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Missing Donut posted:It sounds like you got a special lock-in deal to change software which expired. I use UT and my costs will be up about 5% this year over last year, but I'm on the standard pricing. It did have some specials (three free states aside from Oregon) but even after dropping the freebies it was a huge spike. Ugh. I'm probably just going to price shop harder this fall and compare around. Before I left Lacerte a while back it was $20k a year (1,200 returns annually).
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Feb 10, 2018 23:11
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Tortilla Maker posted:My wife is an employee (not 1099) who uses her own car for work purposes. If you're getting stuck, you can simply manually figure out what the expense *should* be and shove that on a blank line as an unreimbursed employee expense. "Unreimbursed portion of work miles. $X,XXX"
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Feb 10, 2018 23:13
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Gah, I was sure I was gonna be net zero this year. Of course I owe a grand. It's because I didn't realize I wasn't going to be able to deduct my mortgage insurance this year. There's always something.
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Feb 11, 2018 19:37
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Assuming I have a Roth 401k taken care of already, is there any benefit to having a Roth IRA over just a brokerage account as my primary investment vehicle, assuming only those two options?
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Feb 11, 2018 22:59
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PRADA SLUT posted:Assuming I have a Roth 401k taken care of already, is there any benefit to having a Roth IRA over just a brokerage account as my primary investment vehicle, assuming only those two options? So you don't have to pay any future capital gains taxes?
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Feb 11, 2018 23:02
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Droo posted:So you don't have to pay any future capital gains taxes? That's the only difference, you dodge cap gains on qualified withdrawals?
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Feb 11, 2018 23:10
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Hey tax CPA's/EA's: What do you do with clients who receive credit card sign up bonuses or bank account sign up bonuses and no 1099's?PRADA SLUT posted:That's the only difference, you dodge cap gains on qualified withdrawals? If you're already maxing your/wifes 401k's out (37k in 2017-18) you can stick an additional 11k into a Roth IRA. You may need to back door it if you're over the MAGI thresholds. Principal withdrawal from a Roth IRA is very simple. I wouldn't suggest ever withdrawing if you're not contributing at least 15% to your 401k as I hear catfood sucks, but if you are already set for retirement, you may consider using the Roth IRA as a tax preferred method of investing another 11k a year before you hit up taxable accounts. Aside, but possible relevant from your recent posts. You may want to run some projections on if you should be doing Roth or traditional 401k contributions but that is kind of out of scope of the forum / this thread. I typed up more and decided it wasn't worth posting. Like the thread title says, always, it depends!
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Feb 11, 2018 23:36
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PRADA SLUT posted:That's the only difference, you dodge cap gains on qualified withdrawals? "the only"? Do you have a calculator or excel or something?
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Feb 12, 2018 00:06
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AndrewP posted:Gah, I was sure I was gonna be net zero this year. Of course I owe a grand. I've heard that the budget bill passed earlier this week retroactively reinstated the deductibility of mortgage insurance for 2017.
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Feb 12, 2018 00:58
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cowtown posted:I've heard that the budget bill passed earlier this week retroactively reinstated the deductibility of mortgage insurance for 2017. HR 1892, signed 2/9/2018, extends PMI for primary residence through 12/31/2017. https://www.congress.gov/bill/115th-congress/house-bill/1892/text/eas2#toc-H8324FE4390A84B53BD8EB1E90D5D4DC9
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Feb 12, 2018 04:10
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Well, in a thrilling turn of events, after looking at last year's return I didn't even deduct it last year either because I'm over the $109k AGI cap. So the point is moot for me. Also 2016s 1098 counted both January months' mortgage interest, leading this year to only count 11 months and less interest to deduct. So I guess 2018 will have 13 months of mortgage interest again? MAN I love tax season
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Feb 12, 2018 05:26
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SiGmA_X posted:Hey tax CPA's/EA's: What do you do with clients who receive credit card sign up bonuses or bank account sign up bonuses and no 1099's? When I worked for a credit union, we included that in their annual interest income... so taxable interest.
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Feb 12, 2018 06:08
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sullat posted:When I worked for a credit union, we included that in their annual interest income... so taxable interest. It will eventually show up - you can tell because it's almost always a round number ($50, $100, etc.). If the client really, really needs their refunds you can file now and tell them to wait for the IRS to catch up to them later with a matching notice and to pay the balance then and move on.
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Feb 12, 2018 17:15
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If I make 80k a year and my dad makes nothing, and I am about to start renting out a property, can I have him collect the rent for himself in his name, and gift some back to me? For purposes of getting him some money and still getting some for myself at a lower tax bracket?
