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Non-resident aliens do not get the standard deduction, but you should have foreign tax credits to claim if Australia taxes that income.
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Jun 19, 2019 03:46
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sale on Banksy art posted:Non-resident aliens do not get the standard deduction, but you should have foreign tax credits to claim if Australia taxes that income. Ugh, I totally forgot about the foreign tax credit. Cheers.
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Jun 19, 2019 03:50
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Question about backdoor Roth IRA contributions - sorry if this is the wrong place for it. I contributed $6k to my Roth IRA at the beginning of the year, but then I unexpectedly got a new job that's going to put me over the income limit for Roth. Can I recharacterize the contribution as a nondeductible Traditional contribution and then immediately convert it back to Roth? It feels like I shouldn't be able to do that but the whole backdoor Roth process feels like I shouldn't be able to do that.
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Jun 30, 2019 13:52
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I could use some advice on my previous company's accountant possibly flaking out. Up until the fall I was partner in an ad agency that basically fell apart. I'm no longer a part of the entity but it still exists. Our accountant is/was my personal accountant and has seemed great for the past 5 years I've been working with him. But this year he's still working on the return for our company so I'm sans K1, he hasn't started on my personal return, and I'm kinda stuck in limbo. We filed for an extension but I'm nervous about the whole thing, especially since I'm freelance now and we're coming up on estimated tax payment time and I'm not sure what to pay (from his initial look over things he thought I probably overpaid last year since the company went in the shitter.) Is there any way I can get my return done without that k1? I'm guessing no. What do I do if this guy flakes permanently? I can take my business elsewhere for the personal return but I don't see what I can do without the K1 and that's not in my control anymore.
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Jul 1, 2019 22:41
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powderific posted:I could use some advice on my previous company's accountant possibly flaking out. Up until the fall I was partner in an ad agency that basically fell apart. I'm no longer a part of the entity but it still exists. Our accountant is/was my personal accountant and has seemed great for the past 5 years I've been working with him. But this year he's still working on the return for our company so I'm sans K1, he hasn't started on my personal return, and I'm kinda stuck in limbo. We filed for an extension but I'm nervous about the whole thing, especially since I'm freelance now and we're coming up on estimated tax payment time and I'm not sure what to pay (from his initial look over things he thought I probably overpaid last year since the company went in the shitter.) 1) No you still need your K-1 2) Guessing your previous company's accountant has not been getting paid, or not been able to a get a payment plan in place. He's not going to be in a hurry to issue if there's very little chance of actually getting paid for the work (assuming he even got paid for last year's work)
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Jul 1, 2019 23:15
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Ahh, he did get paid last year but the remaining partner is the king of slow paying so I'm sure that has something to do with it.
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Jul 2, 2019 15:49
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powderific posted:Ahh, he did get paid last year but the remaining partner is the king of slow paying so I'm sure that has something to do with it. He also probably just Does Not Want to Deal with a return for a company that went belly up. No doubt all the info given to him was haphazard and bullshit. He's probably got a bunch of other returns on extension that need to be done as well that will be much less of a bitch to work on. But I would relax, your extension is good until October 15th, there's no penalty for late filing unless you file after then and only if you have a balance due. If you have a balance due but file before October 15th there will be interest and late payment penalties but they are relatively small, a low percentage based on your tax due. The fact that the company collapsed means you probably will show a loss on your K-1 which is great for your taxes, just ask Dear Leader Trump. As for your estimates, you already missed the "deadline" for the first two quarters. Third quarter is due September 15th. You can pay an estimate now if you want, pick a rough number like 20% of the income you've earned this year to be safe and forward that to the IRS. If you really want to. As long as you pay most of your bill before April 15th next year it shouldn't be a big deal.
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Jul 2, 2019 21:17
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Allright, I'll just not worry about it for now and sock away some extra for the September payment. The books are definitely haphazard; I could have some solid posts for the BWM thread about the company.
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Jul 2, 2019 21:35
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powderific posted:Allright, I'll just not worry about it for now and sock away some extra for the September payment. The books are definitely haphazard; I could have some solid posts for the BWM thread about the company. 
