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Baby Proof posted:The only reason I care about the % is that option 3 would be a big change in allocation of my retirement accounts between Roth & non-Roth. I still think I'm missing something about how 401k loans work- if I took a 50,000 loan out and paid it back in 2 years wouldn't that be a huge decrease in taxable income? No. 401k deposits themselves aren't necessarily pre-tax, and 401k loan repayments don't reduce your taxable income, even if you're paying back into a pre-tax account. You already skipped income tax on that money when you first deposited it (and/or gains from deposited pre-tax money).
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May 24, 2021 05:29
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now that the TCJA screwed with withholdings, is there an actual good calculator for w-4 withholding?
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May 24, 2021 05:50
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IOwnCalculus posted:No. 401k deposits themselves aren't necessarily pre-tax, and 401k loan repayments don't reduce your taxable income, even if you're paying back into a pre-tax account. You already skipped income tax on that money when you first deposited it (and/or gains from deposited pre-tax money). Thanks. That makes sense, I just didn't find that information anywhere, and hadn't looked through the actual irs pages. Definitely not worth messing with my 401k just to defer some capital gains.
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May 24, 2021 17:31
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Just got a call from a debt collection service that the city where I live (Philadelphia, if it helps) is looking to collect on city tax that wasn't withheld from my paycheck...in 2015. In the 5 or so years since I filed my 2015 taxes, they never attempted to collect on this unpaid balance despite knowing where I've lived (and moved to!) in that time period, and thanks to interest the amount I owe has roughly doubled. What are the chances that I can dispute payment on the interest since there's no evidence that the city made attempts to notify me about this debt?
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May 25, 2021 17:36
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Baby Proof posted:
Unless you're of retirement age or disabled, be aware that you'll pay 10% in penalties on your Roth IRA withdrawal in addition to the taxable gains. PageMaster fucked around with this message at 17:55 on May 25, 2021 |
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May 25, 2021 17:47
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Certainly not everyone will be able to withdraw a large amount from the Roth IRA penalty-free, but there's also the contribution exemption and the first-time home buyer exemption to consider. That hasn't changed recently, has it?
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May 25, 2021 17:56
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Baby Proof posted:Certainly not everyone will be able to withdraw a large amount from the Roth IRA penalty-free, but there's also the contribution exemption and the first-time home buyer exemption to consider. That hasn't changed recently, has it? You're right, there is but I think it was capped at 10k so poster could pull away least some money penalty free at long as account is at least 5 years old.
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May 25, 2021 18:05
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C-Euro posted:Just got a call from a debt collection service that the city where I live (Philadelphia, if it helps) is looking to collect on city tax that wasn't withheld from my paycheck...in 2015. In the 5 or so years since I filed my 2015 taxes, they never attempted to collect on this unpaid balance despite knowing where I've lived (and moved to!) in that time period, and thanks to interest the amount I owe has roughly doubled. What are the chances that I can dispute payment on the interest since there's no evidence that the city made attempts to notify me about this debt? City tax rates are public information so I don’t think they have a duty to inform you. I am not a tax attorney anywhere but especially not in philly.
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May 25, 2021 21:55
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C-Euro posted:Just got a call from a debt collection service that the city where I live (Philadelphia, if it helps) is looking to collect on city tax that wasn't withheld from my paycheck...in 2015. In the 5 or so years since I filed my 2015 taxes, they never attempted to collect on this unpaid balance despite knowing where I've lived (and moved to!) in that time period, and thanks to interest the amount I owe has roughly doubled. What are the chances that I can dispute payment on the interest since there's no evidence that the city made attempts to notify me about this debt? You can ask but I doubt they care. I would look up what the statutory fees and penalties are for this and make sure this company isn't taking you for a ride. I would focus on keeping it off your credit report. See if those fees are negotiable, but in the end you want "no derogatory remarks on my credit report."
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May 25, 2021 22:11
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Elephanthead posted:City tax rates are public information so I don’t think they have a duty to inform you. I am not a tax attorney anywhere but especially not in philly. My brother ran the county collections dept for a large county in PA. They would attempt to get people to pay for long thought forgotten debts. I believe they were mostly fines/parking tickets/etc but they did work with people to resolve them. Their thought was if we get anything back, that’s better than nothing. Couldn’t hurt to call and ask.
