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JohnnyPalace posted:Maybe this could be accomplished by claiming a ton of exemptions (like 20 or something) and listing the desired dollar amount as "additional withholding" on line 6 of the W4? What? Wouldn't you just put zero and then add any additional? That is what I did when married and we both made the same money and I had rental income. Your place of employment will withhold whatever you tell them to.
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Jan 25, 2016 19:02
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I have a couple tax questions Can I deduct post-tax 2015 HSA contributions up to the max? Can i deduct post-tax 2015 401k contributions up to the max? I get confused by these two since they're usually taken during the paycheck.
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Jan 26, 2016 04:22
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Question: Can you simply choose... Not to take a deduction? Not to claim/recognize a business expense? And since these typically lower your tax burden, I'm not sure if not deducting/claiming expenses is considered fraud or not, but things are now complicated due to healthcare and tax credits being tied to your income, and you're self-employed and still make poo poo income. Related: Person's doctor doesn't take medicare. Thanks! BeAuMaN fucked around with this message at 05:24 on Jan 26, 2016 |
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Jan 26, 2016 05:13
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BeAuMaN posted:Question: Can you simply choose... Bojanglesworth posted:It certainly doesn't get any more clear cut than this, especially for the IRS
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Jan 26, 2016 05:25
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SiGmA_X posted:You were looking for this post 2pg back: Thanks! Edit: I'll have to take a look at what the farm operator exclusion is, as said person does operate a small seed/experimental farm (on land they do not own/lease) as a contractor... though I'm having difficulty finding in the exception mentioned in that ruling. BeAuMaN fucked around with this message at 06:10 on Jan 26, 2016 |
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Jan 26, 2016 05:52
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I work in NJ (live in PA), and in Box 14 on my W-2 there is an 8-digit "DI PP#" whose identity and purpose I can't seem to find. There are some state disability/unemployment values in there whose homes I was able to find, but this DI PP# doesn't seem to be linked to them, or at least I don't know if it needs to be recorded anywhere. Advice? Also, Box 20 lists my Locality Name as the city where I live, but on the filing program I'm using my city isn't an option in their drop-down menu, but PA is. Should I pick "Pennsylvania Locality" or "Other Locality"? C-Euro fucked around with this message at 06:09 on Jan 26, 2016 |
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Jan 26, 2016 05:58
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Ok I have what might be a ridiculously specific question. So I'm trying to buy an apartment in NYC. In NYC we have these things called "HDFCs", or basically Co ops that are price stabilized. Now the problem with this is that they basically require cash in hand of the full purchase price, so hundreds of thousands of dollars. I found one of these places I liked and long story short I don't have hundreds of thousands of dollars. My mother wants to give me the money, but I in turn do not want her loving herself in taxes. I'm pretty sure she's taking it out of her IRA. So my question is is there any way to have her somehow gift me the money so I take the tax hit, or otherwise use the fact that the money is going towards home buying mitigate the tax cost?
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Jan 26, 2016 16:40
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I'm soon going to buy a house for the first time. The mortgage will be in my name only, but the title will likely include my fiancee too. My question here is about splitting mortgage payments. Suppose the monthly payment is $1200, for this example. If she pays $600 a month to me, and then I pay all $1200 to the lender, does the 600 count as taxable rent income for me? Does the answer to that question change if we're married? Alternately, does the lender care who the check(s) come from? Like, is there anything wrong with me and her each sending our own separate checks for $600 to the lender? Doing it that way, I'm guessing it wouldn't count as rent income for me?
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Jan 26, 2016 16:56
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I don't think you can put her on the title and not the mortgage.
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Jan 26, 2016 17:40
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No Butt Stuff posted:I don't think you can put her on the title and not the mortgage. Everyone has told me I can  Anyway don't worry about that part of the question, she doesn't even need to be on the title necessarily
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Jan 26, 2016 17:42
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I did not file 2013 and 2014 taxes. I was unable to get the proper 1098-E for 2013, but I got a statement from the servicer that shows what I think is the same info. Does the accountant need to send in an actual 1098-E when he files my taxes or would this suffice? Also, I'm trying to figure out if/how I might be able to establish FL residency without currently living there absolutely for the income tax benefits; husband is active duty military who is a FL resident stationed in NE, I am a NE resident currently. Anyone ever heard of this?
