and didn't claim me, or is this not how it works? GenericGirlName fucked around with this message at 19:41 on Feb 22, 2014 |
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Feb 22, 2014 19:38
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Do you think that we can do a disregarded entity for a CA LLC that is owned by a husband and wife? Basically, can a jointly owned LLC in a community property state be a Qualified Joint Venture, or do we need to file a 1065/568 for the LLC?
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Feb 22, 2014 19:39
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GenericGirlName posted:When I filed my taxes I made a dumb mistake and didn't realize I had my 1098T available to me and just claimed tuition based on what my mother said she used to claim tuition in previous years, which was a terrible mistake. I received my 1098T a little while after I filed my taxes but I didn't bother amending because I figured it would be fine. I got my refund and I received basically nothing. So what do I do? Am I allowed to amend after I've received my refund? I did my taxes through Turbo Tax and when I go through and fill in the information using the 1098T for an amend it says I will totally get more money back, but... can I do this after I already recieved my refund? (I got like $27 compared to the estimated $1100+ ) You can amend your taxes through TurboTax, but I don't think you can submit it online. You'll have to print it out and mail it to the IRS. You can claim the refund if your mom didn't claim you as a dependent. The IRS just doesn't want two people both claiming the dependent. So if your mom doesn't claim you as a dependent, you're good to go. If she did claim you as a dependent, then she would get the tuition tax credit. Someone feel free to correct me if I'm wrong.
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Feb 22, 2014 20:20
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furushotakeru posted:Do you think that we can do a disregarded entity for a CA LLC that is owned by a husband and wife? Basically, can a jointly owned LLC in a community property state be a Qualified Joint Venture, or do we need to file a 1065/568 for the LLC? Edit: -SNIP- I'm probably wrong actually; it looks like you can (if qualify, etc.): http://www.irs.gov/pub/irs-drop/rp-02-69.pdf SoftNum fucked around with this message at 20:45 on Feb 22, 2014 |
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Feb 22, 2014 20:24
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razz posted:You can amend your taxes through TurboTax, but I don't think you can submit it online. You'll have to print it out and mail it to the IRS. Thanks! The dependent thing confuses me. I shall amend! EDIT: Actually, now that I'm going through it on TurboTax (before printing it and sending it in) when I put in all my information from the 1098-T TurboTax says that I'm not only ineligible for the tax credit, but I now owe about 3k in federal and state tax combined. I'm not asking this as a TurboTax question, which I know isn't what this thread is for, but is there anyway a person who made $700 in 2013 and paid tuition could even owe taxes? GenericGirlName fucked around with this message at 21:01 on Feb 22, 2014 |
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Feb 22, 2014 20:27
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TenjouUtena posted:Edit: -SNIP- I'm probably wrong actually; it looks like you can (if qualify, etc.): http://www.irs.gov/pub/irs-drop/rp-02-69.pdf This is perfect, thanks. My google-fu didn't turn anything this authoritative for some reason.
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Feb 22, 2014 21:06
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furushotakeru posted:This is perfect, thanks. My google-fu didn't turn anything this authoritative for some reason. You can in community property states. Here in Oregon, however, we either need to do two Schedule C forms (one for taxpayer, one for spouse) or a Form 1065.
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Feb 22, 2014 23:18
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GenericGirlName posted:Thanks! The dependent thing confuses me. I shall amend! My guess is that you somehow input your 1098T numbers as income. Check your entries and see what it says.
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Feb 22, 2014 23:30
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I work for an electrical contractor and travel occasionally to do work for customers in different states. Am I supposed to file a state income tax return in each state that I work in for the income that I earn while I'm working there? My company only withholds in the state where I live regardless of where I'm working.
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Feb 22, 2014 23:48
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NancyPants posted:My guess is that you somehow input your 1098T numbers as income. Check your entries and see what it says. Going through it again it looks like based on my 1098T that I receive too much from PELL/TAP ... so now I have to pay taxes on it? I think I'm going to wait until I can get a chance to go home and talk to whoever my mom sees for filling taxes and figure out whatever they did that I'm not doing. Thanks for your help though!
