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Someone feel free to tell me that using TurboTax is the devil but I also know something is wrong with this situation. Situation: I lived and worked in Illinois full-time for 2022. My wife was preparing our house to sell and formally moved in July 2022. She does not work at all. We earned an estimated $60K in profit from purchasing our house in 2014 to 2022. I apparently earned $354 in Indiana sometime, but I lived in Illinois at that point. I have NO idea why TurboTax thinks the state of Illinois owes us a refund of $55K. It won't let me view the numbers specifically but I wonder if our odd living arrangement has something to do with this.
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Mar 10, 2023 02:56
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DTaeKim posted:Someone feel free to tell me that using TurboTax is the devil but I also know something is wrong with this situation. Uh, admittedly I'm having a hard time following what you're saying (what's "$60K in profit from purchasing our house" mean?), but I don't see any way to get a refund THAT big unless there was some sort of giant payment to Illinois. Thinking you've got either some serious mis-entries on there, or major bugs. Did you sell a home and have to make a withholding payment of some kind on the sale?
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Mar 10, 2023 04:03
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MadDogMike posted:Uh, admittedly I'm having a hard time following what you're saying (what's "$60K in profit from purchasing our house" mean?), but I don't see any way to get a refund THAT big unless there was some sort of giant payment to Illinois. Thinking you've got either some serious mis-entries on there, or major bugs. Did you sell a home and have to make a withholding payment of some kind on the sale? Sorry, basically our house appreciated $60K from when we purchased it in 2014 to when we sold it in 2022. The house was sold in Indiana. According to TurboTax, we shouldn't have to make a withholding payment because we had lived in it long enough. I think it's a bug in TurboTax, so I'm going to use a different software and see if I am running into the same issue.
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Mar 10, 2023 04:23
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This is why I like how FreeTaxUsa always has the draft 1040 one click away.
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Mar 10, 2023 13:37
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I figured it out, I typed a number twice for state taxes. It's frustrating because FreeTaxUSA has the draft available but there isn't an easily accessible option in TurboTax. Also Indiana can get my tax return via mail, I ain't paying money to e-file a tax refund of $5.
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Mar 10, 2023 19:23
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PRADA SLUT posted:Do I just grab a random CPA if I want to hire this out? Any idea what it would cost? Ask your friends, but honestly it's all doable DIY if you want to spend the time doing a bunch of math. If you get a CPA interview them real quick, which might be literally impossible right now due to it being the heart of tax season. Make sure they understand ESPP, Options, and RSUs, and the tax nuances of them. My guy said "oh yeah you have to adjust the basis based on the 3922 info" and I hired him. Depending on the number of transactions, types of transactions, and overall complexity it could be like $200-500. I spent $950 last year because I got cute with my shares. Don't get cute.
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Mar 10, 2023 19:37
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Are there any sort of tax implications when within a few weeks the following happens for one tax payer? 401k rolled over within the same brokerage to a Rollover IRA account (401k holdings are liquidated automatically to cash) Traditional IRA from a different brokerage is rolled over to the same Rollover IRA account that was mentioned above I'm reviewing this and it is not 100% clear to me https://www.irs.gov/retirement-plan...0rolled%20over.
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Mar 11, 2023 04:31
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Nope.
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Mar 11, 2023 05:41
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H110Hawk posted:Depending on the number of transactions, types of transactions, and overall complexity it could be like $200-500. I'd say $400 is probably your floor for this, unless they're very old school and haven't been paying attention to market prices. HR Block will charge you $300 easily and not provide any guidance or analysis on this. There's a severe shortage of skilled talent in the field, and lots of firms are either not accepting new clients or have raised their minimums significantly
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Mar 11, 2023 09:11
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There's also a premium for engaging a CPA this close to a tax deadline, or there should be
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Mar 11, 2023 16:34
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Yeah I would expect to slam your best bet on tax due into the IRS along with an extension, then 2 weeks after the deadline start calling around. Either way, it's hundreds of dollars to get started. And I wouldn't expect anyone to be taking on new clients right now.
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Mar 11, 2023 17:20
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Ungratek posted:There's also a premium for engaging a CPA this close to a tax deadline, or there should be SOME tax preparers, anyway. I just get extra stress at this time instead (going in yet again on my day off tomorrow to desperately try to claw back some of the backlog).
