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Ungratek posted:Est. payments used to go on Schedule 3, and I'm guessing they haven't updated all their literature yet. Oh, mystery solved then. Thanks!
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Mar 9, 2021 19:23
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Hypothetically, if I buy one stock of GME tomorrow, and then sell it on Friday for $1 million dollars, and then take that million and put it all in AMC, and then next month the price of AMC drops a lot and I sell all that AMC for $1, will I have a big tax bill, or will the loss on AMC cancel out the gain in GME?
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Mar 9, 2021 22:24
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In your scenario are you leaving the money in the brokerage account, or parking it in a savings account between trades
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Mar 9, 2021 22:29
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I don’t see anything that could go wrong with that plan.
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Mar 9, 2021 22:29
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human garbage bag posted:Hypothetically, if I buy one stock of GME tomorrow, and then sell it on Friday for $1 million dollars, and then take that million and put it all in AMC, and then next month the price of AMC drops a lot and I sell all that AMC for $1, will I have a big tax bill, or will the loss on AMC cancel out the gain in GME? So is your schtick to just drop into various threads and ask vague questions that show a complete and total lack of having put forth any effort at all to use google to find an answer?
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Mar 9, 2021 22:31
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human garbage bag posted:Hypothetically, if I buy one stock of GME tomorrow, and then sell it on Friday for $1 million dollars, and then take that million and put it all in AMC, and then next month the price of AMC drops a lot and I sell all that AMC for $1, will I have a big tax bill, or will the loss on AMC cancel out the gain in GME? Capital gains and losses are generally netted out when you do your taxes in the US. There’s probably an edge case, this is not tax advice, etc.
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Mar 9, 2021 22:39
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human garbage bag posted:Hypothetically, if I buy one stock of GME tomorrow, and then sell it on Friday for $1 million dollars, and then take that million and put it all in AMC, and then next month the price of AMC drops a lot and I sell all that AMC for $1, will I have a big tax bill, or will the loss on AMC cancel out the gain in GME? If you do it on Dec 31 and Jan 1 then you get both a huge tax bill and a comical loss carryover.
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Mar 9, 2021 22:55
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Hadlock posted:In your scenario are you leaving the money in the brokerage account, or parking it in a savings account between trades I plan to just keep it in my brokerage account. I want to know if it's safe for me to play around with $1000 investing in meme stocks with the worst case scenario being that I just lose the $1000.
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Mar 10, 2021 00:21
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human garbage bag posted:I plan to just keep it in my brokerage account. I want to know if it's safe for me to play around with $1000 investing in meme stocks with the worst case scenario being that I just lose the $1000. Do not cross the calendar year boundary and it should all wash out. End up with $1001 you owe taxes on that dollar, end up with $999 you get to write off the dollar. There are limits to the writeoffs.
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Mar 10, 2021 00:38
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Wild "1099-B" appeared! "1099-B" uses "Wash Sale". It's super effective!
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Mar 10, 2021 00:45
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Residency Evil posted:Question: my parents did not get a stimulus check in 2020. I was under the impression that they'd be eligible to get an extra refund back on their taxes. My dad is saying that's true, however their income was significantly higher in 2020 versus 2019, right around the phaseout. Apparently rather than the extra stimulus refund being based on 2019 taxes, it's being based on his 2020 AGI, which results in a significantly lower amount. Is that the case?
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Mar 10, 2021 01:36
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Peyote Panda posted:Yes. Even though the stimulus payments would have been based on prior year info, the Recovery Rebate Credit is calculated using the 2020 information so in this case your parents may get less of an RRC that the stimulus payments would have been. Thanks. Presumably there's no way for them to get the check they should have gotten in 2020?
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Mar 10, 2021 01:40
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Residency Evil posted:Thanks. Presumably there's no way for them to get the check they should have gotten in 2020?
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Mar 10, 2021 02:04
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Harveygod posted:The child credit for 2021 was expanded to $3,000, but it's $3,600 for a child "under 6". Most other age-based credits rely on the age on Dec 31st so yeah your kid just cost you $600 plus whatever you spent on his birthday. My youngest turns 6 on Dec. 27th :aargh:
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Mar 10, 2021 04:32
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So by what date do we have to get our 2020 tax returns filed for the stimulus consideration? In 2019 I made too much, but then lost my job for 2020 and would qualify; as I understand it if my return isn't filed in time I'm SOL and there's no way to fix it after the fact?
