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Boot and Rally posted:Update! I was disallowed ~$1200 in direct roth contributions to Vanguard this year, I just decided to pull the $1200 out as excess rather than recharacterize then backdoor it. My investments were down since my contribution so I actually received ~$1150 back in my bank account, Vanguard must have auto calculated it somehow. Now they show $1200 as eligible 2021 contributions. I assume I'll get some 1099 form for filing 2022 taxes next year, maybe I can claim the loss as deductible? 
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Feb 25, 2022 19:35
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What's the filing extension for service members in combat zones? I can't find it to save my life.
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Feb 25, 2022 20:08
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AtomicSX posted:I was disallowed ~$1200 in direct roth contributions to Vanguard this year, I just decided to pull the $1200 out as excess rather than recharacterize then backdoor it. My investments were down since my contribution so I actually received ~$1150 back in my bank account, Vanguard must have auto calculated it somehow. Now they show $1200 as eligible 2021 contributions. According to Vanguard gains are taxed as ordinary income, so I'd guess you could deduct losses? When one recharacterizes then converts, if the Trad IRA gains then they pay taxes on the gains (8606 line 18 >0), if one has a loss when they convert then they get basis to carry forward (8606 line 14 > 0). So I think it would make sense to be able to deduct it but I have no idea.
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Feb 25, 2022 20:08
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BonerGhost posted:What's the filing extension for service members in combat zones? I can't find it to save my life. Looks like the explanation starts on page 31: https://www.irs.gov/pub/irs-pdf/p3.pdf
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Feb 25, 2022 20:19
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BabyJebus posted:Looks like the explanation starts on page 31: Thank you
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Feb 26, 2022 20:39
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This is probably a dumb question, but I wanted to check. I lived in Indiana from the start of the year until I quit and started my new job in Illinois on December 27, 2021. My last day working in Indiana was December 26. I hadn't received a statement by December 31 because the pay period did not end yet. Do I file a state income tax with Illinois for 2021? I'm thinking no because none of my income earned in 2021 was done in Illinois at that time. TurboTax doesn't think so, but wants me to file a return with Illinois and charge me for the privilege.
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Feb 28, 2022 04:05
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Per Illinois state website on who must file: A part-year resident, you must file Form IL-1040 and Schedule NR, Nonresident and Part-Year Resident Computation of Illinois Tax, if:
My read on this is that, no, you do not need to file since no income was earned while living in Illinois (income is usually earned when paid) Source: https://www2.illinois.gov/rev/individuals/filingrequirements/Pages/default.aspx
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Feb 28, 2022 05:12
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Just so I'm totally clear on this, I can't get the Recovery Rebate Credit because I was a dependent on my Mom's tax return in 2020 and she got an extra $1400 for me, correct? Turbotax wants me to take it because I was independent in 2021 but the IRS website says it should be based on 2020, not last year. E: Actually, on the actual page for the RRC and not the third economic stimulus, it says it is based on 2021 and not 2020. Am I actually eligible then for the credit? Reddit gave me two yeses and one no answer so I'm still not sure. demostars fucked around with this message at 05:58 on Mar 1, 2022 |
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Mar 1, 2022 03:58
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demostars posted:Just so I'm totally clear on this, I can't get the Recovery Rebate Credit because I was a dependent on my Mom's tax return in 2020 and she got an extra $1400 for me, correct? Turbotax wants me to take it because I was independent in 2021 but the IRS website says it should be based on 2020, not last year. You’re eligible for the credit if you claim yourself in 2021. Don’t worry, won’t affect your mom’s return.
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Mar 1, 2022 15:16
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I just got form 1095-C from work about my health insurance. Do I still need to keep this? I thought they eliminated the health insurance mandate anyway.
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Mar 4, 2022 17:44
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In 2021 I rolled some money from an IRA into a 401k. Should I have received a tax form for this? I can't identify a specific one I'm missing, but my IRA's 5498 shows money just disappearing (thousands of dollars of contributions but no current account value) and I'm surprised that there's no paper trail for the last step of the process.
