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empty whippet box posted:IRS website says 3 weeks to get your return after filing - it's been two, so I'm not surprised it's not in yet, but anyone filed in the last month get theirs yet? Just wondering if it'll be slower than usual due to backlog or what.
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Mar 31, 2021 22:54
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Some potentially good news for you preparers who had filers with unemployment income. The IRS has announced they will be making the adjustments for the taxes on already-filed returns. https://www.irs.gov/newsroom/irs-to-recalculate-taxes-on-unemployment-benefits-refunds-to-start-in-may It's going to go in phases with the Single filers first and the Joint filers and more complex returns later in the year. This will only adjust for the taxes charged on the unemployment income, so if there are other changes such as a filer being eligible for more of an EIC as a result of the income adjustment you'd still need to file an amended return to claim that.
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Mar 31, 2021 23:05
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What's the correct way to fill out line 7 on form 1040 if you do not have any capital gains? I have none, so I put 0 into the entry column and check the box indicating that I do not need to file a schedule D or form 8000 whatever but my return is getting rejected with an error citing my AGI is wrong (I double checked that, it is entered correctly) or line 7 on form 1040 is incorrect because the box is checked. Am I supposed to not enter anything into the column instead of a 0? When doing this by hand I have always entered -0- for null entries, but that doesn't seem to be an option with free filing.
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Apr 2, 2021 14:07
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freezepops posted:What's the correct way to fill out line 7 on form 1040 if you do not have any capital gains? Don't check the box. That box means you have capital gains but you qualify for the exception that you don't have to complete schedule D (e.g., your only line 7 income is reported to you on a 1099-div).
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Apr 2, 2021 15:13
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Thanks for the help, resubmitted and hopefully it goes through.
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Apr 2, 2021 16:04
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Just for the record, you don't need to worry about filling in 0's on blank lines if you're doing a return by hand -- all blank lines are treated as 0 by default in transcription, so there's no need to put in 0's, strike them out, or whatever. (I feel like handwriting 0's may actually be a little worse for transcribers than just leaving the lines blank, in fact; it makes the paper busier and can potentially lead to mis-transcription if your handwriting isn't great and something looks like a real line entry.)
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Apr 3, 2021 02:12
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Peyote Panda posted:Some potentially good news for you preparers who had filers with unemployment income. The IRS has announced they will be making the adjustments for the taxes on already-filed returns. Does this explain the tomfoolery that I've been experiencing with filing through Freetaxusa and turbotax? I wouldn't expect them to make changes to their system without  Your return amount may be changing notices posted on their sites and emails.About a month ago, I started filing with FreeTaxUSA, My wife was certain we shouldn't have gotten a bigger return so 2 weeks later i put our info into turbotax to check and she was right, but when I logged back into FTUSA, we were getting back significantly more (I hadn't changed anything since I logged off the last time). Now today I went back to see if I could find more info to put into FTUSA to see if I could make them match, but now TT and FTUSA are very close in the return amount. Again, i haven't added any information to either since I logged off last time.
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Apr 5, 2021 21:29
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Quabzor posted:About a month ago, I started filing with FreeTaxUSA, My wife was certain we shouldn't have gotten a bigger return so 2 weeks later i put our info into turbotax to check and she was right, but when I logged back into FTUSA, we were getting back significantly more (I hadn't changed anything since I logged off the last time).
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Apr 6, 2021 00:53
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Peyote Panda posted:It depends on what happens after you file your return. If everything checks out you should get your refund within the three week timeframe. If there's anything on there that gets the return flagged for a manual review (such as having to double check a Recovery Rebate Credit claim in some cases or income not matching up with the W2s filed by employers are a couple of the common ones) it can take a lot longer than usual as the submission centers are really far behind in processing. guessing that means since I filed taxes on my business, that means my return will take 3-6 months :\ really sucks because we're at the stage of borrowing money based off our expected tax return because we're desperate as gently caress and hope it comes in soon, so I guess soon we'll be at the stage of telling a lot of people we don't know why it hasn't come in. I don't really know what to do at this point. I have absolutely no hope of it coming in at anytime this year anymore. oh well. I did my best. I wish I could just loving get hit by a bus and not worry about this anymore empty whippet box fucked around with this message at 09:49 on Apr 6, 2021 |
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Apr 6, 2021 07:08
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Does it mean anything if your transcript as of date changes to a future date Friday morning, and then reverts back to the original in the afternoon? Mine does this weekly. And is there a difference between “still processing” and “we have received your return and it is being processed? Thanks friend. :-)
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Apr 7, 2021 18:57
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empty whippet box posted:guessing that means since I filed taxes on my business, that means my return will take 3-6 months :\ really sucks because we're at the stage of borrowing money based off our expected tax return because we're desperate as gently caress and hope it comes in soon, so I guess soon we'll be at the stage of telling a lot of people we don't know why it hasn't come in. hanales posted:Does it mean anything if your transcript as of date changes to a future date Friday morning, and then reverts back to the original in the afternoon? Mine does this weekly. The best advice I can give is the same as above if it's gone past the normal processing timeframe (if you call prior to that you'll just be referred back to checking the Where's My Refund system for updates).
