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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: Estate tax is owed by the estate, aka the legal entity distributing the inheritance. It does not apply to the inheritors.
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Jul 9, 2020 12:41
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I have a tax question related to taxable educational stipends: I'll be starting a new position soon that provides a stipend rather than wages, and I am trying to figure out how much to withhold for taxes (income tax + self-employment tax). According to the IRS, I think I do not have to pay any quarterly estimated payments for the remainder of the year because I had zero tax liability for all of 2019. Does this mean that I do not need to start manually withholding any taxes from my stipend until the beginning of 2021? Also, does this apply to state-level taxes as well?
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Jul 10, 2020 00:56
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There Bias Two posted:I have a tax question related to taxable educational stipends:
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Jul 10, 2020 01:07
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There Bias Two posted:I have a tax question related to taxable educational stipends: My sister is just starting a medical fellowship and just asked me the same question. As a resident she was a W2 employee, but now apparently is a contractor? I'm going to be filling out a 1040 ES to estimate what she needs to do including her husbands wages and witholding.
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Jul 10, 2020 01:20
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Dik Hz posted:My understanding of stipends is how they apply to graduate students. How can you be on a stipend and self-employed? I think I might be getting mixed up with FICA tax, which fellowships are apparently not subject to.
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Jul 10, 2020 01:30
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Yeah, when I was a postdoc fellow the university’s guidance was that it wasn’t subject to FICA.
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Jul 10, 2020 01:48
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EPICAC posted:Yeah, when I was a postdoc fellow the university’s guidance was that it wasn’t subject to FICA. Yeah, for public universities at least I know there is no FICA or the SE tax equivalent usually, I believe since you’re technically a state employee (not sure, this is going by being a grad student previously, not as a tax preparer). Boy I remember the howling at payday when the school screwed that one up and took it out of our paycheck  .
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Jul 10, 2020 17:05
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When I was a grad student, our stipend was treated like normal income with normal withholding. 
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Jul 10, 2020 18:43
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What do you do when your previous employer doesn't mail a W-2, they've closed, and the person in charge dodges your calls and texts?
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Jul 10, 2020 20:37
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Chief McHeath posted:What do you do when your previous employer doesn't mail a W-2, they've closed, and the person in charge dodges your calls and texts? If you can wait to file your taxes, file an extension and then try to get a transcript from the IRS and see if the info from the W-2 you didn't get is on there. Create an IRS online account and navigate to the transcript section to see if a W-2 & 1099 transcript is available for 2019. I have no idea when that information becomes available as the IRS is using broke rear end ancient equipment and has no staff. Otherwise, try to estimate what you earned, and what was withheld and report it on your return. If you have paystubs somewhere, use the last one or estimate based on them. If you're wrong, the IRS will correct you... eventually. Maybe you'll even be wrong in a good way and get more money back! You probably won't, but you'll at least have a good excuse to ask for any penalties to be abated if you do end up coming up short.
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Jul 10, 2020 20:45
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I am irresponsible and did not file my taxes yet. I have all my forms but I’m not entirely sure what the best way to file them is. I recall doing it last year through H&R Block’s website (I think) but are there any decent free services? I can fill out the forms and stuff I just literally don’t remember where I actually go to do all the filling out.
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Jul 11, 2020 00:48
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Josh Lyman posted:When I was a grad student, our stipend was treated like normal income with normal withholding. During grad school and my postdoc (same university , different lab) it depended on the source of funding. The department had a training grant, if you were paid with that you were Graduate Research Assistant, therefore were being paid for work, and had W2 income (still no FICA). If you had some external funding you were a Graduate Research Fellow, and therefore didn’t have “earned income” and therefore no W2. As a postdoc it was the same, paid through your advisors grant you were A Research Assistant, were an employee of the university, had W2 benefits, got the 401k match, etc. if you had an external fellowship you were a Research Fellow, were not an employee, had no earned income, no W2, no FICA, didn’t get a 401k match, and got charged more for non-employee insurance. My three years as postdoc fellow sucked.
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Jul 11, 2020 00:59
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Thumbtacks posted:I am irresponsible and did not file my taxes yet. I have all my forms but I’m not entirely sure what the best way to file them is. I recall doing it last year through H&R Block’s website (I think) but are there any decent free services? I can fill out the forms and stuff I just literally don’t remember where I actually go to do all the filling out. Free services are available through the IRS website if your income is below a certain threshold. I used to use esmart but they dropped out of the program so gently caress them. I tried Tax Slayer but couldn't stand their program. Tax Act seems to be working well enough for now, just need to find that last drat w2 to be done with it.
