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MrMojok posted:Hi all, I have a question. This is for filing in 2024. You mean your 2023 tax year filing, to be submitted in 2024? If so, you have the right of it. You can either file MFJ or MFS in scenario #2 as far as I can tell.
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Apr 21, 2023 23:18
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Ungratek posted:You mean your 2023 tax year filing, to be submitted in 2024? Correct, and thank you for the answer.
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Apr 21, 2023 23:29
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MrMojok posted:Hi all, I have a question. This is for filing in 2024. For question one if you were living in the house for 2 our of the last 5 years then you are entitled to an exclusion of gain up to $250K per person. And remember that your gain is calculated on what you sold the house for less what you bought it for (less commissions and other selling expenses that probably won't matter if you qualify for the exclusion). The cash you walk away from the table with does not have anything to do with the gain or loss.
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Apr 21, 2023 23:47
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Epi Lepi posted:For question one if you were living in the house for 2 our of the last 5 years then you are entitled to an exclusion of gain up to $250K per person. And remember that your gain is calculated on what you sold the house for less what you bought it for (less commissions and other selling expenses that probably won't matter if you qualify for the exclusion). The cash you walk away from the table with does not have anything to do with the gain or loss. Ah, thanks for that!
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Apr 22, 2023 01:39
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Anyone living outside the US ever been able to get through the ID.me verification process?
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Apr 27, 2023 02:37
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Gabriel Grub posted:Anyone living outside the US ever been able to get through the ID.me verification process? I created an account back in 2021 when I was visiting home for a few weeks. I can't remember what the verification steps were (isn't it all virtual/online?) but it does let me use my foreign cell phone number for MFA.
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Apr 27, 2023 18:49
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I'm stuck on them needing an approved form of ID with my address on it. I have a drivers license with my dad's address on it, so I might be "moving home" briefly.
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Apr 28, 2023 02:04
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So 2021 was the first year I've ever dealt with a kind of stock or ISO equivalent, and it appears I hosed up. I used TurboTax and apparently I never included my 1099B (was trying to figure out how I would've forgotten that but in hindsight I think I probably received it after I filed and didn't know any better), but because I exercised and sold my ISOs on the same day, the money from the sale was included as income on my W2. I recently got a CP2000 saying I owed a ton of money since I'm assuming to the IRS it looks like I just didn't pay taxes on my ISO sale at all. I'd imagine that if I can send the 1099B and show somehow that the sale was included on my W2 that I won't owe as much (hopefully not get the underreporting penalty as well?) but I'm kind of at a loss as to how to go about that. I know I can send them the documents in the mail but I've heard it's possible that they won't be opened by the cutoff time. Is it at all possible to call and talk to someone there and explain the situation? Is this something I should hire a CPA for or should it be as simple as it seems?
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May 11, 2023 03:49
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trip9 posted:So 2021 was the first year I've ever dealt with a kind of stock or ISO equivalent, and it appears I hosed up. I am pretty sure TurboTax has a way to handle ISO options. Have you re-opened your 2021 file and checked there? Basically you're into an insane part of our tax code. The filing will literally have you manually adjusting the basis on your 1099-B from $StrikePrice to $ValueOnExercise, then only the difference between that and the $SalePrice is income on the 1099-B, likely $0 or very close to it. TurboTax (I believe) can do this for you. Either way, once you get it amended the new fees and penalties will be calculated, and if it is indeed all double counting income and the 1099-B is zeroed out, so are your bills. Take a breath, it's all going to work out. Otherwise, hire someone to unfuck it. Googling it, this random PDF came up and it's got a shockingly good example. http://www.ashmeadcpa.com/uploads/1/2/7/7/12773217/stock_options_-_same_day_sales.pdf
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May 11, 2023 04:05
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Thank you, I did check my 2021 return and it looks like there was no 1099B included (most likely my fault). So is the best course of action for me to amend my 2021 form via TurboTax (and read up and make sure I'm manually adjusting whatever needs it), and then reply to the CP2000 with the amended return? When I amend my return does TurboTax trigger anything on their end? I'd like to avoid spinning off multiple threads of things that may need following up on if possible. edit: that PDF fits my situation perfectly trip9 fucked around with this message at 04:26 on May 11, 2023 |
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May 11, 2023 04:16
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You don't need to file an amended return. However, if the information displayed in the CP2000 notice is correct, and you have additional income, credits or expenses to report, you may want to complete and submit a Form 1040-X, Amended U.S. Individual Income Tax Return, and return it with a completed response form. If you choose to file an amended return, write "CP2000" on top of your return and attach it behind your completed response form. To ensure the information is sent to the proper area for processing, send the information in the envelope provided or fax it to the number shown on the notice.
