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I have a business that I haven't incorporated. I'd like to incorporate for 2015, but do I need to incorporate ASAP to make the rest of the year's income count as "incorporated business" income? or does all of my 2015 income count for my business regardless, as long as I incorporate this tax year?
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Apr 8, 2015 18:59
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Tyro posted:Kaishek - Awesome resource! quote:There are many criteria used in determining which state is a citizen’s domicile. One of the strongest determinants is prolonged physical presence, a standard that Foreign Service personnel frequently cannot meet because of overseas service requirements. In such cases, the states will make a determination of the individual’s income-tax status based on other factors, including where the individual has family ties, has been filing resident tax returns, is registered to vote, has a driver’s license, owns property, or where the person has bank accounts or other financial holdings. In the case of Foreign Service employees, the domicile might be the state from which the person joined the Service, where his or her home leave address is, or where he or she intends to return upon separation. If I legitimately intend to return home to Texas, will move out of my rental property in DC (and own no property in DC), sell my DC-registered car, adopt the mailing address of my parents in TX and use that address for home leave, will register to vote in Texas, and have family ties in TX (both mine and my wife's), have my checking accounts based in TX...but have a DC drivers license (that I could theoretically switch to a TX license before I move), have voted and paid taxes in DC for the past ~7 years, and will have a storage unit full of whatever stuff we leave behind in DC (although I could possibly avoid having the storage unit here by moving everything with me)...could I make the case that I have switched my domicile to Texas right before moving?
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Apr 8, 2015 22:44
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You could make the case and those are some compelling points. I'm far from an expert, and I don't think DC is as bad about chasing people down as VA is. If it was me, I would probably switch the driver's license, and send a certified letter to whatever local DC office handles taxation informing them of your intent to switch your domicile to TX as of XYZ date (and save a copy). But I don't know where the bar is as far as what needs to be done, it's a gray area.
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Apr 8, 2015 22:58
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scribe jones posted:Pretty much! Yes indeed.
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Apr 8, 2015 23:20
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All things being equal go ahead and form your business now.
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Apr 8, 2015 23:22
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edit: nevermind, figured out an answer to this.
Blinky2099 fucked around with this message at 00:58 on Apr 9, 2015 |
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Apr 9, 2015 00:16
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Tyro posted:You could make the case and those are some compelling points. I'm far from an expert, and I don't think DC is as bad about chasing people down as VA is. If it was me, I would probably switch the driver's license, and send a certified letter to whatever local DC office handles taxation informing them of your intent to switch your domicile to TX as of XYZ date (and save a copy). But I don't know where the bar is as far as what needs to be done, it's a gray area. I am always glad I don't live in VA. But the certified letter is a good idea. Thanks! I think we're going to try to avoid the storage unit left behind, so we will have literally nothing physically tying us to the District.
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Apr 9, 2015 01:34
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The company I work for was acquired this year. I owned about 2,000 shares that I purchased through an ESPP over the last couple years for between $11-18/share - 4 bundles of about 500 shares each. The company was purchased for around $35/share, paid in 48% cash 52% stock in the purchasing company. That's all reflected correctly in my e-trade account. So as I understand it, that should be all be taxable now, just like if I'd sold the stock myself. I've handled stock sales in previous years, but.. ..the 1099 I got from e-trade is really odd. The all bundles of stock purchased in the acquisition, the "cost" column is 0 and the proceeds are too low. For example: Description: <company name> Quantity sold: 428 Date Sold: <date of merger> Cost: $0.00 (what??) Proceeds: $6,479.92 Gain: $6,479.92 Additional Information: merger The sale was at around $35, so I'd expect the proceeds to be around 35x428=14980. The gain actually looks correct, because I paid about $7500 for these shares (my max ESPP contribution). Each line item that represents some bundle of stock transferred due to the merger looks the same way - small proceeds, 0 cost, normal looking gain. Is that a normal merger thing? When I starting putting all this stuff in to turbotax, it squawked at the 0 cost - I didn't want to gently caress it up so I went with a professional tax guy for the first time ever. This dude somehow came up with a cost basis of like 10k for each bundle (keep in mind I paid around $7500 for each) of merger-transferred shares, showing an overall capital gains LOSS. This is the only stock activity I have this year - stuff I bought for an average of $15 and had purchased from me at $35 - there's no way I have a loss. After some email back and forth, he "re-did the calculations" and came up with a gain of 6k. Still seems way off. I'm getting really close to telling the tax guy to go pound sand (he's also taken forever to get this far) but I'm not sure if I can prepare this myself. help me taxgoons 
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Apr 9, 2015 05:42
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Mexican Radio posted:The company I work for was acquired this year. I owned about 2,000 shares that I purchased through an ESPP over the last couple years for between $11-18/share - 4 bundles of about 500 shares each. The company was purchased for around $35/share, paid in 48% cash 52% stock in the purchasing company. That's all reflected correctly in my e-trade account. And wait for a taxgoon, too.