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Jul 12, 2020 04:37
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EPICAC posted:During grad school and my postdoc (same university , different lab) it depended on the source of funding. The department had a training grant, if you were paid with that you were Graduate Research Assistant, therefore were being paid for work, and had W2 income (still no FICA). If you had some external funding you were a Graduate Research Fellow, and therefore didn’t have “earned income” and therefore no W2. I actually double-checked on the principle sooner or later I'd have to answer this professionally. According to the IRS here, apparently if you're at least a half time student (i.e. taking classes) at the institution you're supposed to be exempt from FICA tax. Not sure what affects post doc (might just be the funding source like you said), so they can potentially be screwed like you said. Though I suppose "screwed over post doc" is a tautology really. My mom recently dug out a certificate my dad got for post doc work in UCLA and we were all surprised he even got that level of recognition (still laugh at the story he likes to tell about one of my mom's friends coming up to him after he got his degree and saying he was the first PhD she "wasn't in awe of" ).
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Jul 13, 2020 22:06
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So my wife's employer does something really odd. They give them checks to deposit into their HSAs. It's then basically on the honor system that they get deposited into the HSAs and not like checking. This amount is not included in the box 12 amount on her W2, nor is it included in her total income on her W2. We asked her payroll person about this. She said it's a "perk benefit and not taxable". What the hell do I even do about this? It sure seems to me like it's money that's just not included in any of the places it's supposed to be.
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Jul 13, 2020 22:59
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I filed today using FreeFillableForms and got a rejection notice because "Information from Schedule D does not match Form 1040, line 6." Line 6 of 1040 is for Capital Gain (or Loss) and asks for Schedule D if necessary. Schedule D, which I have to fill, directs me to line 22 because I have loss (drat you options trading), which instructs me to complete the Qualified Dividends and Capital Gain Tax Worksheet. The last line of the Worksheet tells me to fill in the resulting amount in line 12a of my 1040, but says nothing about line 6. Any ideas on what I should be putting in line 6?
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Jul 14, 2020 00:57
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wilderthanmild posted:So my wife's employer does something really odd. They give them checks to deposit into their HSAs. It's then basically on the honor system that they get deposited into the HSAs and not like checking. This amount is not included in the box 12 amount on her W2, nor is it included in her total income on her W2. The money they are giving you is almost certainly taxed, check the federal taxable line. As you've probably found, you can do contributions to an HSA with after tax money. When you file your taxes at the end of the year, you get to deduct anything you put in aftertax though. Whether that money comes from your bank account or from their check is irreverent. It sounds functionally equivalent to her just being paid X more and you putting X into the HSA. The aftertax method is slightly worse than from a paycheck deduction since you pay FICA tax as well.
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Jul 14, 2020 01:50
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Xenoborg posted:The money they are giving you is almost certainly taxed, check the federal taxable line. As you've probably found, you can do contributions to an HSA with after tax money. When you file your taxes at the end of the year, you get to deduct anything you put in aftertax though. Whether that money comes from your bank account or from their check is irreverent. It sounds functionally equivalent to her just being paid X more and you putting X into the HSA. So I did forget to mention the thing that already seemed weird to me prior to taxes this year. All these checks were given in exact round amounts with seemingly nothing deducted. I guess that's still possible somehow, but it would seem odd. Their payroll person claimed they aren't included anywhere on the W2 because they are "not taxable" and "is not a part of salary", which still seems odd, but maybe I misunderstood. Maybe this is a really dumb question, but when you refer to "federal taxable line", which line is that on the W2? Box 1? I guess in theory what I should claim is they are our contributions then? Edit: not claiming it as our contributions. Realized pretty quickly that's not what the employer seems to intend. TurboTax at least had a question related to this about employer contributions not listed on the W2. So for the moment I've included this amount in that box, but sheesh. Why couldn't they just include this in a normal way instead of this weird rear end check method. wilderthanmild fucked around with this message at 03:46 on Jul 14, 2020 |
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Jul 14, 2020 02:23
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As someone who has worked 130 hours already this month on returns, I dislike all of you who wait to the last minute after getting a 3 month extension to file.
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Jul 14, 2020 04:05
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Ungratek posted:As someone who has worked 130 hours already this month on returns, I dislike all of you who wait to the last minute after getting a 3 month extension to file. It's almost like there was a reason the country was given a 3 month extension
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Jul 14, 2020 04:13
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wilderthanmild posted:So I did forget to mention the thing that already seemed weird to me prior to taxes this year. All these checks were given in exact round amounts with seemingly nothing deducted. I guess that's still possible somehow, but it would seem odd. Their payroll person claimed they aren't included anywhere on the W2 because they are "not taxable" and "is not a part of salary", which still seems odd, but maybe I misunderstood. W2 boxes 1, 3, and 5 would include the HSA money if your company was reporting it as income for you. If its included there, you should list it as your contribution on your taxes so you get to deduct it, resulting in you paying no taxes on that money as advertised. I'm guessing the checks they gave you weren't paystubs with withholding noted on them. If its not, and they are giving you the money "under the table" I'm not sure what to do since taking the deduction seems dishonest since you weren't taxed on it in the first place. Additionally, the IRS get a form 5498-SA from your HSA saying how much was contributed, and they expect to see that match either your W2 (box 12 code W for employer contributions) and 8889 HSA form(Box 2 for self contributions, 9 for employer). Xenoborg fucked around with this message at 05:13 on Jul 14, 2020 |
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Jul 14, 2020 05:11
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Ungratek posted:As someone who has worked 130 hours already this month on returns, I dislike all of you who wait to the last minute after getting a 3 month extension to file. My tax guy called me today to remind me I hadn't filed yet.  I'm gonna slap an estimate in there and kick the can down the road.
