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AbbiTheDog posted:You can get various corporate tax *credits*, which are a dollar-for-dollar reduction in tax, as opposed to corporate *deductions*, which reduce the amount you apply the tax rate to. Credits are far more desirable than deductions. And part of the reason they threw corporate AMT back in was because they need it to stay under the line needed for reconciliation (IIRC removing it adds $300 billion back and the bill only has $50 billion "slack"), so if they "fix it" no more reconciliation. Add in the House being dumb enough to say "Hah hah you suckers, you think we'd keep our word?!" to the Senators they bought off with certain things before the bill made it all the way and you got an... "interesting" situation. I gotta admit, I never figured they would mess up so bad they screwed over business too in the process of ripping off everybody else. It's kinda hilarious, even if I figure they'll come up with some way to get this thing through eventually. EDIT: This article on Vox seems to have some good discussion of the issue.
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Dec 8, 2017 02:08
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We live in magical times, to be sure. I guess this means no major changes planned for this filing season, right?
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Dec 8, 2017 06:16
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sullat posted:We live in magical times, to be sure. I guess this means no major changes planned for this filing season, right? This season, definitely not. There’s no way in hell the IRS could change all the forms at this point by next month. Most tax bills take years to kick in fully for a reason, though admittedly that’s SANE tax bills so who knows here.
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Dec 8, 2017 14:36
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MadDogMike posted:And part of the reason they threw corporate AMT back in was because they need it to stay under the line needed for reconciliation (IIRC removing it adds $300 billion back and the bill only has $50 billion "slack"), so if they "fix it" no more reconciliation. Add in the House being dumb enough to say "Hah hah you suckers, you think we'd keep our word?!" to the Senators they bought off with certain things before the bill made it all the way and you got an... "interesting" situation. I gotta admit, I never figured they would mess up so bad they screwed over business too in the process of ripping off everybody else. It's kinda hilarious, even if I figure they'll come up with some way to get this thing through eventually. The funny part is that eliminating deductions for richies that allow them to pay less taxes than the middle class was something Trump campaigned on and had no intention of doing but the senate accidentally did it due to incompetence.
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Dec 8, 2017 18:02
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MadDogMike posted:This season, definitely not. There’s no way in hell the IRS could change all the forms at this point by next month. Most tax bills take years to kick in fully for a reason, though admittedly that’s SANE tax bills so who knows here. About 15 years ago they passed retro tax legislation after the year had ended. Had to amend a ton of returns. 02/03? Had to do with bonus depreciation.
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Dec 11, 2017 20:26
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Does pay received next year for work done this year count for next year’s taxes or this year’s? I get paid on the 5th of January for work done up to December 29th.
22 Eargesplitten fucked around with this message at 17:37 on Dec 15, 2017 |
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Dec 15, 2017 17:33
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Pay is part of the tax/income for the year it was received, not the year in which it was earned.
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Dec 15, 2017 17:49
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Unless you're an accrual-basis company!
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Dec 15, 2017 21:25
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This thread title isn't topical anymore, nor was it particularly funny. I'm not good at tax puns, so feel free to throw out changes if anyone cares enough to. Well, calc-you-later!
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Dec 15, 2017 21:38
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If we're doing puns, the tattoo thread had this idea not too long ago: "The accountan-sea is accrual mistress" Also open to ideas regarding the image to accompany, once the idea is complete I'll be getting it put into my flesh for keeps US Income Tax Thread: Now Accepting Ill-Informed Political Rants US Income Tax Thread: The Answer is, Always, "It Depends" US Income Tax Thread: How Many Bitcoins Do I Owe the Government? black.lion fucked around with this message at 21:58 on Dec 15, 2017 |
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Dec 15, 2017 21:54
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How about Can I Pay My Taxes in Bitcoins?black.lion posted:US Income Tax Thread: Now Accepting Ill-Informed Political Rants I like this though
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Dec 15, 2017 22:04
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US Income Tax Thread: Farewell to Exemptions US Income Tax Thread: Deductions on my mind US Income Tax Thread: Increase your withholding
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Dec 16, 2017 03:05
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Since the SALT deduction is strictly cash basis (and likely going away) it seems like I can make a too-high estimated state payment before the end of the year, take the deduction on my 2017 Federal return in April, and get the payment itself back when filing my state return. Ordinarily, that state return would offset my state taxes for TY 2018, but since the deduction looks to be going away anyway this looks like free money. As long as I trigger the AMT for 2017 is there any reason I should do this?