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Apr 9, 2015 07:05
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ThirdPartyView posted:We would need to know more details to figure out what's going on here, since if you only had wages for 2 weeks of work in NYS and aren't a NYS resident, you wouldn't have to apportion more than those 2 weeks worth of wages. Epi Lepi posted:Make sure you're filling out your part year resident information correctly on whatever tax software you're using. scribe jones posted:Did you get a W-2? If so, whoever issued it probably just put the entire amount of your wages in the NY state income box, rather than actually filling it out correctly. You'll have to calculate your actual NYS income and report that amount instead. I did not earn any wages in NYS, but they consider me a resident despite living overseas. I own one piece of rental property there, which makes for a small portion of my US-based income (most was in stock market capital gains). I have not lived in NYS for almost 3 years. I have family in Florida; should I established "residency" there so I only have to pay NYS taxes on the rental income in the future? This is absurd. Also: My 2013 Federal tax liability was $0 but in 2014 it is $xxxx and I did not make any estimated payments. My reading indicates that I am not liable for any penalties or interest in this case, but for 2015 I should make estimated payments of $xxxx to cover me no matter what. Is this accurate? edit: According to this: http://www.tax.ny.gov/pit/file/pit_definitions.htm I am NOT a NYS resident and should only be liable for rental income taxes. Can anyone please confirm or deny this? sleepy gary fucked around with this message at 14:05 on Apr 9, 2015 |
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Apr 9, 2015 13:54
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NYS requires the full amount of money you earned in the year be reported in the NYS amount box, even if that is incorrect. You can just report the correct figures and they will accept it.
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Apr 10, 2015 00:24
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Not sure if this qualifies as a tax question but I figure it's worth asking here first before another thread. Married, filing jointly, total income in the 80k range. I am selling some mutual funds that I've held since early 2012 in a normal brokerage account, two funds totaling 11k value presently. The shares were purchased in one fell swoop, so it wouldn't matter if I used FIFO. I want to sell them all - high expense ratio from bad financial advisor advice at the time. They're going to go into Vanguard 2040 funds. I have records of their purchase price and dates. What cost basis option should I use to keep my taxable income low? Average, FIFO, or SpecID? To be honest, I don't see a direct benefit given that they're all one purchase batch from one date.
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Apr 10, 2015 14:30
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If they were all purchased at the same price and your selling them all at the same price, any one of those 3 cost methods would result in the same taxable gains
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Apr 10, 2015 14:59
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There's some gains on them, enough that I want to make sure I'm doing things correctly. I guess that - and I'm just making sure here - that since there's only one purchase on each fund, it's going to be the same gain no matter what, right?
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Apr 10, 2015 15:07
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Think all the actual tax goons are busy doing people's taxes this week.
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Apr 10, 2015 15:13
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Did some further digging. Since it was purchased once and only once there's no real differentiation in cost basis (bases?) as far as I can tell, so FIFO it is.
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Apr 10, 2015 15:25
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MJP posted:Did some further digging. Since it was purchased once and only once there's no real differentiation in cost basis (bases?) as far as I can tell, so FIFO it is. Basis, and correct.
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Apr 10, 2015 15:46
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This is very small potatoes but I wanted to ask anyway. I'm dumb and sent out my taxes without signing them. Didn't realize it until the Feds sent it back, saying they weren't signed. Oh well, I figured, can't be helped now, I'll wait for the states (I worked in MA, live in RI) to get back to me. But then my check for RI came for its $14. And I'm still pretty confident I didn't sign it. Should I contact them to head off any possible problems? I can't imagine that would be a big problem, but you never know with taxes.
