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Checked the website and it does definitely say I have a balance of $1,656.46. I still don't really understand how that's possible, though, unless it was something with the way I filed my oregon taxes, it's entirely possible I hosed up. I feel like they would have caught something like that though? idk I'll have to call them tomorrow and just devote most of my day to it. I never received a 2021 stimulus check, do you think that's somehow related?
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Jun 14, 2022 10:38
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Thumbtacks posted:Checked the website and it does definitely say I have a balance of $1,656.46. I still don't really understand how that's possible, though, unless it was something with the way I filed my oregon taxes, it's entirely possible I hosed up. I feel like they would have caught something like that though? idk I'll have to call them tomorrow and just devote most of my day to it. And FWIW there shouldn't be any issues on your federal return related to your state filing as they are completely separate entities. One other thing, if you're set up to check your balance online you may also be able to order a return transcript (go to the "Get your tax record" option on IRS.GOV) that would show any changes made to your return in processing. You should have also gotten a CP11 notice if that was the case but sometimes things get lost in the mail. Peyote Panda fucked around with this message at 16:49 on Jun 14, 2022 |
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Jun 14, 2022 16:45
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Aquila posted:Same question, except form CP2000 and $45,000. I'm pretty sure it's income reported as both W2 and 1099B. I'm working on finding a CPA or tax specialist now to straighten things out. Is there any way to pick a good local tax person besides asking if they have direct experience with this specific problem? I will say most of the people working right now should be "good" at dealing with a CP2000 because that sort of thing makes up the majority of off-season work around this time in my experience. Usually the CP2000 will show the differences between the reported return and what they have which should say what the issue is (usually page 2-3); you can then ask on the phone if the tax person can handle that issue. I'd offer to glance at it but can't think of a safe way for you to send it to me unfortunately. I would say if it is a W-2/1099B mix-up, that doesn't feel like a horribly difficult thing to assess; is it in relation to stock options? The 1099B frequently has a "supplement" page to show the adjusted basis after exercising the option for calculating the capital gains; if that wasn't reported right the IRS might treat it as zero basis which could certainly generate that kind of ridiculous bill. Thumbtacks posted:I never received a 2021 stimulus check, do you think that's somehow related? If you claimed the $1400 they owed you as a recovery rebate credit on your return, they might say you got the money based on their records (accurate or not) and subtract it from the return. I admit -$1400 + penalty/interest does seem like a likely culprit for the balance you show; look for the return transcript as mentioned and see if they have a different number on line 30 of the 1040, if you had $1400 and they have a zero, that would be the problem.
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Jun 15, 2022 03:03
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MadDogMike posted:I will say most of the people working right now should be "good" at dealing with a CP2000 because that sort of thing makes up the majority of off-season work around this time in my experience. Usually the CP2000 will show the differences between the reported return and what they have which should say what the issue is (usually page 2-3); you can then ask on the phone if the tax person can handle that issue. I'd offer to glance at it but can't think of a safe way for you to send it to me unfortunately. I would say if it is a W-2/1099B mix-up, that doesn't feel like a horribly difficult thing to assess; is it in relation to stock options? The 1099B frequently has a "supplement" page to show the adjusted basis after exercising the option for calculating the capital gains; if that wasn't reported right the IRS might treat it as zero basis which could certainly generate that kind of ridiculous bill. Nope, 0 on both counts. Still kinda weird, the only thing that looks vaguely like a possible culprit is "excess advance premium tax credit repayment" which is like $80 off from the total amount I apparently owe. No idea what the hell that is.
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Jun 15, 2022 05:27
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MadDogMike posted:I will say most of the people working right now should be "good" at dealing with a CP2000 because that sort of thing makes up the majority of off-season work around this time in my experience. Usually the CP2000 will show the differences between the reported return and what they have which should say what the issue is (usually page 2-3); you can then ask on the phone if the tax person can handle that issue. I'd offer to glance at it but can't think of a safe way for you to send it to me unfortunately. I would say if it is a W-2/1099B mix-up, that doesn't feel like a horribly difficult thing to assess; is it in relation to stock options? The 1099B frequently has a "supplement" page to show the adjusted basis after exercising the option for calculating the capital gains; if that wasn't reported right the IRS might treat it as zero basis which could certainly generate that kind of ridiculous bill. Followup: I called the four closest tax/cpa hits on yelp, one returned my call, seemed to have some understanding of stock option issues, said it would be 2-3 hours minimum, $170/hour. They have a "secure" file upload site of some sort, works for me.