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May 11, 2023 06:01
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hopefully the right thread. i'm a complete tax idiot, so please explain how this works. i just did the tax withholding calculator on the irs site. given my current income and current withholding settings, it said i would receive a refund of $7k. cool, but i'd rather have that $7 split up in my paychecks throughout the rest of the year, so i told it i want a $0 'refund'. it then told me i needed to withhold an extra amount by adding a number in line 4c. line 4c is where you put 'extra withholding'. so i guess i'm confused here? if i'm projected to receive a $7k refund, but ideally neither want to owe nor receive a refund, doesn't that mean i should receive more cash per paycheck, thus meaning my employer should withhold less for taxes? why am i telling them to withhold more? wouldn't them taking more withholdings for taxes ultimately increase my refund next year? am i simply misunderstanding what withholdings actually do?
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May 11, 2023 12:48
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sullat posted:You don't need to file an amended return. However, if the information displayed in the CP2000 notice is correct, and you have additional income, credits or expenses to report, you may want to complete and submit a Form 1040-X, Amended U.S. Individual Income Tax Return, and return it with a completed response form. If you choose to file an amended return, write "CP2000" on top of your return and attach it behind your completed response form. To ensure the information is sent to the proper area for processing, send the information in the envelope provided or fax it to the number shown on the notice. I went through the amendment process with TurboTax but just printed out the amended stuff and am going to fax it with my CP2000 response. Thanks for all your help.
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May 11, 2023 15:56
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trip9 posted:I went through the amendment process with TurboTax but just printed out the amended stuff and am going to fax it with my CP2000 response. Thanks for all your help.  did you wind up with any net liability?
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May 11, 2023 16:07
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trip9 posted:I went through the amendment process with TurboTax but just printed out the amended stuff and am going to fax it with my CP2000 response. Thanks for all your help. Good- the crucial thing wiith any corrective/audit notice of this sort from IRS is to send any amendments to the address on the notice. Sending an amended return to the usual amended return address is a killer- it has to be processed before the people handling your case can see it, effectively paralyzing the process until then.
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May 11, 2023 19:59
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H110Hawk posted:
Nope! It zero'd out. Discendo Vox posted:Good- the crucial thing wiith any corrective/audit notice of this sort from IRS is to send any amendments to the address on the notice. Sending an amended return to the usual amended return address is a killer- it has to be processed before the people handling your case can see it, effectively paralyzing the process until then. Yup, I made sure that TurboTax didn't send anything.
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May 11, 2023 21:30
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At the end of last year I started a new job after not working for a while. I made less than $13k so I didn't file taxes for 2022. Today I remembered I had a job at the beginning of last year (I've had a lot of poo poo going on okay). The job didn't last and I kind of forgot about it. They did not send a W2. The amount I made last year likely pushes my income over the minimum amount to file so now what the gently caress do I do? Step 1, call the dipshits and get a W2. Step 2??
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May 16, 2023 04:13
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Flora Finching posted:At the end of last year I started a new job after not working for a while. I made less than $13k so I didn't file taxes for 2022. Today I remembered I had a job at the beginning of last year (I've had a lot of poo poo going on okay). The job didn't last and I kind of forgot about it. They did not send a W2. The amount I made last year likely pushes my income over the minimum amount to file so now what the gently caress do I do? Step 1, call the dipshits and get a W2. Step 2?? If you don't want to deal with them, trying getting a wage and income transcript from the IRS website (after May 30th) which should have the info you need to file a return.
