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I'm sitting here with a giant pile of all my investment / RSU / SAR forms, plus all the weird-rear end little 1099s that roll in each year from publishers, but I don't have the W2 from my actual job yet.  There's always something.
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Feb 3, 2023 21:10
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Agronox posted:They need until at least Feb. 1st to be able to get wash sale basis calculations right. … THANK you. I had wondered what the reasoning was. One piece of my job finally makes more sense! Winged Orpheus posted:As someone who until very recently worked for Block and just struck out on their own, Block can vary wildly in quality on returns. There are definitely great preparers who really know their stuff, but there are also a lot who've done the ITC and lots of offices aren't super picky about who gets sat with who. They definitely try to match complex returns with more experienced preparers but if the better preparers are overloaded work is gonna get shunted around. That dynamic might exist at the non chain firms as well, no real experience with those. Can’t really argue, I did wind up having Schedule C returns dumped on me first year. Did have some training and none of them were TRICKY businesses to deal with, but I did take longer than I liked. Though I find it amusing how once I got comfortable with Schedule C stuff, actual corporate entity returns didn’t wind up being that much more complicated to me. Though one of the other bugaboos about quality is even general experience doesn’t guarantee it; a lot of the folks who’ve been working 20+ years will need to ask advice of me on some issues because I actually do more of them. skipdogg posted:I don’t even bother doing my taxes until mid March. There’s always something that takes forever to trickle in. One that irritates me is 1099-C cancellation of debt forms being super late as a rule. At least with accounts the client remembers they exist and to look for something, but most of them don’t even realize the tax consequences of settling debt so they don’t know to even expect a form, much less one in March. So many drat amendments that require extra payments for that stuff…
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Feb 4, 2023 16:39
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When I was initially doing my taxes this year, I accidentally put in the W2 gross wages rather than the actual box 1 amount, the difference being the 401k contributions. This changed my taxes by several thousands of dollars. Luckily I caught this when I was doing my final checks, but curious if this is something that the IRS would have caught anyways?
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Feb 4, 2023 23:18
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My tax info arrived today, and as if we needed another point against using Turbotax (I typically use it to get a free estimate, then don't pay them and wait for my tax guy to do better): In spite of living in California and having the typical California-sized mortgage and property taxes, it tried to recommend against even trying to itemize, saying it "didn't apply to the majority of people." I noticed this after it never asked me about my condo or living arrangements; it just assumed that there's no way that I'd be saving more by itemizing than by using the standard deduction, and tried to dissuade me when I went to enter my mortgage interest and tax information from even looking at the section. Their recommendation would have cost me nearly $2,500.
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Feb 5, 2023 03:42
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smackfu posted:When I was initially doing my taxes this year, I accidentally put in the W2 gross wages rather than the actual box 1 amount, the difference being the 401k contributions. This changed my taxes by several thousands of dollars. Luckily I caught this when I was doing my final checks, but curious if this is something that the IRS would have caught anyways? I think the only times I have ever seen the IRS correct a mistake that involves them refunding more money is screw ups with underpayment/2210 penalties, or mistakes in estimated tax payment where you paid more than you put on the return. With W-2s in particular I think they assume you have the correct number over their records if you put in one that costs more tax (how many people would lie about owing more tax?). Mind you, in the category of "IRS letters that turn out to be good things", I've had them report capital gains that turned out to be additional capital losses when the correct basis is used, and the amendment gets extra money back; I tend to be highly amused when that happens. Sundae posted:My tax info arrived today, and as if we needed another point against using Turbotax (I typically use it to get a free estimate, then don't pay them and wait for my tax guy to do better): In spite of living in California and having the typical California-sized mortgage and property taxes, it tried to recommend against even trying to itemize, saying it "didn't apply to the majority of people." I noticed this after it never asked me about my condo or living arrangements; it just assumed that there's no way that I'd be saving more by itemizing than by using the standard deduction, and tried to dissuade me when I went to enter my mortgage interest and tax information from even looking at the section. I am of the general opinion most software will do a good enough job if an actual tax preparer is using it (since I know when the machine is wrong), but if the person using it is not aware of some tax rule at least in general terms, then whoa boy. Swear every time I saw someone renting property for the first time and did the return on TurboTax, thing didn't have depreciation on it without fail.
