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Pollyanna posted:
Whichever investment company you use for your Roth IRA should do the math for you and refund the right amount - just tell them you overcontributed by $X and they'll refund the right amount. Whether you do a refund or a recharacterization, it should be pretty quick and straightforward. This is a frequent issue. Whether to refund or recharacterize is a bit complicated. The best situation for recharacterizing is if you have no, or very low, traditional IRA balances right now. In that case, you can do the recharacterization and then convert it to a Roth (the "backdoor" Roth strategy). If you have a large traditional balance the decision is much less straightforward. If you're going to be near the Roth IRA limits in the future, you are probably better off waiting until you're preparing your taxes to make your contribution, yes.
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Mar 18, 2022 00:42
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I rolled over my previous 401k into a Rollover IRA so recharacterization might be a problem there. But Vanguard has been very helpful so far for sure.
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Mar 18, 2022 00:48
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I think I'm just gonna withdraw/refund it, and not mess with IRA contributions any further for 2021 or 2022.
Pollyanna fucked around with this message at 01:33 on Mar 18, 2022 |
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Mar 18, 2022 01:11
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Pollyanna posted:I rolled over my previous 401k into a Rollover IRA so recharacterization might be a problem there. But Vanguard has been very helpful so far for sure.
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Mar 18, 2022 01:43
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Maybe I’ll investigate that after I fix my contribution issues for TY 2021. For now, I just wanna resolve this cuz I’ve already gotta deal with an annoying tax bill because ISOs and RSUs are a pain in the rear end.
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Mar 18, 2022 02:02
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Pollyanna posted:Maybe I’ll investigate that after I fix my contribution issues for TY 2021. For now, I just wanna resolve this cuz I’ve already gotta deal with an annoying tax bill because ISOs and RSUs are a pain in the rear end. Those things do manage that trick a lot, yes. Think most of my sudden "WHY DO I HAVE SUCH A BIG BILL?!!" this year tax clients have come from that stuff, sudden K-1 income from estates, cryptocurrency (Last In First Out on selling can apparently REALLY screw you there given how fast crypto values can shift), and the perennial major cause, failing to withhold correctly due to life changes or just plain mix-ups.
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Mar 20, 2022 23:43
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MadDogMike posted:and the perennial major cause, failing to withhold correctly due to life changes or just plain mix-ups. Hilariously, I never had issues with my withholding until I started working for the IRS and then it's almost always a little short. After the last couple of years of being consistently $250-350 short I adjusted my W4 to take out an extra $10 per pay period thinking that would pretty much zero me out since my tax situation is very static from year to year beyond my usual annual pay bump. I ended up short $650 this year instead. I covered it no problem, it's just ironic that the IRS of all places is the one that keeps loving up my withholding, even after I've double-checked repeatedly with their withholding calculator to make sure I'm doing everything correctly with a little extra to spare in theory.
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Mar 21, 2022 17:44
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You know what? I'll post my question here. Easier than trying to get CS support on the line. I have a client who won a gender discrimination case. They were the victim. Plantiff is entitled to their contingent legal fees under that 2004 bill as an above the line deduction. Anyone know where to place that in Ultratax CS 2021?
Covok fucked around with this message at 03:26 on Mar 22, 2022 |
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Mar 22, 2022 03:10
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Hmm, ended up running into something the FreeTaxUSA Live Chat couldn't help me with, but I think I spooked myself into thinking it's a problem in the first place. I used money from a 529 College Savings account last year to pay back grant money I owed the school from a class I didn't attend in 2020, and was sent both a 1098-T from the school and 1099-Q from the savings account. When I entered both of the forms, it looks like since the numbers match between box 6 on the 1098-T and box 1 on the 1099-Q that my distribution was qualified and I don't need to worry about it. However, when I asked support, they actually didn't know if repaying adjustments to grants was a qualified distribution. Anyone here know for sure if I need to report what is on these forms or will it not affect my tax return at all?
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Mar 22, 2022 07:09
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demostars posted:Hmm, ended up running into something the FreeTaxUSA Live Chat couldn't help me with, but I think I spooked myself into thinking it's a problem in the first place. I used money from a 529 College Savings account last year to pay back grant money I owed the school from a class I didn't attend in 2020, and was sent both a 1098-T from the school and 1099-Q from the savings account. When I entered both of the forms, it looks like since the numbers match between box 6 on the 1098-T and box 1 on the 1099-Q that my distribution was qualified and I don't need to worry about it. However, when I asked support, they actually didn't know if repaying adjustments to grants was a qualified distribution. Anyone here know for sure if I need to report what is on these forms or will it not affect my tax return at all? Box 1 says qualified, I would trust the accountants at your school.
