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Edward Mass posted:I opened a Roth IRA on New Year's Eve. Is it at all possible I have a taxable amount to put in line 4b?
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Jan 18, 2021 06:30
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MadDogMike posted:Yeesh, I won't claim perfection but I can't recall even coming close to screwing up that badly. Starting to sound like the more bewildering issues I've dealt with in the offseason, where you can't even figure out HOW somebody makes the mistake they did. I can follow misreading one of those mammoth 1099-B forms and missing something, or typos, or whatever, but the mind melts sometimes at how they manage to do what they did. Just wish I could offer to take a look, but doubt you're near me in Delaware (also depending on your states I might be bad myself; California in particular kind of scares me for anything above basic W-2 income, New York is bad enough Admiral101 posted:Are you sure this 'overpayment' isn't intended to cover the first quarter or two of the following years tax liability? I don't understand, but it has something to do with multiple K-1s, some investment, some requiring payment of self-employment taxes, and form 8960.
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Jan 19, 2021 03:51
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gvibes posted:I have both NY and CA returns, so... But thanks. I'm super curious, how did you discover this and how do you know that it's true? It's way easier to gently caress up and underpay when all of those things are involved as opposed to overpay. Are you sure whoever is telling you it's an overpayment is actually knowledgeable and trustworthy?
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Jan 19, 2021 05:52
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Weird HSA question incoming: We had our second kid in 2020, and because we're in the US we paid $LOL for the privilege. Decent insurance so out of pocket it was on the order of $3k, and we paid it out of our HSA. About a week or two ago we received a check from the hospital with a letter that says they overcharged us for some stuff. Cool, but since we paid them out of the HSA, we now have $550 that I'm not sure what the tax status is. More complicated is the fact that this 2020 money technically. I know we're still in the window for making prior-year contributions, but I dunno if receiving the check in 2021 makes any difference. The other complicating factor is that we don't have an HSA-eligible insurance plan anymore (not since 2019 IIRC). So I have no real way to make 2020 contributions. The bank's contribution form doesn't have an explicit mechanism to return unqualified contributions. I'm sure I can ask, but HSAs are not their forte; it's just a no-frills HSA at our CU, so I don't have much confidence that they could give me an accurate answer (their form even says "poo poo's complicated, go ask someone else if you have questions"). What do we need to do here? I know this is small potatoes, but in total we took about $4k from the HSA in 2020 (all qualified... or at least it was at the time), so knowing my luck this would trigger an audit. I'd like to address this head on rather than hope it slides and then have to scramble to find receipts and have to explain everything to the IRS and pay fines etc. etc. DaveSauce fucked around with this message at 16:52 on Jan 21, 2021 |
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Jan 21, 2021 16:48
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Just deposit the check in your checking account. Claim ignorance if anything happens. It won't. Produce the bills you used to get reimbursed. Unless you somehow want it back in your hsa, but don't want that and it's fine. There is probably a more correct answer here but I wouldn't even think twice about it. Don't bring it up.
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Jan 21, 2021 17:10
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I mean that's the realistic answer, and it's certainly plan B. I know the chances are small of anything really coming of this, but I really don't want to screw around with an audit that's going to waste a bunch of my time just so they can claw back maybe $200 or so in taxes/penalties. My hope is that there's an easy "whoopsie" way to put money back and just be on our way... maybe some magic word or IRS form I can ask my bank about. Ideally the money would go back in the HSA just so I don't have to fill out tax forms for it. It'll get used eventually, but honestly I don't care as long as I don't have the IRS on my back.
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Jan 21, 2021 17:42
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It seems to me that the easiest 'correct' answer would be to report the amount billed ($4000 - $550) on the HSA form and then $550 as an ineligible withdrawal and take the the $110 hit.
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Jan 21, 2021 18:07
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DaveSauce posted:I mean that's the realistic answer, and it's certainly plan B. I know the chances are small of anything really coming of this, but I really don't want to screw around with an audit that's going to waste a bunch of my time just so they can claw back maybe $200 or so in taxes/penalties. This would be considered a “mistaken distribution”, so contact your HSA admin to see what they do to handle such add-backs. You should be able to do it before April 15th and it won’t be taxable.
