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Zero VGS posted:
Don't spend it all in one place! It's got me paying $179 but it doesn't take into account the retirement savings tax credit, which (unless it got changed) should be worth $400 to us.
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Dec 22, 2017 04:41
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AbbiTheDog posted:That calculator left off the adjustment for pass-through income, section 199 being gone, miscellaneous itemized being gone - it's crap. CRAP. Yeah I mean it's not friggen turbotax and it's not gonna give you a blowjob. But it's a good approximation for most people without being too complicated. Kitces also has a solid writeup. https://www.kitces.com/blog/final-gop-tax-plan-summary-tcja-2017-individual-tax-brackets-pass-through-strategies/
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Dec 22, 2017 05:33
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Gotta say, that baby tax credit is a hell of a thing. Between having a second one in the oven for delivery next year, and the expanded credit, 2018 taxes looking pretty good.
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Dec 22, 2017 15:05
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It also calculated our state income taxes wrong by $2000, which throws off the SALT calculation. It’s going to be very hard for married couples to itemize now. Where do you get $24,000 in deductions? Tons of mortgage interest plus hitting the max for SALT? smackfu fucked around with this message at 16:01 on Dec 22, 2017 |
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Dec 22, 2017 15:57
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^ Yea, I was pretty sure I'd end up being close to still being able to itemize, but nope not even. With SALT being capped you are going to need one hell of a mortgage to make up the rest. I'm losing about 2K in deductions from the SALT cap, so relying on mortgage interest and charitable donations was not going to happen. Standard deduction for me pretty much for the foreseeable future I guess.
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Dec 22, 2017 16:13
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I just realized that it appears traditional IRA deductions are allowed regardless of income for *both* spouses if one spouse is not covered by a retirement plan. True or false? I've been treating it as false and only deducting the non-working spouse's contributions. edit: IRS link: https://www.irs.gov/retirement-plan...nt-plan-at-work baquerd fucked around with this message at 20:57 on Dec 22, 2017 |
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Dec 22, 2017 20:44
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baquerd posted:I just realized that it appears traditional IRA deductions are allowed regardless of income for *both* spouses if one spouse is not covered by a retirement plan. True or false? I've been treating it as false and only deducting the non-working spouse's contributions. It's just for the spouse not covered by a retirement plan. The top of the chart says "If you're not covered by a retirement plan at work", so the spouse that is covered by a retirement plan would not be following those rules.
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Dec 22, 2017 22:06
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Ancillary Character posted:It's just for the spouse not covered by a retirement plan. The top of the chart says "If you're not covered by a retirement plan at work", so the spouse that is covered by a retirement plan would not be following those rules. Well, that makes more sense, thanks.
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Dec 22, 2017 22:46
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What is "legitimate" earned income for a very young child/toddler? I was talking to somebody today who was talking about how they'd gotten some photos of their kid and used them in marketing materials, and for that paid their toddler, and used that to fund an IRA for said toddler. This seemed sketchy as hell to me but cursory googling seems to suggest that this is not unprecedented.
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Dec 24, 2017 05:59
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waloo posted:What is "legitimate" earned income for a very young child/toddler? I was talking to somebody today who was talking about how they'd gotten some photos of their kid and used them in marketing materials, and for that paid their toddler, and used that to fund an IRA for said toddler. The bar is pretty low. It would be sketchy if (for embellishment sake) you paid your crotchfruit the same amount as your salary and you had no evidence that you used them for anything besides posting pictures on facebook and zero business purposes. In other words, you have to actually DO what you said you did.
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Dec 24, 2017 15:09
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Question about the tax reform bill: I'm in NY and have read that many people here are pre-paying their 2018 property tax so they can deduct it in 2017 before the state/local cap goes into effect (and that it may or may not actually help). I rent, so I don't have any property tax. Can I, like, pre-pay income tax, or do some other weird beneficial thing before the end of 2017? Or do I just get screwed next year by a cap that's less than half of my state/local tax?
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Dec 29, 2017 06:34
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The bill specifically disallows deducting prepaid income tax.
