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Ne Cede Malis posted:He's not a CPA, AFAIK, but an MBA loving incredible
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Apr 15, 2024 03:47
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Just went through turbotax to get my estimated amounts due and it's really awful if you need to adjust basis on a 1099-B. They even imported it from my brokerage directly and have no way to bulk fix it, upload the machine readable supplement, or just auto-scrape that data. It's 6 clicks per line, and they do not remember your place, sorting, etc. It seriously added 45m to my use. Amusingly they seemingly still have a way to preview the forms, and if I edited the one it previewed to 1040 it popped right up.  Thanks for e-filing my extension for me, horsefuckers.
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Apr 15, 2024 04:00
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In an effort to not have to owe money for 2024, I'd like to update my W-4 (which I just learned from this thread I should have been doing annually). I was paid the same rate as last year for Jan - end of March but I got a promotion starting April 1 which means my income increased. The tax withholding estimator from the irs uses recent paystub and ytd pay for estimating. Any tips on how much I should increase my withholding?
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Apr 15, 2024 15:32
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AnonymousNarcotics posted:In an effort to not have to owe money for 2024, I'd like to update my W-4 (which I just learned from this thread I should have been doing annually). You should only need to update it any time you have a change in circumstances. If you are single income, all w-2, it should be set it and forget it until you <get married, have kids, sell taxable stocks, get a second income (remember getting married?)> What is different about your situation from pre-raise? Was your w-4 setup correctly? Are dual income?
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Apr 15, 2024 15:38
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My father works part time for a company and apparently they gave him W-2s, which effectively doubled his income and disqualified him for a number of elder assistance programs. They told him to wait for the IRS to acknowledge receiving a corrected W-2 but he owes a significant sum in the meantime. I told him he needs to get the company to send HIM the corrected W-2 ASAP, is that correct? I think his CPA already has filed for an extension.
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Apr 15, 2024 15:50
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H110Hawk posted:You should only need to update it any time you have a change in circumstances. If you are single income, all w-2, it should be set it and forget it until you <get married, have kids, sell taxable stocks, get a second income (remember getting married?)> Nothing has changed circumstance wise since I started at this job in 2018 except for annual raises and occasional promotions. (ie my income has gone up each year, which is expected). However, I somehow end up owing taxes each year which means they're not withholding enough. All I want to figure out is how to not owe taxes next year 😭
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Apr 15, 2024 17:06
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AnonymousNarcotics posted:Nothing has changed circumstance wise since I started at this job in 2018 except for annual raises and occasional promotions. (ie my income has gone up each year, which is expected). You are holding Uncle Sam's money until the last possible minute. Stop being cuck minded. (USER WAS PUT ON PROBATION FOR THIS POST)
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Apr 15, 2024 17:14
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As long as you aren't owing penalties and interest, I would just put that money in a high yield savings account. Easy enough to set up a monthly transfer for (amount owed last year/12).
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Apr 15, 2024 17:19
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If getting a refund makes someone feel a bit better or more secure, and it isn't causing other problems (such as leading them to build up credit card balances), I'm never going to shame, lecture, or call them "cuck minded" for preferring to set their financial life in that way. Seriously, if getting a tax refund is the biggest financial mistake you're making, you're doing brilliantly in life.
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Apr 15, 2024 17:35
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I think it's fine to try to equalize your withholdings, but sometimes people seem not to understand that being under-withheld is not related to your actual tax burden.
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Apr 15, 2024 17:51
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AnonymousNarcotics posted:Nothing has changed circumstance wise since I started at this job in 2018 except for annual raises and occasional promotions. (ie my income has gone up each year, which is expected). Do you have any other sources of income, like interest from a savings account? Because your W-4 isn't going to take those into account.
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Apr 15, 2024 17:55
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Missing Donut posted:If getting a refund makes someone feel a bit better or more secure, and it isn't causing other problems (such as leading them to build up credit card balances), I'm never going to shame, lecture, or call them "cuck minded" for preferring to set their financial life in that way. They should grow the gently caress up. You think think my job is to jangle keys in front of grown peoples' face.