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Jan 21, 2021 18:35
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MadDogMike posted:This would be considered a “mistaken distribution”, so contact your HSA admin to see what they do to handle such add-backs. You should be able to do it before April 15th and it won’t be taxable. Ah, there it is! I couldn't figure out what words to google to properly describe the situation, but "Mistaken Distribution" seems to be it. Thanks! sullat posted:It seems to me that the easiest 'correct' answer would be to report the amount billed ($4000 - $550) on the HSA form and then $550 as an ineligible withdrawal and take the the $110 hit. Does it matter that we took the distribution in 2020 for 2020 expenses, but the provider sent us the check in 2021? This does seem like the easiest option (if the "mistaken distribution" option doesn't fly with the bank), but I didn't know if the timing of the money would be an issue that I'd have to account for somewhere.
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Jan 21, 2021 19:42
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DaveSauce posted:Ah, there it is! I couldn't figure out what words to google to properly describe the situation, but "Mistaken Distribution" seems to be it. Thanks! Ask for an updated bill.
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Jan 21, 2021 20:14
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I started a new job last June and my Virginia state withholding defaulted to 1 based on my federal taxes being single filer. I just discovered that our HR portal lets me increase the number of state withholdings without additional hassle which should help reduce my state tax refund in the future. Is there any reason I shouldn’t do this?
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Jan 22, 2021 18:24
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It probably varies by state, but I've gone the last several years with 1 withholding federally and 99 withholding for OK state (My job gets a credit so I pay 0 state income tax) and haven't had any issues.
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Jan 22, 2021 18:47
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Josh Lyman posted:I started a new job last June and my Virginia state withholding defaulted to 1 based on my federal taxes being single filer. I just discovered that our HR portal lets me increase the number of state withholdings without additional hassle which should help reduce my state tax refund in the future. Is there any reason I shouldn’t do this? Only danger I can see is over-tuning and tempting your state's version of the Underpayment of Estimated Tax Penalty - idk much about VA so not sure if that exists (quick google says it's basically Federal interest rate so basically unimportant) It's probably fine
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Jan 22, 2021 18:52
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Business tax question, if appropriate here... My wife started an LLC with her sister in 2020. Now she is filing form 1065 to generate K1, and they each contributed a couple thousand dollars just to start the business. No income was generated in 2020. She is using TurboTax, and there is a question about how much each member of the LLC "contributed". Should she count the couple thousand dollars that she and her sister infused the business with for startup cash flow as "official capital contributions", or a loan? Or I guess...what's the difference between the two, if it's not possible to say which is actually a better idea? They do intend for the business to pay them back when the business generates income. Or should she leave member contributions and distributions both as zero? French Canadian fucked around with this message at 23:20 on Jan 22, 2021 |
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Jan 22, 2021 23:15
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French Canadian posted:Business tax question, if appropriate here... I would probably go with capital contributions since I'm not sure a private personal loan is functionally different here, guessing the "loan" entry is to see if she's holding any recourse/nonrecourse loans in the partnership's name. Basis is important because if she gets a distribution of cash from the partnership, anything up to her basis is treated as a return of investment and anything above that is considered a taxable gain. So my guess if you're expecting to be paid back mark her contribution to count it as capital contributions so the repayment isn't treated as taxable. Though if anybody else wants to weigh in, feel free; partnership basis was one of the more obnoxious parts of learning the 1065 for me (and I obviously don't use TurboTax), so somebody else might have more or better insight here.
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Jan 23, 2021 02:55
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MadDogMike posted:I would probably go with capital contributions since I'm not sure a private personal loan is functionally different here, guessing the "loan" entry is to see if she's holding any recourse/nonrecourse loans in the partnership's name. Basis is important because if she gets a distribution of cash from the partnership, anything up to her basis is treated as a return of investment and anything above that is considered a taxable gain. So my guess if you're expecting to be paid back mark her contribution to count it as capital contributions so the repayment isn't treated as taxable. Though if anybody else wants to weigh in, feel free; partnership basis was one of the more obnoxious parts of learning the 1065 for me (and I obviously don't use TurboTax), so somebody else might have more or better insight here. Thanks! Sounds like this was helpful to her efforts but yeah if there's any further takes on it...all the better.
