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Did you specifically tell him that you contributed to your Trad IRA and then did a backdoor conversion? If not, he probably just reported the 1099-R straight up without thinking too much about it.
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# ? Mar 22, 2024 03:56 |
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# ? May 13, 2024 10:40 |
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Jobert posted:Do you have the 1099-R from the traditional IRA? It will have the total amount listed on 2a as taxable amount, but then will also have 2b "taxable amount not determined checked". They left 1040 a blank, and put the $ 6500 on line 4b. The 1099-R does have the $6500 on line 2a of the 1099-R as 6500 an 2B was marked taxable amount not determined checked. Did not have a balance in the Tradition IRA before the original deposit.
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# ? Mar 22, 2024 05:33 |
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Ungratek posted:Did you specifically tell him that you contributed to your Trad IRA and then did a backdoor conversion? If not, he probably just reported the 1099-R straight up without thinking too much about it. I did, but now I'm thinking he may not be very familiar with Backdoor Roth IRAs.
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# ? Mar 22, 2024 05:33 |
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KaLogain posted:I did, but now I'm thinking he may not be very familiar with Backdoor Roth IRAs. Might have screwed up then, yeah. Upshot is back door Roth uses Form 8606 to report everything; Part I shows the traditional IRS was made with nondeductible contributions, Part II shows the actual Roth conversion.
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# ? Mar 22, 2024 18:45 |
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KaLogain posted:They left 1040 a blank, and put the $ 6500 on line 4b. The 1099-R does have the $6500 on line 2a of the 1099-R as 6500 an 2B was marked taxable amount not determined checked.
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# ? Mar 22, 2024 20:13 |
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How long should I expect to wait to hear about an amendment I made to a past tax return? Will they contact me if it’s accepted or denied? Or do I just receive a check in the mail? (I’m owed a few thousand dollars)
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# ? Mar 22, 2024 20:23 |
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RCarr posted:How long should I expect to wait to hear about an amendment I made to a past tax return? Will they contact me if it’s accepted or denied? Or do I just receive a check in the mail? (I’m owed a few thousand dollars) The amendment I sent in 5+ months ago is still in received but not processed status.
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# ? Mar 22, 2024 20:54 |
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Subvisual Haze posted:https://sa.www4.irs.gov/wmar/ you can look up the status here
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# ? Mar 22, 2024 22:36 |
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How did it get to the point where any paper returns are now “maybe in six months we will look at it”? I thought they used to OCR paper filings and convert them into raw data and then run them through the mainframes. How did it regress?
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# ? Mar 22, 2024 22:46 |
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smackfu posted:How did it get to the point where any paper returns are now “maybe in six months we will look at it”? Covid, I assume. A client's accountant described where they put paper filings as the warehouse at the end of Raiders of the Lost Ark.
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# ? Mar 23, 2024 13:20 |
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smackfu posted:How did it get to the point where any paper returns are now “maybe in six months we will look at it”? Original return print filings get the info typed in manually and then the return goes into storage for seven years. That's why if you want to order a photocopy of an actual physical return rather than just getting a transcript of the data you have to cough up $50 so some center drone can go dig it up out of the archives. Other taxpayer correspondence including amended returns usually get scanned in, but only as an image and not an OCR. As to why things are taking longer than usual, COVID was a contributing factor but like so many things it mostly only accelerated pre-existing deteriorating conditions rather than being the sole or primary cause. The current mainframe is over 50 years old and is an increasing struggle to maintain because the number of programmers who can work with it is steadily decreasing as they die of old age, we have to have parts like the magnetic tapes used for data storage specially manufactured because no one else uses that type anymore, etc. There has been a project underway to replace it with a more modernized mainframe but that's consistently remained something we'll implement in the next 7-10 years for the decade plus I've been working at the IRS. The biggest reason for the delay has been a combination of budget cuts and other more immediate priorities, which is what's undercutting everything else as well. Employee attrition is significant and likely to get a lot worse. Close to half our current work force is at or near retirement age and likely only holding on because the economy sucks to hard to retire. New recruit hiring is abysmal because while the benefits and security