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Admiral101 posted:A few years ago I would have agreed you would not have nexus in Georgia due to not having any kind of physical presence, but this area of state taxation has changed a ton in the past couple years. Admiral101 posted:A few years ago I would have agreed you would not have nexus in Georgia due to not having any kind of physical presence, but this area of state taxation has changed a ton in the past couple years. Ancillary Character posted:If you truly don't owe Georgia any state income tax, you can get all the withholding back when you file a state income tax return with Georgia. If you're absolutely sure you don't owe Georgia money, you can see if you can set your state exemptions sky high on the W4 equivalent to essentially have nothing withheld. I think these 100% remote workers were told to set their state exemption to some very high number so they have zero withheld. I know some ~20% remote workers and they adjusted their withholding to get state withholding down to what it really should be.
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Dec 8, 2018 21:59
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It fees weird because you basically just file a return that says “no, there is no income in your state so no taxes due!” It feels like there should be some greater scrutiny of it.
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Dec 8, 2018 22:45
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Admiral101 posted:A few years ago I would have agreed you would not have nexus in Georgia due to not having any kind of physical presence, but this area of state taxation has changed a ton in the past couple years. Online/remote work drives everybody nuts, just went through some confusion about whether web hosting was considered in the US for a client who did all their work and lived overseas. Since the actual server is located in the US, our research team finally got back to me with a message to the effect of "we're not sure, but think that's taxable in US?". Gave me kind of a laugh they had to hedge their bets a bit too, but then again my experience with 1040NR suggests to me people who do it on a more frequent basis must eventually snap and run around screaming "Effectively connected?! Effectively connected to a US trade?!?!"  .smackfu posted:It fees weird because you basically just file a return that says “no, there is no income in your state so no taxes due!” It feels like there should be some greater scrutiny of it. It may get audited eventually (they can set the system to recognize somebody always getting all their withholding back after all), but if the person in question is not even going to the state on a frequent basis I don't see how the state could show any basis for taxation. Otherwise every corporate subsidiary which so much as mails to the in-state part of the organization would be subject to state tax, which is obviously illogical. But wouldn't surprise me if they are used to these kinds of issues, it's got to be coming up more and more. Might not even be the corporation screwing up if Georgia happens to have some kind of "withhold for every employee" law that the company feels liable for. Though on the subject of complicated corporate state withholding - I kind of wonder what the heck professional sports teams use for their accounting software given players owe taxes to every state they play in. That's got to be one giant W-2 at the end of the year with all the state copies and a terrifying number of state tax laws to keep track of for the preparer in question. Motronic posted:You have to report it. It's informational, and counts against your lifetime limit. That is all. I'll grant that it's annoying to have another tax return to do even if you don't owe taxes, especially if you're somebody who pays to have your returns done. Can't do Form 709 in TurboTax or the like after all, and while not that confusing to me for basic usage I pity somebody trying to pull one together with a layman's understanding of taxes. black.lion posted:Crossposting from the Accountant's thread: Still working that way myself so can't give too much info (I've also got corporate resources they probably don't), but talked to some of the new EAs we have at work about it a little while ago and they recommended these books themselves. They did say don't get the combined edition but get the individual guides separately, apparently merging them together messes up the material/winds up with stuff missing. Having actual study groups helps a bunch too. Other than that still trying to finish learning how to do corporate taxes at all before I go towards the actual exam, so can't offer much.
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Dec 9, 2018 00:49
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MadDogMike posted:Online/remote work drives everybody nuts, just went through some confusion about whether web hosting was considered in the US for a client who did all their work and lived overseas. Since the actual server is located in the US, our research team finally got back to me with a message to the effect of "we're not sure, but think that's taxable in US?". Gave me kind of a laugh they had to hedge their bets a bit too, but then again my experience with 1040NR suggests to me people who do it on a more frequent basis must eventually snap and run around screaming "Effectively connected?! Effectively connected to a US trade?!?!" Yeah, that area of the law is currently unsettled. I've seen people take positions on either side, this article does a good job discussing the issues: https://www.americanbar.org/groups/young_lawyers/publications/the_101_201_practice_series/the_evolution_of_cloud_computing_taxation/
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Dec 10, 2018 18:54
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In 2016, my income was high enough for the AMT. I can't remember if I elected to used the simplified method or not to calculate my FTCs (I live abroad and use FTCs to cover my tax burden). For 2016, filed two Form 1116s (one normal and one with an additional heading of "alt min tax - general"). Is the way to tell which calculation method was used is to compare line 17 and see if they're the same? If so, I did simplified and if not. I didn't?