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Feb 23, 2014 01:44
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potter posted:I work for an electrical contractor and travel occasionally to do work for customers in different states. Am I supposed to file a state income tax return in each state that I work in for the income that I earn while I'm working there? My company only withholds in the state where I live regardless of where I'm working. In my opinion it is your employer's responsibility to report and withhold other state taxes when needed. I would just go with what is on your W-2.
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Feb 23, 2014 07:36
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From the OP: "...in general if your situation is simple (ie: all your income is wages, you are not self employed, do not own property, and your relationships to family members are pretty clear cut) it is probably within your ability to [do your own taxes]." Is there an income at which a person so described should definitely seek professional advice even though their situation is simple? For the sake of making the question concrete, consider a person who rents / owns no property, whose income is largely wages, but who makes, say, >$300K pretax. (This is not me.)
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Feb 23, 2014 08:30
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andale posted:From the OP: "...in general if your situation is simple (ie: all your income is wages, you are not self employed, do not own property, and your relationships to family members are pretty clear cut) it is probably within your ability to [do your own taxes]." Even if it were you, there's no reason to downplay it. Good for them! The most common concern at that income is the Alternative Minimum Tax, or AMT. It's to make sure that high income earners actually pay taxes closer to the expectations of the brackets instead of a ton of deductions. For example, they report things like student loan interest and traditional IRA contributions, but they can't deduct them. Also, if there is a disparity between 2 wage earners in a household, the lower wage earner will likely owe taxes. So getting a pro would make sense, especially if you have to estimate taxes for the next year.
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Feb 23, 2014 13:41
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Also it is a point where some tax advice for long-term savings could be helpful. IRA contribution options are phased out and the 401k limit is too small, so you're going to be looking at taxable accounts or other things for retirement savings.
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Feb 23, 2014 13:45
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No matter who they pick, they should try to get someone with a flat fee rather than a percentage of assets.
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Feb 23, 2014 13:59
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I'm looking for recommendations on which version of Turbo tax to use. I'm a single guy who doesn't own a home and doesn’t have to file state taxes. I've been using Tax Slayer for the past few years, but this year I've made hundreds of stock transactions. I think my broker, Tradeking, can link up with Turbotax to fill out the schedule D automatically. The price tiers for Turbotax are confusing/deceptive. Which should I buy? Can any other programs link up with brokers?
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Feb 23, 2014 17:11
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Last year I was a government employee and made contributions to my TSP (government 401k plan). The amount contributed is reported on my W-2 in box 12 with code D (where code D is used for elective deferral contributions). Do I use this figure on line 32 of form 1040 (IRA deduction)? If not, should or could I use this figure elsewhere on my 1040? EDIT: If it matters 'Retirement Plan' in box 13 of my W-2 is checked. Forget this question, the instructions for line 32 state that: You cannot deduct elective deferrals to a 401(k) plan, 403(b) plan, section 457 plan, SIMPLE plan, or the federal Thrift Savings Plan. These amounts are not included as income in box 1 of your Form W-2. But you may be able to take the retirement savings contributions credit. See the instructions for line 50. Jose Cuervo fucked around with this message at 17:37 on Feb 23, 2014 |
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Feb 23, 2014 17:13
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My wife's starting a business but it hasn't produced any income yet; meanwhile she has a couple of part-time jobs. Can stuff she's bought for the business be used as deductibles on her income, or doesn't it count?
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Feb 23, 2014 20:49
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Unkempt posted:My wife's starting a business but it hasn't produced any income yet; meanwhile she has a couple of part-time jobs. Can stuff she's bought for the business be used as deductibles on her income, or doesn't it count? Yes, as long as she can demonstrate that she intends it to be a business (and that it doesn't fall under the hobby loss rules).
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Feb 23, 2014 21:06
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kaishek posted:Yes, as long as she can demonstrate that she intends it to be a business (and that it doesn't fall under the hobby loss rules). Should be OK, she's got an EIN and stuff. Thanks.