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Mar 5, 2022 18:33
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raminasi posted:In 2021 I rolled some money from an IRA into a 401k. Should I have received a tax form for this? I can't identify a specific one I'm missing, but my IRA's 5498 shows money just disappearing (thousands of dollars of contributions but no current account value) and I'm surprised that there's no paper trail for the last step of the process. You should probably have gotten a 1099-R with a code G for a rollover. If you still have an online account with the company that held your IRA check if they have one available to download. There's no tax document from the 401K company that you would receive to my recollection.
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Mar 5, 2022 18:50
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Can anyone answer quick here: what’s the threshold where you can start getting fined if you owe the US too much at tax time? ….asking for a friend (apparently we need to check our withholdings , rip).
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Mar 5, 2022 19:45
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Epi Lepi posted:You should probably have gotten a 1099-R with a code G for a rollover. If you still have an online account with the company that held your IRA check if they have one available to download. There's no tax document from the 401K company that you would receive to my recollection. Ah, found it. I received a different 1099-R from the same provider for something else, so I missed that there were two of them. Thanks!
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Mar 5, 2022 20:10
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Duckman2008 posted:Can anyone answer quick here: what’s the threshold where you can start getting fined if you owe the US too much at tax time? https://www.irs.gov/taxtopics/tc306
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Mar 5, 2022 20:16
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Thought I would try e-filing my amended return again now that the IRS is open for e-filing. TurboTax is throwing me this. Is there any way I can e-file my 1040-x at this point, or am I hosed and have to file by mail? (I'm doing all this to claim RRC because I never received my $1200 stimulus.)
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Mar 5, 2022 22:02
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Badger of Basra posted:I just got form 1095-C from work about my health insurance. Do I still need to keep this? I thought they eliminated the health insurance mandate anyway. They still send them out but they don't usually matter unless you have a 1095-A, no. KOTEX GOD OF BLOOD posted:Thought I would try e-filing my amended return again now that the IRS is open for e-filing. TurboTax is throwing me this. Kind of odd; I know it's certainly possible to e-file 2020 amendments, I guess TurboTax cheaped out on giving you the capability to do it in future years? Not sure if there are any other tax software packages that still work though, I obviously use a much less user friendly setup with more capabilities since I (theoretically) know what I'm doing.
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Mar 6, 2022 01:50
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Hey guys, friendly advice here. The W-4 introduced in 2019 is a loving mess and your employers may understand less than you. Remember, audit your own paycheck if you either get a new job or change your withholdings. See if it makes sense. All too often I have changed W-4s to raise withholdings for clients only for them to lower their withholdings due to employer incompetence. Two examples: 1. All I did was have the client check the "worked two jobs" because they had two jobs. I did it for both W-4s. Her smaller job, ironically, understood. But her local school didn't and lowered her withholdings somehow. Thankfully, she noticed and I corrected it by requesting the employer worksheet and identified that they...simply didn't add the changes from checking the box at all. Seriously, their work sheet had a "if this box is checked, set this deduction to 0" and it wasn't 0. 2. I had a married couple owing money. Both worked and made about the same. Due to a math error on the IRS part, that usually means you owe unless you check the 2 jobs box. So, I had them both check the box. They were virtual so I sent the W-4 digitally through Ultratax. I work with the wife, never speak to the husband. Wife's changes were fine but the husband ultimately withheld 5000 less and we didn't find out until filing. Which is arguably his fault because his paycheck went up 192 USD every two weeks and that should have been a red flag. Anyway, why did this happen? Ultrax tax fills out the itemized deduction worksheet on page 2 even if its zero. There is a line where you out in your standard deduction so you can subtract your itemized deductions and get your excess deductions. Their employer interpreted this form as 25,100 of EXTRA ITEMIZED DEDUCTIONS and this withheld as if they'd get their standard deduction twice. This one almost floored me, tbh, with how obvious and big of a mistake this is for the HR person. Like, seriously? The line for itemized deductions is blank on the front page and the worksheet computes a 0, why use a random number in the middle of a worksheet? The random line that just says pick this number based on your filing status? It's just there to subtract another number. Since that number was 0 as they don't itemize, the entire rest of the worksheet is 0. I usually don't send the 2nd page but it's a virtual appointment with out of state clients so I sent a digital package and ultratax sends all pages by default. Honestly, your employer probably understands the form less than you. Before, all they had to know was to input a number between 0 and 9. That's all most payroll people are trained to do for withholdings calculations. Now, they are expected to understand your tax credit calculations, extra withholdings, itemized deductions, extra income, and two job/multiple job calculations. Congress and the IRS did not consider the practical results of removing exemptions and remaking the withholding system we using since the 1930s. The only way to protect yourself is to be proactive. Covok fucked around with this message at 06:44 on Mar 6, 2022 |
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Mar 6, 2022 06:40
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Just double checking my math here on the standard deduction vs itemizing, and if I should bother digging up every last dollar of random charitable contributions. $25,100 - MFJ Standard Deduction ($10,000) - SALT cap ($ 8,000) - Mortgage interest (rounded down) ($ 3,000) - Charity ($ 0) - Unreimbursed medical, education, gambling losses = $4,100 leftover. I think everything else is nickels and dimes here and there - I'm not space-cadet forgetting some major source of itemized deductions here right?
