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So the new accountant I found this year, after sounding very competent and whatnot on the phone, has decided to suddenly go incommunicado as the deadline approaches. Wasn't pestering the poo poo out of him or anything, just an email last week and a phone call two days ago asking "hey whats the status, think we're gonna get done, or need an extension?" I got everything to him at the beginning of march, so this wasn't a last minute delivery. I dunno if this guy got hit by a bus, covid, can't deal with stress? Or is just an rear end in a top hat. Sooooo. I'm guessing I probably need to file that extension myself if I haven't heard from him by Monday. Form 4868 looks pretty easy on freefilefillableforms. My question is, he told me he did an extension for my S corp before the march deadline. Do I trust that? Should I file this 7004 myself just in case he was completely incompetent - or if he didn't get it done then, is it just too drat late now anyways? Luckily I'm *fairly* sure I'm getting a refund this year, so no need for sending in additional payment. Silver lining for a lovely year in the market. Goddamn, why is this so hard.
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Apr 14, 2023 18:56
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H110Hawk posted:Didn't the income happen when the RSU's vested, not when they went public? What was the "valuation" then? I'm being a bit cautious because my wife is still in contact with people at the company, and I don't want to get on the wrong side of "inside information" Timeline: Day 0: failed to make their scheduled IPO/de-SPAC Day1: Went public at $10 a share, closed at $12. RSU's did not go into the employees account. Day 2: Closed at $5 Day 5: RSUs go into employees account at a value of $2.60 per share. Company later issues communication that this is the value for tax purposes. No shares are withheld for taxes. My wife has a taxable income of $2.60 * X shares, lets say 10,050. $26130 of taxable income Day 8: Wife sells all but 50 shares at $3.00 per share. This is taxable income to us at (3-2.6)* 10,000 shares or $4000. Great, no tax loss carry forward for a decade. Day 12: Company realizes that RSUs count not us as income tax, but as a FICA tax event, and that the FICA tax is due ASAP (so I'm told, I'm could be wrong). (We are told) Company will pay FICA tax, and then charge employees for the FICA amount. Former employees are laughing at the idea of writing a check back to the company. I know we are on the hook for the income tax from this event at our tax rate, but I question if the company can come back to us for the FICA tax that was paid. I'm inclined to tell them to pound sand.
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Apr 14, 2023 18:57
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I mean always use fake whole numbers because it makes life easier. If you'e only paid federal income tax and not the employee portion of FICA then that's a valid tax. Either way, if you didn't experience the loss then it's impossible to lose money on the deal right? You just want to make 6.2% more? Does she normally hit the fica max in a year? (2023 it's $160,200 in income) If so, it's going to zero out in the end because you will get the money back at the end of the year. Either way in your story the only part that matters as I understand it is "day 5" - everything else is irrelevant if she never had control over the shares prior to them being at $2.60. You then sold at a profit. Congratulations.
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Apr 14, 2023 19:24
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They could have done a sell to cover at 2.6 instead of 3. Did they have any taxable wages this year? (That year?) They may be able to recharacterize some of the previous income tax withholding as payroll tax. You will then owe the IRS as if you were severely under withheld.
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Apr 14, 2023 19:32
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I made like $1500 in Maryland last year and I've been trying to pay my estimated tax on that for like a week but they won't approve my account creation on their payment website and aaaaaaaargh. Now I get to file a paper extension form and mail them a check to cover the taxes I'm pretty sure I owe and then make everything take longer because paper's involved now. I'll admit I don't have experience paying taxes in a bunch of states, but this is the first state I've seen that requires approval to give them money. Just let me give you money Baby, please
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Apr 14, 2023 20:23
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Family member had a major surgery about a month ago and he was just readmitted to the hospital and we don't know how long it may be. This extension form I am looking at has lines for estimates but we don't know where all his paperwork is so I don't really know what to do.
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Apr 14, 2023 23:05
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HungryHungryHobo posted:Family member had a major surgery about a month ago and he was just readmitted to the hospital and we don't know how long it may be. This extension form I am looking at has lines for estimates but we don't know where all his paperwork is so I don't really know what to do. Just file it the potential penalties are pretty small and he can probably get them waived if needed.