of being a government employee can outweigh the lesser pay of doing the same work in the private sector that's dependent on being financially secure to make that trade off in the first place which many people are not these days. Retention is also getting increasingly worse because it can also be a technically demanding job, but the IRS has truncated training times and new hire support and no longer cultivates new employees by starting them off in simpler positions and helping them build up their skills but instead throws them right into the meatgrinder because that's where the immediate need is and the administrative staff is increasingly detached from those positions so they don't even understand what the problem is much less how to address it. The IRS was even under a Reduction in Force order for years because Republican congressmen think the government in general and the IRS in particular has too many employees, so we didn't have the authorization to hire enough people to replace all of the ones retiring or leaving for other jobs, much less additional staffing. The fact that this benefited their donors by increasingly limiting the resources and trained personnel necessary to pursue tax malfeasance by high-dollar earners while only harming average taxpayers who suffered from the increasingly limited help and delayed return processing is surely a coincidence. On-going increases in identity theft are also hitting really hard. It's a barely-funded mandate that requires a lot of expertise in numerous areas including criminal investigation as well as knowledge of IRS systems to make the tortuous account corrections once you've got things sorted out. Because of the aforementioned employee issues above, we have less and less people to handle an increasingly difficult and frequent problem. In the last few years those combined factors have driven the average handle time of identity theft cases from 120 days to 650 days. And it has a lot of collateral effects as well. The filters used to try to stop identity theft returns from processing also catch a lot of false positives, so even cases that are not actual identity theft suffer delays from various verification procedures. There's more and more dumbfuckery too like people filing returns with blatantly fraudulent items like large Fuel Tax or Claim of Right Credits because Facebook told them they could get a huge payday. These all pretty much get flagged immediately but still bog things because first we have to verify if it was the actual taxpayer who filed it in the first place, then it has to go through an audit so exam can verify the claim is bullshit, and so the schmuck thinking he got a get-rich quick scheme instead has to wait for several months to over a year only to get a letter telling them they need to file a corrected return in 30 days or eat a $5,000 fine and no we won't help them they need to sort it out themselves. Which would be a fine consequence except all of this fraud is further gumming up an already-jammed system. TL,DR: The IRS is undergoing all of the same deterioration of government institutions that you usually see in late-stage imperial collapse. gently caress me for still being here, good night and good luck to all of you unfortunate people caught up in this bullshit through no fault of your own, and I'll have a Baconator meal with BBQ sauce for the fries, please.
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# ? Mar 23, 2024 17:26 |
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On the brighter side the current admin pushed through a major IRS funding increase and they’ve fought to protect it tooth and nail; IRS also got to begin the long fabled process of setting up free filings, which can eventually undercut and kill off the preparer interests that make everything about the tax system suck.
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# ? Mar 23, 2024 19:18 |
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Discendo Vox posted:On the brighter side the current admin pushed through a major IRS funding increase and they’ve fought to protect it tooth and nail; IRS also got to begin the long fabled process of setting up free filings, which can eventually undercut and kill off the preparer interests that make everything about the tax system suck. The free filing project is neat but the funding increase doesn't seem to have resulted in a hiring increase.
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# ? Mar 23, 2024 21:40 |
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sullat posted:The free filing project is neat but the funding increase doesn't seem to have resulted in a hiring increase. That's possibly correct, but the suck at IRS was so deep and so long that I could see it being used entirely productively on basically any part of the organization.
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# ? Mar 23, 2024 23:32 |
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sullat posted:The free filing project is neat but the funding increase doesn't seem to have resulted in a hiring increase. I think a lot of people pass because they need better pay to cover rent and other essentials right now. It's working out okay for me because I've got reliable transportation that's paid off, a relatively small remaining amount of mortgage that 's at an excellent percentage rate, etc., but if I did not have that pre-existing financial security and was coming in to the IRS at a starting position today I'd be struggling to cover rent and other basics with the pay being offered. Possibly getting a great retirement in a few of decades is not a powerful draw if the tradeoff is living in a refrigerator crate right now.