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Mar 10, 2022 00:46
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Student loan interest and personal property tax (like cars) are two other big ones that you probably already discounted.
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Mar 10, 2022 00:59
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Xenoborg posted:Student loan interest and personal property tax (like cars) are two other big ones that you probably already discounted. Property tax is in the SALT cap. I'm maxed there. Thanks. Edit: Quick shout out to Ally Bank for not letting me download my 1099-INT because the account is in trust. H110Hawk fucked around with this message at 01:28 on Mar 10, 2022 |
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Mar 10, 2022 01:07
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Xenoborg posted:Student loan interest and personal property tax (like cars) are two other big ones that you probably already discounted. Student loan interest is an above the line deduction. Personal property tax doesn't exist in every state. Funny enough, it doesn't exist in NY, which you really think would have it. For the record vis-a-vis "personal property tax" vs "property tax" in this discussion is that "personal property tax" applies to things other than homes.
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Mar 10, 2022 03:02
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H110Hawk posted:I think everything else is nickels and dimes here and there - I'm not space-cadet forgetting some major source of itemized deductions here right? Probably not. That looks like the deductions that most of my upper-middle class clients have. Medical deductions are available, but often pointless because you have to clear 7.5% of AGI before you can count anything, and unless a tornado blew up your house or you got scammed by the nephew of Bernie Madoff you're probably not missing anything. If the charitable giving is check/credit card you can consider setting up a donor advised fund to frontload several years of charitable giving if you can afford it (you'd want at least $15k, maybe $25k to make the hassle worthwhile). You itemize in one year and then spend down the fund with future year donations. If you own shares of stocks or mutual funds in a non-retirement account, that would be even better as there are special opportunities there as well.
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Mar 10, 2022 03:08
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H110Hawk posted:Just double checking my math here on the standard deduction vs itemizing, and if I should bother digging up every last dollar of random charitable contributions. Standard deduction is the way to go for you but don't forget the $600 above the line charity deduction this year.
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Mar 10, 2022 03:24
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Epi Lepi posted:Standard deduction is the way to go for you but don't forget the $600 above the line charity deduction this year.  thanks. I realized that CA let's me still deduct it so I totalled it up.Missing Donut posted:If the charitable giving is check/credit card you can consider setting up a donor advised fund to frontload several years of charitable giving if you can afford it (you'd want at least $15k, maybe $25k to make the hassle worthwhile). You itemize in one year and then spend down the fund with future year donations. If you own shares of stocks or mutual funds in a non-retirement account, that would be even better as there are special opportunities there as well. Thanks. This might be the year we do that. I've looked at the fidelity one (which is what we would use) in the past. Never really had the cash around to properly fund it. For the taxable stocks stuff do you just donate the equity / mutual fund directly instead of realizing the gain then donating? Does that let you deduct the fmv at donation time without ever paying taxes on the gain?
