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Residency Evil posted:Just wanted to confirm something that I may have heard somewhere, definitely not from anyone here. The IRS is never happy or sad, only indifferent or interested in garnishing your assets.
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Nov 30, 2021 13:13
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Residency Evil posted:I usually do my own taxes. This year is just tough because we moved states, got raises, got bonuses, and moved to jobs that restarted withholding SS taxes again. Would you like a suggestion for a Denver cpa?
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Nov 30, 2021 15:16
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MadDogMike posted:Check Form 2210 if you want the (excruciating) details on the penalty for under-withholding. And in this case doing what you said is kind of pointless; the payment you made in February won't make a bit of difference to the penalty calculation, you're just pushing numbers around for no real benefit. Can't exactly fool the IRS when they received the money, it's going to THEM after all (they may occasionally misplace which account it goes to, but minus the ol' "check lost in mail" issue I've never seen them really have trouble finding a payment when you have the info on timing and amount). For preparer stuff you need to get a preparer account, then you can look up your client's transcripts (once the 2848 processes). Elephanthead posted:The IRS is never happy or sad, only indifferent or interested in garnishing your assets. True dat
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Nov 30, 2021 16:22
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sullat posted:n
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Nov 30, 2021 21:08
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I usually just fax the form during the phone call, personally.
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Nov 30, 2021 21:50
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Covok posted:I usually just fax the form during the phone call, personally. you monster
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Nov 30, 2021 22:03
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Covok posted:I usually just fax the form during the phone call, personally. Same, way easier. Can't do that with NYS though, have to fax it separately and then wait days for it to process.
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Nov 30, 2021 22:54
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sullat posted:you monster I fax it while the client is there so they can at least see me Do Something, but then inevitably have to fax it again during the call anyway, so I pretty much start talking with “what number do I fax this to?”.
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Dec 1, 2021 16:18
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MadDogMike posted:I fax it while the client is there so they can at least see me Do Something, but then inevitably have to fax it again during the call anyway, so I pretty much start talking with “what number do I fax this to?”. I'm just kidding. When I worked on the PPS line, those 5 minutes it took for the fax to be received were the perfect time to pull out my phone and do some poo poo-posting. That being said, we still have our checklist of questions to ask before we wanted the fax to be sent over.
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Dec 1, 2021 16:31
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MadDogMike posted:I fax it while the client is there so they can at least see me Do Something, but then inevitably have to fax it again during the call anyway, so I pretty much start talking with “what number do I fax this to?”. sullat posted:I'm just kidding. When I worked on the PPS line, those 5 minutes it took for the fax to be received were the perfect time to pull out my phone and do some poo poo-posting. That being said, we still have our checklist of questions to ask before we wanted the fax to be sent over.
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Dec 1, 2021 16:53
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sullat posted:you monster If the CAF unit was not 6 months behind, I wouldn't.
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Dec 1, 2021 21:00
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Peyote Panda posted:Sorry 'bout that, especially since we'll forward it to the CAF unit anyway if you fax it while you're on a call with us (unless you've already done so). With the CAF unit taking months at this time to get forms on taxpayers' files (absent the efile system I mentioned previously) it's even more useless street theater than usual but I totally get the need to as you say show them You're Doing Something. Yeah, I never blame the person on the phone not having it and fortunately for me I have a fax right there to work with. I probably should start using our new system where we can send online files to fax machines, but it feels like less of a pain to just drop the thing in the fax and dial the number. Though boy I'm tempted to hum the theme to Jeopardy waiting for that thing to finish sending, though at least this one is reliable about feeding through. Still remember the old fax machine throwing a fit once repeatedly refusing to scan without jamming and I jokingly played the Geto Boys song from that one scene in Office Space on my phone next to it. Hilariously enough it immediately worked perfectly the next time!  quote:That's still the case with the prelim questions. I work PPS now and some of my posts in this very thread have been pounded out while waiting for a fax, especially when our EEFax system decides to act up for no discernible reason and take 20+ minutes for a fax to come through. Fair's fair, I tend to do a lot of my shitposting waiting on hold myself, heh. I can always tell when I'm getting punchy from the delay; I start humming along to the hold music.
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Dec 2, 2021 08:28
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I found the below post in this thread from 2014 when searching for more information regarding FIRPTA. PatMarshall posted:Capital gains are sourced where the recipient lives (except real estate cause of FIRPTA). No withholding should be due. You would provide your payors with form W-8BEN and claim the benefits of the US-AUS tax treaty for reduced withholding on dividends and interest. Looking at the treaty, dividends should be subject to 15% withholding and interest to 10%. Still better than 30%. You should not be required to file a US tax return unless you invest in a passthrough entity (such as a partnership) earning business income in the US. If I understand this correctly. If a US citizens lives and works in Europe and they have an investment account in the US, any capital gains from the US investment account would be taxed according to the policies of said European country. Except for FIRPTA. So if the same US citizen sells a home in the US while living / working in Europe, they will have to adhere to the policies of the IRS?
