|
22 Eargesplitten posted:Makes sense, I guess. If it’s noted as a bonus on the W2 it’s taxed at 25%, but if it’s part of your normal paycheck it’s taxed like normal? What it gets withheld at is different then what it gets taxed at. It gets taxed the same as any other income at tax time, but your company can opt to withhold it at 25% if it's a bonus instead of doing some math. The difference between what that money got withheld at and what it actually gets taxed at will get rectified when you file your taxes in the form of a refund or a tax bill.
|
#
?
Jan 5, 2018 20:03
|
|
|
|
| # ? May 25, 2024 00:52 |
|
|
Okay. That’s what I had initially thought. That typo just threw me off. Well, that’s good. I had expected high withholdings but normal taxes on the bonuses this year, I would have to gently caress with my withholdings otherwise.
|
|
#
?
Jan 5, 2018 20:13
|
|
|
Withholding strategies vary for bonuses. Mine get treated as a monthly check so they end up with a significantly higher withholding that what I really owe because it assumes my income is a lot higher than it actually is. This is kind of annoying.
|
|
#
?
Jan 5, 2018 20:36
|
|
|
KYOON GRIFFEY JR posted:Withholding strategies vary for bonuses. Same.
|
|
#
?
Jan 5, 2018 20:43
|
|
|
So, I got a raise to 72k from 47k, plus I'm hourly and being in IT, overtime is guaranteed. I earned 52k in 2017, so it looks like I'm out of EITC territory, but I'm not concerned with 2017. Anything I can do to reduce my tax load? I have a 401k currently, but that is going away as the raise is coming from a transfer from a contractor to the client. The client has a 403b which they will not match contributions in for a year, so I'm not interested in rolling over, and I'm going to roll over into an IRA. I figure I'll max out IRA contributions at least. Single CA 28 y/o 72k base pay, but if I do as much OT as I did in 2017 it'll be closer to 80k. No student loans, property, or dependents.
|
|
#
?
Jan 6, 2018 04:42
|
|
|
skooma512 posted:So, I got a raise to 72k from 47k, plus I'm hourly and being in IT, overtime is guaranteed. I earned 52k in 2017, so it looks like I'm out of EITC territory, but I'm not concerned with 2017. Is it likely that you'll see similar raises in the near-ish future that could bring your income above $120k or so? You might want to re-think rolling over your 401k into an IRA to preserve your ability to do a backdoor Roth IRA if that's the case. Also, even though your company may not match contributions, if you can contribute to the 403b plan yourself, then an AGI above $73k means you cannot deduct Traditional IRA contributions. The easiest way to reduce your tax load is to contribute to the 403b.
|
|
#
?
Jan 6, 2018 06:29
|
|
|
Ancillary Character posted:Is it likely that you'll see similar raises in the near-ish future that could bring your income above $120k or so? You might want to re-think rolling over your 401k into an IRA to preserve your ability to do a backdoor Roth IRA if that's the case. Also, even though your company may not match contributions, if you can contribute to the 403b plan yourself, then an AGI above $73k means you cannot deduct Traditional IRA contributions. The easiest way to reduce your tax load is to contribute to the 403b. Yeah I was reading about that. So if a plan is offered at all, that is the only way I can reduce my AGI? I do not believe my income will achieve such heights... but then again this raise came out of nowhere as I was expecting 59k at the very highest.
|
|
#
?
Jan 7, 2018 09:10
|
|
|
So my W-2 employer dated my most recent paycheck 12/29/17, which is the day the last pay period ended, but I didn't receive it until today, which is my expected payday. All previous paychecks were dated for the last day of the pay period they're for and were also not available until the week after when my boss would get them from their accountant. The YTD amounts on my pay stubs include everything for 2017, so I expect that this most recent paycheck will be included on my W-2. With my 1099 income, whenever someone backdated a check, I would just subtract it from my Schedule C and made note to include it the following year. Is there a similar way to do it for W-2 income, or should I just roll with what's included on the W-2 to save myself headaches with the IRS as I don't expect my employer to issue a corrected W-2?
|
|
#
?
