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entris posted:So, my study buddy and I were reviewing "advanced" partnership tax topics for our exam in two weeks. We both noted that all of our instructional materials use examples that are basically pulled from the regs, and we both thought it would be cool if there were other problems, with answers, that we could study from. OTJ
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Apr 22, 2011 21:25
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Great thread. I owe the IRS 2K, they just intercepted by State Tax Refund this year for the previously owed tax, approx $400 from my state refund. I've been super busy, unable to even call them - is it too late? Are they after my car? Are they going to drain my bank account? Kind of in a semi-panic right now. I owe 2k this year, which is fine, but this other 2k that they're trying to collect is from 2008 (a client didnt send me a copy of my 1099, and I got hit a 2 years later) I know I should just call - is that the best course of action? Are they gonna repo my car TOMORROW? (I'm being semi-sarcastic) I don't know how much 2k is in the grand scheme of the IRS. (well, it's now 1,600 because of my state refund)
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Apr 27, 2011 19:50
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Call them today and make arrangements to take care of what is due. It won't go away if you don't contact them, they will just step up enforcement until you either contact them or everything due is forcibly collected. They are required to give you notice before levying a bank account. This typically happens as a certified letter. If you haven't received a certified letter from the IRS then you probably aren't about to be levied.
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Apr 27, 2011 19:56
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What do they do when they levy a bank account?
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Apr 27, 2011 20:03
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I got a certified letter, never picked it up. In between moving, and working at a startup. Ugh, I bet it was from the IRS. I wonder if it was just that they were going to intercept my tax refund. Guess I'll call them tomorrow. Can't do it today.
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Apr 27, 2011 20:06
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So, my company is giving out RSUs (so basically stock) as compensation bonuses. And in the schwab website (through which they process it) there is an option of how to handle the stock awards, and the default option is "sell for taxes". I noticed that my first award of 25 stocks become just 14, as 11 of them were sold for taxes. Is there a better way for me to do this? Like would keeping the stocks for longer result in better tax rates somehow or is this something that I just have to pay no matter what just like my salary?
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Apr 27, 2011 21:35
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Pinkied_Brain posted:So, my company is giving out RSUs (so basically stock) as compensation bonuses. And in the schwab website (through which they process it) there is an option of how to handle the stock awards, and the default option is "sell for taxes". You will always pay tax on the value of the shares when they vest, and your company is required to withhold taxes from that amount. Whether you choose to pay the taxes on the vesting out of your normal paycheck or have them sell to cover is your choice. There is potentially a tax benefit to holding the shares for long term capital gains treatment (assuming the shares will appreciate), depending on your overall tax situation.
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Apr 27, 2011 21:47
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Pinkied_Brain posted:So, my company is giving out RSUs (so basically stock) as compensation bonuses. And in the schwab website (through which they process it) there is an option of how to handle the stock awards, and the default option is "sell for taxes". Furu got this, but basically what it comes down to now is say the taxes were $100: would you rather have $100 or $100 worth of shares (if you think the shares will gain value, you want the shares. If you think they will lose value, you want $100).
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Apr 27, 2011 22:48
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Assuming you can take a $100 hit to your paycheck and still be able to pay your bills.
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Apr 27, 2011 23:02
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Pinkied_Brain posted:So, my company is giving out RSUs (so basically stock) as compensation bonuses. And in the schwab website (through which they process it) there is an option of how to handle the stock awards, and the default option is "sell for taxes". I (and many many others) strongly believe that you should not hold stocks in the company you work for. 100% of your income is already tied to the performance of that company, and tying up even more assets to its performance is extremely risky. So selling them for taxes is good in that it already reduces some of that exposure. I don't know how long you have to hold before you can sell the rest but I always do so ASAP.
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Apr 28, 2011 01:35
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powermac posted:I got a certified letter, never picked it up. In between moving, and working at a startup. Ugh, I bet it was from the IRS. I wonder if it was just that they were going to intercept my tax refund. Well, there's your levy notice. And they would have sent you a ton of notices prior to the certified one notifying you of their intent to levy.
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Apr 28, 2011 18:04
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Certified letter from the IRS? Nothing important *throws in trash*
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Apr 28, 2011 23:08
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Cyrezar posted:Certified letter from the IRS? Nothing important *throws in trash* Well to be fair he didn't throw it away, he just never claimed it from the PO.