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Apr 11, 2015 00:33
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smackfu posted:Think all the actual tax goons are busy doing people's taxes this week. Wouldn't seem to be very reassuring for the advice that is being posted on here.
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Apr 11, 2015 03:00
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AbbiTheDog posted:Wouldn't seem to be very reassuring for the advice that is being posted on here. Well, some of us tax goons goof off here in random moments  . Can't really shed much light on the last couple of questions unfortunately since this is my first year so I'm still at the stage of asking about some of those things myself, my advanced capital gains class is this summer.Magnetic North posted:This is very small potatoes but I wanted to ask anyway. This on the other hand I'm comfortable saying if the states don't complain to you you're fine; it's on them to complain really, and it's entirely possible that it would cost them more to complain about it than $14 anyway, especially if you've lived at that RI address long enough that they know it's yours from other info. If it bothers you too much, you can submit a new signed copy with a note explaining what happened, I'm just concerned it could put you in some kind of "review" status that makes it take longer to get any refund back. Do submit a new federal return pronto if you haven't already of course.
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Apr 11, 2015 14:12
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Helping girlfriend do her taxes through Turbo Tax. Get everything in following prompts, she had a few months of freelance expenses but it seems like she falls well under the standard deduction (and doesn't have the records to itemize anyway). We finish up and she owes a fairly significant amount. About 20% of her income for the year came in on 1099s. In past years she claims to have had a similar W2 to 1099 income ratio and still managed to get a sizeable return. Can't seem to find a copy of her 2013 return right now so I can look and see if there was something done drastically different then (maybe she made less freelance income than expected, or maybe her accountant played some games with the deductions). Trying not to get accusatory here, but trying to retrace her steps to find what happened last year vs what happened with filing now. Not filing tonight, trying to find a copy of last year's filing to review, not sure what kind of help we can even get this close to the deadline. Did her accountant make crazy deductions last year that we're not making now? Is she misremembering the ratio of freelance to employee income she made last year? I mean, there really aren't that many things that can go wrong with Turbo Tax copying poo poo from W2's and 1099's and these are pretty much the only two possibilities I can think of for the drastic difference between 2013 and 2014 numbers.
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Apr 13, 2015 01:56
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Did she make sizable estimated payments in prior years vs. little to none this year?
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Apr 13, 2015 02:37
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ThirdPartyView posted:Did she make sizable estimated payments in prior years vs. little to none this year? She definitely made none this year, I don't know about previous years. I don't believe so, but I also think the income was much lower (hence wanting to see last year's return). This is the first year she isn't having everything filed by her dad's accountant, so she doesn't know a lot of the answers to questions I have. Nephzinho fucked around with this message at 02:47 on Apr 13, 2015 |
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Apr 13, 2015 02:44
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She can always get last year's return and income documents from the IRS website if you want to compare. Did sue change jobs or change her withholding for some reason?
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Apr 13, 2015 03:24
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sullat posted:She can always get last year's return and income documents from the IRS website if you want to compare. Did sue change jobs or change her withholding for some reason? We paused the conversation and she is collecting all of this information from previous years and we're reconvening tomorrow so I can figure out what the context for her past returns was. She changed jobs several times, had some withholdings, and used tax credit for health coverage. I'm really just thinking that she made more freelance income without anticipating the tax ramifications and am trying to break it gently.
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Apr 13, 2015 03:34
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Nephzinho posted:Helping girlfriend do her taxes through Turbo Tax. Get everything in following prompts, she had a few months of freelance expenses but it seems like she falls well under the standard deduction (and doesn't have the records to itemize anyway). We finish up and she owes a fairly significant amount. About 20% of her income for the year came in on 1099s. In past years she claims to have had a similar W2 to 1099 income ratio and still managed to get a sizeable return. Can't seem to find a copy of her 2013 return right now so I can look and see if there was something done drastically different then (maybe she made less freelance income than expected, or maybe her accountant played some games with the deductions). Trying not to get accusatory here, but trying to retrace her steps to find what happened last year vs what happened with filing now. Not filing tonight, trying to find a copy of last year's filing to review, not sure what kind of help we can even get this close to the deadline. Couple things here. First, if she had more W-2 earnings and less 1099 earnings in previous years and that flipped this year, then that is the reason she owes more. W-2's have withholding and aren't subject to Self Employment taxes, which 1099 income generally is. Second, if her freelance expenses are related to her 1099 income, then those belong on the Schedule C to offset that income. Expenses related to her W-2 income would be included in itemized deductions. If she has difficulty separating what expenses go with what income then go see an actual accountant and work through it.
