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neogeo0823 posted: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. A dba is not separate. It's all just comingled. Insist on an accountant doing it this year. Or hell just ask for a copy of last year's return from her and edit your 2022 return to be mfj adding in her stuff. Marvel at how much you get back. This is strange on both of your parts honestly. You don't have to be up in her business but your shouldn't be in the dark given it's your bank account on the line.
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# ? Feb 8, 2024 04:45 |
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# ? May 9, 2024 23:43 |
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If I am planning on earning extra income via 1099 self employment (on top of my w2 with normal withholding) but I’m not exactly sure how much because I might just decide to stop pursuing more work, do I need to declare anything to the IRS? Or can I just log into irs.gov and pay them every quarter what I owe based on what I already took in? I know the better option is to just increase my withholding on my w2 job but like I said I don’t know if I want to commit to pursuing work all year. So I don’t wanna deal with changing withholding and maybe having to change it back.
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# ? Feb 9, 2024 14:03 |
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Pay as you go is a totally valid method if there is no reasonable way to estimate it. Just pay them as you get paid, not forgetting the self employment tax, and they will be totally happy.
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# ? Feb 9, 2024 16:44 |
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Dumb question since I haven’t dealt with this before. I’m an NH resident filing a nonresident MA tax return. The company I worked for all of 2023 is based in Massachusetts but we do business in NH as well. Up until August I worked entirely in Mass but afterwards until the end of the year I worked entirely in NH. I went through the wage apportionment process (since only taxes income physically earned in the state) and the return is ready to file. Before I actually file it, though, do you guys have any clue if I’ll be required to provide any proof of the income split? Right now it’s the difference between owing MA $75 and getting a $700 refund from them, and if I continue working in NH all this year it could be up to a $2000 refund a year from now. I’d rather get it right from the start and not risk an audit.
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# ? Feb 10, 2024 00:07 |
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neogeo0823 posted: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. She’s mixing up something else. For a business when it comes to BANKING stuff it’s good to keep things separated because that way you prevent any confusion between personal and business expenses, but that doesn’t extend to actual tax filing. Especially at that level of income you are basically always better off filing jointly. EDIT - Or, if rephrasing this helps explain better, you keep the banking stuff separate so it’s accurate when you actually DO mix your financial information on the tax return. MadDogMike fucked around with this message at 17:35 on Feb 10, 2024 |
# ? Feb 10, 2024 17:33 |
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I usually have an uncomplicated tax situation (single, modest income, rent, no other sources of income, only investment for 2023 was a traditional IRA) but last year my grandmother passed and left me her half of the house which she co-owned with my father (I'm in New York City and so is the house, but I do not live in the house nor do I ever intend to). Do I need someone to prepare my taxes for me or can I just use freetaxusa or turbotax? She gave it to me via a deed transfer with retained life estate (called a life estate deed in some states) so it didn't go through probate or a will and was automatically transferred to me upon her death in September if that matters. I've had to pay for half of the third and fourth quarterly 2023 property taxes and shared utilities if that makes a difference.
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# ? Feb 12, 2024 17:09 |
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H110Hawk posted:Pay as you go is a totally valid method if there is no reasonable way to estimate it. Just pay them as you get paid, not forgetting the self employment tax, and they will be totally happy. I don't think they will ever be 'happy' but they will not focus their ire on you, at least, if you do that.
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# ? Feb 12, 2024 18:01 |
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Centzon Totochtin posted:I usually have an uncomplicated tax situation (single, modest income, rent, no other sources of income, only investment for 2023 was a traditional IRA) but last year my grandmother passed and left me her half of the house which she co-owned with my father (I'm in New York City and so is the house, but I do not live in the house nor do I ever intend to). Do I need someone to prepare my taxes for me or can I just use freetaxusa or turbotax? Pub 525 posted:In most cases, property you receive as a gift, bequest, or inheritance isn't included in your income. However, if property you receive this way later produces income such as interest, dividends, or rents, that income is taxable to you. I.E. it's not taxable income when you inherit it but when you sell/rent it that income is taxable.