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Mar 10, 2022 03:39
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H110Hawk posted:Thanks. This might be the year we do that. I've looked at the fidelity one (which is what we would use) in the past. Never really had the cash around to properly fund it. For the taxable stocks stuff do you just donate the equity / mutual fund directly instead of realizing the gain then donating? Does that let you deduct the fmv at donation time without ever paying taxes on the gain? Yeah, you identified the main reason most people can't do this strategy. A lot of people get to $3,000 or so a year in donations by having room in their weekly/monthly budget, but coming up with the cash to set up the DAF would be difficult if not impossible. Your understanding on the taxable/non-retirement stocks is correct -- you skip out on paying taxes on the gain, and you get to deduct the fair market value of the stock, so long as you meet the long-term holding period. So look for one with a lot of gains, where you meet the long-term holding period, and you've cut down your tax bill. (Don't donate a loss stock; if you had that situation you would want to sell the stock before donating the proceeds)
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Mar 10, 2022 15:56
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Anyone have experience filing abroad with children? If I'm almost taking the foreign income exclusion, having a child I don't think should change how I file.
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Mar 13, 2022 09:10
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did anyone else file their federal immediately? I did mine by mail since I'm pretty sure I'm not eligible for the free e-file, on January 30th. no info on my refund yet (says they haven't received it), but I think you are supposed to wait six weeks before contacting them about it.
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Mar 13, 2022 21:34
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actionjackson posted:did anyone else file their federal immediately? I did mine by mail since I'm pretty sure I'm not eligible for the free e-file, on January 30th. no info on my refund yet (says they haven't received it), but I think you are supposed to wait six weeks before contacting them about it. You are probably in for a long wait, the IRS has been hosed up since 2020 when it comes to anything mailed in so good luck! If you wanted a quicker refund should have ponied up to e-file.
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Mar 14, 2022 05:41
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I'm getting a little confused while working through Publication 936. I sold a home that was under the mortgage interest cap, but then I bought a home that is above the mortgage interest cap. I'm trying to determine how much of my interest payments I'm allowed to deduct. I would have thought "all of the interest on the first home, plus X% of the interest on the second home" but this publication has me doing something else. Line 12's instructions reads "Figure the average balance for the current year of each outstanding home mortgage. Add the average balances together and enter the total on line 12." The word "outstanding" here is tripping me up. If I sold a house (paying off any balance) and bought a new one, do I just write down the average balance of the new loan, or do I add in the average balance of the old loan as well? Follow-up question, Line 13 reads "Enter the total amount of interest that you paid on the loans from line 12". If you only entered the outstanding balance for the new loan, wouldn't that mean you only get to deduct interest on the new loan? This is leading me to believe that Line 12 should be the sum of the average balance for both loans. But then that means that the fraction of interest that I'm able to deduct is smaller this year than it will be next year, which makes me think that I'm doing something wrong
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Mar 14, 2022 06:18
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Epi Lepi posted:You are probably in for a long wait, the IRS has been hosed up since 2020 when it comes to anything mailed in so good luck! no worries, I think it was six weeks last time.
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Mar 14, 2022 14:49
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GoutPatrol posted:Anyone have experience filing abroad with children? If I'm almost taking the foreign income exclusion, having a child I don't think should change how I file. Foreign Tax Credits are where it's at if you have kids. Assuming you live in a country where your tax burden is the same or higher than it would be in the US, it's a no-brainer. FTCs let you get the Child Tax Credit (refundable at $1,400 per child - was a little bummed when I read the fine print for this year's expanded CTC and learned you had to have resided in the US to qualify). If your spouse is not American/doesn't have a green card, you can also now file as Head of Household instead of MFS, which is nice (e.g., higher income limits for Roth IRA contributions (which you can do now that all of your income isn't excluded from the FEIE)). Of course, if you're in Dubai or something, then the FEIE is probably better.
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Mar 14, 2022 19:23
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Got my last tax form TODAY because I had to call and ask them to mail it, thanks Ally Bank. Submitted it to my accountant, good luck tax guy.
