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Hey my wife is a one person LLC and passes through 100% of profits as income (almost no business expenses as it's her and a laptop): should she be "passing through" or paying herself any dollar that isn't used for business expenses and worrying about taxes on the income side? I'm worried this question is incoherent but I'm trying to figure out how to tell her to do so. Money goes out of business account and into personal account as X, she should reserve whatever percent of THAT amount is appropriate to pay taxes with, right? Gunshow Poophole fucked around with this message at 00:28 on May 22, 2020 |
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May 22, 2020 00:26
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It doesn't matter what she actually transfers to her personal account. What matters is the profit at the end of the year. Her LLC should be shown as a Schedule C on her/your(if you file joint) tax return. What ever the profit shown on the return is subject to self employment taxes and income taxes. She should be at least setting aside a portion of her income to pay taxes on the end of the year and should consider paying estimated taxes during the year.
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May 22, 2020 15:30
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Not precisely a tax question, but do any insiders in the thread have any details on creating an irs.gov account using a mobile-phone? I've been trying on and off over the past few weeks, but I keep getting a "we can't verify this mobile number" before it even sends me a text message. Postal verification is out at this point. I've had a standard T-Mobile number for the past 15 years, confirmed with them that the caller ID matches my name and I even temporarily lifted my Experian credit-freeze, but nothing has been working. I worked a 1099 contract for the first time last year, managed to screw up calculating my Form 8962 when I filed, and was in the middle of a Letter 12C discussion with them until the lockdown happened.
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May 27, 2020 21:00
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Mecha posted:Not precisely a tax question, but do any insiders in the thread have any details on creating an irs.gov account using a mobile-phone? I've been trying on and off over the past few weeks, but I keep getting a "we can't verify this mobile number" before it even sends me a text message. Postal verification is out at this point.
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May 27, 2020 21:10
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If I want to contribute to my HSA for 2019 before the extended July 15 deadline, can I claim both the 2019 contribution and the 2020 contribution on my 2020 taxes without penalty, or do I need to amend my 2019 taxes? I made no contributions in 2019, and was on a qualifying HDHP for all of 2019 and will be for 2020.
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Jun 2, 2020 23:52
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Dik Hz posted:If I want to contribute to my HSA for 2019 before the extended July 15 deadline, can I claim both the 2019 contribution and the 2020 contribution on my 2020 taxes without penalty, or do I need to amend my 2019 taxes? I made no contributions in 2019, and was on a qualifying HDHP for all of 2019 and will be for 2020. Even though you're making your 2019 contribution in 2020, you still claim it on your 2019 tax return.
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Jun 3, 2020 01:11
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Ancillary Character posted:Even though you're making your 2019 contribution in 2020, you still claim it on your 2019 tax return.
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Jun 3, 2020 01:17
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I moved from Maryland to Virginia in March 2019. I don't qualify for free file so I filed my federal return through Credit Karma because it was free, but they don't support multiple state returns. I then filed my Maryland return via their website. But when I tried to do the same for Virginia, they don't support online filing for part-year residents. From what I can tell, e-filing a state return requires you to also e-file a federal return, but I've already filed a federal return through Credit Karma. Does this mean I have to do a paper return for Virginia now? I don't have a fundamental problem with that other than it maybe taking forever/getting lost, especially with all the rioting.  e: Ended up doing the paper return for the Virginia partial-year. I'm supposed to receive a $325 refund and they say a paper return takes up to 8 weeks, but who knows how much longer it'll take during coronavirus.