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Dec 29, 2017 13:44
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Overpaid/prepaid sales tax still a gray area tho
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Dec 29, 2017 16:35
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I just got a nastygram from the IRS saying they they had $5000 extra reported to them in "securities" from my job in 2013. That was company stock, but I had to purchase it at $900 each month to receive $1000 worth of stock each month. There's no way I could have received $5000 in value from that in a year. How do I explain that to the IRS?
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Dec 29, 2017 19:55
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Find proof of the payments, mail that to the IRS and pay tax on the gain - when in doubt the IRS will assume no basis (and thus tax the whole bag as gain) and assume yer either gonna pay it, or do the legwork to prove otherwise. The IRS is clawing in penalties of convenience anywhere they can, its sort of their MO, we've seen some crazy requests to pay dubious "penalties" this whole last year.
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Dec 29, 2017 20:36
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CA-specific question: We're married, 2 kids, roughly $110K in income, $80K which is wages, $30K from a business. I usually itemize for the home office and business deductions. I have $2000 in property taxes unpaid for the rest of '17 and through June of '18. Should I pay that today to get it on my '17 return? Alternatively: I also owe about $2500 to the CA Franchise Tax Board for unpaid state income tax from 2015. Can I pay that off and deduct that for '17?
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Dec 29, 2017 21:56
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This whole “switch withholding rates during the year” thing is going to be fun. Especially when I’ve got two bonuses that will be withheld at 25% and my top bracket is 15% now and 12% with the new code. So I need to figure out what to adjust my allowances to for now, and then again once the new withholding starts
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Dec 29, 2017 22:15
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coronaball posted:CA-specific question: We're married, 2 kids, roughly $110K in income, $80K which is wages, $30K from a business. I usually itemize for the home office and business deductions. I have $2000 in property taxes unpaid for the rest of '17 and through June of '18. Should I pay that today to get it on my '17 return?
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Dec 29, 2017 23:10
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I am not a US citizen, but live and work in the US (WA) as a resident alien. My father is not a US citizen and does not live in the US. He has a US Bank of America bank account, and has a substantial amount of money in his savings account there, at least 1 million dollars. He intends to transfer this money to my US BoA checking account so that I can invest it under my own name. He can just do this transfer from his phone, even, right now, but I'm not sure transferring such a large sum might necessitate declaring it to somewhere, or paying any taxes on it. Can you please help me out? Thanks in advance!
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Dec 30, 2017 13:56
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My understanding is that for the state/property tax to be deductible in 2017 is that it has to be "assessed". So if your county has already assessed the tax and you pre-paid it before 12/31, you're OK. But if they haven't assessed it, you're out of luck.
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Dec 31, 2017 02:59
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UnfurledSails posted:I am not a US citizen, but live and work in the US (WA) as a resident alien. My father is not a US citizen and does not live in the US. He has a US Bank of America bank account, and has a substantial amount of money in his savings account there, at least 1 million dollars. He intends to transfer this money to my US BoA checking account so that I can invest it under my own name. Near as I understand it, you do have to report receiving a foreign gift of that large an amount using Form 3520, as discussed here. I'm not entirely sure if your father will need to file US gift tax, is the account actually based in the US or is it an account in a branch of Bank of America overseas? If the latter, he should be OK without doing a US gift tax return I believe (I know putting money in a branch of a foreign bank that's in the US counts as a US banking account for tax purposes, I believe vice versa applies for a branch of a US bank overseas). Even if subject to needing to file a US gift tax return, he probably won't need to actually pay any tax on it since there's a lifetime exclusion of over $5 million for gift/estate taxable income before any actual tax is due (and in '18 I think that gets cranked up by the new bill again) and you yourself never pay tax on it, the Form 3520 is for reporting it. He may also need to check his country's own laws about gift tax of course. sullat posted:My understanding is that for the state/property tax to be deductible in 2017 is that it has to be "assessed". So if your county has already assessed the tax and you pre-paid it before 12/31, you're OK. But if they haven't assessed it, you're out of luck. Correct, you can't just pay "what I should owe", you have to have an actual bill for an amount. This generally means either back taxes or if they let you pay in installments and one would normally be due in 2018 (which you could pay early to get on your 2017 tax filing in these next couple months) for most cases. Some states I think were looking at pushing out some emergency executive orders and the like regarding this to get assessments out, not sure if any went through though. coronaball posted:CA-specific question: We're married, 2 kids, roughly $110K in income, $80K which is wages, $30K from a business. I usually itemize for the home office and business deductions. I have $2000 in property taxes unpaid for the rest of '17 and through June of '18. Should I pay that today to get it on my '17 return? So in your case Corona, paying this stuff counts because both of there were already assessed as mentioned above, so pay what you can of either of those before the end of the year and it should be claimable in full for itemized deductions for this upcoming tax season.
