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Small White Dragon posted:Does income from the sale of a house (which is eligible for the capital gains exclusion) count towards the IRA contribution limits (Traditional or Roth)? Nope, capital gains isn’t eligible for the minimum $5,500 amount (earned income only basically), though it does count as far as the AGI phaseout of course. Magic City Monday posted:Yeah, this is what I do (MFS then switched to HoH when we had a kid). It's a hard sell to get your SO to willingly have a tax liability in the US, especially if you want to do certain kinds of investing (e.g. - owning ETFs in Germany) Honestly the usual logic for exclusion vs. the foreign tax credit I suggest is by whether the foreign country in question has a higher tax rate than the US. If it’s higher use the tax credit, lower tax rate use the exclusion, with obvious exceptions like for retirement contribution purposes where you go for the tax credit. Though admittedly this may depend on how the foreign taxes are applied, things sometimes get weird (especially those countries that have a different fiscal year for tax purposes or taxes that may not be “income taxes” for purposes of the credit) so I’ll grant if you’re doing it on your own exclusion might take less work to get right  .Oh and since you brought it up the Child Tax Credit got bumped to $2,000, but the max refundable portion is $1,400.
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Aug 7, 2018 08:24
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Magic City Monday posted:Yeah, this is what I do (MFS then switched to HoH when we had a kid). It's a hard sell to get your SO to willingly have a tax liability in the US, especially if you want to do certain kinds of investing (e.g. - owning ETFs in Germany) Don't forget to get your kid an SSN if you want to claim the CTC! I ran into a few people who delayed getting their kids an SSN and were denied the CTC.
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Aug 7, 2018 14:56
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sullat posted:Don't forget to get your kid an SSN if you want to claim the CTC! I ran into a few people who delayed getting their kids an SSN and were denied the CTC. Especially since the new law requires an SSN for the tax credit and an ITIN no longer qualifies for CTC. Which drat near makes dependent ITINs almost irrelevant thanks to the removal of exemptions; probably a feature for the people who wrote the law *sigh*.
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Aug 7, 2018 16:02
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sullat posted:Don't forget to get your kid an SSN if you want to claim the CTC! I ran into a few people who delayed getting their kids an SSN and were denied the CTC. Do you just need to have the SSN by tax deadline?
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Aug 8, 2018 00:35
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baquerd posted:Do you just need to have the SSN by tax deadline? Yes, though this includes extensions (including the automatic 2 month extension for living/working outside US or the 6 month one you can file for by April 15).
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Aug 8, 2018 03:02
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The term "automatic" in that is a little misleading. You still have to send in a letter with your return to specifically ask for it if you're not in the country. No letter, no 2 month extension. And it's an extension to file & pay so you deffo don't want to miss out on that if you can get it. But yeah, it's SSN issued by due date of the return or no CTC, AOTC or EITC for that kid.
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Aug 8, 2018 05:28
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If I wanted to do a tax course to learn more about helping people with taxes (considering becoming a CFP), should I use one of the big companies (hr block, liberty) or do the IRS VITA course or something else?
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Aug 10, 2018 00:15
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VITA only covers the most basic 1040s, which makes sense considering the most complex return you’ll probably see a clinic is schedule C.
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Aug 10, 2018 03:21
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Pretty much the same for H&R Block as far as subject matter (if understand correctly from the new folks they moved some of the stuff I learned in the basic class to follow up classes for hired people because a bunch of folks were taking the H&R Block classes then going to work elsewhere), *maybe* slightly more than the VITA class. I presume Liberty et al are also fairly similar. Also have to pay a decent chunk of change to take the company classes, so VITA probably beats that price wise obviously. I know H&R Block is starting up theirs about now at least, not sure schedule for other providers. There’s also a huge amount of continuing education classes out there since it’s a legal/work requirement especially for enrolled agents, so you’d have plenty of additional training to potentially access after the basic course if you want info in specific areas. Expect a high time commitment no matter what route you take, usually a fair amount of homework in addition to the actual class time.
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Aug 10, 2018 17:28
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I took the Block class a few years ago, it was suprisingly in depth. Met for 2 hrs, 3 days a week, for probably 8 weeks. Probably spent half the time doing returns on paper. We didn't touch the computerized systems until we had a good handle on how it was all supposed to work. We spent the vast majority going over the basics that families would typically have, especially children and dependents. Once we transitioned to software we quickly went over the more complicated things (schedule C, E, etc) but they had special classes for those. I personally learned a lot.