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Mar 10, 2021 21:48
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Man I just had my 1 hour interview with a tax prep professional and it feels good to finally give this poo poo to someone who knows what they're doing. He clearly knew his stuff and asked all the right questions. Our poo poo got complicated this year and I'm tired of sweating whether or not I'm doing it right.
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Mar 10, 2021 23:59
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PageMaster posted:So by what date do we have to get our 2020 tax returns filed for the stimulus consideration? In 2019 I made too much, but then lost my job for 2020 and would qualify; as I understand it if my return isn't filed in time I'm SOL and there's no way to fix it after the fact? You might be conflating that with the fact that you can't file an original or amended 2019 return to get the stimulus payments, but that's just because the IRS is no longer issuing those first payments as stimulus checks any longer, they're now being handled as part of the Recovery Rebate Credit on the 2020 return instead. And those credit calculations will use your 2020 income so as you described it you're more likely to be eligible than you were previously when it was using the earlier year info. Does that make sense?
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Mar 11, 2021 00:12
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Peyote Panda posted:Just to make sure I'm following your question correctly, you didn't get either stimulus payment so you want to file your 2020 return to get the credit, right? No problem, just file the 2020 return (you can still file even if you don't have a filing requirement) and claim the Recovery Rebate Credit to get the payments. If you're expecting a refund your only real restriction is that you want to file within 3 years of the due date to get the credit. I think they’re referring to the upcoming $1400 payments.
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Mar 11, 2021 00:53
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Peyote Panda posted:Just to make sure I'm following your question correctly, you didn't get either stimulus payment so you want to file your 2020 return to get the credit, right? No problem, just file the 2020 return (you can still file even if you don't have a filing requirement) and claim the Recovery Rebate Credit to get the payments. If you're expecting a refund your only real restriction is that you want to file within 3 years of the due date to get the credit. I I am taking about the new 1400 dollar stimulus (and increased child tax credit) just passed today(?). I did not qualify under my 2019 AGI when I still had a job, but I would under my 2020 AGI when I did not have a job. Unfortunately, my returns are being done by a CPA firm because of some complexities to them, but they are taking way too long and I'm worried they won't have them done in time for this round of stimulus checks.
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Mar 11, 2021 01:12
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PageMaster posted:I I am taking about the new 1400 dollar stimulus (and increased child tax credit) just passed today(?). I did not qualify under my 2019 AGI when I still had a job, but I would under my 2020 AGI when I did not have a job. Unfortunately, my returns are being done by a CPA firm because of some complexities to them, but they are taking way too long and I'm worried they won't have them done in time for this round of stimulus checks.
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Mar 11, 2021 01:38
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Peyote Panda posted:Gotcha. Since the legislation just passed there's not any guidance on how the IRS is handling that yet or if there will be opportunities for revisions for people who don't have processed 2020 returns on file when the next stimulus is issued. There should be more details on IRS.GOV once it's gotten sorted. Bet 10 to 1 we'll have another "recovery rebate credit" entry on 2021 to handle missed third or previous stimulus payments, to be honest. alnilam posted:Man I just had my 1 hour interview with a tax prep professional and it feels good to finally give this poo poo to someone who knows what they're doing. He clearly knew his stuff and asked all the right questions. Our poo poo got complicated this year and I'm tired of sweating whether or not I'm doing it right. That is the kind of thing we're here for!
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Mar 11, 2021 03:39
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MadDogMike posted:Bet 10 to 1 we'll have another "recovery rebate credit" entry on 2021 to handle missed third or previous stimulus payments, to be honest. lol didn't mean to downtalk this thread, which has been incredibly helpful to me in years past. This year it was just too much though
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Mar 11, 2021 06:45
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So with that whole unemployment tax thing that just passed... My wife was on UI last year because she had the audacity to be in a real job that actually does meaningful work instead of slapping keyboards at home like me. When the exemption is granted, does that income get sliced off the top at our combined, higher marginal rate? I pray so because I owe like $5k due to not understanding how withholding works anymore.