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Apr 8, 2021 16:49
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Peyote Panda posted:If it's been more than three weeks since you've filed and it's not showing a refund date, give the toll-free line a call (if possible, do so in the early morning or late evening for your best chance to get through, the line is open 7am to 7pm). They might be able to give you a better idea where things are at and how much longer you'll have to wait. Oh I was accepted 2/11 I’m just sitting waiting. Since I haven’t seen a letter notice on my transcript I’m just like eff it cuz those people are getting beat to poo poo by customers. I also had a bankruptcy discharge last year so there might be something there as well causing the delay. I’m just like whatever lol. Like the money would deffo help but I’m not gonna starve to death either.
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Apr 8, 2021 17:44
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hanales posted:Oh I was accepted 2/11 I’m just sitting waiting. Since I haven’t seen a letter notice on my transcript I’m just like eff it cuz those people are getting beat to poo poo by customers. I also had a bankruptcy discharge last year so there might be something there as well causing the delay. I’m just like whatever lol. Like the money would deffo help but I’m not gonna starve to death either. If you had a bankruptcy discharge last year call the help line and if there's a problem because of the bankruptcy they'll get you rolling in the right direction. Since 2/11 was over three weeks ago it's certainly worth checking out.
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Apr 8, 2021 19:30
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2 questions on filing capital gains losses: I used eztaxreturn to do my taxes, which was probably my first mistake but it’s what I’ve always used because life was simple until now. I had capital losses of let’s say $5000. However, I had 2 wash sales totaling $280, and the software didn’t seem to have a way of handling it. So instead of my total losses being $4720, it says the full $5000. Now, $3000 can be used per year to offset tax liability. For now it seems like that $280 difference isn’t a problem but come next year it will be? Or if I don’t even bother carrying over I guess they won’t care? Second, I used one of those simple calculators of expected tax return that used my filing status, income (box 1 w-2), and income tax withheld (box 2), and the difference between the calculator and my filing was only $100. If I made $50k, by my understanding I would have expected an increase in my tax return of nearly $1k because I was taxed on 50k, losses brought it down to 47k, so the last 3k shouldn’t have been taxed at ~25-33% or 750-1k. Or maybe the estimate just happened to be way off. I didn’t even know about the “tax benefits” of capital losses so I’m not complaining, but how exactly does that $3k from capital losses change my taxes, if at all? Also did returns increase this year for certain brackets or something? I’m getting way more back than even the capital losses could possibly account for with no real change in income.
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Apr 11, 2021 14:02
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I don't know how EZtaxreturn does it, but IIRC the way the instructions say that you should do it is: Any sales without a code (ie: the W for Wash Sales) you can just sum up all profit and losses MINUS the total for all sales with a code, and just put the total on Schedule D, line 1a. Sales with a code you have to individually detail them in form 8949, and then put the total from that form in Schedule D, line 1b.
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Apr 11, 2021 15:52
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Unfortunately all it had was date of purchase and sell, cost basis, and sell price. In retrospect, I probably could have put in the description for the two items that they were wash sales, but it still would not have solved the overall reporting problem. I at least bought the audit protection because I figured I’d screw something up.
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Apr 11, 2021 18:24
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latinotwink1997 posted:Unfortunately all it had was date of purchase and sell, cost basis, and sell price. In retrospect, I probably could have put in the description for the two items that they were wash sales, but it still would not have solved the overall reporting problem. I at least bought the audit protection because I figured I’d screw something up. Same brokerage same account? If so I would just do it as reported and let the cards fall later. If not then yeah do the accounting.