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Apr 15, 2024 17:56
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Quixzlizx posted:Do you have any other sources of income, like interest from a savings account? Because your W-4 isn't going to take those into account. I mean its going to take it into account if you put it on there. Thats what it is for. Something like 5-10% of my AGI comes from non-wage income, so if I dont put the additional income on the W-4, I think I would have to make estimated quarterly payments (or, I'd be close).
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Apr 15, 2024 18:00
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Quixzlizx posted:Do you have any other sources of income, like interest from a savings account? Because your W-4 isn't going to take those into account. No, no other sources of income. I'm not trying to overpay so I get a refund, just trying to avoid the annual huge tax bill. If that's normal, that's fine I just didn't know. The idea of putting the money in a high yield savings account is a good idea. Any advice on which one? Like is this normal? 
AnonymousNarcotics fucked around with this message at 18:19 on Apr 15, 2024 |
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Apr 15, 2024 18:16
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AnonymousNarcotics posted:The idea of putting the money in a high yield savings account is a good idea. Any advice on which one? Raisin is an aggregator that lets you move between high yielding accounts without opening a new bank account every time rates change: https://www.raisin.com/en-us/ But, since you are in NY, a treasury money market such as VUSXX is probably a better option right now since it will be almost entirely state tax exempt. Alternatively, an ETF like SGOV or XHLF.
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Apr 15, 2024 18:24
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Almost all of that is state taxes. You aren't far off on Federal. You should check your state tax withholdings specifically.
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Apr 15, 2024 18:30
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Anyone else in CA have their state tax debited twice? I tried calling the franchise tax board and their automated message eventually just says “we’re too busy sorry”.
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Apr 15, 2024 18:53
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KYOON GRIFFEY JR posted:Almost all of that is state taxes. You aren't far off on Federal. You should check your state tax withholdings specifically. I didn't know there were separate elections. I just checked and for some reason it didn't have me listed as a resident of NYC on the IT-2104 which is probably why this was so off. Just fixed. Thanks
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Apr 15, 2024 18:54
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Suppose you had insurance through the ACA in 2022, and you had your entire premium covered by tax credits due to only working part of the year. 2023 is around the corner, you've started a new job with a higher yearly income, ignore healthcare.gov completely, don't request a tax credit for 2023, and just assume that the insurance will cancel itself due to non-payment. Discover later on that the tax credit was given again for 2023, in spite of never opting in for it. The ACA insurance keeps going throughout the entire year. The ACA insurance is basically the same as the one provided by your work, covers all the same stuff, just has a higher deductible. Same insurance company. Healthcare service costs throughout the year are split between each plan, depending on whether the healthcare provider updated your info when you gave them a new card from work, or they ignored it and stuck with the ACA one anyway. Is there a way to get the unwanted insurance plan cancelled, and the services re-billed to the wanted insurance instead? So, getting a check from the insurance company for money you shouldn't have had to have spent because already met the deductible? Is the only viable path forward to accept those losses, and to also have to pay back 12 months of premium tax credits? Does everything have to be paid back at once? Getting money back would be fantastic, no money back and no money out would be acceptable, but no money back and owing a few thousand would be quite unfortunate.
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Apr 15, 2024 20:18
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KYOON GRIFFEY JR posted:I think it's fine to try to equalize your withholdings, but sometimes people seem not to understand that being under-withheld is not related to your actual tax burden. Oh, absolutely. It's a never-ending struggle, especially with the new W-4. Every year I get a few phone calls from new clients who started their returns in TurboTax, saw the balances due, and decided that they'd like a second opinion from a CPA. Then I get to explain what a refund is, and what it means to owe. Missing Donut fucked around with this message at 22:05 on Apr 15, 2024 |
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Apr 15, 2024 21:59
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Epi Lepi posted:Yes the government will cash your check and just hold it and apply it eventually when the return is filed. Ne Cede Malis posted:I checked our previous year's correspondence and he mentioned filling 250 extensions the same day as he filled mine, so I am just assuming he filed an extension and just forgot to file the actual return before october. I'll email him and ask him to fix this poo poo. As much as I would like to attribute malice to this it's probably just a stupid mistake. BTW, once a return with an amount due finishes processing you may get a CP14 notice that only shows a balance due without reflecting your full payments. If you do get that, log back in to the IRS website and check Balance Online and/or pull a 2022 account transcript to see if there's an actual balance before doing anything else.
