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I just filed my 2019 taxes and I have a question about the specifics of resident/nonresident state taxes for 2020. I moved to a new state and spend the majority of my residency there, but still consider my previous state address my "home" including setting that address on my IRS tax information, receive mail there, have a valid license with that address, and still visit that state for periods of time. (I'm separated but still legally married, and my spouse lives at the aforementioned address.) Can I still consider my previous state to be my "resident state" and file my new state as a nonresident state?
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Jul 15, 2020 17:32
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I mailed in my tax forms at the beginning of March (to the California processing center) and the IRS still hasn't processed them (I haven't received my refund and the site to check my return status says they haven't received anything from me yet). Is their mail-in processing that backed up? Or should I assume my tax forms get lost in the mail somewhere and I need to send them in again? Should I request an extension?
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Jul 15, 2020 19:16
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CmdrRiker posted:I just filed my 2019 taxes and I have a question about the specifics of resident/nonresident state taxes for 2020. I moved to a new state and spend the majority of my residency there, but still consider my previous state address my "home" including setting that address on my IRS tax information, receive mail there, have a valid license with that address, and still visit that state for periods of time. (I'm separated but still legally married, and my spouse lives at the aforementioned address.) Can I still consider my previous state to be my "resident state" and file my new state as a nonresident state? This is probably going to depend on which states, and the details of your actions. There are specific ways to maintain residency, or terminate residency. The specifics are also different between agencies, e.g. hunting licenses may require you to live there a full year vs drivers licenses you can change a lot sooner. Taxes probably has its own set of rules on residency. As a starting point, google [your state] department of revenue, residency.
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Jul 15, 2020 20:11
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Welp. My tax guy wasn't sure what to do with my ESPP basis but somehow he thought I owed an impossible amount of money. Took a swag at it and paid the piper. Guess who is in the market for a new tax person, and apparently has to amend 2018 too? 
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Jul 16, 2020 00:47
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Epitope posted:This is probably going to depend on which states, and the details of your actions. There are specific ways to maintain residency, or terminate residency. The specifics are also different between agencies, e.g. hunting licenses may require you to live there a full year vs drivers licenses you can change a lot sooner. Taxes probably has its own set of rules on residency. As a starting point, google [your state] department of revenue, residency. "Domiciled" might actually be the better word to check for, if memory serves most states judge residency for tax purposes by that. A lot of times it does boil down to "where are you doing the actual work earning the income in question" though, but check the state rules for specifics. Mr.Radar posted:I mailed in my tax forms at the beginning of March (to the California processing center) and the IRS still hasn't processed them (I haven't received my refund and the site to check my return status says they haven't received anything from me yet). Is their mail-in processing that backed up? Or should I assume my tax forms get lost in the mail somewhere and I need to send them in again? Should I request an extension? They aren't showing as received at Where's My Refund? Might be worth sending them in again then (maybe include a note explaining the situation). Don't worry about an extension if it's a refund though, no penalty for being late on that. Also, way too drat many people in for the last day (which naturally is my first back at the office). Couldn't help but figure given it's coming up at the end of the month it'll just be about the right time for me to receive Covid symptoms for my birthday  .
MadDogMike fucked around with this message at 00:59 on Jul 16, 2020 |
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Jul 16, 2020 00:57
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H110Hawk posted:Welp. My tax guy wasn't sure what to do with my ESPP basis but somehow he thought I owed an impossible amount of money. Took a swag at it and paid the piper. Guess who is in the market for a new tax person, and apparently has to amend 2018 too? loving typical. They put in company brokerage account poo poo that's already on your W2. Yeah, this is a person who needs to go back to HR Block.
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Jul 16, 2020 00:58
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Motronic posted:loving typical. They put in company brokerage account poo poo that's already on your W2. Hey, don't send tax preparer errors my way, I just started back in the "clean up mistakes" part of the off-season, I don't need more work!
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Jul 16, 2020 01:00
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Motronic posted:loving typical. They put in company brokerage account poo poo that's already on your W2. Yup. "strange it's off by that amount on my w-2 that says espp dd think that's it?" <blank stare>
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Jul 16, 2020 01:06
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MadDogMike posted:They aren't showing as received at Where's My Refund? Might be worth sending them in again then (maybe include a note explaining the situation). Don't worry about an extension if it's a refund though, no penalty for being late on that. No, it's not showing up at all on Where's My Refund. I checked r/personalfinance and I'm not the only one with issues, people who sent their returns in in February were saying they've only been processed in the past few weeks, so it might just be that they're extremely backlogged. I'll wait another month and if it still hasn't been processed I'll mail it in again. Thanks 
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Jul 16, 2020 02:33
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Mr.Radar posted:I mailed in my tax forms at the beginning of March (to the California processing center) and the IRS still hasn't processed them (I haven't received my refund and the site to check my return status says they haven't received anything from me yet). Is their mail-in processing that backed up? Or should I assume my tax forms get lost in the mail somewhere and I need to send them in again? Should I request an extension? Supposedly there's still a huge pile of unopened returns. And they still haven't processed a lot of electronically filed returns either. 