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Jan 23, 2021 15:53
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French Canadian posted:Thanks! Sounds like this was helpful to her efforts but yeah if there's any further takes on it...all the better. Treat as capital contributions/equity. Several bad things can potentially come out of partner loans and nothing good.
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Jan 23, 2021 17:16
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Looking to get my Roth IRA contribution eligibility settled out. Does anyone have a nice Excel 1040 template for 2020 that they can link? I've used them in the past and vastly prefer those over throwing my data in one of the free services to be harvested. It doesn't need to be good enough to print off and file, as I'll just handle the forms manually when it comes to that but good enough to get my amount owed and such. Thanks in advance!
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Jan 23, 2021 19:08
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My husband got his green card in October 2020 (he was a nonresident alien prior to that.) As expected he didn't get any stimulus payments because the IRS went off of his 2019 tax return when he was a nonresident alien. We're going to file separately, and I'm looking at what he can claim for recovery credit on his 2020 return. From what I'm seeing, the instructions make no mention of if you needed to be eligible at the time the payments were issued, or if you just need to be eligible at some point in 2020. Any ideas?
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Jan 25, 2021 23:51
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Household employer question: We started employing a nanny in our house last year, we have been withholding appropriate employer taxes and all that. I requested employer ID numbers from both the feds and my state (WI). I was preparing to have to do quarterly 940/941 forms to report the income, but I'm now seeing that it's probably easier to slap a schedule H onto my annual taxes and call it a day. Should I be concerned that not filing a 940/941 is going to incur a fee? IRS website states they charge employers fees if they do not file in a timely manner. Is there a way to notify them like...yo, I submitted this on my personal taxes? EID appears to still be needed for the schedule H, so I'm not sure if there is a point where having an EID but not submitting a 940/941 is gonna bite me in the rear end. Thanks! First time doing this and I should probably just pay someone to do it, but I'm stubborn.
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Jan 26, 2021 05:51
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My employer over-contributed to my HSA by several cents. They've directed me to talk to the HSA custodian who seemed confused. Is this worth trying to fix? I know there's a 6% tax on excess contributions that applied to several cents literally rounds out to zero.
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Jan 26, 2021 06:19
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If I have a job in NY and a job in CA (both W2s), but have lived in MA since May - do I still file a MA return? I'm an official resident with a MA license and MA plates and all that, but the other states already taxed my income.
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Jan 26, 2021 14:49
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Unless MA has some special statute then yes. You will have to file nonresident returns to CA and NY.
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Jan 26, 2021 16:10
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Ok thanks I'll do that. I already did most of the CA and NY returns, and I actually got a 1099-HC from the MA DOR in the mail within an hour of posting this (as if I needed any more evidence that all three are required).
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Jan 26, 2021 17:17
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Small White Dragon posted:My employer over-contributed to my HSA by several cents. They've directed me to talk to the HSA custodian who seemed confused. If it rounds down to $0 you don’t have to worry about it, IRS always rounds to the nearest dollar for their calculations.
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Jan 26, 2021 17:20
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marchantia posted:Household employer question: As long as when you got the EIN you marked that you were a Household Employer they won't be expecting 941/940 from you - they'll be waiting on your Sch H That language about filing timely means if you fail to file your individual return then, on top of whatever ish they charge u for income tax you owe, they'll tag late employer stuff on there too - basically doubling up on "plz file your taxes timely tia" e: idk about WI but in my state they still require that household employers file quarterly state withholding/unemployment ish (which sucks) so you may still need to do quarterly stuff for WI, look into that if you're not sure Small White Dragon posted:My employer over-contributed to my HSA by several cents. They've directed me to talk to the HSA custodian who seemed confused. The IRS doesn't deal in fractions of a dollar, you're good e:fb
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Jan 26, 2021 17:59
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I paid my mom cash to babysit last year so I could claim the Dependent Care FSA money in my account. Do I have to provide her with any forms after I declare this for my reimbursement, or can she report the income on her tax forms herself? If so, where would she enter it?
