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thalweg posted: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? The thing that jumps to mind is that if your landlord has to keep your deposit in an interest-bearing account (as I believe happens in New York City, at the least), 2023 might be the first year in a long time where the interest is actually notable. But you might want to ask.
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Feb 20, 2024 03:32
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thalweg posted: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? Lol don't give it to her. If she gets pushy demand a W-9 from her. This is a normal residential lease correct? Not a business one? There are new rules but I'm pretty sure only commercial tenants have to deal with a 1099. If this is a normal residential lease it's on her. If you suspect she's under reporting though there is a tip line...
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Feb 20, 2024 03:37
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thalweg posted: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? You should ask the landlord to explain the nature of the request, and what changed this year to necessitate issuing a tenant a 1099 of any kind. If your refundable security deposit is being held in an interest-bearing account, the accrued interest would be reportable if the rental agreement (or state law) stipulates that you are entitled to the interest. I'm not certain whether that income needs to be reported annually or when it is returned. My gut says constructive receipt (when you "received" the money) would occur when it's been refunded to the tenant, but this may not be the case. This income would be reported on a 1099-INT, not a 1099-MISC, and I believe all reportable interest income is reportable, unlike the MISC's $600 lower limit. Also, the landlord shouldn't be requesting a SSN in this manner. The request (and requirement if the relationship is appropriate) should simply be to provide a W-9 or W-8 (sounds like W-9 in this case). Information returns (1099, etc) usually follow the flow of reportable payments/income, so I can't really imagine why the landlord would issue one to a tenant if it's for anything other than interest. Magicaljesus fucked around with this message at 04:31 on Feb 20, 2024 |
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Feb 20, 2024 04:28
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Thank you all for confirming my instincts. No, it's normal residential rental. It's a little unclear from the way she worded her request (in a single text message), but it sounds like the landlord is asking for the ssn to put on a 1099-MISC to file with her own return, not a 1099 to issue to my girlfriend. My first post made it sound the other way around, sorry about that. Obviously rental income should be reported on Schedule E, and there is no way she doesn't know that. I can only speculate what her angle here is, but none of it is good for us, I think. Like the range in my head is identity theft to tax fraud. Seems like the challenge here is to tactfully refuse and get out of her crosshairs.
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Feb 20, 2024 07:22
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PatMarshall posted: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. MadDogMike posted: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). Thanks to both of you, that sounds plausible. Funnily enough the IRS has ten worked examples for determining residency status of increasing complexity and I don't think any of them cover leaving late in the year (most don't cover leaving at all, while #9 covers leaving the US on one visa and returning a year later on a different visa). I may just call the Canada Revenue Agency to see if they have any issues with this since I was indisputably a Canadian resident for at least the last 1.5 months of the year, and reading Article IV P2 of (the summary of) the Canada-US tax treaty it sounds like the tiebreakers are meant to prevent anyone qualifying as a tax resident of both countries at the same time. Also they actually try to answer questions, in my prior experience.
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Feb 20, 2024 07:36
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thalweg posted:Thank you all for confirming my instincts. No, it's normal residential rental. It's a little unclear from the way she worded her request (in a single text message), but it sounds like the landlord is asking for the ssn to put on a 1099-MISC to file with her own return, not a 1099 to issue to my girlfriend. My first post made it sound the other way around, sorry about that. Obviously rental income should be reported on Schedule E, and there is no way she doesn't know that. I can only speculate what her angle here is, but none of it is good for us, I think. Like the range in my head is identity theft to tax fraud. Seems like the challenge here is to tactfully refuse and get out of her crosshairs. This just got weirder. Hard no on providing a SSN or allowing the landlord to create a 1099-MISC on your girlfriend's behalf to file with her return. This makes absolutely no sense and can only end badly for your girlfriend. Again, there's not much downside to asking the landlord for more clarifying information. The landlord needs to report all reportable income whether there is a 1099 to support it or not. If her record keeping is so bad that she's reliant on 1099s, that's her problem.