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Feb 5, 2023 04:19
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MadDogMike posted:I am of the general opinion most software will do a good enough job if an actual tax preparer is using it (since I know when the machine is wrong), but if the person using it is not aware of some tax rule at least in general terms, then whoa boy. Swear every time I saw someone renting property for the first time and did the return on TurboTax, thing didn't have depreciation on it without fail. I agree with this, definitely. That's the part that bugs me - it didn't just not do the section, it tried to tell me to not do it when I wanted to. A bunch of people probably don't know any better and take Turbotax's word at face-value, paying them for bad or incomplete advice. I really got used to having a tax guy and enjoy working with him each year, but I probably don't need him right now. It's more just to keep myself as a customer for the next time I change jobs and get hosed over by an employer trying to offload their tax liability to me. (He had to help me out in 2012 when J&J shifted bizarre expenses into my relocation costs in a way that made me liable for the taxes even when they were unrelated to my move. It was absolutely nuts.) Sundae fucked around with this message at 04:27 on Feb 5, 2023 |
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Feb 5, 2023 04:25
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MadDogMike posted:I think the only times I have ever seen the IRS correct a mistake that involves them refunding more money is screw ups with underpayment/2210 penalties, or mistakes in estimated tax payment where you paid more than you put on the return. With W-2s in particular I think they assume you have the correct number over their records if you put in one that costs more tax (how many people would lie about owing more tax?). Mind you, in the category of "IRS letters that turn out to be good things", I've had them report capital gains that turned out to be additional capital losses when the correct basis is used, and the amendment gets extra money back; I tend to be highly amused when that happens. The way their matching software works they may even think that your W-2 was missing since the total wouldn't match. I remember a long time ago we had something like that with a retirement 1099 or maybe a capital gain where whoever entered the information rounded up and the IRS papers rounded down and they tried to come after the client for twice as much income. Very dumb, hopefully their software is better now.
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Feb 5, 2023 06:05
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e: wrong thread!
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Feb 5, 2023 19:32
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That’s scary, glad I double checked it. Payroll companies should really stay away from writing “Box 1” next to any numbers on a W-2 that aren’t the Box 1 value. I guess they were breaking down how the Box 1 value was calculated, which starts with the gross pay, but yeah, confusing at a glance.
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Feb 5, 2023 23:42
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Apropos of thread title. https://www.tiktok.com/embed/7196175491932474666 edit: dpkg chopra fucked around with this message at 00:31 on Feb 6, 2023 |
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Feb 6, 2023 00:25
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This was my first year doing a Mega Roth 401k (in plan conversion of after-tax contributions to Roth 401k). I received a 1099-R detailing the amount I put in+converted, and the taxable amount is zero with the appropriate special code of "G", so everything looks okay. As far as I understand, the values on this Mega/401k 1099-R don't need to be entered anywhere in my taxes (in contrast to a backdoor Roth IRA conversion which is recorded on Form 8606 but also generally generate extra taxes). Does that sound correct?
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Feb 6, 2023 03:09
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For the last few year since I've been doing the Mega 401k, Ive been putting the amount in box 1 of the 1099R in Pensions and Annuities 5a of 1040 and with rollover selected and the taxable portion from 2a of 1099R in 5b. The box titles doesn't sound super correct, but seem to be the closest thing in the instructions. Also since the proper amount goes into the AGI calculation and no one has yelled at me, it can be that far off. edit: Jealous that your taxable is 0, even with automatic conversions I still have 157 taxable on it this year. Xenoborg fucked around with this message at 05:52 on Feb 6, 2023 |
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Feb 6, 2023 05:49
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Xenoborg posted:For the last few year since I've been doing the Mega 401k, Ive been putting the amount in box 1 of the 1099R in Pensions and Annuities 5a of 1040 and with rollover selected and the taxable portion from 2a of 1099R in 5b. The box titles doesn't sound super correct, but seem to be the closest thing in the instructions. Also since the proper amount goes into the AGI calculation and no one has yelled at me, it can be that far off. Thanks a lot, that makes sense. Reading the 1040 instructions for fields 5a and 5b that does sound correct. The title of pension and annuities made me initially think 401k stuff wouldn't go there, but the instructions state that they do.