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Mar 16, 2021 15:48
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stellers bae posted:So with that whole unemployment tax thing that just passed... https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemployment-compensation Run through those steps and it should give you a better idea where things are at. On a related note, the IRS is also asking people not to file an amended return for this subject at this time, so hopefully there will be a systemic fix for the already filed returns with unemployment income.
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Mar 16, 2021 20:45
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Very odd that both Married and Single taxpayers have the same income limit of $150,000. I was expecting it to be $75K Single, $150K MFJ.
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Mar 16, 2021 22:21
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Also odd that it completely cliffs at $150,000
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Mar 17, 2021 01:11
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New and exciting ideas from the ITIN department of the IRS! Apparently if you tell people to renew their ITINs before the end of 2020, when they can send the W-7 in without a return, and your department is bad at answering your mail that you don't get to it until months later, you should send back a rejection because they "didn't include a tax return", like they're somehow stupid for not being psychic and predicting you would be completely unable to work out when your mail was received! So now I'm re-filing tons of ITIN applications from scratch with returns, which they will probably take another five - six months to get to, assuming the idiots don't claim "not filed with a tax return" again when it WAS in the first place and apparently the IRS just tossed the return on the floor like animals I guess, their other common genius move lately. Even for the IRS's current state this is getting absurd. Did Texas's little complete power system destruction fry their records in Austin or something? I am too drat tired and busy to also be wrestling with this crap and upset clients... 
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Mar 17, 2021 04:59
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So is the IRS pretty promptly issuing refunds this year, or is it like last year where a lot of people had to wait several weeks for their refunds?
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Mar 17, 2021 05:16
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Small White Dragon posted:So is the IRS pretty promptly issuing refunds this year, or is it like last year where a lot of people had to wait several weeks for their refunds? I got mine about a week after I efiled from free file fillable forms.
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Mar 17, 2021 05:23
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I've got a tax question. If anyone can point me in the right direction, I'd appreciate it. Let's say, for the sake of round numbers, I have contributed $70k to a Roth 401(k) over the last 7 years. The account is now valued at $100k. My employer changes due to a corporate buy-out and I roll over the Roth 401(k) via trustee-to-trustee transfer to my own Roth IRA that I opened on the date of the transfer. How much can I withdraw penalty free next week to use as a down payment on a house? $70k, $100k, or $0?
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Mar 17, 2021 15:58
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Dik Hz posted:I've got a tax question. If anyone can point me in the right direction, I'd appreciate it. Someone else can make correct me if I'm wrong, but it should be $70k, the value of your contributions since your Roth IRA, being opened on the date of the transfer, does not meet the five year rule for qualified withdrawal of earnings. If you had an existing Roth IRA that had already been opened for over 5 years and you had roll it over to there, then the answer would be $100k.
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Mar 17, 2021 20:46
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Wanna thank the people recommending credit karma's tax file. Way easier than H&R blocks, was free, and when I had a question (on answering the tax questions, not how their site works) they answered their chat right away, and actually answered the question. Unlike H&R block who basically always goes "GIVE US MORE MONEY TO TALK TO A PROFESSIONAL"
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Mar 17, 2021 22:00
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Wow, no fuckin' way. My wife and I earn barely over the $150k limit for not having her UI taxed. Also I was """covered""" by a retirement plan for three months of the year last year so I can't reduce MAGI with an IRA contribution. drat.
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Mar 17, 2021 23:33
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Pilfered Pallbearers posted:Wanna thank the people recommending credit karma's tax file. The one time I used them they made two errors. The one I caught they refused to admit was wrong so I couldn’t fix it. The other one was caught by the state, but thankfully it was just failing to claim a credit, so there were no penalties.