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Mar 12, 2023 03:54
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H&R block is poo and pee mixed, I've had nothing but issues trying to file my simple return. Which company is the best e-file company currently? Up to this point I had been using H&R without issues but with their web support failing, I've been forced to look elsewhere. thank you 
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Mar 13, 2023 20:10
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freetaxusa.com (not a scam)
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Mar 13, 2023 22:37
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withak posted:freetaxusa.com (not a scam) Yeah I used that last year and it's really good, despite the absolutely abysmal name. Fidelity had a deal for free (as in actually free Federal and State) Turbotax this year and it's so bad I'm actually considering going back and redoing them in freetaxusa for money. edit: though I do remember they had one limitation where you couldn't upload pdf attachments for 1099-B worksheets, and had to print and mail them to the IRS for some reason. I think that was the only part I disliked.
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Mar 13, 2023 22:41
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US Income Tax Thread: freetaxusa.com (not a scam)
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Mar 13, 2023 23:27
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Freetaxusa also doesn't support buying I-bonds with your return, if that was a concern. Otherwise confirming that they are not a scam and probably the best deal around now that TaxAct have decided to move into the "it's not gouging if it's 10% cheaper than TurboTax" zone.
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Mar 13, 2023 23:30
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https://www.taxhawk.com is the same site if it makes you feel better
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Mar 13, 2023 23:36
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Tricky Ed posted:Freetaxusa also doesn't support buying I-bonds with your return, if that was a concern. They do support it now for tax year 2022.
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Mar 13, 2023 23:54
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smackfu posted:https://www.taxhawk.com is the same site if it makes you feel better That's hilarious. It even uses the same password set. They must have realized how bad it was but it was too late to fully change lol..
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Mar 14, 2023 00:05
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mrmcd posted:Yeah I used that last year and it's really good, despite the absolutely abysmal name. Where do you see Fidelity + Turbotax being free - https://www.fidelity.com/go/marketplace/overview I only see $20 off here. Free would be even better
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Mar 14, 2023 00:32
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withak posted:freetaxusa.com (not a scam) right on thanks for this! (not a scam)
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Mar 14, 2023 00:35
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Busy Bee posted:Where do you see Fidelity + Turbotax being free - https://www.fidelity.com/go/marketplace/overview Some googling suggests it only shows up when you have either the $250,000 or $1 million assets level. It should be at the bottom of the landing page after logging in. Edit: or maybe "active trader" too? Either way there's some secret formula depending on assets or trading activity that triggers it. Apparently you also have to have "beta view" on. mrmcd fucked around with this message at 00:46 on Mar 14, 2023 |
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Mar 14, 2023 00:41
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The in-laws just immigrated to the US, with a green card. They have a foreign government pension that is accumulating in a foreign bank account. Is that the kind of thing they need a CPA to sort out, go to local HR Block in the strip mall, or can they muddle through it with Turbo Tax? I am a complete tax idiot.
BigHead fucked around with this message at 01:51 on Mar 14, 2023 |
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Mar 14, 2023 01:45
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BigHead posted:The in-laws just immigrated to the US, with a green card. They have a foreign government pension that is accumulating in a foreign bank account. Is that the kind of thing they need a CPA to sort out, go to local HR Block in the strip mall, or can they muddle through it with Turbo Tax? I am a complete tax idiot. TurboTax has a section on foreign income. Depending on the amount in the foreign bank account, you may have to file a FBAR with the Treasury. It's a pretty simple process.
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Mar 14, 2023 03:13
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The pension might be a PFIC, which would really suck (Form 8621 and various anti deferral rules might apply if so). Also in addition to the FBAR, they might need a form 8938 (if they are over the filing threshholds).
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Mar 14, 2023 05:51
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Generally government pensions are not PFICs, because they are usually simply a promise to receive a certain fixed income, rather than ownership of any particular assets or rights to passive income streams. If the state pension fund does well in its investments, that doesn't automatically entitle the pensioner to more income the way a private investment fund would, for example.
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Mar 14, 2023 05:58
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BigHead posted:The in-laws just immigrated to the US, with a green card. They have a foreign government pension that is accumulating in a foreign bank account. Is that the kind of thing they need a CPA to sort out, go to local HR Block in the strip mall, or can they muddle through it with Turbo Tax? I am a complete tax idiot. Depends on how comfortable they are with the reporting. If you do contact a tax preparer, be sure to mention the specific issue so you get somebody familiar with it, FBAR/8938 are not common to your basic preparer, and any of the other foreign forms are even worse (not sure how much I trust my skills with them, and I do a lot of foreign-related stuff since I juggle ITIN applications).