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Apr 28, 2011 23:16
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Chin Strap posted:I (and many many others) strongly believe that you should not hold stocks in the company you work for. 100% of your income is already tied to the performance of that company, and tying up even more assets to its performance is extremely risky. So selling them for taxes is good in that it already reduces some of that exposure. I don't know how long you have to hold before you can sell the rest but I always do so ASAP. The general way to look at it is this. If, instead of the stock, you got cash from the company, what would you use that money for? If the answer is anything other than "buy company stock" you should sell.
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Apr 29, 2011 07:32
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So somehow I guess I misread my 1098-T form and thought it was for 2010 when it was actually for 2009 (I don't know how, as I very specifically remembered it being for 2010 but I can't seem to find the file and it's not on the website, so I must have been hallucinating or something), but anyway, I'm figuring I'm going to have to amend my 2010 return and give back the credit I got (around $2000, my original tax refund was going to be $2). How bad are the penalties on this going to be?
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May 3, 2011 06:42
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I practice law as a sole practicioner, and also do legal work as an independent contractor, so I have been paying quarterly estimated taxes. However, I've decided to hang up the shingle and go back into a small firm, where I will be a salary employee again. However, what is the procedure for no longer paying estimated taxes? My next payments for both federal and CA are due on June 15. However, I am planning on starting employment at the new firm in the beginning of June. I assume I still make this June payment, then no longer worry about making any other estimated payments (assuming I don't have any external income from wrapping up some work as a sole practicioner that doesn't get transferred into my job at the firm). Do I need to file anything in addition, or do they just assume if I stop making estimated paymetns that it is legit? Thanks in advance.
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May 3, 2011 19:34
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Insurrectum posted:So somehow I guess I misread my 1098-T form and thought it was for 2010 when it was actually for 2009 (I don't know how, as I very specifically remembered it being for 2010 but I can't seem to find the file and it's not on the website, so I must have been hallucinating or something), but anyway, I'm figuring I'm going to have to amend my 2010 return and give back the credit I got (around $2000, my original tax refund was going to be $2). Late payment penalties are .5% (.005) per month and interest currently runs at 4% per year.
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May 3, 2011 21:34
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Voodoofly posted:I practice law as a sole practicioner, and also do legal work as an independent contractor, so I have been paying quarterly estimated taxes. Make your 6/15 payment for what you earned from self employment through 5/31, then have taxes withheld from your paycheck going forward. As long as your withholding is sufficient to cover your tax you won't need to make further estimated tax payments.
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May 3, 2011 21:36
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I just got a raise at my job (woo hoo) for $6,000/yr. I work for a car dealership group for three specific dealerships and have taken on one more dealership (which accounts for the raise.) Currently my paycheck comes from one of those three dealerships for my full monthly salary. The new dealership I have taken over will pay me out of their budget, so it breaks down to $500 a month, on a separate check. I have to fill out all new paperwork for this dealership so I can use different deductions and what not. My question is, what is the smartest way to set that all up so I see the most take home money, since It will technically be a completely different company that is paying my salary. Thanks!
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May 3, 2011 21:49
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Bojanglesworth posted:My question is, what is the smartest way to set that all up so I see the most take home money, since It will technically be a completely different company that is paying my salary. Thanks! You will probably want to have the least take home pay. The separate company doesn't affect you at all for tax purposes compared to if your pay rise came out of the same company. The effective marginal tax rate on the final $6,000 of income will be higher than the rest of your pay so have extra withheld. How much you have withheld depends on your total taxable income, filing status, etc.
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May 4, 2011 01:02
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Missing Donut posted:You will probably want to have the least take home pay. The separate company doesn't affect you at all for tax purposes compared to if your pay rise came out of the same company. The effective marginal tax rate on the final $6,000 of income will be higher than the rest of your pay so have extra withheld. How much you have withheld depends on your total taxable income, filing status, etc. OK, my current pay is $36,000 a year, plus the $6,000 raise I just received. I am currently claiming 4 federal and 2 state (Virginia.) I have a part time job making about $5,000 a year. I am married and we have a son who was born in 2010. Help is much appreciated! edit: I'm not sure if it matters but we are a single income household and we do not own our home. Bojanglesworth fucked around with this message at 01:22 on May 4, 2011 |
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May 4, 2011 01:18
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Bojanglesworth posted:OK, my current pay is $36,000 a year, plus the $6,000 raise I just received. I am currently claiming 4 federal and 2 state (Virginia.) I have a part time job making about $5,000 a year. I am married and we have a son who was born in 2010. My back of a cocktail napkin calculation says you need about $1,900 in federal withholdings. I don't know much about Virginia but I imagine it would be a bit less than that. So long as you have that much withheld in the year, it doesn't matter what paycheck it comes from.