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Mar 22, 2022 13:15
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So, I finally got my K-1 from my workplace. FreeTaxUSA is asking for the numerical boxes on the form, which are all blank. I do however have numbers in the lettered boxes up to and including N. How do I enter this? This seems strange. Edit: I have a code AH in the amount of 38967 on page 2. Deviant fucked around with this message at 14:53 on Mar 22, 2022 |
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Mar 22, 2022 14:45
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Deviant posted:So, I finally got my K-1 from my workplace. FreeTaxUSA is asking for the numerical boxes on the form, which are all blank. I don't know anything about how FreeTaxUSA data entry works, but did you try putting the number and the code in the box? As in, if box 11 has "A" and 300 you put "11A" in the numerical box? Covok posted:You know what? I'll post my question here. Easier than trying to get CS support on the line. I have a client who won a gender discrimination case. They were the victim. Plantiff is entitled to their contingent legal fees under that 2004 bill as an above the line deduction. Anyone know where to place that in Ultratax CS 2021? Try 1040 Adjustments>OtherAdj screen, Other Adjustments statement box.
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Mar 22, 2022 14:52
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Missing Donut posted:I don't know anything about how FreeTaxUSA data entry works, but did you try putting the number and the code in the box? As in, if box 11 has "A" and 300 you put "11A" in the numerical box? The numbered boxes are _totally_ blank. On page 2 I have quote:Partner Footnotes Associated w/Sch. K-1, Line 20 When I put that into FreeTaxUSA I get: quote:Enter Other Information Elsewhere The VCP was a Value Creation Program, similar to stock options. I was issued company stock, which I immediately sold. My understanding is that it was taxed as long term on award (230 shares at $169.42/share = $38966.60), and short term for the small gain between that and sale ($7.09 x 230 = $1630.7) but I'm unclear on how to enter that. Boxes 8 and 9a on the K1 i'd think, but they're blank on the form itself. Deviant fucked around with this message at 15:12 on Mar 22, 2022 |
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Mar 22, 2022 14:54
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Pretty much everyone I know stopped using tax prep software and started using A Guy as soon as they started getting K-1s
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Mar 22, 2022 15:22
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I did a mailed 1040 right away, like January 30th. the refund status still says they cannot find any info about the return. the IRS operations center says this quote:The IRS is opening mail within normal timeframes and all paper and electronic individual refund returns received prior to April 2021 have been processed if the return had no errors or did not require further review. As of March 11, 2022, we had 7 million unprocessed individual returns. This includes 4.5 million unprocessed individual returns, which include tax year 2021 and prior returns with errors and those returns requiring special handling such as those that require correction to refundable credit amounts. This work does not typically require us to correspond with taxpayers but does require special handling by an IRS employee so, in these instances, it is taking the IRS more than 21 days to issue any related refund and in some cases this work could take 90 to 120 days. If a correction is made to any Recovery Rebate Credit, Child Tax Credit, Earned Income Tax Credit or Additional Child Tax Credit claimed on the return, the IRS will send taxpayers an explanation. Taxpayers are encouraged to continue to check Where’s My Refund? for their personalized refund status and can review Tax Season Refund Frequently Asked Questions. so it sounds like anything they received before April 2021 that did not have errors has been processed. should I assume mine had an error, and that's why I can't get any info (because then the expected refund amount I put in would be incorrect) It doesn't seem like I have anyway of knowing if they actually received it vs. it just getting lost (I know the latter is very unlikely, but still) actionjackson fucked around with this message at 15:26 on Mar 22, 2022 |
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Mar 22, 2022 15:24
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KYOON GRIFFEY JR posted:Pretty much everyone I know stopped using tax prep software and started using A Guy as soon as they started getting K-1s Yeah, this is not what I'd call common for me, so I was hoping to avoid it. I thiiiink I've got it right though.
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Mar 22, 2022 15:30
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actionjackson posted:I did a mailed 1040 right away, like January 30th. the refund status still says they cannot find any info about the return. January 30th, 2022 is after April, 2021?