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Dec 3, 2021 09:20
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Busy Bee posted:I found the below post in this thread from 2014 when searching for more information regarding FIRPTA. Capital gains on real property are primarily taxable in the country where the property exists.
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Dec 3, 2021 09:56
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Busy Bee posted:I found the below post in this thread from 2014 when searching for more information regarding FIRPTA. If you are a US citizen, then you are taxed on all of your income, no matter where it is derived, exactly the same as if you lived in the US (there is the foreign earned income exclusion, but that is not relevant for a sale of a house or investment income). Edit: Oh also a foreign tax credit may be available if you are taxed on your gains in your country of residence. PatMarshall fucked around with this message at 19:18 on Dec 5, 2021 |
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Dec 5, 2021 19:15
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I finally got around to amending my 2020 return to claim the Recovery Rebate Credit, but TurboTax has "closed" e-filing for the year. Fuckers. So how do I e-file this now, or do I have no choice but to snail mail it? I e-filed the original 2020 return. I also still owe ~1600 in deferred Social Security tax by the 31st. I could just pay this full amount out of pocket, but is it better to pay the difference between the 1200 the IRS owes me currently and the amount I currently owe? I'm just worried they're going to take the full 16 weeks to process my amended return and start to send me notices about interest, fees, etc. KOTEX GOD OF BLOOD fucked around with this message at 22:56 on Dec 5, 2021 |
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Dec 5, 2021 22:52
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KOTEX GOD OF BLOOD posted:I finally got around to amending my 2020 return to claim the Recovery Rebate Credit, but TurboTax has "closed" e-filing for the year. Fuckers. So how do I e-file this now, or do I have no choice but to snail mail it? I e-filed the original 2020 return. To be fair that's not TurboTax but the IRS; e-file is closed until January because they have to get the system ready to accept next year's returns. But yeah, you either snail mail it or wait until next January when the IRS (usually) opens the e-file system again. quote:I also still owe ~1600 in deferred Social Security tax by the 31st. I could just pay this full amount out of pocket, but is it better to pay the difference between the 1200 the IRS owes me currently and the amount I currently owe? I'm just worried they're going to take the full 16 weeks to process my amended return and start to send me notices about interest, fees, etc. Given that they start tacking on interest ASAP (and if they're late applying the $1200 refund to the amount they're calculating the interest on the whole thing) you're better off paying as soon as you can as a general rule.
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Dec 5, 2021 23:20
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MadDogMike posted:To be fair that's not TurboTax but the IRS (thanks for the advice, I'll snail mail & pay now.)
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Dec 5, 2021 23:49
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KOTEX GOD OF BLOOD posted:I'm just worried they're going to take the full 16 weeks to process my amended return and start to send me notices about interest, fees, etc.
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Dec 6, 2021 00:19
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KOTEX GOD OF BLOOD posted:Fuckers. Your amended return will probably process sooner if you wait and e-file in January when it opens again instead of mailing the return now. Still pay now.
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Dec 6, 2021 02:25
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urnisme posted:Your amended return will probably process sooner if you wait and e-file in January when it opens again instead of mailing the return now.
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Dec 6, 2021 03:19
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KOTEX GOD OF BLOOD posted:Hmm...will TurboTax 2020 let me do that in Jan, or will they just let it sit without being updated? There's more info from the IRS itself here and from Turbotax here, if any of that helps. Note that the IRS states the processing timeframe for amended returns is the same regardless of efiling or mailing in a print return, but in practice (again, due to the submission center print processing backlog) efiling is more likely to get it processed within the normal timeframe assuming everything on the return is correct. That'll be even more true if the current Covid waves cause another round of shutdowns.
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Dec 6, 2021 03:35
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I'm confused about why I started getting child tax credit direct deposits into my bank account. I got 250 this month and last month. My baby was born in late 2020 so was on my taxes, but I never got one of these before now. Anyway will it just be subtracted from the normal credit next year or something? And why would I just start getting it now? Thanks.
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Dec 11, 2021 03:35
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gamer roomie is 41 posted:I'm confused about why I started getting child tax credit direct deposits into my bank account. I got 250 this month and last month. My baby was born in late 2020 so was on my taxes, but I never got one of these before now. Anyway will it just be subtracted from the normal credit next year or something? And why would I just start getting it now? Thanks. As far as why you're just getting it now, there's a number of possible reasons. If your return wasn't fully processed until recently the payments wouldn't have begun until that had taken place, for example. But the system in general has had a lot of issues (incorrect payment amounts, payments being skipped or issued late for no discernible reason, etc.) simply because the IRS systems were never really designed to issue recurring periodic payments like this.