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# ? Mar 24, 2024 00:14 |
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Plus, the background check process to become a federal employee can take months, even for positions not dealing with classified information. For jobs where they have to compete with the private sector for talent, that can be a big issue, as there needs to be a pretty big carrot at the end to get qualified applicants to jump through all their hoops.
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# ? Mar 24, 2024 11:24 |
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So, our situation became somewhat more complicated last year, and I imagine we'll need to consult with someone, but just in case, I'm asking here. Last year, my father-in-law had a serious fall that required an extended stay in rehab before he was sent home. We had already been providing a lot of care for him, but that's ramped up since his discharge and he is no longer able to manage his affairs financially or otherwise. My wife has gone down to part-time work outside of the house to care for him. I have a WFH job that allows me to help when necessary as well. When she went down to part-time we drew up a new caretaker agreement that involved her father paying her for services in the home, which we have kept track of meticulously (she used to do Medicaid documentation). He is able to pay her for several years of these services because he retired with full pension from the Army Corps of Engineers and has several different types of savings. His children, my wife included, hold a POA jointly for him (2 half-brothers). We have lived with him since my mother-in-law passed in 2012 and he has had mostly gradual declines in his ability to take care of himself until last year. Now that we are in charge of his finances, we are trying to make sense of everyone's tax liability. Before 2023, he did his taxes separately and my wife and I filed jointly. We have one daughter living with us that we claim as a dependent, so there are 4 of us in the house. My original understanding was that he would need to apply for an Employer Identification Number (done), he would need to split FICA with Melanie, we would be taxed on money he paid Melanie, and so forth. But--is there a better way to do this? IRS documentation about taxation and caregivers seems to be predicated on the fact that caretakers live outside the home and are non-family members. Is there a more advantageous way to handle this when the pay is between family members all living together? We are trying to delay (as long as we can) the day that he will need to start pulling cash from his whole life insurance instead of other savings, as that money will mostly be going to his other children (the house will go to us), so we feel a responsibility not to overpay if we can avoid it.
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# ? Mar 25, 2024 01:16 |
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I was on SDI for two months in 2023. I owe a bunch in taxes, is that because they weren't deducted from the disability payments? Also around the time I was off/returning to work my employer forgot to pay me a bunch of money and I just received it. Would this count as 2023 income and if so, should I ask for a revised W2?
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# ? Mar 25, 2024 04:44 |
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Flora Finching posted:I was on SDI for two months in 2023. I owe a bunch in taxes, is that because they weren't deducted from the disability payments? Possibly; how were the disability payments reported to you? Or failing that, where did they go on the return? quote:Also around the time I was off/returning to work my employer forgot to pay me a bunch of money and I just received it. Would this count as 2023 income and if so, should I ask for a revised W2? Assuming you're cash basis like most people, what counts is when the money is actually paid, so that would probably be on a W-2 for 2024.
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# ? Mar 25, 2024 08:34 |
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I didn't get any forms from disability and there wasn't anything on the tax return that included it. Unemployment is on there which I remember doing from COVID lockdown but not SDI. It just seems pretty hosed up that I made 30K last year and owe $500. Maybe it's just this country that's hosed up and not my paperwork.
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# ? Mar 25, 2024 15:50 |
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Flora Finching posted:I didn't get any forms from disability and there wasn't anything on the tax return that included it. Unemployment is on there which I remember doing from COVID lockdown but not SDI. Stab in the dark here: how much in taxes did you have taken out from your unemployment pay? It should say on the 1099-G.
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# ? Mar 25, 2024 15:53 |
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Flora Finching posted:I didn't get any forms from disability and there wasn't anything on the tax return that included it. Unemployment is on there which I remember doing from COVID lockdown but not SDI. Your SDI may have been reported on a 1099-G which is the same form used for unemployment.
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# ? Mar 25, 2024 18:16 |
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Okay I didn't get a 1099G. I'll have to go to EDD and request one, it's not available on my account so I wasn't sure if it would be the same. Thank you!
