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runawayturtles posted:So I noticed a bit of a problem yesterday and didn't get a clear answer from the investment thread, so hoping you guys can maybe help: I would ignore it and let it die to statute of limitations. If they don't ask, you don't bring it up.
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Feb 5, 2021 19:43
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Congrats on potentially getting away with accidental tax evasion. 
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Feb 5, 2021 19:47
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PageMaster posted:Thanks, that's more clarity then I have gotten from anywhere else in months. So does the early penalty only apply to my earnings (and therefore not my contributions) so the 5329 should only capture taxable amount (not total withdrawal)? Second, does this also handle making the amount in box 2a tax free as qualified distribution as well? The early withdrawal penalty would only have applied to the gain since the contributions were all after-tax (you can pull Roth contributions out anytime you want, since it's after-tax when you put them in - the gains are the only bit that could be taxed on distribution if you were subject to the early withdrawal penalties) - so yes, the 5329 should only state your gains (taxable amount) and then cancel them out with code 03 To your second question, it ought to but without knowing what software you're using I don't really know how to tell you to make sure that's being reported correctly - like in terms of the filing, yes this should cause the entire distribution to be income tax free as if it weren't withdrawn early when the IRS processes the return... but the technical question of how to make sure that's reporting correctly on your return, and if it's not how to make that happen, with whatever tax software you're using is unfortunately on you to discover (wasn't sure which question you were asking)
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Feb 5, 2021 19:51
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KillHour posted:Congrats on potentially getting away with accidental tax evasion. It's not fraud if you do it by accident 
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Feb 5, 2021 19:52
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sullat posted:The IRS can absolutely distinguish between different parts of the refund. I don't know if this is how it's going to be done, but I imagine that the Recovery Rebate Credit will be flagged to ignore offsets. But don't quote me on that.
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Feb 5, 2021 23:06
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So TurboTax is asking me how much I've gotten in stimulus checks. I claim my 7 year old son on my taxes so I received 1200 for myself and 600 for him with the first payment. Am I correct in assuming I should enter $1800 for the first payment? after looking a bit more, i'm like 99% sure that's the case
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Feb 6, 2021 03:28
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Peyote Panda posted:I thought that was going to be the case as well but the Internal Revenue Manual got updated today with Recovery Rebate Credit info and it will be subject to normal offset procedures. Why? Because gently caress you, America, that's why. I'm shocked. This is my shocked face. Who could have predicted that the IRS would say gently caress you and offset any stimulus. zeldadude posted:So TurboTax is asking me how much I've gotten in stimulus checks. I claim my 7 year old son on my taxes so I received 1200 for myself and 600 for him with the first payment. Am I correct in assuming I should enter $1800 for the first payment? Yeah $ Epi Lepi fucked around with this message at 06:14 on Feb 6, 2021 |
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Feb 6, 2021 05:57
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zeldadude posted:So TurboTax is asking me how much I've gotten in stimulus checks. I claim my 7 year old son on my taxes so I received 1200 for myself and 600 for him with the first payment. Am I correct in assuming I should enter $1800 for the first payment? It was $1200 for the primary taxpayer (and another $1200 if they file jointly with a spouse) plus $500 per dependent under 17 for the first stimulus, and $600 per person on the second stimulus. So for the first for you should be $1700 I believe, second should have been $1200. Peyote Panda posted:I thought that was going to be the case as well but the Internal Revenue Manual got updated today with Recovery Rebate Credit info and it will be subject to normal offset procedures. Why? Because gently caress you, America, that's why. Oh drat the stupidity, wonder if this is leftover Trump morons or new improved administration morons. Actually, I wonder if the CARES act specifically has any language regarding this kind of thing because I swear from my (admittedly crappy) understanding they weren't supposed to use offset for the original stimulus payments, and I'd think you'd have legal issues suddenly doing that because of a screw up on your end forcing it to go on the return. Then again these were the folks who specifically were denying prisoners any stimulus at first despite zero language in the bill saying that was a thing (and several other examples showing Congress was quite capable of making the distinction themselves if they wanted to) until the court pointed out this little overreach, so who knows. black.lion posted:It's not fraud if you do it by accident You can still be in deep financially, but I imagine they've seen enough stupider mistakes to not be shocked really.