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Feb 13, 2018 00:56
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My wife got promoted in '17 and her new duties have her driving to meet clients quite a bit. The company reimburses her based on the federal mileage rate. Is the mileage she drove for work also tax deductible?
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Feb 13, 2018 05:18
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coronaball posted:My wife got promoted in '17 and her new duties have her driving to meet clients quite a bit. The company reimburses her based on the federal mileage rate. Is the mileage she drove for work also tax deductible? That would be straight forward double dipping tax fraud.
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Feb 13, 2018 13:34
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Zero VGS posted:If I make 80k a year and my dad makes nothing, and I am about to start renting out a property, can I have him collect the rent for himself in his name, and gift some back to me? For purposes of getting him some money and still getting some for myself at a lower tax bracket? No. The rental income goes to the property owner. And having your income arrive in your dad's name and then have him gift it to you is fraud. You could hire your dad to manage the property for you and pay him for that service, assuming that doesn't require some kind of license where you live. The management fees would be expenses on your schedule E.
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Feb 13, 2018 14:06
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coronaball posted:My wife got promoted in '17 and her new duties have her driving to meet clients quite a bit. The company reimburses her based on the federal mileage rate. Is the mileage she drove for work also tax deductible? Nah, that's a reimbursed expense. Depending on how it's reported though, she may still need to deduct on her return; if the amounts reimbursed are reported as wages paid, then you want to take those amounts as deductions so you don't pay tax on them. If the employer doesn't report them on 1099/W-2 (this is usually the case) then definitely don't take them as deductions, as she's not claiming that income on y'all's return anyhow.
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Feb 13, 2018 15:21
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Does anyone know how to report a taxable amount from an in service aftertax 401k to Roth 401k conversion? I have a 1099-R with code G in box 7. The instructions for 1040 and the 1099-R aren't much help. From googling I've seen random forum posts suggesting to put in in 16a/b (Pensions and annuities). This sounds wrong, but it does roll up into my AGI the way I'd expect.
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Feb 13, 2018 16:22
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potatoducks posted:I received a 1099-B from an association where I sold my share last year. I bought it for $500 a while back and sold it for $500. Should be an option to select for “basis not reported to IRS”, pick that and you can type in the original $500 cost, you’ll have notified the IRS properly if it gives you an 8949 form with the Schedule D. SiGmA_X posted:Correct. It's possible the tax prep softwares have yet to be updated. It's embarrassing that the brand new tax bill was so crappy that it needed amendment immediately. Naturally, already did a bunch of Schedule As without it. Amendment time! SiGmA_X posted:Hey tax CPA's/EA's: What do you do with clients who receive credit card sign up bonuses or bank account sign up bonuses and no 1099's? If the bank fails to include it at all, write in on line 21 is my usual response, but as mentioned it tends to get added to the interest or similar. quote:Yes, more or less. Roth is post-tax dollars contributed and grows/withdraws tax-free. Uh, just to clarify here, the 11k for Roth and 37k for 401k is the total out of pocket limit for BOTH spouses, NOT the amount for each individual. That’s $18,500 for 401k and $5,500 for Roth IRA in 2018, or $24,500 401k/$6,500 for Roth if over age 50. Also if you do the backdoor Roth, make sure you don’t have any other traditional IRA accounts or you get hit with tax consequences.
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Feb 13, 2018 16:27
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urnisme posted:No. The rental income goes to the property owner. And having your income arrive in your dad's name and then have him gift it to you is fraud. Hmm thanks, yeah I probably want the full income in my name anyway, so I can use that income to qualify for more mortgages on more rental property. I was just hoping there was some kinda Shawshank Redemption style tax break here.
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Feb 13, 2018 21:22
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Back in either 2013/2014 I paid <$10K for some stock from a company I had left (RSUs) that had vested. I paid taxes for the stock that year. This past year 2017, the company pretty much failed and had to sell themselves to another company. I got a return of hundreths of a penny to the dollar. I have yet to collect my payment for that. But my question is, can I write off the loss? If so is there a form I have to file for it? They sent me the agreement to release the funds, along with a tax form but I'm not sure if that's taking into account that I actually lost money on this deal. Strong Sauce fucked around with this message at 21:37 on Feb 13, 2018 |
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Feb 13, 2018 21:35
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Zero VGS posted:I was just hoping there was some kinda Shawshank Redemption style tax break here. Where did most of that movie take place? I don't recall. Oh that's right, PRISON.