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Feb 6, 2023 15:26
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Xenoborg posted:
Which brokerage is moving that slowly?
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Feb 6, 2023 16:48
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Fidelity. 157 taxable of ~24k converted.
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Feb 6, 2023 18:40
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Xenoborg posted:Fidelity. 157 taxable of ~24k converted. You got me worried so I went and downloaded my 1099-R. Mine is all auto with Fidelity as well, ~$22k, box 2a is $0.
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Feb 6, 2023 20:42
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I got a 1099-DIV from a REIT, and it has a Section 897 capital gain in box 2F. I'm trying out Freetaxusa this year, and I don't see a space in there to put this (very small) amount. It's like $15, does it matter?
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Feb 7, 2023 19:17
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sparkmaster posted:I got a 1099-DIV from a REIT, and it has a Section 897 capital gain in box 2F. I'm trying out Freetaxusa this year, and I don't see a space in there to put this (very small) amount. It's like $15, does it matter? Pretty sure 2f gain doesn't apply to US individual taxpayers and can be ignored - the amount is already included in the other boxes and it's just a reclass for REIT filers.
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Feb 7, 2023 19:22
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This seems like the best thread to ask: can people still use the CARES act to withdraw 401(k) without penalty? I can't seem to tell if that act is still on the books for 2023, or if "covid is over".
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Feb 8, 2023 09:13
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I didn’t contribute to my Roth IRA in 2022 because I was worried I’d exceed income limits. Well I did and now I’m trying to figure out if I can contribute via a backdoor Roth IRA for year 2022. But I’m reading conflicting info online some saying the contribution/conversion has to be done before Dec 31st 2022 and others saying it’s okay to contribute/convert as long as it’s before April 2023. Which is true?
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Feb 9, 2023 17:49
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mysteryberto posted:I didn’t contribute to my Roth IRA in 2022 because I was worried I’d exceed income limits. Well I did and now I’m trying to figure out if I can contribute via a backdoor Roth IRA for year 2022. But I’m reading conflicting info online some saying the contribution/conversion has to be done before Dec 31st 2022 and others saying it’s okay to contribute/convert as long as it’s before April 2023. Which is true? You can still contribute for last year. The conversion will be in this year's taxes though.
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Feb 9, 2023 20:24
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You can do a backdoor Roth for 2022 right now. Contribute to a Trad IRA (choosing 2022 when it asks you) then after that transaction clears in a few days find the button to transfer that money to your Roth IRA. You will have to pay taxes (next April) on any gains that you get while it is in the Trad IRA but that will be zero as long as you don't invest it for a while before transferring to the Roth. Not sure if you would do the 8606 form for 2022 or 2023 though.
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Feb 9, 2023 21:48
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I'm confused about how SS benefits affects taxes owed for a single filer. For 2022: $20,000 in SS benefits $30,000 in RMD distributions, dividends, and interest payments (No taxes withheld) Total gross income for 2022 is $50,000 but the "combined income" is $40,000. Since this is over the $34,000 limit here - https://www.ssa.gov/benefits/retirement/planner/taxes.html then up to 85% of the SS benefits may be taxable. What is not clear to me is what is the tax that one will be paying as a single filer in the 2022 tax bracket? Will the $30,000 in RMD / Dividends / Interest be taxed at 10% & 12% ($10,275 at 10% and $19,725 at 12%) while 85% of the $20,000 SS benefits will be taxed as well at the 10% & 12% tax rate? (Minus deductions) Busy Bee fucked around with this message at 11:17 on Feb 10, 2023 |
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Feb 10, 2023 10:46
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Busy Bee posted:I'm confused about how SS benefits affects taxes owed for a single filer. I'm pretty sure it's all considered income in one bucket. The 85% thing would mean $17,000 gets added to $30,000 for a total income of $47,000 that you would then calculate the tax on.