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Dec 17, 2017 01:59
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KernelSlanders posted:Since the SALT deduction is strictly cash basis (and likely going away) it seems like I can make a too-high estimated state payment before the end of the year, take the deduction on my 2017 Federal return in April, and get the payment itself back when filing my state return. Ordinarily, that state return would offset my state taxes for TY 2018, but since the deduction looks to be going away anyway this looks like free money.
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Dec 17, 2017 02:23
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black.lion posted:US Income Tax Thread: The Answer is, Always, "It Depends" My personal vote; always the little special cases to remember (just got done testing up to a new rank, SO drat many trick questions on the test...  ).Small White Dragon posted:Reportedly, this is explicitly disallowed. Maybe I'm missing something in the original question, but wouldn't that also make you eat the bigger refund as taxable income the next year anyway? Also, apparently SALT isn't completely going away since it's being rolled into property/real estate taxes and limited to $10,000 total max. Designed to still screw blue states that way of course. AbbiTheDog posted:About 15 years ago they passed retro tax legislation after the year had ended. Had to amend a ton of returns. 02/03? Had to do with bonus depreciation. According to something I read today they doing something similar this year with the "take the full value instead of depreciating" thing, apparently everything after September 27th 2017 is eligible for expensing that way. Maybe because it's optional (I think) and easy to do on the current forms? I do know if they tried to drop everything in on the 2017 tax year they'd never fix all the forms in time. And of course if they wait to screw people over until after the 2018 election they hope everybody won't remember.
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Dec 17, 2017 03:58
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So just to make sure. If this thing passes this week it won’t actually have an effect on either individuals or businesses this April?
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Dec 18, 2017 00:26
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Small White Dragon posted:Reportedly, this is explicitly disallowed. I've been trying to find a reliable source that says this but have thus far been unable to. Care to help? MadDogMike posted:Maybe I'm missing something in the original question, but wouldn't that also make you eat the bigger refund as taxable income the next year anyway? Also, apparently SALT isn't completely going away since it's being rolled into property/real estate taxes and limited to $10,000 total max. Designed to still screw blue states that way of course. Like above, I haven't seen anything that says state tax refunds are taxable income (interested if you know of one), but even in that case I should come out ahead because my marginal rate will be lower -- even if only slightly.
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Dec 18, 2017 01:27
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quote:In a pre-emptive move against accounting maneuvers in high-tax states such as New York and California, the bill prohibits taxpayers from prepaying next year’s state and local income taxes, in order to deduct them from 2017 taxes. That form of tax planning would have allowed taxpayers to benefit more from the full state and local deduction this year before it is capped next year.
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Dec 18, 2017 03:42
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KernelSlanders posted:I've been trying to find a reliable source that says this but have thus far been unable to. Care to help? Under the current rules, state tax refunds are taxable income IF you itemized and deducted state taxes, so if they were changing it under the new bill, it would probably have been mentioned somewhere. When you're getting money back through a refund, it means you deducted money the previous year that you ultimately didn't have to pay. The way this gets "clawed back" is by making state tax refunds taxable the following year. If you didn't deduct state taxes, like if you just took the standard deduction, then state tax refunds would not be taxable income.
