|
H110Hawk posted:Unless they were ISO's the statement is the same. Did you dispose of them and receive cash or ? I think they were ISOs, but I'll need to double check. Regardless, I paid to exercise them within 90 days of leaving the company and received shares in the private company in November, 2020. When the acquisition by the public company was completed, I received a check for the acquisition value of the shares I got from exercising back in November. So I held the shares for ~6 months. So I'm guessing this means the cash received is taxed as short-term / normal income.
|
#
?
Jun 3, 2021 23:33
|
|
|
|
| # ? May 18, 2024 10:22 |
|
|
Fluue posted:I think they were ISOs, but I'll need to double check. Regardless, I paid to exercise them within 90 days of leaving the company and received shares in the private company in November, 2020. Yeah, because there wasn't a year in there it's 99% all short-term cap gains rates aka ordinary income rates.  On your new windfall.
|
|
#
?
Jun 4, 2021 00:21
|
|
|
sullat posted: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. Bwahahahahahaha...  - not my experience, I fear. Though perhaps my dad brought home some very strange and specific mummy's curse from that time he visited Egypt and THAT'S why I have a crap shot of getting help when I call the IRS rather than dying on hold (though I will grant the soundtrack to my personal hell is a nice choice designed to soothe incipient psychotic breaks, though when I'm calling at 7am to beat the rush it practically puts me to sleep).
|
|
#
?
Jun 4, 2021 03:00
|
|
|
MadDogMike posted:Bwahahahahahaha... Much better hold music than NYS.
|
|
#
?
Jun 4, 2021 04:18
|
|
|
Ur Getting Fatter posted:Hopefully that bill giving you guys more money will get passed through reconciliation and things will hopefully start getting less poo poo. Not to get political, but I think it might be worth complaining to your congresspeople, regardless of political party. I don't think people not receiving their refunds in a timely manner is exactly popular in any point along the political spectrum.
|
|
#
?
Jun 4, 2021 04:38
|
|
|
MadDogMike posted: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?). Ur Getting Fatter posted:Hopefully that bill giving you guys more money will get passed through reconciliation and things will hopefully start getting less poo poo. And demographically we're about to really take it in the rear end because something like 40% of our workforce is hitting retirement age in the next few years. You can imagine how losing about half your staff at any given job, and the most experienced half at that, would have an impact. "Fortunately" the economy's bad enough some of the old timers may put off retirement because they're not ready to lose their home or start eating dog food quite yet. And between budget cuts and reduction in force orders we don't have the money or hiring authority to even replace all the people quitting/retiring much less increase our staffing numbers. Hopefully some of that will start to be addressed by the current administration soon, but the IRS was really on a downhill slide even before COVID due to factors like those above. Of course, rich donors to elected officials don't have to worry about getting their refund on time and are better off with the revenue and exam functions being too turbo-hosed to properly audit high-income people and businesses, so there's not a lot of political incentive to fix the problem. It really sucks for the taxpayers and I find myself thinking a lot along the lines of JFK's quote, "Those who make peaceful revolution impossible will make violent revolution inevitable." Or taking morbid solace in the climate change thread that these problems may not amount to much in the face of civilizational collapse within the next 20-30 years. Jesus, that got morbid. On a brighter note... MadDogMike posted:(though I will grant the soundtrack to my personal hell is a nice choice designed to soothe incipient psychotic breaks, though when I'm calling at 7am to beat the rush it practically puts me to sleep).
|
|
#
?
Jun 4, 2021 05:15
|
|
|
Peyote Panda posted:I was on the IT help desk line waiting for help for 3-4 hours a couple of years back and still remember going through my own Kubler-Ross trip with the music. At first it was nice, then it got annoying, then I tuned it out entirely, and then I started rocking out to it without even being consciously aware at first that I'd gone full-on headbanger. LOL, yeah I can tell when I’m going loopy when I start humming or dancing along to the music at my desk.
|
|
#
?
Jun 4, 2021 18:27
|
|
|
Peyote Panda posted:Last year we didn't even get as many applicants as we had open positions in most places. How do those two things work together? (I realize the answer is "It's the part of the government rich people hate.") Is this like Office A has 10 open heads for position X and Office B has a RIF order for 10 heads in position Y kind of thing? Or is it much stupider than that? (Narrators voice: We all know it's much stupider than that.)
|
|
#
?