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# ? Feb 12, 2024 18:03 |
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sullat posted:I.E. it's not taxable income when you inherit it but when you sell/rent it that income is taxable. I haven't done either yet (like many old people, she was a bit of a hoarder so I'm still clearing the place out when I have free time) so I should be good to self-file like I usually do?
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# ? Feb 12, 2024 18:33 |
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Centzon Totochtin posted:I haven't done either yet (like many old people, she was a bit of a hoarder so I'm still clearing the place out when I have free time) so I should be good to self-file like I usually do? Yeah. Just make a note of the value of the house as of the day you inherited it. That will be the 'basis', i.e., the cost you 'paid' for the house when it comes time to calculate your total profit.
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# ? Feb 13, 2024 16:36 |
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sullat posted:Yeah. Just make a note of the value of the house as of the day you inherited it. That will be the 'basis', i.e., the cost you 'paid' for the house when it comes time to calculate your total profit. I didn't have it appraised then, but the city has annual approximate assessment values for the property. Should I use the value for 2023 or 2024 as the basis?
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# ? Feb 13, 2024 18:21 |
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You could save that as a PDF (and maybe hard copy if you're paranoid). Probably can't hurt to save screenshots of Zillow and Redfin estimates, too. Make sure the date is visible in all these.
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# ? Feb 15, 2024 04:51 |
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How the gently caress do you talk to someone at the IRS about questions like determining tax residency? I called their 800-829-1040 number and pressed 2-2-4 to get to the area about individual tax questions. Then I tried 4 for "other/advanced questions" and it said "we don't answer these questions by phone, check the website!" and hung up. Yes I've checked the loving website, I still have questions! Then I tried again and pressed 1 for form 1040 questions and talked to a live person, who wanted to know what specifically I was asking about. When I said tax residency they replied oh that's an advanced topic and transferred me to that same line thst just tells you to gently caress off and hangs up. Yes I've had consultations with two cross-border accounting firms and they each gave different answers and also want to charge around $1000. I guess I can ask here but I want the drat bureau to clarify their confusing as hell documentation. e: okay, if you call the number for taxpayers at 800-829-4933 you can skip the first two questions but the end result is the same. I had a longer conversation with another agent who said nope, nobody can answer your questions, good luck. Precambrian Video Games fucked around with this message at 23:22 on Feb 16, 2024 |
# ? Feb 16, 2024 23:02 |
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Precambrian Video Games posted:How the gently caress do you talk to someone at the IRS about questions like determining tax residency? You can ask the goon hivemind for an answer, but if we're wrong, it all falls on you. Or you can pay one of these accountants with professional liability insurance, and maybe get penalties covered if they're wrong (I think you'd owe the tax regardless).
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# ? Feb 16, 2024 23:54 |
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Precambrian Video Games posted:How the gently caress do you talk to someone at the IRS about questions like determining tax residency? Thanks to more than a decade of budget cuts and unfunded mandates, there's no one available at the IRS over the phone or in person at the Taxpayer Assistance Centers trained to answer most complicated tax questions. For most complex tax law questions, it's either look at the publications and/or consult a private industry tax preparer. Hopefully someone here might be able to help you with some of your questions. Peyote Panda fucked around with this message at 03:30 on Feb 17, 2024 |
# ? Feb 16, 2024 23:58 |
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I can probably help, what's the question? Residency has pretty cut and dried rules unless we're talking about treaty tiebreakers, which are more facts and circumstances, or things like bona fide tax home etc. But residency should be something we can help you with. Are you a US citizen? Green card holder? How many days were you in the US in the year in question? 1000 is pretty cheap btw, my rate is 850 an hour and we really don't take clients for less than 5k.
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# ? Feb 17, 2024 00:38 |
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I was gonna say, $1k is insanely cheap. I won’t touch under 10k and usually need a business reason for under 20k
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# ? Feb 17, 2024 02:43 |
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My various us+au coworkers have been paying around $5k/year to get their taxes done. You're getting off easy if someone will touch it for $1k, unless they mean literally answering the question. Which you haven't even posed yet.