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Feb 13, 2018 21:58
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Fhqwhgads posted:I know the tax withholding calculations are all changing now thanks to the new laws so I took this with a huge grain of salt, but out if curiosity I put all my info into turbo tax's withholding calculator and it said I could put up to 7 and still get a federal refund. My taxes are pretty simple, single, regular job, minimal taxable account, and I've always just put a 2 and called it a day. I was also just playing with the calculator, punched in our numbers for the year-to-date, and it said we should get $5000 back next April... I've been trying to figure out how much we should be withholding post tax bill, and I thought I had it right based on the new withholding tables, but now  . I make $100k, wife is at $70k, no allowances, we rent and don't have kids, I withhold at the single rate, and we ended up right around even this year. We just moved into a pricier place, so if I could withhold less that'd be great, but it's just hard to believe we're over-withholding that much. Guess I'll be waiting for the IRS to MAGA their withholding calculator 
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Feb 14, 2018 00:27
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On the subject of withholding rates, I'm fairly sure that I'm not going to have to pay federal taxes for 2018 since 2 kids' worth of credit now greater than my pre-credit tax liability (and I am accounting for loss of exemptions, new standard deduction amount). Can I just email my HR and tell them not to withhold federal taxes without waiting for the new W4?
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Feb 15, 2018 19:56
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Harveygod posted:On the subject of withholding rates, I'm fairly sure that I'm not going to have to pay federal taxes for 2018 since 2 kids' worth of credit now greater than my pre-credit tax liability (and I am accounting for loss of exemptions, new standard deduction amount). Can I just email my HR and tell them not to withhold federal taxes without waiting for the new W4? Did you not have any tax liability this year? Rules for being exempt from withholding require you to not have owed any taxes for the current year and not expecting to owe the next. AbbiTheDog posted:Where did most of that movie take place? I don't recall. Oh that's right, PRISON. Also note what Andy did for the warden was bad enough that when it was reported the warden committed suicide rather than face trial. (And while we’re addressing entertainment being misleading about taxes, most accountants are not super soldier autists as portrayed by Ben Affleck, much as many of us are nerdy enough to want to be).
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Feb 16, 2018 02:10
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MadDogMike posted:Did you not have any tax liability this year? Rules for being exempt from withholding require you to not have owed any taxes for the current year and not expecting to owe the next. Ah, okay. I did have like $1000. I'll just wait for new W4s I guess. Right now they're withholding about $110/month, so it's not life-changing, but it would have been nice. If things are the same in 2019, I'll remember to change it. Thanks a bunch! MadDogMike posted:(And while we’re addressing entertainment being misleading about taxes, most accountants are not super soldier autists as portrayed by Ben Affleck, much as many of us are nerdy enough to want to be). Oh. *throws brochure for CPA classes in trash*
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Feb 16, 2018 03:26
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MadDogMike posted:(And while we’re addressing entertainment being misleading about taxes, most accountants are not super soldier autists as portrayed by Ben Affleck, much as many of us are nerdy enough to want to be). Speak for yourself  Me on 4/18:  and also being socially awkward and failing to make even accidental eye contact
black.lion fucked around with this message at 18:46 on Feb 16, 2018 |
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Feb 16, 2018 18:44
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black.lion posted:Speak for yourself Only on 4/18? That's me from Feb 1 to Tax Day with extra on Mar 15 & Mar 20.
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Feb 16, 2018 18:51
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I don't have time to kill anyone right now other than clients that show up with a sweaty handful of crumpled receipts and say "HERE ARE MY EXPENSES"  black.lion 4/18: I HATE TAXESblack.lion 4/20:   TAX LIFE BEST LIFE
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Feb 16, 2018 19:01
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I’m too busy sleeping off the booze to kill people after the end of tax season really. Though I relate to the “killing people who show up with a box of receipts” thing.
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Feb 17, 2018 16:17
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So, I have a question about the first time homebuyer credit. If I had my house foreclosed on in 2011, at a loss, do I still need to keep repaying the $500 per year?
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Feb 17, 2018 16:32
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sullat posted:So, I have a question about the first time homebuyer credit. If I had my house foreclosed on in 2011, at a loss, do I still need to keep repaying the $500 per year? Start here and poke around. https://www.irs.gov/newsroom/first-time-homebuyer-credit-1 I don't know that answer off the top of my head, it's been years since I've seen that repayment and have just "data dumped" all info on it from my brain.
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Feb 17, 2018 17:31
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AbbiTheDog posted:Start here and poke around. quote:Q. What are the exceptions where I may not have to repay the full credit? The credit & repayment is such a mess. I'm *pretty sure* they don't need to repay it, but they have faithfully been doing so all these years because the IRS won't let them efile without including the repayment. They said they filed the 5405 form with the appropriate boxes checked, during that year, but of course they don't have copies of it. I guess they could file amended returns, but who knows what would happen.