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Feb 6, 2021 06:04
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black.lion posted:The early withdrawal penalty would only have applied to the gain since the contributions were all after-tax (you can pull Roth contributions out anytime you want, since it's after-tax when you put them in - the gains are the only bit that could be taxed on distribution if you were subject to the early withdrawal penalties) - so yes, the 5329 should only state your gains (taxable amount) and then cancel them out with code 03 Thank you! To follow up and maybe close this out I called the IRS and finally got a hold of someone there in the ira dept. They also confirmed that these earnings should be tax free due to disability and account greater than 5 years old, but also said they could not find a way to do this through any formal/official methods or tax forms and that maybe I would just manually change a taxable amount number somewhere and put a note in explaining it.
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Feb 6, 2021 06:32
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MadDogMike posted:Actually, I wonder if the CARES act specifically has any language regarding this kind of thing because I swear from my (admittedly crappy) understanding they weren't supposed to use offset for the original stimulus payments, and I'd think you'd have legal issues suddenly doing that because of a screw up on your end forcing it to go on the return. And yeah, from my experience talking to taxpayers the ones getting stuck doing the Recovery Rebate Credit to claim their stimulus are often the ones who had issues providing the necessary info to the IRS because they don't normally file, had issues in processing due to things like their employers loving up their W2 filings so their return info didn't match our income records, etc. Basically, people who are already in desperate circumstances and got screwed for systemic reasons beyond their control. You know, the kind of people that need the money the most. And now if they have a debt with the IRS or any other government agency that's laid a claim on their refunds it's also gently caress your stimulus. Hopefully people scream to their congresspeople and it gets addressed. I'm planning on sending a message to my reps because this is some stupid bullshit. E: Of course, I'm sure that'll go about as well as everyone else screaming about the stimulus payments right now. Peyote Panda fucked around with this message at 15:32 on Feb 6, 2021 |
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Feb 6, 2021 07:42
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A couple months ago my gf got a letter from the IRS (CP80) for tax year 2017 saying that she needs to file and there's a $1321 credit on her account. She was in school that year but made some w-2 income (under the minimum amount required to file). When I use this little survey it says she wouldn't have need to file based on the w2 amount, but when I say someone claimed her as a dependent it changes and says she DOES need to file. So I'm assuming her parents claimed her that year? However, she would have been 26 on the last day of 2017, and I just read students can be dependents until they're 24 only? I'm going to text her dad later but I'm not sure if he'd even remember or have records. We moved in together that summer so there may have been some confusion about who would claim her, but I'm 99% sure I didn't. Anyway backstory aside, is there anywhere I should indicate the $1321 on the 2017 tax return? Is that amount what they expect her return *should be* from computing the w2 info they have on file? Or is that a separate thing? Or a standard credit for anyone that meets basic parameters x, y, and z? My taxes have always been pretty straightforward with a small amount owed or credited each year, I've never heard of this and have no idea what to do. I assume it's going to take 1,000 years for them to get around to processing it but it would be nice to have it out of my hands and get a surprise check on some distant day.
