|
Discendo Vox posted:Just to be clear it doesn't mean we somehow don't wind up looking at your W2s, there's no One Weird Trick here. It means we have to both make you provide copies of them to us, and, sometimes request that a storehouse mail us your original return. I didn't think there was one weird trick, but I bet you could audit multiple times the number of people that you currently can given the correct tools.
|
#
?
Jan 26, 2020 02:48
|
|
|
|
| # ? May 11, 2024 05:47 |
|
|
Discendo Vox posted:Just to be clear it doesn't mean we somehow don't wind up looking at your W2s, there's no One Weird Trick here. It means we have to both make you provide copies of them to us, and, sometimes request that a storehouse mail us your original return. I'm mad you aren't funded to the point of diminishing returns on ROI.  I'm also mad that transcripts don't show my non-deductible IRA contributions.
|
|
#
?
Jan 26, 2020 03:05
|
|
|
MadDogMike posted:What, you guys don’t just demand we re-send the W-2 forms like the states do at the drop of a hat? Oh, no, no, the IRS has your W-2s. We who are supposed to be auditing can also see something like the content of the copies of documents (like W2s) that your employers send to the IRS. What we don't get are the W2s that are attached a paper return transcript. Paper returns are semi-manually entered into our core database and there's not a way to list most of the content of adjunct documents in that process. When you have an electronic filing we have a completely different parallel database that can print out almost everything from your return in a format that sort of resembles the original document (still buggy and incomplete, though, and frequently down). H110Hawk posted:I'm also mad that transcripts don't show my non-deductible IRA contributions. Good god that wastes so much of our drat time sometimes.
|
|
#
?
Jan 26, 2020 03:20
|
|
. Also I’m doing a bunch of W-7 ITIN applications so sorry, gotta paper file by the rules there.
|
H110Hawk posted:I'm mad you aren't funded to the point of diminishing returns on ROI. Yeah, this. You captured my sentiment perfectly. People are gaming this, and it's those with the most to gain. This is not a level playing field, and more audits would be a step in the right direction for those of us who play fair. I'm in a position of "come audit me if you must, I've got my poo poo together." I'd rather you didn't, but I'd have no problem justifying myself.
|
|
#
?
Jan 26, 2020 03:20
|
|
|
Discendo Vox posted:IRS goon here. Please e-file so when I audit you I don’t have to crawl through an incomplete Unisys printout trying to piece together what your W2s were.
|
|
#
?
Jan 26, 2020 03:24
|
|
|
Small White Dragon posted:Did the TCJA changes make your job easier or harder? Heard the number of people itemizing has gone from ~30% to ~10%. That's complicated and I don't have a full perspective where I am, particularly since I'm semi-new. In the long run if the TCJA changes stick around they'll probably make our jobs easier on balance. That said, itemized deductions are far from the most aggravating thing to audit. My understanding is that a lot of the people who were abusing EBEs have moved to creating fictitious schedule Cs for the same purpose, which is many times more labor intensive to deal with. Right now it's especially fun because at my level we're generally auditing people on 2017 and 2018 - lots of room to gently caress up and apply the wrong year's tax laws. Oh, and typical caveat, I will be providing no actual tax advice, my posts are not the position of the IRS, I will be disclosing no info not available from reading publicly visible documents on the IRS site. I'm just briefly venting. Discendo Vox fucked around with this message at 03:51 on Jan 26, 2020 |
|
#
?
Jan 26, 2020 03:33
|
|
|
Small White Dragon posted:Did the TCJA changes make your job easier or harder? Heard the number of people itemizing has gone from ~30% to ~10%. Last year made me audibly laugh. I was at $23,9xx in itemized deductions. Took the standard for the first time in a while. Thanks SALT cap. 
|
|
#
?
Jan 26, 2020 03:33
|
|
|
I got a fun 1099K from PayPal this year for taking in $3000 in 40 transactions on eBay. Normally the threshold for this is $20,000+ and 200+ transactions but as of somewhat recently in MA it's $600 and any # of transactions. I'm not running a profitable eBay business, I'm just selling old stuff from my house, the vast majority of which I purchased myself for a higher price some time ago. So I don't think this should be taxable, however I'm not sure how best to play it. Gather as many receipts as I can (not sure how many I can find) for the items original cost and claim the losses? Should I even report it to the federal government, since I believe the 1099K is only filed with MA as the federal threshold is still $20K/200 transactions? Any other MA (and I believe also VT) eBay garage salers out there dealing with this? admiraldennis fucked around with this message at 04:31 on Jan 26, 2020 |
|
#
?
Jan 26, 2020 04:26
|
|
|
I appreciate that FreeTaxUSA lets you enable two factor via an authenticator app and then explicitly choose to disable email / SMS as a backup. A lot of big bank / brokerage sites don’t even allow that.
|
|
#
?