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# ? Feb 17, 2024 03:22 |
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Jesus Christ, gently caress the US for making that so hard.PatMarshall posted:my rate is 850 an hour Also, eat the rich. (USER WAS PUT ON PROBATION FOR THIS POST) KillHour fucked around with this message at 06:19 on Feb 17, 2024 |
# ? Feb 17, 2024 06:17 |
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PatMarshall posted:I can probably help, what's the question? Residency has pretty cut and dried rules unless we're talking about treaty tiebreakers, which are more facts and circumstances, or things like bona fide tax home etc. But residency should be something we can help you with. Are you a US citizen? Green card holder? How many days were you in the US in the year in question? 1000 is pretty cheap btw, my rate is 850 an hour and we really don't take clients for less than 5k. Thanks... really, 5k? Is that for people with lots of forms to fill, investments and property etc? I just have a W-2 from one employer, plus the Canadian equivalent. H110Hawk posted:My various us+au coworkers have been paying around $5k/year to get their taxes done. You're getting off easy if someone will touch it for $1k, unless they mean literally answering the question. Which you haven't even posed yet. Well, I have plenty more to follow up, but for context for the first question: I'm Canadian, no green card, started the year on a J-1 (having been in the US for years and therefore a resident for tax purposes), switched to an H-1B, moved back to Canada in October. The guide for aliens says: quote:Last Year of Residency I easily meet the substantial presence test so I suppose I may qualify. But do I have a choice in the termination date or not? The rest says: quote:Note. Claiming residency status under an applicable treaty tiebreaker provision in another country may also lead to a residency termination date that is earlier than December 31. I'm pretty sure I meet the closer connection, but I'd be better off filing as a resident for the whole year, because under dual status returns it says: quote:Restrictions for Dual-Status Taxpayers: The following restrictions apply if you are filing a tax return for a dual-status tax year. That's awful for me as I'd lose two standard deductions on a joint return (my spouse has minimal income) and have next to nothing for itemized deductions, so I really don't want to file as dual status if I have a choice. But if I do have to, I'm still confused because on the Taxation of Dual-Status Individuals page it says: quote:Nonresident at End of Year So if I'm filing a 1040-NR does that mean that I qualify as a non-resident for tax purposes for the beginning of the year or not? This might matter for the part of the year I was on a J-1 because: quote:Special Social Security and Medicare tax exemption: A J-1 alien who is a nonresident alien for tax purposes and is paid wages in exchange for personal services performed within the United States is exempt from paying U.S. Social Security and Medicare taxes on such wages under Section 3121(b)(19) of the Internal Revenue Code, as long as the employment is authorized by USCIS and the services are performed to carry out the purposes for which the J-1 visa was issued to them. I didn't have payroll taxes deducted while I was a J-1 non-resident, but I did after I became a resident. I see that H-1Bs do have payroll taxes deducted while they are non-residents. This is moot if I (have to) file as a resident, so that's why I was going to leave this question for later. Anyway, as I said I had two brief consultations where I was given similar estimates and one said no problem we'll file you as a full year resident and the other said no you can't even choose to do that, hence my confusion. Precambrian Video Games fucked around with this message at 06:51 on Feb 17, 2024 |
# ? Feb 17, 2024 06:47 |
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I added all my documents to TurboTax and I have an estimated ~$8,000 bill. I haven't submitted the tax return yet and wondering what the best option to pay is. I don't want to pay with credit card and would prefer paying with my checking account. Do I pay directly in TurboTax or should I pay directly through my IRS account that I have setup online already? Is there a benefit to using one or the other? I would assume paying through the official IRS account would cut out the middle man but will TurboTax even allow me to do this?
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# ? Feb 17, 2024 10:27 |
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Looking for thoughts: Would you amend in this situation or wait for a CP2000? 2022 Tax Year Forgot to include a 1099B for a $3000 of RSU which did not have basis reported to the IRS. So based on my past experience, they will see it as $3000 more income assuming $0 basis even though it was really only about $50 of capital gains. And I'll eventually get a CP2000 saying I owe $500 or so. 1040X doesn't show any differences because the $50 capital gains was wiped out by more than $3000 of capital losses.