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May 25, 2021 22:36
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You might actually be really close to running the statute on those taxes, I wonder what happens if you let it ride for 6 years from your return filing date? 
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May 25, 2021 22:41
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I pulled up my 2015 W2 and the city tax withheld looks correct, but I have a new theory: I moved here in the middle of that year from Illinois, and I think the city might be looking to tax income that I earned before I was a resident here. Is that something any of you tax pros have heard of happening before? I can at least get that out-of-state employer to state when I stopped working there, and if I'm lucky I might be able to dig up the first lease I signed here when I moved to show when I started officially living here.
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May 25, 2021 23:04
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PageMaster posted:You're right, there is but I think it was capped at 10k so poster could pull away least some money penalty free at long as account is at least 5 years old. Pretty sure the 10K limit is just on the first time homebuyer only; if they contributed at least 40,000 and report that on line 22 of Form 8606 (+ the first time homebuyer on line 20 of up to 10,000) they can avoid any being taxable. The 401k loan thing does not affect your allowable 401k contribution to my knowledge unless there’s some bank-specific rule maybe; pretty sure main disadvantage is it reduces the 401k in terms of how much investment is earning money (i.e. the 50k won’t be earning anything until paid back), there’s no tax consequences if it’s paid back on time. Check with whoever manages it to be sure if you go that route anyway. C-Euro posted:I pulled up my 2015 W2 and the city tax withheld looks correct, but I have a new theory: I moved here in the middle of that year from Illinois, and I think the city might be looking to tax income that I earned before I was a resident here. Is that something any of you tax pros have heard of happening before? I can at least get that out-of-state employer to state when I stopped working there, and if I'm lucky I might be able to dig up the first lease I signed here when I moved to show when I started officially living here. You may need to file a 2015 wage tax return to show you weren’t in the city all year, you can check with them here to find out how. Pretty sure if it’s referred to collections you can’t just “wait it out”, the statute of limitations wouldn’t apply since they assessed the balance due before then.
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May 26, 2021 14:01
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is anyone who filed taxes at the deadline still waiting on their electronic refund? not an issue for me, I'm just curious as to how the IRS is doing this year (efficiency-wise)
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May 28, 2021 15:17
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pmchem posted:is anyone who filed taxes at the deadline still waiting on their electronic refund? I filed electronically well before the deadline, no refund yet. Same for many of my family and closest friends.
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May 28, 2021 16:55
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pmchem posted:is anyone who filed taxes at the deadline still waiting on their electronic refund? The latter is primarily due to last-minute tax law changes resulting in a lot of things the automated e-file return system can't handle as well as a lot of people who don't normally file submitting returns for stimulus payment purposes. A lot of that requires someone to manually review the return and either get it sorted out so it can finish processing or issue a letter if more information or action is needed on the taxpayer's part. If a letter does need to go out, that's also experiencing additional delays because our centers don't have the capacity to keep up with the massively increased volume of correspondence we're issuing. If it's been more than three weeks since you filed your return and the Where's My Refund system is still just showing that it's in processing, you can give the toll-free number a call at 1-800-829-1040 but there is a long wait time for an assistor usually and if it's showing that status in most cases there won't be any additional information available. If WMR shifts to "take action" status and you haven't received a letter with more detail, then you should be able to get more specifics over the phone. Sorry you're experiencing that delay and I hope this info helps.
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May 28, 2021 17:31
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Peyote Panda posted:Not well, unfortunately. The combination of being understaffed even before COVID on top of all of the attendant shutdowns and limited service center capacity for social distancing reasons has put everything way behind. The worst hit are print returns but even electronically filed returns are taking a big hit. Thanks for the inside scoop, I have a lot of clients who were filed in March and even February who just keep showing as "processing" on WMR and this is good info to get them off my back.