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Feb 10, 2023 15:19
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Ancillary Character posted:I'm pretty sure it's all considered income in one bucket. The 85% thing would mean $17,000 gets added to $30,000 for a total income of $47,000 that you would then calculate the tax on. This is correct.
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Feb 10, 2023 22:36
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I am considering a role that would require me to relocate to the US. This would, for the first time in my life, bring me within the ambit of the IRS. The place I’m from and the place I live now don’t impose tax on overseas earnings so if and once I move, that will be the only place I do pay tax. Where’s a good place to go to just get a basic overview of what it’s going to mean for me to pay US taxes (both for my salary, and for income on any assets I built up over the years)?
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Feb 11, 2023 00:58
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Beefeater1980 posted:I am considering a role that would require me to relocate to the US. This would, for the first time in my life, bring me within the ambit of the IRS. The place I’m from and the place I live now don’t impose tax on overseas earnings so if and once I move, that will be the only place I do pay tax. IRS Pub 519 isn't a bad start for official IRS sources. Obviously more specific questions we can field here.
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Feb 11, 2023 02:35
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MadDogMike posted:IRS Pub 519 isn't a bad start for official IRS sources. Obviously more specific questions we can field here. Thank you!
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Feb 11, 2023 05:27
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Two years ago (2021) I got a payout for options I held in a company that was acquired. Part of the acquisition involved a holdback provision for 1 year in the event of contingencies. This past year (2022) I received a check for the holdback amount. I reported the first payout when filing for the 2021 tax year. How do I report this second payout from the holdback fund, or do I even need to? I'm not sure if or when I'll receive a document for this holdback amount.
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Feb 12, 2023 19:49
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So apparently the IRS is rejecting any returns that include Form 8960? Maybe fixed in a few weeks? Cool.
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Feb 13, 2023 04:58
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I'm still waiting to figure out if the tax rebates from the Commonwealth are federally taxed or not. Supposedly no, but I can't find anything super specific.
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Feb 13, 2023 13:44
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KYOON GRIFFEY JR posted:I'm still waiting to figure out if the tax rebates from the Commonwealth are federally taxed or not. Supposedly no, but I can't find anything super specific. Apparently not taxable with some exceptions. https://www.telegram.com/story/news/2023/02/11/irs-says-2022-one-time-massachusetts-refunds-wont-count-toward-income/69895173007/ quote:"If the payment is a refund of state taxes paid and either the recipient claimed the standard deduction or itemized their deductions but did not receive a tax benefit (for example, because the $10,000 tax deduction limit applied) the payment is not included in income for federal tax purposes," the IRS said about Massachusetts and those three other states.
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Feb 14, 2023 17:09
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Yeah I just found an actual IRS pub on it that appears to make it clear - posting for others's benefit. https://www.irs.gov/newsroom/irs-issues-guidance-on-state-tax-payments-to-help-taxpayers
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Feb 14, 2023 17:42
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It took so long to get an answer on that that  has a spot to remove it from the state tax return this year:
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Feb 14, 2023 19:04
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To go back to this: Question about where it says: "If you didn't pay enough tax throughout the year, either through withholding or by making estimated tax payments, you may have to pay a penalty for underpayment of estimated tax. Generally, most taxpayers will avoid this penalty if they either owe less than $1,000 in tax after subtracting their withholding and refundable credits, or if they paid withholding and estimated tax of at least 90% of the tax for the current year or 100% of the tax shown on the return for the prior year, whichever is smaller." Does that mean if I was Exempt last year (thus owed $0 in taxes) that I can't/won't be penalized this year for underpayment? Since "100% of the tax shown on the return for the prior year" was $0.
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Feb 14, 2023 19:54
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literally this big posted:To go back to this: Correct, as long as your with-held taxes from 2022 were greater than 2021's tax total you won't owe any penalty. This rule saved me from a potentially big hit.
