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kaishek posted:If I moved from DC to Texas mid-year, should I let DC know that I moved or just file a partial-year return? I've thought about sending a certified letter just to say "hey letting you know" because I'm now an expat living out of country. Partial year return should cover any "reporting" you need to do when you file it, just keep track of where you earned your income since you shouldn't pay DC tax on anything you didn't earn while working and/or living in DC.
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Nov 20, 2015 02:00
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So we did something dumb. We got married in August of 2013, and a few weeks later we realized that oh poo poo, the IRS considered us married for the entire year. So we scrambled to adjust our withholding for the last 5 paychecks so we didn't have to pay back too much...at the time we would have owed about $2,000, so not only would we have had to cut a check but we would have been penalized as well. That worked well. In January, we re-ran the numbers from the IRS's calculator and the W-4 forms and found that we should be withholding extra beyond what the normal allowances showed. So we did...boy did we ever. Now last week we re-ran the numbers to make sure we didn't have the same problem as last year...and holy poo poo we've overpaid by $2k so far, and if we don't make changes then we'll end up getting a refund of $5,000. So we overcorrected...by a lot. So will we get in trouble over this? I know there's an under-withholding penalty, but is there a penalty for over-withholding? I know technically we're doing the IRS a favor, but I suspect they don't like giving money back much. And follow-up: with 3 paychecks left, and the next one possibly too soon to take effect, is it worth changing anything? Obviously we're going to have to make changes in January anyhow, but it seems that the changes we would make would put us at $0 withheld for the next 3 checks...which makes me a little nervous because if we aren't fast enough, we'll start 2016 by under-withholding and have to do more math to figure out how to fix it.
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Nov 20, 2015 13:43
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You are worrying about nothing. Just get it fixed for next year. Get your taxes done early and get your money back.
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Nov 20, 2015 15:42
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That's kind of what I figured. I just wanted to make sure I wasn't going to get screwed out of a bunch of money. Thanks.
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Nov 20, 2015 18:52
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DaveSauce posted:So we did something dumb. You're allowed to withhold as much as you want, I'm surprised you're so paranoid. Haven't all of your friends and relatives salivated over their big refunds to you every year? I mean over withholding is pretty much giving the government an interest free loan. Who doesn't love interest free loans? The financially efficient choice is to try as hard as possible to break even so that money can work for you during the year, but you aren't being a dummy and won't get in trouble for over withholding.
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Nov 21, 2015 08:42
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Epi Lepi posted:You're allowed to withhold as much as you want, I'm surprised you're so paranoid. Haven't all of your friends and relatives salivated over their big refunds to you every year? I mean over withholding is pretty much giving the government an interest free loan. Who doesn't love interest free loans? Well that's what we were TRYING to do, is to withhold exactly as much as the IRS says is necessary. I feel stupid because that's a shitload of money that the IRS has so kindly been holding on to for us. I know withholding a little too much isn't a problem, I just didn't know if there was a line after which that the IRS would get pissy at having to cut such a large check.
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Nov 21, 2015 17:30
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DaveSauce posted:Well that's what we were TRYING to do, is to withhold exactly as much as the IRS says is necessary. I feel stupid because that's a shitload of money that the IRS has so kindly been holding on to for us. Refunds over a certain amount may get additional scrutiny, I don't know what the precise dollar amount is. In my state, refunds over $50,000 have to be approved manually, although this is not always a bar, as one woman used faked w-2s to get a refund of over $2 million dollars a few years ago. She would have gotten away with it if she hadn't lost her pre-paid debit card and had to get it re-issued. Twice.
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Nov 21, 2015 17:52
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I posted earlier about my weird contractor-but-not-really situation, which people itt seem to have figured out - I will report my income as "misc income." My question now is about the 1040-ES and PA state equivalent. I'm pretty sure I can figure out how to fill it out, my question is about the quarterly split in my particular case. Namely, this new job only started in late September, so my new, non-tax-withheld income has been entirely within Q4. In Q1-Q3, I had significantly lower income from which tax WAS withheld. In other words, in January I'm going to fill out 1040-ES, calculate my estimated tax for the whole year, subtract off (roughly) what was withheld already in Q1-Q3, and send in a check for whatever is left. But since the IRS doesn't know my new job didn't start til September, I'm worried that they'll wonder why I'm sending in X dollars now, instead of having sent X/4 in April, July, and October and sending X/4 now. And then accuse me of underpayment 
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Nov 23, 2015 19:20
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alnilam posted:I posted earlier about my weird contractor-but-not-really situation, which people itt seem to have figured out - I will report my income as "misc income." You're going to jail - flee to Mexico immediately!
