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notlibber posted:Long term cap gains question. I have stock in my company. It is vested every quarter or so. Upon vesting the company sells a portion of the stock to pay for taxes taxed at income rate. Then the stock is mine sitting in an account and I hold on to it for a while. Lets say in that intervening period the stock goes up and ive held it for more than a year before selling. I now need to pay taxes on the gains of that stock but would it be long or short term? long. http://www.irs.gov/taxtopics/tc409.html
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Mar 6, 2014 00:51
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I've got a question about whether I qualify for the Retirement Savings Contributions Credit. I fit the criteria of being married and filing jointly and making less than the 59k, over 18 years old, wasn't a full-time student, and not a dependent. However, I work for a Children's hospital and their default retirement plan for us is a voluntary 401(a) plan with fidelity. Is the 401(a) plan OK for the credit? It wasn't a listed retirement plan for the credit on on the turbotax website I'm using. Also, my employer marked my deferrals on my W-2 in 12a as a code "D." Does that mean it counts as a 401(k) and I can take the credit? Thanks!
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Mar 6, 2014 08:08
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This may be a silly question, but if I don't make enough money to file but am on Medicaid, do I need to file anyway to keep my benefits? Or would I just need to file state taxes?
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Mar 6, 2014 21:56
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My parents claim me as a dependent, but i have my own independent income. Technically, I "pay tuition" through my university, but only in the sense that they give me money which is instantly taken away from me to pay tuition (through a fellowship). Now, I received a 1098-T form with a good chunk of money listed on it. My question is, can I use the amount on the 1098-T form as a deduction in my taxes? Do I need to give it to my parents for their own deductions? I'm just not sure, since my parents don't actually pay the tuition, but since I'm their dependent I don't know if I have to give them the 1098T information.
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Mar 7, 2014 23:06
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JosefStalinator posted:My question is, can I use the amount on the 1098-T form as a deduction in my taxes? Do I need to give it to my parents for their own deductions? Yes, only they can claim the tuition deduction or credit for you since you're a dependent and thus cannot claim it yourself; your tuition payments are constructively considered made by them so that they are able to claim the deduction or credit. Edit: From IRS.gov (for reference purposes): quote:Who can claim a dependent's expenses. If an exemption is allowed as a deduction for any person who claims the student as a dependent, all qualified education expenses of the student are treated as having been paid by that person. Therefore, only that person can claim an education credit for the student. If a student is not claimed as a dependent on another person's tax return, only the student can claim a credit. Horseshoe theory fucked around with this message at 00:52 on Mar 8, 2014 |
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Mar 8, 2014 00:47
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I received two regular 1098-E forms (one for my Stafford loans, one for my Grad Plus loans) and also a substitute 1098-E that doesn't make a distinction. The substitute 1098-E has a value of student loan interest that's much larger than the sum of the two 1098-E forms. Which should I actually use? This is the first time I've gotten this many 1098-E forms. Edit: I guess the max deduction is "only" $5K anyway, so it doesn't really matter. Blakkout fucked around with this message at 03:32 on Mar 8, 2014 |
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Mar 8, 2014 03:29
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Vertigo Ambrosia posted:This may be a silly question, but if I don't make enough money to file but am on Medicaid, do I need to file anyway to keep my benefits? Or would I just need to file state taxes? Even if you don't have to file, you should file if you've worked at all in order to get any withheld taxes back and claim the EITC.
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Mar 8, 2014 22:13
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Turbotax just calculated that I had a small underpayment penalty, even though my tax liability (the amount I had to pay to NYS -- got a refund federally) last year (and this year) was under $1000 (~$750). (I'm a non-freelance employee, almost all income W2 with appropriate withholdings, just a little extra income from investments) Is it likely/possible that Turbotax was wrong? And more importantly, is there any reason to believe I might need to pay quarterly estimated taxes next year? I really don't think I need to, based on my reading, but I am willing to pay the minimal underpayment fee TurboTax calculated if it's safer. Thank you for any thoughts/info! edit: Guy Axlerod posted:The rules for the underpayment penalty are pretty simple: http://www.tax.ny.gov/pit/file/interest_and_penalties.htm#Penalty_for_underpaying_your_estimated_tax Thanks. Seeing how simple it was on the official site helped me realize I definitely could figure it out on my own. Turbotax was right, but I don't think I need to do estimated taxes next year. Just need to ask my company to withhold extra if they give me a bonus. onefish fucked around with this message at 19:06 on Mar 9, 2014 |
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Mar 9, 2014 01:05
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If I amend my federal return for a previous year to claim more student loan interest, will I get in trouble if I don't amend my state return as well? The 1040x looks simple, the NY form not as much
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Mar 9, 2014 01:09
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onefish posted:Turbotax just calculated that I had a small underpayment penalty, even though my tax liability (the amount I had to pay to NYS -- got a refund federally) last year (and this year) was under $1000 (~$750). (I'm a non-freelance employee, almost all income W2 with appropriate withholdings, just a little extra income from investments) The rules for the underpayment penalty are pretty simple: http://www.tax.ny.gov/pit/file/interest_and_penalties.htm#Penalty_for_underpaying_your_estimated_tax Check it out yourself.