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Apr 11, 2021 20:10
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Peyote Panda posted:Cool! About the only other thing I'd recommend (and again, the CPA may be doing this already) is specifically citing that the non-taxable qualified parts of the Roth IRA distribution meets the Qualified Distribution rule in IRS Publication 590-B even though it is not coded that way on the 1099-R. I'm just throwing that in because sometimes citing the specific source of the IRS rules in question may help with processing. Basically anything you can do to make things explicit and minimize the amount of actual research needed at the processing center can help, especially at this time when they're harried more than usual. Quoting for background, but by some act of mercy my IRS return status turned to "Return Approved" today, i'm sure partly thanks to some of these recommendations. My question is: if I was going to be called out for an audit or requesting of additional info by the IRS, would it have happened before"approved," or am I still potentially waiting for a nasty letter for the next couple of years? PageMaster fucked around with this message at 05:41 on Apr 12, 2021 |
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Apr 12, 2021 05:38
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PageMaster posted:Quoting for background, but by some act of mercy my IRS return status turned to "Return Approved" today, i'm sure partly thanks to some of these recommendations. My question is: if I was going to be called out for an audit or requesting of additional info by the IRS, would it have happened before"approved," or am I still potentially waiting for a nasty letter For the next couple of years? It can take years.
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Apr 12, 2021 05:41
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PageMaster posted:My question is: if I was going to be called out for an audit or requesting of additional info by the IRS, would it have happened before"approved," or am I still potentially waiting for a nasty letter for the next couple of years? Most likely you would get the letter requesting additional information at one of two times. The first would be during the initial processing of the return. If it gets processed without any questions then you might still get an AUR letter from the Underreporting department next Fall. (For the background on that, the Underreporting department system automatically compares the income documents filed with the IRS with what is reported on the return and flags any discrepancies for an information request, usually through a CP2000 notice. However, since the IRS may not receive all income documents from financial institutions until up to 13 months after the end of the year in question, that process doesn't take place for a fairly long time. Usually CP2000s and the like go out in the fall of the year following the filing, so the AUR notices for 2020 returns wouldn't go out until Fall 2022.) If you don't get a letter at either of those points you're probably clear, but hold onto the documentation after that because you never know what kind of complications can come up with retirement accounts in subsequent years.
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Apr 12, 2021 21:31
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Thanks, not what I was hoping for but what I expected. Would any future requests be something I could reasonably expect to understand and handle by myself or would I need to make sure I have a CPA or some type of tax attorney handy? Edit: apparently tax court is a formal term and not just CPA slang like I thought it was. Either way, I just need to make sure my address with the IRS is updated after my move so this doesn't get lost. I just wish everything didn't take years to happen sometimes. PageMaster fucked around with this message at 01:00 on Apr 13, 2021 |
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Apr 13, 2021 00:45
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asked about this in the stock thread, but no replies there. so, trying the tax thread...: anyone here know the tax treatment for schedule K-1 volatility ETF gains (or losses) in a tax-advantaged IRA? free and clear or those gains taxable? in particular, SVXY: https://www.proshares.com/funds/svxy.html https://etfdb.com/etf/SVXY/#etf-ticker-profile proshares just says check with your tax advisor: https://www.proshares.com/faqs/volatility_commodity_currency_proshares_taxation_faqs.html (question #10)
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Apr 13, 2021 14:44
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PageMaster posted:Thanks, not what I was hoping for but what I expected. Would any future requests be something I could reasonably expect to understand and handle by myself or would I need to make sure I have a CPA or some type of tax attorney handy? quote:Either way, I just need to make sure my address with the IRS is updated after my move so this doesn't get lost. I just wish everything didn't take years to happen sometimes.
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Apr 13, 2021 18:29
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Not sure if this is the right thread, but anyone know anything about the change in dependent care FSA contribution limit due to the "American Rescue Plan" law? I just learned about this and I'm bugging my HR about it to see if they're taking part. Is there any way to work around it if my company decides not to take advantage? As in, is there a corresponding increase in the child dependent care tax credit?
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Apr 15, 2021 13:48
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pmchem posted:asked about this in the stock thread, but no replies there. so, trying the tax thread...: I wouldnt expect it to be considered UBTI, so you should be ok.
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Apr 17, 2021 12:45
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If I call the IRS to change my address, how quickly does that take effect?
