|
I'm about to start a new remote job. The employer is based out of Maryland while I live in Texas. What is the tax situation here? Am I technically exempt from Maryland state taxes due to not living in Maryland or is it because my employer is based there that I get hit? Will they initially withhold state taxes and I get it back during filing time?
|
#
?
Aug 19, 2022 20:43
|
|
|
|
| # ? May 10, 2024 00:31 |
|
|
Similar question to the previous poster. I am an Illinois resident, and will remain an Illinois resident upon beginning a new remote job with a New York employer. The New York employer will be my primary source of income (~$75K gross), but I will also gross ~$15K as a W-2 employee from an Illinois public university. I also have a spouse who works for an Illinois employer. From what I can gather online, it appears I will be subject to New York state income tax on income from my New York employer. I can't figure out if/how Illinois taxes that income though. I don't think my second smaller job or my wife's job play into this at all, but I included them in case they're relevant. Thanks!
|
|
#
?
Aug 19, 2022 21:29
|
|
|
George H.W. oval office posted:I'm about to start a new remote job. The employer is based out of Maryland while I live in Texas. What is the tax situation here? Am I technically exempt from Maryland state taxes due to not living in Maryland or is it because my employer is based there that I get hit? Will they initially withhold state taxes and I get it back during filing time? Maryland fortunately does not appear to be one of the states claiming remote work in a company based in their state counts as MD income, so you should just be under TX income (i.e. zero). Company shouldn’t withhold MD tax, but if they do you file a nonresident tax return with zero income to get it refunded. pig slut lisa posted:Similar question to the previous poster. New York unfortunately does tax remote workers on their income. In your case you’ll file a New York and Illinois return, but you get a credit on your IL tax return for the tax paid to New York for the $75k income. So the NY income is included on your IL return, but you won’t get double taxed on it by IL.
|
|
#
?
Aug 20, 2022 18:52
|
|
|
It feels like it’s just, does your employer withhold in the “wrong” state or not. Which is a bit out of your control. If not, I don’t think you have to get complicated.
|
|
#
?
Aug 20, 2022 19:17
|
|
|
Sounds simple enough to me, and glad to hear I'll only get taxed by one state on this income. Appreciate it 
|
|
#
?
Aug 21, 2022 05:33
|
|
|
pig slut lisa posted:Sounds simple enough to me, and glad to hear I'll only get taxed by one state on this income. Appreciate it Yeah, though it depends somewhat on the relative tax rates. I know Illinois has a flat tax rate (a little under 5% I think?) and New York has 4% to ~10% brackets, so in all likelihood you'll wipe any any tax on the 75k for Illinois because you already paid more than the IL rate. But if it was reverse, say living in New York but somehow working in Illinois, you have to make up the difference between the IL tax taken out and the higher New York tax (so if the New York rate was effectively 6% and you paid Illinois's 5%, you'd have to pay the remaining 1%). An issue that might affect you is, I don't know if Illinois and New York use the same taxable income; the only other flat tax rate state I'm familiar with (Pennsylvania) still taxes 401k contributions and such, while New York goes by federal taxable income rules. So, if IL is like PA, if you contributed $5000 to a 401k you'd have $70,000 taxable income in New York and $75,000 taxable in Illinois. You'd only get a credit on the $70,000 taxed in New York, so the remaining $5,000 you'd owe Illinois tax on. Anyway, just be prepared to potentially owe some (though not a ton of) tax to Illinois the first time out. Also, if you need a preparer's help to figure things out, be sure to mention it involves New York; even non-New York preparers have to be registered in New York (though we skip the fees and required NY training if we do no more than 10 New York returns a year) so you need to make sure you get someone who's registered.
|
|
#
?
Aug 22, 2022 19:33
|
|
|
MadDogMike posted:Also, if you need a preparer's help to figure things out, be sure to mention it involves New York; even non-New York preparers have to be registered in New York (though we skip the fees and required NY training if we do no more than 10 New York returns a year) so you need to make sure you get someone who's registered. This requirement has a lot of exceptions: attorneys, certified public accountants (CPAs), public accountants (PAs), enrolled agents (EAs), volunteer tax preparers, employees who are supervised by attorneys, CPAs, PAs, or EAs, and employees of a business preparing only the business’ tax returns.
|
|
#
?