Jun 4, 2021 19:24
|
|
|
Nevermind. Stimulus check
poe meater fucked around with this message at 20:03 on Jun 4, 2021 |
|
#
?
Jun 4, 2021 19:46
|
|
|
H110Hawk posted:How do those two things work together? (I realize the answer is "It's the part of the government rich people hate.") Is this like Office A has 10 open heads for position X and Office B has a RIF order for 10 heads in position Y kind of thing? Or is it much stupider than that? A few years back the IRS commissioner got called in front of Congress to explain himself when he had the temerity to open 700 Revenue Officer positions to replace the 1200 ROs that had quit or retired in the previous year. They even demanded he account for where the budget money came from for that. He had to draw out how when you no longer have to pay 1200 people that leaves you money to pay for 700 other people. 
|
|
#
?
Jun 4, 2021 20:46
|
|
|
"Now that you mention it, with the savings over having senior people we're upping it to 1250. Thanks!"
|
|
#
?
Jun 4, 2021 21:28
|
|
|
Does anybody know what steps the IRS is taking to verify Recovery Rebate Credits claimed on 2020 returns? I got the first $1200 stimulus via direct deposit, no problem. But I moved last fall, before the $600 stimulus went out. The IRS site says they sent it by mail, but I never received it. So when I filed my 2020 return in May I claimed the $600 rebate. I don't particularly need the refund money right away, and I understand it will take a long time to process. The biggest reason I'm asking now is that the same thing happened with the $1400 stimulus this year - the IRS said they mailed it, I never received it. All three payments ($1200, $600, $1400) appear on my transcript. I don't know if there's any documentation I need to prepare or what. I don't know what to expect from the IRS in this scenario. Ideally I'd like to take some action to get the $1400 sooner than next year's return, but I'm sort of waiting to see how they treat the $600 before I try to act on the third stimulus.
|
|
#
?
Jun 5, 2021 18:28
|
|
|
This is question for next year taxes, not last year: I just moved to NY and was looking at the health insurance marketplace. My wife and I do not currently have health insurance and we qualify for the Advanced Premium Tax Credit. I don't really understand how it works though. If we didn't use the tax credit to help with insurance payments, does it then get subtracted from our tax bill on next years taxes? Or, is it only meant to be used for health insurance. My position is that because I'm self-employed I could use a break on taxes, and might forgo health insurance if the tax credit is not just for insurance. But if the tax credit can only be used to offset the cost of insurance I'd obviously do that. I hope that makes sense.
|
|
#
?
Jun 5, 2021 19:12
|
|
|
FBS posted:Does anybody know what steps the IRS is taking to verify Recovery Rebate Credits claimed on 2020 returns? For the second stimulus does it show the $600 payment going out and then being returned as a credit to your 2020 account? If it shows the credit being put back on the account, then the IRS knows you did not receive the second stimulus payment and will give you the Recovery Rebate Credit as they process the return. If it doesn't show the latter, then the IRS will assume you received the payment and deny the RRC. In that case, you want to contact the IRS EIP (Economic Impact Payment) hotline at 1-800-919-9835 and have them do a refund trace to verify you did not receive the payment. You don't need to wait for the 2020 return to be processed to do this, in fact it's better not to wait as that way they may be able to correct it in the initial processing whereas if you wait until afterward it may take longer to complete the same process. For the 3rd stimulus payment, if it's been issued and you haven't received it, there's no need to wait on doing the refund trace for that regardless of the situation with the 2nd stimulus payment. The EIP line would handle that as well, and can do it on the same call if you need to contact them regarding the second stimulus payment. Be sure to have a copy of your tax return for this year or last year with you along with the supporting documents such as W2s when you call. Security procedures for things like address updates (which they may need to input on your account during the call) may require your assistor to ask questions from those as part of overall identity verification so if you're not able to provide the correct answers they may not be able to access the account or take the necessary corrective actions. The EIP line should be open 7AM-7PM in your time zone as long as you're in the continental US. Early or late in the day is your best chance to get through - as you can imagine that line's really busy right now.
|
|
#
?