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Mar 9, 2014 14:22
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Currently working on my taxes on TurboTax and have a question about how to describe the reason I received my 1099-MISC form. Last year, I was contracted out by a local company for 20 days to act as a liaison between a group of foreigners and the company. My options for the 1099-MISC Form are: 1) I was self-employed (sole proprietor) 2) I was a freelancer or independent contractor 3) I received this money for something not related to my regular line of work. 4) I got this 1099-MISC for another reason I chose option 3 because it is something not related to my regular line of work and I do not plan on doing it again (Although I wouldn't mind doing it again if given the opportunity). Did I choose the right option? I noticed that if I go from one option to another my federal tax return varies by at least $600 or so. Also, when I preview my federal tax return, on line 12: Business income or (loss). Attach Schedule C or C-EZ it shows "-500". Why is that? I don't understand where that number is coming from.
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Mar 10, 2014 01:19
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Busy Bee posted:Currently working on my taxes on TurboTax and have a question about how to describe the reason I received my 1099-MISC form. You'd go #2 (insert Beavis laughing here). You might have screwed up your schedule C if it shows a loss, or gotten carried away with your expenses.
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Mar 10, 2014 15:36
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AbbiTheDog posted:You'd go #2 (insert Beavis laughing here). You might have screwed up your schedule C if it shows a loss, or gotten carried away with your expenses. May I ask why #2 instead of #3 and what the implications would be if I decide to go with #3? There is a $600+ tax refund difference when I choose #2 as opposed to #3 and I honestly feel that both options are applicable to my situation. Busy Bee fucked around with this message at 01:59 on Mar 11, 2014 |
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Mar 11, 2014 01:49
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Busy Bee posted:May I ask why #2 instead of #3 and what the implications would be if I decide to go with #3? There is a $600+ tax refund difference when I choose #2 as opposed to #3 and I honestly feel that both options are applicable to my situation. http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-Defined http://www.irs.gov/Individuals/Self-Employed quote:Who is Self-Employed? I have no idea what Intuit is looking for with #3, my only thought would be a misclassified employee - but that is #4 if you read the Intuit descriptions.
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Mar 11, 2014 03:10
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I think turbotax is trying to figure out if you are self employed. "A trade or business is generally an activity carried on for a livelihood or to make a profit and conducted with continuity and regularity." If not, then you don't have to pay self employment tax. Just a theory though... smackfu fucked around with this message at 04:12 on Mar 11, 2014 |
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Mar 11, 2014 04:09
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smackfu posted:I think turbotax is trying to figure out if you are self employed. I am still thinking it should be #2 for Busy Bee. I will recluse myself from the discussion and listen to the wiser tax folkz, as I only have a term of class and no experience in tax.
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Mar 11, 2014 04:23
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SiGmA_X posted:Because you were a contractor. #3 would be things like: 1) Winning money on a game show 2) Winning a prize from a radio show 3) Digging up buried gold in your backyard, and being dumb enough to tell everyone Although it was only for a month, OP would be hard pressed to argue he WASN'T conducting a consulting business, albeit for a short time. And considering the $600 swing, dividing that by the 15% SE tax shows what, a $4,000 1099? Also, if the 1099-MISC has the compensation in box 7, not box 3, the IRS computers will tag him for SE tax anyways and send him a nastygram in the fall if he doesn't charge himself SE tax.
