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Busy Bee posted:This year will be the first year I plan on paying estimated taxes to the IRS since last year I had to pay taxes. At some point this year, I will sell some stock to have long term capital gains. You do not get a form for estimated taxes paid. I don't use TurboTax, but I assume somewhere in it they will ask if you paid estimated taxes and you enter the amount(s) you paid and the date(s).
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Jan 17, 2024 00:32
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Busy Bee posted:This year will be the first year I plan on paying estimated taxes to the IRS since last year I had to pay taxes. At some point this year, I will sell some stock to have long term capital gains. Nope. On you to keep records. Use Gmail labels.
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Jan 17, 2024 06:37
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Thank you both. What is the most efficient way to estimate the taxes I need to pay? I plan on having large capital gains in Q1 2024, and then I will have my monthly interest payments and further quarterly dividends. I found this site to be useful - https://www.dinkytown.net/java/1040-tax-calculator.html - do I just enter my monthly payments as the year progresses and subtract the estimated amount I already paid in the previous quarter?
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Jan 17, 2024 19:53
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Busy Bee posted:What is the most efficient way to estimate the taxes I need to pay? I plan on having large capital gains in Q1 2024, and then I will have my monthly interest payments and further quarterly dividends. H110Hawk posted:Add it all up. Subtract standard deduction and traditional 401k deposits. Look up number in tax tables. Make sure you are tracking to that number. Basically this. As you get variable amounts (dividends/interest) that you cannot estimate, update your spreadsheet.
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Jan 17, 2024 20:08
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If your goal is just to avoid underpayment penalties, the easiest way to this is to match your previous year's total tax payment at the quarterly deadlines. So once you file your taxes this year, pay attention to line 24 on the 1040 - "Total Tax". Divide that number by 4 and pay that amount by each of the quarterly deadlines - April 15th, June 15th, September 15th and January 15th.
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Jan 17, 2024 22:21
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Subvisual Haze posted:If your goal is just to avoid underpayment penalties, the easiest way to this is to match your previous year's total tax payment at the quarterly deadlines. This only works so long as number go up. If you're a high earner ($150k AGI) it's 110% of last years, which is hopefully pretty likely for our poster here. And if you followed your instructions to the letter they would basically double pay their taxes.  But yes, to avoid penalties just make sure you pay 100% of last years taxes
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Jan 17, 2024 22:30
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I also may need to do this this year due to some extra income. Can you just grab the app the IRS offers and throw $X at it using the app without having to attach paperwork with it or anything? Seems when mailing stuff they always want paperwork (which makes sense)
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Jan 18, 2024 02:20
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I've always just gone to the IRS website and hit pay, 1040-es, get confirmation. Print that page out so you remember it. I have never filled out a form.
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Jan 18, 2024 02:48
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My wife had a job she ended up not staying with and had a 401k with about 300$. It cashed out in January 2023. Is there a way for me to avoid the penalties? It sounds like medical bills might allow bypass of the 10% penalty? Otherwise I can get her an IRA and add the money ,but I understand we are past the time limit. Am I missing any angles?
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Jan 21, 2024 01:49
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Yeah, you can avoid the penalty by saying the money was used to pay medical bills, but you need to have a lot of medical bills. Your medical expenses can't be used for this purpose until they exceed 7.5% of your adjusted gross income. Other situations where you might avoid the penalty would be if your wife is at least 55 or permanently disabled or terminally ill, or if you had a child in 2023.
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Jan 21, 2024 02:01
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Dyscrasia posted:My wife had a job she ended up not staying with and had a 401k with about 300$. It cashed out in January 2023. Is there a way for me to avoid the penalties? It sounds like medical bills might allow bypass of the 10% penalty? Otherwise I can get her an IRA and add the money ,but I understand we are past the time limit. Am I missing any angles? Do you mean literally $300, and not $300k or something?
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Jan 21, 2024 02:24
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If it’s $300 I’d just eat the $30 penalty and move on with my life
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Jan 21, 2024 02:37
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Yup, 300$. Figured if there was something easy I could spend 5 minutes. I admit to micromanaging here.
Dyscrasia fucked around with this message at 02:43 on Jan 21, 2024 |
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Jan 21, 2024 02:39
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I got a CP2057 this week and I am completely boggled at it. This is the explanation of why I got the CP2057: This is what we filed: This is the W2 in question: Am I incredibly confused or are we getting a letter over a rounding error? Somebody fucked around with this message at 03:54 on Jan 23, 2024 |
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Jan 21, 2024 02:57
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No, it's not likely the rounding is the cause of the problem. Check everything else for consistency: did you put in the right EIN for the employer? Did you correctly attribute each W-2 to yourself or your wife?
Telegnostic fucked around with this message at 03:23 on Jan 21, 2024 |
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Jan 21, 2024 03:21
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Telegnostic posted:No, it's not likely the rounding is the cause of the problem. Check everything else for consistency: did you put in the right EIN for the employer? Did you correctly attribute each W-2 to yourself or your wife? I file via HR Block (lol) and it's all imported automatically via the payroll companies
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Jan 21, 2024 03:26
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Pittsburgh Fentanyl Cloud posted:I file via HR Block (lol) and it's all imported automatically via the payroll companies Just to confirm - both of those w-2s are yours correct? That’s what your return is showing.
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Jan 21, 2024 03:33
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Ungratek posted:Just to confirm - both of those w-2s are yours correct? That’s what your return is showing. Married filing jointly, one is my wife's, one is mine. e: lol oh gently caress, I see. thank you.