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Mar 17, 2021 23:43
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Tax Day for individuals extended to May 17: Treasury, IRS extend filing and payment deadline
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Mar 18, 2021 01:12
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How am I supposed to approach reviewing draft returns that a CPA has prepared for me? I hired a CPA for the first time because my tax situation has gotten far too complicated for me. Specifically federal employee income in Puerto Rico and rental income elsewhere, so PR, US, and a state return. PR tax law seems quite different, and I don't understand a lot of the calculations going on in the draft returns, especially with regard to the interplay of PR/US taxes and the corresponding foreign income tax credits, etc. But how am I really reviewing anything if it's beyond my understanding? That's why I paid for a CPA in the first place. I've looked through it line by line, checked that there isn't missing income or anything bizarre on it's face. What is the CPA's obligation vs. my own? I did have questions about how the CPA is calculating depreciation on the rental property. It looked like a large deduction, and it seems like he took a number from the county assessor that includes both building and land. A few hours of googling has brought me up to speed enough to know that it's supposed to be just the building. I'm inquiring with him about whether it's correct, but the potential issue makes me nervous. If a CPA hypothetically screws something up on my return, like used the wrong cost basis for depreciation, does the IRS still drop the hammer on me just the same? Short of hiring a second CPA to double check the first or teaching myself the relevant tax laws, I don't know what I don't know.
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Mar 18, 2021 01:49
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My return was accepted on 2/21 but I haven't received my refund yet. The website says it’s processing. I made more money in 2020 than 2019 so I shouldn’t have been eligible for the full 1400 stimulus but I got it all today. Is it normal to wait almost five weeks for a refund, and will they deduct the extra stimulus from future returns? Thanks!
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Mar 18, 2021 02:15
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Thesaurus posted:How am I supposed to approach reviewing draft returns that a CPA has prepared for me? The rental depreciation sounds weird to me. He should have been getting the cost basis from you, not the assessor unless you have no idea what the cost basis because you inherited it or something. Land does not get depreciated, but you do need to show it on the return. The depreciation should be the value divided by 27.5 years if residential or 39 if commercial. I mean, if you made some major improvements this year he may be taking bonus depreciation but I would usually ask you if you want to elect it or not if you were my client. The IRS will drop the hammer on you, but if the CPA is committing fraud they may also go after them. You'll still be on the hook for tax and interest but maybe be able to argue away penalties. Did you talk to the CPA before you gave them your stuff? Did you vibe with them? You should be able to talk to them about your reservations without getting a major runaround. Just a minor runaround since it is deep in tax season and dude prolly has billions of things on his plate right now. Amanda Huggensuck posted:My return was accepted on 2/21 but I haven't received my refund yet. The website says it’s processing. I made more money in 2020 than 2019 so I shouldn’t have been eligible for the full 1400 stimulus but I got it all today. Is it normal to wait almost five weeks for a refund, and will they deduct the extra stimulus from future returns? Thanks! The average wait time for refunds is 2 to 3 weeks, but there are plenty of reasons you may have to wait longer and they're not all bad. Usually the reason is "who knows" and you just eventually get it. Go on the IRS website and use their "Where's My Refund?" tool to see if you can get an update. The extra stimulus you got should be yours to keep if they keep the no clawback rule. You got lucky, congrats.
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Mar 18, 2021 05:26
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Thesaurus posted:How am I supposed to approach reviewing draft returns that a CPA has prepared for me? Obviously most people just go, “looks good to me.” Or “I see I forgot to mention something to you.” Don’t really think it’s about checking their work.
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Mar 18, 2021 13:09
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Epi Lepi posted:The rental depreciation sounds weird to me. He should have been getting the cost basis from you, not the assessor unless you have no idea what the cost basis because you inherited it or something. Land does not get depreciated, but you do need to show it on the return. The depreciation should be the value divided by 27.5 years if residential or 39 if commercial. I mean, if you made some major improvements this year he may be taking bonus depreciation but I would usually ask you if you want to elect it or not if you were my client. Thanks. I'll guess I'll just bug the CPA more about the issue if he doesn't give me a proper explanation. The property was converted into a rental two years ago after I lived there as a primary residence for five years. Is the cost basis based on my original purchase or value at the time it became a rental? How would I go about figuring out the cost basis for the building? Is the tax assessment value not relevant? I talked to the CPA briefly by phone last year when I first hired him, and it's just email since then. The call was a pretty basic discussion of my situation. I wouldn't say we "vibed." We've never discussed details of the rental, other than me just sending him the info I have on my expenses.
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Mar 18, 2021 15:18
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