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May 28, 2021 17:39
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Epi Lepi posted:Thanks for the inside scoop, I have a lot of clients who were filed in March and even February who just keep showing as "processing" on WMR and this is good info to get them off my back. Sometimes I can make an educated guess for certain frequent issues -- the current year option to use the prior year's income for calculating EIC, any Recovery Rebate Credit claim where the eligibility isn't immediately obvious are two big ones, and if they had marketplace insurance and didn't include an 8962 are common ones -- but even then I don't know if those are the only issues and other than sending in the 8962 in the latter case there's nothing I or the taxpayer can do to move it along anyway. Even the Tax Advocate Service won't take those cases because there's nothing to work with until someone in the submission center has chance to review it. If you do want an additional resource to direct your clients to, under the Coronavirus Tax Relief category on IRS.GOV there's a link to an article on "Mission-Critical Functions". It won't have information on their specific case but will have general info on the delays, where the IRS is on getting caught up, etc. Sometimes it's nice to have something official you can point to so they can hopefully calm down a bit.
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May 28, 2021 18:09
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I filed near the deadline, I got a verify your identify letter this week, did that and the verification website said 9 weeks for that to get processed. My refund is all self employed COVID credits so I’m ahead anyway and should get the refund in time for Christmas!
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May 30, 2021 21:30
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As another point of reference, my accountant e-filed my return (pretty simple, 1 W2 and a small amount of income from stocks and dividends) at the beginning of May and got my refund last week.
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May 31, 2021 05:20
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pmchem posted:is anyone who filed taxes at the deadline still waiting on their electronic refund? Yes, and I'm glad to hear it's not just me, I was getting ready to call my accountant this week to make sure they had actually submitted everything
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May 31, 2021 23:04
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We filed a joint return through our accountant in March. Our first stimulus check was issued before our 2019 return was received, as a result we got less in that check than we would have (by about $1000) Our second stimulus check was issued before our 2020 return was received, as as a result of THAT we got substantially more in that check than we would have otherwise ($4200, would have gotten $0 based on 2020 numbers). (yes, income went up, then down, then up, for Reasons, also family headcount went up over this timeframe). I have yet to receive our tax refund, it has been in "accepted, you will have a date within 21 days" status for something like ten weeks now. Per our accountant, "Unfortunately there is a known issue with people that had a prorated stimulus payment, which you had. For some reason the IRS is not processing these as of now and is not giving any guidance on when they will release the refunds for these but I have heard it will take some time. Sorry but that is the best information I have as of now." I have reached out for clarity to see if this relates to the first check, or the second. My understanding is that overpayments on the stimulus checks were never going to be rescinded, so I am assuming that this relates to the fact that roughly $1000 of the expected refund, was the result of having gotten $1000 less in stimulus check #1, than #2? Can anyone shed any light on this for me? I don't understand this poo poo at all and generally don't want to, there is a reason I pay someone to deal with this poo poo, but said person seems pretty helpless in this current landscape.
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Jun 1, 2021 21:34
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Cabbages and Kings posted:We filed a joint return through our accountant in March. Tax preparers do not have a magic batphone to the IRS. There are massive delays with the IRS and there has been since last year. When you have a oval office actively sabotaging the mail system all while a pandemic causes major processing centers to close and only now reopen with partial staff then you end up with a lot of delayed returns. You have to wait. There is nothing you, or I, or your accountant can do about it. You will get it eventually. (USER WAS PUT ON PROBATION FOR THIS POST)
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Jun 1, 2021 22:00
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Epi Lepi posted:Tax preparers do not have a magic batphone to the IRS. There are massive delays with the IRS and there has been since last year. When you have a oval office actively sabotaging the mail system all while a pandemic causes major processing centers to close and only now reopen with partial staff then you end up with a lot of delayed returns. Hell, I don't even get much in the way of better service from the IRS when I call, I just know more about what to say when they do finally pick up an hour(+) later. Kinda wish I could find the tax accounting equivalent of the mug we got our family hair dresser one year - "I'm a beautician not a magician". There's just no good rhymes I can think of for tax prep (I do taxes not hexes? Filing not conjuring? Keeping you in the black not the black arts?).