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Apr 13, 2015 18:16
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Epi Lepi posted:Couple things here. First, if she had more W-2 earnings and less 1099 earnings in previous years and that flipped this year, then that is the reason she owes more. W-2's have withholding and aren't subject to Self Employment taxes, which 1099 income generally is. Looks like there was a flip and a lack of keeping good records on expenses. Thinking the best bet at this point is going to be filing for an extension and hiring an accountant next week - by the time you enter all of this poo poo into Turbo Tax it costs about as much anyway. She dug out last year's return and is bringing it by after work, will see what's up. Was trying to answer questions with 0 context yesterday, if things don't make sense after reviewing last year's numbers will punt it to the professionals. Nephzinho fucked around with this message at 19:10 on Apr 13, 2015 |
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Apr 13, 2015 19:08
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I am over the income limit to contribute directly to a ROTH IRA. In calendar year 2015 I made a non-deductible traditional IRA contribution of $5,500 (the maximum), for calendar year 2014. The next day, still in 2015, I back-door converted this to a ROTH IRA. In the meantime, the traditional IRA gained about $60 in value. I understand that I will need to pay tax on this gain, determined at the time of the conversion, but assume that I will report and pay for that on my 2015 tax return? The 2014 tax return will just show a $5,500 non deductible contribution to a traditional IRA. Does this sound right? Thanks. Leopold Stotch fucked around with this message at 21:46 on Apr 13, 2015 |
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Apr 13, 2015 21:44
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Nephzinho posted:We paused the conversation and she is collecting all of this information from previous years and we're reconvening tomorrow so I can figure out what the context for her past returns was. She changed jobs several times, had some withholdings, and used tax credit for health coverage. I'm really just thinking that she made more freelance income without anticipating the tax ramifications and am trying to break it gently. This could be part of it. The subsidy she received for the health care, she has to pay that back. Me and my Husband were used to huge returns, he got laid off in 2013 and was still unemployed at the beginning of last year, so we got Obamacare and a decent sized subsidy, just finished up our taxes last night (we pretty much finished them a month and a half ago, but being that we had to pay this year, we were in no hurry to file) and due to the subsidy, we ended up owing $2114, even with having a house and all the deductions that come with that. So my vote goes to that, or at least a huge portion of it is that, for her owing this year.
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Apr 14, 2015 06:35
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Got it all figured out last night. She made 7x more freelance income this year than last year, didn't put down her deductions for the freelance on Schedule C and only had taken the Standard Deduction, and used several months of credit for purchasing a plan through the market place. So after looking over last year's return and getting through some stuff it still is a bill, but its not as high as we initially thought, but it makes sense now. Thanks for the help, goons, already have adjusted the budget to pull a few bucks from each freelance payment for next year's payments (or may just file estimated).
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Apr 14, 2015 13:54
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I was doing a teaching program in France starting from October 2014 up until this past March. I opened a BNP Paribas bank account and was paid monthly (about 760 euros after French taxes were taken out) however the only documentation I ever received was a single pay stub dated in November 2014 and it's in French. I'm using TurboTax and I don't really see anywhere to put this information. I'm a poor and made well below 10k last year including the program and my job in the states. I'm not really sure what to do since my contacts in the program have been unresponsive over the last several weeks. 
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Apr 15, 2015 01:44
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Eleanor Pwnsevelt posted:I was doing a teaching program in France starting from October 2014 up until this past March. I opened a BNP Paribas bank account and was paid monthly (about 760 euros after French taxes were taken out) however the only documentation I ever received was a single pay stub dated in November 2014 and it's in French. I'm using TurboTax and I don't really see anywhere to put this information. I'm a poor and made well below 10k last year including the program and my job in the states. I'm not really sure what to do since my contacts in the program have been unresponsive over the last several weeks. I did the same program and I just didn't file taxes for that year. Of course, I didn't have any US income in that year so I wasn't entitled to any refund. Though now that I think of it, I did have a job the year I came back, and I don't remember what I did then... I'm guessing I didn't declare it.