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Jul 16, 2020 02:34
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Mr.Radar posted:I mailed in my tax forms at the beginning of March (to the California processing center) and the IRS still hasn't processed them (I haven't received my refund and the site to check my return status says they haven't received anything from me yet). Is their mail-in processing that backed up? Or should I assume my tax forms get lost in the mail somewhere and I need to send them in again? Should I request an extension? We're also generally advising people not submit a second copy since that can lead to further delays as the processing center stops everything to get it sorted out and and sometimes sends you a letter asking for an explanation before they move forward.
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Jul 16, 2020 03:15
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Peyote Panda posted:I'm one of the lucky schmucks that answers phones at the IRS and yeah, it's that backed up. The processing centers shut down in mid-March and they're still not fully reopened. Our current guidance is that generally speaking you're looking at normal processing timeframes restarting on August 1st. For example if you mailed in a return it's normally a 6-week processing timeframe so you're looking at it finishing processing around mid September (6 weeks from 8/1/2020) assuming no other issues arise. Hopefully you'll see it update on Where's My Refund to at least show it's in processing sooner than that. Does that timeline apply to e-returns as well? A lot of folks close to me who've e-filed in the past few months got their state returns promptly but the IRS website just says "We've received your return and are processing it."
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Jul 16, 2020 04:51
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Small White Dragon posted:Does that timeline apply to e-returns as well? A lot of folks close to me who've e-filed in the past few months got their state returns promptly but the IRS website just says "We've received your return and are processing it." For example, the latest guidance we've gotten regarding ERS (the system that usually handles the incomplete/missing forms/information issues) is that it'll probably be end of September/mid-October before they're even caught up with the back log. I feel bad for the callers because in a fair number of those cases it's either not clear what's missing at this stage from the limited information the phone customer service reps can see so I can't even say "Fill this in and send it to us so we can put it in the queue." In other cases, the letter detailing the needed forms went out before the shutdown and they've sent in the requested information but there's no way to verify at this time if we got it and it's sitting in a pile somewhere or if we never received it. And they've been holding on the line for an hour or two at that point to get the equivalent of  And God help anyone whose return had to go to Exam. We haven't heard when that department will be open again much less moving forward with case processing. I also have a sinking feeling - hopefully misplaced - that even the extended timeframes we've currently been given are going to turn out to be overly optimistic given that major processing centers like Fresno and Austin are in current COVID hotspots. I've already heard of at least one incident of a building at one of the processing campuses being opened only to have to be closed for a deep cleaning after workers there came down with the roni and this was over a month ago when we weren't going into Wave 2: Electric Boogaloo.
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Jul 16, 2020 06:14
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Pressing F to pay respects to a call center goon. Hang in there! You working from home or are they making you go back to the office?
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Jul 16, 2020 15:42
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sullat posted:Pressing F to pay respects to a call center goon. Hang in there! You working from home or are they making you go back to the office? The few call site reps who don't have the capacity for telework are being called in to the office but the numbers of people on site will hopefully be low enough to maintain easy social distancing. And with the telework stuff rolled out the phones should still remain operational now even if the processing centers fall back into hellworld.
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Jul 16, 2020 16:35
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I’m one of those people who got a coronabux payment for a dead relative, so I followed the instructions on the IRS website and sent them a check for the same amount to return it. That was 2+ months ago and the money still has not been withdrawn from my account. Should I assume they never got it, or that they still have it but because of everything else going on just haven’t deposited it? I’m afraid to cancel a check on the IRS.
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Jul 17, 2020 16:12
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My mom died last year. My brother and I are 50-50 beneficiaries on her estate. We are currently selling the house (in the name of the estate) and will then split the funds. The estate was far too small to require an estate tax return. Because the real estate market went weirdly hot, the house is under contract for more than we expected. I'm now wondering if we will owe tax due to appreciation. We didn't get an appraisal done at the time of my mom's death... wasn't really the first thing on our mind at the time... so I have no idea how we'd even get a number for what our step-up basis for the house was. Who do I even go to for advice on this?