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Aug 11, 2018 00:40
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Yeah, I took Block's class as well. Probably the best ROI for a class I ever took, and that includes Law School (don't go).
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Aug 11, 2018 03:04
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MadDogMike posted:Pretty much the same for H&R Block as far as subject matter (if understand correctly from the new folks they moved some of the stuff I learned in the basic class to follow up classes for hired people because a bunch of folks were taking the H&R Block classes then going to work elsewhere), *maybe* slightly more than the VITA class. I presume Liberty et al are also fairly similar. Also have to pay a decent chunk of change to take the company classes, so VITA probably beats that price wise It's only like 150 bucks for the HRB class, the main difference for me was that you do most (all?) of the training online for VITA which sounds pretty great for me. Just wondering if there would be any huge gaps in scope of training. Sounds like either one would be good to start with. sullat posted:Yeah, I took Block's class as well. Probably the best ROI for a class I ever took, and that includes Law School (don't go).
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Aug 11, 2018 23:14
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I'm filling out a Form 706 for a deceased client and for their securities I am working off a Date of Death Valuation form directly from Merrill Lynch. Unfortunately for one of the securities Merrill Lynch was not able to give a valuation. Their note just says "We are unable to price this issue." What should I do? I cannot find this info on my own though I didn't think it was likely that I would be able to if ML doesn't already have it. The description is ESC CB DELTA PETE CORP (247ESCA14) if anyone has an idea what I should do.
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Aug 13, 2018 18:10
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Are you missing basis, valuation at date of death, or both?
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Aug 13, 2018 20:35
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black.lion posted:Are you missing basis, valuation at date of death, or both? All I have is the description of the security and the amount. What I need is the valuation at the date of death Edit: I tried searching it from my own investment account and found a match with a corporate bond that matured in 2006.... Not really sure what that implies to be honest. Epi Lepi fucked around with this message at 21:30 on Aug 13, 2018 |
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Aug 13, 2018 21:02
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Epi Lepi posted:All I have is the description of the security and the amount. What I need is the valuation at the date of death You need to call the broker. The 706 is looking for the date of death value, which means the average hi/lo value on that date (not opening/closing). If it's not being provided, you need clarification. Don't spend your charge hours on it, make the broker do the work. When I prepare these I send in the statements as backup, if the agency processing it sees an investment with no value they might start inquiring about the account, which is what you're trying to avoid. I never use the statement to prepare the 706, I'll put together an excel spreadsheet showing the calculation, or sometimes the broker can provide printouts doing your work for you. If the security matured or went worthless, get a written statement from the broker stating as much and include that with the filing (if it's firm policy).
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Aug 14, 2018 17:26
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My wife got a new job and we have to send our kid to daycare. This costs between $12-15k per year around here. How much can I deduct? I understand there's some kind of confusing $3000 credit? And max $5k into a dependent care account? How do these work and are there more deductions?
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Aug 16, 2018 16:09
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I've got another preparation question, I have a client who received a K-1 after the return was filed. The K-1 included schedules for about 2 dozen states. I am amending his federal and home state returns but we never filed returns for the other states since we had no reason to. Do I send in "amended" versions of the other states or just initial returns? I would figure that I would have to do just regular returns but my software (CCH Proystems) is throwing a fit at generating the other states unless I mark them amended.
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Aug 16, 2018 22:03
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I’m working on my yearly review of retirement accounts, and part of that of course involves potential future tax implications. I’d appreciate any feedback from those who may have some knowledge of taxes in Puerto Rico. Currently 39, eligible to draw a pension at 47, (after 27 years of service), but planning to retire between 52-55. In addition to my pension, I have a governmental 457b plan as well, (with both traditional and Roth options). Will be retiring from Texas to Puerto Rico, as the majority of my in-laws live there, and I have very limited family of my own on the mainland, so might as well make the other half happy, hah. I know once I’ve lived in PR for a year I’ll be considered a PR resident with regards to taxation. My issue is understanding whether once that time has come, if my income will be subject to US Fed taxes, or will it be subject to PR taxes. I ‘think’ that I’ll pay US Fed taxes, and then file my PR taxes showing I’ve paid the Feds, so I won’t actually owe any island taxes. This is because my pension is based from work in Texas, and my 457b is also from my same employer in Texas. Does this sound right?