Jan 8, 2018 02:00
|
|
|
So my dad is getting a bit of a windfall from some inherited property and I'm wondering abou the tax issues. I'm slightly concerned my dad will not be proactive, or even reactive, when it comes to paying the taxes and will end up in a bad spot so hoping to be able to explain roughly what's going on and what he might be owing (and to go to a professional to handle it!). My grandfather bought a piece of land with a few other people many years ago. When he died, his share passed to my grandmother. When she died, her share passed to my dad and his siblings. The other original shares have been similarly divided up over the years. The land and buildings had been rented out for several years and my dad was getting some tiny annual check for a while. Then last year they finally got everyone to agree to sell. The final closing will be in 2018. Going by the sale value and dividing by number of shares, my dad will likely get around 100k. Unclear what kind of costs will take a bite out of it. He lives in California, the land is in Hawaii. This is basically going to come down as a capital gain? Which CA will tax as regular income? He's a state retiree, so he gets a pension of about 50k per year. But what is the basis for the land? FMV when it was inherited? That was only about 5 years ago, so probably not a huge change but how on earth do you estimate that?
|
|
#
?
Jan 8, 2018 23:30
|
|
|
The basis should be the fair market value of the property when your dad inherited the property divided by the percentage of it that he owns. The gain on the sale of that property should be similarly divided. Further reading here: https://www.irs.gov/faqs/interest-dividends-other-types-of-income/gifts-inheritances/gifts-inheritances
|
|
#
?
Jan 9, 2018 00:46
|
|
|
I am salaried and I paid about $50 less in combined federal tax/SS/Medicare for my first 2018 paycheck than on all my 2017 paychecks. Is this as a result of the new tax law? Everything else stayed the same. Is there any other reason for a drop like that?
|
|
#
?
Jan 9, 2018 16:20
|
|
|
Kase Im Licht posted:So my dad is getting a bit of a windfall from some inherited property and I'm wondering abou the tax issues. I'm slightly concerned my dad will not be proactive, or even reactive, when it comes to paying the taxes and will end up in a bad spot so hoping to be able to explain roughly what's going on and what he might be owing (and to go to a professional to handle it!). He has a few issues. Hawaii will tax the sale and he'll claim a credit on CA for taxes paid to another state. Overall, the math works out you wind up effectively pay the higher state rate between the two states, it'll just be split between the two. If the property is held in a pass-through entity you might look at paying tax at the entity level so your dad skips the headache of filing a Hawaii return. The depreciation previously claimed is subject to section 1245/1250 recapture at higher tax rates, be careful. Rest of the gains are capital gains, but CA doesn't give a crap - it's all the same to them. If they were lazy and skipped depreciation the IRS doesn't care, the rules clearly state "depreciation allowed or allowable." Have your dad consult with a pro. The partnership return/LLC return/trust return (if one was being filed) should have depreciable basis, ask the tax preparer for a copy of the schedule. If someone was lazy and didn't do it, you can do a retroactive valuation back to what it was worth and then share that value with the whole value to dilute the cost. CAREFUL: In cases like this it's not uncommon for the property to be gifted PRIOR to death, meaning the gifted basis carries over, not fair market value (FMV). That's awful, so make sure your legal paperwork has a nice, clear trail and have your dad keep copies for seven (7) years to prove it was inherited. PLANNING TIP: If your dad has a stock account that's "non qualified" (not retirement) that has unrealized losses, sell those and use the losses to offset the property gain. Watch out for the wash-loss rules if he does do this. BAD NEWS: If you're dad is on medicare, this income MIGHT cause his medicare premiums to bump up for a year until his income comes back down. They automatically handle this when he files his taxes, and it will appear his social security takes a hit (again, if he's on medicare). Last pointer: The owners could look at doing an 1031 exchange, and with a little pre-planning, the owners can head off on their own and sell/exchange independent of the other owners, BUT you need to watch any title transfers too close to sale - be careful the IRS doesn't blow up your exchange. Some states don't like when you exchange out from their state to another state under the assumption (usually correct) that you'll never come back and pay taxes, but look into it if he's interested in not paying taxes.
|
|
#
?