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Jun 1, 2021 23:11
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Mailed paper return in March, but when I check the Where's My Refund site it says that it can't find any information and to verify what's been entered. So from this side it appears it doesn't exist, and it has never said received. The site says to call if it's been over 6 weeks without a status change, but I'm not sure if this is "normal" for right now. Since it's been over 10 weeks, should I call or keep waiting?
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Jun 2, 2021 00:53
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I mailed my 2019 tax return in late March (2020). I received my refund early March of 2021. I don't know if they still have a large backlog, but it will probably be a while.
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Jun 2, 2021 02:51
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Untagged posted:Mailed paper return in March, but when I check the Where's My Refund site it says that it can't find any information and to verify what's been entered. So from this side it appears it doesn't exist, and it has never said received. The site says to call if it's been over 6 weeks without a status change, but I'm not sure if this is "normal" for right now. Since it's been over 10 weeks, should I call or keep waiting? You picked a bad year to paper file. You can try calling but after your hour+ wait they will probably not be able to give you any information. Keep waiting or e-file the return.
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Jun 2, 2021 05:14
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Cabbages and Kings posted:Per our accountant, "Unfortunately there is a known issue with people that had a prorated stimulus payment, which you had. For some reason the IRS is not processing these as of now and is not giving any guidance on when they will release the refunds for these but I have heard it will take some time. Sorry but that is the best information I have as of now." Epi Lepi posted:You picked a bad year to paper file. You can try calling but after your hour+ wait they will probably not be able to give you any information. Keep waiting or e-file the return. Also, I don't suggest mailing in another print copy of the return (I'm noting the following just because a lot of people panic and do that when their print return doesn't show up in the system). If we get multiple returns in processing we have to stop everything to reconcile them and then once we start moving forward the returns get processed on the amended return timeframe of 16 weeks instead of the normal 6 week timeframe on top of all of the other delays. Submitting an efile copy of the return does also technically run that same risk, but honestly the delay on processing print returns is so bad right now that the efile return will probably finish processing before the print return even starts (if you have the option to submit an efile return). Peyote Panda fucked around with this message at 06:54 on Jun 2, 2021 |
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Jun 2, 2021 05:41
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Are there any resources for figuring out (estimating) capital gains tax liabilities triggered by a public company purchasing/merging with a private company? I received a small windfall from shares from exercising options when I left my last employer in September 2020. I reported the exercise on my 2020 tax return. Spring of this year (2021) they were acquired by a public company in a all-stock purchase. I didn't receive any shares of the public company after the deal closed because I wasn't an accredited investor. Instead, I got a lump cash sum for the shares I held in the private company. I haven't been able to determine if I'm going to be paying short term gains on this lump sum or if there is something I should be look into to minimize those. The best I've been able to find was the "Acquisition Scenarios" table on this article from Carta, but it points me to talk to a tax advisor.
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Jun 2, 2021 06:26
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I made a bunch of money in 2021 from stock dividends, and also long/short-term capital gains from selling some stocks. From my understanding - because I'll owe more than $1,000 at the end of the year - I seems I have to pre-pay taxes now Is it as easy as going here https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes, > pay online > make payment, apply to 1044ES ?
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Jun 2, 2021 22:26
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b2n posted:I made a bunch of money in 2021 from stock dividends, and also long/short-term capital gains from selling some stocks. Probably not needed. As long as your W-2 withholding equals or exceeds your 2020 tax liability, you are fine and there are no penalties/interest. Obviously youll still owe the balance in 4/15/22 though.
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Jun 3, 2021 00:56
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Fluue posted:Are there any resources for figuring out (estimating) capital gains tax liabilities triggered by a public company purchasing/merging with a private company? If you exercised call options in 9/2020, your holding period of the related shares will start on that date. That would indicate youre dealing with short term capital gains unless there are more facts to the scenario you described.
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Jun 3, 2021 01:00
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Admiral101 posted:If you exercised call options in 9/2020, your holding period of the related shares will start on that date. That would indicate youre dealing with short term capital gains unless there are more facts to the scenario you described. I should have clarified that I was talking about options for shares in the private company, not put/call options. I figure that I'm looking at short term gains unless there's some voodoo caused by the purchasing company giving me cash instead of exchanging shares because I'm not an accredited investor.