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Apr 15, 2023 00:31
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I'm wondering if I made an error when filing my tax return. My fiancee and I bought a house this year, but since we're not married we're filing separately. When going through the application on TurboTax online, it asked me if I bought property this year (I did), what the mortgage value was (I entered), and if I was not the sole name on the mortgage (I wasn't). I remember entering the full amount of the mortgage. My fiancee is now quite upset at me, saying that I claimed the full amount of the mortgage. I don't remember seeing any question asking if I owned 50% of the mortgage, or being told I should only enter half a value. I already submitted my taxes last week; looking through the 1040 return document I got from TurboTax, I don't see any lines anywhere detailing the mortgage. Did I gently caress up, and so how do I find out and is it possible to amend? I don't see changing a mortgage amount in the "amend" section of TurboTax.
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Apr 15, 2023 14:57
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The mortgage value doesn’t matter what matters is the interest/points paid and the property tax paid and it only matters if you’re not taking the standard deduction. TurboTax asks how much you paid for these things ie if you paid half the mortgage payment then you paid half the property tax so you don’t get to deduct all the property tax twice obv.
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Apr 15, 2023 15:03
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If the mortgage and the relevant tax docs are in both your names, you just need to make sure that the total you both deduct adds up to the total on the forms. How you split the deductions is up to you and your ability to prove that its reasonable if you get audited. My girlfriend and I split our house payment roughly 67/33, so I say I pay all the tax/interest and we split the principle 50/50. So I itemize and deduct it all and she does standard deduction. Most* filers wont be able to get over the standard deductions without a mortgage anyway, and depending on the size of your mortgage each getting half the deduction might not either.
Xenoborg fucked around with this message at 15:27 on Apr 15, 2023 |
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Apr 15, 2023 15:25
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Are you both taking the standard deduction? If so it's a $0 difference for federal taxes how it shakes out. If one of you is itemizing it would be smarter to give them most or all of the the mortgage. Either way you can amend it if you realize that you made a mistake, it's not something to be upset about in a serious way. Lesson learned you guys should be talking about this stuff as you're effectively married now just with none of the tax benefits.
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Apr 15, 2023 15:33
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Obliterating the SALT cap without even trying and no longer having the personal exemption really makes me appreciate how hard Donald fought for us middle class people thank you so much
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Apr 15, 2023 17:03
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H110Hawk posted:Are you both taking the standard deduction? If so it's a $0 difference for federal taxes how it shakes out. If one of you is itemizing it would be smarter to give them most or all of the the mortgage. Either way you can amend it if you realize that you made a mistake, it's not something to be upset about in a serious way. Marriage... tax... Benefits??
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Apr 15, 2023 18:26
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Tricky Ed posted:I made like $1500 in Maryland last year and I've been trying to pay my estimated tax on that for like a week but they won't approve my account creation on their payment website and aaaaaaaargh. You’d love Delaware then; they had a way to pay taxes online pretty simply, but they moved it to a new website this year and now you can’t pay any tax on a return unless you’re responding to an actual bill. You can maybe do estimates if I read the site right, and I think pay with an extension online, but otherwise the only way to pay a balance due is to report a direct debit directly at filing (and I think they’ve been bungling several of those too judging by my clients) or mail a check with a voucher. How the hell you go from a good system to virtually none at all with just a website move is beyond me, but they managed.
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Apr 15, 2023 21:36
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Is it normal to owe at the end of the year if you claim 0? Single income no dependents, just enough deductions to file itemized but barely. I've owed every year on federal since the Trump tax hikes.
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Apr 16, 2023 18:09
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Ever since the TCJA the federal withholding formula has been wonky. Its a combination of a new allowance system that isn't 1:1 with the old so sometimes your paper work is just wrong due to admin error, and the new formals even when used right just withholding less. The later is probably political games about perceptions on how big your paycheck is and being annoyed at taxes when you have a bill due.
Xenoborg fucked around with this message at 22:51 on Apr 16, 2023 |
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Apr 16, 2023 18:24
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just as a heads up for anyone who did a backdoor roth through vanguard and then closed the now fully-converted trad IRA (it's auto-closed at EOY by VG is the balance is zero): your 1099-R for the closed trad IRA will NOT be displayed on the default (new scheme) vanguard UI. you have to click on a link about missing documents to go back to the OLD vanguard UI website, which actually has ALL the relevant tax year documents (including for closed accounts). just no  large enough for all the repeated failings of vanguard's "transition" to a new web UI and its related mobile app
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Apr 16, 2023 19:43
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pmchem posted:(it's auto-closed at EOY by VG is the balance is zero):
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Apr 16, 2023 20:28
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smackfu posted:I’ve never had that happen. hmm, I don't recall asking a VG rep to specifically do it, but I also didn't click the button myself. maybe I'm misremembering on that point. regardless, it's gonna be a common thing for people who do fully converted backdoor roths, where the (temporary, like only need for less than a week) trad IRA is closed after conversion. if you're doing this with VG -- watch out for that 1099-R hidden away on an old non-default page!