Jun 6, 2021 01:33
|
|
|
Question about long term capital gains taxes. Is the long term capital gain tax bracket determined by your yearly realized long term capital gains, or your income tax bracket? For example it says the $0-$40k long term capital gains tax rate is 0%. Does that mean if you made $20k in long term realized gains in a year, and had an income of $100k from your job, then you won't have to pay taxes on the long term gains?
|
|
#
?
Jun 9, 2021 16:05
|
|
|
human garbage bag posted:Question about long term capital gains taxes. It's AGI based. So if your AGI is $100k in your example (standard deduction! 401k!) you would be in the 15% bracket.
|
|
#
?
Jun 9, 2021 18:25
|
|
|
H110Hawk posted:It's AGI based. So if your AGI is $100k in your example (standard deduction! 401k!) you would be in the 15% bracket. Aw shucks  Another question. I just found out that the penalty for underpaying your estimated taxes is just .5% per month for the amount owed. If I think I can get a higher return investing that money, then is there any downside to just not paying estimated taxes, and pay it all next year when I file my tax return?
|
|
#
?
Jun 10, 2021 17:24
|
|
|
human garbage bag posted:Aw shucks Don't do it. It's a "play dumb games win dumb prizes" sort of thing. If you get yourself into the safe harbor then it's technically fine but I wouldn't invest it. First years free too, but if you want to play dumb games slap it into a FDIC insured account and make a couple bucks.
|
|
#
?
Jun 10, 2021 17:27
|
|
|
H110Hawk posted:Don't do it. It's a "play dumb games win dumb prizes" sort of thing. If you get yourself into the safe harbor then it's technically fine but I wouldn't invest it. First years free too, but if you want to play dumb games slap it into a FDIC insured account and make a couple bucks. What do you mean the first year is free?
|
|
#
?
Jun 10, 2021 20:29
|
|
|
I think it means you don’t get penalized for significantly underpaying the first time it happens. Presumably they are aware that most people have no idea what the rules are about that until the year they end up inadvertently owing a lot and have to do some research to figure out why.
|
|
#
?
Jun 10, 2021 20:41
|
|
|
Correct. If you aren't required to pay quarterly taxes already then you get a free pass. It's of course not entirely that simple but it's close enough. If you already are required to pay quarterly then the penalties accrue from the quarterly due date. There is a safe harbor, but don't gamble with the taxes in the equities market.
|
|
#
?
Jun 10, 2021 20:45
|
|
|
H110Hawk posted:Correct. If you aren't required to pay quarterly taxes already then you get a free pass. It's of course not entirely that simple but it's close enough. If you already are required to pay quarterly then the penalties accrue from the quarterly due date. There is a safe harbor, but don't gamble with the taxes in the equities market. Also if you continually keep owing the IRS can do things like demand your employer increase withholding from your paycheck. Don't get cute with withholding, it's not worth the headaches.
|
|
#
?
Jun 10, 2021 21:18
|
|
|
Don't get cute indeed. Maybe I'm risk averse when it comes to tax, but OP's question sounds like a step below putting money on a roulette wheel, when you owe it to the mob who is big and organized and does not forget debts
|
|
#
?
Jun 10, 2021 21:27
|
|
|
MadDogMike posted:Also if you continually keep owing the IRS can do things like demand your employer increase withholding from your paycheck. Don't get cute with withholding, it's not worth the headaches. I have never seen this in practice. Doesn't make sense from the IRS's perspective since they can squeeze more money out of you through that penalty. In my opinion, gently caress around all you want, just be ready to pay come tax time. The under withholding penalties are so minor who gives a poo poo. If you owe enough money were .5% is more than a couple bucks then it probably isn't that significant in comparison to your total bill. What's $200 when you owe $8K already?
|
|
#
?
Jun 10, 2021 22:24
|
|
|
Epi Lepi posted:I have never seen this in practice. Doesn't make sense from the IRS's perspective since they can squeeze more money out of you through that penalty. Really? You've never seen a withholding letter? It doesn't happen to everyone, but if you keep owing $8000 for a few years straight, chances are you'll see a lock-in letter.
|
|
#
?