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Jan 21, 2024 03:41
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Ungratek posted:Just to confirm - both of those w-2s are yours correct? That’s what your return is showing. always happy when BFC helps another goon navigate things 
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Jan 21, 2024 15:18
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Kind of weird that they are complaining specifically about the Social Security withheld and not the wages. Unless I’m confused.
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Jan 21, 2024 16:04
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smackfu posted:Kind of weird that they are complaining specifically about the Social Security withheld and not the wages. Unless I’m confused. Partially it's an impossible number ($9,114 is the maximum), partially it simply doesn't make sense to have two lines withheld for the same SSN on the same W-2. Either the second line is incorrectly attributed or the tax liability math is wrong.
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Jan 21, 2024 16:13
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Ah that makes sense. It’s actually breaking rules rather than just a mismatch.
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Jan 21, 2024 16:18
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The excess SS withheld would be credited as an estimated tax payment and result in a larger refund than appropriate
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Jan 21, 2024 16:24
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Yeah, I hosed up the import somehow and listed both W2s as mine instead of one to my spouse. HR Block, in their beneficence, decided that was fine despite SSNs being different and issued a credit for overpayment and I missed it somehow. Would have been nice if the CP2057 said "hey, you hosed up and owe us $x" but I guess we can't do that.
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Jan 21, 2024 18:44
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Yeah one tricky bit is that most of the software doesn’t ask you the SSN for each form, they just ask who it belongs to. So all it takes is missing one selection and you have a pretty major error that is difficult to detect. It really should say something like: “You have overpaid your social security. If you did not work two W2 jobs this year, this is likely a data entry error.”
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Jan 21, 2024 20:04
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smackfu posted:Yeah one tricky bit is that most of the software doesn’t ask you the SSN for each form, they just ask who it belongs to. So all it takes is missing one selection and you have a pretty major error that is difficult to detect. If the IRS can detect this as an anomaly the $x00 billion? Trillion? Dollar a year lobbying companies which also sell tax software should absolutely have caught this.
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Jan 21, 2024 20:20
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Oh right that doesn't drive shareholder value my bad.
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Jan 21, 2024 20:20
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Pittsburgh Fentanyl Cloud posted:I got a CP2057 this week and I am completely boggled at it. Is that the only adjustment in the letter? Somebody fucked around with this message at 03:55 on Jan 23, 2024 |
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Jan 21, 2024 21:58
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incogneato posted:Is that the only adjustment in the letter? Yep, that was all that was in the letter.
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Jan 21, 2024 22:00
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It looks like maybe there's some PII shining through from the other side of the page. Hopefully not usable, don't want to add more headaches for ya
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Jan 22, 2024 22:54
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If anyone on this dead gay forum is going to go through the effort to pull that shine-through and reconstruct it they're welcome to show up on my porch and awkwardly ask if there are stairs in my house.
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Jan 23, 2024 02:34
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Pittsburgh Fentanyl Cloud posted:If anyone on this dead gay forum is going to go through the effort to pull that shine-through and reconstruct it they're welcome to show up on my porch and awkwardly ask if there are stairs in my house. It took about 30s on my phone using the built in photo editor in case that changes your calculus. I would suggest deleting it.
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Jan 23, 2024 03:01
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Post a link to the GoFundMe to go to their house and I will contribute.
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Jan 23, 2024 03:10
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H110Hawk posted:It took about 30s on my phone using the built in photo editor in case that changes your calculus. I would suggest deleting it. not particularly worried about it, I can't delete the original images and it's been quoted in any case so a mod would have to edit the quotes. It's not a big deal, bringing it up causes more problems than letting it lie.
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Jan 23, 2024 03:38
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Ehh I got it, I'm on my phone, can't tell which image it was so nuked em all. Which seems fine since the issue was answered, right?
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Jan 23, 2024 03:58
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that's right
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Jan 23, 2024 04:09
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My partner and I MFS and have a joint bank account. For the 1099-INT income, do we need to split it with a Nominee distribution or can one person whose name is on the form just claim it all?
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Jan 24, 2024 15:48
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It depends on a bunch of factors. If you're in Idaho, Louisiana, Wisconsin, or Texas, then you must split the interest income 50/50 based on community property laws. If you're in Washington, Nevada, California, Arizona, or New Mexico, and the account was funded with money earned during the marriage, then you must split the interest income 50/50 based on community property laws. If neither of the previous situations applies, then it's a little less cut and dry. You're generally instructed to split the interest income with a nominee distribution based on each spouse's percentage of ownership of the account, but this may not be clear when the spouses share finances. In practice, I suspect that if you reported the whole amount on the return of the person who received the 1099, you'd be fine.
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Jan 24, 2024 17:36
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Confused about an IRA tax thing… A couple of years ago I managed to lose money in my traditional IRA before I converted it to a Roth. I put in $6000 but only converted $5812 to Roth so I had a remaining basis of $188. This gets carried forward on form 8606 line 2 and this year I made $15 on my IRA before converting so that basis got reduced to $173. And so on into the future I assume. Is this number actually meaningful? My traditional IRA generally has a $0 balance except for a few days in January.
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Jan 25, 2024 18:21
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smackfu posted:Confused about an IRA tax thing… Your basis after the rollover last year is $0, not $188. You wouldn't have taken a loss on your return if you handled this as a distribution (which this is), so you don't get to maintain basis when the rollover is less than your entire contribution. You'll have $15 of income to report on this year's return.
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Jan 25, 2024 20:50
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