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Is there a place I can input some W2s to "sanity check" them, outside of opening another software and starting the filing process? FTUSA has me at 10K owed fed but then a 20K state refund.
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Feb 5, 2024 18:40
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If its just W2s, its probably simplest to just use the tax table at https://www.irs.gov/pub/irs-pdf/i1040gi.pdf. Add box 1 of W2s, subtract 13500 standard, look that number up, then subtract your withholding.
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Feb 5, 2024 19:00
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These work in Google Sheets: https://sites.google.com/view/incometaxspreadsheet/home
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Feb 5, 2024 19:02
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One other question, about income+RSUs and how to interpret the W2: W2 lists income as 230K, with 35K fed withholding (and 20K state withholding). However, 74K of this was because of granted RSUs into a brokerage, with the RSU tax paid in cash at the moment of granting (e.g., paid like 30K or whatever it was when the RSU's vested) and no further action on the now unrestricted stock (e.g., no sales/transfers/etc). Do I fill out or note anything special for filing for RSU purposes, or is it just a straight "copy the boxes over as-is". W2 lists the RSU's under 14) "Other".
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Feb 5, 2024 19:10
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It sounds like the W2s don't have the tax withholding from the RSUs included since it was a separate transaction. If you made an estimated tax payment of 30k be sure you have documentation of that, told your tax prep, and that it is recorded on Line 26 of your form 1040 (your tax prep software probably has a PDF link of the actual forms).
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Feb 5, 2024 21:10
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Xenoborg posted:It sounds like the W2s don't have the tax withholding from the RSUs included since it was a separate transaction. If you made an estimated tax payment of 30k be sure you have documentation of that, told your tax prep, and that it is recorded on Line 26 of your form 1040 (your tax prep software probably has a PDF link of the actual forms). The payment was through Fidelity (who manages the RSUs/brokerage). Basically transferred a pile of cash into the brokerage account, which Fidelity took a chunk of when the RSU's vested. I have some record of the transaction taking place (there were many of these throughout the year):  This notes a $17K "Pay Cash" tax payment, which I paid. Do I need to report these tax cash payments on the 1040 (or elsewhere), or would it already be factored in to the W2? e: W2 lists income as 230K, with 35K fed withholding (and 20K state withholding), and that 230K includes the RSU pricing at the time of vesting PRADA SLUT fucked around with this message at 22:42 on Feb 5, 2024 |
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Feb 5, 2024 21:52
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For me, the tax is included in my w2. My fidelity account doesn't report cost basis, which results in the RSUs getting taxed twice. I had to use the supplemental information on the 1099 to manually adjust the cost basis in Turbotax. Im reasonably certain this is correct and also I am not a professional.
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Feb 5, 2024 22:31
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Bonus's and RSU's are usually withheld at a flat 22% federal withholding rate which for you is probably lower than your actual tax rate. You RSU's are included in your W-2, there's nothing else you need to enter into the return and unfortunately you probably do owe $10K to the government.
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Feb 5, 2024 22:59
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Funny to compare that Fidelity detail to what Morgan Stanley shows which is just “Total Taxes Withheld” and a dollar amount. (We do get a special paystub from our payroll provider that includes all the detail.)
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Feb 5, 2024 23:14
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Epi Lepi posted:Bonus's and RSU's are usually withheld at a flat 22% federal withholding rate which for you is probably lower than your actual tax rate. You RSU's are included in your W-2, there's nothing else you need to enter into the return and unfortunately you probably do owe $10K to the government. How do I know the W2 included the RSU's and that it captures the existing payment (aside from I know the cash+RSU comp totals)? I'm not contesting the amount owed/refunded; more just annoyed that I never know what's acurate and have to deal with this every year.
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Feb 5, 2024 23:44
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PRADA SLUT posted:How do I know the W2 included the RSU's and that it captures the existing payment (aside from I know the cash+RSU comp totals)? Take all your paychecks and add up the federal withholdings on them (or multiply the amount of one paycheck by thr number of paychecks if they're all the same). Is this number ~17k less than the number on your W2 or is is the same as your W2. If it's the same as your W2 and you didn't notice a big $17k outlier while adding up the tax on your paychecks, it wasn't included. If the amount from your paychecks is $17k less than your W2, then the amount was included in your W2.
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Feb 5, 2024 23:54
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If your income was $230k they may not have withheld enough (they withheld assuming 22% for fed taxes). >$182k is when marginal fed tax rate jumps from 24% to 32% for singles. There's also a NIIT and additional medicare tax that gets added in around $200k.PRADA SLUT posted:How do I know the W2 included the RSU's and that it captures the existing payment (aside from I know the cash+RSU comp totals)? Your paychecks should include withholdings for both the individual paycheck and also YTD totals. So you could check paystubs from around the date of your RSU to see if the YTD federal withholdings made a large sudden jump (+$9424 in your case).