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Jan 26, 2016 18:30
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Does anyone feel like giving some advice for taking a hobby loss through a 1065?
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Jan 26, 2016 18:31
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NancyPants posted:I did not file 2013 and 2014 taxes. I was unable to get the proper 1098-E for 2013, but I got a statement from the servicer that shows what I think is the same info. Does the accountant need to send in an actual 1098-E when he files my taxes or would this suffice? Do you have a permanent address in FL? Own property? Do you work or earn income in FL? Drivers license? Car title? Voting registration? In short, anything whatsoever to make a claim of FL residency look like anything other than a fraudulent ploy to avoid income taxes?
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Jan 26, 2016 19:02
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alnilam posted:Everyone has told me I can You can, but I wouldn't do that until you actually get married if I were you, as there's no benefit to doing so and a huge potential complication if you break up and the fiance now has an ownership interest in your house.
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Jan 26, 2016 19:08
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NancyPants posted:Also, I'm trying to figure out if/how I might be able to establish FL residency without currently living there absolutely for the income tax benefits; husband is active duty military who is a FL resident stationed in NE, I am a NE resident currently. Anyone ever heard of this? Here are two links that should help you out: https://ttlc.intuit.com/questions/1901517-what-is-my-military-state-of-residence https://ttlc.intuit.com/questions/1901516-military-spouses-and-state-taxes It looks to me that as long as he has FL as his state of residence or can get it approved as his state of residence then it counts for you too.
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Jan 26, 2016 19:13
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Yawgmoft posted:Ok I have what might be a ridiculously specific question. There is a lifetime gift exemption that you can apply towards large gifts such as these. The tax implications of an IRA withdrawal depend upon several factors such as your mother's age, whether the contributions were pre or post tax, etc. There is a small exemption for early withdrawals for home purchases if it is your only home and it's your first purchase in two years, but that would not apply to gifted money and it is only $10,000.
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Jan 26, 2016 19:15
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Yawgmoft posted:Ok I have what might be a ridiculously specific question. Whether she gifts it to you or not is irrelevant on whether it's taxable for her. If she's withdrawing from a traditional IRA she will pay normal income taxes plus a 10% penalty if she is under 59 and 1/2 years old. If it's a ROTH IRA it's tax free as long as she is over 59 and 1/2. On top of that there is gift taxes to consider. Any individual can give any number of other individuals $14,000 per year and be exempt from gift taxes. Once you're over that amount per person you have to file a gift tax return. Your mother however is allowed to give you a loan of the amount you need as long as she charges you interest. An interest free loan would just be considered a gift to the IRS. She only has to charge you the minimum interest rate established by the IRS which you can figure out from the charts on this page: https://apps.irs.gov/app/picklist/list/federalRates.html I hope that helps.
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Jan 26, 2016 19:24
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BEHOLD: MY CAPE posted:You can, but I wouldn't do that until you actually get married if I were you, as there's no benefit to doing so and a huge potential complication if you break up and the fiance now has an ownership interest in your house. Okay granted, though we might be married before we close. My real question though is about the splitting of the monthly payment. Does her contribution count as taxable "income" to me? If so, is there a legitimate way to make it not taxable? Does getting married affect this?
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Jan 26, 2016 19:27
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Wisconsin won't allow me to e-file because I moved out of state and they don't let you e-file an Income Allocation Worksheet. Yay for snail mail, I guess.
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Jan 26, 2016 19:35
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alnilam posted:Okay granted, though we might be married before we close. It does, look at pub 415 I believe. I think it is 1040 schedule e that you fill out. You can probably make it a wash though depending on how you work out your expenses. Once you are married you shouldn't have to claim it at all. The other thought is the odds of getting audited are pretty low and a lot of people don't report this income even though technically they should. You can risk it if you feel like it. Also you have to charge rent at a fair rate, if you give a huge discount it starts getting into gift areas or something.