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Jul 2, 2019 22:18
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I'll have to think about if there are stories anonymous enough to share, ha.
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Jul 3, 2019 21:55
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C-Euro posted:I fill out the W-4 worksheet to figure out how much money my wife and I should withhold for next year, is the additional annual withholding I came up with (line 8 of the two-incomes worksheet) what I need withheld from just my paycheck for the year, or what my wife and I need withheld from our combined paychecks for the year? The amount that I calculated as owing is way higher than the 1040-ES slips our accountant gave us, but if it turns that this calculated W-4 amount is to be split up between us then it makes more sense. Reposting this as we just got a new payroll system at work and I can re-submit my W4 info much more easily now.
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Jul 8, 2019 19:49
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So I forgot to declare my $10k signing bonus received in 2015. Do I just file an amendment for that year through the mail/TurboTax, or should I contact the IRS first? My marginal rate was 15% that year, so I’d probably owe $1500 and interest?
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Jul 20, 2019 19:58
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You would just file an amended return and mail it in with a check. However I would make sure your job didn’t already roll your signing bonus into the W-2 or 1099 that you already reported. The IRS isn’t going to correct you if you’re wrong, they’ll just cash your check and move on.
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Jul 21, 2019 17:40
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Yeah, not sure why an employer wouldn’t withhold on anything they pay you. Usually they over withhold to be honest.
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Jul 21, 2019 19:14
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I didn’t start work till 2016. Bonus was paid at time of contract signing. Thanks, I’ll file my return. Our business manager wanted to just roll it into this year’s pay and withhold. Didn’t think it was right, and my marginal rate is way higher now
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Jul 21, 2019 19:37
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That's weird, they definitely should have reported the bonus to you the year they paid it, but employers make reporting mistakes all the time, so I guess if they never reported it to you in 2015 and you didn't report it on the 2015 return, an amended return is definitely the way to go to correct it. You don't need to inform the IRS you're doing it, just write a brief explanation on the 1040x and mail it off.
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Jul 21, 2019 20:45
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howdoesishotweb posted:I didn’t start work till 2016. Bonus was paid at time of contract signing. Thanks, I’ll file my return.
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Jul 22, 2019 00:22
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How would being a resident of Oregon for part of the year work with respect to Oregon income tax? https://www.oregon.gov/DOR/forms/FormsPubs/form-or-40-p_101-055_2018.pdf The internet and this form mention that it somehow relates to how much of the year you have lived there but all I can see is one spot at the top of the form that says to list the dates of your oregon residency. My only other thought is #35 mentions a division of [oregon] by [federal] to get the Oregon Percentage but if that is the case it would seem that I'm supposed to personally split up my Federal W-2 income number into pre and post Oregon numbers and so on down the line for #7 through #34. Which seems, annoying at best. Thoughts?
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Aug 4, 2019 05:54
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tangy yet delightful posted:How would being a resident of Oregon for part of the year work with respect to Oregon income tax? For residency definitions, check Oregon Publication OR-17. As a part-year resident, Oregon wants to tax you on all the income you got while a resident and the Oregon-sourced income you got while a non-resident (if any). W-2 income should be split by state in boxes 15 and 16. This division will be done by the employer and likely reflects the location where you earned the wages. You might need to divide your wages differently if you worked in a state other than your state of residence.
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Aug 4, 2019 14:28
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urnisme posted:For residency definitions, check Oregon Publication OR-17. As a part-year resident, Oregon wants to tax you on all the income you got while a resident and the Oregon-sourced income you got while a non-resident (if any). W-2 income should be split by state in boxes 15 and 16. This division will be done by the employer and likely reflects the location where you earned the wages. You might need to divide your wages differently if you worked in a state other than your state of residence. Ah ok I didn't realize the W-2 had a spot to already split it out. I'm actually my own employer so I assume when I move to OR my quickbooks software will prompt me to do all that and spit out the right numbers. If it doesn't (and likely anyway) I'll check with my CPA. Thanks for the help!