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Mar 22, 2022 15:33
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PCjr sidecar posted:January 30th, 2022 is after April, 2021? OH GOD DAMMIT forgive me i'm turning 40 in a few months
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Mar 22, 2022 15:45
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actionjackson posted:OH GOD DAMMIT Curse you, linear time!
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Mar 22, 2022 15:52
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when it says "This includes 4.5 million unprocessed individual returns, which include tax year 2021 and prior returns with errors" i'm a bit confused. does "errors" apply just to prior year returns, or tax year 2021 + prior returns i.e. is it tax year 2021 returns without errors <2021 returns with errors or tax year 2021 with errors and previous year returns with errors
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Mar 22, 2022 16:13
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Missing Donut posted:I don't know anything about how FreeTaxUSA data entry works, but did you try putting the number and the code in the box? As in, if box 11 has "A" and 300 you put "11A" in the numerical box? Thank you. That was correct. You just have to pick the type code for UDC. Saved me a call to the software company.
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Mar 22, 2022 19:00
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Hello, I just bought a house in the past year, and its my first time buying a house and then doing taxes. I ended up liquidating a bit of my 401k to pay for the downpayment. I was wondering if there was anything I should know about when filing my taxes this year. Can anyone help? (In addition, or possibly as an answer to the above question: is this going to be so insane and/or complex that I should probably just hire someone?)
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Mar 23, 2022 20:39
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KYOON GRIFFEY JR posted:Pretty much everyone I know stopped using tax prep software and started using A Guy as soon as they started getting K-1s Kinda funny to me, our software handles most of the K-1 stuff pretty automatically (my main headaches are more entering the QBID information and the capital account stuff); it's mainly "put this number on this line" kind of work. Our in-house preparer stuff is obviously designed to be less than user friendly to the average person (and occasionally the average preparer...) but that part is straightforward enough for most things I'm surprised the commercially available stuff has issues. Of course the real fun is moving into more work PREPARING K-1s, that's turning into more of a headache. Nothing like a bare year or so serious experience with entity returns and trying to work out how to handle a rental partnership that just took a bunch of properties out to each partner's personal rentals including one partner directly paying the other for one of them and playing what's the basis now game (ESPECIALLY when everybody before me was a lazy bastard who forgot to write down the original outside basis so I had to reconstruct it from scratch!!  ).German Joey posted:Hello, I just bought a house in the past year, and its my first time buying a house and then doing taxes. I ended up liquidating a bit of my 401k to pay for the downpayment. I was wondering if there was anything I should know about when filing my taxes this year. Can anyone help? Main headache will be the 401k liquidation, which will I assume be an early distribution so you get the 10% penalty (can't do first time home buyer if it's not an IRA unfortunately). All that will probably just be on the Form 1099R they sent you though, which I presume most software can handle since they're common. House purchase only matters if you have enough mortgage interest to itemize for federal (unlikely) or state (possibly more likely depending), they send a Form 1098 for that. None of that is too complex for ME but obviously my understanding of tax difficulty is a little skewed from average since I do more returns in a year than most people ever do in their lifetime  .actionjackson posted:OH GOD DAMMIT Despite being, ahem, further along than you, I'm pleased to say my brain failures are due mostly to sleep deprivation right now. Particularly when I do things like post on Internet forums when I should be getting up in about six hours for a thirteen hour day because insomnia is annoying. Thank God I studied enough to do tax returns in my sleep, ha ha ha...
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Mar 24, 2022 05:38
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German Joey posted:Hello, I just bought a house in the past year, and its my first time buying a house and then doing taxes. I ended up liquidating a bit of my 401k to pay for the downpayment. I was wondering if there was anything I should know about when filing my taxes this year. Can anyone help? Did you take a 401k loan or distribution? I did a loan in 2017 and don't recall having to do anything special at tax time. A distribution with 1099-R would be a different story as MadDogMike addressed.
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Mar 24, 2022 19:02
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I honestly don’t like being compensated in anything stocks adjacent because of how much of a pain it is to properly predict how much I’ll owe later. I really need to make a W-4 for my new job. I’ve been running into AGI-related issues over the past year or two.
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Mar 25, 2022 18:23
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Check your withholdings folks, don't be like Skippy!. I owe 8200 this year, and the IRS estimator say I'll owe 6200 next year if I don't adjust things.
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Mar 25, 2022 20:03
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I'm receiving profits interests and have to file a 83(b) election. Is this something I can do by myself? The IRS example on the topic includes language around common stock, which this is not. I kind of assume I should consult with a professional.