Aug 23, 2022 02:39
|
|
|
Gabriel Grub posted:This requirement has a lot of exceptions: Still pretty unusual to my knowledge, can't think of any other state that requires out of state preparers to register (there are several that regulate in-state preparers of course). Also kind of wondering how you e-file without the preparer ID for New York you get by registering if those guys don't have to register. It's not exactly a HARD thing to register for if you are doing 10 or less anyway, you just click through an online questionnaire about your office mostly (though I sat our class on NY at least before messing with it, that wasn't actually required but seemed like a Bad Idea not to do beforehand).
|
|
#
?
Aug 23, 2022 04:35
|
|
|
Good to know about the potential preparer issue. We'll just be a few W-2s and a handful of 1099-DIVs and -INTs even after adding a second state, so my hope is that's simple enough for TurboTax to manage.
|
|
#
?
Aug 23, 2022 06:08
|
|
|
MadDogMike posted:Still pretty unusual to my knowledge, can't think of any other state that requires out of state preparers to register (there are several that regulate in-state preparers of course). Also kind of wondering how you e-file without the preparer ID for New York you get by registering if those guys don't have to register. It's not exactly a HARD thing to register for if you are doing 10 or less anyway, you just click through an online questionnaire about your office mostly (though I sat our class on NY at least before messing with it, that wasn't actually required but seemed like a Bad Idea not to do beforehand). If you're a CPA you just put a "3" in the exclusion code box of any NY Tax Returns. What's fun is I got my CPA license last summer (finally) and hosed up adjusting my tax software to mark the exclusion code. It was still printing my NYTPRIN which I did not renew since I got my license. May came and I got a letter from the State saying I had to pay a $5,000 fine for unregistered tax preparation. Was able to straighten it out easy by just sending my License information in but that was not a fun letter to receive.
|
|
#
?
Aug 23, 2022 19:18
|
|
|
Sorry if there’s a better thread for this. So I’m cleaning house and selling off high value items I don’t need anymore. I just found out that if I sell more than $600 on eBay they will send me a 1099k and report my sales to the IRS. Fine whatever. So a lot of the items I’m selling I’m not making a profit on. Am I allowed to take those deductions? For example if I buy a thing for $100 with 10% sales tax I’m out $110. 12mo later I sell it on eBay for $50. eBay takes a 13% cut and I have to pay $15 shipping. That’s $28.50 I’m ‘making back’ So I’m netting -$81.50 loss. Oh but there’s depreciation but are there standard formulas for this stuff? Am I expected to depreciate a PS5? A GPU? Do I have to do all my sales line by line or can I just condense it all into one line? Edit: oh this article says personal items sold at a loss are not supposed to be taxed beacuse it’s a loss https://www.hrblock.com/tax-center/income/other-income/capital-gains-garage-sale/amp/ So how do I correctly report that using the 1099k eBay sends me for 2022 because 100% of my eBay sales are gonna be losses Shaocaholica fucked around with this message at 02:33 on Sep 13, 2022 |
|
#
?
Sep 13, 2022 02:06
|
|
|
personal property sold at a loss means it’s not deductible or reportable, just leave it off the return. maybe they’re going to be aggressive enough about matching 1099-Ks that you’ll get a notice about it but I highly doubt it.
|
|
#
?
Sep 13, 2022 03:12
|
|
|
1099-K is informational they ain’t doing matching on it
|
|
#
?
Sep 13, 2022 04:55
|
|
|
Ungratek posted:1099-K is informational they ain’t doing matching on it My expectation is exactly the opposite. I’d have to check in my files to verify this, but I’m pretty sure they’ve sent out computerized audit letters for under $300 in tax owed. It doesn’t take a big 1099-K to get to that level when the IRS could assume that the income on the form would also be subject to self-employment tax. I don’t know exactly what my plan will be for clients with this fact pattern next year — I’ll probably report it and net it out on Schedule 1 — but I am absolutely not going to ignore the tax form.
|
|
#
?
