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School of How posted:I don't have health insurance. But I don't live in California either. How do I owe money to a state I don't even live in? Well, why did you file a California return to begin with? That would help illustrate the situation.
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Jun 1, 2022 21:26
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School of How posted:I don't have health insurance. But I don't live in California either. How do I owe money to a state I don't even live in? Looks like you needed to claim exemption E https://www.ftb.ca.gov/forms/2020/2020-3853-instructions.pdf School of How posted:The reason why my form says my penalty is $0 is because Turbo Tax asks me if I can "afford" health insurance, and I always answer "No". That has always exempted me from all health insurance penalties before. Haha, you're a riot dude
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Jun 1, 2022 21:28
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Missing Donut posted:If you electronically filed the original return, electronically file the amendment as well. If the option exists, it is absolutely worth doing. Thank you, I was hoping to e-file the 1040X but I might be stymied. I always use the 'Free Fillable Forms' site because we make too much to take advantage of the free programs, and I refuse to pay a cent to tax prep companies when I'm more than capable of doing my own taxes (the mixup this year was a fluke!) Free Fillable Forms does not support 1040X, and it looks like because I didn't use tax prep software for the initial file, I can't just file an amendment without having filed with their service in the first place. Are there any e-file services that let you just fill out forms without going through wizards and junk? I'll pay $20 if it means I don't have to file on paper. I just need that 1040X.
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Jun 1, 2022 23:14
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Epitope posted:Haha, you're a riot dude "I love to be audited" I say as I slowly turn into a corncob
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Jun 1, 2022 23:26
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Wait I just say I can’t afford to pay taxes and then I don’t have too? Thread why is this not in the title?
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Jun 1, 2022 23:49
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Raere posted:Thank you, I was hoping to e-file the 1040X but I might be stymied. I always use the 'Free Fillable Forms' site because we make too much to take advantage of the free programs, and I refuse to pay a cent to tax prep companies when I'm more than capable of doing my own taxes (the mixup this year was a fluke!) Free Fillable Forms does not support 1040X, and it looks like because I didn't use tax prep software for the initial file, I can't just file an amendment without having filed with their service in the first place. Free File Fillable Forms is an electronic filing service so the IRS should allow you to electronically file the amendment. You might be running into software-imposed limitations, though. I don't have good recommendations about the consumer tax software market, but hopefully someone else can chime in. Consumer stuff usually has wizards to reduce the possibility of errors, and software for tax professionals works more like what you are looking for (except for the price). From a cursory lookup on Clark Howard's website, Cash App Taxes (the former Credit Karma Tax) or FreeTaxUSA look like they might be options?
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Jun 2, 2022 01:10
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Covok posted:Well, why did you file a California return to begin with? That would help illustrate the situation. The company I remotely work for is based in California. By default my paycheck has CA state taxes withheld. I have since removed that withholding, but for part of 2021, some of my paychecks had CA taxes withheld. Epitope posted:Haha, you're a riot dude Why is that a riot? TurboTax asks me every year if I don't have insurance because I "can't afford it", and I have always said "yes", and it has always gotten me out of paying any kind of penalty. I think it's a loophole in the tax code. I have been doing this every year since like 2012 and I have never been audited.
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Jun 2, 2022 03:20
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Whether CA will agree on whether you “can’t afford” health insurance depends on your income, not your opinion. It’s not a loophole you’ve just been lucky. Or had truly low enough income to get whatever credit they must be giving you.
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Jun 2, 2022 03:52
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School of How posted:Why is that a riot? TurboTax asks me every year if I don't have insurance because I "can't afford it", and I have always said "yes", and it has always gotten me out of paying any kind of penalty. I think it's a loophole in the tax code. This is not a loophole anymore than lying and saying "I have kids" or "I gave $10k to charity" is a loophole.
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Jun 2, 2022 04:05
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Since to withhold 8k for state tax you had to have been making north of 100k, I'm not seeing any way for a good faith argument to not being able to afford it. Why on Earth would you not have health insurance in the US if you can afford it anyway?
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Jun 2, 2022 04:09
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KillHour posted:This is not a loophole anymore than lying and saying "I have kids" or "I gave $10k to charity" is a loophole. Funny you say that. I had a guy come in today saying my boss missed something on his return and needed it amended. He showed me some sweepstake things for a charity calls Ann's something and said he gave 10,000 in charity that needed to be claimed. His proof was a picture of a stack of envelopes which he claimed were all him giving money to charity. I told him to go to the bank and get me a check image for all these alleged charitable contributions because if you amend a return to include that much charity you're gonna get audited. Also, I am 99% sure my boss putting down $865 was the accurate number given the amount of checks he claimed to give and how much he said he sent per check.