Jan 10, 2018 00:21
|
|
|
If I pay 1040ES taxes online do I also need to mail the voucher or does that take care of it?
|
|
#
?
Jan 16, 2018 15:22
|
|
|
If you paid online the voucher is meaningless to you, just keep your payment conf# in case the IRS conveniently "forgets" you paid and asks you to pay again.
|
|
#
?
Jan 16, 2018 18:59
|
|
|
With the new tax law is there any tax benefit to establishing an LLC for self employment stuff that I have claimed on Schedule C in the past? We’re talking small time retail on ebay and stuff, probably under $20k in gross receipts this year.
|
|
#
?
Jan 16, 2018 21:28
|
|
|
black.lion posted:If you paid online the voucher is meaningless to you, just keep your payment conf# in case the IRS conveniently "forgets" you paid and asks you to pay again. Awesome, thanks. Saved the confirmation page as a pdf
|
|
#
?
Jan 16, 2018 22:08
|
|
|
tumblr hype man posted:With the new tax law is there any tax benefit to establishing an LLC for self employment stuff that I have claimed on Schedule C in the past? We’re talking small time retail on ebay and stuff, probably under $20k in gross receipts this year. I don't know if there are any state reasons for doing that, but at least for federal purposes, a single member LLC is a disregarded entity and would show up on a schedule C anyway. If your gross receipts are that small, the net income probably wouldn't be high enough for the new pass-through deductions to make much difference either way.
|
|
#
?
Jan 17, 2018 05:29
|
|
|
I paid my MIL for child care with my Dependent FSA. I read a Marketwatch article saying that I should fill out a W2 for her, but her tax guy is telling her she needs a 1099. Which is the right form?
|
|
#
?
Jan 17, 2018 19:17
|
|
|
kys posted:I paid my MIL for child care with my Dependent FSA. I read a Marketwatch article saying that I should fill out a W2 for her, but her tax guy is telling her she needs a 1099. Which is the right form? Is she an employee (you are withholding taxes, etc)? W2. Is she an independent contractor? 1099. Chances are good you are treating her as a contractor but she actually fails that test and should be an employee.
|
|
#
?
Jan 17, 2018 19:39
|
|
|
I have a question. I work remotely. Once a year I spend a month in South America or wherever. Do days outside of the US for a US-based employer have any tax implications for my employer?
|
|
#
?
Jan 17, 2018 23:27
|
|
|
I just put my wife's W2 into turbotax and we owe the IRS $6,000 for 2017. She got a nice raise about half way through the year and a 5% bonus. Could that have thrown something off, or is something wrong with her W4?
|
|
#
?
Jan 19, 2018 01:06
|
|
|
laxbro posted:I just put my wife's W2 into turbotax and we owe the IRS $6,000 for 2017. She got a nice raise about half way through the year and a 5% bonus. Could that have thrown something off, or is something wrong with her W4? Yes, because it means the first half of the year didn't have enough money witheld if her raise changed tax brackets for you.
|
|
#
?
Jan 19, 2018 01:22
|
|
|
Which TurboTax do I need to buy if I have restricted stock dividends and vesting but no sales of stocks?
|
|
#
?
Jan 19, 2018 01:27
|
|
|
RSU dividend equivalents are just income and should appear on your W2, so need for a fancier Turbotax to handle that.
|
|
#
?
Jan 19, 2018 04:30
|
|
|
Quit Claim Deed Question My wife's parents filed a Quit Claim Deed in 2010 for their home which was equally split between my wife and her brother. After the death of their father last year, their mother wanted to move into a smaller home and so they sold the property and equally split the profit between my wife and her brother. Can anyone help explain the tax consequences of this? Neither brother or sister lived in the house since 2010. At the time of the deed, the total value transferred was $42000 and they sold the home for $205,000. How does Form 709 (Gift Tax) factor into this? I am going to need to get my taxes done, aren't I?
|
|
#
?