Jan 26, 2020 19:25
|
|
|
I work 3 jobs. After getting screwed on taxes last year, I changed my withholding to 0 on two of the jobs. On one w2 (withholding 1) this year, I paid about 1900 federal on 25k of income. On the other, about 13k with a withholding of 0, I paid 139 dollars federal. Does this make any sense? I get its half the income of the other w2, but..... withholding of 0 means more is taken out, right? Do I understand literally a single loving thing about taxes? Am I ever going to get a refund again? Because I used to get good ones every year, and then Trump got into office, and I seem to get hosed every year now.
|
|
#
?
Jan 27, 2020 02:26
|
|
|
Your jobs don't know what your other income is - and assuming you had no other income, the $13k job would leave you with barely any taxable income. So they withheld accordingly. If you want a refund you'll need to put something in the "additional" field instead of just claiming no deductions. Ideally you'd have as small a refund as possible or owe slightly (assuming you can keep the money on hand to pay the tax bill).
|
|
#
?
Jan 27, 2020 03:58
|
|
|
IOwnCalculus posted:Your jobs don't know what your other income is - and assuming you had no other income, the $13k job would leave you with barely any taxable income. So they withheld accordingly. If you want a refund you'll need to put something in the "additional" field instead of just claiming no deductions. And yeah, I know getting a refund is technically bad with money, and I'd be fine with no refund, but unexpected taxes owed sucks.
|
|
#
?
Jan 27, 2020 04:26
|
|
|
Well, for one thing, in order to make it look like the TCJA (Tax Cuts and Jobs Act) was cutting taxes for the masses, the IRS was instructed to adjust withholding downwards in early 2018.
|
|
#
?
Jan 27, 2020 04:41
|
|
|
Discendo Vox posted:Just to be clear it doesn't mean we somehow don't wind up looking at your W2s, there's no One Weird Trick here. It means we have to both make you provide copies of them to us, and, sometimes request that a storehouse mail us your original return. i really truly have never understood why the IRS doesn't list submitted 1099/W-2 forms in their online account. loving annoying to deal with paper
|
|
#
?
Jan 27, 2020 05:44
|
|
|
 Pictured: Discendo Vox hard at work.
|
|
#
?
Jan 27, 2020 17:07
|
|
|
My 1099-DIV from Vanguard has a new box, Section 199A Dividends. Looking around its for the TCJA adjustments to business deductions. If I don't have a business/self employment it mean nothing to me right?
|
|
#
?
Jan 27, 2020 17:43
|
|
|
SlapActionJackson posted:Circular E. https://www.irs.gov/publications/p15 I know, "ask your accountant," but my accountant apparently does not deal with household employee payroll issues. e: Looks like I still need to pay unemployment taxes gvibes fucked around with this message at 18:56 on Jan 27, 2020 |
|
#
?
Jan 27, 2020 18:05
|
|
|
gvibes posted:I know, "ask your accountant," but my accountant apparently does not deal with household employee payroll issues. Then the real question is why are you using an accountant that does not provide the services you need?
|
|
#
?
Jan 27, 2020 18:08
|
|
|
Motronic posted:Then the real question is why are you using an accountant that does not provide the services you need?
|
|
#
?
Jan 27, 2020 18:57
|
|
|
gvibes posted:He's one of a few that is very familiar with my partnership's tax structure. Ask him to bone up real quick. Your ask isn't that uncommon and doesn't seem complicated on the surface. It's 1 extra form you need them to handle and he likely needs professional development hours to maintain his CPA.
|
|
#
?
Jan 27, 2020 19:06
|
|
|
In fairness to the other CPA, an expert in unique partnerships probably has little functional knowledge in payroll issues and even less in the specialized world of household employers. Maybe the CPA would have a network connection though?
|
|
#
?
Jan 28, 2020 01:39
|
|
|
Missing Donut posted:In fairness to the other CPA, an expert in unique partnerships probably has little functional knowledge in payroll issues and even less in the specialized world of household employers. Maybe the CPA would have a network connection though? Maybe if they're in that specialized a business competency they're not the person to use for your personal household taxes and rather the person who gives relevant information to that other CPA who does personal household taxes for people with more than W2 income?
|
|
#
?
Jan 28, 2020 01:45
|
|
|
Motronic posted:Maybe if they're in that specialized a business competency they're not the person to use for your personal household taxes and rather the person who gives relevant information to that other CPA who does personal household taxes for people with more than W2 income? The issue isn’t Schedule H, it’s the specifics of whether state copies of the W-2 need to be sent to Illinois if there isn’t any withholding on them. I assume the answer is yes, and that it wouldn’t hurt to send them if they’re not required, but it’s literally been six years since I touched an Illinois payroll so I don’t consider myself qualified to answer that question with any level of authority. And I’m not going to blame a partnership guru for not knowing it either.
|
|
#
?
