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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. It seems to be UltraTax's year to poo poo the bed. One year it was Axcess, another it was Lacerte, so I guess we were due. Missing Donut fucked around with this message at 15:39 on Apr 15, 2022 |
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Apr 15, 2022 15:34
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ChadSexington posted: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. Correct. For 2021 form 8606 will result in basis dollars that carry into the future (box 2 in 2022). In 2022 form 8606 will have (among other things, like non-zero box 2) a non-zero entry on line 8. ChadSexington posted: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? I have no idea. The way the rules are written and the tax forms filled out, only sums of money and calendar year seem to matter, not whether you do it a dollar at a time. E: It looks like you can do it as often as you want. The publications say the 1-year waiting rule doesn't apply to trad->roth conversions. https://www.irs.gov/publications/p590a#en_US_2021_publink1000231029 Boot and Rally fucked around with this message at 15:51 on Apr 15, 2022 |
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Apr 15, 2022 15:45
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actionjackson posted:last year i did paper but I got my refund in march I think The IRS offers Free Fillable Forms that everyone can use, but they don't have every single form. If you don't care if tax websites harvest your data, fill out the forms using their software, save them for your record (but don't submit) then manually copy the data to Free Fillable Forms. They are (purposefully) less user friendly, but they process quickly and you get notification of it being received and later accepted.
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Apr 15, 2022 16:01
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Missing Donut posted:It seems to be UltraTax's year to poo poo the bed. One year it was Axcess, another it was Lacerte, so I guess we were due. I am just glad I stuck firm with my cutoff date. Everyone here knows they might go on extension.
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Apr 15, 2022 16:08
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Gabriel Grub posted: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. Ok, this is starting to make a little more sense. I still have a lot of inventory, although I didn’t buy any new inventory in 2021. The stuff I sold in 2021 cost me about $100 in 2019. But here’s how I’m trying to enter it in turbo tax Add the inventory expense category  Next I enter the cost of my inventory at the end of 2021 ($750-100=650). And it won’t let me add inventory at the beginning of the year. I assume because I am claiming to have started this business in 2021?  Then I have to enter zero for all these spaces? Because I didn’t actually buy this stuff in 2021, it was all from 2019 (which wasn’t reported on my taxes)  At the end of this, TurboTax won’t add the expense and my screen still looks like this... Part of the difficulty of this is I can’t really see where turbo tax is putting these numbers on each schedule. Maybe I’ll try to call the hotline again. The last guy was not very helpful.
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Apr 15, 2022 18:19
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Just put $750 as your purchases and $650 as your ending inventory, this is not a big deal.
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Apr 15, 2022 18:23
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As an aside I asked our accountant at my main job about this and he said he would just leave everything’s off his taxes so as to not trigger an audit. Too bad I don’t have a choice because PayPal already filed a 1099-K form with the IRS...
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Apr 15, 2022 18:24
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Epi Lepi posted:Just put $750 as your purchases and $650 as your ending inventory, this is not a big deal. Ok, this is what I think I’m gonna do
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Apr 15, 2022 18:25
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Missing Donut posted:It seems to be UltraTax's year to poo poo the bed. One year it was Axcess, another it was Lacerte, so I guess we were due. Did the IRS give any relief when those happened?
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Apr 15, 2022 18:36
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uncloudy day posted:As an aside I asked our accountant at my main job about this and he said he would just leave everything’s off his taxes so as to not trigger an audit. Too bad I don’t have a choice because PayPal already filed a 1099-K form with the IRS... It sounds like you have a better understanding of our tax system than the accountant you talked to. Covok posted:Did the IRS give any relief when those happened? Yes, to both. I think they allowed "late filed" extensions to be considered on time. I don't remember if the IRS was able to prevent notices from going out, though.
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Apr 15, 2022 19:53
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I became a US tax resident on December 1 2021. Prior to that I earned regular Canadian income. Do I need to report to the IRS my Canadian income from prior to December 1 on form 2555? This so loving dumb.
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Apr 15, 2022 22:31
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Missing Donut posted:It sounds like you have a better understanding of our tax system than the accountant you talked to. I am just doing all the extensions now. Like it's working well enough after hours and NY lets personal extensions without payment process. I am just going to get them in as a safety measure and work like hell tomorrow to get it all done. If they traditionally owe money, I'll call for payment but this is full damage control mode.