Jan 20, 2018 04:22
|
|
|
Doc_Uzuki posted:Quit Claim Deed Question Since they gifted the house to your wife and her brother, the capital gain on the sale is calculated off her parents' basis in the property and not what the house was worth when it was transferred. The change in basis only occurs when the transfer of ownership occurs upon death as part of an inheritance. Since they didn't live in the house, more than likely they do not qualify for the personal use exemption and will owe tax on all of the gains. Was the value of the transfer $42,000 to each sibling or both siblings together? If it was $21,000 to each sibling, then there's probably no need to fill out the gift tax form. In 2010, the annual exclusion was $13,000 per person, so her parents could have gifted $26,000 under the exclusion. However, if your wife or her brother received other large monetary gifts in the same year that would've exceeded the exclusion, then her parents would have had to fill out the gift tax form. Still, tax is unlikely to be owed by her parents, but it would reduce their lifetime exclusion, which has usually been in the 7 figures range, though I don't know what it was for 2010. Ancillary Character fucked around with this message at 05:41 on Jan 20, 2018 |
|
#
?
Jan 20, 2018 05:39
|
|
|
Ancillary Character posted:Since they gifted the house to your wife and her brother, the capital gain on the sale is calculated off her parents' basis in the property and not what the house was worth when it was transferred. The change in basis only occurs when the transfer of ownership occurs upon death as part of an inheritance. Since they didn't live in the house, more than likely they do not qualify for the personal use exemption and will owe tax on all of the gains. Thanks for all of your help! To answer your question, the form that was filed in 2010 states "Value Transferred: $41,745" with both of their names as Grantees. To determine the basis for the home, would it be what the parents paid for it or what it was worth at the time? They purchased the property in 2002 and built the home themselves... the county taxes assessed it at $167k that year. Edit: Reading about it more, the $41,745 is probably their basis, correct? It was most likely the cost of the land itself. I can then include any improvements to the property (the entire house) but I will need to know how much they spent on building it. Jesus Christ. Doc_Uzuki fucked around with this message at 07:58 on Jan 20, 2018 |
|
#
?
Jan 20, 2018 07:41
|
|
|
JohnnyPalace posted:I don't know if there are any state reasons for doing that, but at least for federal purposes, a single member LLC is a disregarded entity and would show up on a schedule C anyway. If your gross receipts are that small, the net income probably wouldn't be high enough for the new pass-through deductions to make much difference either way. Thanks, thats what I figured initially and I did some more reading and saw the disregarded entity bit.
|
|
#
?
Jan 20, 2018 17:04
|
|
|
balancedbias posted:Yes, because it means the first half of the year didn't have enough money witheld if her raise changed tax brackets for you. Wouldn't you over withhold in that case? The second half of the year aren't you getting withheld at a rate that assumes you've been paid the higher wage through the whole year? (I say this as someone who admitted to screwing up their withholding in this very thread...) laxbro posted:I just put my wife's W2 into turbotax and we owe the IRS $6,000 for 2017. She got a nice raise about half way through the year and a 5% bonus. Could that have thrown something off, or is something wrong with her W4? Do you and your wife make similar amounts of money? I seem to recall the W-4 being inaccurate in dual income cases especially when the incomes are similar.
|
|
#
?
Jan 20, 2018 21:26
|
|
|
Doc_Uzuki posted:Thanks for all of your help! It's most likely the cost of the land if they bought an empty lot plus the cost of building the house to get her parents' basis. You may prefer to have an accountant do your taxes this year to make sure there wasn't any depreciation stuff involved that could also affect the basis.
|
|
#
?