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Jul 23, 2020 02:36
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secret volcano lair posted:My mom died last year. My brother and I are 50-50 beneficiaries on her estate. We are currently selling the house (in the name of the estate) and will then split the funds. The estate was far too small to require an estate tax return. Whomever is handling the probate on the estate. Was the house in a trust? You don't owe anything federally as far as I know. The estate is incurring the gain, not you.
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Jul 23, 2020 02:48
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H110Hawk posted:Whomever is handling the probate on the estate. Was the house in a trust? The house was just in my mom's name & currently in the estate's name. Executor is a relative in a different time zone. We've been dealing with most of the details in practice. The relative had a local estate lawyer help her open probate / get appointed by the court, but has since just been handling things on her own. She's uncertain about this issue as well. I guess we should strongly encourage her to get back in contact with the lawyer.
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Jul 23, 2020 03:04
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secret volcano lair posted:get back in contact with the lawyer. That is the answer.
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Jul 23, 2020 03:08
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Badger of Basra posted:I’m one of those people who got a coronabux payment for a dead relative, so I followed the instructions on the IRS website and sent them a check for the same amount to return it. If you do need to call then you'll need someone who is either a court-certified representative of the estate or a power of attorney assigned after death by said rep to get account information (such as looking into the account for potential payment info). If you have someone in either of those categories but they haven't filed the necessary forms with the IRS (such as a form 56 for the estate representative/administrator), they'll want to call while they're at a fax machine so they can fax the over the necessary forms to whomever is assisting them on the phone to verify their legal authorization for account information. Unfortunately, we don't take emailed documents though you can eefax if that's an option for you. Check out form 56 and publication 559 on irs.gov if you need more info about this. If you ultimately end up needing to cancel the original check and send in a new one later, don't worry about the IRS. A voided check (or electronic payment that is cancelled or had a stop payment placed on it, for that matter) usually doesn't cause any penalties, you only get charged with a Bad Check Penalty if a payment doesn't go through due to insufficient funds. Kind of like the old ISF joke goes, we only charge you a fee when we know you don't have the money.
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Jul 25, 2020 19:50
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Hi.. not sure if this is the right place to post this but since a lot of knowledgeable people look in here I thought I'd post it here.. if it should go in another thread would be grateful to be redirected. Basically for the past 10+ years or so the US DoT has been sending me a tax refund check. However the name of the person it's addressed to is my sister. I am pretty sure that someone at a credit bureau or the IRS itself mixed up me and my sister's SSN so now I have a check for my refund that's in her name. I am pretty sure I could just cash the check since it is technically mine and the SSN goes to my name, but on the envelope it has the foreboding words, "Forgery of endorsements on Treasury checks is a Federal Crime / $10K fine & 10 years" What's the easiest way to clear this up? Not only to get the check in my name but to also get my SSN cleared up? I remember calling the IRS ~5 years ago about it but they made it seem like an arduous process. Is it better to get a lawyer to do this? Thanks.
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Jul 28, 2020 08:37
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Let me get this straight. You have a refund check for $$$. It is made out to Strong Saucette (your sister). But you think that the money that the refund represents is your refund? First off, a bank isn't going to let you cash a Treasury check made out to your sister. So if you want the money, you'll need to call up the IRS to get the check reissued in your name. As far as how to do that or what to do, yeah, it will be a pain. More so for the person you're talking to than you, however. There are a number of things that might be wrong, so as far as precisely what they will nee to do, I haven't the foggiest. You wouldn't happen to be twins, would you? e: a lawyer won't be able to help you on this. Or at least, they could if you signed the right papers, but they'd just be sitting on the phone on hold on your behalf instead of actually doing anything lawyerly.
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Jul 28, 2020 16:54
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Have you asked your sister? What does she say? Is she dead? Does it match the refund amount to the penny on your return or her return?