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Apr 15, 2022 22:48
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uncloudy day posted:As an aside I asked our accountant at my main job about this and he said he would just leave everything’s off his taxes so as to not trigger an audit. Too bad I don’t have a choice because PayPal already filed a 1099-K form with the IRS... Your main job needs to replace their accountant and perform an internal audit for his time with the company.
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Apr 15, 2022 22:56
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Covok posted:I am just doing all the extensions now. Like it's working well enough after hours and NY lets personal extensions without payment process. I am just going to get them in as a safety measure and work like hell tomorrow to get it all done. My old accountant used to mail merge out extensions for his entire client list from the prior year as soon as the form was available in whatever he was using. I found out when I called him in early april because some form still hadn't come in (K-1 I think) "Oh yeah I extended everyone in late January don't worry about it." I assume he just put 0 down as amount expected to owe. A+ accountant, sad I moved away.
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Apr 15, 2022 23:21
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H110Hawk posted:My old accountant used to mail merge out extensions for his entire client list from the prior year as soon as the form was available in whatever he was using. I found out when I called him in early april because some form still hadn't come in (K-1 I think) "Oh yeah I extended everyone in late January don't worry about it." I assume he just put 0 down as amount expected to owe. A+ accountant, sad I moved away. 
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Apr 16, 2022 02:31
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Covok posted:I am just doing all the extensions now. Like it's working well enough after hours and NY lets personal extensions without payment process. I am just going to get them in as a safety measure and work like hell tomorrow to get it all done. Are you going through each one to add the driver's license manually? Or marking them "no id" manually? I've wanted to do the "put everyone on extension early in the season" move but the NYS dumb rules about DL's and not letting the software automatically pull the previous years DL have thwarted me.
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Apr 16, 2022 04:42
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Alright, time to figure out why my IRAs are hosed up on my returns again. After putting my W2 into FreeTaxUSA, I have a ~1500 federal refund. Then after putting the following 1099-R in, I owe 1500.  After putting in what I thought were the correct answers to the IRA crap, it says I now only have a $15 refund, which is obviously wrong because the backdoor shouldn't have impacted me at all. Here are the relevant parts from last year's tax returns:    Here is my Dec '21 Vanguard Roth statement:   I don't have a traditional statement for the end of the year because I backdoored it all (once in early 2021 for the 2020 tax year and once in mid 2021 for the 2021 tax year), but I can post the statements from the months of conversion if needed. Here's what I put into FreeTaxUSA that is obviously wrong:      Please, oh wise goons, tell me where I hosed up the magical tax incantations and how to fix it. Edit: I realized the "Enter the amount, if any, of your contributions to a traditional IRA for 2021 that were actually made from January 1, 2022 through April 18, 2022:" field is wrong and should be $0, because it's there to calculate basis for next year, but changing it didn't fix it. Double edit: I had to wait until I got to my deductions section after the part where you decide to itemize or not to enter in my $6k of traditional IRA contributions, which fixed it  I'd appreciate if someone can just do a quick look over and make sure I'm doing it right though. Triple Edit OMG: Here's the actual tax document output for it. I think this is correct, but I'm also stupid.   KillHour fucked around with this message at 18:55 on Apr 16, 2022 |
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Apr 16, 2022 18:25
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Methanar posted:I became a US tax resident on December 1 2021. Prior to that I earned regular Canadian income. You may not need to, assuming you are not a US citizen. Residency start date is usually the first date you are present in the US. You'd file a partial year resident return, assuming the first day you were present in thr US in 2021 was Dec 1. See https://www.irs.gov/individuals/int...current%20year. If you are a US citizen, then you file a full year 1040 as always and claim the FEIE or FTC for your wages in Canada.
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Apr 16, 2022 19:45
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I actually have a more pressing issue (in that I don't know how to handle it) in relation to my SO's tax returns. She lives (and works from home) in NYS (Buffalo) and her company's office is in NJ. My understanding is that since she has never set foot in that office, the wages should be reported as NY wages and not NJ wages. However, on her W2, the wages are reported as BOTH NY wages AND NJ wages. This is obviously not right. Free Tax USA says "The amount of New Jersey wages shown in Box 16 of your Form W-2(s) is $11,250. This is probably the amount to enter as the New Jersey amount of your wages unless your employer didn't put the right amount of New Jersey wages in Box 16 of your Form W-2(s)." Should I just put 0 for the New Jersey wages? I found this online that seems to say yes (She started working there in November of 2021) https://www.state.nj.us/treasury/taxation/covid19-payroll.shtml quote:End of Temporary Suspension of Employer Withholding Rules for Teleworking Employees Does she have to yell at her workplace to issue corrected W2s for this?