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Jun 15, 2022 05:33
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Aquila posted:Followup: I called the four closest tax/cpa hits on yelp, one returned my call, seemed to have some understanding of stock option issues, said it would be 2-3 hours minimum, $170/hour. They have a "secure" file upload site of some sort, works for me. I got to loving raise my fees.
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Jun 16, 2022 00:46
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Thumbtacks posted:Nope, 0 on both counts. Still kinda weird, the only thing that looks vaguely like a possible culprit is "excess advance premium tax credit repayment" which is like $80 off from the total amount I apparently owe. No idea what the hell that is. When you files your taxes each year you reconcile the actual Premium Tax Credit (PTC) you ere eligible for with the amount that was paid out as an advance toward reducing your health insurance premiums. If your actual income is the same or very close to what you estimated , those figures should even out. If your income is lower than that estimate you could be eligible for more of a PTC than you received in APTC, in which case you might get a slightly higher refund, or if your income was more than the estimate then you may have gotten more of the APTC then you were actually eligible for and will then be required to pay the difference back on your taxes (subject to some limitations). That's supposed to be reconciled on the form 8962 filed with the return, which helps you calculate the difference if any between the PTC and APTC and whether it evens out, gives you additional tax credit or add to your tax balance. That number is supposed to then be carried over and included in the overall calculations on the 1040 but if that wasn't done correctly or there was an error in the calculations on the 8962 that might have resulted in an additional tax balance.
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Jun 16, 2022 01:13
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Peyote Panda posted:If you get health insurance through a healthcare marketplace, your premiums are subsidized with an Advance Premium Tax Credit (APTC). The marketplace estimates how much of a credit you are eligible for based on the income you report to them at the time you get the insurance. I did it through like efile.com (and idk if i will again, it's kind of annoying to navigate) so I have no idea if I even filled out an 8962, but I'm betting that's the problem area because the only thing new in my financial situation was our medical insurance. I will bring that up when I call the IRS tomorrow and see if that somehow helps.
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Jun 16, 2022 01:23
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Going to call my tax guy on Tuesday since he hasn't replied to my email. Meanwhile, help me tax goons!? I've done some research but still aren't sure what I'm looking at. I am a US Tax Resident. I'm looking at investing into a private business in Japan that runs alcohol importing, B2B sales, and direct sales through a few bars in Japan. The other shareholders will primarily be other U.S. citizens (>50%), and I am thinking of investing an amount that might place me in a >=10% ownership (although if it's a major difference in tax filings I may stay below this number). One thing I want to do is make sure I'm not walking into a minefield with taxes on the US side. Can you give me an idea of what filing/records burdens may look like? I am not expecting to receive any dividends from the equity portion in the first few years, although this investment would also be accompanied by a separate bond purchase (2% annual yield w/ 10 year maturity) which I will of course be claiming under whatever schedule is appropriate on the US side if I go forward with this. Edit: Hoping it is "dead simple, just keep minimal basic records" but will accept whatever reality of it. Spaceguns fucked around with this message at 12:00 on Jun 17, 2022 |
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Jun 17, 2022 11:57
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It's very simple. You pay me thousands of dollars per year to file your Form 5471. Because Japan is a high tax country, you probably don't have to worry about GILTY . Say hi to Todd for me.
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Jun 17, 2022 17:51
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Haha yes, I would be happy to help for the low, low fee of 750 an hour. It's not the end of the world, but as Gabriel notes, you are looking at a 5471, maybe 8938 and FBAR, potentially a GILTI high-tax election or 962 election, 1116 for any withholding on the bond, maybe a residency certificate for the bond issuer to claim the treaty rate on interest withholding from Japan. Dividends would presumably be QDI (likely no PTEP if you make the high-tax election, so dividends would be taxable) at rates up to 20% plus 3.8% net investment income tax (depends on your bracket). State taxes on GILTI are tricky, but most start from fed, so if you exclude under the high-tax election, you may not have State tax until a dividend is paid. This can vary.
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Jun 17, 2022 18:00
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I got a letter from the IRS, which I would like to reply to. It is from Kansas city, but I am in Alaska so would normally correspond to Ogden UT. Should I reply to Kansas City, or Ogden, or both?