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Aug 4, 2019 19:32
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tangy yet delightful posted:Ah ok I didn't realize the W-2 had a spot to already split it out. I'm actually my own employer so I assume when I move to OR my quickbooks software will prompt me to do all that and spit out the right numbers. If it doesn't (and likely anyway) I'll check with my CPA. Thanks for the help! If they do split the income between states for you, often they will issue two W-2 forms with different state/local information on the bottom, just enter each state individually under the same W-2 in most software (don't report as separate W-2s, that will screw it up). If they don't split the income correctly (don't assume they will, because oh dear God how often I see employers screw up W-2s and not correct them, especially with state/local tax), usually you do just split the income manually by percentage of days in the state in question vs. total days as was mentioned. Yes, it is annoying. Guess who winds up doing it a bunch anyway. Personal favorite still has to be working with a newly married couple, each of whom lived in different states (one of them in two separate states) and then once married moved to yet another state for the rest of the year, and one spouse had a job with income in four separate states. That one took some interesting calculations, to put it mildly  . As is I often joke the main reason that one probably never got audited is no agency wanted the responsibility of having to say what the correct answer would actually be.
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Aug 4, 2019 21:38
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tangy yet delightful posted:Ah ok I didn't realize the W-2 had a spot to already split it out. I'm actually my own employer so I assume when I move to OR my quickbooks software will prompt me to do all that and spit out the right numbers. If it doesn't (and likely anyway) I'll check with my CPA. Thanks for the help! Be aware that certain parts of OR will have many payroll filings due, and QB is only ok at letting you know. If your are in PDX you will have: Trimet to file, OR-STT, PDX/MC tax (not payroll but another one), your Oregon entity return, your Oregon personal return. A good piece of free tax planning for you, live in Vancouver as a Washington resident. You are only taxed on the income where you are physically present in the state of Oregon (unless you trip the economic nexus rules).
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Aug 5, 2019 18:58
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Lord of Garbagemen posted:Be aware that certain parts of OR will have many payroll filings due, and QB is only ok at letting you know. If your are in PDX you will have: Trimet to file, OR-STT, PDX/MC tax (not payroll but another one), your Oregon entity return, your Oregon personal return. A good piece of free tax planning for you, live in Vancouver as a Washington resident. You are only taxed on the income where you are physically present in the state of Oregon (unless you trip the economic nexus rules). Yeah, don't gently caress up that new transit tax. Don't want a $5 notice to come in the mail.
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Aug 5, 2019 21:16
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Thanks for all the advice, I'm noting down the different possible taxes to look into this week. For a variety of reasons there's basically no chance we end up living in WA vs OR but I appreciate the thought nonetheless 
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Aug 6, 2019 00:19
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Don't forget the art tax!
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Aug 6, 2019 00:19
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sullat posted:Don't forget the art tax! Oh for gently caress's sake lol. That one's a joke. iT'S noT a HEad TaX - Oregon Supreme Court.
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Aug 6, 2019 20:32
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In other threads across BFC, I've posted the adventures in poor management, featuring my soon to be former employer, but I think I've heard the best one so far. The owner seems to have stumbled upon one little known secret (that IRS agents hate!) He thinks that if we put all of our income in to the law firm's IOLTA account, he won't have to pay any taxes.
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Aug 6, 2019 20:44
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Simpsons Reference posted:In other threads across BFC, I've posted the adventures in poor management, featuring my soon to be former employer, but I think I've heard the best one so far. The owner seems to have stumbled upon one little known secret (that IRS agents hate!) He thinks that if we put all of our income in to the law firm's IOLTA account, he won't have to pay any taxes. Point out that salaries are deductible business expenses, and he can get out of paying taxes by giving everyone a bonus. In my experience it results in having to listen to less whining about taxes
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Aug 6, 2019 20:50
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Simpsons Reference posted:In other threads across BFC, I've posted the adventures in poor management, featuring my soon to be former employer, but I think I've heard the best one so far. The owner seems to have stumbled upon one little known secret (that IRS agents hate!) He thinks that if we put all of our income in to the law firm's IOLTA account, he won't have to pay any taxes. Tax fraud implications aside, intentionally loving with client trust accounts is a great way to get disbarred. At least his tax bill will be smaller when he's forbidden from practicing law. Also he's not the first lawyer to think up this winning scheme. First hit on a quick Google search: http://blawg401.com/irs-properly-reconstructs-attorneys-income-the-importance-of-trust-fund-accounting-through-the-lens-of-tax-litigation/ Maybe he's innocently confusing the fact that interest on certain IOLTA accounts isn't taxable (because you can't keep it)? Somehow I doubt it.