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Dec 11, 2021 17:27
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I have a quick question on a foreign mortgage repayment / exchange rate gain for a US citizen who has a foreign mortgage - https://www.ustaxfs.com/foreign-mortgage-repayment-exchange-rate-gain/ My understanding is that this is only applicable when someone remortgages or makes a capital repayment on their mortgage. Essentially when someone refinances their mortgage or decides to make a large repayment on their mortgage. However, when there is a gain due to the exchange rate conversion, is there a threshold that the IRS views as a taxable income?
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Dec 12, 2021 21:14
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urnisme posted:Still pay now. I tried to pay this online by signing up for an EFTPS account. It said they would snail mail me an authorization number within 7 days. That was a week and a half ago and I still haven't gotten one. So I figured I would mail a check. My CP56V says there's a "payment stub" I can mail along with the check but either I never had this in the first place or I can't find it (pretty sure it's the former.) I don't have an address to mail the check to either, there isn't one listed on the CP56V. So what should I do?
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Dec 12, 2021 22:32
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Keep waiting for the letter with the EFTPS login number.
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Dec 12, 2021 22:36
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withak posted:Keep waiting for the letter with the EFTPS login number. In the meantime... KOTEX GOD OF BLOOD posted:So I figured I would mail a check. My CP56V says there's a "payment stub" I can mail along with the check but either I never had this in the first place or I can't find it (pretty sure it's the former.) I don't have an address to mail the check to either, there isn't one listed on the CP56V. So what should I do? 1) Annotate the check as described on this page: https://www.irs.gov/payments/pay-by-check-or-money-order 2) Mail the payment to the appropriate address on this page: https://www.irs.gov/businesses/small-businesses-self-employed/where-to-send-your-individual-tax-account-balance-due-payments Usually the IRS advises sending mailed payments at least 10 days before the due date to make sure they have time to receive and process it by the due date. I'd suggest doing it by EFTPS if at all possible, but hopefully the latter info gives you something to work with if you're not able to get it set up by the due date.
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Dec 13, 2021 01:01
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Alright, thanks. I'll give EFTPS another few days then just send the check. Really appreciate the advice about this.
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Dec 13, 2021 01:12
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So BBB if passed prohibits backdoor Roths effective Jan 1, 2022 (yay for stealth tax increases), but if Congress actually passes it early in the new year, which seems likely... how does that sort of retroactive "no, you can't do the thing we let you do" typically work?
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Dec 13, 2021 01:37
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Small White Dragon posted:So BBB if passed prohibits backdoor Roths effective Jan 1, 2022 (yay for stealth tax increases), but if Congress actually passes it early in the new year, which seems likely... how does that sort of retroactive "no, you can't do the thing we let you do" typically work? I don't think a backdoor Roth is technically "done" until you report that you did it when you file your taxes, before then it's mainly bookkeeping by your brokerage firm. So if it passes in early 2022 and prohibits backdoor Roths, it'll probably be something like "go tell your brokerage firm to undo the conversion".
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Dec 13, 2021 03:53
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So our income has changed and we no longer count for pretty much everything due to phase outs below our income level (yay?) We also have a very clear idea of what our income will be over the next two years, although it's pretty complex with many line items I want to "pre render" my tax situation, can I just print off the 1040, W2, schedule 1,2,3,A,B,D, 8995, 8814, 4792, 8812, 1099, 8888 Presumably there's no schedule 4 or C, but I guess I'll have to check, they're not mentioned on the 1040 If I plug all that in and follow IRS official guidance, I should come up with the same number as turbo tax etc, right? And then the same with state income tax, looks like for California is the 540 and D-400 for north Carolina? TL;DR Just print off all the irs forms and build up a spreadsheet? I guess I could do this in turbo tax, but the interface freaks out if you back out and adjust numbers and go forward again a lot, and I think we're at the point where we need to intricately understand our taxes for making future decisions
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Dec 14, 2021 01:47
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There is something I don't understand if a US citizen gets a foreign mortgage - https://blog.taxadvisorypartnership.com/blog/us-tax/foreign-mortgage-exchange-rate-gain As shown in the below photo, why would the IRS consider the full mortgage amount in 2013 when the individual has already been paying into the mortgage every month since they started the original mortgage back in 2005? Here is a similar example - https://www.andrewmitchel.com/charts/rr_90_79.pdf From what I understand, this would only apply in scenarios where the full mortgage amount was paid as opposed to monthly. My understanding is that the de minims amount is 200 Euros so this issue should rarely apply to monthly repayments of a mortgage. In addition, I believe this exchange rate gain with the IRS would arise when one refinances. For example, 100,000 Euro 10 year mortgage taken out in 2020 when the exchange rate is 1 USD = 1 EUR ($100,000 USD). In 2030, when it's time to refinance the exchange rate is 0.75 USD to 1 EURO and there is 50,000 Euro ($37,500 USD) remaining on the mortgage balance. Would the refinancing of the 50,000 Euro amount result in a foreign exchange rate gain of taking the $50,000 USD (1 USD = 1 EUR back in 2020) to the exchange rate in 2030? So would the $50,000 USD - $37,500 USD = $12,500 be considered a foreign exchange rate gain and be a taxable event? Also, will the foreign exchange rate gain be considered as "Other Income" and eligible as part of the Foreign Earned Income Exclusion? Busy Bee fucked around with this message at 16:53 on Dec 15, 2021 |
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Dec 15, 2021 08:56
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Heyo, I've been an independent contractor since August, and I'd really love it if someone can point me to a newbie source of info of what exactly I need to do if I don't want to be reamed by the IRS for not paying taxes next April. Like I can prospectively pay right? I think it's periodic, and th deadline for this quarter is like today or the 18th?
