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None of this timeline adds up for the three quarter stories we're being given. Either way go talk to someone in person, probably after April 15th at this point.
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Mar 17, 2023 15:09
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withak posted:freetaxusa.com (not a scam) Thank you so much for this! 20min and taxes are finished! much better than H&R Block!
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Mar 17, 2023 21:21
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Is there a reason not to open a trad IRA at the same place I hold my 401k and other company-sponsored retirement (Fidelity)? Just gonna throw cash at a boring fund to lower taxable income a bit.
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Mar 19, 2023 03:57
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PRADA SLUT posted:Is there a reason not to open a trad IRA at the same place I hold my 401k and other company-sponsored retirement (Fidelity)? Just gonna throw cash at a boring fund to lower taxable income a bit. No. That's fine to do. You can rollover any old accounts from previous brokerages to consolidate down into fidelity if you want. Only thing I can think of would be to make sure you don't over contribute accidentally by putting in >6500 into old and new IRAs combined.
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Mar 19, 2023 04:04
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Actually, I'm on Not A Scam Tax USA and trying to determine if it's worth opening an IRA. My MAGI was $300k, which I believe is over the limit on what I could claim. If I put in fake numbers to the software, it tells me that I get gently caress all from tax deductions for a trad IRA due to having a work retirement plan and going over MAGI. Does this sound right?
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Mar 19, 2023 04:13
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You may not get to deduct the original contribution, but the gains are tax-free. DO IT.
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Mar 19, 2023 04:56
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withak posted:You may not get to deduct the original contribution, but the gains are tax-free. DO IT. Be sure that you are able to then convert the traditional IRA to Roth. Non-deductible contributions to IRA/401k that don't have a way to become Roth are worse than just putting that money in a regular taxable account.
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Mar 19, 2023 05:26
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Xenoborg posted:Be sure that you are able to then convert the traditional IRA to Roth. Non-deductible contributions to IRA/401k that don't have a way to become Roth are worse than just putting that money in a regular taxable account. I assume I can contribute $0 to a Roth IRA directly because I'm over AGI, how would I be able to open a trad and convert? Then, better to open a Trad IRA, put in 6k and get no tax deduction, or better to put that 6k in a brokerage or similar non-tax-related account?
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Mar 19, 2023 05:46
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There is no income limits on contributing to a traditional IRA non deductible and then converting it to Roth. The only real caveat is that if you already have a traditional IRA the taxes are a little more complicated, but given your AGI you would probably be well served converting all traditional IRA you had anyways unless it’s many 100ks. Google your brokerage plus “Backdoor Roth IRA” for step by step instructions.
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Mar 19, 2023 06:32
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I have an odd situation (don't we all?) that I'm not quite sure how to handle. There's actually two parts, some guidance would be appreciated: 1. Both my children were provided monetary compensation while participating in the Pfizer COVID vaccine trial for under 5s, and I received 1099-MISCs for them for 2022. The amounts are $1010 and $815 if that matters. Arguably to complicate things further, part of the compensation was received in 2021, but we only ever received 1099-MISCs for 2022 which I believe reflects the total amount of their compensation. Since this amount is over $400 (is this the limit?) I think I need to file 2022 tax returns for both of them as self-employed with the 1099-MISC being their only source of income? 2. To complicate things further, I think my wife filled out her tax ID for my son and not my son's. So one of the 1099-MISCs is in my wife's name, while the other is in my daughters. Technically this is incorrect, but as we'd be paying tax on it either way, I wouldn't have to file separately for my son if we leave it as is. Should I not bother pursuing correction? Sorry for the questions, I really never considered my under five children would be self-employed. We really just wanted to protect them as best we could during the pandemic.
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Mar 20, 2023 17:20
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If you can, slap it all in a Roth IRA in their names. Pay them back over time if you want them to have the money sooner out of regular dollars. As for what to do, do their taxes using any number of free file things (freetaxusa?). If the ssn is wrong correct it with Pfizer and get a new form. Fill out extensions if necessary. Don't worry about the 2021 thing it will only complicate your life. They aren't going to owe much of anything regardless. Fill it out as it's on the forms unless the ssn is wrong, then correct that first. H110Hawk fucked around with this message at 18:11 on Mar 20, 2023 |
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Mar 20, 2023 18:08
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H110Hawk posted:Fill it out as it's on the forms unless the ssn is wrong, then correct that first. The other form has my daughter's name, correctly, but a blank TIN. I'm pretty sure I gave them the correct TIN (her SSN) on the I-9 (?). I assume the IRS is "aware" of them since I've had to file our taxes in the past claiming them as dependents. Yeah I'll contact Pfizer too, thanks!