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Jun 17, 2022 18:20
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Epitope posted:I got a letter from the IRS, which I would like to reply to. It is from Kansas city, but I am in Alaska so would normally correspond to Ogden UT. Should I reply to Kansas City, or Ogden, or both? The letter should give you a specific address to respond to.
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Jun 17, 2022 19:04
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And, to be clear, the location that processes your tax return or payments is not necessarily the location that may handle issues or audits. Go with what the letter says to do.
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Jun 17, 2022 19:08
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Much appreciated. The reason I wondered was there is clearly an error somewhere (someone else's name, my ID number) so didn't know if I should be going to home base. Obviously concerned about identity theft type stuff
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Jun 17, 2022 19:14
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I'm just thinking about taxes next year. This year I had a medical issue and my family got my a significant amount via GoFundMe. It was way more than I needed, spent ≈1/2 on medical expanses and the rest is sitting there for now. My general question is how does this apply to my taxes (US and Wisconsin)? If I end up returning/donating the money I didn't spend, could that be deducted? Are there other questions I should think about? I mean, I have half a year before I really have to worry about this, but would like to know if I need to take care of something in the next few months.
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Jun 18, 2022 01:15
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Gabriel Grub posted:It's very simple. You pay me thousands of dollars per year to file your Form 5471. Because Japan is a high tax country, you probably don't have to worry about GILTY . Will do  Also will keep you in mind, I already have a tax guy though and always happy to pay for professional services and pay taxes I owe, it's the price of civilization. I just like doing it without overcomplicating things and requiring the minimum amount of time on my end.1. From what I'm reading if I'm coming in <10% ownership it looks like the 5471 goes away, and most of the data looks like it could be shared between all the filers (knock it out once, share with everyone filing). 2. Not important but personally curious. For the purposes of financial accounting how the hell is "Goodwill" quantified? Not applicable to this situation but I saw it on the 5471 and it seems odd to financially quantify that? Form 5471 Schedule F 12a.
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Jun 18, 2022 01:30
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Uthor posted:I'm just thinking about taxes next year. These are gifts and generally not subject to income tax
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Jun 18, 2022 03:12
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Spaceguns posted:Will do https://en.m.wikipedia.org/wiki/Special:MobileDiff/1071162583 When you buy a business for more than the value of its assets the remainder is marked as goodwill on your books. Gotta balance the books.
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Jun 18, 2022 03:23
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Uthor posted:I'm just thinking about taxes next year. Elephanthead posted:These are gifts and generally not subject to income tax It might be wise to save copies of everything that shows the purpose and amount of these donations, in case an audit comes around years later. Don't rely on GoFundMe pages and records being static. Save them, and anything else that would be useful convincing someone skeptical of the money's background.
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Jun 19, 2022 23:01
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incogneato posted:It might be wise to save copies of everything that shows the purpose and amount of these donations, in case an audit comes around years later. Don't rely on GoFundMe pages and records being static. Save them, and anything else that would be useful convincing someone skeptical of the money's background. Thanks. This was the first time I expanded that and saw how much individual people gave and some made me gasp.
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Jun 20, 2022 00:11
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Is there a way to see what kind of credits you get for paying taxes in another state? I'm looking at remote jobs, I live in NC, and will be getting another job elsewhere (most likely). I'm getting an interview in CA, and may or may not work for a company there. From my understanding is I'm a resident in NC, and will pay CA taxes first, then there is potentially a credit for NC. So if I make 100k (nice even round number): CA taxes are (approximately) 9.81% NC taxes are (approximately) 5.25% So I will pay the 9.81 for CA, then get credited out for NC, but is there a limit? Is there a place I can get those numbers (namely for NC since that is my resident state)? I've been looking at the NCDOR Website, and well, after a while kind of go cross-eyed.
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Jun 26, 2022 15:10
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I’ve always paid taxes for the state that I lived in. I’ve worked remote for companies in multiple states and as long as you get setup properly in their payroll system it shouldn’t be an issue.