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Dec 15, 2021 23:56
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I started a new job 12/6. I had already maxed my 401k at the previous job. When I completed the new job 401k paperwork, I selected 15% contribution because it stated it would take 1-2 pay periods to go into effect, which I figured would be in 2022. The first paycheck for my new job is tomorrow and they've taken 15% out of my pay for the 401k. This means that I'm now over the $19,500 max. Both old job and new job 401ks are with Fidelity. What happens? Is there any way I can fix that? Can I just get in contact with Fidelity to have them return it or something?
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Dec 16, 2021 19:57
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Cacafuego posted:I started a new job 12/6. I had already maxed my 401k at the previous job. When I completed the new job 401k paperwork, I selected 15% contribution because it stated it would take 1-2 pay periods to go into effect, which I figured would be in 2022. The first paycheck for my new job is tomorrow and they've taken 15% out of my pay for the 401k. This means that I'm now over the $19,500 max. Both old job and new job 401ks are with Fidelity. What happens? Is there any way I can fix that? Can I just get in contact with Fidelity to have them return it or something? Yeah but the process might take a few weeks and involve annoying steps like snail-mailing a signed letter, depending on the specifics of how Fidelity does it. Just get a customer service rep on the phone, say you have a 401k overcontribution, and do what they tell you. You have until you file your 2021 taxes to sort it out.
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Dec 16, 2021 20:29
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raminasi posted:Yeah but the process might take a few weeks and involve annoying steps like snail-mailing a signed letter, depending on the specifics of how Fidelity does it. Just get a customer service rep on the phone, say you have a 401k overcontribution, and do what they tell you. You have until you file your 2021 taxes to sort it out. Perfect, thank you! E: I’m also going to ask if there any way to keep the match that my new employer puts in there and send back my portion of the overcontribution.
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Dec 16, 2021 20:30
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Busy Bee posted:There is something I don't understand if a US citizen gets a foreign mortgage - https://blog.taxadvisorypartnership.com/blog/us-tax/foreign-mortgage-exchange-rate-gain You've officially reached engage a qualified professional territory. Section 988 currency gain/loss is too headache inducing to deal with outside of work and is not really my area of expertise.
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Dec 16, 2021 21:35
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KOTEX GOD OF BLOOD posted:Alright, thanks. I'll give EFTPS another few days then just send the check. Really appreciate the advice about this. I'm planning to just send the check on Monday if I don't get the pin by then, but I assume with the holidays and the backlog at the IRS they won't process it right away and I should expect nasty letters about how I owe interest and fees and poo poo. Will those fees, etc go away once they realize I paid them before the new year?
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Dec 17, 2021 22:43
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KOTEX GOD OF BLOOD posted:Still no EFTPS pin. Fuckers. rear end fuckers. Get tracking on it to show you sent it to them in plenty of time at least. Also, we rant about the IRS a lot here, but I’d like to take some time out to rant about the states too. Because man they’re driving me nuts lately. Maryland just dinged one client because they claim he somehow did not pay $1.70 in tax, which A. apparently results in $40 of interest somehow and B. is an amount I can’t actually arrive at even if I don’t round off my tax calculations (the instructions officially say “round to the nearest dollar” also). And Delaware is trying to claim a client had an additional several thousand dollars in income in 2017 due to a CP2000 notice, which the IRS never actually issued as far as we could tell, and they probably would have followed up with more letters/collection activity if we had missed the first letter. I’m not sure what the hell kind of proof I need to send them for that one.
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Dec 18, 2021 00:13
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