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# ? Feb 17, 2024 18:04 |
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I opened a Fidelity account last year that came with a $100 sign up bonus, which I received as a cash deposit in December. They have issued me a consolidated 1099 for this account, but the amount of the sign up bonus is not on it. It seems fairly clear to me that these sort of bonuses are income - do I just add an additional 1099 and mark that I didn't actually receive it?
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# ? Feb 17, 2024 18:11 |
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Ok, so i can see how this could be confusing as the IRS advice is not really crystal clear. Download Publication 519, best source of guidance on these issues. My understanding is that you have to affirmatively claim the early residency end date (i.e. in October rather than December 31) by attaching a statement signed under penalties of perjury and including sufficient facts to demonstrate that your tax home is in Canada and you maintained a closer connection to Canada. Otherwise, the default rule would apply and your residency ends December 31. It sounds like you could qualify, and the guidance doesn't really contemplate that a qualifying nonresident alien would not follow this procedure. In other words, it doesn't really present an option. That said, from a practical perspective, I believe you could simply file for the entire year as a resident, even though you would otherwise qualify for an earlier end date if you had filed the statement. So, in short, both firms you talked to could be right. I'd be comfortable filing the full year, but other firms may not. Edit: you're supposed to visit an IRS office and file an application for a departure certificate before leaving the US, but literally no one ever does this. As to the eat the rich stuff, I work for a large firm, our market is really only business taxes and high net worth individuals with complex filings. I steer simpler prospects to smaller firms or independent CPAs. Otherwise the economics don't work. I don't get paid my hourly rate, that's just what my firm expects me to charge (well really it's a realization % goal based on my rates and my teams rates). Generally for compliance I'm quoting a flat fee based on an estimate of hours to complete. We really only charge our full hourly rates for consulting projects. PatMarshall fucked around with this message at 18:45 on Feb 17, 2024 |
# ? Feb 17, 2024 18:43 |
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drk posted:It seems fairly clear to me that these sort of bonuses are income - do I just add an additional 1099 and mark that I didn't actually receive it? Snitches get stitches. Next you're going to be filing an other income for your cashback credit card rewards. Seriously just forget about immaterial things you don't get forms for, you're going to draw more attention to yourself than the $22 in taxes is worth to the IRS. smackfu posted:Looking for thoughts: Would you amend in this situation or wait for a CP2000? Given it's been a full year I personally would wait for the CP2000 and send back the basis documentation in response and show how the $50 CG is adjusted by the >$3050 CL to zero. But I'm just a lay person. Did you have >$6000 in capital losses last year? Because they might just send you something adjusting it off that.
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# ? Feb 17, 2024 20:15 |
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H110Hawk posted:Did you have >$6000 in capital losses last year? Because they might just send you something adjusting it off that. Good thoughts, I’ll check on that. I sold a lot of stuff when the market was down that year.
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# ? Feb 17, 2024 21:15 |
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Ungratek posted:I was gonna say, $1k is insanely cheap. I won’t touch under 10k and usually need a business reason for under 20k H110Hawk posted:My various us+au coworkers have been paying around $5k/year to get their taxes done. You're getting off easy if someone will touch it for $1k, unless they mean literally answering the question. Which you haven't even posed yet. *Looks at his people getting stuff in the $300-$550 range pricing for most foreign tax stuff* Welp, guess things vary quite a bit out there, sheesh. Granted, most of mine don't get HYPER complicated; think the most expensive returns I do a year are for one client who has a real estate partnership and like six personal rental properties, and that totals like $1600 or so for both (they're also very well organized with their info, bless their soul, or I'd probably go mad doing it). Precambrian Video Games posted:Anyway, as I said I had two brief consultations where I was given similar estimates and one said no problem we'll file you as a full year resident and the other said no you can't even choose to do that, hence my confusion. I'm leaning towards "could file as a full year resident" (you'd have to include the Canadian income as US income that way, but then you could do Form 1116 to write off the Canadian tax from the US taxes), but I'll be frank and say dual status stuff is the one thing I'm weakest on foreign-tax wise, so take my opinion with a grain of salt (and if anyone better informed wants to chime in, please do).