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Jan 27, 2021 15:10
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I get about $10,000 per year in disability benefits. this year I also made $1200 on PredictIt. it says that this is self-employment income and might need to be reported if it's over $400. do I need to file a return?
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Jan 27, 2021 16:35
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I have a poo poo memory and I take this poo poo for granted, is there any chance the IRS will allow e-filing of 18 an 19 returns before 2/12 when 20 is supposed to be open? Because I am getting pissed off that I have some outstanding returns done but not able to be filed and even with a delay to 2/12 it seems pointless to mail them. I can't remember from previous tax years if all individual returns opened back up at once or not.
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Jan 27, 2021 17:17
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Epi Lepi posted:I have a poo poo memory and I take this poo poo for granted, is there any chance the IRS will allow e-filing of 18 an 19 returns before 2/12 when 20 is supposed to be open? Because I am getting pissed off that I have some outstanding returns done but not able to be filed and even with a delay to 2/12 it seems pointless to mail them. I can't remember from previous tax years if all individual returns opened back up at once or not.
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Jan 27, 2021 18:18
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i recently opened an hsa in california, a state which doesn't align with the federal tax advantage rules. i plan to hold a three fund portfolio for a couple of decades, with no portfolio rebalancing unless absolutely necessary. i'm preparing to keep my own records on purchases, dividend payments and the like, since i'm not expecting the plan to send me a 1099. i want to be sure that i'm recording all of the pertinent information, currently i'm keeping track of: -date of purchase -fund -units purchased -total purchase price is there any other information i should be noting, and is an excel sheet tracking this kind of information sufficient proof if i sell, or do i need to be keep some other proof of the price basis like dated screenshots of the transactions? my understanding is that any dividends which are distributed count as ordinary income in california, so i just need to keep a running total of dividends for the year and report that, does this sound correct? i've figured out how to deal with reporting the contributions and the discrepancy they'll cause between my state and federal agi, so are there any other factors i should be taking into consideration?
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Jan 27, 2021 19:11
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FateFree posted:I paid my mom cash to babysit last year so I could claim the Dependent Care FSA money in my account. Do I have to provide her with any forms after I declare this for my reimbursement, or can she report the income on her tax forms herself? If so, where would she enter it? She should report it probably as other/hobby income unless she’s running an actual daycare. Can’t claim business expenses against it that way but you could have issues doing it as a business Schedule C (even assuming you are paying her fair market rate, taking care of her own grandkid only might not fly as a business). You may need to provide her a 1099-MISC though. Its Chocolate posted:I get about $10,000 per year in disability benefits. this year I also made $1200 on PredictIt. it says that this is self-employment income and might need to be reported if it's over $400. do I need to file a return? ... OK, this one confuses me. I was under the impression that PredictIt was basically gambling on various occurrences happening; I’m not sure how it gets to be business income from that. Did you spend a lot of time and investment on earning the money from them, or was it just a few occasions that paid out well? Can’t help but wonder if this is PredictIt being cute to try to get around gambling or possibly investment laws/rules (“they aren’t gamblers, they’re independent contractors we’re facilitating!”) or if it’s the lazy “just kick out a 1099 and it’s their problem”. I think whether you file or not depends if they send a 1099-MISC or 1099-NEC, if it’s the latter you may be forced to file just to indicate to the IRS what kind of income it actually is. Epi Lepi posted:I have a poo poo memory and I take this poo poo for granted, is there any chance the IRS will allow e-filing of 18 an 19 returns before 2/12 when 20 is supposed to be open? Because I am getting pissed off that I have some outstanding returns done but not able to be filed and even with a delay to 2/12 it seems pointless to mail them. I can't remember from previous tax years if all individual returns opened back up at once or not. Not opening any earlier for prior years to my knowledge unfortunately, think it’s all same system for individual returns.