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Mar 14, 2023 06:00
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Gabriel Grub posted:Generally government pensions are not PFICs, because they are usually simply a promise to receive a certain fixed income, rather than ownership of any particular assets or rights to passive income streams. I agree, but I've seen things like individual retirement accounts holding mutual funds and the like that sometimes are colloquially thought of as pensions, so I thought I'd at least raise the issue. Their taxes could be relatively simple or complicated, probably worth a consult with someone who is familiar with tax issues for non-residents moving to the US.
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Mar 15, 2023 22:32
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Hopefully this is the appropriate thread but -- I have an LFSA [for dental and vision] and a general HSA. I assume if I have an expensive dental procedure that my LFSA doesn't fully cover, I can use whatever is in the LFSA and bill the HSA for the rest?
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Mar 16, 2023 10:15
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Let me know if this is the right thread for this but I just wanted to double-check my math for filling out the allowances form for my state, the California DE-4. I just recently had my first kid in 2023, and I'm married, filing jointly (MFJ). My wife and I both work 1 job each, filing as W2. I make about 2-3x her salary. I believe I should claim 1 allowance for self, 1 allowance for child (2 total for me), and my wife on her DE-4 should claim only 1 allowance for herself. Is that correct, or should she also claim 1 allowance for herself and 1 allowance for child on her DE-4? Thanks. We're not looking to itemize deductions this year.
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Mar 17, 2023 01:39
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With my most recent company I have a meager ~$20k 401k. My wife has the giant half million dollar+ 401k she's been diligently contributing to since college (in addition to other retirement planning) thanks in advance for your concern about my retirement in advance What is the most tax efficient way to liquidate this for a down payment on a house. Assume I'm in a near top tax bracket for this exercise. Pretty sure I'm looking at a 50% penalty for early withdrawal etc
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Mar 17, 2023 05:37
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Hadlock posted:With my most recent company I have a meager ~$20k 401k. My wife has the giant half million dollar+ 401k she's been diligently contributing to since college (in addition to other retirement planning) thanks in advance for your concern about my retirement in advance Don't. Stop depositing money into your 401k instead.
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Mar 17, 2023 05:42
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If you need the money now, the best thing to do would have been to stop contributing three years ago, but if that's not an option there's always a loan from the 401(k) if that's a possibility. According the IRS, purchasing a primary residence is a 'safe harbor' and so the 10% early withdrawal penalty wouldn't apply to that. No such luck if it's a second house or beach house though.
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Mar 17, 2023 05:55
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sullat posted:. According the IRS, purchasing a primary residence is a 'safe harbor' and so the 10% early withdrawal penalty wouldn't apply to that. No such luck if it's a second house or beach house though. This is for primary house Can I claw back that 10% if I did this three years ago spring 2020 and didn't register the 10% penalty on my taxes in 2021 H110Hawk posted:Don't. Stop depositing money into your 401k instead. kind of late for that we pushed our deposit to escrow this afternoon
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Mar 17, 2023 06:36
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Hadlock posted:This is for primary house Are you saying that you made an early withdrawal three years ago, never paid taxes on it, and now want to retroactively do the paperwork? If so, that's definitely "pay money to a professional" territory.
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Mar 17, 2023 07:15
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I made an early withdrawal, they preemptively withheld We have a tax professional just getting our ducks in a row before we talk to him next week Hadlock fucked around with this message at 08:17 on Mar 17, 2023 |
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Mar 17, 2023 08:12
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Hadlock posted:I made an early withdrawal, they preemptively withheld So the question to ask is "can I amend my 2020 taxes to remove the 10% early withdrawal penalty because I used it to purchase a primary residence." Bring the 1099-r and the tax return in question and your tax guy will figure it out from there.
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Mar 17, 2023 12:36
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The 2020 distribution might have already not paid the early withdrawal penalty due to the COVID distribution rules, so you will want to double check that as well.
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Mar 17, 2023 13:25
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I have a feeling I'm going to have to work on my mom's taxes this year. I avoided doing it last year (she put down money for my sibling's house, I didn't want to get involved), so, fun. My question: my dad passed away at the beginning of this year (first week of January). They filed jointly. How much is this going to complicate things? I'm assuming that there won't be anything too different for 2022 since he lived through the entire year. I've just been plugging numbers into FreeTaxUSA for years and I am very simple financially, so I have little experience in this stuff. Though I noticed that the software asked if anyone on the return (aka, me!) has passed away when I did mine last week. Uthor fucked around with this message at 14:39 on Mar 17, 2023 |
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Mar 17, 2023 14:31
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