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Nov 25, 2015 03:34
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Nephzinho posted:I'm okay with waiting, despite it being a significant amount of money tied up there isn't a pressing need for it for another 18 months. I just hate the idea that THEY are waiting on something that is never coming and can't even tell me that they have what they need and are processing it. Very frustrating experience that I feel could have been avoided. A week after talking through this with everyone I got a letter from the state letting me know that they have received my employer's letter and will respond within 60 days. So at least I know that something is moving. My CPA hasn't responded to email or call in almost a month, so either he is dead or just doesn't want to help fix this anymore. Looks like I'll be back in the market for a tax preparer next year.
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Nov 29, 2015 02:45
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Epi Lepi posted:The financially efficient choice is to try as hard as possible to break even so that money can work for you during the year, but you aren't being a dummy and won't get in trouble for over withholding. Slight correction, financially efficient is to withhold slightly more than actually needed to cover taxes on a W-2, because the extra helps cover the income tax on things like bank interest that don't have withholding done for them usually, and to cover minor windfalls and the like. The extra cushion is there to protect you, but since most of us don't wind up having tons of extra tax on things without withholding, most of us get refunds come tax time. alnilam posted:In other words, in January I'm going to fill out 1040-ES, calculate my estimated tax for the whole year, subtract off (roughly) what was withheld already in Q1-Q3, and send in a check for whatever is left. But since the IRS doesn't know my new job didn't start til September, I'm worried that they'll wonder why I'm sending in X dollars now, instead of having sent X/4 in April, July, and October and sending X/4 now. And then accuse me of underpayment The form you file in the event of underwithholding taxes is actually designed so you mention when specifically you earned your income vs. when you withhold and calculate the penalty accordingly. So it's built into things that you report when you actually earn the money. This only matters if you don't withhold enough to cover at least 90% of your taxes though, if you're at least that close, the IRS doesn't actually care if the whole thing came in a lump sum in December. However, see above regarding things like interest that don't have withholding, so don't get too cute with estimated payments lest you find yourself crossing that withholding penalty boundary unknowingly and when you withhold becomes an issue again. Nephzinho posted:A week after talking through this with everyone I got a letter from the state letting me know that they have received my employer's letter and will respond within 60 days. So at least I know that something is moving. My CPA hasn't responded to email or call in almost a month, so either he is dead or just doesn't want to help fix this anymore. Looks like I'll be back in the market for a tax preparer next year. Yeah, even with my screwed up scheduling since I'm part time I've never left a client in the lurch THAT long, especially if they call us looking for me. Even if he actually did the work he should drat well be able to make time to TELL you he did it when you ask.
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Dec 2, 2015 01:43
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MadDogMike posted:Yeah, even with my screwed up scheduling since I'm part time I've never left a client in the lurch THAT long, especially if they call us looking for me. Even if he actually did the work he should drat well be able to make time to TELL you he did it when you ask. He came highly recommended and I was willing to work through the mistake and the ensuing issues, but this just seems unprofessional and more of an insult than the lost opportunity of having a few thousand dollars for x months interest - kind of feeling like I need to write this up and copy/paste any time I see that recommendation in the future. Wonder if it's too late to dispute the credit card charge for failure to provide services. I still think there is one more action item with amending the original return for my former employer's revenue, but the cost of hiring someone else to do it probably will be greater than the return as it was only like 6 weeks' wages.
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Dec 2, 2015 03:31
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Quick question (Texas) Sister quit her job to go back to school full time. I want to claim her as a dependent for 2016 a year from now. Her income will be $0, she'll be living with me the entire time, I'll be supporting more than half (more like 100%), and she doesn't meet the Qualifying Child tests (too old). She meets all the tests for a Qualifying Relative, that's all there is to it right? Open enrollment for health insurance is conveniently starting around this time at my employer. Assuming I can claim her as a tax dependent, I should be able to cover her under my employer plan, yes/no? Our rep is out of the office until tomorrow so I thought I'd ask here.
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Dec 2, 2015 17:42
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I've had a difficult time finding answers to two questions I've had for a while now, and would really be appreciative if someone could help put my mind at ease. #1: I lived and worked outside of the United States between 2007 - 2012, never making more than $59k and without assets remaining in the US. Should I have been filing something during these years? Or (as I've been told) does the IRS not require paperwork if you make less than $60k a year? #2: I have become increasingly unconvinced that I have filed my 2013 taxes and, as an idiot, cannot find easy verification in my own records whether or not I have. How do I contact the IRS and ask them if I filed taxes for that year? Knowing the answers to these questions would go a long way toward helping me sleep better at night.