Sep 13, 2022 15:30
|
|
|
I have kind of the same problem. My GF is selling old clothes that don't fit anymore on Poshmark. Probably most of them for less than she paid but maybe not all? Having to possibly deal with self employment taxes on just trying to get rid of some old clothes is total garbage and the lack of consensus ITT isn't encouraging. She doesn't itemize either.
|
|
#
?
Sep 13, 2022 15:45
|
|
|
Sale of personal items. If you sold an item you owned for personal use, such as a car, refrigerator, furniture, stereo, jewelry, or silverware, your gain is taxable as a capital gain. Report it as explained in the Instructions for Schedule D (Form 1040). You can’t deduct a loss.
|
|
#
?
Sep 13, 2022 16:24
|
|
|
Try going through TurboTax as though you got it last year. (2021 taxes.) see what they prompt you for. That's what I generally do with tax questions like that. Either way it's going to net out unless they somehow made a profit.
|
|
#
?
Sep 13, 2022 16:24
|
|
|
KillHour posted:I have kind of the same problem. My GF is selling old clothes that don't fit anymore on Poshmark. Probably most of them for less than she paid but maybe not all? Having to possibly deal with self employment taxes on just trying to get rid of some old clothes is total garbage and the lack of consensus ITT isn't encouraging. She doesn't itemize either. It's two different issues, and I apologize if I confused you. We are all in complete agreement on the actual tax law: if you sell stuff you bought for less than you paid for them, you have no income, and there's no tax or self-employment tax to worry about. To put it simply, the IRS receives copies of tax documents and they compare those documents to the tax return that you file, which we usually call "document matching." If the IRS computer program believes you have a certain amount of unreported income, it will generate an automated audit letter (called a CP2000) where they will propose adjustments to your tax return. You will have the opportunity to respond to the IRS and change their mind, but that takes time and effort, and many people find these letters stressful even if they are entirely in error. The only difference of opinion is that I assume that the IRS will be doing document matching on these 1099-Ks, and Ungratek does not. I expect to have clients in this situation this year and I will need to figure out a plan to report items in a way that satisfies the IRS and prevents my clients from receiving incorrect notices.
|
|
#
?
Sep 13, 2022 16:27
|
|
|
Missing Donut posted:It's two different issues, and I apologize if I confused you. We are all in complete agreement on the actual tax law: if you sell stuff you bought for less than you paid for them, you have no income, and there's no tax or self-employment tax to worry about. I think we were on the same page and it's not that I'm worried about having to pay taxes, it's that I'm worried about having to fill out complicated tax forms or pay someone to do so, proving I don't have to pay taxes. Nobody keeps track of how much stuff they bought 5 years ago cost.
|
|
#
?
Sep 13, 2022 16:37
|
|
|
1099-Ks are inherently flawed though, they don't differentiate between income and sales tax collected. It would be folly for the IRS to match exact amounts on tax returns to 1099-Ks. 1099-Ks also don't differentiate what kind of income it is. I'm pretty sure both AirBNB and eBay issue 1099-Ks but one is rent income shown on Schedule E and one would be trade/business income shown on Schedule C. So the IRS can't just say "if you received a 1099-K you should have a Schedule C." Of course, I would not actually be that surprised if the IRS created a flawed system resulting in a stupid amount of effort to enforce for limited benefit. I just hope they realize it's loving stupid and let 1099-K's be an implicit scare tactic to make people report income they would try to hide.
|
|
#
?
Sep 13, 2022 16:47
|
|
|
Epi Lepi posted:1099-Ks are inherently flawed though, they don't differentiate between income and sales tax collected. It would be folly for the IRS to match exact amounts on tax returns to 1099-Ks. Remember when the original plan was for taxpayers receiving 1099-Ks to reconcile those to taxable receipts? The IRS got a lot of pushback and this is the net result of that. Whether the tax form is flawed or not, the IRS is getting it, and we have to deal with it. Of course, existing 1099-NECs would include sales tax as well... The 1099-K lists a merchant category which should, in theory, designate the type of income that it is. Alternately, the IRS could just propose SE tax on the notice and let us challenge it because they don't have to be 100% right on CP2000s. It wasn't that long ago that document matching generated letters for IRA rollovers that had the correct rollover code... KillHour posted:I think we were on the same page and it's not that I'm worried about having to pay taxes, it's that I'm worried about having to fill out complicated tax forms or pay someone to do so, proving I don't have to pay taxes. Nobody keeps track of how much stuff they bought 5 years ago cost. Don't worry about it unless she gets a 1099-K. And even then, it's not really anything to worry about.
|
|
#
?