Jan 28, 2020 01:56
|
|
|
Missing Donut posted:And I’m not going to blame a partnership guru for not knowing it either. Nor am I. I understand the need and benefit of specialization. I'm questioning whether that is the appropriate person to be engaging for household taxes (it is not). I haven't used the same person for business and personal because those are different specialties. If I used larger firms I'm sure a single FIRM could service both, but I wouldn't be dealing with the same individual. Am I explaining this poorly or just completely missing something?
|
|
#
?
Jan 28, 2020 02:02
|
|
|
Motronic posted:I haven't used the same person for business and personal because those are different specialties. If I used larger firms I'm sure a single FIRM could service both, but I wouldn't be dealing with the same individual. We’re in rough agreement. H110 was making it sound like the other CPA is not fit to be hired by the poster, which I took issue with. Depending on the larger firm you’re dealing with you might have the same person preparing the individual and business, believe it or not. The company I just left outsourced tax with a large regional (top 25 on size) and the same staffer prepared both the business and the owners’ individual returns. But that staffer definitely wouldn’t hypothetically be involved in payroll for many reasons.
|
|
#
?
Jan 28, 2020 02:28
|
|
|
Missing Donut posted:We’re in rough agreement. H110 was making it sound like the other CPA is not fit to be hired by the poster, which I took issue with. Just a suggestion, I don't know enough to know if they should or should not do it. Figured one professional development research project was as good as any other. 
|
|
#
?
Jan 28, 2020 03:11
|
|
|
H110Hawk posted:Just a suggestion, I don't know enough to know if they should or should not do it. Figured one professional development research project was as good as any other. It’s no big deal; it is logical to see it that way.
|
|
#
?
Jan 28, 2020 05:18
|
|
|
Speaking as a guy who makes a point of learning every drat thing about taxes I can out of curiosity if nothing else, there are inevitable limits; even if you study everything being able to bring up the info well enough in your brain to feel morally justified telling a client how to do it is a bit much for EVERYTHING. I mean, I supposedly can do just about any type of tax return now, and I barely know anything about payroll withholding and I can count the number of Schedule H forms I've helped with on one hand; I'm not chiming in on this one for a reason. Hell, I've got access to lots of more specialized people I can direct questions or if need be clients to where I am, plus an actual research department to refer questions to, and I still wind up dealing with tax knowledge gaps (boy, nothing like a well worded version of "I dunno either" from one of said research questions to make one confident...). Kind of disturbing how fast I become an "expert" on some fringe topic sometimes just because I'm the only poor bastard who ran into it and studied frantically in self defense. Then everybody with the same issue later is all amazed at "how smart you must be to know this" while you're still thinking "Ah poo poo, what detail am I forgetting from last time?!"  .
|
|
#
?
Jan 28, 2020 08:48
|
|
|
I have been reading tax advice online and a ton of these "IRS Strategies" are basically "ways to piss off the people examining your tax return". Yes, we're strapped for resources, but we also know exactly what it means when someone files an amendment within sixty days of statute, or suddenly switches to paper filing with a bunch of written deductions, or keeps trying to delay the audit. It's not clever. If they get away with it, it's because they got lucky with the case selection system, not because it fooled anyone at the IRS. Another request: If you get contacted about an audit for a given tax year, please gather your tax documentation, look at your old return, identify any problems...and bring it up in the audit. Do not file an amended return while you're already under audit. When you do that, congratulations, you just created two separate casefiles, one of which has to go through processing for a month halfway across the country...and then it's going to be sent back to me to process again as part of your audit. All you've done is make me take longer to look at your case. If you want to amend your return or correct your error, you do it through the audit. Discendo Vox fucked around with this message at 02:00 on Jan 29, 2020 |
|
#
?
Jan 29, 2020 01:54
|
|
|
Hello tax thread I am im some trouble. So my question will be to find out how to best address my needs. I have 2 years Of missed filings (FY 17 single, FY 18 single) and need to file for this year as Married, Joint They're pretty taxes, otherwise. No business, no stocks, no property, etc. Just simple 1040 ez, i think. Anyway, my question is: Is my situation complex enough to require a tax professional, or can i still knock out all 3 using an online free service like turbotax? If i need to pay, should i do: Low cost - turbo tax, pay Mid cost - Hrblock/jackson hewitt? Expensive - experienced, recomended CPA?
|
|
#
?
Jan 29, 2020 19:55
|
|
|
The Bananana posted:I am im some trouble. You're not in trouble unless you owed, even then you're not in much trouble assuming you can afford it, it's flat rate penalties and interest. Just do whatever you previously did to file your taxes, in order. I've skipped a year or two previously and it never amounts to anything if you're owed a refund. Make sure you're using the software or forms from those specific years. If the software doesn't support it you're on to other software or paper forms. If in the end you don't want to do the paper by hand, hire a tax preparer to handle it for you. It will be fine.
|
|
#
?