Jun 11, 2021 01:36
|
|
|
sullat posted:Really? You've never seen a withholding letter? It doesn't happen to everyone, but if you keep owing $8000 for a few years straight, chances are you'll see a lock-in letter. What's a lock-in letter?
|
|
#
?
Jun 11, 2021 16:39
|
|
|
human garbage bag posted:What's a lock-in letter? It's something detailing your withholding rate to your employer. Think of it like a w-4 where you aren't allowed to edit it. https://www.irs.gov/individuals/understanding-your-2802c-letter Hope you like single-1 withholding.
|
|
#
?
Jun 11, 2021 16:45
|
|
|
Oh, I'm an independent contractor. Is the IRS nicer to contractors who underpay, or does it make no difference?
|
|
#
?
Jun 11, 2021 16:50
|
|
|
human garbage bag posted:Oh, I'm an independent contractor. Is the IRS nicer to contractors who underpay, or does it make no difference? The IRS isn't mean to you unless you are willfully obnoxious or criminally evading them. If you are 1099 you probably do have quarterly reporting requirements. The easiest way to do this is to just pay your taxes every time you get paid assuming it's less frequently than daily. It's part of being a 1099 worker. You don't have to be exact, but close enough gets you there
|
|
#
?
Jun 11, 2021 18:08
|
|
|
devilmonk posted:This is question for next year taxes, not last year: Throwing this back in the mix. Thanks for any insight.
|
|
#
?
Jun 11, 2021 20:07
|
|
|
devilmonk posted:Throwing this back in the mix. Thanks for any insight. The way it works is you sign up for insurance through NY State of Health. After putting all of your information in; family size, estimated income for the coming year, etc.; it will calculate the credit you should be entitled to on your health insurance. You pick a plan and can apply any amount of your credit to the premium per month. At the end of the year you will get a 1095-A showing the premium cost and the credit you took per month. You will calculate, based on your actual income for the year, what amount of credit you were actually entitled to on your tax return. If you made more money than you estimated and were entitled to less of a credit your tax bill goes up. If you made less (but not less enough that you should have been on Medicaid or Medicaid Plus or whatever it's called) you will get the credit that you didn't take subtracted from your tax bill. If you should have been on Medicaid you may have to pay back some amount of your credit but not the whole thing, last I checked it was capped at $600 but that may change based on family size or just change for 2021. Due to COVID the American Rescue Plan got rid of the necessity to pay back any unearned credit on your 2020 taxes. Will that extend through 2021? Maybe?
|
|
#
?
Jun 11, 2021 21:48
|
|
|
Epi Lepi posted:The way it works… Thanks for this. If I don’t do insurance at all (if I don’t use the tax credit for insurance) does the credit disappear? In other words is that credit mine to use either way (subtracted from my 2021 income tax bill) and if I don’t use it for insurance will it affect my tax bill? Or is it ONLY to be used for insurance and it won’t affect my taxes if I don’t use it?
|
|
#
?
Jun 11, 2021 22:43
|
|
|
If you don't have insurance you can't get the credit. You can pay for your insurance entirely on your own and use the credit at the end of the year on your taxes if you want to for some reason, but you must have an insurance plan through the marketplace in order to get the credit.
|
|
#
?
Jun 11, 2021 22:46
|
|
|
Epi Lepi posted:If you don't have insurance you can't get the credit. You can pay for your insurance entirely on your own and use the credit at the end of the year on your taxes if you want to for some reason, but you must have an insurance plan through the marketplace in order to get the credit. If you do it that way there is a very specific way to claim the credit and even if you do it right they will disallow it until you call in and convince someone to fix it.
|
|
#
?
Jun 12, 2021 02:34
|
|
|
Epi Lepi posted:If you don't have insurance you can't get the credit. You can pay for your insurance entirely on your own and use the credit at the end of the year on your taxes if you want to for some reason, but you must have an insurance plan through the marketplace in order to get the credit. Excellent thank you. Not sure what part of my brain didn’t understand, but you fixed it.
|
|
#
?
