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Droo posted:Print everything else out, use whiteout where necessary, and mail all the forms in? Doesn't really seem worth saving $55. If you leave it off, the IRS computers will automatically re-run your return in 10-18 months (yes, really). Then they'll send you a CP2000 notice (top right of the form will list this), they will tell you what they think the new tax is, and send you a bill. You can pay it then. If you live in a state with income tax, they will copy the state and the state will then invoice you a couple months to a year after the IRS letter goes out. Crappy part - if you move and they mail it to the wrong address. Here in OR, the state will levy/lien for small amounts in around two months, and that hits your credit, so be careful. The interest and penalties will probably be cheaper than the $55.
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Feb 22, 2017 17:51
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Ancillary Character posted:You'd have to fill out Form 1096 for the IRS and issue those two people a 1099. Then remember to record the expense on the tax return itself. Thanks for this! Im guessing I'll need a w2 for both of them?
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Feb 22, 2017 18:30
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Trip report on Credit Karma Tax. Seems  good enough , I filled in my stuff across it, TurboTax and TaxAct and more or less seemed to match up with each other with my tax situation (W-2, 1099-DIV, 1099-B with ESPP malarkey, 1099-SA and 1098-E). Just has to be on the ball more than usual when it came to adjusting cost basis for Form 8949 from ESPP which always sucked anyway.Can't beat free for Fed and State filing I suppose, TurboTax was going to charge me for $92. Credit Karma already has my personal info as I was a user prior to them opening up Tax, so gently caress it.
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Feb 23, 2017 05:21
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bows1 posted:Thanks for this! Im guessing I'll need a w2 for both of them? Not if these people weren't your employees, which shouldn't be the case since you said you and your buddy started the company, not sure about this second person you mentioned though. If you're giving them W-2s, you'd have to have been paying payroll and unemployment taxes for them. There's a lot of extra work and money that goes into having an employee, but if the guy is legitimately your employee, you should suck it up and do it. If you were paid through a 1099 for the entire contract and you're just passing along their share of the money, then the nominee payment should retain the same form. You might want to talk to accountant if the company you started is its own entity since you might need to have the company be the one to report the income on its own tax return and then issue payments to the company's owners (Schedule K-1, I think).
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Feb 23, 2017 05:39
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I'm using the CreditKarma free stuff and running into a snag with a 1099-MISC. I did sporadic consulting for a total of ~$1,000 basically teaching someone my boss knew how to use QuickBooks and a few other basic things (she's in the same office building we're in and I was originally doing it just as a favor). When I enter it as "Money from occasional freelance, consulting, contractor work, from a side job, or commissions, bonuses, prizes, awards that you performed in 2014 or 2015, plan to do in 2017 or 2018, or was related to your regular line of work" it prompts me to add a business. Do I just say "[My name]'s Consulting" or something there? I was paid with checks just made out to my name from the business. It kind of feels wrong to have ~$1,000 under "Business Income" when I don't actually have a business or anything, but it feels even more wrong to select "Other" instead of "Money from occasional freelance, consulting, etc." because it fits into that category.
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Feb 24, 2017 03:23
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Yeah it asks me for a business name or job title for my Uber money, I just make something relevant up, I don't think it matters. I just put in "Driver", for you "Consultant" would probably be fine, IANACPA.
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Feb 24, 2017 03:36
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My mom has reminded (annoyed) me several times in the past week to not worry about the individual mandate box when filing my taxes (I was unemployed a lot last year) because "The IRS isn't enforcing the penalty". This seems like a bad idea, just wanted to check here to see what the worst case scenario is for ignoring that section on my return?
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Feb 24, 2017 04:24
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Your mom is probably referring to "exemptions" from the health coverage requirement. If you do not qualify for an exemption, you will have to pay a penalty. It sounds like you probably qualify. Fill out the form on your tax return. https://www.healthcare.gov/health-coverage-exemptions/forms-how-to-apply/
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Feb 24, 2017 05:21
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Michael Scott posted:Your mom is probably referring to "exemptions" from the health coverage requirement. If you do not qualify for an exemption, you will have to pay a penalty. It sounds like you probably qualify. Fill out the form on your tax return. Thank you for this. She definitely wasn't, she also went on a rant at one point about how the law was 'evil' but it's good to know that I might be able to get a bit of relief.
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Feb 24, 2017 07:02
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GobiasIndustries posted:Thank you for this. She definitely wasn't, she also went on a rant at one point about how the law was 'evil' but it's good to know that I might be able to get a bit of relief. She's probably misunderstanding the IRS response to the executive order telling agencies to use discretion to "reduce the burden" of the affordable care act. The IRS is accepting returns for processing that do not report a penalty or any heath insurance. This does not change the fact that the penalty is owed, and will probably result in letters from the IRS asking for proof of health insurance or the additional tax owed because of the penalty.