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Jun 2, 2022 04:13
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KillHour posted:This is not a loophole anymore than lying and saying "I have kids" or "I gave $10k to charity" is a loophole. Turbo Tax just asks "Can you afford it?", and they give no formal definition of what "afford" means exactly. What am I supposed to do? How should I define "afford" in that circumstance? I assume everyone who doesn't have insurance answers that question with "no". I've been doing this for years and it has never been a problem. If they provided me with some formal definition for what "afford" means, maybe my answer will change. Its possible to objectively prove someone didn't donate to charity. How is it possible to objectively prove someone lied about not being able to "afford" something, when "afford" has not been in any way shape or form defined?
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Jun 2, 2022 04:25
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School of How posted:Turbo Tax just asks "Can you afford it?", and they give no formal definition of what "afford" means exactly. What am I supposed to do? Did you try to look for an answer? An exact amount appears to be the very first hit for me when I just google searched for "California tax insurance cannot afford". But I'm not in California and know nothing about their taxes, so maybe that's the wrong thing. Ignorance of the law and TurboTax prompting you with a question isn't really an excuse that will fly with the state tax folks, I suspect. incogneato fucked around with this message at 15:11 on Jun 2, 2022 |
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Jun 2, 2022 04:42
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School of How posted:Turbo Tax just asks "Can you afford it?", and they give no formal definition of what "afford" means exactly. What am I supposed to do? How should I define "afford" in that circumstance? I assume everyone who doesn't have insurance answers that question with "no". Good news - "Afford" is defined in the handy document that Epitope linked on this very page, that the state of California expects you to read. quote:Coverage considered unaffordable — The required contribution is more than 8.24% of your household income. Is the cheapest qualifying health insurance plan more than 8.24% of your household income? If so, you can claim the "I can't afford it" exemption. If not, go pound sand. "TurboTax did not spoon feed me the answer" is not an excuse. TurboTax does not define CA tax law. The good news, as Epitope pointed out, is that there is an exemption you qualify for (out of state resident) that you did not properly claim - so now you have to amend your return to claim that. Covok posted:Funny you say that. I had a guy come in today saying my boss missed something on his return and needed it amended. He showed me some sweepstake things for a charity calls Ann's something and said he gave 10,000 in charity that needed to be claimed. His proof was a picture of a stack of envelopes which he claimed were all him giving money to charity. I told him to go to the bank and get me a check image for all these alleged charitable contributions because if you amend a return to include that much charity you're gonna get audited. All of my friends are just out of frame, donating to charity too. KillHour fucked around with this message at 04:57 on Jun 2, 2022 |
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Jun 2, 2022 04:51
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School of How posted:The company I remotely work for is based in California. By default my paycheck has CA state taxes withheld. I have since removed that withholding, but for part of 2021, some of my paychecks had CA taxes withheld. Your company is doing payroll very wrong and you should tell them they need to stop it. What they are doing is also illegal in many states. They need a legal entity in each state in which they have an employee and need to withhold state and local payroll taxes properly.
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Jun 2, 2022 14:56
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Motronic posted:Your company is doing payroll very wrong and you should tell them they need to stop it. What they are doing is also illegal in many states. They need a legal entity in each state in which they have an employee and need to withhold state and local payroll taxes properly. That's not the case anymore with the rise of remote work. NYS will tax you if you work remotely for an NYS based company regardless of where you live. You need to file a non-resident income tax return for NYS and then hope you can get a credit for taxes paid to NY from whatever state you actually live in.
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Jun 2, 2022 17:40
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Motronic posted:They need a legal entity in each state in which they have an employee and need to withhold state and local payroll taxes properly. LOL, this wasn't true even in the late '00s. Paying the state and local taxes was my problem, not my out-of-state employer's. tagesschau fucked around with this message at 17:54 on Jun 2, 2022 |
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Jun 2, 2022 17:51
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tagesschau posted:LOL, this wasn't true even in the late '00s. Paying the state and local taxes was my problem, not my out-of-state employer's. Depends on the state. Once you have nexus in the state they generally want your company to file a state tax return. I don't know it state to state but Virginia definitely cares once you have a full time employee there. They will go back in time to solve the problem through fines and taxes due.