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Jan 26, 2016 19:37
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Epi Lepi posted:On top of that there is gift taxes to consider. Any individual can give any number of other individuals $14,000 per year and be exempt from gift taxes. Once you're over that amount per person you have to file a gift tax return. She will have to file a gift tax form but will most likely owe no additional gift tax. Each person has a $5.45 million lifetime exclusion which can either be eaten up when they are alive or when they are dead. So if she gives him $300k now: $14,000 of that is eaten up by the annual per person exclusion $286k is applied to her lifetime exclusion, leaving $5.164 million to go When she dies, she will still only have to pay estate tax on any amount of $5.164 million (assuming laws stay the same, and no other large gifts are made). So for the original question I think that the gift tax is probably not a factor (I assume most people with over $5.45 million per person would already kind of know how all this works and wouldn't be asking here) so it comes down to how much personal income tax she pays out of her IRA. OP, depending on your mom's situation there could be ways to minimize her tax hit but they generally all include spreading out the withdrawals over a few years.
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Jan 26, 2016 19:37
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BEHOLD: MY CAPE posted:Do you have a permanent address in FL? Own property? Do you work or earn income in FL? Drivers license? Car title? Voting registration? In short, anything whatsoever to make a claim of FL residency look like anything other than a fraudulent ploy to avoid income taxes? I should have clarified I don't qualify for residence based on any of the obvious ways and I don't need advice on how to lie about where I live, since I could do that on my own. Establishing official residency in a state where you don't currently live is pretty common for people who move due to military orders, since a lot of them understandably don't have vested interest in a state where they don't live and don't intend to return. Married couples are often considered the same legal entity, so it's not insane to think it might be allowable based on a spouse's residence and it would make filing my taxes a hell of a lot easier. Since specifics matter I was looking for someone who might have experience with this. If doing legal things in tax-advantaged ways is wrong, I don't wanna be right. e: Epi Lepi posted:Here are two links that should help you out: Thank you, that points me in the right direction at least. ee: According to MSRRA from 2009 it looks like the nonmilitary spouse must initially establish and then maintain residency, they can't just inherit via spouse. But that's a real answer! BonerGhost fucked around with this message at 19:54 on Jan 26, 2016 |
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Jan 26, 2016 19:38
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Thanks everyone for the advice. She's 65 and retired so that's not an issue, and we certainly don't have even close to 5 mil. I'll look into lifetime gift amounts.
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Jan 26, 2016 20:04
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This year I had considerable freelance income for the first time. I also work in two different states (NY full-time job, NJ freelancing from home) and would like to deduct some expenses related to the freelance job. Is it a terrible idea to try and do this through Turbo Tax? I'm willing to pay for an EA / accountant for some help this year, but I'm having a hard time finding one I'm comfortable with. Tried furushotakeru but he doesn't seem to be answering his email at the moment.
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Jan 26, 2016 21:12
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This is a pretty dumb question but hoping there's a quick answer: I earned twice as much as I did last year so I paid more in local and state taxes. As a result, rather than taking the standardized deduction, the tax software I'm using is recommending that I take the itemized deduction with the state and local taxes deducted since I can deduct over 2x. Is that right? I went from having a $500 refund to a $2000 refund (also have to adjust my withholding for next year).
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Jan 26, 2016 22:29
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Shadowhand00 posted:This is a pretty dumb question but hoping there's a quick answer: Well, if your itemized deductions are larger than your standard deduction then yes you should (and actually, must) itemize.
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Jan 26, 2016 22:49
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Last year I obtained a judgement against my landlord-neighbor in small claims court, as reimbursement for his half of the replacement of a derelict property line fence. He paid up, but also sent me a 1099-misc, with the judgement amount in box 7. First, I am not sure if the judgement qualifies as taxable income. IRS Pub 525 states: "To determine if settlement amounts you receive by compromise or judgment must be included in your income, you must consider the item that the settlement replaces." The judgement was to reimburse me for his half of the cost of the fence, plus court fees. I have netted nothing from it other than lost time, and I have the receipts to prove it, so I think this is non taxable income. Is this correct? Second, if it is non taxable income, how do I report it on my tax return? My fear is that if I ignore it, the IRS is going to think I am an independent contractor. Do I just have to wait for the letter?