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Dec 2, 2015 22:22
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Correnth posted:#2: I have become increasingly unconvinced that I have filed my 2013 taxes and, as an idiot, cannot find easy verification in my own records whether or not I have. How do I contact the IRS and ask them if I filed taxes for that year? https://www.irs.gov/Individuals/Get-Transcript
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Dec 3, 2015 04:59
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I am trying to figure out how AMT meshes with the net investment income tax and a few other tax addons. What exactly do I compare AMT to in order to see if I owe it? For example, this year I will have the following taxes: code:
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Dec 4, 2015 00:04
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Correnth posted:#1: I lived and worked outside of the United States between 2007 - 2012, never making more than $59k and without assets remaining in the US. Should I have been filing something during these years? Or (as I've been told) does the IRS not require paperwork if you make less than $60k a year? As a US citizen you are obliged to pay tax on every dollar you earn, regardless of where you live or what your residency status is. To make this workable, you can claim tax credits for any foreign taxes paid or exempt up to $100,000 foreign earned income from US taxation. So you should always file taxes, even if you don't live in the US. Most likely, you will never end up owing anything, but at the very least, filing starts the clock on the statute of limitations so the IRS can't go back and ding you for something. If you never file, there is no limit on when they could come back and find fault with your tax situation for that year. Total Confusion fucked around with this message at 10:36 on Dec 4, 2015 |
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Dec 4, 2015 10:34
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Gold and a Pager posted:As a US citizen you are obliged to pay tax on every dollar you earn, regardless of where you live or what your residency status is. Thank you for the reply - Should I go back and file for those years retroactively now?
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Dec 4, 2015 16:34
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Droo posted:I am trying to figure out how AMT meshes with the net investment income tax and a few other tax addons. What exactly do I compare AMT to in order to see if I owe it? AMT has nothing to do with net investment income tax. It has no effect. The only tax you compare to AMT is your federal income tax (a).
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Dec 4, 2015 23:53
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I was digging through a fireproof box lately looking for my SS card and found some old savings bonds for me, dated about 1990. I took 4 of the 100 ones to a Chase bank, where they redeemed them for a little over $600. The teller mentioned something about paying taxes on them, but had no information otherwise and had no paperwork for me about it. So what am I looking at to pay?
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Dec 6, 2015 15:55
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The bank that cashed them should have taken down your info (or already had it, if it was your bank), and they'll mail you a 1099-INT early next year. At least that was my experience when I cashed some old savings bonds. Then you just enter it into turbotax or whatever you use just like any other 1099-int.
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Dec 6, 2015 16:18
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Correnth posted:Thank you for the reply - Should I go back and file for those years retroactively now? Yes. If you were only making $60,000 year an/or working in a country with higher taxes than the US, you won't owe anything.
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Dec 6, 2015 16:48
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Gold and a Pager posted:Yes. If you were only making $60,000 year an/or working in a country with higher taxes than the US, you won't owe anything. There may be FBAR/Form 8938 obligations due to foreign assets exceeding certain thresholds ($10,000 for FBAR, $50,000 for Form 8938), which may require you to go through the Offshore Voluntary Disclosure Program (to avoid/mitigate heavy penalties), though.
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Dec 6, 2015 21:45
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Admiral101 posted:AMT has nothing to do with net investment income tax. It has no effect. This looked like an accounting class question. Anyways, for AMT you really are concerned with Form 6251, so if you run that it would give you some insight.
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Dec 7, 2015 19:08
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For the deductibility of IRA contributions, does "covered by an employer plan" mean at any point in 2016, for most of 2016, or at the end of 2016? I will be leaving my employer effective 12/31/2015 but my final paycheck will be in January 2016 and contain a 401k contribution for 2016. After that, though, no more employer plan.
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Dec 12, 2015 09:15
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kaishek posted:For the deductibility of IRA contributions, does "covered by an employer plan" mean at any point in 2016, for most of 2016, or at the end of 2016? I will be leaving my employer effective 12/31/2015 but my final paycheck will be in January 2016 and contain a 401k contribution for 2016. After that, though, no more employer plan. Any point. If they check the box that says "Retirement plan" on your 2016 W-2, then you are disallowed from deducting any IRA contributions in 2016.
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Dec 12, 2015 18:39
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tenaciousduy posted:Quick question (Texas) Yep, Qualifying Relative is still a dependent, just doesn't count for certain tax purposes like EIC. quote:Open enrollment for health insurance is conveniently starting around this time at my employer. Assuming I can claim her as a tax dependent, I should be able to cover her under my employer plan, yes/no? Our rep is out of the office until tomorrow so I thought I'd ask here. That's up to your employer's plan. Tax-wise as long as she has insurance from somewhere you're fine, otherwise there is a penalty for anyone you claim on your return who is uninsured without certain reasons excusing them.
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Dec 12, 2015 18:40
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Correnth posted:Thank you for the reply - Should I go back and file for those years retroactively now? Yes, there's no penalty for late filing if you don't actually owe money, and I've seen people filing as far back as 2009 this year without any issue.