Josh Lyman fucked around with this message at 13:11 on Jun 14, 2020 |
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Jun 4, 2020 07:55
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I’m a non-US citizen (from EU) who lived in Massachusetts from 2017 until Sep 2019 and moved out of US then. For 2019 I was a resident alien for the first time, so the entire procedure is new to me once again, and I have all kinds of annoying little complications like moving out mid-year, foreign rental and interest income, owning foreign bank accounts and mutual funds (not trading in them though), etc. Basically this seems unpleasant enough that I’d be willing to pay quite a bit for some professional do it for me. I’ve looked around a bit in my country but haven’t really found anyone who does this. Are there any US based services for this, who deal remotely with people physically not in the US? I see that e.g. HR Block are advertising filing for expats (at a pretty high cost), but I get the feeling that these are meant for US citizens living abroad, or...? Alternatively, how useful are the typical online tools like TurboTax in a situation like this? Is any one of them particularly good for reporting that kind of things? sinc fucked around with this message at 10:27 on Jun 14, 2020 |
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Jun 14, 2020 10:22
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sinc posted:I’m a non-US citizen (from EU) who lived in Massachusetts from 2017 until Sep 2019 and moved out of US then. For 2019 I was a resident alien for the first time, so the entire procedure is new to me once again, and I have all kinds of annoying little complications like moving out mid-year, foreign rental and interest income, owning foreign bank accounts and mutual funds (not trading in them though), etc. Your situation is complicated enough I can't recommend software unless you're confident you know what you're doing, too easy to screw something up. Most of the "expat" filing services should be able to handle you though I would think, there are plenty of people who have to file a US tax return even though they never enter the country (owning a business/rental property here and whatnot) that I understand they can handle. One thing to keep in mind prep-wise is if any of your income while in the US was taxed by another country, be sure to have the info about that available. They may or may not be able to assist with Massachusetts state income tax though unfortunately.
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Jun 14, 2020 18:47
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Taxes are still due on July 15th right?
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Jun 14, 2020 23:26
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Has anyone found anything clear cut that indicates that a covid related salary reduction counts for a 401k disbursement without penalty? The language talks about reduced hours, quarantine and furlough but nothing specific to salary reduction.
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Jun 16, 2020 15:32
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If this TRIPS proposal enters law I'm gonna loving walk out.
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Jun 25, 2020 06:32
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I'm sure a lot of us have probably heard about the issues with paper returns, but sounds like e-filed refunds are taking a long time now for a lot of people too.
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Jun 25, 2020 16:00
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Small White Dragon posted:I'm sure a lot of us have probably heard about the issues with paper returns, but sounds like e-filed refunds are taking a long time now for a lot of people too. Kind of random and affects the states too; talked my parents into bugging our state DOR since they filed back in February and they finally got the refund check today about a week after calling. I imagine most of the tax agencies are still pretty much dumpster fires from the viral doom of course. Discendo Vox posted:If this TRIPS proposal enters law I'm gonna loving walk out. I came into this job right as they were introducing the ACA stuff, don't think I've had a year without some major new clever rule I've had to learn. Honestly it'd take some especially dumb idea (or an even more blatantly evil one) for me to do more than sigh at tax law changes at this point. smackfu posted:Taxes are still due on July 15th right? Yes, no change there I've heard of.
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Jun 25, 2020 22:04
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How much time do you have to pay your taxes for your paycheck if you chose not to have your federal income tax withheld so you don't get a penalty?
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Jun 28, 2020 05:21
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human garbage bag posted:How much time do you have to pay your taxes for your paycheck if you chose not to have your federal income tax withheld so you don't get a penalty? You have to make estimated tax payments of 90% of the tax due the current year or enough to have paid 100% of the prior year’s taxes to avoid penalty, unless the total tax due is below $1000 in which case there’s never a penalty. Rest you pay by the usual tax deadline of April 15th. Usually that’s by quarter you earned the income so if there’s only one point in the year you made the money making an estimated tax payment in that quarter will be OK, you don’t have to “evenly” pay during the year if that’s not how you’re earning. Check out Form 2210 for (mind-numbing) details on the under withholding penalty, there are also a bunch of estimated tax calculators out there online to check the amount due.
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Jun 28, 2020 17:36
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MadDogMike posted:You have to make estimated tax payments of 90% of the tax due the current year or enough to have paid 100% of the prior year’s taxes to avoid penalty, unless the total tax due is below $1000 in which case there’s never a penalty. Rest you pay by the usual tax deadline of April 15th. Usually that’s by quarter you earned the income so if there’s only one point in the year you made the money making an estimated tax payment in that quarter will be OK, you don’t have to “evenly” pay during the year if that’s not how you’re earning. Check out Form 2210 for (mind-numbing) details on the under withholding penalty, there are also a bunch of estimated tax calculators out there online to check the amount due. I see, so I have to make the estimated tax payments by the due date for each quarter to avoid a penalty. Thanks!