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Aug 6, 2019 21:41
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I guess it's a good thing I'm out of there soon
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Aug 6, 2019 22:10
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Simpsons Reference posted:I guess it's a good thing I'm out of there soon Man this guy sounds like such a dangerous buffoon. Get out of there! (And then turn him in for the tax bounty for maximum GWM).
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Aug 7, 2019 15:50
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Simpsons Reference posted:In other threads across BFC, I've posted the adventures in poor management, featuring my soon to be former employer, but I think I've heard the best one so far. The owner seems to have stumbled upon one little known secret (that IRS agents hate!) He thinks that if we put all of our income in to the law firm's IOLTA account, he won't have to pay any taxes. I'd question where he got his law training, but I just went through my ethics continuing ed and going by the examples given even trained tax people try to pull some remarkably dumb/evil things off. Personal favorite was the person who tried playing a "dog ate my homework" run-around with the IRS when they wanted to audit their due diligence paperwork, up to having somebody pose as their secretary and call in to tell the IRS their tax office caught fire. For SOME reason the IRS just didn't buy it...
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Aug 8, 2019 00:32
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EAT FASTER!!!!!! posted:Man this guy sounds like such a dangerous buffoon. Welp
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Aug 8, 2019 23:46
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I got a letter from the IRS about a 1099-C from 2017 I never received and therefore did not add to my tax return that year. From what I've read since I was insolvent in 2017 I can get out of paying the income tax for it. My question is should I just write my own reply to them stating my insolvency at the time or would it be worth it to get a tax lawyer or accountant to do it for me? I've never interacted with the IRS before so I'm not sure the best way to go about pleading my case to them.
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Aug 14, 2019 19:48
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Can someone clarify if I should be keeping receipts for stuff in this situation? I work from home for my employer (classified remote), and was wondering if/how I can claim my home office expenses as deductions. For example, I have an office chair that I bought exclusively for my work space. My understanding is I can only claim expenses that exceed 2% of my AGI? But that would require a massive office spend to both exceed 2% of my AGI and exceed the standard deduction? I definitely don't expect to have $12,000 of home office expenses, though I could run the numbers on stuff like power, square footage, etc. Deviant fucked around with this message at 16:56 on Aug 21, 2019 |
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Aug 21, 2019 16:53
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Deviant posted:Can someone clarify if I should be keeping receipts for stuff in this situation? The Bullshit Fucker Trump Tax Law got rid of those 2% miscellaneous deductions so unless your state still allows them (like NY) don’t bother. Also if you’re in NY don’t bother because they’re sending out audit letters to a billion people who itemize every year and they have mental midgets processing said letters so even if you’re entitled to it you probably won’t get your full state refund. Edit: Unless you’re not a W-2 employee in which case you should be taking that expense on your schedule C with your income.
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Aug 21, 2019 18:46
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Epi Lepi posted:The Bullshit Fucker Trump Tax Law got rid of those 2% miscellaneous deductions so unless your state still allows them (like NY) don’t bother. Also if you’re in NY don’t bother because they’re sending out audit letters to a billion people who itemize every year and they have mental midgets processing said letters so even if you’re entitled to it you probably won’t get your full state refund. yeah i'm w2. Not in NY (The office is, I'm in FL). standard deduction it is, then.