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Mar 20, 2023 18:43
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Those amounts appear to be under the filing threshold. If they didn't have any tax withholding, and they are under the threshold, don't bother. Get the one 1099 put in the right name, or you'll need to include it with your wife's income.
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Mar 20, 2023 20:08
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H110Hawk posted:If you can, slap it all in a Roth IRA in their names. Pay them back over time if you want them to have the money sooner out of regular dollars. Would it be better to put that money in a 529 college fund they can access at 18, rather than Roth? If they don't need it at 18 they could roll it over into a Roth?
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Mar 20, 2023 20:22
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Hadlock posted:Would it be better to put that money in a 529 college fund they can access at 18, rather than Roth? If they don't need it at 18 they could roll it over into a Roth? It's splitting hairs but for such a small amount I would do a Roth and just reimburse them and pray I manage to get enough sense into them about money smarts by 18. Generally using the Roth account which has hopefully tripled as the example. I'm also hoping to convince my kids to do that whenever they get jobs in the future. My parents never really taught me to save just that I "should do it."
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Mar 20, 2023 20:32
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Guy Axlerod posted:Those amounts appear to be under the filing threshold. If they didn't have any tax withholding, and they are under the threshold, don't bother. Get the one 1099 put in the right name, or you'll need to include it with your wife's income. I already have 529s for both kids, but I assume those contributions are only deductible from our state taxes. Fundamentally I'm "OK" paying tax on the amount if I need to, I just want to make sure I do it correctly. I'm a little less OK with paying 3xTurbo Tax now to do it I guess. ExcessBLarg! fucked around with this message at 20:52 on Mar 20, 2023 |
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Mar 20, 2023 20:49
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Your kids are all under the free filing thresholds I assume. Either way a literal paper form is as easy as it gets for them. The roth ira thing means they never pay taxes on it again and you're in a unique position to take advantage of it for them since they need earned income to do it.
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Mar 20, 2023 21:56
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ExcessBLarg! posted:The $1,150 limit for "unearned" income for someone declared a dependent? I guess I wasn't sure if a 1099-MISC is "earned" or "unearned", or maybe that only matters for amounts above $1,150? Is it marked as "other income" on the 1099-MISC? Not sure you can treat it as earned income then, that's supposed to come on 1099-NEC now and I think "paid for clinical trial" is kind of dubious to argue as business income, especially for very young kids. I'd have it as other income on Schedule 1 myself.
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Mar 21, 2023 05:22
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MadDogMike posted:Is it marked as "other income" on the 1099-MISC? I went through the IRS interactive tax assistant and since my kids have earned income of $0 and unearned income less than $1,150 it seems they do not have to file. If their income exceeds $2,300 then I guess I would be subject to additional tax, which I wasn't aware of before, but fortunately isn't the case. This is unrelated, but for Interest/Divident income parents can elect to include them on their own taxes, so that they don't have to file separately for their children. Is there actually a tax rate advantage to that though?
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Mar 21, 2023 20:43
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Good news everyone! Someone made an anime dating simulator that does your taxes. https://store.steampowered.com/app/2363850/Tax_Heaven_3000/
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Mar 22, 2023 04:39
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xarph posted:Good news everyone! Someone made an anime dating simulator that does your taxes. https://store.steampowered.com/app/2363850/Tax_Heaven_3000/ Love to enter my social security number into random steam games!
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Mar 22, 2023 05:01
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what in the hell? there’s a breaking-bad-jesse explaining to walt meme in there somewhere about how he messed up his taxes and got audited, but I’m too tired.
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Mar 22, 2023 05:10
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So, my mom passed in August 2021. I sold her house and it closed in February 2022. There was no probation for the estate and im the sole heir. I got a 1099-s for the amount the house closed for. What do I do? Ive been a 1040Ez person most of my life. Is this a capital gains situation? Should i hire a tax pro or a cpa? Any insight is appreciated. Tia
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Mar 22, 2023 23:36
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xarph posted:Good news everyone! Someone made an anime dating simulator that does your taxes. https://store.steampowered.com/app/2363850/Tax_Heaven_3000/ Literally got removed after you posted that
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Mar 22, 2023 23:47
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ZombieCrew posted:So, my mom passed in August 2021. I sold her house and it closed in February 2022. There was no probation for the estate and im the sole heir. I got a 1099-s for the amount the house closed for. What do I do? Ive been a 1040Ez person most of my life. Did you talk to an estate planning attorney? How did you sell the house without probate? Basically the value on the date of her death is your basis, anything above that is cap gains, but if you sold it inside the estate it does not matter unless mom had 8 figures in assets.
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Mar 22, 2023 23:57
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H110Hawk posted:Did you talk to an estate planning attorney? How did you sell the house without probate? Basically the value on the date of her death is your basis, anything above that is cap gains, but if you sold it inside the estate it does not matter unless mom had 8 figures in assets. I talked to the attorney that set up her estate. He said probate was not necessary due to the size of it. The house was in a trust. The trust was not 8 figures. Im the executor of the trust.