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Feb 6, 2024 00:17
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230K W2 income vs 35K fed withholding is certainly light, more like ~45k withholding would be expected for a plain single W4. RSU withholding not making it back to your paystubs seems likely. Looking at my own RSUs in Fidelity, I only see the net shares there. IE I get a grant of 50, at vest 18 are sold for tax and fidelity only sees 32 and no withholding. My paystub and W2 then show the value of the 18 as tax withholding. Do you have a 1099 from Fidelity that shows your totals for year?
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Feb 6, 2024 00:29
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The Fidelity 1099 just shows DIV and INT, which aren’t significant. No 1099 related to vesting from what I can see. Would that be a MISC if it exists?Xenoborg posted:230K W2 income vs 35K fed withholding is certainly light, more like ~45k withholding would be expected for a plain single W4. RSU withholding not making it back to your paystubs seems likely. It is. I owe like 10k, which seems right. I’m also trying to figure out how to avoid owing next year (not reducing liability, just avoiding underpaying again)? I’m already claiming zero across the board. Manually withhold +$ on the W4? PRADA SLUT fucked around with this message at 02:24 on Feb 6, 2024 |
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Feb 6, 2024 02:17
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You need to be sure the 9.5k you paid is being counted and its not on your W2 unless you are way way under withholding. Short of checking through your paystubs from before/after the RSU vest, even one recent paystub you could roughly check by seeing if it is withholding 35k/(number of paycheks per year). Edit: Are you married? The most common way screw up withholding is by marking married when your spouse also works. Xenoborg fucked around with this message at 02:34 on Feb 6, 2024 |
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Feb 6, 2024 02:31
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Xenoborg posted:You need to be sure the 9.5k you paid is being counted and its not on your W2 unless you are way way under withholding. Short of checking through your paystubs from before/after the RSU vest, even one recent paystub you could roughly check by seeing if it is withholding 35k/(number of paycheks per year). Yeah, this is the case, but there's no option for "does your spouse work". Our incomes are similar -- would it be better to have us each withhold as single 0/1 or like MFS 0/1?
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Feb 6, 2024 03:07
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Step 2 of the W4 can account for a working spouse. https://www.irs.gov/pub/irs-pdf/fw4.pdf If your company doesn't use the new style W4, which it sounds like since you mention allowance numbers, you will still be much close at single 0/0 than anything married. Also tell them to get with the program, the change happened 4 years ago and working spouses was one of the major things it tried to address. Its still lovely, confusing, and tends to underwithold, but that's beside the point.
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Feb 6, 2024 03:31
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I guess IL law changed regarding 1099 payments because I am getting 1099s for random payments i’ve received left and right. ebay, class action settlements, you name it. foolishly I already filed, and now I feel like I have to wait as long as possible to make sure I don’t miss another 1099.
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Feb 6, 2024 15:52
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Hey thread, I'm having a bit of whiplash, and I'm hoping you guys can help me out. Has something changed, broadly, with how taxes are calculated or something between last year and this year? Nothing has changed with my job or withholdings from last year to now that I'm aware of, but while I got a pretty decent return last year, this year I find that I'm getting a tiny amount back from state, and I owe federal $16. This is worrying to me, considering that I always throw in an additional $30 weekly withholding for federal taxes, intent on getting back most of that ~$1500 come tax time. Am I gonna have to go to HR and up that amount to like $60 for next year? Or did I somehow severely gently caress something up somewhere while importing my W2 into the site I'm using?
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Feb 6, 2024 17:21
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In case anyone is wondering what happened with the insurance thing, I told HR the situation and they removed my partner as a life event and issued her an insurance termination letter so she could get insurance through work. My HR person said it wasn't a big deal at all and even let me pick the effective date so it wouldn't interfere with a doctor's appointment.  bird with big dick posted:Kicking your domestic partner to the curb in order to save some taxes is pretty grim What a prick! Sounds to me like she dodged a bullet, TBH.
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Feb 6, 2024 21:33
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neogeo0823 posted:Hey thread, I'm having a bit of whiplash, and I'm hoping you guys can help me out. Has something changed, broadly, with how taxes are calculated or something between last year and this year? Nothing has changed with my job or withholdings from last year to now that I'm aware of, but while I got a pretty decent return last year, this year I find that I'm getting a tiny amount back from state, and I owe federal $16. This is worrying to me, considering that I always throw in an additional $30 weekly withholding for federal taxes, intent on getting back most of that ~$1500 come tax time. Am I gonna have to go to HR and up that amount to like $60 for next year? Or did I somehow severely gently caress something up somewhere while importing my W2 into the site I'm using? I mean owing a small amount to the feds is much better than getting $1500 back but ok.