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Jan 27, 2021 22:31
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MadDogMike posted:... OK, this one confuses me. I was under the impression that PredictIt was basically gambling on various occurrences happening; I’m not sure how it gets to be business income from that. Did you spend a lot of time and investment on earning the money from them, or was it just a few occasions that paid out well? Can’t help but wonder if this is PredictIt being cute to try to get around gambling or possibly investment laws/rules (“they aren’t gamblers, they’re independent contractors we’re facilitating!”) or if it’s the lazy “just kick out a 1099 and it’s their problem”. I think whether you file or not depends if they send a 1099-MISC or 1099-NEC, if it’s the latter you may be forced to file just to indicate to the IRS what kind of income it actually is. they sent a 1099-MISC and implied I would need to file 
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Jan 27, 2021 23:51
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Hmm, question of the day; which is sillier, a tax agency sending several letters to different people all asking for the same form that was provided already (is the mail gremlin screwing up basic letter sorting?), or the one that straight up miscalculated their own tax due on a notice despite having all the right other entries? God I SO love tax notices...  Its Chocolate posted:they sent a 1099-MISC and implied I would need to file Yeah, if you have more than $400 in business income you need to file because you have the mentioned SE tax (the business equivalent to Social Security/Medicare tax) due on the tax return. I just find myself horribly skeptical no matter how they're reporting it that this should be considered business income; minus serious commitment of time and effort (i.e. the difference between a day trader who buys/sells stock every day and somebody who dabbles in buying a couple stocks on the weekend occasionally) I don't see how this works out as a real business. Honestly I think the real issue is they came up with a brand new idea that doesn't really fit cleanly into the established categories, although I'll grant they at least apparently got government sanction for not counting as an investment or gambling so long as there's only X number of people per question and they don't allow bids over $850, looks like. So they basically defaulted to the "the people we pay out to are contractors, send 'em a 1099" option that simplifies things for them (a New Zealand company that probably doesn't want to screw with US tax law much if possible), even though I'm dubious it should count as such. As for you at least, it may be safer to file a return but just list this as hobby/other income on Schedule 1 unless you're really making a career out of PredictIt stuff. I freely admit this is my opinion more than written in stone fact; I can't find any decisions by the IRS whether this has to be treated strictly as business income, probably again because it's too new to have any such opinions. If you do decide to report it as business income to be cautious, be sure to subtract any losses and the withdrawal fee to get the actual net profit on Schedule C per their write-up here, as well as any other expenses that may apply like bank fees or such.
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Jan 28, 2021 01:09
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What’s the best place to turn to for getting our tax return done? Our tax situation has become more complicated in 2020, what with our first child, my wife getting parental leave, 4 W2s in total, Roth backdoor, and having to sort NJ and NY tax returns. I’m sure it’s doable, but I can’t be arsed. I seem to recall some goons used to offer their services? Or is there some service that’s worth recommending?
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Jan 28, 2021 05:17
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Any reputable tax preparer should be able to handle your return. Ask a friend or colleague who they use.
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Jan 28, 2021 07:41
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Back in August 2020 I mailed in amendments for 2017 and 2018. I've been checking the IRS amendment status webpage periodically and every time I get an error that the information provided doesn't match their records, despite everything being completed correctly. I've tried calling the IRS help line but going through the "Check on the status of my amendment" voice menu yields the same result as the website, and I can't seem to find an option to talk to an actual person. Any tips on how to get someone to answer me?
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Jan 28, 2021 16:55
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If my wife is on my insurance plan, but she pays me half of the premium every pay period, can she claim that she is paying out of pocket for her half of the premium? Aka can we claim that half of our insurance is paid out of pocket if we file jointly? What if we filed separately? I will admit that this sounds a little shady which is why I am asking first 
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Jan 28, 2021 17:19
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Big Dick Cheney posted:If my wife is on my insurance plan, but she pays me half of the premium every pay period, can she claim that she is paying out of pocket for her half of the premium? Aka can we claim that half of our insurance is paid out of pocket if we file jointly? What if we filed separately? I will admit that this sounds a little shady which is why I am asking first No.
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Jan 28, 2021 17:55
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I've been getting conflicting information when Googling this, so hopefully someone can help me out. I help my parent file taxes every year and in 2020 their only income was social security benefits. Some places say if that is a senior's only source of income - they don't need to file. However, my parent still pays a mortgage and property taxes. Will they still need to file/advantageous to file for homeowner tax credits?
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Jan 29, 2021 00:20
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