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Jun 2, 2022 18:41
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Welcome to US business tax. Where 50 different small countries all have their own set of laws and if you go a couple miles too far into their territory you now have to worry about laws you never heard of in your entire life. For example, I work in NY. I have a ton of clients moving to NJ. If they have a corporation based in NY, I need to get them a letter of good standing from NY (like pulling teeth), register them as a foreign corporation in NJ, have them pay a few fees and register for local taxes, and hope that they don't have any issues with NY that would muck it up because they always move before telling me they're doing this. I was lucky last year yhat someone actually called in advance and asked first.
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Jun 2, 2022 19:30
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H110Hawk posted:Depends on the state. Once you have nexus in the state they generally want your company to file a state tax return. I don't know it state to state but Virginia definitely cares once you have a full time employee there. They will go back in time to solve the problem through fines and taxes due. 98% of my work was done in the employer's state, not the state where I was a tax resident. Work from home was technically possible but only used in emergencies (or tests of the emergency protocol). The employer only deducted its own state's taxes. I mailed a check to the other state every time I got paid. This was a large employer, too, so it's unlikely that they failed to withhold anything required. tagesschau fucked around with this message at 22:09 on Jun 2, 2022 |
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Jun 2, 2022 22:06
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tagesschau posted:LOL, this wasn't true even in the late '00s. Paying the state and local taxes was my problem, not my out-of-state employer's. As others said, you're supposed to have a nexus and file a corporate return etc if you have an employee in that state, even a remote one. This is something congress could fix since it's within their wheelhouse, but...
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Jun 2, 2022 22:51
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tagesschau posted:98% of my work was done in the employer's state, not the state where I was a tax resident. Work from home was technically possible but only used in emergencies (or tests of the emergency protocol). The employer only deducted its own state's taxes. I mailed a check to the other state every time I got paid. Yeah that's the nuance - if you just happen to live across a border but your actual job responsibilities are physically in the state of withholding it changes things.
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Jun 3, 2022 00:24
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TIL The thought of the landlord paying 300% is my kink.
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Jun 3, 2022 00:26
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Residency Evil posted:TIL The thought of the landlord paying 300% is my kink. Same except I'm the landlord
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Jun 3, 2022 00:27
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gently caress wrong thread.
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Jun 3, 2022 01:24
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Definitely not the bitcoin thread
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Jun 3, 2022 21:53
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Epi Lepi posted:That's not the case anymore with the rise of remote work. NYS will tax you if you work remotely for an NYS based company regardless of where you live. You need to file a non-resident income tax return for NYS and then hope you can get a credit for taxes paid to NY from whatever state you actually live in. Aren't there some federal lawsuits percolating through the courts between some of the states about taxing someone for working remotely in another state thanks to pandemic issues? Does seem a little screwball that somebody who never sets foot in a state owes them money; by that logic you'd owe state tax both in the state you order something from and your own state. In any event I'm a little dubious of some of New York's ideas about tax law; one of my personal irritations is how they demand the company include the entirety of federal wages in the W-2 state income box even if you moved halfway through the year and the company adjusted state withholding accordingly, so I have to manually calculate the correct state wages every time. Can't help but think the real idea is to sucker people who just go by the W-2 into paying extra tax to New York if they moved in/out. latinotwink1997 posted:Definitely not the bitcoin thread Though hilariously close enough to fool me for a second whether this was an actual post for here. I suppose given the number of newbie landlords who've brought in TurboTax returns where they left depreciation or other logical expenses off the return, paying tons extra for renting is kind of a tax thing too. Though for kink needs you're probably better off saving the taxes and putting the money directly into the kink by hiring someone to satisfy it, not like horny generates a write-off. Though now my brain is wondering just what expenses tax preparers have to deal with in places like Nevada where prostitution is legal (what is the depreciation rate on sex toys?).
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Jun 5, 2022 19:48
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MadDogMike posted:by that logic you'd owe state tax both in the state you order something from and your own state. In any event I'm a little dubious of some of New York's ideas about tax law; one of my personal irritations is how they demand the company include the entirety of federal wages in the W-2 state income box even if you moved halfway through the year and the company adjusted state withholding accordingly, so I have to manually calculate the correct state wages every time. Can't help but think the real idea is to sucker people who just go by the W-2 into paying extra tax to New York if they moved in/out. They wouldn’t owe sales/use tax to New York because it’s a tax on the privilege of either buying or using something within their state. On the other hand, market-based sourcing for income tax like New York will only become more annoying in the future. My assumption is that the W-2 apportionment is partly justified to pick up portions of bonuses, etc, that would surely be ignored by most payroll software, but I’m sure there are enough people who would just pay New York a large sum of money because TurboTax told them to. quote:(what is the depreciation rate on sex toys?). 5 years; distributive trades and services (class 57.0). Thank you UltraTax for permanently branding that into my head. Maybe I lack imagination, but I’d think that the de minimis safe harbor should take care of most sex toys used in the trade.