Jun 13, 2021 17:00
|
|
|
devilmonk posted:Excellent thank you. Not sure what part of my brain didn’t understand, but you fixed it. The smart part. These rules are the dumbest thing ever including how if you wind up too poor they charge you extra because you should have known.
|
|
#
?
Jun 13, 2021 19:24
|
|
|
Or if you're unemployed all year and need help with insurance but then get a well paying job in the last few months or even weeks of the year you may have to pay back all of your credit. Seen quite a few people hosed by that.
|
|
#
?
Jun 14, 2021 04:25
|
|
|
Epi Lepi posted:Or if you're unemployed all year and need help with insurance but then get a well paying job in the last few months or even weeks of the year you may have to pay back all of your credit. Seen quite a few people hosed by that. I ended up doing a lot of calls helping people out with marketplace insurance tax issues the last few years and it really made me feel the cruelty of the tax system in some respects. Yeah, you might get some help with purchasing insurance but you're going to get whole complicated system between multiple government organizations that you have to navigate and can easily gently caress yourself for not understanding all of the terms and conditions. And all this extra administrative bullshit is being dumped onto low-income people whose lack of resources and education make them the most vulnerable to being confused or outright exploited by these processes. I felt the same thing all over again with the stimulus payments. Even if you have a burning need to means-test it why not send out the payments to everyone and then make rich people with accountants figure out how to pay back their portion instead of making desperate people jump through a bunch of hoops to maybe get some assistance? Because gently caress you, that's why.
|
|
#
?
Jun 14, 2021 05:00
|
|
|
If you are retired, does that mean that all long term capital gains you get by selling stocks are taxed at 0% because you are in the lowest income bracket?
|
|
#
?
Jun 14, 2021 06:46
|
|
|
|
| # ? May 18, 2024 10:22 |
|
|
human garbage bag posted:Oh, I'm an independent contractor. Is the IRS nicer to contractors who underpay, or does it make no difference? I dunno about nicer, but they kind of lack any way to target you for under-withholding like they do with somebody who's a W-2 employee, though maybe I'm forgetting something. I have indeed had to explain lock-in letters to clients before, they don't want you constantly owing money every year (well, more accurately keep owing; they penalize for not withholding enough but if you pay the amount due in full every year by the deadline I haven't heard of them messing with people, I know some clients who just eat the extra charges rather than mess with estimated payments). H110Hawk posted:The smart part. These rules are the dumbest thing ever including how if you wind up too poor they charge you extra because you should have known. Uh, not in my personal experience? As I understand it, if you're in the Medicaid income range they won't offer Marketplace insurance on the healthcare.gov website, but they certainly don't penalize you for it if you have Marketplace insurance but fall below the poverty line on your return. I actually fell into that my first year or two because I over-estimated my income, and I didn't get penalized, I got basically the maximum possible credit I could have gotten applied (which meant the amount I hadn't taken against my premiums was added to my refund like normal). I usually tend to get extra APTC on my return just because I guess high on my yearly income on the Marketplace, it's been shifting too much over the years thanks to varying levels of work and a large portion of my taxable income being previous investments since even a year-round tax preparer is kind of ehh for pay really. But I was never punished for having less income than I calculated with my application. I do agree with Peyote Panda the whole thing is an over-complicated mess that punishes people (doesn't help when there's things like the SLCSP being listed as $0 instead of the correct amount on the 1095-A, so screw you if you don't know how to find the rather hidden tool on healthcare.gov to get the right numbers), I swear my personal experiences with it have probably saved a bunch of my clients troubles because I had to master the whole thing in self defense or else, but God help those without a trained preparer. human garbage bag posted:If you are retired, does that mean that all long term capital gains you get by selling stocks are taxed at 0% because you are in the lowest income bracket? Depends on if you have taxable income from traditional IRAs/401k or not, retirement alone doesn't always equal 0% capital tax rates. It also still adjusts your AGI so taxable social security might be a thing. But yeah, if the rest of your income is low enough you don't get taxed on long term capital gains, and retired people are more likely to hit that.
|
|
#
?
Jun 14, 2021 07:07
|
|