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Dec 31, 2017 04:45
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Well apparently I quite hosed up my withholding. Despite a relatively normal tax situation - single, one job, no house, no substantial investment income, a federal allowance of 2 on my W-4 led to underpayment of $15k. I think I'm okay regarding penalties as I paid more than 100% of last year's taxes, but poo poo. Let this be a lesson to people: check out your withholding earlier in the year, especially if you receive a large bonus and they use the 25% method for withholding. In the grand scheme of things it's fine, just a surprise - I thought I'd met my goals for the year but this means I didn't, not really.
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Dec 31, 2017 21:23
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ohgodwhat posted:Well apparently I quite hosed up my withholding. Despite a relatively normal tax situation - single, one job, no house, no substantial investment income, a federal allowance of 2 on my W-4 led to underpayment of $15k. I think I'm okay regarding penalties as I paid more than 100% of last year's taxes, but poo poo. Not a tax expert, but the highlighted parts are what don't add up. Obviously it depends on what your tax bracket was, but why would you take a 2 when the default scenario would be 1? And was the bonus unexpected?
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Jan 1, 2018 03:08
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balancedbias posted:Not a tax expert, but the highlighted parts are what don't add up. Obviously it depends on what your tax bracket was, but why would you take a 2 when the default scenario would be 1? And was the bonus unexpected? Filling out a W-4 with those parameters leads to 2 allowances. Even if I had it sent to 0, I'd be way behind anyway though. The bonus wasn't unexpected, I just didn't run the numbers about how it would affect my actual tax burden. I'm not asking for help, just offering a cautionary tale that people should double check these things...
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Jan 1, 2018 03:37
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Zero VGS posted:I just got a nastygram from the IRS saying they they had $5000 extra reported to them in "securities" from my job in 2013. That was company stock, but I had to purchase it at $900 each month to receive $1000 worth of stock each month. There's no way I could have received $5000 in value from that in a year. How do I explain that to the IRS? Talk to a CPA/LTC/EA as soon as you can. You've gotten a CP2000 automated notice, and the IRS isn't too bad, but if you live in a state with income tax the state *might* jump all over you (Oregon is particularly nasty). What probably happened is the IRS only sees the $1,000 stock per month (for maybe five months) but you probably picked all of the taxable income up on your W-2 already (look in box 12, typically the income you did recognize is listed as code "V"). You just need to tell the IRS what happened.
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Jan 2, 2018 19:59
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Has anyone seen their taxes go up? My federal tax for January bumped up a bit. It's annoying.
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Jan 3, 2018 15:25
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EAT FASTER!!!!!! posted:Has anyone seen their taxes go up? My federal tax for January bumped up a bit. It's annoying. The new withholding tables have not been released yet, so your company is probably just being a bit conservative until they do. Not sure why they wouldn't just keep using 2017's though, that's what we are doing.
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Jan 3, 2018 15:33
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Xenoborg posted:The new withholding tables have not been released yet, so your company is probably just being a bit conservative until they do. Not sure why they wouldn't just keep using 2017's though, that's what we are doing. Ah, good. I think I might have earned a few more dollars this month than last, but the base salary didn't change and my withholding went up so I got a little miffed. Do you know when they'll be releasing the new tables?
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Jan 3, 2018 15:39
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EAT FASTER!!!!!! posted:Ah, good. I think I might have earned a few more dollars this month than last, but the base salary didn't change and my withholding went up so I got a little miffed. Do you know when they'll be releasing the new tables? Looks like they expect them to be ready sometime in February: https://www.irs.gov/newsroom/irs-statement-withholding-for-2018
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Jan 3, 2018 16:09
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I don't understand fully. With the new taxplan, should we be waiting longer than normal to do taxes? I usually like to get mine done around the last week of Feb. I don't have anything really. I don't own a house, no kids/wife. I have student loans that I pay off, a 401k, and sub 5k in random stock picks/buttcoin. I usually just turbotax it myself. Thanks..