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Feb 24, 2017 14:45
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AbbiTheDog posted:Crappy part - if you move and they mail it to the wrong address. Here in OR, the state will levy/lien for small amounts in around two months, and that hits your credit, so be careful. Next time I move I will send in a form to give the IRS my new address to potentially avoid this kind of thing.
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Feb 24, 2017 20:01
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I have a question about a 1099-MISC, or rather, the lack thereof. I worked a couple of weeks teaching summer school. I should have received a 1099-MISC, but didn't get one by January 31st. I contacted the owner of the summer school, who said he thought one had been mailed out to me, and that he'd send another. Now we're at the end of February and still nothing. The summer school is pretty much a one-man operation outside of summer, so I'm just assuming the owner's a sloppy mess and doesn't know what he's doing. Anyway, to my question: How do I report the income? I know the business name and EIN, so I can just punch that and the amount I was paid into TurboTax. But would that throw up a red flag for the IRS if the summer school doesn't actually generate a 1099 for me and copy it to the IRS? Is there some other way to report the income? Thanks!
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Feb 24, 2017 22:15
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Ol' Limber Legs posted:I have a question about a 1099-MISC, or rather, the lack thereof. You can always report the income on a Schedule C/Schedule C-EZ without the 1099-MISC, so long as you could bring up documents showing you made the money (bank deposit records or similar). The responsibility for the 1099-MISC is mostly on the person filing it rather than you (said owner might wind up with a penalty for not reporting theoretically) so long as you do include the money on your return in the appropriate spot, Schedule C in this case. urnisme posted:She's probably misunderstanding the IRS response to the executive order telling agencies to use discretion to "reduce the burden" of the affordable care act. The IRS is accepting returns for processing that do not report a penalty or any heath insurance. This does not change the fact that the penalty is owed, and will probably result in letters from the IRS asking for proof of health insurance or the additional tax owed because of the penalty. Yeah, it's mainly stopping the IRS from auto-rejecting e-filed returns with no entry in that area which they were originally going to do starting this year. Considering all the penalties and such are mandated by law, this is probably the IRS trying its best to comply with an open-ended rather dumb executive order since they can't just wave the penalty. That requires open-ended rather dumb new laws being pass by Congress! I do find it somewhat amusing they had to take a month after the order (which went out around 1/20) to figure out exactly what they COULD do for that order. Power of Pecota posted:I'm using the CreditKarma free stuff and running into a snag with a 1099-MISC. You don't want to do "Other" since that might have it listed as line 21 other income instead of business which my read puts this as (work done over time) which would screw up the SE tax calculation and get you possibly flagged by the IRS (I have to imagine 1099-MISC being reported on Line 21, or Line 21 in general really, gets some scrutiny). You shouldn't need a business name though, that's normally an optional entry on Schedule C. Can't speak for Credit Karma's software letting you do that obviously, but if you want to put something in like "[My name]'s Consulting" it won't hurt anything. About the only time I think the IRS would really care about the business name on a Schedule C is if you have your sole proprietorship with an EIN (which does need to go on Schedule C if you have it) or possibly if you had your records in that business's name. Most sole proprietorships never bother with a name though. Droo posted:Print everything else out, use whiteout where necessary, and mail all the forms in? Doesn't really seem worth saving $55. Can always grab blank pdfs of the forms for free at irs.gov and fill them in. Though be careful you don't accidently tell the program to e-file for you if you generate forms via it. And  for the mockery of my job, good sir!
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Feb 25, 2017 04:36
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I've done TurboTax for many years because until recently my finances were pretty simple. Last year got more complicated, what with transferring the money out of an old 401k that was being closed, and moving/working out of state for about two months. Long story short, I need to file in three states and much of it is new to me. This make me paranoid every time I take another step in Turbotax that there is some sort of silly exception that will go wrong and I will get in trouble. So I am considering finding a professional tax service. The thing is that I've only ever heard incredibly bad things about them. Like, used car salesman bad, both about small local places and the big places like H&R Block. (Sorry, MadDogMike. Maybe you can allay my apprehensions?) How do you find a place that isn't bad and/or how do you know what silly crap to avoid? I don't care about 'maximizing my refund' nearly as much as not getting some sort of penalty.