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# ? Mar 25, 2024 20:26 |
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Flora Finching posted:Okay I didn't get a 1099G. I'll have to go to EDD and request one, it's not available on my account so I wasn't sure if it would be the same. Thank you! Were you unemployed? IIRC unless something has changed recently, CA SDI is only taxable if you were unemployed. If you were employed before and after, it's not taxable. https://edd.ca.gov/en/disability/SDI_FAQ_for_1099G/ quote:In most cases, Disability Insurance (DI) benefits are not taxable. But, if you are receiving unemployment, but then become ill or injured and begin receiving DI benefits, the DI benefits are considered to be a substitute for unemployment benefits, which are taxable.
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# ? Mar 25, 2024 23:02 |
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Small White Dragon posted:Were you unemployed? Hm, I wasn't unemployed. However, some specifics are different for state employees on SDI and some info on the benefit site is different from what I got when I entered the claim. CA is so, so bureaucratic.
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# ? Mar 26, 2024 01:46 |
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Does anyone know how the IRS determines 30C eligibility for credits on installing EV chargers? There is an unofficial map that shows me as eligible, but a mile in any direction is ineligible. I live in an area that is low income compared to the county but extremely high income compared to the country.
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# ? Mar 26, 2024 23:02 |
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drk posted:Does anyone know how the IRS determines 30C eligibility for credits on installing EV chargers? Notice 2024-20 identifies which census tracts are qualified. The form instructions have a worksheet that walks through determining if your location is eligible.
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# ? Mar 27, 2024 02:14 |
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Thanks. Looks like I'm in the appendix B list. No idea why they structured this such that you need to look up an obscure census tract ID and and search 1500 pages of PDF for it
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# ? Mar 27, 2024 02:29 |
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I worked in 4 states last year. Filed taxes for MA, NY, and ME. For whatever reason the HR Block software cuts you off at 3. I worked for like part of a day in RI and made a little over 100 bucks in 2023. Am I ok if I just don’t bother?
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# ? Mar 31, 2024 04:48 |
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I have waited until the last minute (had to deal with my dad having a heart attack a few weeks ago, he's doing well, now, though), and should have probably hired someone this year, but I am starting to do my taxes now, and it's more complicated than it has been previously. In Washington state (Seattle, specifically), if it matters; no state income tax to worry about, at least. Last year, I bought a house with two friends. Joint Tenancy with Right of Survivorship, all three of us on the title, all three of us on the loan. In the course of buying this house, as part of the contractual agreement with the sellers, they paid us two months of pre-paid rent, plus a month of rent as a deposit. This wasn't structured as a rentback because our lender doesn't like rentbacks, it was specifically two months of pre-paid rent plus a deposit, which would be waived if they were out by a specific date. Well, they overstayed that date by one day for reasons having to do with the Department of Revenue saying they couldn't have the money (it's a very long story, I told most of it in the homebuying thread, here are some highlights: part one, part two, part three, part four, I don't think they're necessary to answer my questions, and didn't want to waste people's time with it if they don't care). Escrow sent us a check for the $25,000, after talking to an attorney, we returned ~$19,000, kept the other ~$6,000. Lawyer charged us $380, which was, like, a third of what I was expecting. So, I have what I think are a couple of pretty easy questions that I've already done some research on, and am really just looking for confirmation, and then a couple of harder question. 1) From what I can tell, mortgage interest can be claimed once, but should be claimable by any of the three of us, as long as we only claim it the one time between the three of us (e.g. this year, I'm the one claiming all of it, and that's okay because neither housemate is taking it); is this correct? 2) We spent ~$7300 buying points (we got a bunch of incentives and things that couldn't be used any other way), I can claim this as well, correct, as long as I'm the only one doing it? 3) I thiiiiiiiiink I have this figured out: report the ~$6000 as rental income, on form 1040 Schedule E, deduct the $380 for the attorney and the $20 for the wire fee to refund their money; technically, like, ~$17000 of the amount was "advance rent," but since we refunded it (and had they vacated on time, escrow would have refunded all of it), it feels like I can treat the remainder of the "pre-paid rent" as a deposit, and not report it? I'm not trying to get away with anything, we had this money for, like, a day. 4) I feel like the answer to this is "no," but we hired a different attorney to write up a real property agreement for us when we bought the house; can I deduct the cost of that attorney? I'm happy to answer more questions, I'm just a wordy motherfucker and trying not to eat up too much time of the people I'm hoping will help me. Thank you. Ham Equity fucked around with this message at 07:55 on Apr 2, 2024 |
# ? Apr 2, 2024 05:45 |
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Is there a non poo poo tax software that would work for someone filing abroad?