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Apr 16, 2023 20:30
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Xenoborg posted:Ever since the TCJA the federal withholding formula has been wonky. Its a combination of a new allowance system that its 1:1 with the old so sometimes your paper work is just wrong due to admin error, and the new formals even when used right just withholding less. The later is probably political games about perceptions on how big your paycheck is and being annoyed at taxes when you have a bill due. It's the stupidest loving thing and is 100% so that people would go "THANK YOU DADDY TRUMP FOR THE EXTRA MONEY IN MY PAYCHECK" but surprise, no one loving notices the extra money in their paycheck when they end up with a bill at the end of the year.
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Apr 16, 2023 21:39
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Epi Lepi posted:It's the stupidest loving thing and is 100% so that people would go "THANK YOU DADDY TRUMP FOR THE EXTRA MONEY IN MY PAYCHECK" but surprise, no one loving notices the extra money in their paycheck when they end up with a bill at the end of the year. Hot drat! My every other week paycheck went up but $100! Praise jesus and pass the
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Apr 16, 2023 21:56
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I thought the IRS "fixed" the withholding tables or something after that first year when so many people got hit with huge tax bills they were automatically waiving underpayment penalties?
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Apr 17, 2023 00:46
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mrmcd posted:I thought the IRS "fixed" the withholding tables or something after that first year when so many people got hit with huge tax bills they were automatically waiving underpayment penalties? Sure doesn't look like it to me right now; SO many drat under-withheld people.
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Apr 17, 2023 03:32
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MadDogMike posted:Sure doesn't look like it to me right now; SO many drat under-withheld people. pmchem posted:just as a heads up for anyone who did a backdoor roth through vanguard and then closed the now fully-converted trad IRA (it's auto-closed at EOY by VG is the balance is zero):
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Apr 17, 2023 04:25
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MadDogMike posted:Sure doesn't look like it to me right now; SO many drat under-withheld people. Every year it's been worse and worse and I'm so tired of people being like "But I always got refunds in the past?!!?!" Not anymore bitch! Get over it!
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Apr 17, 2023 05:52
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Speak for yourselves! I have two kids and we got a massive refund! that was still several grand short of just our medical expenses alone for the past year.
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Apr 17, 2023 15:26
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Epi Lepi posted:If you're due an abnormally large refund from them there's good odds that NYS will send you a letter asking you to justify your non-resident allocation. You will need to get a letter from your employer stating that you working from home was for their convenience, NYS will just blanket deny you without that. Just to come back to this thread for Tax Day, I ended up ditching my plan since (1) I didn't want to deal with the audit and getting the employer involved, and (2) turns out a guy tried almost this exact line almost 30 years ago and failed to get it past the New York tax authorities: Matter of Annitto
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Apr 18, 2023 19:37
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Welp, count me among the under-withheld. $7500 US funbucks out the door. Who can help me adjust me and my wife's withholdings, for the rest of the year, to ensure this doesn't happen again in 2024? And by that, I mean do I need an accountant? A tax lawyer? Good God, people, just tell me how much needs to come out of me and my wife's taxes! Fake edit: this is slightly complicated by the fact that my wife is a teacher, pays no social security, doesn't get paid during the summer, and receives a lump sum payment at the end of the year. Too complicated for online tax withholding calculators.
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Apr 19, 2023 01:43
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Do estimated tax payments of $1900 a quarter?
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Apr 19, 2023 02:03
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Fill out a withholding worksheet completely, look at what's being withheld from her regular paychecks, and true up quarterly. Make sure you account for multiple jobs or whatever if that's your case.
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Apr 19, 2023 02:45
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H110Hawk posted:Fill out a withholding worksheet completely, look at what's being withheld from her regular paychecks, and true up quarterly. Make sure you account for multiple jobs or whatever if that's your case. I have no idea what this means. Sorry. I'm a total tax noob 
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Apr 19, 2023 02:54
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null_pointer posted:I have no idea what this means. Sorry. I'm a total tax noob Edit: The 1040ES worksheets do include provisions for factoring in things like the self-employment tax you'd pay if Social Security taxes aren't being taken out of your wife's pay Peyote Panda fucked around with this message at 03:55 on Apr 19, 2023 |
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Apr 19, 2023 03:50
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Also, "true up" means "pay the difference."