Sep 13, 2022 17:28
|
|
|
So I’ll be filing 2022 through turbo tax. How do I include eBay 1099k properly so IRS doesn’t bother me but also not pay taxes on the additional income(likely $15k) since everything was personal property sold at a loss? edit: A tax person said I should use a schedule C and I will have to 'pretend' I'm a business so that my 1099k gains can be paired with a corresponding expense so as to properly report a net loss? Isn't that fraud? Or its OK since the loss only applies to my pretend business and won't spill over to my other job income thus not really fraud? Shaocaholica fucked around with this message at 20:17 on Sep 13, 2022 |
|
#
?
Sep 13, 2022 19:34
|
|
|
Shaocaholica posted:So I’ll be filing 2022 through turbo tax. How do I include eBay 1099k properly so IRS doesn’t bother me but also not pay taxes on the additional income(likely $15k) since everything was personal property sold at a loss? You have at least four months before you're filing your 2022 taxes, which is an eternity in tax law. The IRS may come out with additional guidance in the future, or they could even be developing a new form for your situation, so worrying about the exact reporting mechanism today is not advisable. You know that it isn't taxable if you sold everything at a loss, and that's what really matters at this time. When you actually are going file your taxes, tell TurboTax that you have a 1099-K and it should guide you through the entire process so you can report it correctly. Doing the Schedule C method -- so long as you don't create a net loss -- gets to the right answer. I've used that method on some returns with bad 1099s that aren't going to be corrected. So long as you're not understating your taxable income it's not fraud.
|
|
#
?
Sep 13, 2022 22:46
|
|
|
I mean, I just quoted the pub 17 which says to use schedule D (and form 8949), since personal property is considered a 'capital asset'. I think that's the best way to do it for a few reasons, not least because that's what the IRS is asking, but also on the miraculous chance there is a taxable gain, you'd want it taxed at capital gains rates as opposed ordinary rates and also the schedule D wouldn't generate questions about the ol' schedule SE.
|
|
#
?
Sep 14, 2022 00:37
|
|
|
2023 is gonna be lol when everyone that sold a PS5/Xbox and a game is gonna get a 1099. Plus apparently eBay 1099 is just the sales total including tax and shipping while not including eBay fees. Fun for everyone.
|
|
#
?
Sep 14, 2022 02:52
|
|
|
sullat posted:I mean, I just quoted the pub 17 which says to use schedule D (and form 8949), since personal property is considered a 'capital asset'. I think that's the best way to do it for a few reasons, not least because that's what the IRS is asking, but also on the miraculous chance there is a taxable gain, you'd want it taxed at capital gains rates as opposed ordinary rates and also the schedule D wouldn't generate questions about the ol' schedule SE. If the IRS did document matching of 1099-Ks against Form 8949, that would be perfect, but that doesn't really seem to be a likely place for IRS computers to look.
|
|
#
?
Sep 14, 2022 03:30
|
|
|
I asked about this a few months back. It's created a very annoying, ambiguous situation. (And we all know that when you get a letter from the IRS, it's gonna be like 2 years later and then you have to go digging for all your documentation.)
|
|
#
?
Sep 14, 2022 08:47
|
|
|
I came across this post here: https://ttlc.intuit.com/community/t...ness/00/1987779 quote:You are allowed to sell personal property without creating taxable income. Then reading this: https://www.efile.com/other-income-taxable/ quote:Net Operating Loss (NOL) So...for instance if I bought a PS5 for $600 and sold it for $300 in 2022 I would have a loss of -$300. Lets say in 2023 I buy a PS6 for $600 and scalp it for $900 making a $300 profit. Can I take the $300 'personal' loss from 2022 and apply it to the $300 gain in 2023? Does this work for personal losses? Shaocaholica fucked around with this message at 18:23 on Sep 14, 2022 |
|
#
?