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Dec 18, 2017 06:20
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KernelSlanders posted:I've been trying to find a reliable source that says this but have thus far been unable to. Care to help? When you itemize state taxes on Schedule A, state refunds become taxable to the extent you got a deduction for state taxes (line 10 on the 1040). I haven't heard anything saying that was removed, though this bill is so screwy I wouldn't be shocked. And as linked by smackfu they blocked it anyway, I guess to avoid tricks with the changing marginal rates like you're suggesting. SpaceCadetBob posted:So just to make sure. If this thing passes this week it won’t actually have an effect on either individuals or businesses this April? Like I mentioned, there is apparently some backdating to September 27th of this year on the taking the whole cost of things as an expense rather than depreciating, but not sure if it's limited to specific items or whatnot. Considering we already have 50% bonus depreciation as a thing that wouldn't take much to tweak on the forms to make it 100% (maybe some work on Form 4562 and its instructions), especially if it's optional. I hope it's optional anyway since 100% depreciation would actually be kind of detrimental to most people trying to rent residential property by my experience. Other than that I think most if not all of the rest is pushed back to avoid antagonizing voters before the election and the basic logistical issues of wildly changing the law right before tax season would present the IRS. I'll pass along anything else I find out of course, I imagine everybody and their grandmother is still trying to read the thing to figure it out (including Congress  ).
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Dec 18, 2017 06:28
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What's the deal with ITINs? If I am filling as Head of Household and have a non-resident alien spouse, is it necessary to get them an ITIN in order to complete my return? And if they do need one, am I correct in thinking I wouldn't need to declare their foreign-earned income?
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Dec 18, 2017 10:06
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King George posted:What's the deal with ITINs? If I am filling as Head of Household and have a non-resident alien spouse, is it necessary to get them an ITIN in order to complete my return? If they aren’t eligible for an SSN, they need an ITIN to be included on the tax form. Now, if they’re nonresident and you’re doing the count as legally unmarried/file head of household thing, they don’t need to be on the return (assuming you have a dependent of course), you just file head of household. You can make an election statement to treat the nonresident spouse of a resident/US citizen as a resident (just include a written statement to that effect) but then any income they earned outside the US would have to go on the return, though you can claim foreign tax credit like normal. Note the election is for spouses only, any dependent who doesn’t meet substantial presence test is out of luck for being claimed.
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Dec 18, 2017 17:00
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Did above-the-line deductions get changed at all? Last year I was right on the border of benefiting from itemizing. I'm trying my best to estimate how the new standard deduction is going to affect me, but need to know if 401k contributions and/or student loan interest is still deductible on top of the new standard deduction.
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Dec 18, 2017 18:54
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I think they were squeaking about student loan interest deduction going out the window, but I can't be bothered to read the thing until it's done being scribbled on by interns at 3AM so maybe someone else who pays more attention can chime in.
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Dec 18, 2017 21:29
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MadDogMike posted:If they aren’t eligible for an SSN, they need an ITIN to be included on the tax form. Now, if they’re nonresident and you’re doing the count as legally unmarried/file head of household thing, they don’t need to be on the return (assuming you have a dependent of course), you just file head of household. You can make an election statement to treat the nonresident spouse of a resident/US citizen as a resident (just include a written statement to that effect) but then any income they earned outside the US would have to go on the return, though you can claim foreign tax credit like normal. Note the election is for spouses only, any dependent who doesn’t meet substantial presence test is out of luck for being claimed. Ah, OK. Turbo Tax is always asking for a SSN/ITIN. I may end up getting one for my spouse so I can efile, but glad to know it's not necessary.
