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Insurrectum posted:I moved from DC to MD midway through the year, but didn't end up changing my withholding state from DC to MD until this year. I change my address with my company, but I didn't realize I had to fill out a separate form to change my withholding information. I ended up vastly overpaying my DC withholding didn't pay any MD tax, so I am being hit with a substantial interest penalty for my MD state taxes (at least, that's what TurboTax is saying). Is this just something I'll have to suck up and pay? You should see about applying for a first time penalty abatement waiver. You might not qualify, but your situation sounds common enough. "I updated my employer and thought that took care of it." ought to get it off the books if the person reviewing it is reasonable. Pay at a minimum the complete amount of tax due as soon as possible to stop the timer.
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Apr 10, 2022 21:11
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Stupid question and I am p sure the answer is no. IF my only 'income' was like 200 in dividends, I don't have to file taxes for that right, since it is under the standard deduction right? Only reason I might want to is to try to carryover some stock losses of like 1k but I am out of the market and don't know if it is even worth my time to try that, thanks!
Michael Corleone fucked around with this message at 13:53 on Apr 11, 2022 |
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Apr 11, 2022 13:50
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Michael Corleone posted:Stupid question and I am p sure the answer is no. IF my only 'income' was like 200 in dividends, I don't have to file taxes for that right, since it is under the standard deduction right? Only reason I might want to is to try to carryover some stock losses of like 1k but I am out of the market and don't know if it is even worth my time to try that, thanks! Nice edit, but cash is income.
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Apr 11, 2022 13:53
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Harsh but fair. That would take like 4 minutes to file. My real question is if I don't plan on being a 'day trader' ever again, is it worth it to try to carry over the stock losses?
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Apr 11, 2022 14:01
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Michael Corleone posted:Harsh but fair. That would take like 4 minutes to file. My real question is if I don't plan on being a 'day trader' ever again, is it worth it to try to carry over the stock losses? You can carry over losses to the following year and owe up to $1110 less in taxes.
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Apr 11, 2022 14:11
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I used Credit Karma the last 2 years and was happy with it, and the free state filing was nice. When Turbotax bought Credit Karma, the tax filing platform was sold to Square, which was then rebranded Cash App taxes. Any thoughts on whether I should use it again? From reading the last few pages, the thread seems to recommend FreeTaxUSA.
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Apr 11, 2022 15:16
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TurboTax is telling me I can "save up to $1200 on my taxes right now by contributing to a traditional IRA by April 18, 2022." What's going on here? I don't necessarily trust TurboTax, but I sure would like to save $1200 on my gigantic tax bill. I got a new job in January that actually has a retirement benefit, but I have a Roth IRA and a 401k there, not a traditional IRA.
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Apr 11, 2022 18:10
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KOTEX GOD OF BLOOD posted:TurboTax is telling me I can "save up to $1200 on my taxes right now by contributing to a traditional IRA by April 18, 2022." What's going on here? I don't necessarily trust TurboTax, but I sure would like to save $1200 on my gigantic tax bill. I got a new job in January that actually has a retirement benefit, but I have a Roth IRA and a 401k there, not a traditional IRA. It's telling you that you may be able to make a tax deductible 2021 contribution to a traditional IRA. Depending on your income and whether you've made any contributions to your Roth IRA for 2021 this may be VERY NOT TRUE.
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Apr 11, 2022 18:41
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The one thing I'll give Turbotax in this scenario is it's not too difficult to just make up a number that you've "contributed" and see what it does to your taxes, before you go and actually make said contribution.
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Apr 11, 2022 19:13
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I have a friend that refuses to think about her taxes. This year, she moved from Colorado to Oregon while working with the same company, and has done work with 3 other companies on the side. 5 total forms, Is this something pretty easy to handle on freetaxusa? Is it just enter all forms (4x W2 & 1 1095-c) and go? She did receive moving expenses from her main job. Alternatively, how does one find a good tax service within a week of the deadline. Would she be able to file an extension to ease the pressure? Help me get out of doing them without just 
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Apr 12, 2022 10:52
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deong posted:I have a friend that refuses to think about her taxes. Email them the extension form and . 4x w-2 is a blessing - they probably don't have a bunch of 0 withholding. Hopefully every job was estimating them in their eventual agi tax bracket. They can just put 0 down for what they think they owe. It doesn't matter much if they're going to refuse to do it anyways. It's their problem not yours. Put it out of your mind.