Jan 20, 2018 22:41
|
|
|
balancedbias posted:Yes, because it means the first half of the year didn't have enough money witheld if her raise changed tax brackets for you. You've got that backwards. Post raise they'll withhold as if you had been making that amount the entire year so you end up with a refund. If they owe it is because of something else.
|
|
#
?
Jan 21, 2018 00:53
|
|
|
Thoguh posted:You've got that backwards. Post raise they'll withhold as if you had been making that amount the entire year so you end up with a refund. If they owe it is because of something else. My guess is it's this: ohgodwhat posted:Do you and your wife make similar amounts of money? I seem to recall the W-4 being inaccurate in dual income cases especially when the incomes are similar. The IRS' "Married" withholding rate works when your spouse doesn't earn any income. If you earn comparable amounts, you should check "Married, but withhold at single rate" on your W4. This got me a little bit when we first got married.
|
|
#
?
Jan 21, 2018 03:52
|
|
|
I do a tiny amount of IT consulting as a side job. I'm working through turbotax for 2017. How do I account for items I purchased specifically for a job? For example I purchased 5 licenses of Office 2016 for a client at a cost of $200 a license. I would think it'd be inventory and not supplies. Thoughts?
|
|
#
?
Jan 21, 2018 21:56
|
|
|
mysteryberto posted:I do a tiny amount of IT consulting as a side job. I'm working through turbotax for 2017. How do I account for items I purchased specifically for a job? For example I purchased 5 licenses of Office 2016 for a client at a cost of $200 a license. COGS. Cost Of Goods Sold.
|
|
#
?
Jan 22, 2018 00:13
|
|
|
gently caress you, AMT. That is all
|
|
#
?
Jan 22, 2018 05:02
|
|
|
E: nevermind, I have figured it out
Bread Set Jettison fucked around with this message at 14:54 on Jan 22, 2018 |
|
#
?
Jan 22, 2018 14:52
|
|
|
edit, nope, guess not.
wormil fucked around with this message at 08:55 on Jan 24, 2018 |
|
#
?
Jan 23, 2018 00:18
|
|
|
Just as a heads up: H&R block online is seriously incapable of basic math this year. Basic return - W2, standard deduction, dependents, EIC. IRS and every other tax service says I qualify, H&R says "Your income, listed here, is higher than this cutoff listed here so no EIC for you." The problem is that the listed income number is clearly lower than the cutoff. (Income ~50k and the EIC cutoff for MFJ w/3+ dependents this year is $53,930) It's such a braindead mistake you have to wonder: how many other things have they gotten wrong? Their guarantee is pretty garbo too: quote:Maximum Refund Guarantee. If you discover an H&R Block error on your return that entitles you to a larger refund (or smaller tax liability), we'll refund the tax prep fee for that return and file an amended return at no additional charge. Had I not been smarter than their monkeys on keyboards it would have cost me over $600. I just went with somebody else instead who got it right. This is why I spend the time doing my taxes twice. E: Clarified which H&R service messed up and how. Harik fucked around with this message at 08:00 on Jan 24, 2018 |
|
#
?
Jan 24, 2018 07:45
|
|
|
Alright, quick question. I received about $1800 in 2017 from an internet trivia game after spending about $300 on credits, of which I used ~$100. The site owes me (and others) a good deal more and has done their best to completely disappear without a trace. I don't anticipate that I'll receive a 1099 (or more money, at least any time soon). Will I put this somewhere else on the return or will I do a 1099 with as much info as I have? (And should it be the full $1800, $1700 for my actual entries, or $1500 for my actual profit? I know this is a huge "it depends" so no worries, I can figure that out later). Thanks
|
|
#
?
Jan 24, 2018 12:01
|
|
|
|
| # ? May 25, 2024 00:52 |
|
|
Spokes posted:Alright, quick question. I received about $1800 in 2017 from an internet trivia game after spending about $300 on credits, of which I used ~$100. I would put the $1800 on line 21 (other income) and deduct the $300 on either line 23 or line 28 of the schedule A (miscellaneous other expenses).
|
|
#
?
Jan 24, 2018 16:15
|
|
