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What on earth is on her W-2 that would cause turbo tax to say she has $4K balance? Like, cool lots of math there but what is on the actual form? Even 0 withholding should only result in that $2600 of tax due. Does she have other income? Is she not actually claiming her kids this year? This is almost certainly user input error with turbotax unless the W-2 is turbofucked to some degree that I can't fathom. Edit: This is her 2022 taxes right? So we're not talking about advanced child tax credit shenanigans? Epi Lepi fucked around with this message at 06:41 on Feb 15, 2023 |
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Feb 15, 2023 06:38
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theHUNGERian posted: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? The penalty is 6% of the over contribution each year it stays in the account. So not really a good option.
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Feb 15, 2023 15:01
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smackfu posted:The penalty is 6% of the over contribution each year it stays in the account. So not really a good option. Yeah, that makes the decision super easy. So if the fund had net losses over the period, can I just remove 6k and know that I have withdrawn more than the required amount? Edit: Vanguard this: https://investor.vanguard.com/investor-resources-education/iras/excess-contribution, so I am good. Thanks again! theHUNGERian fucked around with this message at 15:34 on Feb 15, 2023 |
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Feb 15, 2023 15:21
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BigHead posted:-$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? At this point, the W-4 doesn't matter and the only numbers that matter are on the W-2. If there is negative income tax withholding on the W-2, your payroll software needs to be replaced. I agree with Epi Lepi, there is either something wrong with her input into TurboTax, or there are items on her return that you do not know about... another job, a distribution from an old 401(k) plan, etc.
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Feb 15, 2023 16:51
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Missing Donut posted:At this point, the W-4 doesn't matter and the only numbers that matter are on the W-2. If there is negative income tax withholding on the W-2, your payroll software needs to be replaced. Got some clarification from her and payroll. Yes, the W2 says zero withholdings for the year, not some negative number. So according to the W2 she paid zero taxes and owes the entire $2600 plus whatever under withholding fees. The screw up, we think (based on our amateur understanding) is that Revenue miscalculated the withholding for the year, leading to a zero withholding even though she checked the box for standard withholding. The negative withholding did not show up on the W2, but a zero withholding did. My OP was based upon her insistence that she did withhold the standard amount and still owed about $3,000. It's just a coincidence that she claimed a $6,000 credit and thought she had already paid about half, leading half to "pay back." Instead, she just owes her taxes that she never got withheld. Revenue did in fact assume she, and everyone else who claimed a standard child tax credit, would reduce their total yearly withholding by the amount claimed for that credit. That seems crazy to us, especially since she's getting hit with fees, but again we're not sophisticated. I can just point out that's not how Google says it should have happened, and the fact that the IRS says they hosed it up by saying she owes those taxes. Thoughts? BigHead fucked around with this message at 16:06 on Feb 16, 2023 |
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Feb 16, 2023 15:56
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Something is still terribly, terribly wrong with her TurboTax even if there is 0 withholding on the W-2. (Very) Ballpark numbers 37k AGI 23,050 taxable income (assuming single filer, which she likely qualifies for HoH which is even better) ~$2500-$2600 total tax obligation $6000 in credits for 3 kids. The credits aren't fully refundable but even with 0 withholding she should easily be in refund territory. Something is missing. Places I would check: Is she married filing separately? Is there a second income? Did she enter her income twice? Is she actually eligible to claim the children? Is she actually claiming them? Did she have marketplace health insurance? Something is missing in this picture and I'm not sure what. Even if she had 0 withholding as a single filer with no kids, she'd be looking at $2,500 or so balance due. She might want to try just starting over on TurboTax.