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Jan 3, 2018 16:31
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Xenoborg posted:Looks like they expect them to be ready sometime in February: I should have known I could find it somewhere, thanks for pointing it out to me.
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Jan 3, 2018 16:42
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deong posted:I don't understand fully. With the new taxplan, should we be waiting longer than normal to do taxes? I usually like to get mine done around the last week of Feb. I don't have anything really. I don't own a house, no kids/wife. I have student loans that I pay off, a 401k, and sub 5k in random stock picks/buttcoin. I usually just turbotax it myself. No, you should not wait longer, since none of the new tax plan changes your taxes for 2017 unless you perhaps own property, which you do not.
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Jan 3, 2018 16:50
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KYOON GRIFFEY JR posted:No, you should not wait longer, since none of the new tax plan changes your taxes for 2017 unless you perhaps own property, which you do not. Thanks. Thats what I had thought but wanted to verify.
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Jan 3, 2018 16:56
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I wanted to check that I haven't done something dumb (the answer is always "yes", ofc) I file taxes but don't live in the US, so on my 1040 (completed via TurboTax) I filled in my foreign address when asked for my home address. This has led to the IRS sending me notices of stuff that inevitably arrives weeks if not months late due to international mail issues. I use Traveling Mailbox (a mail scanning service) for most of my US correspondence so I figured I could just have the IRS mail me at that address. So mid 2017 I filed form 8822 and informed my Traveling Mailbox address. Reading over the form again, I think form 8822 is supposed to only be used to inform my actual place of residence? Did I gently caress up? Is there a different form for this? Or is there no way of having a separate mailing address from your place of residence? I'm working on my 2017 taxes and I figure I'd ask here about it before filing those, since I have to inform my address again. Edit: I'm mostly worried about the state my mailing address is in thinking I haven't been filing my state taxes or something like that. 100% of my income is foreign.
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Jan 4, 2018 21:41
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KYOON GRIFFEY JR posted:No, you should not wait longer, since none of the new tax plan changes your taxes for 2017 unless you perhaps own property, which you do not. Thanks for this!
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Jan 5, 2018 01:23
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Ur Getting Fatter posted:I wanted to check that I haven't done something dumb (the answer is always "yes", ofc) You can totes have a mailing address that's separate from your physical address. But what happens if the IRS send you a refund? Are you going to get a scan of the refund check?
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Jan 5, 2018 04:49
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If a bonus comes with your paycheck, does it get taxed at a flat 25% or withheld at a higher amount but still taxed in the end at your normal rate?
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Jan 5, 2018 19:40
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22 Eargesplitten posted:If a bonus comes with your paycheck, does it get taxed at a flat 25% or withheld at a higher amount but still taxed in the end at your normal rate? Does the W2 form that both you and the IRS receive at year end with all of your salary and withholding information have a separate place to put regular salary vs bonus income? So, how would the IRS know how much of your pay is "bonus" in order to tax it differently?
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Jan 5, 2018 19:50
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Droo posted:Does the W2 form that both you and the IRS receive at year end with all of your salary and withholding information have a separate place to put regular salary vs bonus income? I don't think the actual taxes you owe changes based on bonus or not, the 25% is just one of the methods the IRS suggests (requires?) for withholding bonuses.
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Jan 5, 2018 19:54
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Makes sense, I guess. If it’s noted as a bonus on the W2 it’s taxed at 25%, but if it’s part of your normal paycheck it’s taxed like normal? They said it’s coming with the paycheck, hopefully they mean on it rather than just at the same Time. I’m already talking with Payroll about something else, I’ll ask that too. Ah, looks like the guy above might be right. TurboTax’s blog said it was taxed at 25%, but I think that must have been a typo since the IRS website refers to it as a withholding. 22 Eargesplitten fucked around with this message at 20:01 on Jan 5, 2018 |
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Jan 5, 2018 19:57
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