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# ? Feb 18, 2024 04:25 |
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URGENT I recently became aware that my 2020 tax return had $40,000 worth of income that I shouldn’t have paid taxes on. (I work for the Long Island Railroad and I was injured on the job. I confirmed with multiple sources at work that this income is tax free). The problem is the deadline to amend a prior tax return is 3 years from the date it was filed, which unfortunately is tomorrow. H&R Block who filed my tax return in 2020 is utterly clueless and keeps telling me they cannot do this for me. Every other tax professional I have contacted is unable to see me on such short notice. What the hell do I do? Is there any way I can just do this myself? I will be losing over $8,000 if I do not get this filed by tomorrow.
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# ? Feb 18, 2024 20:47 |
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(just a goon not a tax person) https://www.hrblock.com/tax-center/support/software/software-tax-filing/after-filing-software-return/file-amended-tax-return/ This says that you have to mail it in regardless which is odd. I would get it in the mail even a little wrong if no one can help you. Tomorrow is of course a federal holiday so it won't be postmarked until Tuesday no matter what. If h&r block made a mistake or you did it in person I would start their claim process. Assuming you told them you were injured or the form indicated that. Do this in parallel. It might shortcut some red tape to get the amendment out.
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# ? Feb 18, 2024 21:34 |
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H110Hawk posted:This says that you have to mail it in regardless which is odd. I would get it in the mail even a little wrong if no one can help you. Tomorrow is of course a federal holiday so it won't be postmarked until Tuesday no matter what. There's a limitation with the efiling system that only allows efiling an amended return for the current or prior two tax years, so a 2020 amended return falls outside that. https://www.irs.gov/filing/amended-return-frequently-asked-questions However, the instructions for the 1040X note under the When to File section that, "If you filed your original return early (for example, March 1 for a calendar year return), your return is considered filed on the due date (generally April 15)." So that should give a little extra breathing room for filing the amended return for 2020 in this case, as long as it gets done by April 15th of this year. Paper processing at the service centers is still a mess, so I'd suggest sending it certified mail so if something goes sideways (returns do get lost in processing) you can resubmit with proof that it was originally submitted in time.
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# ? Feb 18, 2024 22:40 |
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I'm trying to determine my deductible mortgage interest since I bought a condo in mid-2023. The IRS says:quote:You can deduct home mortgage interest on the first $750,000 ($375,000 if married filing separately) of indebtedness. However, higher limitations ($1 million ($500,000 if married filing separately)) apply if you are deducting mortgage interest from indebtedness incurred before December 16, 2017. So, it sounds simple, I should deduct interest on the first $750,000 of the mortgage. But I'm doing the worksheet, and I think I'm following the instructions, and it says $1 million instead. Am I blind or what am I doing wrong here?
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# ? Feb 19, 2024 01:48 |
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Line 6 should be 0 since line 5 is 0.
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# ? Feb 19, 2024 02:00 |
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Presumably line 5 is supposed to have a value and then line 6 is the lower of line 5 or a million dollars. Too slow.
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# ? Feb 19, 2024 02:04 |
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Peyote Panda posted:There's a limitation with the efiling system that only allows efiling an amended return for the current or prior two tax years, so a 2020 amended return falls outside that. https://www.irs.gov/filing/amended-return-frequently-asked-questions Yeah, if you file your return before the due date (without extensions) then the clock on claiming a refund runs from the due date. For 2020 returns, though, don't forget the due date was postponed to May 17. That applies to claims for refund, too. Definitely send it certified or through FedEx or something--you want a copy of that postmark since timely mailed is timely filed. Emily Spinach fucked around with this message at 02:08 on Feb 19, 2024 |
# ? Feb 19, 2024 02:05 |
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Xenoborg posted:Line 6 should be 0 since line 5 is 0. smackfu posted:Presumably line 5 is supposed to have a value and then line 6 is the lower of line 5 or a million dollars. Blind it is. Thanks.