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Feb 16, 2023 16:13
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BigHead posted:Got some clarification from her and payroll. Yes, the W2 says zero withholdings for the year, not some negative number. So according to the W2 she paid zero taxes and owes the entire $2600 plus whatever under withholding fees. The screw up, we think (based on our amateur understanding) is that Revenue miscalculated the withholding for the year, leading to a zero withholding even though she checked the box for standard withholding. The negative withholding did not show up on the W2, but a zero withholding did. Stop blaming the payroll department, because they did not screw this up. They calculated withholding based on the W-4 provided to them by your co-worker. She told payroll that she needed standard withholding and was entitled to a tax benefit for three children under age 17. A person whose entire income is $37k in wages and has 3 kids under 17 has no need for federal withholding because anything withheld would just be refunded anyway... so none was taken out of the paycheck. I'll be blunt; I don't think your co-worker should be preparing her own return. It's not a slight; we all have different skills and strengths and it's just important to know when you're out of your depth. At her income level she should qualify for VITA sites where someone trained in tax law can work with her for free to ensure the current year return is correct and, if there really is an underpayment, they might be able to help her with a new W-4 if it's necessary. Winged Orpheus posted:Something is missing in this picture and I'm not sure what. Even if she had 0 withholding as a single filer with no kids, she'd be looking at $2,500 or so balance due. She might want to try just starting over on TurboTax. I agree. Even if there was just one child under 17, that's a $2k child tax credit and potentially earned income credit at play.
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Feb 16, 2023 16:54
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I sold two houses and bought one house. For the two sold houses I was shown prorated at closing a total of $924. For the house I bought, closing documents show a debit of 79.00 of prorated property tax. My mortgage company disbursed $2384 on the new property and nothing on the old property. What is my deduction for real estate property taxes?
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Feb 16, 2023 17:30
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Missing Donut posted:Stop blaming the payroll department, because they did not screw this up. They calculated withholding based on the W-4 provided to them by your co-worker. She told payroll that she needed standard withholding and was entitled to a tax benefit for three children under age 17. A person whose entire income is $37k in wages and has 3 kids under 17 has no need for federal withholding because anything withheld would just be refunded anyway... so none was taken out of the paycheck. Thank you both very much! I have recommended she see a CPA.
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Feb 16, 2023 17:38
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BigHead posted:Thank you both very much! I have recommended she see a CPA. The crazy thing is she just needs to go to any local preparer, she doesn't need to spend hundreds and hundreds at a cpa. She qualifies for free help too.
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Feb 16, 2023 17:53
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H110Hawk posted:The crazy thing is she just needs to go to any local preparer, she doesn't need to spend hundreds and hundreds at a cpa. She qualifies for free help too. Yeah, VITA should be able to handle this for her just fine. The situation likely isn't all that complicated, she just needs someone familiar with taxes to sit her down and ask the right questions. She doesn't have anything that I would recommend a CPA level preparer for.
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Feb 16, 2023 20:27
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H110Hawk posted:she doesn't need to spend hundreds and hundreds at a cpa. She qualifies for free help too. This is the key part.
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Feb 16, 2023 20:43
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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. Harveygod posted:Apparently not taxable with some exceptions. And for those who itemized and did receive a tax benefit from itemization, it seems to me as a layperson that revenue ruling 19-11 would apply to sort out what amount is taxable when considering standard deduction and SALT cap: (PDF) https://www.irs.gov/pub/irs-drop/rr-19-11.pdf.
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Feb 17, 2023 19:27
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Some questions around investments. Sorry if I don't use the correct lingo. First question - If I had capital loss carry over from the LAST year.. lets say its $6000 and no gains or losses THIS year. I am able to claim $3000 this year and next year I can claim the remaining $3000. I assume this statement is true. Now my question is since I had no actual capital gains to offset the $3000 I am claiming this year, does claiming the $3000 actually lower or help my tax due total amount at all? If not, I guess I am technically throwing away a $3000 offset for this year? If the statement is true, there's probably no way for me to carry over the $6000 offset is there to the next year? Second question - I received some staking rewards from Crypto last year.. I never sold any crypto. There's technically nothing for me to report right? I would report when I sell as when I sell you include the acquired and sold date right?
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Feb 21, 2023 02:39
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My understanding is that, even without any capital gains that year, you would be lowering your taxable income by $3,000 and incurring a lower tax bill as a result. So, unless you made $0, could still be beneficial.
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Feb 21, 2023 02:48
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Correct
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Feb 21, 2023 03:02
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lol internet. posted:Second question - I received some staking rewards from Crypto last year.. I never sold any crypto. There's technically nothing for me to report right? I would report when I sell as when I sell you include the acquired and sold date right? Staking rewards are like interest. Taxable at the time of receipt. That is then your cost basis for a future sale. I'm genuinely curious why so many people think this specific kind of income is not taxable.