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Aug 21, 2019 19:49
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Have a small problem I'm trying to work out; if any tax pros here think it needs a deeper look PM me, I'm willing to pay for advice: For the 2017 tax year, I contributed $11k to my (traditional) IRA in February of that year. MFJ and our MAGI is above the deduction threshold. Because of this, in July of the same year I withdrew the 11k, reasoning I wasn't getting any benefit out of it that I wouldn't get from my regular taxable mutual fund account, other than locking the money in my IRA. I did an allowed same year withdrawal, calculated my Net Attributable Income (from the interest the 11k earned for 4 months) filed and paid. Two years later the IRS sent me a letter where they calculated I owed 5k - tax and early withdrawal penalty for the entire 11k. At first I was confused but I think I spotted where I screwed up - I only withdrew the 11k I deposited, not that plus the few hundred in interest I earned (and paid tax on). This seems to have confused them. I can respond that I disagree and provide my evidence (statements showing the deposit and later withdrawal the same year, etc.) but I want to make sure I get this right. I am also not sure what to do about the interest (it's around $900 originally) that the 11k earned and has been sitting in my IRA all this time. Can that simply be claimed as a non-deductible deposit? I can easily pay the amounts, I'm not worried about that, but I am worried about getting locked in a tedious back and forth with the IRS. Any advice appreciated, and I'm willing to pay for someone's time if needed.
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Aug 22, 2019 19:20
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Ixian posted:Have a small problem I'm trying to work out; if any tax pros here think it needs a deeper look PM me, I'm willing to pay for advice: Make sure I'm understanding correctly, you put money into a traditional IRA then tried to take it out the same tax year? In order to do that you're supposed to withdraw all the earnings at the same time you pull out the rest, you can't really split the two and still treat the contribution as a non-event. See IRS Pub 590-A, pg 31 for details. Since you didn't meet the two criteria of not claiming a deduction for the contribution AND taking everything including earnings out of the IRA, from my little research here the IRS may be correct in treating it as a regular early distribution. Admittedly I haven't really seen this situation before, so there might be something I'm forgetting that might let you reduce the taxable amount; I'm more familiar with how it's supposed to work and not what happens when it's not done correctly unfortunately.
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Aug 24, 2019 00:35
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Ixian posted:Have a small problem I'm trying to work out; if any tax pros here think it needs a deeper look PM me, I'm willing to pay for advice: First things first, even though you are married and there was $11k worth of space for you as a couple back in 2017, you're still individually limited to $5.5k ($6k in 2019). So you should have only put in $5.5k in your own IRA and the rest should have been contributed to your spouse's IRA. MFJ just means your spouse did not have to earn their own income in order to contribute and can piggyback off yours. If you mis-typed and meant those contributions went into you and your spouse's IRAs, then there shouldn't be any additional headaches, but if it only went into yours, you might have to worry about the excess contribution excise tax as well. It seems like MadDogMike might be correct that you didn't do a return of contribution, but a early withdrawal since you did not also withdraw the income attributed to the contribution at the same time. So you're likely on the hook for some of those taxes and early withdrawal penalties, it's just a matter of making sure you're not paying more than you actually owe. From a cursory googling, it would appear distributions are subject to the pro-rata rule. Without the pro-rata rule, it would be that you made a $11k non-deductible contribution and then you took a $11k distribution, where you don't owe income tax since it was never deducted. However, with the pro-rata rule, the non-taxable amount of your distribution depends on the ratio of your non-deductible contributions to your total IRA balance (might be calculated on the date of withdrawal or 12/31 of the tax year in question, not too sure). For example, if your total IRA balance was $110k, where only $11k was non-deductible contributions, when you withdrew $11k, 90% of that distribution is taxable and 10% would be considered a return of your non-deductible basis and not taxable. Then you would owe the early withdrawal penalty on the taxable portion as well. This is all assuming you split the $11k correctly between your IRA and your spouse's IRA. If it all went into one IRA, then you would owe a 6% penalty for every year that the excess $5.5k has been in the account. Check the hypothetical situations at this link for examples: https://www08.wellsfargomedia.com/assets/pdf/personal/goals-retirement/taxes-and-retirement-planning/correct-excess-IRA-contributions.pdf Since you did not take out the earnings on your $11k contribution, I think the "Removal of excess contributions after due date" hypothetical is what applies to you. It seems like your money does get double taxed in that situation if you had an excess contribution above the annual maximum. Might be worth your while to seek a tax professional to double check all the math, but more than likely you hosed yourself to a certain degree.
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Aug 24, 2019 17:01
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