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Jun 5, 2022 21:42
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Missing Donut posted:They wouldn’t owe sales/use tax to New York because it’s a tax on the privilege of either buying or using something within their state. On the other hand, market-based sourcing for income tax like New York will only become more annoying in the future. My point is if you use anything beyond physical presence/domicile of the individual to determine being subject to tax the results get very absurd quickly. Just determining which the “home state” for the business gets crazy with franchises and branch offices; would a McDonald’s employee owe taxes in EVERY state since McDonalds has a presence there, or to whatever the state they formed in even if you’re all the way across the country from it? (Delaware would get stupid rich under the latter rule…). The problem gets even worse if you apply the same principle to nation-level taxation; people who work for Siemens or Deutsche Bank in the US owe German income tax? Drawing the line just gets too drat arbitrary if you don’t rely on physical presence, and the states being mad they lose tax from commuting workers because of WFH does not justify demanding tax anyway under very subjective rules (hell, current “rules” around here are “work from home doesn’t count if it’s for the convenience of the employer”; how do you argue that crap if there’s a disagreement?! What constitutes “convenience” vs need?!). quote:My assumption is that the W-2 apportionment is partly justified to pick up portions of bonuses, etc, that would surely be ignored by most payroll software, but I’m sure there are enough people who would just pay New York a large sum of money because TurboTax told them to. Pretty sure most software is or can be made capable of including bonuses in state income if it handles it for federal W-2 income already. And if they just need the federal tax information, they could just do what Delaware and I think a few other states do and require a copy of the federal return be filed with the state return for reference. Or just store the federal W-2 information if they actually need it instead of forcing a misreport of state taxable income in that box. quote:5 years; distributive trades and services (class 57.0). Thank you UltraTax for permanently branding that into my head. Christ, now I’m trying to imagine the sex toy that’s got a basis above the de minimis threshold. Hand crafted? Bejeweled? Computerized (enough to run Doom on it)? Though I suppose you aren’t technically required to use de minimis instead of depreciation, so it could come up anyway if depreciation gives better results tax-wise. I just hope to God sale of business property isn’t a common thing, unless I’m underestimating the used sex toy market…
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Jun 8, 2022 17:21
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There are $1000+ sex toys, and if you are fitting out a studio or whatever with sex furniture or sex dolls a single invoice could easily go beyond $2500.
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Jun 8, 2022 17:37
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Stuff like sex swings and whatever those ridable dildos are called can definitely be 4 figures. Sex dolls can easily be in the 5s once you start kitting them out.
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Jun 8, 2022 18:40
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MadDogMike posted:My point is if you use anything beyond physical presence/domicile of the individual to determine being subject to tax the results get very absurd quickly. Sure, I guess, but it doesn’t mean that a tax on income having one set of rules means that a tax on sales or uses of (some) products and services necessitates the same set of rules. It would be nice for a simpler system but it’s not happening. quote:Pretty sure most software is or can be made capable of including bonuses in state income if it handles it for federal W-2 income already. And if they just need the federal tax information, they could just do what Delaware and I think a few other states do and require a copy of the federal return be filed with the state return for reference. Or just store the federal W-2 information if they actually need it instead of forcing a misreport of state taxable income in that box. Just because payroll systems are technically capable of proration of nonresident wages does not mean that the systems produce correct W-2s. “Every pay period is an island” in a lot of systems (like ADP and Intuit) and it definitely leads to wrong W-2s. One situation I’m thinking of is a high-up employee with base pay of $300k who gets a year-end bonus of $200k and they work 20 days out of 200 in a state. Most payroll departments that would attempt to comply with this would end up with $30k in wages for the state instead of $50k. A similar issue that I’ve had is on professional athletes paid on a W-2 and the state apportionment was never correct. Good news, we’ll have a similar issue starting this year with 1099-Ks — just report it all and let the taxpayer sort it out! quote:Computerized (enough to run Doom on it)? If it hasn’t been already, you should definitely patent that idea.