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Feb 21, 2023 04:15
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They may be a dumb question - At my current job, I always end up owing money on my return. After getting caught by surprise my first year, I always budget for this extra payment, but it is annoying. I'm filing single with one W2 -- taxes are always pretty straightforward. I'm pretty certain I've declared every withholding to my employer. Is there anything else I should look into so they take more out of my paycheck? Or would I have to do quarterly payments on my own?
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Feb 22, 2023 03:25
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You can modify your W4 so they withhold more. But if you have a straightforward tax situation, shouldn't your withholding be pretty close to what you will actually owe?
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Feb 22, 2023 04:23
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Yeah, that's confusing me. If the W-2 you get from your job represents your entire income (no second job, no spouse with a job, no sizeable investments, etc.) then your paycheck withholdings should be nearly 100% accurate, so long as you properly filled out your W4. My guess is that there's a mistake somewhere on your W4.
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Feb 22, 2023 15:49
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How much is it off by? I'm typically within about a percent and a half, that seems reasonably close.
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Feb 22, 2023 16:00
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I'll check about the W4, but I filled it out the same way I did at my prior job. My current job does pay more so I chalked it up to being in a higher bracket. KYOON GRIFFEY JR posted:How much is it off by? I'm typically within about a percent and a half, that seems reasonably close. It's off by 2.5% of AGI
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Feb 23, 2023 02:10
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As long as the amount you're off by is less than $1000 (hence avoiding an underpayment penalty) it's actually to your benefit. The feds are loaning you free money up front to do with as you wish and payback later.
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Feb 23, 2023 02:20
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IRS publishes withholding tables so I would check your employers work as far as the amount they are withholding. Maybe someone fatfingered your W4.
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Feb 23, 2023 13:42
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How does one go about interviewing and hiring an, uh, tax advisor? Finance manager? Not sure who or what I should be talking about these things with. We have a tax return guy but he's focused on tax returns. Our income (and expenses) have ballooned in the last couple of years but we're guessing at how to structure a lot of things and finding out later on our income taxes.
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Feb 23, 2023 22:17
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My wife started working for a NY company remotely in 2022. We relocated to NY on December 23rd, 2022. Her 2022 W2 shows her address as our previous state (even though we're fairly sure she informed our move before the end of the year). Can we just "ignore" those last 10 days for tax purposes? It would make filing a lot easier. Other than our lease, we didn't even get NY ids or anything else to establish residency until January.
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Feb 24, 2023 04:59
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I might be tempted to have a brain fart and fill it out exactly as the forms state. I'm not too good at taxes.
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Feb 24, 2023 16:30
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The answer is that you need to file partial year tax returns in both states, but that won’t make much difference to how much you owe in the end, assuming New York is the higher tax rate state. If you are asking if anyone will notice if you don’t do that, that’s a personal choice.
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Feb 25, 2023 16:21
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There's only 8 days from residency to end of year. Did she even get paid in those days? Most taxes are date of payment not date of work. This might even be correct.
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Feb 25, 2023 16:27
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You're fortunate that her employer messed up her W-2. New York has taken the interesting position that remote work for a NY employer is NY source income regardless of the location of the employee. Not sure how well that position will hold up if challenged in court but it'll be fun for everyone in the meantime.
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Feb 25, 2023 16:44
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So just to be clear we’re 100% filing a New York return, it’s perfectly clear that NY taxes remote work and I didn’t meant to imply that we wanted to avoid that. But the NY return gets significantly more complex once you actually reside in NY. FreeTaxUsa at least adds a bunch of extra steps (and forms) because technically now some of your income is taxed slightly differently. I was hoping that living 10/365 days in NY was short enough that nobody would consider that a domicile and we could just say she telecommuted all year, especially since her W2 lists only one address. dpkg chopra fucked around with this message at 17:47 on Feb 25, 2023 |
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Feb 25, 2023 17:18
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Personally? I would fill out the return as the forms state it. If you differ it's going to bounce back or require corrections and be a huge pain in the butt.
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Feb 25, 2023 17:51
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H110Hawk posted:Personally? I would fill out the return as the forms state it. If you differ it's going to bounce back or require corrections and be a huge pain in the butt. Thanks this is exactly the answer I was looking for.