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Jul 28, 2020 17:59
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This may be a question larger than the tax thread, but this seems like the logical place for it. I need help. tl;dr - I'm going to be a self-employed 1099 contractor next year working full time from home. It's not related to my current employment, which will end at the end of the year. I'm not sure how I should structure my "business" (sole proprietor, single person LLC, s-corp) and I need help understanding for my specific situation. More details: Yesterday I talked with a CPA. Her explanation to me was an s-corp can be tax advantaged in the event you don't "need" all of your 1099 income as you'd only need to pay "half" of the income taxes (payroll side, not individual side or whatever). So now that I thought about it a bit more, I'm not sure how well this fits my particular case. Without getting into all the details, I'm going to work with family in their business. Their preference is to have me be 1099 so they don't have to worry about all the payroll blah blah blah, it's currently a 2 person company. I'm not worried about them taking advantage of me, it will be a very flexible position and I'll be well compensated (salary as well as bonus). My wife will be able to get the health insurance though her job, etc. It sounds like the only downside of this situation is just setting aside 35-40% of earnings, having the tax prep, having to pay quarterly taxes, etc. Since I'll be basically "an employee doing a job", my expenses will be very minimal outside of things like I may buy a laptop, random home-office expenses, minimal travel (mileage), etc. The arugument the CPA made of saving taxes with an s-corp if you don't need all of your 1099 income as salary doesn't necessarily resonate with me all that much because what the hell is the "business" going to spend money on (and thus saving part of the income tax)? For the most part I'd imagine the bulk of what "my business" makes is going to end up as salary/bonus to myself at some point in time, which I'd still ultimately be paying that other side of the tax on anyway. I know I'm probably misunderstanding something since this is all brand new to me, but I just don't really understand what the "business" would do with that money that may just be sitting around.
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Jul 28, 2020 20:08
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I would absolutely insist on getting paid as a W2 employee. Even if you trust them absolutely, this is a massive red flag, if they can't handle the modest bookkeeping requirements associated with paying you properly, and they are too cheap to pay someone to do it for them, then are they really people you want to depend on for your paycheck? Either they are trying to screw you or they have no idea what they are doing, either way you should run.
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Jul 28, 2020 20:38
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sullat posted:Let me get this straight. You have a refund check for $$$. It is made out to Strong Saucette (your sister). But you think that the money that the refund represents is your refund? First off, a bank isn't going to let you cash a Treasury check made out to your sister. So if you want the money, you'll need to call up the IRS to get the check reissued in your name. As far as how to do that or what to do, yeah, it will be a pain. More so for the person you're talking to than you, however. There are a number of things that might be wrong, so as far as precisely what they will nee to do, I haven't the foggiest. You wouldn't happen to be twins, would you? H110Hawk posted:Have you asked your sister? What does she say? Is she dead? Does it match the refund amount to the penny on your return or her return?
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Jul 28, 2020 21:17
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Strong Sauce posted:There's no mistaking who the money belongs to, the money is from my tax refund because the refund amount is what I was suppose to get. I don't work for the IRS, but this seems like the most likely factor here, not the name/ssn stuff. dreesemonkey posted:Yesterday I talked with a CPA. Her explanation to me was an s-corp can be tax advantaged in the event you don't "need" all of your 1099 income as you'd only need to pay "half" of the income taxes (payroll side, not individual side or whatever). So now that I thought about it a bit more, I'm not sure how well this fits my particular case. Ask your CPA. Is this because you can do things like a solo 401k? Or hold it for a year and pay youreslf a dividend? or ... ? Otherwise if they're going to make you go through hassle of being 1099 then you need to make sure you charge them an appropriate premium (employer payroll taxes, accounting costs, etc.)
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Jul 28, 2020 22:27
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Strong Sauce posted:There's no mistaking who the money belongs to, the money is from my tax refund because when this issue first popped up they initially sent the check for me with my sister's name but with my SSN (and also the refund amount is what I was suppose to get). I don't want to go into further details about the names but our legal names are not English names, they are romanized names where the difference between our names is two letters. And no it's not the last two letters of the name. My sister knows about the situation. Yeah, then this is a matter of sorting out the bureaucratic mistake and you'll just need to bite the bullet and call the IRS to get the refund moved over to your SSN/Name combo.
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Jul 28, 2020 23:12
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Strong Sauce posted:Hi.. not sure if this is the right place to post this but since a lot of knowledgeable people look in here I thought I'd post it here.. if it should go in another thread would be grateful to be redirected. Are you saying you never cashed your old checks? Cause you're hosed on most of those, checks expire after some number of months that I forget and the IRS says gently caress you if you want money from before 3 years ago. If that's the case you should have sacked up and did the work. As for helpful advice, do you know for sure that your social security cards are correct? I would contact the social security administration and start there because the IRS just uses the SS database.
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Jul 29, 2020 07:23
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Speaking unofficially, do check the social security database, but there is also a wide, beautiful spectrum of ways that the IRS's desperately underfunded, ancient, manually populated databases can mangle names. The good news is I think that at least confirming the problem can be done pretty quickly at a service center, or maybe by phone, once things open up again. This sort of thing happens often.