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Feb 6, 2024 21:42
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Boris Galerkin posted:I mean owing a small amount to the feds is much better than getting $1500 back but ok. Though I see their concern that they seem to have paid $1500 more this year compared to last year.
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Feb 6, 2024 22:18
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Can you compare line by line the 1040 from last year to this year? If you have the same AGI, taxable income, and withholding; tax owed should be pretty much the same, if not a little less because of standard deduction increasing.
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Feb 6, 2024 22:50
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I think I may have found the issue(s). The first one being that my W4 was set from single zero to married zero early last year, which I forgot that I had done. The other being that my wife owns a small business, and we filed jointly last year, but it was a headache to do so, so she wanted to file separate this year. I can see getting less of a refund with the W4 change, but I'm unsure how much less. Likewise, I know that filing separate vs. filing jointly changes some things, but I'm unsure exactly what those differences are. Between the two though, would that really add up to a $1500 difference in my return? That seems kind of ridiculous if so.
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Feb 7, 2024 15:43
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Changing from mfj to mfs will make comparing your 1040 difficult. But comparing your W2 is easy. Compare the federal tax withholding on both. We don't know how much you make, but my wife did a similar withholding switch and it was a lot more than $1500 different.
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Feb 7, 2024 16:17
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neogeo0823 posted:and we filed jointly last year, but it was a headache to do so, so she wanted to file separate this year. Have either of you filed yet? "It was a headache" isn't a good reason to switch. Filing separately may mean you pay more tax. Turbotax posted:In the vast majority of cases, it's best for married couples to file jointly
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Feb 7, 2024 16:34
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Guy Axlerod posted:Changing from mfj to mfs will make comparing your 1040 difficult. But comparing your W2 is easy. Compare the federal tax withholding on both. Comparing the two, last year I earned $61,684.87 in wages(box1), with $5510.73 withheld for federal. This year I earned $58,145.84 in wages and had $5103.10 withheld for federal. The math works out to 0.2% difference between the two years. I don't have the wife's info handy at the moment to compare this year to last year. I'll ask if she wants to at least start to file jointly, to see if our estimate changes at all in our favor. Worst case scenario I guess is it doesn't help and we just file separate like she wants to. EDIT: Epitope posted:Have either of you filed yet? "It was a headache" isn't a good reason to switch. Filing separately may mean you pay more tax. I haven't filed yet, only done the preliminary work to get a refund estimate. I think she's still waiting on some paperwork before she can file. Does anyone here have some semi-solid numbers that I can show her to show why we should be filing jointly? She's convinced that she needs to file separately, but I can't articulate to her why that's a bad idea beyond "we pay more when we file separate". neogeo0823 fucked around with this message at 16:51 on Feb 7, 2024 |
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Feb 7, 2024 16:48
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neogeo0823 posted:The other being that my wife owns a small business, and we filed jointly last year, but it was a headache to do so, so she wanted to file separate this year. You may pay more in taxes doing this (adding line 11 or whatever says "Tax") than the cost of an accountant. Part of owning a small business is the cost of accounting.
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Feb 7, 2024 16:51
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This is from last year, but is this year similar?neogeo0823 posted:That jives with what I've learned over the last few days, so that's good. I have another question, which I just now learned might be extremely relevant: I finally asked the wife how much she made last year, total. Turns out she made just over $10k in gross income, while paying more than $7k in just rent alone, before any other expenses. Am I right, then, that she does still have to file a federal return, having made more than $400, but that she [/i]does not[/i] have to file a NY State return, having made less than $12,950? If you're making 60k and she's making less than 10k, her half of the standard deduction is worth significantly more in a joint situation. Do you play magic? You are choosing being attacked by two creatures and blocking with two walls, or one bigger creature and one bigger wall. Her wall is bigger than her attacker, which may seem good, but not helping you defend is screwing you both. Also maybe your income reaches into a higher tax bracket if you file separate? Maybe not, I think you're close to that threshold. Regardless the IRS gets orcish oriflamme sooner in mfs
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Feb 7, 2024 17:53
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US Income Tax Thread: Do you play Magic?
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Feb 7, 2024 17:55
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The IRS really needs to change the "Married Filing Jointly" box on the W-4 to say something like "Married Filing Jointly where only one spouse has income" or something like that. That stupid box is nothing but a source of headaches for taxpayers everywhere.neogeo0823 posted:I think I may have found the issue(s). The first one being that my W4 was set from single zero to married zero early last year, which I forgot that I had done. The other being that my wife owns a small business, and we filed jointly last year, but it was a headache to do so, so she wanted to file separate this year. I can see getting less of a refund with the W4 change, but I'm unsure how much less. Likewise, I know that filing separate vs. filing jointly changes some things, but I'm unsure exactly what those differences are. Between the two though, would that really add up to a $1500 difference in my return? That seems kind of ridiculous if so. As stated previously, MFS is often not a good choice. Also, if you are in a community property state, correctly filing your taxes as MFS will also make your taxes much, much, much more complicated with a very high chance of processing issues. What state do you live in?