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Feb 6, 2021 16:13
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gamer roomie is 41 posted:A couple months ago my gf got a letter from the IRS (CP80) for tax year 2017 saying that she needs to file and there's a $1321 credit on her account. She was in school that year but made some w-2 income (under the minimum amount required to file). When I use this little survey it says she wouldn't have need to file based on the w2 amount, but when I say someone claimed her as a dependent it changes and says she DOES need to file. So I'm assuming her parents claimed her that year? However, she would have been 26 on the last day of 2017, and I just read students can be dependents until they're 24 only? I'm going to text her dad later but I'm not sure if he'd even remember or have records. We moved in together that summer so there may have been some confusion about who would claim her, but I'm 99% sure I didn't. The easiest way to find out would be for her to go to IRS.GOV, go to Get My Tax Record, and once she has an account set up there order an Account Transcript, which will show what the payment was for. Assuming it's one of the aforementioned options, it would be reported as part of the Estimate Payments line on the return. If she doesn't have her income records for that year, ordering a Wage and Income transcript will also provide those for filing a return. If she's not able to set up an account on IRS.GOV to order the transcripts she can call the number on the notice for more info, but be warned the hold times can be rough (she'll probably be on hold for a couple of hours, assuming the system doesn't get overloaded and boot the call entirely). She can file a return even if there's no requirement if it would generate a benefit such as a refund, which the credit may well end up being if she doesn't owe any taxes on that year. Depending on the circumstance, she generally might even be able to efile (you can usually do that going back up to three prior years, and we're in the 2020 filing season now so she'd still be within the timeframe for a 2017 return) though not all efile vendors offer the prior year option.
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Feb 6, 2021 16:36
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Free Tax USA does. I used that to get some money the gov owed my GF on a prior year return. They charged some nominal fee like $20, but it was easy.
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Feb 6, 2021 18:15
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MadDogMike posted:You can still be in deep financially, but I imagine they've seen enough stupider mistakes to not be shocked really. Yeah, that's what I'd be worried about, hearing in 20 years that I owe 6% going back to the beginning. But the statute of limitations would either bring it down to nothing or would just be 3 years of 6%? I googled this earlier which kinda makes me worry... But if the consensus here is that I'll be fine, I'll trust you guys, many of you certainly know your stuff.
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Feb 7, 2021 00:20
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Peyote Panda posted:Usually with the CP80 if there's a credit listed it's usually an amount that was paid toward the return, such as an estimated tax payment or a payment submitted with an extension to file, that's now sitting under that year as a credit because no return was processed for that year yet. The CP80s are automatically issued since you have to file a return within 3 years of the original due date or Uncle Sam will just take the money for himself. Your math is off with whether she can e-file. Right now only 18, 19 and 20 are able to be e-filed.
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Feb 7, 2021 00:23
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Epi Lepi posted:Your math is off with whether she can e-file. Right now only 18, 19 and 20 are able to be e-filed.
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Feb 7, 2021 00:42
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I did military VITA for one year before going back to school and our site leader could and did efile prior years. So if someone qualifies for vita their site might be doing it. Pretty unlikely, I'd imagine. I love VITA, it's a great program that not enough people know about.
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Feb 7, 2021 03:46
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BonerGhost posted:I did military VITA for one year before going back to school and our site leader could and did efile prior years. BonerGhost posted:I love VITA, it's a great program that not enough people know about.
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Feb 7, 2021 05:54
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I am trying to give the federal government the Federal Income Tax I withheld from my W-2 Household Employee's income. None of this was my idea, I wish she was 1099-MISC (probably illegal in CA now) or that we "opted not to withhold" which would have simplified everyones life. I've paid California, I've paid the Social Security and Medicare people, I can't seem to figure out how to pay the IRS. It's a few hundred dollars. I jumped through all of the hoops and have a household employer EIN, registered for EFTPS (glad to see this hasn't improved since the last time I used it in the late aughts), and went to pay there and it complained "I wasn't registered to pay on form whatever". Googling the internet seems to infer I should just be paying this on form 1040-ES. Any protips on which form I'm supposed to be paying against?  I think for 2021 I'm just going to make this my accountants problem for whatever outrageous fee he wants to charge me.