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Apr 12, 2022 17:15
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The state taxes are the not fun part, since they are partial year returns and the consumer tax software often doesn’t support that.
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Apr 12, 2022 18:35
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So... In Freetaxusa's favor, they charged me $15 to file my federal and state taxes this year, compared to almost $170 for TaxAct last year. The bad news is that they don't support buying I-bonds with your return. I wasn't planning to max out my bonds this year anyway, but it's something to be aware of for the future.
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Apr 12, 2022 18:48
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Let's say A gifted B one Bitcoin back in 2014. Since then B has sold bits of it every year. Does B owe tax on these sales?
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Apr 13, 2022 02:09
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socketwrencher posted:Let's say A gifted B one Bitcoin back in 2014. Since then B has sold bits of it every year. Does B owe tax on these sales? On realized income? Yes. Of course. Being a buttcoin doesn't matter. You could replace this with anything like gold pieces, a silo of grain, a stamp collection........income is income. How it's treated may vary based on the type and how long it's held but those are details. It's still taxable income.
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Apr 13, 2022 02:50
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socketwrencher posted:Let's say A gifted B one Bitcoin back in 2014. Since then B has sold bits of it every year. Does B owe tax on these sales?
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Apr 13, 2022 03:04
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mystes posted:I'm imagining this hypothetical tax system where B gives A a bitcoin and A gives B a bitcoin and then they both magically never owe tax when they sell them I guarantee this exact scenario was dreamed up by some bitcoiners at some point and they tried it with the IRS.
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Apr 13, 2022 04:01
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mystes posted:I'm imagining this hypothetical tax system where B gives A a bitcoin and A gives B a bitcoin and then they both magically never owe tax when they sell them I'm pretty sure when you gift a Bitcoin, you immediately realize the gains on it in the same way as if you traded that Bitcoin for Litecoin or whatever.
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Apr 13, 2022 07:52
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KillHour posted:I'm pretty sure when you gift a Bitcoin, you immediately realize the gains on it in the same way as if you traded that Bitcoin for Litecoin or whatever.
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Apr 13, 2022 12:16
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It is not correct. It’s treated like any other gift - basis transfers to the donee
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Apr 13, 2022 13:48
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Huh good to know. Then I guess it would be a total wash regardless.
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Apr 13, 2022 15:53
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Thanks all, makes sense. Heard conflicting information from someone with an interest in wanting a different answer lol.
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Apr 13, 2022 19:56
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deong posted:I have a friend that refuses to think about her taxes. Being in a very similar situation, one thing I can offer is that CO telecommuting rules say they only charge you tax on Colorado income you earned while physically present in the state. So she needs to know that going in. After that, OR charges tax on every penny you earn no matter where or how, but then gives you a credit for tax liability to another state. The CO rules are funky because I telecommute but visit the home office for like 2 weeks a year, so I owe CO tax on those two weeks.
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Apr 13, 2022 20:30
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is it strange that the IRS refund site doesn't even say they have received my return, despite the fact that I mailed it in on February 7th? "You may not have entered your information correctly. Please verify your personal tax data and try again." maybe I had the refund amount wrong?
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Apr 13, 2022 21:45
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actionjackson posted:is it strange that the IRS refund site doesn't even say they have received my return, despite the fact that I mailed it in on February 7th? Mailed? Like paper? I would find a new hobby you're going to be waiting a LONG time. (Months at a minimum.)
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Apr 14, 2022 00:04
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H110Hawk posted:Mailed? Like paper? I would find a new hobby you're going to be waiting a LONG time. (Months at a minimum.)
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Apr 14, 2022 00:27
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H110Hawk posted:Mailed? Like paper? I would find a new hobby you're going to be waiting a LONG time. (Months at a minimum.) last year i did paper but I got my refund in march I think I only do paper because I don't qualify for the free e-file, and I find paying to file my taxes absurd interestingly enough my state (MN) was paper and I got my refund in only a few weeks
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Apr 14, 2022 03:53
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actionjackson posted:last year i did paper but I got my refund in march I think
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Apr 14, 2022 04:06
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Peyote Panda posted:The states are separate so they're not running into the same backlogs, at least not as a block (there might be individual states that are behind for all I know). My e-filed state tax refund was sent out two or three days after I filed that return. right. my only paranoia is if i simply forgot to send in my federal taxes (highly unlikely) I have no way of knowing if they simply received them or not. i'm pretty sure it's still just sitting in a pile somewhere, as their control center status page says they have finished all paper returns submitted prior to april...2021 lol
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Apr 14, 2022 04:14
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All paper returns have their data entry done by hand. The IRS does not use any scanning technology at all. Lol.