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Feb 14, 2023 20:39
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Subvisual Haze posted:Correct, as long as your with-held taxes from 2022 were greater than 2021's tax total you won't owe any penalty. This rule saved me from a potentially big hit. Is it likely that the IRS will still hit me with a penalty come tax time April 2024, and I'll have to mention/prove that I owed $0 in 2022, thus should not be penalized for under withholding for 2023? And could I pay nothing in withholding this year, pay everything I owe next April, and still entirely avoid the penalty for 2023? I know I'd have to start properly withholding in 2024. But having this year's tax money sitting in a HYSA for 12+ months could be a decent amount of extra money in my pocket this year.
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Feb 14, 2023 20:48
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When you file this year's taxes, look at the line for "total tax" (line 24 on the 1040). If you withhold less than that amount in the next year, it could potentially come back to bite you.
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Feb 14, 2023 21:13
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I messed up my 2022 RothIRA contribution, by making a direct contribution rather than backdooring it. My understanding is that I either pay a penalty (how much?) or I remove the money+gains. The trouble is, I have no idea how to calculate how much I made off of that 6k. Suppose I remove the 6k+gains, then what? How do I tell the IRS that I messed up and resolved the issue?
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Feb 15, 2023 04:34
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I think my State agency employer reported the child tax credit incorrectly and hosed up everyone's taxes. I don't have any kids, but my assistant, who makes like $36k per year came to me for help today. She plugged everything into turbo tax and it says she owes about $4000 more than what was already withheld in the normal course of the year. I don't know nothin about nothin when it comes to taxes though so I'm looking around for an explanation or help. In that same vein I can only go so far with the explanation. I took a look on her w4 from when she got hired in November 2021. It has a box that says "multiply the number of dependants you are claiming by $2000 and write that number here." Three kids, so $6000. She puts standard withholding (12% for her job, which is her likely tax bracket or whatever) and doesn't think anything of it. A normal amount of money is taken out of each check for CY2022. As I said, she just plugged it into turbo tax and it says she owes $5000 to Uncle Sam for the year. She called the front desk at the Department of Revenue, who eventually escalates her to someone (Kim) with a Payroll Supervisor job title. Kim sends her the breakdown on an excel spreadsheet. Here's what I think might be the relevant bits: $36,777.84 Taxable $23,225.00 Less (per tax table) __________________ $13,552.84 0.12 Tax rate $1,626.34 $1,027.50 (Required tax) $2,653.84 $6,000 Credits for Dependents (highlighted yellow) 24 Pay periods _________________ -$139.42 Divided by pay periods [ Blank ] Additional WH request -$139.42 Withholding amount -$139.42 times 24 comes out to $3,346.08 just about what turbo tax says she owes. Like, they took the amount she should have paid, $2653.84 and subtracted the $6000 from that number, leaving a negative withholding? Thus she owes the negative withholding? In other words, I think Revenue reported that the routine child tax credit listed on the W4 was somehow given to her as a cash payment and she owes it all back? As I said I'm not a tax guy but based on my infinitesimally small tax knowledge I didn't think that's not how child tax credits work. Googling says something wonky happened Cy2021 with the child tax credit but I can't find anything that would support what I think happened here. She insists she did not get a check for $6000 nor was her paycheck increased by $500/mo, as her gross stayed steady at $2058.50. She's an assistant with three kids she'd have noticed. She's freaking out so any kind of clarification would be great. Or even point her in the right direction. She came to me to see if I can rustle some feathers in revenue, which I am absolutely willing to do, but I'd need pointed in the right direction too. Edit Kim sent the same spreadsheet for the first bit of this year. It has the same gross pay, and the same "credit for Dependents" subtracted from the number above it. Her dependents went down to $2000 when the twins grew up so the withholding amount is now $6.53 instead of -$139.42. In other words she's definitely not getting this money fronted because her pay stayed the same with the change in deduction amount. BigHead fucked around with this message at 06:29 on Feb 15, 2023 |
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Feb 15, 2023 06:21
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