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Apr 18, 2021 09:19
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sale on Banksy art posted:If I call the IRS to change my address, how quickly does that take effect? So be sure to file a change of address with the USPS as well and if you're expecting a check to be mailed out, check with your local post office to see what their policy is. Some will forward IRS checks to the new address, others won't, it's based on local USPS procedures.
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Apr 18, 2021 14:16
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whats with this child tax credit changes? It was $2000 per child but if you make under 150k a year it is now $3600? is this for 2020 or does it only start in 2021?
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Apr 20, 2021 01:15
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Yeah it goes up in 2021
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Apr 20, 2021 03:41
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My CPA has been telling me that he hasn't submitted my state and federal returns yet because of a technical "error" on his side. He says that he's trying to contact IRS to get it sorted out but hasn't gotten anywhere. We've been in this limbo for like a month now. The CPA said they if he can't get it figured out soon he'll probably have to file paper returns... How hosed am I on getting my returns if this happens? I'm moving states in a few months, so I expect that I'll somehow never get my (substantial) returns if we go down this path. Last year he "forgot" to include my direct deposit info for the fed return, so it was via check. Does this "error" thing even make sense? I don't know wtf is going on with this guy. Thesaurus fucked around with this message at 16:23 on Apr 20, 2021 |
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Apr 20, 2021 16:21
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Thesaurus posted:My CPA has been telling me that he hasn't submitted my state and federal returns yet because of a technical "error" on his side. He says that he's trying to contact IRS to get it sorted out but hasn't gotten anywhere. We've been in this limbo for like a month now. I can't help you with the other stuff, but make sure to alert the IRS of your change of address when you move. Doubly important if you're expecting something from the IRS. There is a post just up page on the best ways to do that.
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Apr 20, 2021 16:33
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Thesaurus posted:My CPA has been telling me that he hasn't submitted my state and federal returns yet because of a technical "error" on his side. He says that he's trying to contact IRS to get it sorted out but hasn't gotten anywhere. We've been in this limbo for like a month now. If you use ACH for your refunds I wouldn't sweat it unless you're in dire need of that cash. Make sure he fills out those fields in the paper forms. Otherwise it could be anything from his license has been suspended to whatever accounting software he's using is broken in some subtle way all the way down to his local computer being broken.
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Apr 20, 2021 16:57
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Excellent, thank you
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Apr 20, 2021 19:21
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Honestly unless he thinks it's gonna take another 3 months to fix his "technical" issue then just wait to e-file, paper filing seems like an absolute nightmare this year.
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Apr 20, 2021 21:17
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Yeah you should find out what's causing the delay on his end. Tell him that your internet friends want to know.
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Apr 20, 2021 21:57
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I have a question for you state & local guys. Taxpayer (me) drew salary from a New York employer for the entirety of 2020 but does not live there, and in fact hadn't set foot in the state all year. Taxpayer also had a good year in the stock market with significant capital gains. Total income was, let's say, $150k, with salary being $60k and capital gains $90k. NYS can tax the salary but capital gains get taxed by the state of domicile. There's two ways that NYS can go about levying their tax:
Thanks in advance if anyone knows this one. Yes, I'll start going to a CPA (next year).
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Apr 21, 2021 14:40
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Agronox posted:I have a question for you state & local guys. https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/pit/ny_source_income_nonresident.htm This seems to indicate your capital gains would not be considered NY sourced income, specifically the "your interest, dividends, or gains from the sale or exchange of intangible personal property, unless they are part of the income you received from carrying on a business, trade, profession, or occupation in New York State;" bullet point. I did poke around and it seems stocks and options fall into the intangible category of assets under NYS law. I don't know how you would document this in tax software though. Also, I'm assuming you are teleworking due to the pandemic where your normal office is in NY, which meets the convenience of the employer test for NY meaning your salary is NYS taxable.
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Apr 21, 2021 15:14
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Agronox posted:There's two ways that NYS can go about levying their tax: This is fairly standard in nonresident/part year resident taxation, not just NY. The mechanisms and specifics are usually different but that’s the underlying theory.
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Apr 21, 2021 15:26
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Missing Donut posted:This is fairly standard in nonresident/part year resident taxation, not just NY. The mechanisms and specifics are usually different but that’s the underlying theory. Thank you. Just needed a gut check on it. It doesn't seem particularly fair but I get what they're going for. I'll still grumble as I write the check though...
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Apr 21, 2021 15:41
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If they didn't do it that way, rich people would split their income across as many states as possible to minimize taxes.
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Apr 21, 2021 15:54
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