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Mar 23, 2023 00:39
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You possibly avoided probate because the house was in a trust and thus outside the estate. Unfortunately you may have other issues to resolve depending on what the trust document says
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Mar 23, 2023 03:14
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xarph posted:Good news everyone! Someone made an anime dating simulator that does your taxes. https://store.steampowered.com/app/2363850/Tax_Heaven_3000/ Ah it’s a MSCHF thing. https://www.yahoo.com/lifestyle/mschfs-tax-heaven-3000-dating-095632728.html
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Mar 23, 2023 13:14
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I collected all my tax docs and provided them to my accountant on Monday. They told me that they’d need to file an extension because he’s overwhelmed and that I’d need to prepay the IRS by 4/15 an approximate amount based on last years taxes. Is that correct? Last year was the first time I actually had someone prepare my taxes and I got him everything relatively quickly, so there was no need for an extension. This year, I was on vacation until 3/9 and didn’t get him the docs until after. I’ve never been in this situation, so I’m just checking to confirm this is somewhat normal.
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Mar 23, 2023 18:52
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Cacafuego posted:I collected all my tax docs and provided them to my accountant on Monday. They told me that they’d need to file an extension because he’s overwhelmed and that I’d need to prepay the IRS by 4/15 an approximate amount based on last years taxes. Is that correct? Yes
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Mar 23, 2023 18:53
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Extremely normal
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Mar 23, 2023 19:49
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I over contributed to a Roth IRA in 2022. I've kicked off the withdrawal process for the over contributed amount with Vanguard here in the last few days, will the 1099-R that's generated be for tax year 2022 (so I'll need to wait on it to finish filing), or would it be for 2023 and I'll use it next year? I can't find clear documentation on it, from things I've read it sounds like it's next year, but if that's the case I'm not sure how the IRS knows that I've withdrawn the extra contribution so it feels like they'd charge me for it
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Mar 24, 2023 16:22
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Ungratek posted:Extremely normal Thank you both!
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Mar 24, 2023 16:35
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wyoak posted:I over contributed to a Roth IRA in 2022. I've kicked off the withdrawal process for the over contributed amount with Vanguard here in the last few days, will the 1099-R that's generated be for tax year 2022 (so I'll need to wait on it to finish filing), or would it be for 2023 and I'll use it next year? I can't find clear documentation on it, from things I've read it sounds like it's next year, but if that's the case I'm not sure how the IRS knows that I've withdrawn the extra contribution so it feels like they'd charge me for it Form 5329, line 23 is where you report excess Roth contributions. The instructions say to not include withdraws made by tax due date. Then, you should get a 1099-R next year with the code 8 in box 7 since the distribution was made in 2023.
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Mar 27, 2023 12:22
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Self-Employed Health Insurance Deduction question I have a question about eligibility for self-employed health insurance deductions. My spouse is self-employed (sole proprietor) with a net profit on their Schedule C. We’re married filing jointly and I earn a W2 wage. My job does not offer insurance, so we buy a couples plan on the New York State of Health marketplace. So far so good. We should be eligible to deduct the premiums. The wrinkle is this: I did all the work to set up the health insurance and typically use my credit card to pay. On eligibility, publication 235 says: quote:The insurance plan must be established, or considered to be established, as discussed in the following bullets, under your business. Our money and expenses are totally shared, so it was arbitrary who actually set up the health insurance plan - I just had more time and inclination to fight with the marketplace. Are we really out of luck on claiming this deduction due to who logged into New York State of Health? Or is it sufficient that both of our names are on the plan?
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Mar 28, 2023 03:57
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Actually, in looking closer, I realize that the Self-Employed Health Insurance Deduction is a personal deduction, not a business deduction. It goes on Schedule 1 not Schedule C. Maybe offers more justification to take it in our case...
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Mar 28, 2023 14:46
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 accountant got me back my taxes in a timely manner. Like some kind of psycho he checked to apply my refund to my 2023 taxes. (I've also never had a refund through him so he didn't have my ach info.) I'm fairly unlikely to owe this year either as long as I keep it simple again.
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Mar 28, 2023 15:12
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H110Hawk posted:
Don't forget that for next year or it can cause delays
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Mar 28, 2023 16:41
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sullat posted:Don't forget that for next year or it can cause delays I haven't signed and filed yet I'm going to ask them to check the box and fill it in. For $975 I don't feel guilty. 
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Mar 28, 2023 17:34
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Do I understand correctly that long-term capital losses are actually worse than short-term capital losses? Because they will subtract from your long-term capital gains first, which would otherwise be taxed preferentially?
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Mar 28, 2023 18:27
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