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Feb 25, 2023 17:53
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dpkg chopra posted:Thanks this is exactly the answer I was looking for. Have fun committing crimes.
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Feb 25, 2023 17:57
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Feb 25, 2023 18:06
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Winged Orpheus posted:You're fortunate that her employer messed up her W-2. New York has taken the interesting position that remote work for a NY employer is NY source income regardless of the location of the employee. Not sure how well that position will hold up if challenged in court but it'll be fun for everyone in the meantime. Yeah, I'm very curious how that will turn out as a NY remote worker myself. Can't imagine the nearby states like it too much. I pay nothing (on earned income anyway) to the state I live in because New York gets it all.
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Feb 25, 2023 18:46
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smackfu posted:IRS publishes withholding tables so I would check your employers work as far as the amount they are withholding. Maybe someone fatfingered your W4. I swear I have a LOT of clients this year who were under withheld on the paychecks, did they screw with the tables this year? Some of them can be explained by starting new jobs and having a “new style W-4 form, wat do?!” issue, but not all of them. Agronox posted:Yeah, I'm very curious how that will turn out as a NY remote worker myself. Can't imagine the nearby states like it too much. I pay nothing (on earned income anyway) to the state I live in because New York gets it all. I can’t see how you could establish presence with remote work legally without opening a huge can of legal worms (does a business having one office in New York suddenly mean EVERY employee has to pay taxes in New York? And if not, how do you tailor the line where it applies?). Making it more expensive to work remotely in New York vs other states would pretty much screw with the decision in the Wynne case. Though if they’re slapping New York for stupid decisions likely motivated by greed, be nice if they gave them one for always putting the total income earned rather than the amount earned in New York in the state wages box. That seems like downright deceptive practice intended to make people claim more income in New York than they actually earn.
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Feb 25, 2023 21:10
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MadDogMike posted:I swear I have a LOT of clients this year who were under withheld on the paychecks, did they screw with the tables this year? Some of them can be explained by starting new jobs and having a “new style W-4 form, wat do?!” issue, but not all of them. I feel the same way, the tables must be hosed and I think they keep revising them every year and just making it worse.
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Feb 25, 2023 23:31
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Ok, I have a question that apparently seems un-googleable. My wife and I live in NY. She works for a company that is headquartered in CA, but she lives in NY, works in the NY office, was never assigned a desk or office location in CA. When she got her W2s this year, however, she got two W2s-- one with a NY/NYC state and local line, and then one with a CA state line that has different, smaller numbers listed (about 8% of her NY/Federal wages) for CA state wages, and then CA tax withheld at 10% (~$1400). We went back and checked her paystubs, and the final paystub for 2022 also lists these same numbers of wages and withholding for CA. She emailed the HR department asking "wtf??" and they sent back a message basically saying "well we used your work locations for these days to determine state" an attached a spreadsheet that listed data points that included 17 days of "Business work travel" in CA. As far as we call tell is, those days were days we were house/dog sitting for my parents (who live in CA) for two weeks while they were travelling overseas. This was a trip entirely for our own purposes and funded entirely by us. She marked on her work calendar that her "location" was California, so people who be aware for scheduling meetings and working hours. Apparently some HR system at the company hoovered up this calendar data, decided this meant she was assigned a work location in California, and then started coming up with taxable wage and withholding numbers. What I can't work out is: - How to unfuck this. We were never California residents at any time, even by California's own guidelines published by their tax authority. I'd assume we can file a return with CA asking for the tax back, but the company has already published a W2 saying there were $X amount of CA taxable wages. - How the company computed the taxable wages number. The amount is ~ 2-3x her salary if it was just the the time we were in CA. There is a "RSU" line in box 14 on the CA W2 but it's less than the Box 16 wages, and the difference wouldn't cover 2 weeks of salary. There's basically no explanation about how that number was computed.
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Mar 6, 2023 23:34
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"Wages paid to a California resident for work done in or out of California and wages paid to a nonresident for work done in California are both subject to state income tax and are usually subject to PIT withholding." Let this be a lesson to take an actual vacation when you take a vacation.
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Mar 7, 2023 02:43
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