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Jan 26, 2016 22:52
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spwrozek posted:It does, look at pub 415 I believe. I think it is 1040 schedule e that you fill out. You can probably make it a wash though depending on how you work out your expenses. Thank you. When we're married, does it matter if we file jointly or separately? Is it correct to think that any transfer of wealth between spouses is not taxable?
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Jan 26, 2016 22:52
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Skinnymansbeerbelly posted:Last year I obtained a judgement against my landlord-neighbor in small claims court, as reimbursement for his half of the replacement of a derelict property line fence. He paid up, but also sent me a 1099-misc, with the judgement amount in box 7. OK, this should not be taxable income in my understanding, that is generally for punitive damages (I think this just affects the basis of your home if/when it's sold). In this case I'd probably include a note to the IRS with your return (and maybe a copy of the settlement papers showing the award was a settlement) to explain things to them. Neighbor probably sent the 1099 because he's trying to treat it as a business expense (not sure enough of your specifics to guess if he qualifies to do that), but you shouldn't be on the hook for it from what you said. Document carefully in any event considering it might trigger IRS review. I'll bounce this one off some other folks at work to double check, but that's my initial read of things. PaulC posted:This year I had considerable freelance income for the first time. I also work in two different states (NY full-time job, NJ freelancing from home) and would like to deduct some expenses related to the freelance job. Business income is one of those issues where I really do want to recommend a preparer take a look at least the first time, those returns get complicated so drat fast. TurboTax can work if you know what you're doing, but it's very likely you won't know what options to pick for it. Probably can't really help you directly with a preparer unless you're near me in Delaware (well, I CAN do one not face to face, but to be blunt doing it for somebody I randomly met over the Internet and never saw in person puts ME at a certain legal liability I'm uncomfortable with myself, even if it would impress my manager with my amazing marketing skills  ). I will say comfortable is a very important factor since you will by definition have to hand enough info over to make identity theft a real possibility, something a few assholes exploit going by the IRS things I've read. Though if it's a big enough firm there's usually an internal review to catch weasels; I know H&R Block reviews my returns for problems, accidental or otherwise, and I presume the other firms do something similar (though franchise offices might have a different review policy, not sure) and often offer some sort of guarantee in case of trouble.alnilam posted:Thank you. There is no limit on transfers between spouses, for gift tax purposes you have an unlimited exclusion. As for your original question, writing separate checks if you aren't married works well (you could each claim the portion of mortgage interest you pay), if you're married the IRS doesn't care who pays so long as if you do a married filing separately return everything on an itemized deduction like mortgage interest is split and you don't both try to claim the full amount. As a general rule, you'll want to file jointly unless you both make a lot of money though, married filing separately SUCKS for most purposes.
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Jan 27, 2016 02:10
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Do I have to file this year? I get VA benefits (disability and GI Bill) that are tax free, I don't have a job, and I've taken out student loans (so basically get the student loan money refunded to my bank account since the GI Bill pays for everything). The only thing I have that might be taken as income is on the 1098-T from the school, where box 5 has 20k listed for (scholarships or grants).
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Jan 27, 2016 02:22
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Are unvested restricted stock units already taken care of in my W2 or do I need additional documents from the financial institution before I can file my taxes?