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Dec 12, 2015 19:25
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I filed my 2014 return in mid-October 2015 through TurboTax (I had previously filed for an extension). I just checked the "Where's my refund?" website (I'm not actually expecting a refund, but it's where Google pointed me at) and it says my Return is still being "Processed". Is this a normal amount of time? Should I bother being on hold with the IRS helpline for hours on end to check if something went wrong?
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Dec 14, 2015 18:17
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Ur Getting Fatter posted:I filed my 2014 return in mid-October 2015 through TurboTax (I had previously filed for an extension). Did turbotax tell you to expect anything back? Or that you owed anything? I don't get why you're checking "where's my refund " yet you're not expecting one 
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Dec 14, 2015 18:20
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alnilam posted:Did turbotax tell you to expect anything back? Or that you owed anything? I don't get why you're checking "where's my refund " yet you're not expecting one I'm not expecting a refund, I was just curious because last year I wasn't expecting one either and I still got a check for like 20 bucks a few weeks after filing, and this year I hadn't received anything. A Google search for "am I getting a refund?" turned up the "Where's my refund" site and when I put in my info the "Your return is still being processed" message popped up and I got curious since up to this point I thought it had already been processed. Edit: just to be extra clear, I don't care about a refund, I just want to know if I should be worried that my Tax Return is still being processed two monthas after filing.
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Dec 14, 2015 18:28
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So like... did turbo tax tell you your total balance was 0? No refund, none owed?
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Dec 14, 2015 18:31
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alnilam posted:So like... did turbo tax tell you your total balance was 0? No refund, none owed? Yeah, basically. Line 76a of my 1040 is blank, if that's what you're asking. I'm not an average case though. You can probably read my other posts in this thread for more detail, but I'm a US citizen but I don't live in the US (and never have), so I claim the Foreign Income Exclusion, but I do pay Self-Employment taxes. Up until this year (2015) I had never itemized my deductions (because it's not something you need to do where I live so I didn't keep records), so the past two years I have just claimed the standard deduction. 2013 and 2014 returns are basically identical (except I had slightly higher income in 2014).
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Dec 14, 2015 18:42
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Ah okay, can't help you then, sorry.
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Dec 14, 2015 18:48
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Have a question about the Obamacare penalty. info: Age 28, Married. Wife worked 2015 I had health insurance through my former Employer, and quit my job in July, losing my coverage then too. I held another job, but it was a contract job with no health insurance benefit, so I did not have health insurance from July 15th through end of 2015. My wife had health insurance for all of 2015 because she is under 26 and is covered through her mom's insurance. Normally, I would file taxes as Married Filing Jointly, however I am worried due to the Obamacare penalty. Should I be filing Married Filing Separate? If my income for the year was say 40K and my wife's income was say 30K, I am thinking I should file separately so the penalty is 2% of 40K ($800) instead of 2% of 70K ($1400). Does it work that way even though she was covered for the full year?
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Dec 16, 2015 22:19
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Meta Ridley posted:Have a question about the Obamacare penalty. It's 2% of your income above the filling threshold, so the numbers will be closer than that. Married filling separately the filling threshold is $4,000 so you'd subtract that 4k from your 40 before figuring the penalty. Married filling jointly the threshold is $20,600 so you'd subtract that from your combined 70 before figuring the penalty. The penalty is also capped at the average cost of a bronze plan from the marketplace, that may or may not affect your penalty. You can figure it using the worksheets in the instructions for form 8965 https://www.irs.gov/pub/irs-pdf/i8965.pdf. The instructions also tell you how to figure your household income for this purpose-it's not just AGI. I would strongly recommend that you prepare your return both jointly and separately so you can compare the final results before you decide which way to file. Filling separately instead of jointly can affect a lot on the return.
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Dec 17, 2015 15:17
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I got married in October, did we have to update our W4s to qualify to file as married for this year? From reading the form last year I thought I could just claim married, but my coworker thinks I need to update my W4.
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Dec 17, 2015 23:57
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Whatever your status on 12/31/2015 controls. So try not to get divorced by then. You should deffo update your w4 so you have the appropriate amount of withholding.
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Dec 18, 2015 02:03
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22 Eargesplitten posted:I got married in October, did we have to update our W4s to qualify to file as married for this year? From reading the form last year I thought I could just claim married, but my coworker thinks I need to update my W4. W4 just affects your withholding, it doesn't determine whether you can file as married.
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Dec 18, 2015 02:04
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Anyone know anything about tax deductions for bicycle maintenance? I use my bike as both my personal vehicle as well as do food delivery on it. I've been fastidiously saving all of my receipts for parts like tires and such. It may not be all that much $$, but it's not like I make that much to begin with, so every little bit helps. It seems to me that since I use my bike for work and that's where the vast majority of miles on it come from that it should be deductible. A cursory glance at the IRS site pretty much only talks about automobiles. I am not an independent contractor and will likely receive a W-2.
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Dec 18, 2015 02:24
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