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Jun 3, 2021 03:18
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Peyote Panda posted:It's not exactly that the IRS isn't processing them but rather that refunds with Recovery Rebate Credits with that type of pro-rated issue need to be reviewed and verified manually and the submission centers are running way behind (see upthread for details). Unfortunately, said backlog is large enough that there's not even an estimate at this time when things will be caught up in general much less with individual returns. So at this point it is a waiting game. Thanks; I believe our return was manually reviewed last year and there was a long delay (filed around 4/12, refund received 6/18/20) -- and the government adjusted the amount up by $200 for reasons I did not try to decipher. I assume that at some point late in the year the IRS has to switch gears to getting ready for 2021 (as well as all the business as usual from quarterly filers, etc). Do you think it's reasonable to assume that this un-estimatable backlog will be cleared out by, like, early Fall or even that is too hard to predict? We have some necessary house maintenance to do to get out of a rot/deterioration situation, and if I am not reasonably expecting my return by that point, I probably need to change the way our money is being allocated in the meantime to account for that at the expense of some kind of long term savings. It was not intentional to be reliant on our return to do so, but there have been a number of expected and unexpected large expenses related to family and keeping said family alive and healthy this year. edit: beh I am just going to assume this money is in limbo forever and make the necessary adjustments, it's the only way to stay sane. I never really count on having my return before mid-summer but that's never even vaguely been challenged before; however, I am mostly just sympathetic to the IRS here and I feel bad for whoever is on the other end trying to unfuck this all because it seems like a thankless and difficult task involving many numbers of all sorts. I hate numbers, the "A" in my BA should stand for "Asked to take a minor in art stuff instead of doing more of the math". Cabbages and VHS fucked around with this message at 15:53 on Jun 3, 2021 |
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Jun 3, 2021 15:03
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Fluue posted:I should have clarified that I was talking about options for shares in the private company, not put/call options. Make drat loving sure they properly reported your options revenue on your W-2 or you’ll get a months-long headache like I am while I wait for ADP to get their poo poo together.
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Jun 3, 2021 15:19
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Cabbages and Kings posted:I assume that at some point late in the year the IRS has to switch gears to getting ready for 2021 (as well as all the business as usual from quarterly filers, etc). Do you think it's reasonable to assume that this un-estimatable backlog will be cleared out by, like, early Fall or even that is too hard to predict? Edit: I forgot, things are about to get even more hosed because we're shutting down the Fresno service center in the next month or so. That was part of an on-going consolidation as e-filing becomes more common that was started years ago so administratively there's not an option to stop or delay it. We already have cases being put on hold to transfer them to other service centers. Good times. Peyote Panda fucked around with this message at 17:06 on Jun 3, 2021 |
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Jun 3, 2021 16:50
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Hopefully that bill giving you guys more money will get passed through reconciliation and things will hopefully start getting less poo poo.
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Jun 3, 2021 17:43
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MadDogMike posted:Hell, I don't even get much in the way of better service from the IRS when I call, I just know more about what to say when they do finally pick up an hour(+) later. Kinda wish I could find the tax accounting equivalent of the mug we got our family hair dresser one year - "I'm a beautician not a magician". There's just no good rhymes I can think of for tax prep (I do taxes not hexes? Filing not conjuring? Keeping you in the black not the black arts?). Well you do have access to the practitioner priority line, which usually means lower hold times and a seasoned employee on the other end of the line. Which in most cases means they'll be able to tell you to hurry up and wait with less time on hold.
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Jun 3, 2021 19:22
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Fluue posted:I should have clarified that I was talking about options for shares in the private company, not put/call options. Unless they were ISO's the statement is the same. Did you dispose of them and receive cash or ?
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Jun 3, 2021 19:45
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b2n posted:I made a bunch of money in 2021 from stock dividends, and also long/short-term capital gains from selling some stocks. Your process is correct. However "first years free" as far as penalties go for under reporting as long as you hit the safe harbor. Make sure you've paid at least 110% of your previous years taxes or 90% of the current years taxes owed. You still owe it, but there is no penalty.
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Jun 3, 2021 19:51
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