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Feb 7, 2021 19:49
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H110Hawk posted:Any protips on which form I'm supposed to be paying against? https://www.irs.gov/faqs/small-busi...loyment-taxes-1
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Feb 8, 2021 03:32
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My girlfriend moved states in October. Both have partial resident forms to calculate what part of your income they get to tax. The W-2 wage side of things is easy, they issued 2 with the same federal info and partial state income on both. For the unearned income (interest, divs, etc), do we have to look up the date each happened to allocate it? The 1099s don't have that info, but we could get it from statements. It wouldn't be overly complex to do, just wanted to be sure before I wasted an hour.
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Feb 8, 2021 03:37
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Got married last year and we make around $130k, is there a decent free tax prep software we're eligible for or is this the first hear I'll have to pay for one?
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Feb 8, 2021 14:58
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Peyote Panda posted:The easiest way to find out would be for her to go to IRS.GOV, go to Get My Tax Record, and once she has an account set up there order an Account Transcript, which will show what the payment was for. I'm so glad OP brought this up, because I came to ask a related question and wasn't sure how to explain it: I had to pull my 2019 transcript from that website over the weekend, and it says my ex-wife and I had a final balance of -460.26 dollars due to a refund that was apparently returned to the IRS as undeliverable towards the end of 2020. Now that we're divorced and filing as single, how do we claim this? I will be filing today if possible, and will just split the refund with her if I'm able to grab it on this year's taxes. I was planning to file with FreeTaxUSA, but I haven't seen any options for this in the guided filing walkthrough so far. Is this something they can handle? Unsinkabear fucked around with this message at 16:26 on Feb 8, 2021 |
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Feb 8, 2021 16:11
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Unsinkabear posted:I'm so glad OP brought this up, because I came to ask a related question and wasn't sure how to explain it: The first is remail the check after verifying your address, which you'd get in about 4-6 weeks, and then you could just give your ex-wife half the funds. You could also have it moved forward to this year and split up half under your social security number and half under hers and then each of you could claim it as part of the estimated tax and other payments line on your respective returns, just like you would with a credit elect. But you would still have to call to get that credit transferred manually first, which takes about 2-3 weeks to process. Either way, the credit will most likely just sit there until you contact the IRS. Sometime the check get reissued if there's an address update, but otherwise you'd end up getting a notice eventually that the IRS still has your refund and asking you to call to have it resent.
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Feb 8, 2021 17:18
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Peyote Panda posted:For a prior year refund that was undeliverable, you'll have to call in (1-800-829-1040). Most likely for what you want they could do one of two things. Thanks! I got the "Status Not Available" glitch on the last round of stimulus payments (I assume due to my status, address, and bank account changing), so I'd like to file ASAP and get my current info on file w/ the IRS updated before the next one goes out. If I'm understanding you correctly, it sounds like I can just file for this year normally, and then call and ask for that refund from last year to be re-mailed separately?
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Feb 8, 2021 17:29
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Unsinkabear posted:Thanks! I got the "Status Not Available" glitch on the last round of stimulus payments (I assume due to my status, address, and bank account changing), so I'd like to file ASAP and get my current info on file w/ the IRS updated before the next one goes out. If I'm understanding you correctly, it sounds like I can just file for this year normally, and then call and ask for that refund from last year to be re-mailed separately?
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Feb 8, 2021 17:53
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Fun Times! posted:Got married last year and we make around $130k, is there a decent free tax prep software we're eligible for or is this the first hear I'll have to pay for one? CreditKarma is free regardless of income, they just have certain tax situations they don't cover.
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Feb 8, 2021 18:05
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Freetaxusa.com works fine too, don’t think there are income limits. I personally like it because it is always just one click to see the filled out 1040 and other forms. They charge for state but I think everyone does and often states have some free filing option. (My only complaint is that the “path” to entering a back door Roth happens in a weird order and makes it look like you have to pay taxes on it for a while.)
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Feb 8, 2021 18:52
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smackfu posted:(My only complaint is that the “path” to entering a back door Roth happens in a weird order and makes it look like you have to pay taxes on it for a while.) Yeah, this worried me until I looked back at last year's inputs to figure out why my 6k wasn't being subtracted yet.