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May 4, 2011 03:19
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Friend of mine filled out her check to the Oregon DOR wrong, and ended up shorting them by eleven bucks. Should she go ahead and send a new check, or wait for them to bill her?
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May 4, 2011 21:03
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scribe jones posted:Friend of mine filled out her check to the Oregon DOR wrong, and ended up shorting them by eleven bucks. Should she go ahead and send a new check, or wait for them to bill her? The bill will come pretty quick (within a week or so). Might as well wait, so she can pay all the penalties/interest the first time.
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May 4, 2011 22:05
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Bojanglesworth posted:I just got a raise at my job (woo hoo) for $6,000/yr. I work for a car dealership group for three specific dealerships and have taken on one more dealership (which accounts for the raise.) I ended up going with 3 federal and 2 State on my W2 today when I filled out paperwork. Hopefully this works out well. Also, I technically have three jobs, the third one I have worked at since 2007 and I only make a couple hundred dollars per month (sometimes I will make about $1,000 but 90% of the time I make just a couple hundred,) is it screwing me by having three jobs even if I don't make a lot of money?
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May 4, 2011 22:13
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Bojanglesworth posted:I ended up going with 3 federal and 2 State on my W2 today when I filled out paperwork. Hopefully this works out well. I think if anything you may end up underwithheld and wind up owing come tax time.
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May 4, 2011 22:23
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Bojanglesworth posted:I ended up going with 3 federal and 2 State on my W2 today when I filled out paperwork. Hopefully this works out well. Why did you even bother asking for help, if you won't provide the right information necessary to help you, and then will completely ignore the response that you received?
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May 5, 2011 01:24
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Missing Donut posted:Why did you even bother asking for help, if you won't provide the right information necessary to help you, and then will completely ignore the response that you received? What other information do you want other than what I have already posted: Bojanglesworth posted:OK, my current pay is $36,000 a year, plus the $6,000 raise I just received. I am currently claiming 4 federal and 2 state (Virginia.) I have a part time job making about $5,000 a year. I am married and we have a son who was born in 2010.
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May 5, 2011 01:58
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Bojanglesworth posted:What other information do you want other than what I have already posted: It might be that you mentioned afterwards that you had another job... Bojanglesworth posted:Also, I technically have three jobs, the third one I have worked at since 2007 and I only make a couple hundred dollars per month (sometimes I will make about $1,000 but 90% of the time I make just a couple hundred,) is it screwing me by having three jobs even if I don't make a lot of money?
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May 5, 2011 02:45
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Missing Donut posted:It might be that you mentioned afterwards that you had another job... Sorry, you don't have to be a dick about it though. I do absolutely nothing in this other job, I just get a paycheck so its not really at the front of my mind all the time.
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May 5, 2011 02:48
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Bojanglesworth posted:Sorry, you don't have to be a dick about it though. I do absolutely nothing in this other job, I just get a paycheck so its not really at the front of my mind all the time. 1) That's not really an excuse (but in all honestly, where can I get a job where I do absolutely nothing but get a paycheck?) 2) You missed the other part of my post -- ironically, the part that complained about you completely ignoring the responses that you did get.
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May 5, 2011 03:02
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I applied for the first version of the First Time Home Buyers tax credit on my 2008 return, the one where you have to pay back $500 a year starting this year. However, I later sold this house on 7/23/09 and made approx $132 off of it, after ~10k or so went to the realtor. I realize this is not a lot of money and needed to get out from under the home. Anyway, I put all this information on my 2009 return, on Form 5405 Part IV Repayment of Credit under "Enter the gain on the sale of your main home (as figured after reducing your basis by the amount on line 14 above)" I entered $132. Line 14 is $7500 for the loan amount. From my understanding, this counts as repayment of the loan since my gain is less than the loan amount. After trying to E-File this year, I was not allowed to since the software told me the IRS was expecting repayment of the loan starting this year but I could not enter the sale date of my home since it was in 2009. I emailed the software company explaining the issue and they told me the IRS likely messed up last year and did not record the sale of my home and to mail in my return with a letter explaining the issue and a copy of my 2009 return. I did all this and finally received my tax return in the mail a few days ago, with $500 taken out. So do I actually need to repay this loan? What was the point of putting in repayment on my 2009 return? Wouldn't I get that $132 back if I actually need to repay all $7500? I have all my forms printed out and plan on going down to the local IRS office soon, but they are only open during my core working hours and I am extremely busy at work. Hopefully this will save me a trip.