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# ? Feb 19, 2024 02:29 |
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Second, less dumb, question: My wife has a bit of nonemployee compensation from teaching doctors how to use certain medical devices. It seems this is considered self-employment business income, but does it count as a specified service business?quote:An SSTB is a trade or business involving the performance of services in the fields of health, law, accounting, actuarial science, performing arts, consulting, athletics, financial services, investing and investment management, trading or dealing in certain assets, or any trade or business where the principal asset is the reputation or skill of one or more of its employees or owners. The principal asset of a trade or business is the reputation or skill of its employees or owners if the trade or business consists of the receipt of income from endorsing products or services, the use of an individual's image, likeness, voice, or other symbols associated with the individual's identity, or appearances at events or on radio, television, or other media formats. I imagine it counts as the health field, right? Not sure if there are other criteria, like it has to involve patients or something...
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# ? Feb 19, 2024 04:04 |
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H110Hawk posted:(just a goon not a tax person) Generally the H&R Block claims stuff is when a mistake makes you pay money to fix it, so I don't think that would work per se. But why the people at that office are somehow convinced they can't do an amendment for free to fix it anyway is beyond me though, I've done those for our people in these cases. Maybe they just meant they can't get you in immediately? I admit I'm currently booked solid about a week and a half out, and this with plenty of overtime scheduled too; this isn't wildly unusual for a lot of the experienced preparers at Block. But as mentioned by Emily Spinach you have until May to mail it anyway. If they're just not helping you at all feel free to PM me, I can see if there's a way to help on my end maybe. Just to confirm though, you say this is untaxable pay due to an injury? Was it workmans comp, or some kind of legal settlement? runawayturtles posted:Second, less dumb, question: My wife has a bit of nonemployee compensation from teaching doctors how to use certain medical devices. It seems this is considered self-employment business income, but does it count as a specified service business? Yeah, I'd say it probably qualified as specified business, though in practical terms unless your total income is quite big there won't be any impact (specified businesses have sort of an income cutoff for qualified business income deduction, but it kicks in around $340,000 or so for MFJ if memory serves and the phase out isn't total unless you're $100,000 past that).
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# ? Feb 19, 2024 04:14 |
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RCarr posted:URGENT If you're LIRR I'm probably relatively local to you and can help you after tax season if you want. I have plenty of LIRR guys as clients, I've seen your case before. I have not idea why the LIRR can't issue W-2s with the correct taxable wages when there's Line of Duty Injury pay, other agencies have it figured out. Regardless of what you do make sure you attach a paystub or something to prove the LODI.
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# ? Feb 19, 2024 06:53 |
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Epi Lepi posted:If you're LIRR I'm probably relatively local to you and can help you after tax season if you want. I have plenty of LIRR guys as clients, I've seen your case before. I have not idea why the LIRR can't issue W-2s with the correct taxable wages when there's Line of Duty Injury pay, other agencies have it figured out. Regardless of what you do make sure you attach a paystub or something to prove the LODI. I was able to go to a different H&R Block location and convince someone there to do it for me. He was able to e-file the amendment for the state, and I’m going to send the federal amendment via certified mail on Tuesday. I’m hoping since Monday (my deadline), is a federal holiday, they will honor the day after as not past the deadline. Not much else I can do at this point. And yea the LIRR’s W2’s seem to be a real issue with this particular instance of being injured on the job, and not showing that pay as any different than regular income. I spoke to some coworkers and they recommended someone who specializes in LIRR returns, who I will use in the future. The Gentleman at H&R Block basically force fed the numbers in the best he could, but wasn’t too sure how it would turn out when the feds actually look over the amendment. As you mentioned, I’ll attach my last paystub from that year which shows my year to date income labeled “injury on the job”. That, plus an explanation is hopefully enough. It better be, or else I’m going to kiss $8,000 or so goodbye.
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# ? Feb 19, 2024 08:53 |
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# ? May 9, 2024 23:43 |
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Not sure if this is the right thread to ask, but my girlfriend and I have lived in a rental house for the past 3.5ish years. My girlfriend is the one on the lease and rental agreement. Today my landlord asked for her ssn to put on a 1099-MISC to send to the IRS. We have never been paid by the landlord or done anything like do repairs to the house and then get paid back or anything like that. We are also not on great terms with her. I have never heard of this being asked for before by a landlord so it raised a couple flags. Are there new 1099-MISC rules this year or something?
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# ? Feb 20, 2024 02:42 |