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Apr 16, 2022 20:06
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PatMarshall posted:You may not need to, assuming you are not a US citizen. Residency start date is usually the first date you are present in the US. You'd file a partial year resident return, assuming the first day you were present in thr US in 2021 was Dec 1. See https://www.irs.gov/individuals/int...current%20year. I am not a US citizen. I entered the US on a TN work permit. I fail both the substantial presence and green card tests
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Apr 16, 2022 20:10
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KillHour posted:I actually have a more pressing issue (in that I don't know how to handle it) in relation to my SO's tax returns. She lives (and works from home) in NYS (Buffalo) and her company's office is in NJ. My understanding is that since she has never set foot in that office, the wages should be reported as NY wages and not NJ wages. However, on her W2, the wages are reported as BOTH NY wages AND NJ wages. This is obviously not right. Free Tax USA says "The amount of New Jersey wages shown in Box 16 of your Form W-2(s) is $11,250. This is probably the amount to enter as the New Jersey amount of your wages unless your employer didn't put the right amount of New Jersey wages in Box 16 of your Form W-2(s)." Same amount of wages for both states? Withholding for both states? What exactly is on the W-2? Regardless, try filing a non-resident NJ return and making sure that Free Tax USA is calculating the Resident credit on the NY return to give you a credit to NY for taxes paid to NJ.
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Apr 16, 2022 20:28
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Epi Lepi posted:Same amount of wages for both states? Withholding for both states? What exactly is on the W-2?  They listed the same amount of wages for both states but the withholding is different. I added a non-resident NJ return in Free Tax USA and it's asking me how much wages are NJ wages. She only started in November so the amounts are low, but NY says she owes them 400. NJ says they owe her 460 if I put 0 for NJ wages and 50 if I put the full amount as NJ wages. Either way, it doesn't change what the site says she owes NY, so something isn't right here. I used to work remotely for a company whose offices were in NJ and I never had NJ taxes withheld or received a NJ state W-2. I assume it should be the same here. Edit: To be clear, all work was performed in NY. She hasn't set foot in NJ since she started working there. KillHour fucked around with this message at 20:38 on Apr 16, 2022 |
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Apr 16, 2022 20:34
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Methanar posted:I am not a US citizen. I entered the US on a TN work permit. Ah OK, you may not be a resident for tax purposes for 2021 and you may need to file a 1040NR for 2021 as a nonresident to report your US wages. Presumably next year you'd file a full year resident return for 2022 if you are in the US for the whole year.
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Apr 16, 2022 21:17
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PatMarshall posted:Ah OK, you may not be a resident for tax purposes for 2021 and you may need to file a 1040NR for 2021 as a nonresident to report your US wages. Presumably next year you'd file a full year resident return for 2022 if you are in the US for the whole year. Okay after looking over the criteria, it certainly seems like the most appropriate form for me. That helps a lot and saves me a ton of trouble. Whatever. I'm sure the government will tell me if they disagree later. Sick of worrying about it.
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Apr 16, 2022 22:13
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What triggers wanting to file "married, filling seperately"? If my wife has an LLC solely owned by her, and I have an LLC solely owned by me, do we want to file separately
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Apr 17, 2022 03:30
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KillHour posted:
Your wife seems to be in the unfortunate position where she had taxes withheld to a state she doesn't actually owe, so she has to pay the taxes she owes to NY and then wait on the refund from NJ. Yes, during that time period before the refund comes in, your wife will technically have been double taxed on that income. NY would give a credit for taxes paid to another state that your wife actually owes, but in your wife's case, she supposed to get that money back from NJ. That is, if NY gave your wife credit for the $460, and then she got the $460 back from NJ too, your wife would have gained $460 instead of zeroing out. Going forward it probably will involve yelling at her employer to stop withholding for NJ if she never works there.