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Mar 11, 2014 15:38
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AbbiTheDog posted:#3 would be things like: Thank you for your help. The 1099 is $5000 and my tax refund that I would originally claim from my W2 drops from $3900 to $3100 if I choose option #3. And with option #2 it drops down from $3900 to $2500. A $1400 difference seems ridiculous but I guess I'm in a different tax bracket due to my W2? Busy Bee fucked around with this message at 22:46 on Mar 11, 2014 |
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Mar 11, 2014 22:34
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I'm trying to help my girl with her taxes. She worked 3 jobs last year for <$15K and owes money to the Feds, which, to me, ain't right. I looked over her W-2's and found the smoking gun: only one job properly withheld her federal taxes and the others withheld <$5 total for over half her income. Does she have any recourse/can she submit mitigating factors to avoid the tax penalty? I mean, if she properly filed out her W-4's and her employers were like  , is that really her fault?
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Mar 12, 2014 18:27
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She should have looked at her paychecks. Is there an actual penalty that's owed or does she just have to pay her taxes now?
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Mar 12, 2014 19:55
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Yeah, there's a worksheet with the W-4 for calculating if you should have more withheld because of a spouse's job or having multiple jobs. We ran into this in our house and I just had to make sure it's corrected for next year.
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Mar 12, 2014 20:09
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BirdOfPlay posted:I'm trying to help my girl with her taxes. She worked 3 jobs last year for <$15K and owes money to the Feds, which, to me, ain't right. The withholding tables fall apart when you have multiple jobs piling into one return. No luck with the IRS, it's responsibility to check her paystubs to make sure the withholding is adequate.
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Mar 12, 2014 20:11
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Xandu posted:She should have looked at her paychecks. Is there an actual penalty that's owed or does she just have to pay her taxes now? I thought that if you owe taxes at the end of the year, there's a penalty for paying then on top of taxes you do owe. Is this not the case? Regarding paystubs, yeah, not much help now though. Still irks me that her employers hosed up her withholding. EDIT: AbbiTheDog posted:The withholding tables fall apart when you have multiple jobs piling into one return. No luck with the IRS, it's responsibility to check her paystubs to make sure the withholding is adequate. To be fair, it was her earliest jobs that screwed the pooch, and she only had the one job at a time. Her first job withheld $5, second job withheld nothing, and the last one accounts for the magority of her listed withholding. BirdOfPlay fucked around with this message at 20:21 on Mar 12, 2014 |
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Mar 12, 2014 20:13
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BirdOfPlay posted:Regarding paystubs, yeah, not much help now though. Still irks me that her employers hosed up her withholding. The same thing happened to my husband this year. He made about ~$6,000 at one job and they withheld about $100 total. I don't think it's the employer's fault though, he's the one that chose how much to withhold. It sucked but since we filed jointly it just meant we got a smaller tax return to make up for the couple hundred bucks that he owed.
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Mar 12, 2014 21:25
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Can someone explain what filing an extension will do? And also how to do it? I owe(according to Turbo Tax) ~3k worth of taxes. Last year I owed ~600. I'd like to forego paying the 3k till October so I can budget better for it, but I don't want to pay some sort of stiff fine. What do I do? How do I do it? Will Turbo Tax let me do it? The verbiage in TurboTax seemed confusing.
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Mar 12, 2014 23:11
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lord1234 posted:Can someone explain what filing an extension will do? And also how to do it? I owe(according to Turbo Tax) ~3k worth of taxes. Last year I owed ~600. I'd like to forego paying the 3k till October so I can budget better for it, but I don't want to pay some sort of stiff fine. An extension just gives you more time to file, not more time to pay. You still owe the $3K by 4/15. You can delay paying, if you want, but you will owe a penalty and interest.
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Mar 12, 2014 23:16
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I don't really understand how you can look at your iaystub and see Uncle Sam taking $0.00 and think that's perfectly absolutely correct.
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Mar 13, 2014 01:33
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One of my side gigs is tutoring a Korean client's kids over Skype. I receive payments via PayPal, but haven't given the service my tax ID number. How do I report this income? I'm also an employee of two companies unrelated to this gig (I work full time for one employer and part time for the second), and have already received my W-2s. I'll probably be using TurboTax to prepare my taxes, if this helps.