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Mar 14, 2022 22:09
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H110Hawk posted:Got my last tax form TODAY because I had to call and ask them to mail it, thanks Ally Bank. Submitted it to my accountant, good luck tax guy. Lol I was on the phone with Ally (because they have not responded to the request for a payoff amount letter from my refi company after 3 tries and 2 weeks) only to be greeted with "extremely long wait times. We are aware tax documents can't be downloaded from the web site and expect to have that fix by tomorrow." As much as I hate dealing with paper, I hate that these places keep everything in their portal rather than having some way to send it to me securely/electronically. Then you hear about things like this happening. It doesn't seem there are many good solutions that don't involve a lot of manual work, downloading, and file janitoring.
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Mar 14, 2022 23:13
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Motronic posted:Lol I was on the phone with Ally (because they have not responded to the request for a payoff amount letter from my refi company after 3 tries and 2 weeks) only to be greeted with "extremely long wait times. We are aware tax documents can't be downloaded from the web site and expect to have that fix by tomorrow." This was specifically because it's a trust account. They don't let people download it from their website. I think their system that mails trusts statements is entirely broken because I don't think I've gotten a statement from them for two months now that I think about it. I can do literally everything else, because I'm the trustee/trustor (both!) but god forbid I get a pdf. Mine didn't have the warning about tax docs, it said 4 minute hold time and was pretty accurate.
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Mar 14, 2022 23:25
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QuarkJets posted:I'm getting a little confused while working through Publication 936. I sold a home that was under the mortgage interest cap, but then I bought a home that is above the mortgage interest cap. I'm trying to determine how much of my interest payments I'm allowed to deduct. I would have thought "all of the interest on the first home, plus X% of the interest on the second home" but this publication has me doing something else. If you sold the home prior to buying the new home and you only owned one home at any given time, I believe you would deduct the first home interest in full and then only bother with the new home interest on the worksheet. Admittedly, I live in an area where it's relatively rare to have a $750,000 home so it's been a while since I dealt with this particular situation.
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Mar 14, 2022 23:48
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Filed my amended return. I had to pay $12 in taxes. $12.
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Mar 15, 2022 00:29
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Magic City Monday posted:Foreign Tax Credits are where it's at if you have kids. Assuming you live in a country where your tax burden is the same or higher than it would be in the US, it's a no-brainer. My tax burden right now in Taiwan is alot less than what it would be in the US so I've always taken the exclusion. I also make...alot less than what the exclusion is up to these days (around 110K.)
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Mar 15, 2022 00:34
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GoutPatrol posted:My tax burden right now in Taiwan is alot less than what it would be in the US so I've always taken the exclusion. I also make...alot less than what the exclusion is up to these days (around 110K.) I am not a math/tax expert, but I did a quick comparison on what the tax for 75,000 USD/2,141,835 TWD would be and it seems like the tax rate might only be like 1% lower in Taiwan (total tax percentage for US taxes at that level would be 14.16% and Taiwanese would be 13.72%). And you get a standard deduction of 12,550 USD (18,800 USD if you file head of household) which would reduce your tax burden even further. I would give it a shot though, put your info into TurboTax and see what comes out. The tax brackets don't seem that different (US is a little higher on the first 18,000 USD) but would the difference be larger than 2,000 USD? If not, you might be able to at least get a couple hundred bucks back. Just keep in mind that you can't switch back and forth each year. If you've already taken the FEIE and then switch to FTCs, you have to wait 5 years before using the FEIE again. Magic City Monday fucked around with this message at 15:52 on Mar 15, 2022 |
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Mar 15, 2022 15:35
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 I filled out my 2021 Roth IRA contribution in April of that year, and I ended up making too much money in 2021 and went over the limit. That sucks. Apparently I have to figure out how to withdraw the right amount of money by mid-April. Apparently my options are to either withdraw that money straight from my Roth, or recharacterize the contribution to Traditional. Which one is easier to get done by the deadline? And/or which one should I do?Prolly just not going to contribute to my Roth unless I know how much I made in the previous tax year from now on. Pollyanna fucked around with this message at 23:53 on Mar 17, 2022 |
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Mar 17, 2022 23:48
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