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Jun 28, 2020 19:55
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An interesting side case (that probably isn't relevant), unlike quarterly payments, paycheck witholdings are not checked for timing. The IRS doesn't care if you withheld $100 every month, or $0 the first 11 and $1200 in December, as long as you hit the thresholds above for the whole year. Be carefull not to dig yourself too big a hole though!
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Jun 28, 2020 20:04
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After reading this thread I am really pissed at TurboTax for lobbying to keep the tax system complicated and their business practices. Is there a list of recommended tax prep software that aren't run by people doing that sort of lobbying?
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Jun 29, 2020 16:59
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dexter6 posted:After reading this thread I am really pissed at TurboTax for lobbying to keep the tax system complicated and their business practices. (Credit Karma is also fairly popular if you don't need anything it can't do, but they got bought by Intuit so they don't meet your requirement and anyway they're probably in the business of mining your data as well.) mystes fucked around with this message at 19:05 on Jun 29, 2020 |
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Jun 29, 2020 19:01
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Okay, this is a super n00b question and I apologize in advance but this is the first time filing taxes for me as a small business. I sell/restore vintage furniture. Let's say I use my car to drive to store X to buy a vintage piece for my business. Obviously I can claim the mileage for that trip. My question is, can I also claim the mileage BACK to my storage unit since I'm still using the car and mileage for business purposes? It seems to me like it would be a no-brainer that I could, but just want to make sure. Starting to put together all my receipts right now.
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Jun 29, 2020 22:24
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Yeah, mileage to and back for business is fine. The only tricky thing for mileage is that if your main business location is somewhere outside of home, you can't deduct mileage to get you to and from home to your office. Storage unit to store and back is all business related, so you're good.
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Jun 29, 2020 22:43
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This is probably a simple question: I work a standard W2 job. My wife streams on Twitch and has been getting to the point where she's getting not nothing money payouts every month. I can obviously set my W4 to withhold enough to cover our tax liability for the year, but do I actually need to make sure we're doing quarterly estimated tax payments for her instead?
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Jun 29, 2020 22:45
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Hoodwinker posted:This is probably a simple question: Not if you’re adjusting your withholding to cover both of your tax liabilities
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Jun 30, 2020 00:30
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Ungratek posted:Not if you’re adjusting your withholding to cover both of your tax liabilities
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Jun 30, 2020 01:13
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I started a new job and both the federal and state withholding processed as 1 allowance (I’m single). However, in my previous job, my pay stub showed 2 exemptions. Is this a situation where you start with a baseline of 1 exemption and my withholding form added 1 more so I’ll end up with 2 again? I ended up with a federal and state refund of about $1500 last year so if I end up with an exemption of 1, too much is going to be withheld from my paycheck.
Josh Lyman fucked around with this message at 07:59 on Jun 30, 2020 |
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Jun 30, 2020 07:54
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Hoodwinker posted:I thought this was the case but for some reason I got the impression otherwise from some other conversations I heard elsewhere. As long as the joint return ends up with a sub $1000 balance, the IRS doesn't care where the withholding comes from.
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Jun 30, 2020 15:38
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sullat posted:As long as the joint return ends up with a sub $1000 balance, the IRS doesn't care where the withholding comes from. Yep. This is what I did when I last had a significant non-W2 income.
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Jun 30, 2020 18:41
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I had 1099 income for January and February but am switching to a W2 job next week, hopefully for the rest of the year. To figure an estimated payment for Q1, do I need to make a guess on my future net income for the W2 job, or can I just use 25%-33% of the 1099 income as an estimated payment? I'm taking all of this to a local CPA ASAP, but they're booked solid until this extended tax season is over and I'm assuming I need to make a Q1 estimated tax payment on the 1099 income to avoid a penalty.
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Jul 1, 2020 02:31
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Oh, hey, they changed form 941.
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Jul 1, 2020 05:11
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Mecha posted:I had 1099 income for January and February but am switching to a W2 job next week, hopefully for the rest of the year. To figure an estimated payment for Q1, do I need to make a guess on my future net income for the W2 job, or can I just use 25%-33% of the 1099 income as an estimated payment? You can avoid a penalty by meeting 100% of last year's tax liability or 90% of this year. If your W2 job is consistent and you expect to keep it for the rest of the year, take last year's tax amount, subtract the amount of withholding you expect from your W2 job, and pay that amount. If your income has gone up, you probably will owe more, but you won't also owe a penalty.