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Feb 25, 2017 15:09
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I'm trying to set up a budget that allows our household to contribute to a traditional IRA and I have a question about how the allowed deductions are calculated. I've read through some IRS publications and it appears that the MAGI number used to calculate if you can take a full deduction for a traditional IRA contribution is reduced by both traditional IRA contributions and 401k contributions. To put it another way, you might not initially qualify to take a full deduction for your traditional IRA contributions, but by contributing to a traditional IRA and a 401k you can reduce your MAGI and qualify yourself for the full deduction. Am I correct in this interpretation?
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Feb 25, 2017 15:40
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Magnetic North posted:I've done TurboTax for many years because until recently my finances were pretty simple. Last year got more complicated, what with transferring the money out of an old 401k that was being closed, and moving/working out of state for about two months. Long story short, I need to file in three states and much of it is new to me. This make me paranoid every time I take another step in Turbotax that there is some sort of silly exception that will go wrong and I will get in trouble. Honestly the best thing is probably to ask your friends and family where they get theirs done. It's unlikely that all of them do their own taxes so someone should have a recommendation.
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Feb 25, 2017 16:50
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MadDogMike posted:You don't want to do "Other" since that might have it listed as line 21 other income instead of business which my read puts this as (work done over time) which would screw up the SE tax calculation and get you possibly flagged by the IRS (I have to imagine 1099-MISC being reported on Line 21, or Line 21 in general really, gets some scrutiny). You shouldn't need a business name though, that's normally an optional entry on Schedule C. Can't speak for Credit Karma's software letting you do that obviously, but if you want to put something in like "[My name]'s Consulting" it won't hurt anything. About the only time I think the IRS would really care about the business name on a Schedule C is if you have your sole proprietorship with an EIN (which does need to go on Schedule C if you have it) or possibly if you had your records in that business's name. Most sole proprietorships never bother with a name though. Awesome, thanks a bunch!
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Feb 25, 2017 23:43
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Epi Lepi posted:Honestly the best thing is probably to ask your friends and family where they get theirs done. It's unlikely that all of them do their own taxes so someone should have a recommendation. Family might not have them (or do their own). Try: Broker (if you have one) Your insurance agent (they always have one) If you bought a home, your realtor (they always have one)
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Feb 26, 2017 00:35
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Ugh im 99% done with preparing on credit karma, then i notice an issue with their 1099b input page. They said they support form 8949, but I just got this reply to my help request "Unfortunately, this year we do not support the codes required to file capital gains without basis reported to the IRS." I don't feel like redoing everything. Anyone see an issue with just reporting as if basis had been reported to IRS on the capital gains that actually hadn't? Nifty fucked around with this message at 20:48 on Feb 26, 2017 |
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Feb 26, 2017 20:46
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Magnetic North posted:I've done TurboTax for many years because until recently my finances were pretty simple. Last year got more complicated, what with transferring the money out of an old 401k that was being closed, and moving/working out of state for about two months. Long story short, I need to file in three states and much of it is new to me. This make me paranoid every time I take another step in Turbotax that there is some sort of silly exception that will go wrong and I will get in trouble. Professional tax preparers are just like any other business, you've got terrible ones and good ones all over. I will say size isn't the factor to judge by; I know talented people at H&R Block and small local places, and I've fixed dumb returns from both places as well. If all of us were sleazy greedy thieves there would not be millions of people (the majority even in the age of TurboTax as I understand it) who go to preparers for their taxes. The industry gets a bad rep because the vast majority of people who just come in for an hour or so once a year with no issue thereafter aren't as loud as those who have a problem and are stuck playing phone/letter tag with the IRS for a while even if they don't owe money as a result. That and I don't think there's an entirely accurate understanding of how much work goes into what we do out there. I often think of the old story about the plumber receiving a complaint for charging $100 to fix a sink by knocking on a pipe, and replying he charged $10 for knocking on the pipe and $90 for knowing where to hit. People get mad about the fees but don't see the work. Anyway, personal ranting aside, as far as general advice? Most of the same things that work for finding good people in any business work really. Asking other people you know is pretty good advice because using a preparer is common enough you should find somebody who knows someone good pretty quick. Be prepared for it to cost a fair bit; TurboTax is cheap because nobody is there to check your work or help if something goes wrong, any preparer worth a drat will charge appropriately. If you are not comfortable, walk! Most real sleazy business tactics are universal, don't put up with them when you recognize them, and they can be downright illegal in tax prep anyway. And, when making an appointment try to do it plenty of time in advance and state what issues you have clearly so they can match you with an appropriate preparer. While I confess it's amusing watching the eyes of more newbie preparers when a client who sounded simple pulls out some crazy difficult tax form  , in general we try not to inflict that sort of situation on them or the clients.Nifty posted:Ugh im 99% done with preparing on credit karma, then i notice an issue with their 1099b input page. They said they support form 8949, but I just got this reply to my help request Uhhh, that sounds like IRS review-bait to me, since their computer is easily gonna spot that basis hadn't been reported to the IRS previously. I don't know that it would hurt you in the end per se since I imagine people screw up picking the "basis reported to the IRS" letter all the time on 8949, and I assume you have documents proving the basis if challenged, but why take the risk? Kinda dumb of Credit Karma to claim they support 8949 though if they can't do unreported basis; considering transactions with reported basis and no adjustments can go directly on Schedule D, reporting "basis not reported" is pretty much what Form 8949 is FOR. Why say you support it if you can't do one of its basic functions?