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May 16, 2023 04:51
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So just as a follow up to my last few posts, I faxed my CP2000 and everything last Friday, do I just wait for a new letter? Can I call to confirm they received it? Faxes are scary because they just go out into the void and you hope it arrived and someone saw it. I'm having visions of not hearing anything back, assuming I did what I needed, and then just getting a collections letter with increased fines.
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May 16, 2023 17:51
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trip9 posted:So just as a follow up to my last few posts, I faxed my CP2000 and everything last Friday, do I just wait for a new letter? Can I call to confirm they received it? Faxes are scary because they just go out into the void and you hope it arrived and someone saw it. I'm having visions of not hearing anything back, assuming I did what I needed, and then just getting a collections letter with increased fines. The next step is that you'll receive a letter acknowledging your submission and either a request for more time -or- a new CP2000 reflecting the adjusted amounts. If you receive something called a 'statutory deficiency notice' with no changes to the proposed amounts then your submission has been sucked into the endless void between here and Kansas City and you may need to call the number on the letter.
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May 16, 2023 20:23
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It's not my area, but personally I'd probably call to try and verify receipt if I was concerned. If it gets to a notice of deficiency, you're looking at tax court petition and audit recon territory, which is a bit less hospitable. I don't even know if someone will be able to verify receipt yet or not, but I can't imagine it hurts to call.
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May 16, 2023 20:47
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I had to pay a CP23 ($29 plus 23 cents in interest haha), do they also send me a notice saying they received it/I'm in the clear? The payment went through last week already
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May 16, 2023 21:13
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hi, couple questions as I started a new remote job which is based in another state (i'm in MN, job is in CA) 1) i just got my PTO payout from my previous job, but it was less than I expected, comparing to what i would received if i had worked those hours. is this because PTO is taxed differently than "regular" income? 2) any reason i might have to change withholdings for my new job? i'm getting paid quite a bit more (about 28%), but the increase for my first check was about 17% compared to my previous job. i assume this is just higher income = more time in higher tax brackets. thanks!
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May 19, 2023 01:26
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trip9 posted:So just as a follow up to my last few posts, I faxed my CP2000 and everything last Friday, do I just wait for a new letter? Can I call to confirm they received it? Faxes are scary because they just go out into the void and you hope it arrived and someone saw it. I'm having visions of not hearing anything back, assuming I did what I needed, and then just getting a collections letter with increased fines. Centzon Totochtin posted:I had to pay a CP23 ($29 plus 23 cents in interest haha), do they also send me a notice saying they received it/I'm in the clear? The payment went through last week already
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May 19, 2023 07:34
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abelwingnut posted:hopefully the right thread. i'm a complete tax idiot, so please explain how this works. I just checked the withholding calculator with some random numbers and I've bolded the key points: quote:
So right now, your paychecks are taking out way more than normal, so resetting back to only normal withholding would make you owe, thus the need to add a little extra.
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May 22, 2023 03:58
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Is the IRA BEV Tax Credit claimable if you MFS? Is it reduced at all for MFS filers?
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May 29, 2023 18:52
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Does anyone have a spreadsheet for doing W4 calculations? I'm trying to optimize withholding between several different jobs and none of the online tools are granular enough. Googling hasn't turned one up either.
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Jun 2, 2023 16:19
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Itemized deductions vs standard deduction question: Do people actually keep an entire year of receipts, and then scan them all in and present them to the IRS for sales tax deduction when they file each year? That seems like an insane amount of work. Even living in a state with high sales tax is it worth it for a normal non-rich person to hoard receipts or do most people just take the "the IRS thinks you probably spent this amount on sales tax based on your income" amount?
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Jun 9, 2023 08:38
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palindrome posted:Itemized deductions vs standard deduction question: My understanding is only if you're buying insanely expensive big ticket items like cars or gut renovating a home. For example, for here in NYC, to break even against the $10,000 SALT cap, you'd have to spend ~$117,000 on fully taxable items in one year, and you'd still need even more deductions to get over the standard deduction threshold. I guess if you already had a bunch of other itemized deductions and weren't gonna go with the standard anyway you could toss on the sales tax for big ticket items. But also, you can only deduct sales tax or state income tax, not both, and most people who are in a financial situation where they'd be spending $100,000+ a year are already gonna hit that $10,000 state income tax limit unless you're buying lambos and live in Florida.