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Feb 8, 2021 19:35
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I have a couple specific questions. These are all for the 2021 tax year. Married filing jointly, we make about $130k a year. NYC. I'm likely about to purchase a house, and will be liquidating $120k+ of ESPP shares to cover the down payment. Capital gains on them is something north of $80k. They've been purchased little by little so the gains per lot are all over the place. My main questions are Is there a calculator someone can recommend that works well to try and work out the CG taxes more exactly? Is this amount the kind of amount I'd need to file and pay a quarterly adjustment?
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Feb 10, 2021 17:30
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smackfu posted:Freetaxusa.com works fine too, don’t think there are income limits. I personally like it because it is always just one click to see the filled out 1040 and other forms. They charge for state but I think everyone does and often states have some free filing option. I tried several this year, and not only was FreeTaxUSA on par with the big names in terms of user experience, it was the only truly free one for my situation, and it was also the only option that caught a small but very important detail that resulted from my divorce and was not obvious to me. Unfortunately, that detail cost me money rather than saving it, but I'd rather my taxes be accurate 
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Feb 10, 2021 17:58
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Pilfered Pallbearers posted:I have a couple specific questions. These are all for the 2021 tax year. You will need all of your Basis forms (Form 3922) or to tediously go through your purchase dates and figure out your FMV on each purchase date plus your actual purchase price. TurboTax handles it correctly, if tediously, once you have this information. It's a nightmare no matter how you cut it. Otherwise, you basically take your upside, figure out roughly if it's LT or ST CG. If this is the first year where you're going to owe this "unforseen" upswing in taxes then you're in the safe harbor and don't need to pay it in advance, but I would suggest you do so. At a minimum segregate it into a second savings account.
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Feb 10, 2021 18:25
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H110Hawk posted:You will need all of your Basis forms (Form 3922) or to tediously go through your purchase dates and figure out your FMV on each purchase date plus your actual purchase price. TurboTax handles it correctly, if tediously, once you have this information. It's a nightmare no matter how you cut it. It’s through E*TRADE so I’m lucky enough that the FMV/basis/actual purchase price is laid out nicely for each lot. My main concern is about getting hit with interest/a fine for not paying before taxes are due next year. I’d for sure prefer to pay them at the end of the year as I could use the cash now and I’d be able to build that cash up over the year to cover the taxes.
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Feb 10, 2021 19:06
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Pilfered Pallbearers posted:It’s through E*TRADE so I’m lucky enough that the FMV/basis/actual purchase price is laid out nicely for each lot. Nice. There are safe harbors, and one of them is basically as long as you pay the lower of 90% of _this_ years taxes (2021) or 110% of the prior years (2020) taxes. This nominally means that as long as your salary deferrals are correct and you don't normally owe a bunch of money, and aren't currently required to pay quarterly taxes, you don't have much if anything to worry about. I will caution you not to play with house money - if you wind up not having it by the due date you're going to owe even more money. You get your $40k out taxes paid, then you need to calculate some % on the $80k, probably around 20% if you're split between LT and ST. You're only looking at around $200k in ordinary income, which puts you either in 24% or 32% marginal - are you married? https://www.hrblock.com/tax-center/irs/tax-responsibilities/avoiding-underpayment-tax-penalty/ Take out a bigger mortgage with $100k rather than trying to shell game the money around with $120k.
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Feb 10, 2021 19:41
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I've always done my own taxes but this year I'm a bit over my head so I'm considering using a tax preparer. I've never done it before so I don't know if their quote is super high or not. Our situation: Married filing jointly, both with fairly simple W2 income Standard deduction, no complicated business expenses or anything Two states - we moved from PA to OR in July 2020 Rental income - We're renting out our old house in PA to an acquaintance, and also paying a commission to a local family friend to do property management for us (Also before anyone mentions it, yes I know I have to issue a 1099 to the property manager, it's done) The person I talked to quoted me $750. She said their min is $500 but because of the 2 states and rental income that was her quote. Anyway is $750 a reasonable quote for fed + 2 states + rental income?