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Feb 17, 2018 17:40
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So I’m doing the return for my brother-in-law and sister. He has an FSA that he contributes a small amount to for child care, but he didn’t use any of it (it was kind of a contingency in case grandma couldn’t take care of their baby). H&R Block At Home insists that I have to try to claim the child care tax credit because dependent care was on his W2, but since they didn’t pay for daycare (and essentially forfeited their FSA) I don’t have any care providers to fill out. I answered the questions as best I could. The software seems to refuse to let me not take the credit. I tried e-filing and it came back rejected with an F2441-002-03 which I’m sure is related to that. Any ideas?
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Feb 17, 2018 23:32
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kefkafloyd posted:So I’m doing the return for my brother-in-law and sister. He has an FSA that he contributes a small amount to for child care, but he didn’t use any of it (it was kind of a contingency in case grandma couldn’t take care of their baby). H&R Block At Home insists that I have to try to claim the child care tax credit because dependent care was on his W2, but since they didn’t pay for daycare (and essentially forfeited their FSA) I don’t have any care providers to fill out. I answered the questions as best I could. The software seems to refuse to let me not take the credit. I tried e-filing and it came back rejected with an F2441-002-03 which I’m sure is related to that. Any ideas? Just leave the FSA out of the W-2 input? It's just a pre-tax account. It doesn't impact the returns themselves.
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Feb 17, 2018 23:49
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Damnit. Literally minutes after finding out my return was accepted, I realized I hosed up form 8606. Do I have to file an amended return or can I submit a new 8606 by itself? I see this when trying to investigate this by Google: "Although Form 8606 is normally submitted with a timely-filed Form 1040, the IRS will process a late-filed Form 8606—even one that is filed after the normal three-year statute of limitations for claiming a refund has expired. The Form 8606 can be submitted without a Form 1040 or a Form 1040X." That's if I didn't submit any 8606, but in this case I submitted an incorrect one.
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Feb 17, 2018 23:55
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Admiral101 posted:Just leave the FSA out of the W-2 input? I was thinking about that, but wouldn’t that cause an info mismatch? It was listed on box 10 of his paper W2 as dependent care. If it’s ok To just omit it then yeah I’d go that route.
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Feb 18, 2018 00:00
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kefkafloyd posted:I was thinking about that, but wouldn’t that cause an info mismatch? It was listed on box 10 of his paper W2 as dependent care. If it’s ok To just omit it then yeah I’d go that route. You need to input box 10. The amount in box 10 *should* carry to the Form 2441 and be "backed out" from the total expenses paid (Part III on page 2, carries to page 1). If you don't have enough expenses to cover what was pre-tax in Box 10 the difference carries to your W-2 wage line on the front of the 1040 and added to your box 1 wages. Failure to account for Box 10, either through completing the 2441 or adding it to Line 7 with the little acronym (I don't remember what the acronym is off the top of my head, but the software will list it) means the IRS will chase you down in 10-12 months after filing telling you there's a fuckup on the return. They also tell the state so the state decides to pile on and screw you as well, just with less lube. Example: You have W-2 wages of $70k Box 10 lists $5k, but you didn't send little Johnny and Susie to daycare, you just forgot you were deferring money. Line 7 of the 1040 isn't going to be $70k, it's going to be $75k. Pay attention next year, dingbat. Example 2: Same facts as #1, but you *did* send little Johnny and Susie to Daycare, and put the max allowed ($6k - $3k per kid, max $6k for a family) on the 2441 Form. You spent $6k, but $5k was run through a pre-tax plan, so you only figure the credit on the difference you paid out of pocket ($1k, applied to the little rate chart on the bottom of the 2441 based on your total income). Clear as mud, and why tax prep costs so drat much.
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Feb 18, 2018 00:39
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Yeah, I'm used to doing Schedule C in my sleep, but this dependent stuff is all new to me and I'm learning the hard way. Thanks for the info, and that's what I understood from what I was reading. It definitely helps to have confirmation. After going out to dinner and then reviewing the actual forms (and not the questionnaire), it turns out I forgot to mark the Box 10 as an FSA, so it was treating it in a way I wasn't expecting. I went back through the questionnaire, reclassified it as an FSA (with a forfeit) and now everything lines up, no complaints from the software. It was treating it like a company direct payment arrangement, which is definitely not the case. Lesson learned: if it's not working right, take a break and re-read all your form entries, not just questionnaires. The amount is negligible (something like $500 total in the FSA) so it's not a painful forfeit, but I think this year they're actually going to put my nephew into daycare for part of the year so they'll actually be using it in 2018. kefkafloyd fucked around with this message at 01:03 on Feb 18, 2018 |
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Feb 18, 2018 00:55
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