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Aug 17, 2018 00:17
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Epi Lepi posted:I've got another preparation question, I have a client who received a K-1 after the return was filed. The K-1 included schedules for about 2 dozen states. I am amending his federal and home state returns but we never filed returns for the other states since we had no reason to. Do I send in "amended" versions of the other states or just initial returns? I would figure that I would have to do just regular returns but my software (CCH Proystems) is throwing a fit at generating the other states unless I mark them amended. Don't submit an amendment unless there's an original there, or it'll cause issues. If nothing's been filed before, you need a regular return. You may just have to get the numbers from the "amended" returns your software generates and copy them over to the correct forms and paper file if the software won't cooperate (guess how *I* had to discover this solution!  ).Madbullogna posted:I’m working on my yearly review of retirement accounts, and part of that of course involves potential future tax implications. I’d appreciate any feedback from those who may have some knowledge of taxes in Puerto Rico. Can't help with Puerto Rico taxes unfortunately, but normally retirement income counts for where you are when you receive it for states at least. Just because your pension is based on work done in Texas does NOT mean it is Texas income, it's where you resided when you receive it. This may be different as far as the rules for Puerto Rico vs. mainland US income goes, so don't take that as gospel truth in your case. You can check some of the links here, here, and here for a few details on PR taxes, looks like you need Form 8898 for the year you make the swap in residency for one thing, but again I honestly can't tell you much about Puerto Rico taxes in general, Northeast US here so don't run into it.
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Aug 18, 2018 00:42
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So, after some searching, I'm still not 100% sure what I should be doing here: I'm a US citizen grad student who just got a two-year research fellowship (yay!). It pays for my stipend (100%), tuition (with matching funds from my uni), and also covers a small amount of research and travel expenses. It officially started August 1, and my first pay was 8/15. My department is not withholding and my department accountant says that the stipend isn't taxable, but my understanding from searching this thread is that at least the stipend portion of the fellowship is taxable as income at both the federal and state level. However, I'm getting conflicting info, so can someone confirm either way?
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Aug 19, 2018 17:36
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farfegnougat posted:So, after some searching, I'm still not 100% sure what I should be doing here: As someone who was in the same situation for several years, we were informed by the university that stipends are taxable (but not tuition assistance), but aren’t subject to withholding because they’re not considered “earned income.” Submit quarterly estimated tax payments.
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Aug 20, 2018 13:24
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farfegnougat posted:my department accountant says that the stipend isn't taxable, This happened to me too. H&R told me not to file. They are wrong https://www.irs.gov/taxtopics/tc421
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Aug 20, 2018 19:52
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MadDogMike posted:Don't submit an amendment unless there's an original there, or it'll cause issues. If nothing's been filed before, you need a regular return. You may just have to get the numbers from the "amended" returns your software generates and copy them over to the correct forms and paper file if the software won't cooperate (guess how *I* had to discover this solution! Copy the client file over in your software, put in the correct numbers, and uncheck the "amended" box. You'll need to "mix and match" the returns around, so be careful in assembly, but it will save you the hassle of doing it by hand. I'd suggest paper mailing the returns, so your admin staff doesn't accidentally try to e-file something and get processing all screwed up.
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Aug 21, 2018 17:03
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Epitope posted:This happened to me too. H&R told me not to file. They are wrong Gotcha. Weird how uni accountants seem universally adamant about this. I have a call out to a tax accountant to clarify what and how to file on my own, especially as the uni won't produce a W-2 for this.
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Aug 21, 2018 19:06
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So somewhat strange tax situation regarding a paid relocation: Last November, I was relocated from one duty station to another within the same non-income tax state( #1). As part of this move, I got a relocation package worth about $4,500 when it was all said and done. I submitted the paperwork in January, and received the money in early February. In between the time I submitted the paperwork and the time I received the money, I interviewed for and accepted another position at another duty station, this one in a state with an income tax (#2). I was transferred in the HR and payroll system the same pay period I got the money for the relocation. Because of this, the relocation money was taxed at the rather high state #2 rate. However, I was in nonpay status for the entire month of March, and did not do any work for the new job nor did I arrive in state #2 until the beginning of April. I was still legally and physically a resident of state #1, but the HR system showed the transfer and me "working" in state #2. So my question is, where does this relocation money "belong"? In the state where the relocation occurred and the expenses were accrued, or in the state where I had transferred (purely on paper) when the paperwork was approved and the money hit my account? Since this, I have since moved again to state #3, which is a non-income tax state (for now). So I'm going to be filing a part year/nonresident return for state #2 if that matters.