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Apr 15, 2015 02:06
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Florida Betty posted:I did the same program and I just didn't file taxes for that year. Of course, I didn't have any US income in that year so I wasn't entitled to any refund. Though now that I think of it, I did have a job the year I came back, and I don't remember what I did then... I'm guessing I didn't declare it. I actually found a section in TurboTax that let me enter foreign earned income without a W-2 but luckily I don't think I was penalized because I'm such a poor.
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Apr 15, 2015 02:42
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I sent in my 1040EZ this morning. Unfortunately, I forgot to include a copy of each of my W2s. I only realized this when I was e-filing my state taxes tonight. I included all of the income and withholdings from each of my W2s, all of the information on the 1040EZ is correct. I know that companies send the IRS copies of their employees' W2s. Do I have to send in a copy of my W2s with some sort of form, or is everything going to work itself out? Bullet points: Included information from all W2s in 1040EZ Did not include paper copies of any W2s in envelope with 1040EZ Entitled to a refund
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Apr 16, 2015 03:31
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22 Eargesplitten posted:I sent in my 1040EZ this morning. Unfortunately, I forgot to include a copy of each of my W2s. I only realized this when I was e-filing my state taxes tonight. I included all of the income and withholdings from each of my W2s, all of the information on the 1040EZ is correct. I know that companies send the IRS copies of their employees' W2s. Do I have to send in a copy of my W2s with some sort of form, or is everything going to work itself out? The IRS may contact you with a "send us copies of the W-2s" message, just mail/fax them in to wherever they say if so. Otherwise don't stress over it, I would think the IRS won't outright reject a 1040EZ that matches info they themselves already have. In the unlikely event I'm mistaken about that, there's no actual penalty for late filing a return if you don't owe money anyway, so you'll just mail in the whole thing again with your W-2s worst case, they won't penalize you financially (hell, forgetting to attach the W-2 forms is probably only beaten by "forgot to sign return" in mistakes the IRS sees). EDIT: OK, on reflection I bet "forgot to make a check mark on the line to say you had health insurance all twelve months" will be the most common error this tax season actually. MadDogMike fucked around with this message at 04:18 on Apr 16, 2015 |
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Apr 16, 2015 04:14
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MadDogMike posted:The IRS may contact you with a "send us copies of the W-2s" message, just mail/fax them in to wherever they say if so. Otherwise don't stress over it, I would think the IRS won't outright reject a 1040EZ that matches info they themselves already have. In the unlikely event I'm mistaken about that, there's no actual penalty for late filing a return if you don't owe money anyway, so you'll just mail in the whole thing again with your W-2s worst case, they won't penalize you financially (hell, forgetting to attach the W-2 forms is probably only beaten by "forgot to sign return" in mistakes the IRS sees). Yeah, only someone that paper files can forget their w2 or forget to sign, but everyone can forget to check the box. Although the tax prep software should prompt you to deal with the health care answers, I would hope. Probably doesn't remind you about your advanced premium tax credits, though.
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Apr 16, 2015 04:39
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sullat posted:Yeah, only someone that paper files can forget their w2 or forget to sign, but everyone can forget to check the box. Although the tax prep software should prompt you to deal with the health care answers, I would hope. Probably doesn't remind you about your advanced premium tax credits, though.
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Apr 16, 2015 06:13
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Filed jointly for the first time this year. Filed in February. Got state back almost immediately, federal is still showing as processing. What's going on?
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Apr 16, 2015 14:59
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So my wife and I sold our home in 2014. According to the statement the unpaid property taxes of $1011.32 were paid by us on behalf of the borrower in the closing. However according to the county the entire tax bill was paid by the new owner. Am I allowed to deduct the $1011.32 on my state income taxes? I'm lost until the county gets back to me. Sephiroth_IRA fucked around with this message at 15:28 on Apr 16, 2015 |
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Apr 16, 2015 15:10
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I just tried contacting the op for services but their thread is locked and no reply. Any other tax goons want to help me out with taxes? I am willing to pay for being late and for tender loving care/advice because I am 1099 this year first time. PM me or I'll be watching this thread. My boss didn't give me a 1099 until the day before. I filed an extension yesterday although I didn't have any money to pay anything oops. Construction is a harsh mistress. But I don't want to mess with the feds and get burnt.
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Apr 16, 2015 17:54
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