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Feb 23, 2014 21:51
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Unkempt posted:Should be OK, she's got an EIN and stuff. Thanks. Whoa whoa whoa - what kind of "stuff" are we talking? What business is this? You haven't given nearly enough info to determine if this is deductible in the 2013 tax year or not. Is this "stuff" inventory?
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Feb 23, 2014 22:01
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Just having an EIN does not mean you can sufficiently demonstrate a "business." You have to have a business plan, bookkeeping, a demonstrable profit motive. What kind of business is it? I highly suggest you consult a tax professional. Playing around with schedule C is no joke. The IRS does not like it when people use schedule C losses as a tax shelter for their regular income.
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Feb 23, 2014 22:33
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Holy poo poo, I finally found an accountant who seems to know what she's doing. My accountant last year apparently put poo poo on incorrect schedules, deducted things he wasn't allowed to, and generally just hosed up my tax filing something fierce. Nothing like a several-thousand-dollar surprise correction tax payment!
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Feb 24, 2014 01:54
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balancedbias, slap me silly, thanks!
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Feb 24, 2014 03:30
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Admiral101 posted:Whoa whoa whoa - what kind of "stuff" are we talking? What business is this? You haven't given nearly enough info to determine if this is deductible in the 2013 tax year or not. Is this "stuff" inventory? Sorry if I provided incomplete info - I read "starting" as "started" which clearly changes things re: 2013
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Feb 24, 2014 04:42
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The Massachusetts Form 1 on Line 3 under "Income", it says: quote:Wages, salaries, tips and other employee compensation (from all Forms W-2) Which boxes on the Forms W-2 is that referring to? Box 1, Box 16, or something else? A combination?
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Feb 24, 2014 15:34
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kefkafloyd posted:Just having an EIN does not mean you can sufficiently demonstrate a "business." You have to have a business plan, bookkeeping, a demonstrable profit motive. What kind of business is it? Ah, OK. It's going to be a small bed + breakfast; it hasn't started yet as we're still fixing up the house and getting it up to code. The 'stuff' consists of already bought hotel-quality beds + mattresses, crockery, that kind of thing, plus work + materials on the house for the aforesaid 'getting up to code' (mainly electrical work and handrails for stairs). Income is going to be 0 for this year as we haven't had any guests; expenses are going to be the above. The question is, can we use these expenses as deductibles anywhere?
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Feb 24, 2014 15:58
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I have a fairly general question. For the last two years my wife and I have increased our income to a reasonably respectable level (we live comfortably and own our own small family home with a mortgage). Along with this has come taxes. The last two years we both claim 0 dependents and contribute heavily (10-15%) to our 401ks. The last two years we've come out owing a few grand at tax time. Last year after this happened we increased our 401k contributions to try to lower our taxable income but this year we're back in the same boat with owing the tax man. Does anyone have any advice on how to either further lower our taxable incomes or to prepare better so that we aren't hit at end of year with additional taxes owed? Is investing the maximum allowable amount by the federal government to our 401k's in the hopes of lowering our taxable incomes a viable strategy? Thanks for any advice.
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Feb 24, 2014 17:36
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Defghanistan posted:I have a fairly general question. You could each contribute the max to your 401(k)s, but for planning ahead purposes you should be able to estimate your taxes owed at the end of the year and then just check your withholding on your paychecks (assuming you make W2 wages) - if the withholding times number of paychecks per year doesn't add up to your tax bill at the end of the year, ask your employer to increase your withholding. You'll have less per paycheck but less surprise come tax time.
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Feb 24, 2014 17:52
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Unkempt posted:Ah, OK. Typically until you get an occupancy permit from your local governmental authority the IRS will not consider you "in business" yet for rentals and all expenses should be capitalized and looked at in the year when you start trying to occupy the rooms. If, for example, you get an occupancy permit in November and you advertise like crazy, but nobody stays until January, then you could start expensing business items the first year even with no revenue, but that is it's own audit flag.