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Feb 20, 2024 17:18
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My employer switched state tax withholding 6 months late - how do I correctly file using FreeTaxUSA.com? Details: I moved from State A to State B on June 1, therefore spent 5 months of the in State A and 7 months in State B. However my employer didn't update my tax withholding state until mid Nov, so State A thinks I lived there most of the year and State B thinks I didn't. I assume I have to have FreeTaxUSA.com send something on my return to let them know I over paid them and also to DC to let them know I owe them more. What is the proper way to do this correctly? Thanks!
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Feb 20, 2024 17:23
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It’s two partial year state returns regardless. Your employee withholding delay just means you will owe one state more and get a bigger refund from the other.
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Feb 20, 2024 19:18
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dexter6 posted:My employer switched state tax withholding 6 months late - how do I correctly file using FreeTaxUSA.com? Basically the exact same thing happened to me this year, IMO it's in your best interest to raise this with your HR/Payroll department and see if you can get them to issue an amended W-2 that correctly reflects your residency.
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Feb 20, 2024 21:55
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I have an issue very similar to this:dexter6 posted:I moved from State A to State B on June 1, therefore spent 5 months of the in State A and 7 months in State B. However my employer didn't update my tax withholding state until mid Nov, so State A thinks I lived there most of the year and State B thinks I didn't. Only my residency was physically in MN the entire time, but my W-2 reflects that I was taxed in CA. My understanding is this: • I fill out two state returns • I assign zero of my bux to CA > • CA refunds me my entire taxed amount • I assign 100% of my bux to MN > • MN is going to now basically want all that money • Everyone is happy and CA definitely isn't going to come after my head If I do this, my state return looks like this: • CA Refunds $11,300 • MN wants a check for $8,400 Does this sound right? I reached out to payroll and they kinda just threw their hands up and said, 'oh change it in workday so it is correct going forward'. Am I going to somehow end up in trouble by asking CA for all my money back so I can give it to MN?
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Feb 20, 2024 22:56
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Sydin posted:Basically the exact same thing happened to me this year, IMO it's in your best interest to raise this with your HR/Payroll department and see if you can get them to issue an amended W-2 that correctly reflects your residency.
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Feb 20, 2024 23:38
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Sydin posted:Basically the exact same thing happened to me this year, IMO it's in your best interest to raise this with your HR/Payroll department and see if you can get them to issue an amended W-2 that correctly reflects your residency. There’s nothing really to fix is there? The withholding was already withheld and sent to the two states.
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Feb 20, 2024 23:57
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Canine Blues Arooo posted:I have an issue very similar to this: Yep, that's about how it works, I've seen a couple similar situations and that's about the only way to fix it.
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Feb 21, 2024 02:32
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smackfu posted:There’s nothing really to fix is there? The withholding was already withheld and sent to the two states. Yeah you can't unwithold taxes so it's kind of moot.
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Feb 21, 2024 04:01
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The W-2 correction wouldn't be to change the amount of withholding. It would be to change the amount of wages earned in each state.
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Feb 21, 2024 15:19
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I accidentally claimed the Lifetime Earning Credit when I didn’t meet the requirements. First year ever doing taxes and used FreeTaxUSA. I didn’t take any courses in 2023 but had a late fee from my fall 2022 housing contract ($600 even) that carried over and I paid in August. They gave me a 1098T for it and so I entered it (alongside my university me info) when prompted. The return I filed checks ‘no’ for ‘being enrolled at least half-time’ but then continues to claim the lifetime earning credit, with $66 nonrefundable education credits. Will they just have me file an amended return and call it even? Sorry for being pretty uneducated about this. barclayed fucked around with this message at 22:37 on Feb 21, 2024 |
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Feb 21, 2024 16:35
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If my student loans are forgiven, is that reported on a 1099-C? If so, then a bunch of people are going to have a real rude awakening next year when they get four figure tax bills they weren't expecting.
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Feb 22, 2024 18:43
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If I'm sued for negligence and my assets are liquidated to pay a 5 million dollar judgment can I deduct that as a tax loss?