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Dec 18, 2017 23:42
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King George posted:Ah, OK. Turbo Tax is always asking for a SSN/ITIN. I may end up getting one for my spouse so I can efile, but glad to know it's not necessary. Your spouse should not be on the tax return at all. A non-resident alien is not a qualifying person for HoH (unless they are a Canadian or Mexican resident who lives more than half the year with you and qualifies as your dependent.) If you don't have any other dependents, your options are MFJ or MFS. Gabriel Grub fucked around with this message at 03:03 on Dec 19, 2017 |
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Dec 19, 2017 02:59
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sale on Banksy art posted:Your spouse should not be on the tax return at all. A non-resident alien is not a qualifying person for HoH (unless they are a Canadian or Mexican resident who lives more than half the year with you and qualifies as your dependent.) Yeah, you do need a dependent besides them to do the Head of Household thing. Otherwise you’re stuck with MFJ and MFS, and software tends to ask for the number in both cases (MFS you’re supposed to put the spouse’s SSN so the IRS can match it with any other MFS return they file). You can still put NRA in the SSN spot for “nonresident alien” I believe and paper file a MFS return, but e-file won’t work without SSN/ITIN. If you have a dependent besides the nonresident spouse, you can pick head of household and software won’t ask for the spouse SSN.
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Dec 19, 2017 04:02
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Yeah, I had a kid this year so I can do HoH. I'll have to go back through the software and see how to remove my spouse. EDIT: just to confirm, I do have to say I in the return that I am married though, right? I am just treated as single for HoH purposes, not generally. Magic City Monday fucked around with this message at 09:17 on Dec 19, 2017 |
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Dec 19, 2017 08:56
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If I get married in 2018, does that mean I file the entirety of my 2018 taxes as married? If so holy trump tax cut.
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Dec 19, 2017 13:17
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Residency Evil posted:If I get married in 2018, does that mean I file the entirety of my 2018 taxes as married? If so holy trump tax cut. It's based on your status on December 31st. If you're married on the last day of the year, you have to file married.
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Dec 19, 2017 14:21
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King George posted:Yeah, I had a kid this year so I can do HoH. I'll have to go back through the software and see how to remove my spouse. Nope, the final return doesn’t have to say anything about the spouse when you’re doing the “considered legally unmarried for tax purposes” thing with a nonresident spouse. Just treat everything as HoH. If the software asks anything like “did you and your spouse live apart the last six months of the year” it should handle the flip to HoH OK if you answer yes, otherwise leave the spouse out completely so the program doesn’t screw up.
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Dec 19, 2017 18:50
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Marriage penalty still exists. Why? I thought Republicans loved marriages. Assholes.
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Dec 19, 2017 19:29
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potatoducks posted:Marriage penalty still exists. Why? I thought Republicans loved marriages. Assholes. Well, not since the supreme court screwed it all up
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Dec 19, 2017 21:01
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SpaceCadetBob posted:So just to make sure. If this thing passes this week it won’t actually have an effect on either individuals or businesses this April? Transition tax on deferred overseas earnings is this year for taxpayers on a calendar year.
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Dec 20, 2017 23:39
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I was curious to see how tax reform would affect me specifically, the NY times has a simple calculator. It seems that I'm in the sweet spot. Last (2016) year we hadn't had enough deductions to make it worthwhile to itemize, so doubling of the standard deduction is particularly good. edit: Total tax cut comes to approximately $3300. 25% tax bracket, filing married, standard deduction in previous year as mentioned. dreesemonkey fucked around with this message at 17:49 on Dec 21, 2017 |
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Dec 21, 2017 17:26
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I must have hit the drat sweet spot jackpot, mine says $6,450 tax cut
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Dec 21, 2017 18:57
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Heh, we came out to exactly zero.
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Dec 21, 2017 19:06
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http://taxplancalculator.com/ is my favorite of these. Gives you an exact dollar amount and lets you see how things change along with your variables.
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Dec 21, 2017 22:31
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potatoducks posted:http://taxplancalculator.com/ is my favorite of these. Gives you an exact dollar amount and lets you see how things change along with your variables.  I'd buy that for a dollar!
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Dec 21, 2017 23:18
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potatoducks posted:http://taxplancalculator.com/ is my favorite of these. Gives you an exact dollar amount and lets you see how things change along with your variables. That calculator left off the adjustment for pass-through income, section 199 being gone, miscellaneous itemized being gone - it's crap. CRAP.
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Dec 22, 2017 02:02
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