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Jun 8, 2022 19:48
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H110Hawk posted:There are $1000+ sex toys, and if you are fitting out a studio or whatever with sex furniture or sex dolls a single invoice could easily go beyond $2500. KillHour posted:Stuff like sex swings and whatever those ridable dildos are called can definitely be 4 figures. Sex dolls can easily be in the 5s once you start kitting them out. Y'know, I KNEW somebody on Something Awful would have the actual numbers on this, but I'm still impressed just how fast we got the answer really. Missing Donut posted:Just because payroll systems are technically capable of proration of nonresident wages does not mean that the systems produce correct W-2s. “Every pay period is an island” in a lot of systems (like ADP and Intuit) and it definitely leads to wrong W-2s. I'm entirely used to employers screwing up tax forms already, I just find it extra irritating when a state de facto demands they do so when the only logic I can think of for doing that which makes sense is "make them pay us more than they should". Ah well, maybe I should be cynical and just be grateful for the extra job security. quote:If it hasn’t been already, you should definitely patent that idea. Oh, trust me, they've been doing some kind of computerized control for sex toys for a while (apparently for dom/sub type stuff from what I gather). We've even gotten into people infecting them with ransomware and literally having the victim by their balls; now there's a future tech dystopic horror I don't recall actually being predicted in cyberpunk before. As for patenting, boy those must be fun applications to have come in.
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Jun 11, 2022 02:04
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Are there any tax implications for starting the Required Minimum Distribution for an IRA if you are over 72 and wanting to withdraw the full amount? I understand that it will be taxed as regular income and could put the withdrawer in a higher bracket but besides that is there a taxable difference between taking the minimum amount vs the full amount of the account?
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Jun 12, 2022 06:30
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Busy Bee posted:Are there any tax implications for starting the Required Minimum Distribution for an IRA if you are over 72 and wanting to withdraw the full amount? I understand that it will be taxed as regular income and could put the withdrawer in a higher bracket but besides that is there a taxable difference between taking the minimum amount vs the full amount of the account? Nope, the rules require at least some withdraw but there's no limit on the max you pull, so long as you treat it as taxable income and withhold appropriately. Honestly the rules are there mainly to discourage people accumulating tons of money tax-free then passing it on to their heirs rather than using it themselves, so emptying the account earlier than your max predicted life span works even better for that purpose really.
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Jun 12, 2022 18:51
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Just got a thing in the mail from the IRS stating I owe approximately $1600. I have no idea how this is even possible unless I absolutely hosed up my taxes, I only make like 37k a year. Is there somewhere I can track down where this payment is from? On the form it just says like “payments & charges” and it does not elaborate. Unless I somehow drastically hosed up my taxes this seems impossible.
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Jun 14, 2022 00:24
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Thumbtacks posted:Just got a thing in the mail from the IRS stating I owe approximately $1600. I have no idea how this is even possible unless I absolutely hosed up my taxes, I only make like 37k a year. Is there somewhere I can track down where this payment is from? On the form it just says like “payments & charges” and it does not elaborate. Unless I somehow drastically hosed up my taxes this seems impossible.
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Jun 14, 2022 03:17
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Says CP14, which is just “unpaid taxes” apparently, but nothing about my financial situation this year has changed compared to last year except that I moved to Oregon from California, so I’m guessing I somehow hosed up when I filed my poo poo. I’ll call them tomorrow
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Jun 14, 2022 05:22
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Same question, except form CP2000 and $45,000. I'm pretty sure it's income reported as both W2 and 1099B. I'm working on finding a CPA or tax specialist now to straighten things out. Is there any way to pick a good local tax person besides asking if they have direct experience with this specific problem?
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Jun 14, 2022 06:21
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Thumbtacks posted:Says CP14, which is just “unpaid taxes” apparently, but nothing about my financial situation this year has changed compared to last year except that I moved to Oregon from California, so I’m guessing I somehow hosed up when I filed my poo poo. I’ll call them tomorrow Wait times on the phone right now are pretty long (as in you might be on hold for 2+ hours before getting a "courtesy disconnect" due to high call volume), so a faster way to check on this would be to go to the Pay tab on IRS.GOV and use the "Go to your account" option. If you're able to set up an account there you can see if there's an actual balance or not. If that doesn't work you can still call. Aquila posted:Same question, except form CP2000 and $45,000. I'm pretty sure it's income reported as both W2 and 1099B. I'm working on finding a CPA or tax specialist now to straighten things out. Is there any way to pick a good local tax person besides asking if they have direct experience with this specific problem? Peyote Panda fucked around with this message at 08:18 on Jun 14, 2022 |
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Jun 14, 2022 08:13
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