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Jan 27, 2016 03:16
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Grem posted:Do I have to file this year? I get VA benefits (disability and GI Bill) that are tax free, I don't have a job, and I've taken out student loans (so basically get the student loan money refunded to my bank account since the GI Bill pays for everything). The only thing I have that might be taken as income is on the 1098-T from the school, where box 5 has 20k listed for (scholarships or grants). Is the school listing your GI Bill benefits as scholarships or grants, or do you also have 20k of other scholarships? What is listed in box 1 (qualified expenses paid during 2015) or box 2 (qualified expenses charged during 2015-if box 7 is checked this also includes amounts for the spring or winter term that were charged in December)? You should get a statement of your student account from the bursar or your school's online student portal to make sure these numbers are accurate. The GI benefits will reduce your qualified education expenses, increasing the likelihood that other scholarships Will counts as taxable income. If you did not have scholarships or grants besides the GI benefits you might not have to file. Publication 970 has more information about education expenses and income-Pub 970
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Jan 27, 2016 04:42
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NancyPants posted:I did not file 2013 and 2014 taxes. I was unable to get the proper 1098-E for 2013, but I got a statement from the servicer that shows what I think is the same info. Does the accountant need to send in an actual 1098-E when he files my taxes or would this suffice? To answer this part, just the number is fine, you do NOT need to actually attach the 1098-E.
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Jan 27, 2016 04:46
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MadDogMike posted:As for your original question, writing separate checks if you aren't married works well (you could each claim the portion of mortgage interest you pay), If she isn't on the mortgage she can't claim an interest deduction though. At least that is my understanding. At least before they are married. If she was on the mortgage his original question goes away anyways.
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Jan 27, 2016 05:29
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Anyone familar with H&R Block's filing of state returns? I have a form for a credit it says to attach, but I don't see any way to. Their help has so far been no help, but I'll try again not in the middle of the night.
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Jan 27, 2016 05:56
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Under what section should I file any moving expenses? We moved 800 miles last May for my wife's new job in PA, it's showing up under Pennsylvania Schedule UE (Employee Business Expenses) which doesn't seem right to me, as it wasn't an expense incurred on the job. However, we actually noted the moving expenses on the Federal section of our return, and it seems that TaxAct is pulling this info to populate the PA UE form. Does that sound right? Assuming that is behaving as it should, should we report that we shared the moving expenses or that she paid them all? The UE form is asking both of us for employer information related to the expenses (and we each are marked down for half the total expenses on the UE form). It seems more appropriate to consider her employer here, as we moved as a result of her new job. C-Euro fucked around with this message at 06:25 on Jan 27, 2016 |
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Jan 27, 2016 06:09
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urnisme posted:Is the school listing your GI Bill benefits as scholarships or grants, or do you also have 20k of other scholarships? What is listed in box 1 (qualified expenses paid during 2015) or box 2 (qualified expenses charged during 2015-if box 7 is checked this also includes amounts for the spring or winter term that were charged in December)? You should get a statement of your student account from the bursar or your school's online student portal to make sure these numbers are accurate. The GI benefits will reduce your qualified education expenses, increasing the likelihood that other scholarships Will counts as taxable income. If you did not have scholarships or grants besides the GI benefits you might not have to file. Box 1 is empty, box 2 is 12,198, and box 7 is checked. The 20k would probably be for Pell grants and student loans, I suppose?
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Jan 27, 2016 07:21
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urnisme posted:To answer this part, just the number is fine, you do NOT need to actually attach the 1098-E. Awesome, thanks for info.
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Jan 27, 2016 18:14
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Quick question on the new form 8965 - I live in a terrible state that didn't expand medicaid, and made less than 138% of the FPL. Do I just enter code G for the gap-months my wife wasn't covered and it's auto-approved based on my income, or do I have to do more than that? I'm basing this on page 13 of i8965.
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Jan 27, 2016 22:46
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C-Euro posted:Under what section should I file any moving expenses? We moved 800 miles last May for my wife's new job in PA, it's showing up under Pennsylvania Schedule UE (Employee Business Expenses) which doesn't seem right to me, as it wasn't an expense incurred on the job. However, we actually noted the moving expenses on the Federal section of our return, and it seems that TaxAct is pulling this info to populate the PA UE form. Does that sound right? Do you both work? PA Schedule UE is the appropriate form. Make sure you're also deducting the expenses on your local return.
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Jan 28, 2016 13:36
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