Sep 14, 2022 18:17
|
|
|
You cannot take a loss on the sale of personal property - it wouldn't create an NOL. Funny that both accounting threads are talking about this - I haven't come across a single 1099-K yet.
|
|
#
?
Sep 14, 2022 19:27
|
|
|
Along those lines - let's say I bought two things for $100. I sold one of them for $50 and one of them for $150 (at the same time). Would I be considered to have not had any income, or would I have been considered to have $50 of income?
|
|
#
?
Sep 14, 2022 20:02
|
|
|
Ungratek posted:You cannot take a loss on the sale of personal property - it wouldn't create an NOL. Hmm I think the fact that eBay is generating 1099k for all sales above $600 is technically putting those gains/losses out of the personal property realm. So it's no longer a 'personal' loss? Just lol anything eBay touches becomes a business asset. Shaocaholica fucked around with this message at 20:17 on Sep 14, 2022 |
|
#
?
Sep 14, 2022 20:14
|
|
|
Some lawyer at ebay was probably like "We're going to do the thing that covers our rear end to the maximum and let our customers sort through it with the IRS"
|
|
#
?
Sep 14, 2022 20:32
|
|
|
It was kinda the other way around, a bunch of states like Taxachusetts imposed it on eBay/Amazon and so they said gently caress it and did it for everything including federal
|
|
#
?
Sep 14, 2022 20:36
|
|
|
Zero VGS posted:It was kinda the other way around, a bunch of states like Taxachusetts imposed it on eBay/Amazon and so they said gently caress it and did it for everything including federal Texas? The state that doesn't have personal or corporate income tax?  Edit: It's because they have the stupidest possible tax system I can imagine and impose their idiot reporting requirements on everyone
|
|
#
?
Sep 14, 2022 21:15
|
|
|
No that's an old nickname for Massachusetts because of the taxes. Mass lawmakers thought they'd stick it to Amazon/eBay by forcing both companies to collect sales tax and report income in a bid to help local small businesses, it of course massively backfired since Amazon was no longer scared of having nexus in Mass so they simply plopped warehouses here to have same-day shipping instead.
|
|
#
?
Sep 14, 2022 21:28
|
|
|
Oh, I read that as Texachussets. In any case, both states are dumb.
|
|
#
?
Sep 14, 2022 21:33
|
|
|
Shaocaholica posted:Hmm I think the fact that eBay is generating 1099k for all sales above $600 is technically putting those gains/losses out of the personal property realm. So it's no longer a 'personal' loss? That's not what "personal property" means. It's a defined term. Personal generally just means it's not real property (land and buildings) or inventory. Whether someone does or does not issue a 1099K does not change anything about the substantive tax law or your income at the end of the day.
|
|
#
?
Sep 15, 2022 00:37
|
|
|
Seeing as people here are complaining about the new form 1099-K rules as much as I do, I will post the link to the campaign that ebay is running to contact congress about the new rule. it sends a form email to your congressperson telling them you think the rule sucks big time. https://www.ebaymainstreet.com/campaign/2021-federal-1099-campaign
|
|
#
?
Sep 16, 2022 21:45
|
|
|
Here's the IRS FAQ on 1099K, which includes addenda to address the 2022 changes. https://www.irs.gov/businesses/understanding-your-form-1099-k https://www.irs.gov/payments/general-faqs-on-new-payment-card-reporting-requirements Pub 525 explicitly directs people to report this stuff on Schedule D. IRS is not going to be shocked that people are selling personal possessions and reporting a loss on them; it's not a new phenomenon. kreeningsons posted:Seeing as people here are complaining about the new form 1099-K rules as much as I do, I will post the link to the campaign that ebay is running to contact congress about the new rule. it sends a form email to your congressperson telling them you think the rule sucks big time. https://www.ebaymainstreet.com/campaign/2021-federal-1099-campaign This accomplishes little other than harvesting personal info for ebay.
|
|
#
?