MEMRI fucked around with this message at 01:51 on Mar 13, 2014 |
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Mar 13, 2014 01:43
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Bisty Q. posted:An extension just gives you more time to file, not more time to pay. You still owe the $3K by 4/15. You can delay paying, if you want, but you will owe a penalty and interest. So, how much of a penalty/interest are we talking?
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Mar 13, 2014 02:23
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lord1234 posted:So, how much of a penalty/interest are we talking? The failure to pay penalty right now is .5% of the unpaid taxes per month, which means you'll owe ~$15/month in the penalty (I forget if the 'unpaid taxes' compounds the penalties in or not, however) and the interest rate is about 3.28% right now, so that's ~$100/month (although it compounds). I strongly suggest paying as much as you can to minimize the underpayment subject to interest and penalties, but that's really up to you.
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Mar 13, 2014 02:34
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Aren't you just supposed to pay up to last years taxes as estimated tax?
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Mar 13, 2014 03:15
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lord1234 posted:Aren't you just supposed to pay up to last years taxes as estimated tax? The lesser of 90% of the current year's tax liability (~$2,700 in the case above) or 100% of last year's tax liability, whichever is smaller. There's also potentially an underpayment of estimated tax penalty at play, but given the facts above, I don't know if it applies. Anyway, here is a worksheet to calculate that penalty (if it applies). Horseshoe theory fucked around with this message at 12:02 on Mar 13, 2014 |
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Mar 13, 2014 12:00
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e: Nevermind.
Karl Sharks fucked around with this message at 20:03 on Mar 13, 2014 |
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Mar 13, 2014 19:10
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Anyone know what the consequences are for an employer that fails to provide a w2 to an employee? Even after the employer receives the IRS letter and fails to send it.
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Mar 14, 2014 18:11
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sullat posted:Anyone know what the consequences are for an employer that fails to provide a w2 to an employee? Even after the employer receives the IRS letter and fails to send it. Section 6721(e) would apply.
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Mar 15, 2014 00:32
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MEMRI posted:One of my side gigs is tutoring a Korean client's kids over Skype. I receive payments via PayPal, but haven't given the service my tax ID number. How do I report this income? I'm also an employee of two companies unrelated to this gig (I work full time for one employer and part time for the second), and have already received my W-2s. I'll probably be using TurboTax to prepare my taxes, if this helps. Are you contracted through a service or do you have a direct relationship with the client? Where does the money come from? (i.e. does the client pay you directly?) Normally, if over $400, you would fill out Schedule C (Net Profit from Business) and Schedule SE (Self employment Tax) on this sort of income if someone were simply paying you regularly to do this. Since you mentioned a service, I'm surprised you don't get like a 1099 or something from them, but who knows. Note I think Turbo Tax wants like an extra $60 for access to the self employment forms.
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Mar 15, 2014 06:11
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ThirdPartyView posted:Section 6721(e) would apply. Cool, thanks, that answers the question nicely. Of course, when it comes to the employees, it's just a he said/he said situation, so there probably isn't any action taken from the IRS.
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Mar 16, 2014 01:37
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sullat posted:Cool, thanks, that answers the question nicely. Of course, when it comes to the employees, it's just a he said/he said situation, so there probably isn't any action taken from the IRS. The state might be a better option. They like to make sure they get their unemployment/workers comp funds, which employers pay but not on independent contractors.
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Mar 16, 2014 16:31
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I'm self-employed and having trouble figuring out my contribution limits for my solo 401k I set up. I can't contribute as an employee (already maxed out my 401k at work), but I can contribute as an employer up to 20% of...something? I have looked at the 560 form but I can't make heads or tails of what goes where since I haven't contributed anything yet and the worksheet wants me to put in my contributions which I don't know! My "total business income or loss" is $60,563. I want to max out the 401k. How much am I allowed to put in? edit: is this calculator good? http://www.401khelpcenter.com/401k/pension_online_solok_calculator.html It spits out 11,256 at me, which sounds about right.. moana fucked around with this message at 21:08 on Mar 17, 2014 |
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Mar 17, 2014 17:17
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My wife has shares in a family business that is an S-Corp, and every year they send us a Schedule K (that has an impact on our AGI I think). This is the first year where I am part owner of a C-Corp. Are there equivalent forms I should be expecting from the C-Corp? I was gifted the shares, if that makes any difference.
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Mar 18, 2014 23:13
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