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Feb 10, 2021 19:57
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alnilam posted:I've always done my own taxes but this year I'm a bit over my head so I'm considering using a tax preparer. I've never done it before so I don't know if their quote is super high or not. High side of normal I would say. I paid $700 for 1 fed, 1 state, plus 1 year review. It included w-2, 1099-b, 1099-misc, 1099-int, espp, NSQ stock options, and other misc forms that added up to the standard deduction. Make sure it's someone you can get a reference on from someone you trust, or they can intellengently answer questions about your multi-state and business income (your rental property...) I expect to pay about the same this year to do all of the above less the year review, but adding Household Employer stuff.
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Feb 10, 2021 20:16
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H110Hawk posted:Nice. There are safe harbors, and one of them is basically as long as you pay the lower of 90% of _this_ years taxes (2021) or 110% of the prior years (2020) taxes. This nominally means that as long as your salary deferrals are correct and you don't normally owe a bunch of money, and aren't currently required to pay quarterly taxes, you don't have much if anything to worry about. I will caution you not to play with house money - if you wind up not having it by the due date you're going to owe even more money. You get your $40k out taxes paid, then you need to calculate some % on the $80k, probably around 20% if you're split between LT and ST. You're only looking at around $200k in ordinary income, which puts you either in 24% or 32% marginal - are you married? Yeah married, file jointly. Combined Income was $127k for 2019, haven’t run the numbers for 2020 yet but it should be quite similar. I was trying to avoid PMI on the mortgage, but i think you’re right that taking some PMI to avoid a hole risk is a good idea. I’m not quite sure I understand the 90%\100% thing though, sorry.
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Feb 10, 2021 20:21
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alnilam posted:I've always done my own taxes but this year I'm a bit over my head so I'm considering using a tax preparer. I've never done it before so I don't know if their quote is super high or not. Sounds high to me or my office really needs to raise our rates. If she's working out of her home and not a real office run away at that price. In general it depends on how much of the work you're making me do. I don't know OR so I have no idea what bullshit that entails but I know PA and outside of the Local Income Tax returns they're not too bad. PA may not be in her wheelhouse and she may personally hate split year returns and set a high floor for those returns. If I gotta learn something just for you I'm making you pay for my time. If you're giving me a sheet of paper with your Rental income and expenses on it then I will charge less than if you hand me a plastic bag full of bills and receipts that I have to sort through. The other aspect is if you're calling an established CPA in February they may be already mostly booked up and you're paying a premium for their status as a CPA and the privilege of booking an appointment.
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Feb 10, 2021 21:20
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Pilfered Pallbearers posted:Yeah married, file jointly. Combined Income was $127k for 2019, haven’t run the numbers for 2020 yet but it should be quite similar. The line that says "tax". So let's pretend that marginal tax rates aren't a thing and you owe $22,000 I taxes on $100k of income in 2020 and in 2021 it's $44k on $200k. You need to make sure that somehow you have paid either 110% of 22k or 90% of $44k. I would pick 110% of $22k and look at my paystub where it says "federal tax withheld" and make sure it adds up to the $24k or whatever by the end of the year. Top off as necessary, perhaps by submitting a w-4 adding an extra hundred or two per pay period. You still owe that $44k total but you can just pay that with your return by April 15th. Pmi can be removed later as long as you don't get an fha loan.
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Feb 10, 2021 21:31
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alnilam posted:I've always done my own taxes but this year I'm a bit over my head so I'm considering using a tax preparer. I've never done it before so I don't know if their quote is super high or not. if i did this return it'd be $400-$550 depending on how well your rental stuff was organized/recorded
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Feb 10, 2021 23:53
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