Jan 29, 2020 21:13
|
|
|
TurboTax (I know) offers "live CPA advice" and I've used it twice now and it really seems like I'm just dealing with some call center dudes who are forwarding my info to a CPA because 100% of the time they'll be like "let me look into that for you" and come back 10 minutes later with the most basic answer possible and if you ask a followup it's another 10 minute wait. Does anyone know if the H&R block staff is a bit more on the ball?
|
|
#
?
Jan 30, 2020 03:06
|
|
|
In February 2019 the company that I had worked at for the last 5 years folded (we were running with a skeleton crew of like, 6 people at the time) and I'm starting to get antsy about not receiving any forms yet. My entire time there, the President/CEO (who has effectively retired as far as I understand, per his LinkedIn he's doing independent consulting) used the same CPA (who I've met in person before and communicated with occasionally via email) at the same firm to prepare all the tax forms. Would it be out of line to contact the CPA directly about it to see if anything's on the way? When would it not be considered too early to do so? The other option is like, trying to track down my former boss's cell phone number and that seems like a way weirder thing.
|
|
#
?
Jan 30, 2020 05:24
|
|
|
Power of Pecota posted:In February 2019 the company that I had worked at for the last 5 years folded (we were running with a skeleton crew of like, 6 people at the time) and I'm starting to get antsy about not receiving any forms yet.
|
|
#
?
Jan 30, 2020 18:44
|
|
|
I got and sold my first round of RSUs in 2019, and I had a question about the cost basis. My paystub for the grant was $4400 (14 shares), and after $1600 in taxes it has a “Stock Offset” line of $2800 (9 shares). I sold the shares for $2850. My 1099-B for the RSU sale says that the cost basis was not reported to the IRS, and lists it as $0 with a gain of $2850. I had taxes withheld on the RSUs, implying they were listed as W2 income. So a cost basis of $0 seems like I would be double taxed on the transaction. When I’m filling out the forms for this 1099-B, do I list the cost basis as $2800? I’ll probably be back in a few days with questions about ESPP sales, but I haven’t had a chance to look at those transactions specifically yet.
|
|
#
?
Jan 31, 2020 02:13
|
|
|
Figured out my question
Sub Rosa fucked around with this message at 23:43 on Jan 31, 2020 |
|
#
?
Jan 31, 2020 02:25
|
|
|
gvibes posted:I now know that the deadline for mailing W-2s is 1/31, so I would maybe give it a little longer. It looks like Etrade won't have my 1099-DIV available until 2/15 anyway so I'll wait until like, Friday the 7th before doing anything. Hopefully it comes in the mail next week~
|
|
#
?
Jan 31, 2020 02:56
|
|
|
Cross-posting from the House buying thread: I have a tax related question re: selling our current home and buying a new one. Not sure if the Income Tax thread is a better fit, but here goes: My wife and I purchased a home in 2012 for 530k in California. We are planning on selling the house and buying a new home on the east coast, state not yet decided but likely NJ/MA/CT/RI, depending on where her work transfer lands her. Now, in the current market we could sell the house at around $700-800k. Our current understanding, which may be completely wrong, is that if our profit is less than $500k we shouldn't have to pay income tax on this profit assuming that we buy another home with 12months. Our combined income is roughly 230-240k a year if that makes a difference. Happy to be corrected.
|
|
#
?
Jan 31, 2020 18:48
|
|
|
SnatchRabbit posted:Cross-posting from the House buying thread: You're mostly right. You can exclude $500k of gain, that's correct. The time limit is less restrictive. You just need to have lived in the home as your primary residence for 2 out of the previous 5 years when you sell it.
|
|
#
?
Jan 31, 2020 18:59
|
|
|
|
| # ? May 11, 2024 05:47 |
|
|
EPICAC posted:I got and sold my first round of RSUs in 2019, and I had a question about the cost basis. My paystub for the grant was $4400 (14 shares), and after $1600 in taxes it has a “Stock Offset” line of $2800 (9 shares). I sold the shares for $2850. My 1099-B for the RSU sale says that the cost basis was not reported to the IRS, and lists it as $0 with a gain of $2850. Yes, you'll need to adjust the basis to $2800. From a tax perspective: $4400 Gross pay, included on W2 $1600 Tax W/H, included on W2 = $2800 net income Buy 9 shares for $2800 - this is your corrected basis Sell 9 shares for $2850 - this is your gross sale proceeds = $50 short term capital gains Make sure you include any transaction fees you paid on the stock transactions, they can offset that capital gain
|
|
#
?
Jan 31, 2020 19:24
|
|