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Jun 26, 2022 15:27
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It's a big headache if the company in question doesn't have a presence in your state. For remote work, is it even legal for them to tax you out of the state where they are located? (My understanding and a quick google search suggests it is not.) I really wish Congress would do something about it honestly. Small White Dragon fucked around with this message at 23:17 on Jun 26, 2022 |
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Jun 26, 2022 23:12
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Small White Dragon posted:It's a big headache if the company in question doesn't have a presence in your state. For remote work, is it even legal for them to tax you out of the state where they are located? (My understanding and a quick google search suggests it is not.) I may be misinterpreting your statement, but nexus can be a mess. There is no universal standard of nexus for all states. The state you live in will always have a right to your income. Only state I found that doesn't do that either has a treaty with the state you are remoting with to not double tax or doesn't tax income anyway. If you work remotely, many states have begun to say that the office you are considered to work in can give you nexus. If you live in state A and you are considered to work in state B, some states have argued you have nexus with their state. I haven't done income tax in a while since 4/18 and it's a Sunday and I did some pregamming for a wrestling PPV but iirc there was a big law suit in my tristate area over it. Or at least someone threatened one. I don't pretend to know the interaction of 50 states too off the top of my head so some states may even be holding firm on it while others waived.
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Jun 27, 2022 00:07
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Gothmog1065 posted:Is there a way to see what kind of credits you get for paying taxes in another state? I'm looking at remote jobs, I live in NC, and will be getting another job elsewhere (most likely). There’s no limit on the amount of credit per se, but remember it only applies to income associated with California. So anything like interest or dividends or similar investment income is only taxable in your residential state and won’t be considered (at least directly) in your CA taxable income. As a corollary, that means you may owe tax in NC because those things are taxed there and don’t get the CA credit for them, and you won’t have any withholding for NC from your paycheck unless you ask (and your company’s payroll department can do it, many payroll systems screw this sort of thing up…). For testing the calculations, North Carolina uses Form D-400TC to calculate the credit, use that to check your math.
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Jun 27, 2022 18:18
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We recently did this Wife paid CA state tax for income made there for most of 2021 Wife paid NC State tax for income made there end of 2021 No credits, at least that I'm aware of If you didn't update your HR info when you move, then it's possible you paid tax to the wrong state I forgot to update my work tax status when I moved from CA to NC in February, so our tax guy will probably have to leverage the tax credit thing you're referencing for ~45 days of taxable income, but in your case won't apply, probably (I'm not a tax nerd like these other guys) Double edit: pretty sure NC taxes are 4.99% now but I could be wrong v either way they're about half that of California Hadlock fucked around with this message at 22:34 on Jun 27, 2022 |
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Jun 27, 2022 22:30
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How do EINs work? If there is an EIN that is different by a single digit, what would that mean? e.g. 11-1211111 vs 11-1411111
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Jun 28, 2022 01:48
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Epitope posted:How do EINs work? If there is an EIN that is different by a single digit, what would that mean? e.g. What's the context? It's basically a whole nother entity. If your business is 11-1211111 and you're making FTDs to 11-1411111 it's going to be a huge PITA to untangle it. If it's just like a typo on your w-2 data it's probably nbd.
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Jun 28, 2022 04:16
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It's the letter I mentioned a week or so ago. I originally didn't notice the number was a different number. So it's some other human's name, but our company name, but the ein is slightly different than our company. The guy at the local irs office didn't offer too many clues. Will the accountant who does the books know anything? Typing that out I have a theory. Someone on our end must have made a typo in the ein at some point. That got this other guy's business tied to us. Epitope fucked around with this message at 04:54 on Jun 28, 2022 |
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Jun 28, 2022 04:51
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the IRS has finally started processing my paper return (basic 1040) that i sent in on jan 30
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Jun 28, 2022 18:23
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I am starting a small business as a sole employee manufacturing a specific product for one company. I visited my tax professional today and they went over the basics of what I need to keep track of to make tax preparation easier. They said to sort expenses into different categories. My categories are pretty simple: Tools, Materials, Cleaning supplies, Office supplies. Lets say I'm a woodworker and I buy some lumber to build some sawhorses. Would that lumber go into the category of materials since it is a raw material, or under tools as the end result of that lumber is to make a tool that will be used to construct the final product?
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Jun 28, 2022 23:04
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Unless the product you're selling is the sawhorses, I would call them parts, which in NY is a subset of tools. https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/manufacturing_equipment.htm
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Jun 28, 2022 23:14
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Xenoborg posted:Unless the product you're selling is the sawhorses, I would call them parts, which in NY is a subset of tools. That makes sense. So it would be tools for actual tools, parts for nuts bolts and materials used to make tools for manufacturing, and materials for the stuff that goes into the final product? This isn't for sales tax purposes. It is just to make things smoother when it comes to claiming deductions when I file my taxes.