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Apr 19, 2023 04:26
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Peyote Panda posted:Edit: The 1040ES worksheets do include provisions for factoring in things like the self-employment tax you'd pay if Social Security taxes aren't being taken out of your wife's pay She likely is opted out of Social Security and does not owe them. CalPERS pension earning employees (California Teachers - a non-trivial population) are opted out of social security. null_pointer posted:I have no idea what this means. Sorry. I'm a total tax noob No problem, we're all noobs at some point. Work out out how much "Tax" your family will owe at the end of the year in total. This isn't withholding, it's line 24 on your return, form 1040. ( https://www.irs.gov/pub/irs-pdf/f1040.pdf ) From line 24 you will (more or less) be subtracting out the amounts you've already paid the government - withholding from paychecks, estimated payments, etc. Subtract out what your wife is having withheld from her checks, multiplied by the number of checks she actually gets in a year. If the number is positive, you are going owe at tax time, if it's negative, you get a refund. The "goal" is 0 - or at least a number you aren't surprised and disappointed about. Let's say this number is $8000 because I like round numbers. This means you will owe $8000 come tax day. Divide this by 4, so $2000, and pay it on or before the quarterly tax due dates. If you are married filing jointly and both earning, you need to add up both hers and your paychecks, etc. There are worksheets for this to help with estimation. Tips to make this "automatic" - Ask her employer if they have a 12-month payment program, some districts offer this to help with budgeting for people. If you make enough money, you can ask your employer to withhold extra every paycheck. Get 26 checks a year? Add a flat $307 in withholding to your paycheck and it should all shake out. This seems overwhelming because turbotax spends millions of dollars a year to make sure the government doesn't make it underwhelming. Take it one step at a time and it will all work out, it's very simple math any basic calculator can do close enough to not be a shocking bill at the end of the year.
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Apr 19, 2023 04:38
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I had to use Turbotax for the first time this year because my fancy expensive software only allows me to access 10 tax years at a time and I needed to help someone with a 2010 return. Holy poo poo I had no idea how annoying that program is. It took a million screens and questions to do anything. I'm so sorry for the folks who have to use that program every year, I hope it's gotten better since the version I had to work with.
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Apr 19, 2023 04:46
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Epi Lepi posted:I had to use Turbotax for the first time this year because my fancy expensive software only allows me to access 10 tax years at a time and I needed to help someone with a 2010 return. Holy poo poo I had no idea how annoying that program is. It took a million screens and questions to do anything. I'm so sorry for the folks who have to use that program every year, I hope it's gotten better since the version I had to work with. You used TurboTax as a paid preparer? What are the circumstances that required working on a 2010 return, considering the IRS only looks back 6 years unless they are building a case for fraud, and you only have 3 years to claim a refund?
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Apr 19, 2023 04:58
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Gabriel Grub posted:You used TurboTax as a paid preparer? This isn't always true, I had a client who said a revenue officer told him to do 10 years worth of taxes. At least, he paid us for 10 years worth, so I didn't ask any more questions once the check cleared.
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Apr 19, 2023 05:28
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Having the previous six tax years filed officially puts you in good standing with the IRS, so if a revenue agent really did ask for filings back that far their finger was hovering over the "Smite" button for some reason, and you might want to be more circumspect about taking such a client.
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Apr 19, 2023 05:49
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Gabriel Grub posted:You used TurboTax as a paid preparer? My associate did not file for many years due to being under the impression that she was beneath the filing requirement and the IRS has a differing opinion so I am helping her complete the missing returns. She probably would have been under the requirement were it not for some cancellations of debt that she was unaware of (debt consolidation companies are a scam) and a large settlement that she was told would be non taxable but was reported on a 1099. sullat posted:This isn't always true, I had a client who said a revenue officer told him to do 10 years worth of taxes. At least, he paid us for 10 years worth, so I didn't ask any more questions once the check cleared. Yeah if a person does not file the IRS can file what they call "substitute" returns based on all the income information that gets reported to them and then oops no deductions you owe $$$$ but you can file your own return and then they will at that point decide whether to audit what you submit to them.
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Apr 19, 2023 05:51
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Ah, so these filings were in response to IRS substitute filings? It still seems strange that they would come back after all this time.
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Apr 19, 2023 05:58
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