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Apr 15, 2024 22:33
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DTaeKim posted:My father works part time for a company and apparently they gave him W-2s, which effectively doubled his income and disqualified him for a number of elder assistance programs. They told him to wait for the IRS to acknowledge receiving a corrected W-2 but he owes a significant sum in the meantime. I told him he needs to get the company to send HIM the corrected W-2 ASAP, is that correct? I think his CPA already has filed for an extension.
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Apr 15, 2024 22:37
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The Tax Slayer posted:depending on whether the healthcare provider updated your info when you gave them a new card from work, or they ignored it and stuck with the ACA one anyway. If you provided them the card prior to services being rendered you can call them and ask them to rebill the correct insurance. This will result in a cascade of things happening assuming they do it. You're going to need to take meticulous notes here to make sure that you get the appropriate refunds. Ask them to check that they updated your insurance card when you gave it to them, note who said that and when. As for getting your old insurance terminated etc you've just learned why you need to specifically deal with things. Call them and explain you received new coverage and did not opt in/renew, and be prepared to provide them with proof of coverage. (Yes even though it's the same company.) If they accept it this might trigger a massive reprocessing of all the claims on that insurance. Be prepared to take those same meticulous notes, and for anyone where they've been paid more than you can comfortably absorb you need to call them and be proactive about it. This isn't what you paid them but what they were paid overall. Time is of the essence many plans have maximum look back periods for redoing claims. This could be 12 months or potentially even shorter. If you forgot to give them the card thats really on you.
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Apr 16, 2024 02:11
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If I make $100k per year and I'm in the 20% effective tax bracket, I pay $20k in federal taxes and $0 in charitable donations for a total of $20k paid out If I donate $10k per year to valid charities, do I make $90k per year for federal tax purposes? That puts me in the 18% effective tax bracket and I pay $16.2k in taxes for a total of $26.2k paid out, but I got to decide where $10k got spent instead of the government? But it cost me $6k to do that. I'm using very wrong/round numbers here Is there a tax bracket/income level where donating to charity has a neglible cost compared to paying federal taxes? Like, if it costs me $600 to donate $10k to a charity that pays out education scholarships, I'd much rather send my money there than to bomb people in another country, but not if it costs me $6000
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Apr 16, 2024 02:26
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Hadlock posted:If I make $100k per year and I'm in the 20% effective tax bracket, I pay $20k in federal taxes and $0 in charitable donations for a total of $20k paid out Yes. quote:Is there a tax bracket/income level where donating to charity has a neglible cost compared to paying federal taxes? No.
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Apr 16, 2024 02:34
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Dony you have to itemize to take charitable deductions? Most don't.
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Apr 16, 2024 02:37
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Hadlock posted:If I make $100k per year and I'm in the 20% effective tax bracket, I pay $20k in federal taxes and $0 in charitable donations for a total of $20k paid out If your line 15 (agi) is $100k your tax is $17,319. I know that isnt your example. This means that you actually made $100k+standard deduction in income. And you don't get a single cent back until you itemize. It always costs you (1-marginal%) to donate money to charity.
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Apr 16, 2024 03:13
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Yeah I wasn't even trying to use anything close to real numbers in my exampleH110Hawk posted:And you don't get a single cent back until you itemize. It always costs you (1-marginal%) to donate money to charity. Yeah I guess I'm trying to figure out, is $marginal% a single digit number or what are they targeting as the cost? Does $marginal% go up or down as your effective tax rate goes up
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Apr 16, 2024 03:22
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Hadlock posted:Yeah I wasn't even trying to use anything close to real numbers in my example 100% minus your marginal tax rate. So if it's 20% it costs you $80 to donate $100 to charity. It costs you 100% for every dollar you donate between your pre-donation itemized deduction amount and the standard deduction total. For example: your itemized deduction is $10k. You donate $3000 to charity. You get back $0 because it's below the standard deduction of $13,850 for a single filer.