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May 6, 2011 00:03
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El Asso posted:I applied for the first version of the First Time Home Buyers tax credit on my 2008 return, the one where you have to pay back $500 a year starting this year. However, I later sold this house on 7/23/09 and made approx $132 off of it, after ~10k or so went to the realtor. I realize this is not a lot of money and needed to get out from under the home. If you sold the residence your repayment should be the lesser of $7,500 or the amount of gain realized. From what you describe that means you should only need to repay $132.
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May 6, 2011 00:20
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Are there restrictions on how much/what I can donate to a 501c3 if I'm a board member of that 501c3? I'm thinking about donating my old truck to the non-profit I help run, but a friend thought there may be a law forbidding me to claim it as a deduction. If it matters, the non-profit would be keeping the truck to use, not selling it. To further complicate things, we're not a 501c3 ourselves, but operate under a parent 501c3 as a group exemption. Hillridge fucked around with this message at 02:45 on May 7, 2011 |
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May 7, 2011 02:43
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I am doing my taxes for my first time, generally my parents have been doing it for me, but I am starting to do it. I filed my tax return and I forgot to sign it. It went back to my home for a signature, and after I reviewed my tax return with my parents, my Father told me about Obama's college education tax return. It is pretty much explained here: http://www.investingblog.org/archives/742/obamas-2500-college-education-tax-credit-explained/ I was wondering, if I want to take advantange of it, will I be able to do it via a tax return done on turbo tax? Or will I need to take extra special steps to do it? I didn't really make an income last year, so I won't be needing to file a big tax return, I won't owe any money. My father thinks that I may get $2,000 or so back from the government, but I can't imagine getting a huge paycheck like that in the mail. Can someone explain this? And to pre-empt any of the obvious questions. I did attend a univeristy last year and paid the tuition, it was up in the tens of thousands.
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May 7, 2011 05:13
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Enigma89 posted:I am doing my taxes for my first time, generally my parents have been doing it for me, but I am starting to do it.
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May 7, 2011 23:25
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Mattism posted:You should have received a 1098-T from whatever school you attended that lists your qualified tuition expenses. I'm not at all familiar with Turbo Tax, but I'm sure it will calculate your credit (if any) once you plug in the information from that form. Correct, Turbo Tax will use any information you provide from 1098-Ts to calculate any student credits, etc, you may get. In fact, if you tell it you're a student at any point it will specifically prompt you to enter your 1098T.
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May 9, 2011 03:42
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kaishek posted:Correct, Turbo Tax will use any information you provide from 1098-Ts to calculate any student credits, etc, you may get. In fact, if you tell it you're a student at any point it will specifically prompt you to enter your 1098T. These numbers might not be wholly accurate, since the timing of when you made the payments might not tie out to when the college invoiced you for classes. Plus, some of your other out-of-pocket expenses and fees might not be included on here.
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May 9, 2011 16:32
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Hillridge posted:Are there restrictions on how much/what I can donate to a 501c3 if I'm a board member of that 501c3? If the value of the truck is over $500 the non-profit needs to issue you a 1098-C for the value of the donated auto. http://www.irs.gov/pub/irs-pdf/f1098c.pdf I'd see no problem with you doing this. The "Self-dealing" rules tend to be more payroll/rent/interest related that accepting donations from an officer.
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May 9, 2011 16:34
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Question that's been hounding me for a couple years, that I was reminded of by reading the OP, plus a new issue I originally came here for: I and my fiance (more on this question later) live in North Carolina and work just over the line in South Carolina. When I did my taxes for the first year I worked there, TurboTax showed that I was still owing money to North Carolina (something like $400-$500), even though I earned no money there. I ended up finding a screen in the North Carolina section that mentioned taxes paid to other states. It already had a number, but thinking I was doing the right thing, I included the whole amount of taxes I paid to South Carolina, thereby zeroing out the amount needing to be paid to NC. This worked for that year (2008) and 2009. This February, I got suspicious. I'd done a bit of research and saw that something about NC and SC meant that I couldn't just write off the taxes paid to SC. So while doing my taxes through TurboTax again, I contacted one of the TT professionals they advertise. The guy contacted me back a day later or so and informed me that I was going to end up paying North Carolina the ~$600 TT said I owed them, and that I can't just include the whole amount of taxes paid to SC on that one screen. So basically, I'm being hit double on my taxes. Is this right? It doesn't seem right. Tax code generally makes sense to me, as its just balancing numbers, but this wrinkle just doesn't. Question 2: As stated above, I have a fiance and we're getting married this year. I read somewhere that if we intend to file Married/Jointly next year, we should be changing our W-2s to show us as married right now, instead of after the wedding (October). Yes/no/wtf? Thanks for your help.
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May 19, 2011 15:58
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