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Dec 11, 2018 10:32
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Tax season is almost upon us, and my work laptop is on the fritz. I do a lot of freelance work and need to replace my personal work machine with a $800-1200 device, how does this work this late into the year? Do I still get to write it off in my business expenses for 2018 or would it raise eyebrows given that it's kinda late in the year? It is 100% meant for my freelance side work (I have a chromebook and desktop for lounging about), so I'm not worried about that part of the equation, I'm just wondering if it's still a valid expense given that it's still 2018 and I need the replacement within the week for a pretty major project. It'd be nice if I could have it deducted from my taxes! I've kept up with quarterly payments, and do have a regular 40 hour a week W2 job if that matters in any way. Google has given me a few mixed responses but the general tone seems to be "yeah it's a valid expense, go for it."
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Dec 13, 2018 05:42
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I'm no tax lawyer but I am pretty certain you could buy that thing just before midnight NYE and deduct it this year.
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Dec 13, 2018 08:57
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KingSlime posted:"yeah it's a valid expense, go for it." it is, go for it!
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Dec 13, 2018 12:42
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Awesome, that's what I was hoping to hear! Thanks, y'all!
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Dec 13, 2018 19:15
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Ixian posted:I'm no tax lawyer but I am pretty certain you could buy that thing just before midnight NYE and deduct it this year. It also needs to be in your possession and in service before the end of the year.
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Dec 13, 2018 22:35
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I'm doing my only independent job for the year right now (everything else has been W2). Based on what I did, I was going to charge the guy about $480. However, looking at 1040 Schedule SE, I wouldn't owe any self-employment taxes if my total self-employed income was less than $433 ($400 × 92.35%). So, I would actually end up with more money in my pocket (and one less tax form to file) by only charging $430. Does that sound right? In case it matters, my wife (MFJ) will have about $2000 in 1099 income as well. I don't think that she would affect my SE tax, but it's the first time for us having any.
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Dec 21, 2018 16:00
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When filing a blank 1065 as described in 26 CFR 1.761-2 for subchapter K exclusion, should it be signed and dated?
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Dec 22, 2018 20:57
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So is anyone around to accept forms/checks being mailed to the IRS currently?
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Dec 27, 2018 06:50
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Small White Dragon posted:So is anyone around to accept forms/checks being mailed to the IRS currently? 
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Dec 27, 2018 07:02
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That's, by far, my favorite flair.
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Dec 27, 2018 18:51
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Small White Dragon posted:So is anyone around to accept forms/checks being mailed to the IRS currently? Postal service will obviously still deliver it, but I expect a lot of it is just going into a pile until the shutdown clears. I suppose checks cashing might be an essential service at least, about 12% of the IRS is still at work. Dunno how it will mess with tax filing, apparently the new form design stuff isn’t affected if the articles I’ve seen are correct (we honestly pretty much got the final drafts for most of them on the 21st I believe) and they were probably delaying processing returns thanks to all the changes anyway. They are apparently talking about bringing more people back from furlough if this lasts long enough, so who knows.
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Dec 28, 2018 23:17
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I traveled throughout the US for all of 2018 as a salaried employee (changed jobs in July but similar setup). I own property in North Carolina; however, it was rented for the entirety of 2018 (and has been for the past 4 years). I did not hold a lease anytime during 2018 either (AirBNB, hotels, etc.). My driver's license is registered in NC. I spent the most time cumulatively and consecutively in Texas, but the total amount of time was less than 183 days. Would I file as a resident in NC since it is my last official state of residence?
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Jan 8, 2019 07:01
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Quick question as to how I should file my taxes... Typically I just use H&R Block Free for my taxes and it's been great. Last year I got married and decided to to $85 for someone to prepare it for us. I felt like the guy who prepared it for us, just entered all of our data into a Turbo Tax. The guy didn't even do any additional deductions until I asked him about it. I don't really want to go to another tax guy. I've been told since we do not have any assets we don't need a tax guy. Anyway, I was unemployed from Oct-2017 until Oct-2018. How should I go about preparing my taxes? Should I just use the free H&R block again, buy the deluxe? Or just go to another tax guy?
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Jan 9, 2019 20:46
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obi_ant posted:Typically I just use H&R Block Free for my taxes and it's been great. Last year I got married and decided to to $85 for someone to prepare it for us. I felt like the guy who prepared it for us, just entered all of our data into a Turbo Tax. The guy didn't even do any additional deductions until I asked him about it. I don't really want to go to another tax guy. I've been told since we do not have any assets we don't need a tax guy. The guy you prepared your return for $85 did indeed just enter it into some basic software and you're probably best off DIY with a free solution. I just switched this year from H&R Block and am loving TurboTax's interface in comparison. You could also check out FreeTaxUsa or CreditKarma for free tax filing.