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Mar 26, 2022 14:44
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skipdogg posted:Check your withholdings folks, don't be like Skippy!. I owe 8200 this year, and the IRS estimator say I'll owe 6200 next year if I don't adjust things. I ended up bumping up my Supplemental Income (i.e. bonus and RSUs) withholding from 0% from 8% for basically this reason. Can’t wait to see how much of an asspain next year will be.
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Mar 26, 2022 16:07
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KYOON GRIFFEY JR posted:I'm receiving profits interests and have to file a 83(b) election. Is this something I can do by myself? The IRS example on the topic includes language around common stock, which this is not. I kind of assume I should consult with a professional. Theyre really not required in most situations with LLC/LP profits interests. Most practitioners recommend them only 1) in the interest of being conservative and 2) theyre not particularly hard to do. https://www.dlapiperaccelerate.com/knowledge/2017/profits-interest-grants.html if interested in reading on why I'm indicating theyre not required in most situations Definitely not something for which you need to engage a professional. Pretty much everything you need to know/do can be googled.
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Mar 27, 2022 12:17
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skipdogg posted:Check your withholdings folks, don't be like Skippy!. I owe 8200 this year, and the IRS estimator say I'll owe 6200 next year if I don't adjust things. Did companies play with withholding this year for some reason (the child tax credit increase maybe)? I swear I've seen more people under-withheld this year for some reason, and a lot of them didn't make any changes. Busting out our W-4 calculator/generator a lot; just wish I trusted that thing more since it has a bad habit of assuming things stay the same next year with one and done things like the stimulus and I have issues making the drat thing do increased but spread out withholding over multiple W-2s instead of cramming the whole extra recommended withholding on the top W-2 and giving the client sticker shock at how much it wants to pull per paycheck for that job. Though for real fun there's nothing like brand new 1099-NEC work where I pity the poor souls learning what those "SE tax" and "quarterly withholding" things are all about from my patient (sometimes wincing with the current year's bad news I have to tell them) explanation. People are way too used to their company handling all the work for them tax-wise. Pollyanna posted:I ended up bumping up my Supplemental Income (i.e. bonus and RSUs) withholding from 0% from 8% for basically this reason. Can’t wait to see how much of an asspain next year will be. For taxes at least the main thing to realize in my experience is pretty much anything to do with exercising options should show up as part of the W-2, everything with selling the stock after is on a 1099B. Had a bunch of clients confuse me in my early years by insisting they had "additional withholding" from that stuff without realizing that was already added to their W-2 withholding. Do not claim you paid the IRS a lot of extra money, they will Know Better and it will be Bad. Also for the stock sales make sure you check for a supplement, the main 1099B often does not have the correct basis reported.
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Mar 27, 2022 21:00
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Oh don’t worry I learned that lesson last year. 
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Mar 28, 2022 02:16
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My employer forgot to include some of my income on my W2. I've already filed my taxes/received my return. They're going to send out a 1099-NEC but it will probably be a bit. How long do I have to file an amended return?
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Mar 29, 2022 02:02
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Residency Evil posted:My employer forgot to include some of my income on my W2. I've already filed my taxes/received my return. Uh...that's not right. They should amend your W-2 for the remaining income and pay the penalties on the late payroll tax instead of putting the payroll taxes and penalities onto you. They can't just put it on a 1099-NEC, they have to do a W-2-C. You have an employee/employer relationship: you get a w-2. God, why are employers so loving stupid? You can't just put employee wages on a 1099-NEC. I swear half my job as a small business accountant has been explaining that.
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Mar 29, 2022 02:09
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Covok posted:Uh...that's not right. They should amend your W-2 for the remaining income and pay the penalties on the late payroll tax instead of putting the payroll taxes and penalities onto you. They can't just put it on a 1099-NEC, they have to do a W-2-C. You have an employee/employer relationship: you get a w-2. God, why are employers so loving stupid? You can't just put employee wages on a 1099-NEC. I swear half my job as a small business accountant has been explaining that. This is from our accountant. I'll pass this along, thanks.
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Mar 29, 2022 02:21
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Admiral101 posted:Theyre really not required in most situations with LLC/LP profits interests. Most practitioners recommend them only 1) in the interest of being conservative and 2) theyre not particularly hard to do. Extremely helpful, thank you very much!