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Feb 26, 2017 21:24
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Apparently TurboTax Free doesn't handle 1099-MISC forms for something other than work. I've got a lawsuit settlement 1099-MISC, are there any free online places that will handle that? Preferably also handling state taxes. If not, I'll probably just see if I can still get a Mint discount on one of the paid versions. E: Apparently I can't get the Mint discount because I already started. 22 Eargesplitten fucked around with this message at 21:58 on Feb 26, 2017 |
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Feb 26, 2017 21:41
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Nifty posted:Ugh im 99% done with preparing on credit karma, then i notice an issue with their 1099b input page. They said they support form 8949, but I just got this reply to my help request MadDogMike posted:Uhhh, that sounds like IRS review-bait to me, since their computer is easily gonna spot that basis hadn't been reported to the IRS previously. I don't know that it would hurt you in the end per se since I imagine people screw up picking the "basis reported to the IRS" letter all the time on 8949, and I assume you have documents proving the basis if challenged, but why take the risk? Kinda dumb of Credit Karma to claim they support 8949 though if they can't do unreported basis; considering transactions with reported basis and no adjustments can go directly on Schedule D, reporting "basis not reported" is pretty much what Form 8949 is FOR. Why say you support it if you can't do one of its basic functions? Which adjustment code would this fall under? Some of my stuff was reported incorrectly on account of them being employee stocks that are bought with a discount so mine would be using adjustment code B. I don't remember all of the codes on the sheet and I can't access it now after filing my stuff, but that seems like a weird thing to suddenly have an issue with your returns.
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Feb 26, 2017 22:14
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8-bit Miniboss posted:Which adjustment code would this fall under? Some of my stuff was reported incorrectly on account of them being employee stocks that are bought with a discount so mine would be using adjustment code B. I don't remember all of the codes on the sheet and I can't access it now after filing my stuff, but that seems like a weird thing to suddenly have an issue with your returns. If that was your issue then just using code B is correct. The issue I'm referring to (basis not reported at all), is a checkbox at the very top of form 8949, not a code you select when inputting the individual transactions.
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Feb 26, 2017 22:54
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Nifty posted:If that was your issue then just using code B is correct. The issue I'm referring to (basis not reported at all), is a checkbox at the very top of form 8949, not a code you select when inputting the individual transactions. Oh checkbox B. I see, that's a bummer.
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Feb 26, 2017 23:01
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22 Eargesplitten posted:Apparently TurboTax Free doesn't handle 1099-MISC forms for something other than work. I've got a lawsuit settlement 1099-MISC, are there any free online places that will handle that? Preferably also handling state taxes. If not, I'll probably just see if I can still get a Mint discount on one of the paid versions. MyFreeTaxes from the United Way should handle that free if you have less than $64,000 AGI on your return. It also does states free.
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Feb 27, 2017 15:39
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Thanks, that looks like exactly what I need.
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Feb 27, 2017 17:19
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When the IRS refers to a payment made during the "calendar year", does that mean the check must be dated by 12/31, or must be cashed by that date? Can I get away with writing a check now and backdating it?
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Feb 27, 2017 20:37
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urnisme posted:MyFreeTaxes from the United Way should handle that free if you have less than $64,000 AGI on your return. It also does states free. Quoting this again, thanks so much. They caught a possibility that TurboTax didn't even mention, and that got me a huge bump.
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Feb 27, 2017 22:25
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Nifty posted:When the IRS refers to a payment made during the "calendar year", does that mean the check must be dated by 12/31, or must be cashed by that date? Can I get away with writing a check now and backdating it? iirc its when the money is realized or realizable, so once they have the check in their hand and are able to deposit or cash it (whether they choose to immediately or not), theyve been paid. e: idk abt back dating checks to the IRS ill let one of the more seasoned field that one
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Feb 27, 2017 22:58
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black.lion posted:e: idk abt back dating checks to the IRS ill let one of the more seasoned field that one Sorry, no I don't mean checks to the IRS. In this case I'm referring to the $14k annual gift limit tax free in a calendar year to another individual. If a check has a 2016 date but not cashed till March 2017, can it be included as part of 2016s total?