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Jan 9, 2019 21:52
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I need to get an ITIN for my non-resident alien spouse. Reading the W7 form instructions it seems I need to attach a copy of her tax return, which we won't be able to finalize until March, probably. We're here in the US for a few more weeks, and assuming this loving shutdown ever ends, I was hoping we'd just go to a taxpayer assistance center and just file her W7 there, since apparently otherwise she'd have to mail her physical passport (wtf). I was hoping maybe I'm missing some other option you guys could tell me.
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Jan 9, 2019 23:39
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Ur Getting Fatter posted:I need to get an ITIN for my non-resident alien spouse. Reading the W7 form instructions it seems I need to attach a copy of her tax return, which we won't be able to finalize until March, probably. Getting an ITIN is the loving worst. You do indeed have to send in her actual passport, which is insane. The other way to do this is to use a qualified acceptance agent in your country of residence, we can certify that she is a real person who exists. Big 4 firms do this, as well as the firms listed by country here: https://www.irs.gov/individuals/international-taxpayers/acceptance-agent-program
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Jan 10, 2019 00:59
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Does it have to be an agent back home or can we do it at an agent here in the US before we head back?
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Jan 10, 2019 02:47
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Ur Getting Fatter posted:Does it have to be an agent back home or can we do it at an agent here in the US before we head back? Pretty sure there are acceptance agents abroad, just, you know, a lot fewer of them. But you need to turn in the completed package with the acceptance agent, so your return would have to be complete.
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Jan 10, 2019 03:43
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Ah, ok, that makes sense. No agents listed in my home country but I have a couple of friends working at some of the big 4. I’ll see if they can ask around.
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Jan 10, 2019 04:07
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AFAIK, your non-resident alien spouse doesn't need an ITIN unless you're filing as MFJ (edit: just re-read your post, I guess that's what you're doing) or you're trying to claim them as some kind of dependent.
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Jan 10, 2019 08:42
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Speaking as a certifying acceptance agent (make sure it's specifically a CAA, we're the only ones who can certify a copy of the documents), only points I'd mention in addition is that you both probably want to be present; you'll both need to sign the return and your spouse needs to sign the W-7. If your spouse hasn't been in the US long enough to file as a resident but you have/are US citizen, you'll also need to fill out an election statement saying you wish to treat them as resident. This will make any income they earned overseas last year taxable in the US though, so be cautious (mind, you can usually exclude the income or write off the taxes based on what you paid in the non-US country so it doesn't usually affect the bottom line much). The ITIN application has to be sent in by the preparer along with the return, and needs to stay in their custody after prepared, so as mentioned come prepared to finish the return (including any of the previously mentioned foreign income information) when you do the ITIN application. Usually you want to bring the passport, that's the one document that can be used to certify identity AND foreign citizenship by itself. In addition to the passport part of it, we also are usually supposed to include the visa information and a copy of the stamp showing what date they originally entered the country. If those items are in an older passport, bring that one with the newest one. If the date on the actual visa is expired bring the form immigration sent you showing the extended date so the CAA can send a copy of that along. Once the return and ITIN application are sent off, the IRS will process both together. It usually takes about a month but since I'm pretty certain the shutdown has taken the ITIN portion of the IRS out of business it may be longer. Your return will go like any standard mailed return as far as refund being processed/paid. The IRS will also send a letter called a CP595; this has the actual ITIN on it and more importantly counts as an official identity document (kind of like the social security card) so keep it securely stored somewhere. The new ITINs do NOT expire like the old ones are, they stay active so long as they are not left unused more than three consecutive years. If the IRS has an issue they'll send a letter saying as much, address as needed though any decent CAA should be willing to assist as needed. Note I am speaking from my experience/requirements as an H&R Block CAA, so requirements may vary somewhat depending on where you go. Magic City Monday posted:AFAIK, your non-resident alien spouse doesn't need an ITIN unless you're filing as MFJ (edit: just re-read your post, I guess that's what you're doing) or you're trying to claim them as some kind of dependent. Also true; in fact, unless they can be legally claimed on the tax return (only possible for resident 1040 or 1040-NR under certain treaty conditions for particular countries) you can't get an ITIN at all, the IRS only issues them with a demonstrated legal need, generally by filing a tax return with that person on them.
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Jan 10, 2019 08:55
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ya dangus posted:I traveled throughout the US for all of 2018 as a salaried employee (changed jobs in July but similar setup). I own property in North Carolina; however, it was rented for the entirety of 2018 (and has been for the past 4 years). I did not hold a lease anytime during 2018 either (AirBNB, hotels, etc.). My driver's license is registered in NC. I spent the most time cumulatively and consecutively in Texas, but the total amount of time was less than 183 days. Its not that simple. There are about 13 factors that the IRS and states use to weigh domicile. They are not all equal, but they could also at the same time be weighed equally. From the very basic info you provided I would make an argument for Texas, but its really a facts and circumstances type test. You can PM me if you want to flesh out more of this. It sounds like you have multiple issues that should be addressed.