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# ? Apr 2, 2024 23:52 |
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I'm in a situation where I owe a significant amount to the IRS this year, which is alright. But on top of that, I've received 1040-ES forms asking for estimated payments of around $3,400 per quarter. It doesn't quite add up to me because I'm just a regular W-2 employee, not self-employed or anything like that. Would it make sense for me to adjust my withholding so it matches the total of these quarterly payments ($13,600), divided by the number of pay periods left in the year (20)? That way, I could cover my taxes without having to worry about quarterly payments? Would that result in a significant over payment for 2024?
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# ? Apr 5, 2024 10:58 |
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Did you receive the 1040-ES from TurboTax? It uses a very aggressive calculation for the estimated amount.
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# ? Apr 5, 2024 13:05 |
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smackfu posted:Did you receive the 1040-ES from TurboTax? It uses a very aggressive calculation for the estimated amount. I had my taxes prepared by a CPA this year, so I will ask him as well. I am open to adjusting my withholdings, but I want to avoid adjusting my withholdings and making estimated payments, as I believe that would lead to a significant overpayment. To simplify, let's assume I owe the IRS $5,000 for 2023. The CPA suggests making $10,000 estimated payments in each quarter of 2024 (4/16/24, 6/17/24, 9/16/24, and 1/16/25). Should I adjust my withholdings to pay an extra $5,000 in 2024 or an extra $10,000 in 2024?
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# ? Apr 5, 2024 13:26 |
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Go use the IRS withholding calculator. https://www.irs.gov/individuals/tax-withholding-estimator
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# ? Apr 5, 2024 15:10 |
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If your income/deductions/situation isn't changing this year from last just split up the amount you owed into a per paycheck extra amount. Or figure out why you underwitheld so much in the first place. (did you change jobs? Huge raise? Working spouse? All of those could cause this. Or you just need a new w-4) I have always found those automated estimated ones to be comically close to "if you choose to just pay quarterly instead of having it withheld on your paycheck." Like I assume there is a mandatory formula they're required to use because they've always been so insanely wrong.
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# ? Apr 5, 2024 19:41 |
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Subvisual Haze posted:https://sa.www4.irs.gov/wmar/ you can look up the status here I sent my amendment in about 2 months ago and it’s still not showing as received. Should I be worried?
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# ? Apr 5, 2024 20:25 |
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Xun posted:Is there a non poo poo tax software that would work for someone filing abroad? I was looking this up and found this article, which seems helpful (I've only ever used FreeTaxUsa while in the US so have no personal experience, yet...).
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# ? Apr 5, 2024 20:56 |
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I've never had any luck with websites when I lived abroad. I ended up just spending a weekend reading though the 1040 instruction book and double checking my forms with this excel spreadsheet. You'll have to file taxes by mail but good news is you get an automatic extension. The important forms are schedule 1 and form 2555 (foreign income), and schedule b (foreign bank account). Boris Galerkin fucked around with this message at 03:54 on Apr 6, 2024 |
# ? Apr 6, 2024 03:48 |
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# ? May 13, 2024 10:40 |
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Sock The Great posted:I had my taxes prepared by a CPA this year, so I will ask him as well. I am open to adjusting my withholdings, but I want to avoid adjusting my withholdings and making estimated payments, as I believe that would lead to a significant overpayment. To be honest, if he didn't discuss specifically what estimated taxes he was advising you to make then there's a good chance he just forgot to suppress the automatic estimated tax calculations in his software. I do the same every once in a while and get confused calls from clients and I have to explain that it's not mandatory and they can ignore it.
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# ? Apr 6, 2024 04:59 |