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Apr 17, 2022 03:37
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Ancillary Character posted:Your wife seems to be in the unfortunate position where she had taxes withheld to a state she doesn't actually owe, so she has to pay the taxes she owes to NY and then wait on the refund from NJ. Yes, during that time period before the refund comes in, your wife will technically have been double taxed on that income. NY would give a credit for taxes paid to another state that your wife actually owes, but in your wife's case, she supposed to get that money back from NJ. That is, if NY gave your wife credit for the $460, and then she got the $460 back from NJ too, your wife would have gained $460 instead of zeroing out. Don’t overcomplicate it, NY will not give a credit if NJ is giving a refund. File the nonresident NJ return. Pay the $400. Get $400 as a credit on your NY return. You are whole without having to send a check to NYS. Christ guys it’s $14k of income don’t do things the hard way.
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Apr 17, 2022 05:27
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Hadlock posted:What triggers wanting to file "married, filling seperately"? I practice in a community property state, so I see it primarily when a marriage is dissolving and the couple has separated. In non-community property states, I am aware that sometimes income-based student loan payments combined with loan forgiveness provisions can make the tax disadvantages make sense, or certain weird tax interactions and/or state law goofiness can make filing separately the right choice. The only surefire way to tell, that I know of, that separate filing is best is to prepare the return each way and to be very suspicious and double-check the results when separate filing has a tax advantage.
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Apr 17, 2022 05:31
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Epi Lepi posted:Don’t overcomplicate it, NY will not give a credit if NJ is giving a refund. File the nonresident NJ return. Pay the $400. Get $400 as a credit on your NY return. You are whole without having to send a check to NYS. Why wouldn't she just put that she owes NJ 0 but still file the return to NJ so they give her the 400 back? That seems to me what should have happened anyways. I know that she will have to write a $400 check to NY for a few weeks while NJ processes the refund, but that's not a big deal for us. Edit: What I'm more worried about is NY and/or NJ deciding to do the Spanish inquision on us because they want that $400 and it ending up costing us a bunch of time and/or money to resolve. Like is NJ just going to say "Oh we see you claim you didn't make any money in NJ even though your employer told us you did cool here's your money back" or are they going to try to audit us? KillHour fucked around with this message at 05:38 on Apr 17, 2022 |
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Apr 17, 2022 05:34
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KillHour posted:Why wouldn't she just put that she owes NJ 0 but still file the return to NJ so they give her the 400 back? That seems to me what should have happened anyways. If you put 0 down as your NJ income when the W-2 says $14K you are way more likely(not guaranteed) to get a letter sometime in the future from NJ asking for taxes owed. The NY Resident credit means that everyone will be happy, NJ gets their tax, NY sees you paid NJ and gives you a credit for what they paid, and you get the same total refund but without having to payout while waiting for a check to come in to reimburse you.
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Apr 17, 2022 06:16
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Epi Lepi posted:If you put 0 down as your NJ income when the W-2 says $14K you are way more likely(not guaranteed) to get a letter sometime in the future from NJ asking for taxes owed. The NY Resident credit means that everyone will be happy, NJ gets their tax, NY sees you paid NJ and gives you a credit for what they paid, and you get the same total refund but without having to payout while waiting for a check to come in to reimburse you. Any idea how to fill out the forms in Free Tax USA to do this properly?
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Apr 17, 2022 06:37
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Hadlock posted:What triggers wanting to file "married, filling seperately"? Married Filing Separate is usually a net loss of a filing status compared to joint that you do because of other circumstances. Like if one of you have massive student loans the loan company will use the total income from a joint return to calculate the payment amount so filing separate can reduce that amount. Protecting the refund of one spouse from other types of debts like child support for the other spouse is another example. You having LLC's doesn't necessarily mean you want to file separately. The LLC's themselves are supposed to provide legal protection and separation, that's the point of them, though depending on various circumstances that protective shield can be pierced. If you want to completely separate yourselves financially, that could be a reason to file separate. Maybe your LLC is further along in it's life cycle and earning much more income and you want to go for funding that requires a loan approval and her LLC is still in the hemorrhaging money to get going stage and you don't want to have her negatively impact you getting the loan. You can spend the effort and see how you look filing both ways but more often not it's not tax savings that will cause a couple to file separate.
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Apr 17, 2022 06:40
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KillHour posted:Any idea how to fill out the forms in Free Tax USA to do this properly? Unfortunately no, I'm a CPA who pays tens of thousands per year on tax software, I've never used Free Tax USA.