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Jun 9, 2023 11:49
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Note that the $10k limit also includes property taxes, so it’s not likely you’d even need sales tax in no income tax states
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Jun 9, 2023 12:47
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I’m in Texas, so no state income tax, so I just use the IRS sales tax calculator when deciding on itemizing or not. https://www.irs.gov/credits-deductions/individuals/use-the-sales-tax-deduction-calculator Fwiw I haven’t itemized since the standard deduction went up.
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Jun 9, 2023 13:28
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Yeah, people who deduct sales tax are usually not keeping receipts of all their purchases throughout the year. The IRS provides a formula you can use to estimate your sales tax based on your household income and local tax rates. If this comes out to more than your state and local income tax (maybe because you live in a state without income tax), then you deduct the estimated sales tax.
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Jun 9, 2023 17:10
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edit: nvm
ROJO fucked around with this message at 21:15 on Jun 9, 2023 |
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Jun 9, 2023 17:41
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Oh, I didn't realize that State and Local Tax (SALT) deduction was capped at $10,000 now. Thanks for the info and explanation. So, if someone paid $5,000 in property taxes, and $9,000 in sales tax, they can still only deduct $10,000 if I understand correctly. Therefore if you spend $200k gutting a house and pay $15,000 sales tax, you might as well not keep receipts and just use the calculator because you're easily hitting the $10k SALT deduction limit. Same with property taxes. If you pay $10k annually in property taxes, it's pointless to even think about tracking your sales tax because you've already hit the $10k SALT limit.
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Jun 10, 2023 04:39
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Thanks, Donald.
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Jun 10, 2023 14:29
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palindrome posted:Oh, I didn't realize that State and Local Tax (SALT) deduction was capped at $10,000 now. Thanks for the info and explanation. The state might allow for higher SALT deductions depending on the state, but not the federal government.
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Jun 10, 2023 20:09
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Covok posted:The state might allow for higher SALT deductions depending on the state, but not the federal government. Generally in my experience (fair warning, I don't work with EVERY state though), they don't let you take SALT for state income tax but you can still claim property tax and (sometimes at least) sales taxes. Also, several states with itemized deductions require you only claim itemized deduction for state if you did it for federal, which is a much smaller group of people these days, so double-check the instructions to be sure whether you can do it or not.
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Jun 11, 2023 19:42
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MadDogMike posted:Generally in my experience (fair warning, I don't work with EVERY state though), they don't let you take SALT for state income tax but you can still claim property tax and (sometimes at least) sales taxes. Also, several states with itemized deductions require you only claim itemized deduction for state if you did it for federal, which is a much smaller group of people these days, so double-check the instructions to be sure whether you can do it or not. I should have been more clearly that it's almost always just property taxes and such and not State and Local Income Tax. It all depends on if your state decoupled from the federal government or not in 2018.
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Jun 11, 2023 23:20
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bird with big dick posted:Thanks, Donald. More likely Mitch McConnell's idea
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Jun 12, 2023 20:21
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Not sure if anyone will know the answer to this, but I have a question about this tax credit: https://www.energy.gov/policy/articles/making-our-homes-more-efficient-clean-energy-tax-credits-consumers I need a new heat pump, and apparently some of the options I'm looking at would qualify for the $2,000 nonrefundable tax credit. I've been looking around online to figure out how that works, but I'm still pretty confused. I definitely pay more than $2,000 in federal income tax each year, but that's paid through paycheck withholding so in April I usually get a small refund. What I'm wondering is: - Since I ultimately don't owe at the end of the tax year, does that mean I wouldn't be able to apply the nonrefundable tax credit? - If I could take/benefit from the credit, would I still be able to take the standard deduction? Thanks for any insight you can provide, I appreciate it! edit: thank you! surf rock fucked around with this message at 10:25 on Jun 16, 2023 |
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Jun 16, 2023 01:03
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