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Jul 2, 2020 00:13
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I have a tax question, hopefully I'm asking in the right place and hopefully someone knows an answer: My coworker's father passed away 5 or 6 years ago, and she just got his 401k inheritance. They already took State and Fed tax out of it, but she is wondering if she will have to pay an estate tax on it as well? She called the State and they weren't sure and said to ask a CPA. The amount of the 401K she received was just under 11k.
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Jul 2, 2020 18:32
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heavy liquid posted:I have a tax question, hopefully I'm asking in the right place and hopefully someone knows an answer: Was the total amount of the estate plus excluded gifts more than $5 million? If yes, get an accountant. If no, then don't worry about it. sullat fucked around with this message at 19:00 on Jul 2, 2020 |
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Jul 2, 2020 18:58
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sullat posted:Was the total amount of the estate plus excluded gifts more than $5 million? If yes, get an accountant. If no, then don't worry about it. Thanks. Well her concern is that she's splitting the money with her brother, and wants to make sure they aren't going to tax her after she gives him his share. I don't think they're on the best of terms, so she doesn't want to have to ask him for some of the money back if they tax her later on.
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Jul 2, 2020 19:13
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heavy liquid posted:Thanks. Well her concern is that she's splitting the money with her brother, and wants to make sure they aren't going to tax her after she gives him his share. I don't think they're on the best of terms, so she doesn't want to have to ask him for some of the money back if they tax her later on. She should probably talk to a probate attorney local to where the decedent lived to confirm whether any state or local inheritance tax was owed. If such a tax exists for that area, the threshold might be much lower than the federal estate tax exemption.
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Jul 2, 2020 19:18
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I had to amend my 2017 and 2018 returns in a way that didn't affect my tax liability (no money owed to the IRS or refund for me), but I still haven't sent the amended returns and since I'm living outside the US it will likely take all of July for them to get to the IRS. My tax liability for 2019 is also unaffected by the amendments in the sense that even with the amendments whatever tax I owe is covered by credits, but technically my 2019 return is using numbers from the amended 2017 and 2018 returns. Should I just send the amendments and e-file 2019 on time, or do I pay 2019 tax and file for an extension so that the amendments get there first?
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Jul 8, 2020 14:25
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Mecha posted:I had 1099 income for January and February but am switching to a W2 job next week, hopefully for the rest of the year. To figure an estimated payment for Q1, do I need to make a guess on my future net income for the W2 job, or can I just use 25%-33% of the 1099 income as an estimated payment? also rule of thumb set aside 30-35% of gross for taxes.
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Jul 8, 2020 22:06
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Ur Getting Fatter posted:I had to amend my 2017 and 2018 returns in a way that didn't affect my tax liability (no money owed to the IRS or refund for me), but I still haven't sent the amended returns and since I'm living outside the US it will likely take all of July for them to get to the IRS. File for 2019 with the correct numbers and send the amendments in, really they usually only care about each particular year so as long as you get 2019 right you should be OK. Worst case they send a letter asking about it if they didn't process the 2017/2018 amended returns by then, and you just reply with what happened (might be worth saving a copy of the amendments to send back with such a reply just in case), but doubt it will actually matter. You can file an extension if you're nervous, but to be honest part of me wonders how long it would take to process your amendments anyway so it might not help.
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Jul 8, 2020 22:41
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MadDogMike posted:File for 2019 with the correct numbers and send the amendments in, really they usually only care about each particular year so as long as you get 2019 right you should be OK. Worst case they send a letter asking about it if they didn't process the 2017/2018 amended returns by then, and you just reply with what happened (might be worth saving a copy of the amendments to send back with such a reply just in case), but doubt it will actually matter. You can file an extension if you're nervous, but to be honest part of me wonders how long it would take to process your amendments anyway so it might not help. Thanks yeah, I figured as much, it seems unlikely a human will even look at my return for months if ever, at which points hopefully the amendments will be on file. I've had the amendments done for ages but I've technically been on lockdown since March so getting to the post office for this has been last in my priorities.
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Jul 8, 2020 23:12
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