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Aug 26, 2018 07:57
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sparkmaster posted:So somewhat strange tax situation regarding a paid relocation: Does duty station mean the military because I think they might have different rules for determining your state of residency. Usually, the money should be taxable to the state you are a resident of when you received the money, which sounds like State #1. You'll have to get the withheld money back when you file the return for state #2, however be prepared to have documentation to substantiate when you moved to state #2 since most states don't like to relinquish money willingly.
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Aug 26, 2018 13:48
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Not military or DoD, just a civilian fed employee who works for an agency where you're expected to move a lot in your career.
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Aug 26, 2018 18:17
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farfegnougat posted:Gotcha. Weird how uni accountants seem universally adamant about this. I have a call out to a tax accountant to clarify what and how to file on my own, especially as the uni won't produce a W-2 for this. Figure out your total expected tax liability (I used an IRS calculator) divide by four, and submit that as payment with your 1040-ES every quarter. Then when you file, there’s a line where you can list estimated payments.
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Aug 27, 2018 01:56
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Are taxes going to be simpler for preparers now that unreimbursed business expenses don’t count for anything? Or harder because clients are going to flip out?
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Aug 27, 2018 14:17
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smackfu posted:Are taxes going to be simpler for preparers now that unreimbursed business expenses don’t count for anything? Or harder because clients are going to flip out? Yes
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Aug 27, 2018 15:11
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smackfu posted:Are taxes going to be simpler for preparers now that unreimbursed business expenses don’t count for anything? Or harder because clients are going to flip out? Ugh. Our state has disconnected from the IRS and will have different rules for deductions. That's going to be fun trying to explain.
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Aug 27, 2018 17:53
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smackfu posted:Are taxes going to be simpler for preparers now that unreimbursed business expenses don’t count for anything? Or harder because clients are going to flip out? :sobs: AbbiTheDog posted:Ugh. Our state has disconnected from the IRS and will have different rules for deductions. That's going to be fun trying to explain. NY is also still allowing unreimbursed expenses but at the same time sent out hundreds of thousands of letters the past two years asking people to prove their itemized deductions before they can see a penny of their refund.
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Aug 28, 2018 05:24
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AbbiTheDog posted:Ugh. Our state has disconnected from the IRS and will have different rules for deductions. That's going to be fun trying to explain. Oh snap? I think we're in the same state, that'll be fun to deal with. I'm mostly concerned with the federal side of things, of course.
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Aug 28, 2018 15:04
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Question about the Retirement Savers Tax Credit: We contributed $2000 to my wife's IRA in February 2018 that counted towards her 2017 contribution. For the sake of the retirement savers credit, though, could we use that to claim the tax credit for our 2018 return? If the answer is"no", does that mean we could claim the credit for 2018 using 2018 contributions made in early 2019?
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Aug 28, 2018 18:19
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Harveygod posted:Question about the Retirement Savers Tax Credit: You can only claim the credit on contributions made during the tax year for which you are claiming them. In this space, your tax year is defined as the calendar year for which your taxes are being paid on. So Jan 1, 2018 - Dec 31 2018 is tax year 2018. To directly answer your question, you can claim the $2,000 you contributed Feb 2018 on your 2018 tax return which you will file in 2019. You cannot claim the 2018 credit using contributions made in 2019. Hoodwinker fucked around with this message at 18:58 on Aug 28, 2018 |
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Aug 28, 2018 18:50
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AbbiTheDog posted:Ugh. Our state has disconnected from the IRS and will have different rules for deductions. That's going to be fun trying to explain. I am curious to hear how most states are handling all these changes.
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Aug 29, 2018 01:08
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Hoodwinker posted:Edit: The correct answer: Thanks! 
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Aug 29, 2018 05:42
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Small White Dragon posted:You're in Oregon, right? Delaware where I work is very straight forward since they have “rolling compliance with IRC” (read: every time the federal code changes by law generally Delaware automatically changes same way since it pretty much uses federal AGI with only a few adjustments for the DE income). Of course I get a bunch of returns from all our neighboring states and even the occasional New York return so I’m not out of the woods on tough learning curves for state returns. I’m also at the stage where I need to learn more income tax returns than just the personal/1040 stuff, and that will probably destroy whatever brain cells the law updates don’t.
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Aug 29, 2018 09:48
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My client's very clearly signed in pen return was rejected for being a photocopy and I don't know wtf.
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Aug 29, 2018 10:04
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