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Jan 10, 2019 22:00
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PatMarshall posted:Getting an ITIN is the loving worst. You do indeed have to send in her actual passport, which is insane. The other way to do this is to use a qualified acceptance agent in your country of residence, we can certify that she is a real person who exists. Big 4 firms do this, as well as the firms listed by country here: https://www.irs.gov/individuals/international-taxpayers/acceptance-agent-program I don't do a lot of this, but as a favor (ugh) to some Australian clients we helped them get an ITIN. It was awful. I'm never doing it again.
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Jan 10, 2019 22:11
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Thanks all for the super useful advice on the ITIN. This is some byzantine bullshit but, long story short, without filing MFJ I miss out on the retirement savings credit which is a large chunk of change at my income. I'm gonna run the numbers a bit and see if the costs of getting an ITIN + filing MFJ end up being enough that it's just not worth it even for that.
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Jan 11, 2019 03:14
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Ur Getting Fatter posted:Thanks all for the super useful advice on the ITIN. I will say cost wise H&R Block does not actually charge for an ITIN beyond the base price of doing the tax return itself, and even if you had one prepared without a return you’d generally pay $25-35 for the W-7 for one person. Obviously this may not hold for franchise branches or other companies, but honestly given the tax benefits of MFJ I’ve never seen getting the ITIN not be worth it, especially since the newer ITINs should be a one time application. Also I would note MFS returns require you to put a SSN/ITIN down for the spouse anyway (so IRS can theoretically compare with any return the spouse files); you can put NRA down for “non-resident alien” but that blocks the ability to efile by any software I’ve seen. So still kind of a pain to not have the ITIN even if you don’t want them on the return.
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Jan 11, 2019 23:57
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Thanks for the HR block tip, I’ll look into it! Also, just realized I was mostly worried about her having to pay self employment tax but now that I’ve thought about it that doesn’t make any sense, she’s not a resident and thus can’t pay into social security, right?
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Jan 12, 2019 02:04
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I received some stock bought through my employer’s ESPP. I turned around and sold it immediately for about a $30 loss due to brokerage commission fees. Is that considered a wash sale?
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Jan 12, 2019 15:31
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Initio posted:I received some stock bought through my employer’s ESPP. I turned around and sold it immediately for about a $30 loss due to brokerage commission fees. No, that's a $30 short term capital loss. A wash sale would be if you repurchased the same stock within 30 days.
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Jan 12, 2019 16:50
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SlapActionJackson posted:No, that's a $30 short term capital loss. And a super lovely ESPP. Most reasonable ESPPs are selling to you at the lowest price of the opening or closing of the period minus 15%.
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Jan 12, 2019 16:59
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I'm assuming that Initio has already recognized the discount amount is ordinary income, and factored it out of his question.
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Jan 12, 2019 17:20
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I have a withholding question. I am going to start receiving a monthly benefit as a survivor from my mom's pension plan. They just sent me the paperwork I need to fill out and return to them, which includes a withholding form. On the form I can either: 1) tell them my filing status and number of personal exemptions and they will automatically withhold according to IRS tables (I can also specify an additional amount I want them to withhold); or 2) tell them not to withhold. The amount I'm going to receive is around $5,500 a year, so I assume if I pick Option 1 and don't specify an additional amount, they would withhold $0. I have a job so I actually do need to withhold on this pension money. Is my assumption about them not withholding if I don't put down a number correct, and if so how can I figure out what number I should tell them to withhold?
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Jan 12, 2019 22:09
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Motronic posted:And a super lovely ESPP. Most reasonable ESPPs are selling to you at the lowest price of the opening or closing of the period minus 15%. It’s definitely not an awesome ESPP as there’s no look back period, but I do get a 15% discount of the FMV of the purchase date at the end of the period. The 15% is included on my W-2 and treated as regular income.
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Jan 13, 2019 02:35
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Initio posted:The 15% is included on my W-2 and treated as regular income.
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Jan 13, 2019 07:32
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Small White Dragon posted:Wait... is this standard? So there's no point in holding onto the stock for a year to take advantage of Long Term Capital Gains? You are being given 15% (or more if there is a lookback). Being taxed for this difference (because it is income) is normal, and bring your costs basis up to the stock price. This is the same as being taxed immediately on the entire share value for an RSU that vests. The point to holding until LTCG treatment would be for any gains past that basis. But I'm pretty sure I've said many times what I think about holding stock in the company you're getting your paycheck from unless you're already quite well into FU money territory.
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Jan 13, 2019 16:01
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Yeah, Enron actively encouraged employees to put a significant percentage of their savings into Enron stock, which didn't work out too well when the whole company collapsed due to massive accounting fraud.
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Jan 13, 2019 16:07
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