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Jul 29, 2020 09:20
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Epi Lepi posted:Are you saying you never cashed your old checks? Cause you're hosed on most of those, checks expire after some number of months that I forget and the IRS says gently caress you if you want money from before 3 years ago. Discendo Vox posted:Speaking unofficially, do check the social security database, but there is also a wide, beautiful spectrum of ways that the IRS's desperately underfunded, ancient, manually populated databases can mangle names. no, they keep sending me a new check for the same refund i've never cashed since like ~2009. i honestly did not know there was something like a social security database. seems like something our government would not have since that seems like it would help people... so of course i go on there right now and somehow a database is offline during non business hours... yup sounds like a government owned website. i'll check it tomorrow i guess.
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Jul 29, 2020 09:28
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dreesemonkey posted:This may be a question larger than the tax thread, but this seems like the logical place for it. I need help. They are advising you to setup an s-corporation to save on payroll taxes. You owe Medicare/SS taxes on wages and self employment income. Forming and running the earnings through a s-corporation makes your earnings not meet the definition of self employment income, and therefore not subject to these payroll taxes. As an owner of the s-corporation, you would need to take some salary from the s-corporation, paying payroll taxes, but presumably not all of it (ie: if you received 100k of 1099 income, your s-corp could presumably pay you 80k on a W-2 and 20k as a distribution - with the 20k distribution not being subject to payroll taxes). With that said, I generally don't recommend s-corporations to taxpayers with your facts. The IRS takes a dim view of lightly capitalized s-corporations with only a single employee. A more detailed discussion of this issue is here: https://www.forbes.com/sites/brianthompson1/2019/02/17/should-i-have-a-single-person-s-corporation/#3546c3ea6c05 Single person LLC is probably the way to go for you. As a bonus you could also participate in a SEP IRA, which you couldn't in a s-corp format. Make sense? Hope the above helps. edit: and the above doesn't consider all the additional bookkeeping and compliance expenses you would have in order to maintain a s-corporation. Admiral101 fucked around with this message at 11:24 on Jul 29, 2020 |
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Jul 29, 2020 11:22
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I don't know the industry lingo so I'm not sure how to best start my search, but how can I go about finding accounting/auditing firms that specialize in small business / corporate finances? Basically, if a business co-owner wants a neutral, third-party to take a look the company books/finances kept and maintained by the other owners. Edit: Just saw the Accountant megathread. I'll post this there.
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Jul 29, 2020 13:23
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Strong Sauce posted:no, they keep sending me a new check for the same refund i've never cashed since like ~2009. Yeah the IRS computers are nothing if not insistent. If they think they owe you a refund they will keep sending you the check like clockwork every 15 months or so.
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Jul 29, 2020 15:41
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Admiral101 posted:They are advising you to setup an s-corporation to save on payroll taxes. You owe Medicare/SS taxes on wages and self employment income. Forming and running the earnings through a s-corporation makes your earnings not meet the definition of self employment income, and therefore not subject to these payroll taxes. As an owner of the s-corporation, you would need to take some salary from the s-corporation, paying payroll taxes, but presumably not all of it (ie: if you received 100k of 1099 income, your s-corp could presumably pay you 80k on a W-2 and 20k as a distribution - with the 20k distribution not being subject to payroll taxes). Thank you, this is very helpful. (Also thank you H110Hawk and Konstantin for your comments and concerns) I think my CPA's primary concerns were that I'll be earning bonuses, which could be substantial. I think without knowing what my bonuses will be I should probably just try to do a single member LLC at least for the first year and deal with the tax hit. Then maybe it would make sense to re-evaluate at the end of next year.
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Jul 30, 2020 14:47
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I would definitely get the company to increase your pay by 8% is to compensate. They’re just dumping the employer payroll tax onto you. I guarantee that’s why they want to set it up the way they are. Single person LLC is the way to go. It’s not even a separate return. You’d just be putting everything into Schedule C, and like mentioned above, you can plow money into a SEP if the money is as good as you’re saying. You can take small deductions and home office expense. All it’ll require will be a small annual report fee on the SOS side and maybe a PPT depending on your state (which you can deduct on C)
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Jul 31, 2020 04:30
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Kinda weird no one is mentioning the Qualified Business Income Deduction.
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Jul 31, 2020 04:48
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sale on Banksy art posted:Kinda weird no one is mentioning the Qualified Business Income Deduction. The discussion was around business structure as a 1099 contractor. There are barely any differences between SM LLC and s-corporations for 199A unless we're talking 300k+ numbers, which I'm pretty sure we're not.
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Jul 31, 2020 14:36
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Admiral101 posted:The discussion was around business structure as a 1099 contractor. There are barely any differences between SM LLC and s-corporations for 199A unless we're talking 300k+ numbers, which I'm pretty sure we're not. No, we're not.
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Jul 31, 2020 15:59
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