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Feb 7, 2024 18:32
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I don't understand how filing separately makes it less complicated?
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Feb 7, 2024 19:16
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Missing Donut posted:The IRS really needs to change the "Married Filing Jointly" box on the W-4 to say something like "Married Filing Jointly where only one spouse has income" or something like that. That stupid box is nothing but a source of headaches for taxpayers everywhere. I believe that there is a box that says "Married but withhold at single rate", which would be appropriate for someone with a working spouse. Personally, I wish you could just withhold at your marginal rate. It would make working spouses and side jobs much easier to withhold. (Fill out my main job as if it's the only income we have and then everything else at 12% would make withholdings pretty much perfect.) Missing Donut posted:As stated previously, MFS is often not a good choice. Also, if you are in a community property state, correctly filing your taxes as MFS will also make your taxes much, much, much more complicated with a very high chance of processing issues. Second (third/fourth?) being cautious about this. It could also mess up your eligibility for IRA contributions on top of everything else. Definitely consult a professional if you think you are in a scenario where it would make sense, but odds are you're not.
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Feb 7, 2024 19:28
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I got a form from the HSA my work deposits my contributions into and it says I contributed a lot less into the HSA than I actually did. There’s like 2 months of paychecks just missing and the only activity in those 2 months are interest payments. My W2 is saying the correct amount on the box for the HSA contributions. And yes the money was deducted from my gross pay so the money was never paid out to me. So let’s say if the correct amount was $2000 the form the HSA sent is $1500 and after digging the reason is because they just never got 2 entire months worth of contributions… somehow. Can I still file my taxes or do I need to wait for a bullshit corrected version from the HSA custodian? I mean as far as I care, my W2 is 100% correct and it’s the HSA’s form that is wrong. E: I did not distribute/reimburse myself for expenses, and I did not contribute extra post-tax. I opened a Fidelity HSA in December or January but it sits empty at $0 until I can figure out how to transfer assets.
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Feb 7, 2024 23:57
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Harveygod posted:I believe that there is a box that says "Married but withhold at single rate", which would be appropriate for someone with a working spouse. That is true. You know that. I know that. But most people do not realize that would be a good option for them, and the instructions do not provide any clarity for it. Boris Galerkin posted:Can I still file my taxes or do I need to wait for a bullshit corrected version from the HSA custodian? I mean as far as I care, my W2 is 100% correct and it’s the HSA’s form that is wrong. I wouldn't wait. The due date for the HSA custodian to provide you and the IRS with the form is May 31st, so they will probably have it all handled by then.
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Feb 8, 2024 00:06
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Now I get to play the fun game of “Where is my money?“ while being bounced back and forth between payroll and benefits and the payroll provider and the HSA administrator.
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Feb 8, 2024 00:30
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Did you hit an annual maximum?
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Feb 8, 2024 00:57
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Boris Galerkin posted:Now I get to play the fun game of “Where is my money?“ while being bounced back and forth between payroll and benefits and the payroll provider and the HSA administrator. If you use whatever default hsa admin from your job this is payrolls problem. Also ask around, I bet there are whole spreadsheets of people missing.
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Feb 8, 2024 01:19
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Guy Axlerod posted:Did you hit an annual maximum? Nope. Theres direct deposits up to August, then just interest payouts until October.
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Feb 8, 2024 01:50
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Epitope posted:This is from last year, but is this year similar? It's almost identical for me, but she made... IIRC around $14k this year in gross income, but I don't know what her expenses were offhand, just that they're also higher. KillHour posted:US Income Tax Thread: Do you play Magic? It certainly feels like that sometimes. But closer to early magic from Dwarf Fortress; Procedurally generated, following unknowable rules, famous for teleporting your brain out of your skull if you do anything incorrectly at any point in the process. Missing Donut posted:The IRS really needs to change the "Married Filing Jointly" box on the W-4 to say something like "Married Filing Jointly where only one spouse has income" or something like that. That stupid box is nothing but a source of headaches for taxpayers everywhere. New York, which Google informs me is a Common Law state, not a Community Property state. Emily Spinach posted:I don't understand how filing separately makes it less complicated? For her, I think she thinks that her business needs to be as separate from the rest of our finances as possible, in every way it can be? This is one of those things where I am very certain she's not correct, but I haven't been able to articulate to her why she's not correct. She rents a couple of spaces around town to do beauty services; She's not even an LLC or anything.
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Feb 8, 2024 04:39
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