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Feb 24, 2014 20:44
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Jose Cuervo posted:Last year I was a government employee and made contributions to my TSP (government 401k plan). The amount contributed is reported on my W-2 in box 12 with code D (where code D is used for elective deferral contributions). Do I use this figure on line 32 of form 1040 (IRA deduction)? Follow up question to this. Is line 32 for people who have an IRA account outside of their work? I.e., if I chose to open a traditional IRA account that was separate from my work retirement account, would I then use line 32 to report the amounts put into that separate IRA account during the year?
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Feb 24, 2014 21:16
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I need help. My 2010 state tax return was recently triggered to be audited by the Massachusetts Department of Revenue because, according to them, I reported a different income on my federal taxes. The discrepancy is on one of my Forms W-2 that shows different figures in Boxes 1 (Wages, tips, and other compensation) and 16 (State wages, tips, etc.). From my online reading, Box 16 is the number that I'm supposed to report for state wages. I can't figure out why the two boxes show different numbers or if I even filed my taxes incorrectly. Is it incorrect to report Box 16 wages to the state? What are some reasons why those numbers would be different for a typical salaried job? I do not have the paper W-2 and have very limited access to the employer who issued this W-2, so I am hoping to understand and resolve this before making the effort. Thank you so much for the help.
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Feb 25, 2014 20:30
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albedoa posted:I need help. My 2010 state tax return was recently triggered to be audited by the Massachusetts Department of Revenue because, according to them, I reported a different income on my federal taxes. The discrepancy is on one of my Forms W-2 that shows different figures in Boxes 1 (Wages, tips, and other compensation) and 16 (State wages, tips, etc.). From my online reading, Box 16 is the number that I'm supposed to report for state wages. I am not familiar with MA specifically but it isn't that uncommon for state wages to differ from federal as some states do not recognize certain exclusions from taxable income. Like CA does not recognize HSA's as a tax advantaged account, so if there is a box one reduction for HSA contributions they are added back in for state tax purposes. Same goes for NJ and cafeteria plan deductions (pretax health insurance premiums and flexible spending accounts, etc.). Another reason could be if you worked in multiple states then box 16 should in theory only contain the wages you actually earned in MA (unless you worked in NY  ). The thing is, MA should be well aware of any of these types of factors, and I wouldn't think they would spend their time bugging you if this were the case.
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Feb 25, 2014 21:41
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furushotakeru posted:I am not familiar with MA specifically but it isn't that uncommon for state wages to differ from federal as some states do not recognize certain exclusions from taxable income. Like CA does not recognize HSA's as a tax advantaged account, so if there is a box one reduction for HSA contributions they are added back in for state tax purposes. Same goes for NJ and cafeteria plan deductions (pretax health insurance premiums and flexible spending accounts, etc.). Another reason could be if you worked in multiple states then box 16 should in theory only contain the wages you actually earned in MA (unless you worked in NY Not to mention they're coming up fast on the three year statute.
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Feb 25, 2014 23:38
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I suppose there is a possibility of it, but I just looked at both of my Mass W2s last year and the taxable income for state and federal were the exact same. I didn't have HSA but I did have pretax benefits and 401k contributions.
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Feb 26, 2014 04:17
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I'm probably just a huge idiot for never having claimed this before, but is it possible to claim credit for higher education expenses (based on the 1098-T form) for years other than last tax year? I think I may have missed out on that chance, but some extra money in return for education expenses would be nice.
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Feb 26, 2014 04:18
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Lawnie posted:I'm probably just a huge idiot for never having claimed this before, but is it possible to claim credit for higher education expenses (based on the 1098-T form) for years other than last tax year? I think I may have missed out on that chance, but some extra money in return for education expenses would be nice. Yes, assuming that you qualified educational expenses exceed your scholarships and grants for each year. You can still go back and amend 2010-2012 to take the education credits for which you qualify. (After April 15 you will no longer be able to amend 2010) Make sure you're using all your qualified expenses-most schools under-report the expenses on the 1098-T, and for the American Opportunity Credit you can use the cost of required books regardless of where you bought them.
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Feb 26, 2014 05:43
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