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Mar 29, 2022 13:06
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Residency Evil posted:This is from our accountant. Last year my CPA basically wrung my previous job’s neck over not properly reporting my income on my W-2 and I also had to wait for it to be corrected. It sucked and you should never assume a business is competent, especially in accounting and finances.
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Mar 29, 2022 16:05
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My favorite year was getting two w-2c's. What fun. Thankfully work caught both of them nearly immediately and told us there was a mistake like 24hrs after issuing them. Several freaks had of course filed their taxes in that window despite it definitely being too soon re: all forms coming in in general.
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Mar 29, 2022 16:13
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FTC suing Intuit over the "free" turbotax campaignquote:The Federal Trade Commission is taking action against Intuit Inc., the maker of the popular TurboTax tax filing software, by issuing an administrative complaint against the company for deceiving consumers with bogus advertisements pitching “free” tax filing that millions of consumers could not use. In addition, to prevent ongoing harm to consumers rushing to file their taxes, the Commission also filed a federal district court complaint asking a court to order Intuit to halt its deceptive advertising immediately. Gosh, what a shame.
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Mar 30, 2022 16:40
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EDIT: Never mind.
DrSunshine fucked around with this message at 01:51 on Apr 3, 2022 |
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Apr 2, 2022 03:01
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I'm interested in paying taxes. I never have before. I can't talk to my family about it, because they do rather anything they can not to, but it seems like something I should do. So here's the thing. I have no income besides what I make from my business. My business is very much in the lines of a hobby -- profit has never been a goal. I do what I like to do without any regard for profitability. In 2021, I made exactly $1,799.98. I've got 1099 forms documenting it from PayPal, Amazon Direct, and Amazon Pay. I don't take cash and I have no physical storefront. How much did I spend? A whole hell of a lot more than I made. I'd need to study my expenditures much more carefully, but it's at least $8,000. It's very likely closer to $15k or $20k. The difficulty is that I make no distinction whatever if it's a business or a personal expenditure, and for a lot of the time it's not obvious which it is, because they're the sort of things I'd buy regardless if I had a business in mind or not. Now, stuff like housing, I pay exactly zero dollars towards. My name is on the lease of my house, but my mother has always paid the rent. I don't even know what the rent is. If I had to pay it myself, I'd have to, like, get a real job and I have no interest whatever in doing that. I work around 120 hours a week doing what I want to do. I have never intended to work for anyone else doing things that they'd rather I do. Food, I buy some of it, but I usually just take the debit card I have linked to my mother's bank account and don't even look at the total, because I've always been assured that account will never be lacking in funds. I've never got anything resembling an allowance, either now or when I was a child. I just draw on family money whenever I need it. My mother is usually angered whenever she finds out I bought something with my own money. My current business plan really is just "Is this something I'd like to do? Then let's do." I've never taken out a loan, either for the business or for anything at all. Any big expenditures, like my college education, were payed up front and in full out of my mother's pocket. TurboTax suggests I'd pay zero dollars in federal taxes and zero in state tax. I'd also get $130 in returns from the state and $1,400 from the feds. I'd get $4,800 in deductions, and I don't altogether know what that means. I have never been raised to understand money to any great degree. Money is simply always there. So, all this talk about income and expenditures and deductions, it's kind of all gobbledygook to me, but I'm trying to figure it out. So this being legal and everything and paying taxes on my business (even if TurboTax suggest I'd "pay" -$1,530) sound like a lot of fun and I'd like to do it. But there is a big issue. I'm not well and I fell really rather ill last year, to the tune of about three million dollars in medical bills. My case worker was a very nice lady and got the state to pay for all of it. While I've never actually known hardship, she explained that, strictly speaking, I'm in abject poverty and it's only right that the state should pay for me. Again, very nice lady. Now, I wouldn't want to jeopardize that. The family money has always paid my way and always will, but I understand even it can't sustain a three million dollar bill. Now, my family keeps telling me I'm a fool, but I would actually like to pay taxes to the state. Federal government, gently caress 'em, but I like my state and I'd really like to do my bit. I've never considered myself all that much of an American, but I do consider myself part of my state. But I can't lose my health coverage. I'm not especially well, and besides the $3,000,000 I've already got to thank the state for, there's very likely going to hundreds of thousands if not millions more in the coming years. Is TurboTax fine? Or should I hire something like a CPA? I've been kept very much in the dark about such things. I know pretty much nothing at all.
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Apr 3, 2022 03:20
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