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Feb 27, 2017 23:05
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Nifty posted:Sorry, no I don't mean checks to the IRS. In this case I'm referring to the $14k annual gift limit tax free in a calendar year to another individual. If a check has a 2016 date but not cashed till March 2017, can it be included as part of 2016s total? a) Technically no. b) If they get into the details, usually your check numbers are off (you've been writing checks for two months, and now you're claiming one that's waaaay down the numerical list was written prior. Good luck with that argument). If you really did write the check and give it to them/mailed it to them, and they sat on it, then yes it would be fine.
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Feb 27, 2017 23:42
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Nifty posted:Sorry, no I don't mean checks to the IRS. In this case I'm referring to the $14k annual gift limit tax free in a calendar year to another individual. If a check has a 2016 date but not cashed till March 2017, can it be included as part of 2016s total? I believe in the case of income, it's counted the year the check was received regardless of when it was deposited, but for stuff like charitable donations, it only counts when the check is deposited. Personal gifts would most likely work like the latter than the former.
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Feb 28, 2017 02:14
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Ancillary Character posted:I believe in the case of income, it's counted the year the check was received regardless of when it was deposited, but for stuff like charitable donations, it only counts when the check is deposited. Personal gifts would most likely work like the latter than the former. For charitable donations its when the check was written/submitted, so if you have certified mail or something shwoign you sent the check it still counts even if they don't cash it until the first.
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Feb 28, 2017 03:14
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Feb 28, 2017 15:46
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We've already seen several audit-by-mail letters in my office already this year about the credits affected by the Path Act. Including one of our tax pros lol
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Feb 28, 2017 18:35
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Big Fat Iguana posted:We've already seen several audit-by-mail letters in my office already this year about the credits affected by the Path Act. Including one of our tax pros lol Yeah, that's the whole point of the PATH act.
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Feb 28, 2017 20:06
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AbbiTheDog posted:a) Technically no. The rule is for when money counts as received under cash basis (the standard accounting method for taxpayers) is when you have "constructive receipt of the funds without limitation". Basically once they had free access to the money, which they did once they got the check, it counts as received under cash basis accounting. Here's a quick summary for more detail. Now proving you did that could be an issue, but legally it counted once they received the check, not when they cashed it.
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Mar 1, 2017 00:39
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I had the same issue. I just typed everything in to free fillable forms using the numbers from Credit Karma, and filled the 8949 correctly. Takes 15 minutes tops.
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Mar 2, 2017 15:58
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Rental question: I purchased a property and it was rented for ~4 months, and then I converted it to personal use. The various expenses for that 4 months have created a sizable disallowed passive loss. Two questions: Do I file a form 4797 for disposing of this business asset? H&R Block software prompts me: "When you stop using a property for income, if you didn't sell the item, you may be able to write off any remaining basis" which then refers me to fill out form 4797. However, the prompting for 4797 all seems to only be if I actually sold the property, not just converted it to personal use? What happens to my disallowed passive loss? If I was actually selling the property, I would get to recognize and deduct it. Since I'm converting to personal, does it just go poof and disappear never to be seen again? edit: or, do I continue to carryforward that passive loss until I eventually place that property back into rental service? edit2: okay, I think my first edit is correct, I endlessly carryforward the passive loss, per "A former passive activity is an activity that was a passive activity in any earlier tax year, but isn’t a passive activity in the current tax year. You can deduct a prior year's unallowed loss from the activity up to the amount of your current year net income from the activity. Treat any remaining prior year unallowed loss like you treat any other passive loss." https://www.irs.gov/publications/p925/ar02.html#en_US_2016_publink1000104565 I'm okay with that for my purposes, because I'm eventually going to convert this back to a rental, the loss will eventually help me Nifty fucked around with this message at 06:40 on Mar 4, 2017 |
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Mar 4, 2017 06:01
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Nifty posted:Rental question: I purchased a property and it was rented for ~4 months, and then I converted it to personal use. The various expenses for that 4 months have created a sizable disallowed passive loss. Two questions: Form 8582 is for passive losses. You should search for "entire disposition of a passive activity" (EDPA) and "grouping election" for your future rental reporting needs.
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Mar 4, 2017 17:43
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