Sep 16, 2022 23:38
|
|
|
|
| # ? May 10, 2024 00:31 |
|
|
I am Canadian and immigrated to the US November 15 2021, at which point I became a US employee of a US employer. Prior to this date, I was a regular Canadian employee for a Canadian employer. For 2021I count as a non-resident alien. Non-resident alien returns cannot be electronically filed so I am forced to print this out to paper and snail mail it in. Form 1040-NR https://www.irs.gov/pub/irs-pdf/f1040nr.pdf Schedule OI instructions https://www.irs.gov/instructions/i1040nr#en_US_2021_publink11368vd0e13418 Schedule OI https://www.irs.gov/pub/irs-pdf/f1040nro.pdf Form 8833 https://www.irs.gov/pub/irs-pdf/f8833.pdf Form 1040NR Schedule NEC https://www.irs.gov/pub/irs-pdf/f1040nrn.pdf Schedule NEC instructions https://www.irs.gov/instructions/i1040nr#en_US_2021_publink11368vd0e12856 Canada-US tax treaty. https://www.canada.ca/en/department...-1995-1997.html https://www.irs.gov/pub/irs-trty/canada.pdf On my 1040-NR line 1c asks for my treaty exempt income, as determined by schedule OI. In schedule OI Item L I am asked for "Income Exempt From Tax—If you are claiming exemption from income tax under a U.S. income tax treaty with a foreign country, complete (1) through (3) below. See Pub. 901 for more information on tax treaties" If I fill out Item L, I am required to fill out form 8833 justifying my treaty position. My question 1) Am I required to report my Canadian normal salary that I earned during my time in Canada as income on Item L. And then am I required to do this nightmare dance of explaining the US-Canada tax treaty then back to the IRS? Including whatever the gently caress this means "List the Internal Revenue Code provision(s) overruled or modified by the treaty-based return position" 2) For schedule NEC, what the gently caress is this even asking about. Am I required to report here dividends paid to me from my Canadian stocks, paid out to me during my time in Canada? At what time? At what currency conversion, at what date? I have already paid tax on those for my Canadian income. 3) What tax software even helps people like me. Where for 2022 I will be a resident alien, but still have Canadian assets held, like my RRSP and other unregistered stocks. These stocks for 2022 will have capital gains and dispositions to report and will be paying out to me dividends. 4) According to intuit. I do not need to pay any sort of tax on my Canadian investments/salary during my time in Canada.. But maybe still need to report? I don't get it. Non-resident taxes A non-resident must also pay income taxes to the IRS but only on the income that’s effectively connected to the U.S., which generally includes the money you earn while in the U.S. The IRS, however, has no authority to impose tax on the income that non-residents earn in their home countries or in any foreign country for that matter. When you prepare your U.S. tax return, you must use Form 1040NR or the shorter 1040NR-EZ, if eligible. Regardless of the form you use, you will only report amounts that are considered US-source income. Just like resident aliens and U.S. citizens, there are deductions and credits you can claim to reduce your taxable income. All non-resident tax return forms like 1040NR, 1040NR-EZ or 8843, are available with instructions on the IRS website. You can also use software like Sprintax to guide you through the non-resident tax return preparation process. 5) I've just now noticed that every single one of my equity grants have still been improperly given Canadian tax withholdings at the sell-to-cover events. That's so loving bad I can't even believe it. I spent so much loving time talking to my payroll org to make sure all of my residency and withholding information was right when I first moved here to avoid this EXACT situation. I had every assurance given to me that "yup all updated!" but everything I look at is just wrong. I don't even know how that can be fixed. The stock was sold at vesting time at the then valuations. Several hundreds of thousands of dollars of stock is now all hosed up over the past 10 months. I don't even what to do any more. I need to talk to my payroll people AGAIN and tell them to fix it, but I don't know how that could even be done. I want to die 
Methanar fucked around with this message at 05:10 on Sep 18, 2022 |
|
#
?
Sep 17, 2022 22:42
|
|