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Jun 28, 2022 23:40
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SkunkDuster posted:That makes sense. So it would be tools for actual tools, parts for nuts bolts and materials used to make tools for manufacturing, and materials for the stuff that goes into the final product? Yes that would be correct.
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Jun 29, 2022 18:34
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Epitope posted:It's the letter I mentioned a week or so ago. I originally didn't notice the number was a different number. So it's some other human's name, but our company name, but the ein is slightly different than our company. The guy at the local irs office didn't offer too many clues. Will the accountant who does the books know anything? A little surprised if so, the IRS should have disregarded what you sent in if the EIN was wrong for the name. I had a client who screwed up getting an estate EIN and we couldn't even file until we had the correct one figured out. Though maybe what happened is they were looking for this other business (somebody who owes the IRS moving with no forwarding address makes a whole lot of sense unfortunately) and when you sent in something with the wrong EIN they thought they found them. At this point, unless you can specifically find something in YOUR business's taxes that fits what the letter is about, I'd just write back with the correct EIN/contact person name and say this letter isn't for you. At minimum it would put the ball in their court and I'd think having the correct EIN would let them look at the appropriate returns and reporting documents and figure out "wrong person" themselves. SkunkDuster posted:That makes sense. So it would be tools for actual tools, parts for nuts bolts and materials used to make tools for manufacturing, and materials for the stuff that goes into the final product? Sounds good, and if you need to, a lot of times I have clients look at the appropriate tax form (Schedule C for noncorporate entity business usually) which has a good list of the categories. Note that even if it doesn't fit cleanly in a category you often would just claim it as an "other expense" (in a list saying what it is specifically), so don't think you can't claim it just because it doesn't fit neatly in the categories shown. Worst case, just include it and info on what it is and the preparer can work it out for you, I consider that pretty much my job with most business returns anyway .
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Jun 30, 2022 20:13
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MadDogMike posted:A little surprised if so, the IRS should have disregarded what you sent in if the EIN was wrong for the name. I had a client who screwed up getting an estate EIN and we couldn't even file until we had the correct one figured out. Though maybe what happened is they were looking for this other business (somebody who owes the IRS moving with no forwarding address makes a whole lot of sense unfortunately) and when you sent in something with the wrong EIN they thought they found them. At this point, unless you can specifically find something in YOUR business's taxes that fits what the letter is about, I'd just write back with the correct EIN/contact person name and say this letter isn't for you. At minimum it would put the ball in their court and I'd think having the correct EIN would let them look at the appropriate returns and reporting documents and figure out "wrong person" themselves. Thanks. I did find three quarterly 941s we filed with the typo. I think you're right about this other person owing them money and not leaving an address. Hopefully untangling this isn't too big a headache.
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Jun 30, 2022 20:26
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actionjackson posted:the IRS has finally started processing my paper return (basic 1040) that i sent in on jan 30
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Jun 30, 2022 22:36
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MadDogMike posted:A little surprised if so, the IRS should have disregarded what you sent in if the EIN was wrong for the name. I had a client who screwed up getting an estate EIN and we couldn't even file until we had the correct one figured out. Though maybe what happened is they were looking for this other business (somebody who owes the IRS moving with no forwarding address makes a whole lot of sense unfortunately) and when you sent in something with the wrong EIN they thought they found them. At this point, unless you can specifically find something in YOUR business's taxes that fits what the letter is about, I'd just write back with the correct EIN/contact person name and say this letter isn't for you. At minimum it would put the ball in their court and I'd think having the correct EIN would let them look at the appropriate returns and reporting documents and figure out "wrong person" themselves. Thanks for the tip on Schedule C. I'll take a look at that and base my categories around what's on there. Fortunately, I don't expect to have to purchase items very often once I get up and going, so I shouldn't have too many receipts to go over when it comes to filing taxes.
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Jul 1, 2022 14:24
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My refund is still processing… is that normal? I can’t get through to an actual human at the IRS. We filed a little later than usual this year but still before the deadline. Sorry if this has been answered recently
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Jul 6, 2022 16:20
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