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Apr 17, 2022 06:41
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I'm trying to figure out my "total basis in traditional IRAs for 2020 and earlier years". I had a 403b with a previous employer that I rolled over into a traditional IRA when I changed jobs in 2017. On FreeTax, they are asking me "Enter Bort's total basis in traditional IRAs for 2020 and earlier years:" - am I correct that because the 403b was a tax-deferred account, I have no 'basis" in this account (no contributions on which I have already paid tax)? Then they ask me "Enter the value of all Bort's traditional, SEP, and SIMPLE IRAs as of December 31, 2021:" - am I inputting the total value of that rollover IRA here (I don't have any other traditional IRAs), including interest, dividends, etc?
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Apr 17, 2022 14:30
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If one's itemized deductions for this year are substantially lower than prior years does that create an audit risk? Basically, if you no longer trust your prior accountant and are using someone different who is more conservative?
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Apr 17, 2022 15:24
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Turds in magma posted:I'm trying to figure out my "total basis in traditional IRAs for 2020 and earlier years". This sounds right to me. (NOT A TAX PROFESSIONAL) The instructions for form 8606 Line 2 say "You rolled over any nontaxable portion of your qualified retirement plan to a traditional, SEP, or SIMPLE IRA that wasn’t previously reported on Form 8606, line 2. Include the nontaxable portion on line 2." I believe the distinction is very subtly IRS. The amount in retirement plans can be tax deferred (not paid taxes yet) or nontaxable (already paid taxes on it). If you rolled over money from a Roth 401k to a Trad IRA, some or all of that money would be nontaxable because taxes were already paid. Turds in magma posted:Then they ask me "Enter the value of all Bort's traditional, SEP, and SIMPLE IRAs as of December 31, 2021:" - am I inputting the total value of that rollover IRA here (I don't have any other traditional IRAs), including interest, dividends, etc? Yes. All money that was in the account as of that day goes in the box. As near as I can tell, since you have no basis all your money in the Trad IRA is tax deferred (basis of 0) so the tax software will do nothing with this information.
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Apr 17, 2022 15:55
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Boot and Rally posted:This sounds right to me. (NOT A TAX PROFESSIONAL) The instructions for form 8606 Line 2 say "You rolled over any nontaxable portion of your qualified retirement plan to a traditional, SEP, or SIMPLE IRA that wasn’t previously reported on Form 8606, line 2. Include the nontaxable portion on line 2." The complicating factor is that I did a traditional -> Roth IRA conversion and so I'm getting dinged with the pro rata rule. That's why the number is important. I didn't really figure this out correctly last spring when I did this. Is there a way to get rid of my rollover IRA, like can I somehow roll it into the new 403b that I have at my new employer? Turds in magma fucked around with this message at 19:39 on Apr 17, 2022 |
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Apr 17, 2022 19:14
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Turds in magma posted:The complicating factor is that I did a traditional -> Roth IRA conversion and so I'm getting dinged with the pro rata rule. That's why the number is important. Ah yeah, if you have mixed deductible and nondeductible money then Form 8606 is going to result in paying taxes on backdoor conversions. Trying to untangle that is going to require a real tax specialist, not some jerk on the internet. From what I gather, rolling tax deferred money out of the trad IRA and into a new 403b is the way to go. I have no idea how to do that. Boot and Rally fucked around with this message at 22:39 on Apr 17, 2022 |
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Apr 17, 2022 22:33
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Boot and Rally posted:Ah yeah, if you have mixed deductible and nondeductible money then Form 8606 is going to result in paying taxes on backdoor conversions. Trying to untangle that is going to require a real tax specialist, not some jerk on the internet. From what I gather, rolling tax deferred money out of the trad IRA and into a new 403b is the way to go. I have no idea how to do that. Thanks, I'll have to get a professional to sort this mess out. Regarding the tax I paid because of pro rata: I guess I now have around $4,800 of "after-tax" income in my rollover IRA because that's the fraction that was left behind but that I had to pay tax on. How does that work? I just keep track of that $4,800 as my "basis" in that account and it doesn't count for future pro-rata calculations? Does it sit fixed at $4,800 until retirement, or does it accrue interest/gains like the rest of the money in the account?
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Apr 17, 2022 23:06
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Chewbacca Defense posted:If one's itemized deductions for this year are substantially lower than prior years does that create an audit risk? Basically, if you no longer trust your prior accountant and are using someone different who is more conservative? Little late to worry about this now unless you are asking should you use the prior accountant again.
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Apr 18, 2022 00:13
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