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Apr 14, 2022 04:21
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YanniRotten posted:It's telling you that you may be able to make a tax deductible 2021 contribution to a traditional IRA.
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Apr 14, 2022 16:13
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KOTEX GOD OF BLOOD posted:I mean, I think all of the contributions are for 2022 because I opened the Roth at my new job in February. If they are, should I open the traditional IRA to reduce my tax obligation? IRAs (Roth or traditional) aren't through employers. Whatever you've got at your new job isn't a Roth IRA. It might be a Roth 401k? You have to set IRAs up yourself, and if you haven't done that, you don't have one, so theoretically still can make contributions to one for 2021, but getting everything up and funded before Monday (the deadline for 2021 contributions) might not be possible because there isn't enough time. raminasi fucked around with this message at 16:26 on Apr 14, 2022 |
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Apr 14, 2022 16:23
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You're right, it's a Roth 401k. I'll look into whether I can set one up before Monday.
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Apr 14, 2022 17:06
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I contributed to my Roth IRA throughout 2021, but while going through our W2s and 1099-DIV statements for taxes it seems my wife and I filing jointly are above the MAGI threshold for being able to contribute to a Roth. I’ve already done some reading on the backdoor Roth, and my questions are: 1. I’ve recharacterized my 2021 contributions from my Vanguard Roth IRA to a Vanguard traditional IRA and then converted it back to my Roth. My understanding is that I need to report the contributions in section 1 of form 8606 for this tax year, but because the Roth conversion happened in 2022 I will report that in section 2 in next year’s return. Is that correct? 2. I’ve updated my withholding at work to no longer directly contribute to my Roth IRA, but I unfortunately already have some 2022 contributions in that I’d like to get out. Are there any penalties for performing another recharacterization on those 2022 contributions and then performing another Roth conversion in the next few days? It seems you can only do a Roth rollover once in a 12-month period, but multiple conversions might be OK?
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Apr 14, 2022 21:21
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actionjackson posted:last year i did paper but I got my refund in march I think Freetaxusa.com won’t charge you for a federal return at any income threshold just FYI. State return will have a fee but it’s probably still better than waiting a million years for a paper return to go through.
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Apr 14, 2022 22:37
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tumblr hype man posted:Freetaxusa.com won’t charge you for a federal return at any income threshold just FYI. State return will have a fee but it’s probably still better than waiting a million years for a paper return to go through. well as i mentioned, my state paper return only took two weeks for the refund. but i'll keep that other site in mind for next year
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Apr 14, 2022 22:52
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i sell used clothes. i spent about $750 on inventory in 2019. i sat on it for two years and in 2021 had about $1,000 of sales. i didn't report any inventory, or anything about this business, on my 2019 taxes because this was a business venture that didn't materialize in 2019 or 2020. however, it's a bona fide business now. i guess i should have reported this in 2019, so lay into me for not having foresight if you must. but now, do i report $750 of inventory on my 2021 taxes but $0 as my cost of purchases? when i tried this it seemed to cause some kind of error in turbotax, so i called the free tax advice hotline, and the rep (with 25 years of experience) told me "that's totally not a lot of money" and to deduct $750 as a materials expense to make it go away. i didn't take his advice (seemed shady?) and re-did everything and i seem to have cleared the error, but i'm still a little worried. so now i have $750 of inventory that materialized out of nothing? is this audit bait? is there any clean way for me to do this? if this makes zero sense feel free to lay into me for that as well.
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Apr 15, 2022 07:20
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Sorry if this is a dumb question, but it's not totally clear from your post: did you sell all $750 of the clothes? If so, you don't have any inventory. Inventory is unsold goods purchased for the purpose of selling in the future. If you sold the clothes, that's Cost of Goods Sold. Your Schedule C would look like this, assuming no other purchases or sales:  
Gabriel Grub fucked around with this message at 07:51 on Apr 15, 2022 |
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Apr 15, 2022 07:33
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It's amazing how we are paying over 20,000 a year for Ultratax but four days before the deadline it slows down to a crawl and won't work at all.
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Apr 15, 2022 15:11
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Covok posted:It's amazing how we are paying over 20,000 a year for Ultratax but four days before the deadline it slows down to a crawl and won't work at all. If it's a US centric product (or has mostly US users) just get in there at 2AM and ride the lightning.
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Apr 15, 2022 15:18
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