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Apr 16, 2024 03:28
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Hey friendly goons, now that everyone has filed their taxes, tell me how the NIIT works. I'm trying to figure out if I need to go fix three of the last four years, if I should try popular filing software to see if it automatically pops up there, forget it until they come asking for the money (because how would I compute the penalties anyway), or visit an accountant. So if magi is 202,000 (filing singly) and 1000 is interest from a savings account, you get to file the NIIT form and schedule 2 and pay an additional 3.8% on that 1000? (And there's the bit about minimum of gains versus amount over 200k) I have easy peasy taxes, some rsu years that put me above 200k, some capital gains years (but not this year), but I feel like I've flubbed something that isn't mentioned in the capgains instructions, the amt instructions, sched1, etc.
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Apr 16, 2024 04:15
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PhantomOfTheCopier posted:So if magi is 202,000 (filing singly) and 1000 is interest from a savings account, you get to file the NIIT form and schedule 2 and pay an additional 3.8% on that 1000? (And there's the bit about minimum of gains versus amount over 200k) That's the idea, yes. If you're over 200K in wage income (RSUs are wage income), you will also need form 8959 - Additional Medicare Tax.
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Apr 16, 2024 15:44
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SlapActionJackson posted:That's the idea, yes. If you're over 200K in wage income (RSUs are wage income), you will also need form 8959 - Additional Medicare Tax.
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Apr 19, 2024 05:15
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Hadlock posted:Is there a tax bracket/income level where donating to charity has a neglible cost compared to paying federal taxes? Like, if it costs me $600 to donate $10k to a charity that pays out education scholarships, I'd much rather send my money there than to bomb people in another country, but not if it costs me $6000 You personally likely wouldn’t come out ahead, but you would pay less taxes and the charity would gain the full value.
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Apr 19, 2024 15:27
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So if I'm donating land to be included in a national park or something, got it. I've been wondering what to do with the northern tip of the grand canyon
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Apr 19, 2024 17:45
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Hadlock posted:So if I'm donating land to be included in a national park or something, got it. I've been wondering what to do with the northern tip of the grand canyon Same concept applies to similar intangibles assets such as appreciated stocks/securities. Again you wouldnt come out ahead. You are better off looking to see if your state has an attractive program. Pennsylvania, for example, has a educational improvement tax credit that provides taxpayers with a 90 cent tax credit on the dollar.
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Apr 19, 2024 19:15
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Admiral101 posted:You are better off looking to see if your state has an attractive program. Pennsylvania, for example, has a educational improvement tax credit that provides taxpayers with a 90 cent tax credit on the dollar. That's pretty reasonable, anyone from California know if there's something similar? If I'm reading that correctly I'd get $900 in state tax refund if I gave out a $1000 scholarship? Or to put it another way, I could give out a $10,000 scholarship in PA, for what it would cost me to give out a $1000 scholarship in CA
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Apr 19, 2024 19:59
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Admiral101 posted:Same concept applies to similar intangibles assets such as appreciated stocks/securities. Again you wouldnt come out ahead. Huh, that seems like it actually could reduce someone's tax by more than their donation. Is this a maneuver around the SALT cap?
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Apr 19, 2024 21:42
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Epitope posted:Huh, that seems like it actually could reduce someone's tax by more than their donation. Is this a maneuver around the SALT cap? Pre-dates the SALT cap. And yes, you could actually make a profit on the donation in the past (used to be able to take a charitable deduction on the full amount - under current rules the charitable deduction now has to be reduced by the amount of tax credit received).
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Apr 20, 2024 02:46
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So this thing where people go with their whole family down to costa rica as part of their church, spend 2 days building homes for habitat for humanity, and then 9 days doing zip lines, swimming with dolphins, surfing lessons beach side; is this just one giant tax dodge to get to write off your family vacation as a donation to a church
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Apr 22, 2024 00:22
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No
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Apr 22, 2024 01:40
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