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Jul 14, 2020 05:46
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H110Hawk posted:My tax guy called me today to remind me I hadn't filed yet. You mean extension? I wouldn't randomly estimate your taxable income. Ungratek posted:As someone who has worked 130 hours already this month on returns, I dislike all of you who wait to the last minute after getting a 3 month extension to file. Yeah, I was originally scheduled to come in to cover the store after the extended tax season was up Wednesday, but they begged me to come in earlier thanks to client load (unfortunately I scheduled tons of things to be done right before the 15th, so I'm only available on the 15th proper).
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Jul 14, 2020 07:29
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Ungratek posted:As someone who has worked 130 hours already this month on returns, I dislike all of you who wait to the last minute after getting a 3 month extension to file. It's okay, now most of your clients can wait who knows how long to get their refund 
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Jul 14, 2020 08:11
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I think my wife’s company forgot to check the “retirement plan” box on her W-2. It was checked last year plus she has a pension and a 401k so pretty sure it should be checked. Does this box just affect deductible IRAs? She didn’t get a corrected W-2 and you would think someone would have noticed by now.
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Jul 14, 2020 12:34
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A bunch of new posts. Huh, this isn't mid-April
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Jul 14, 2020 15:05
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MadDogMike posted:You mean extension? I wouldn't randomly estimate your taxable income. Yes, and I have it calculated out accurately near as I can tell. Just need to pay the bills and get the extension postmarked. At most I would be off by a small amount of dollars instead of a large amount of dollars.
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Jul 14, 2020 15:27
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Moneyball posted:A bunch of new posts. Huh, this isn't mid-April The extended tax deadline is tomorrow, so it basically is.
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Jul 14, 2020 19:13
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Direct pay only let's you do two payments in 24 hours. Is this revenge for waiting to the last minute? There's 3 payments due tomorrow :/
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Jul 14, 2020 23:18
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Shame on you all. Shame. Shame.
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Jul 15, 2020 00:43
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My return got accepted, this is my first year filing a schedule D  how long will it take the IRS to track me down and tell me I screwed it up?
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Jul 15, 2020 00:53
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There Bias Two posted:The extended tax deadline is tomorrow, so it basically is. ya i know. FBS posted:My return got accepted, this is my first year filing a schedule D How did you feel, giving the IRS the D?
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Jul 15, 2020 01:03
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Moneyball posted:How did you feel, giving the IRS the D? Well it was my first time so I was pretty nervous and I had to try several times to get it all in
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Jul 15, 2020 01:16
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Ungratek posted:As someone who has worked 130 hours already this month on returns, I dislike all of you who wait to the last minute after getting a 3 month extension to file. It was definitely an experience having my normal April filers wait the extra 3 months, and my October filers choosing this as the first year that they will file on time.
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Jul 15, 2020 03:05
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FBS posted:My return got accepted, this is my first year filing a schedule D FBS posted:Well it was my first time so I was pretty nervous and I had to try several times to get it all in IRS will start to show signs about 3 months from now. 9 months from now you'll be really busy! E: Oh wait, you're talking about sex. A couple of weeks.
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Jul 15, 2020 03:32
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FBS posted:My return got accepted, this is my first year filing a schedule D Check your PMs.
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Jul 15, 2020 06:01
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Discendo Vox posted:Check your PMs. 
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Jul 15, 2020 06:50
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I work as a standard W-9 employee in the health care world. I've recently been asked to do some consulting work on the side. My company is comfortable with it, but I need to decide if I would setup an LLC. or get paid as a 1099. There are obviously liability benefits to setting up the LLC, but are there any tax benefits? I know I am responsible for both sides of the payroll tax, which is why I upped my rate to compensate for that amount, but is there any value in doing the LLC in this world?
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Jul 15, 2020 15:38
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A single member LLC is completely disregarded for tax purposes. All the income passes through to you and has to be reported on the 1040.
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Jul 15, 2020 15:58
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sullat posted:A single member LLC is completely disregarded for tax purposes. All the income passes through to you and has to be reported on the 1040. Quick and easy. Thanks for the response.
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Jul 15, 2020 16:20
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