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Feb 22, 2024 19:25
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Konstantin posted:If my student loans are forgiven, is that reported on a 1099-C? If so, then a bunch of people are going to have a real rude awakening next year when they get four figure tax bills they weren't expecting. https://www.forbes.com/sites/adamminsky/2023/01/24/will-you-be-taxed-on-student-loan-forgiveness-in-2023-key-details Seems like people won’t be taxed for it at the federal level for now: quote:While all federal student loan forgiveness is temporarily tax-exempt at the federal level, this is temporary under the provisions of the American Rescue Plan Act of 2021. Unless Congress extends those provisions or makes them permanent through new legislation, the tax relief expires at the end of 2025. Some states may tax it: quote:While the American Rescue Plan Act of 2021 exempts federal student loan forgiveness from federal taxation, it does not necessarily exempt borrowers from state income taxes. Many states have laws or policies that mirror the federal tax treatment of debt cancellation events, but this is not always the case. It is possible in certain situations that a borrower could incur state taxation as a result of student loan forgiveness, even if it is not taxed federally. https://www.forbes.com/sites/adamminsky/2022/08/29/bidens-student-loan-forgiveness-could-be-taxable-in-some-states quote:According to the Tax Foundation, 13 states could treat Biden’s student loan forgiveness initiative as taxable income to borrowers. The states are Arkansas, Hawaii, Idaho, Kentucky, Massachusetts, Minnesota, Mississippi, New York, Pennsylvania, South Carolina, Virginia, West Virginia, and Wisconsin.
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Feb 23, 2024 03:50
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Canine Blues Arooo posted:I have an issue very similar to this: I work for a CA company, and moved to OR this year mid year; I am under the impression (and my first pass thru Freetaxusa is as well) that CA wants some money since all my income is generated there, and OR also wants some since part of my years income was generated while I live here. There is a credit in OR state filing for the taxes I owe/paid to CA but I’m confused by the idea that CA wouldn’t expect anything from you and let you give it all to MN? IANATax preparer, so this is mostly a question out to the thread where a few might lurk in the depths.
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Feb 23, 2024 04:43
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Got a Notice 54 along with my refund, indicating a difference from my calcs of about $300; I'm going to be very curious to learn what it was. Also these new notices are great.
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Feb 23, 2024 05:51
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Not sure if this is the right thread, but anyway- I'm British but live in the US. I've got a couple of pensions still in the UK. If I take out the cash in a lump sum and transfer it to a US account, does that count as income in the US for tax purposes? I'll be using a big chunk of it to pay off a HELOC, if that makes any difference.
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Feb 23, 2024 10:01
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Unkempt posted:Not sure if this is the right thread, but anyway- The UK (and other countries) have double taxation treaties. For these countries, generally speaking you will only pay taxes in the country of origin of the income. I don’t know if you need to report it or not. https://home.treasury.gov/system/files/131/Treaty-UK-7-24-2001.pdf
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Feb 23, 2024 13:36
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dpkg chopra posted:The UK (and other countries) have double taxation treaties. For these countries, generally speaking you will only pay taxes in the country of origin of the income. That sounds like the sort of thing I was hoping for, thanks.
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Feb 23, 2024 16:52
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How long does it take to show that your tax return was processed in your online IRS account? At the moment, it is still showing up as "Your 2023 Tax Return Is Not Processed". I have some taxes due and want to pay via my online IRS account and wondering if I should wait until it is processed or I can pay already. I e-filed it with an online tax software.
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Feb 24, 2024 23:36
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Busy Bee posted:How long does it take to show that your tax return was processed in your online IRS account? If you owe your return isn't processed until either 1) it is paid in full or 2) June-ish
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Feb 25, 2024 00:58
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sullat posted:If you owe your return isn't processed until either 1) it is paid in full or 2) June-ish Ah okay, so I should go ahead and pay now through my online IRS account instead of waiting for it for the status to change. Right now, in my IRS account it says "Your 2023 Tax Return Is Not Processed" and "Total Amount Owed as of February 24, 2024: $0.00". I was thinking the status would change from not processed to processed and it reflecting the total amount owed.
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Feb 25, 2024 01:21
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You should already know the total amount since it was on your return, penalties and interest don't start accumulating until April 15th so if you wait until you get the bill in June you will have to pay extra.
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Feb 25, 2024 05:45
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My mother is a non-US citizen. She is unfortunately very ill and does not have much time left. Knowing this a few months ago she withdrew all her liquid assets from her bank accounts, over $500k in cash and gold, mostly to have me avoid paying any inheritance tax in that country. It's currently sitting in a safe. I'd like to transfer this amount to my US checking account. Would this transfer be taxed? Does it count as inheritance or income, or just a gift? I've been unemployed for the past 18 months as I quit my job moved back in with mom to take care of her, so I'll declare a very small amount of income this year. I'm worried half a mil suddenly appearing in my bank might raise some flags and get me in trouble. UnfurledSails fucked around with this message at 12:28 on Feb 25, 2024 |
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Feb 25, 2024 10:40
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You're probably fine on the US side. Depending on your mother's country of residence, you might have a very hard time moving that money out of the country unless you fly there and stuff it down your pants on the way back. Basically, you're worried about the wrong country.
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Feb 25, 2024 13:06
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There shouldn't be any US tax on the transfer, but if you're a US citizen or resident and your mother is not, then you do have to file form 3520 with the IRS to report the gift from your mother, or else potentially face a $10,000 penalty.
Telegnostic fucked around with this message at 14:12 on Feb 25, 2024 |
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Feb 25, 2024 14:10
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UnfurledSails posted:My mother is a non-US citizen. She is unfortunately very ill and does not have much time left. Knowing this a few months ago she withdrew all her liquid assets from her bank accounts, over $500k in cash and gold, mostly to have me avoid paying any inheritance tax in that country. It's currently sitting in a safe. Your bank will ask about it, don't lie to them, and they'll file a Currency Transaction Report and a Suspicious Activity Report as required by FinCen. These will promptly be filed and ignored. Do NOT make a bunch of small deposits of this money to try and avoid this reporting, because that is a crime.
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Feb 25, 2024 17:48
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Gabriel Grub posted:You're probably fine on the US side. Depending on your mother's country of residence, you might have a very hard time moving that money out of the country unless you fly there and stuff it down your pants on the way back. Yes, but if this money is literally all in cash and gold, its probably not going to be easy to bring it into the US either. You have to declare it when entering the US, and approximately 100% of people traveling with half a million in cash and gold are doing crimes (in this case, tax evasion). I would not be surprised at all if they money was seized.
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Feb 25, 2024 18:26
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Isn’t it not a tax free transfer until it’s actually an inheritance ie until the person passes away?
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Feb 25, 2024 18:29
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I suppose that depends on the laws in the originating country. Inside the US, between US citizens, it wouldnt be a problem to give a $500k gift tax free. But that is because there is a huge estate tax exemption, currently >$13M. So, $500k wouldn't be taxed on death either. If the mother took out $500k for the express purpose of avoiding inheritance tax, presumably the laws are different where she is.
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Feb 25, 2024 18:39
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bird with big dick posted:Isn’t it not a tax free transfer until it’s actually an inheritance ie until the person passes away? Yeah there's no taxes on gifts or inheritances as long as the lifetime total is below the threshold which varies from time to time but is several millions of dollars high.
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Feb 25, 2024 20:45
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This isn't as cut and dry - is mom in the USA? On what status? I thought the exemptions were only for US Citizens? Where is the money physically and which country did she withdraw it from?
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Feb 25, 2024 21:38
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H110Hawk posted:This isn't as cut and dry - is mom in the USA? On what status? I thought the exemptions were only for US Citizens? Where is the money physically and which country did she withdraw it from? The exemption is for US citizens and residents. Nonresident aliens have a much smaller exemption, but it's also a question of whether she has a US estate which your questions get at.
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Feb 25, 2024 23:10
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Gifts of US situs property are potentially subject to US estate and gift tax. The exemption is for US citizens and residents. Accordingly, we usually advise that gifts of this type occur from a foreign bank account to a foreign bank account so there is no question the cash and gold is not US situs. Hawk raises a very good point though. Is your mother a US resident? Where do you both live? Agreed also the other country may be a bigger issue, as well as trying to travel with 500k in cash and gold (if nothing else you could get robbed).
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Feb 26, 2024 00:54
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I was not serious about the traveling with half a million dollars cash and bullion, guys. Don't do that. The post implies that mom and wealth are situated in her country of citizenship. Gabriel Grub fucked around with this message at 01:24 on Feb 26, 2024 |
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Feb 26, 2024 01:19
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