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Mom is not a US resident, and the money used to be in a foreign bank, earned from the completely non-US small business she ran. My main goal is to take advantage of my US resident status to invest the money into US treasuries and low expense index funds. Such investments are not reliable in my home country as the economy is teetering on the edge here.
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Feb 26, 2024 12:48
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It doesn’t sound like this is a US income tax question? Without knowing anything else like what country you’re talking about etc it really seems like your mom unnecessarily complicated things because now you have to figure out how to bring half a million in cash into the US which sounds like it’s going to raise a bunch of red flags. Not to mention it sounds like your mom was actually trying to commit tax fraud in her country of residence? That’s the only reason she pulled everything out in cash, according to your post, isn’t it?
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Feb 26, 2024 13:40
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Yes, I’m with Boris. You should be consulting a local tax lawyer but also the answer is simply pay the estate tax. I’m assuming that your estate tax laws have a lookback period where gifts made in life count as advances on the estate and thus subject to the tax. All that said, if you’re no longer a tax resident, ask you local tax lawyer whether paying for the tax is a you problem or the estate’s problem in which case your mother or the estate can decide accordingly whether to withhold the necessary amounts before transferring or not.
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Feb 26, 2024 14:25
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Boris Galerkin posted:It doesn’t sound like this is a US income tax question? Without knowing anything else like what country you’re talking about etc it really seems like your mom unnecessarily complicated things because now you have to figure out how to bring half a million in cash into the US which sounds like it’s going to raise a bunch of red flags. Not to mention it sounds like your mom was actually trying to commit tax fraud in her country of residence? That’s the only reason she pulled everything out in cash, according to your post, isn’t it? I know that this is not solely a US income tax question, and I'm working with a non-US tax lawyer to handle things on the non-US side accordingly. My question was mostly about whether the transfer of a large sum of money from overseas would count as income for US tax purposes, and whether the way I obtained said money overseas would change how it's dealt.
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Feb 26, 2024 16:16
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I currently live and pay taxes in AZ but I am planning on moving roughly halfway through this year. Thanks to my high AGI I get to make quarterly estimated tax payments this year. Should I: A. Pay the estimated quarterly amounts until the end of the year and then get the money back as over payment on my 2024 taxes? B. Pay the first two estimated quarterly amounts and then stop if I actually go through with the move this May? C. Pay half the estimated quarterly amounts all 4 quarters so that the total amount of estimated taxes paid is correct for the portion of my AGI that gets earned in AZ?
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Feb 29, 2024 10:36
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KodiakRS posted:I currently live and pay taxes in AZ but I am planning on moving roughly halfway through this year. Thanks to my high AGI I get to make quarterly estimated tax payments this year. Should I: Usually my advice would be “B” as a first choice and “A” as the second choice unless you’re positive you are moving in May. Also make sure you don’t need to make estimates to your new state.
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Feb 29, 2024 14:48
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Gabriel Grub posted:I was not serious about the traveling with half a million dollars cash and bullion, guys. stop ruining my dream of traveling handcuffed to a briefcase.
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Feb 29, 2024 17:31
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Deviant posted:stop ruining my dream of traveling handcuffed to a briefcase. Do it. Do NOT parachute out of the plane with a briefcase full of money, only for nobody to hear from you again.
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Feb 29, 2024 17:51
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Uthor posted:Do it. this warning comes too late; turns out op is actually db cooper.
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Feb 29, 2024 19:12
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This question is from pure curiosity, thinking back to the "covid cash" days early in the pandemic. Here's the story: In early 2019 my ex-husband and I filed a joint return for 2018, with him as the primary tax filer. We were divorced by November 2019. In 2020, I filed my 2019 taxes as a single return very early, while my ex procrastinated almost as much as he could. This meant that the in the first phase of stimulus payments I received $1200 on the basis of my single 2019 tax-year filing, and he received $2400 on the basis of the last recorded return for his SSN, the MFJ from 2018. We were already in very limited contact and I haven't heard from him in years. Would the IRS ever have come after him for getting that extra $1200? (I hope not, but none of this feels like it ever was my problem)
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Mar 2, 2024 16:19
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Submitted my taxes early, feels good man.
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Mar 2, 2024 22:41
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jemand posted:This question is from pure curiosity, thinking back to the "covid cash" days early in the pandemic. Unlikely
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Mar 2, 2024 23:02
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We have the thing where the USPS sends us scans of our mail every day and I had one from the IRS and I was all worried but it turns out they just send you a letter after you create an online account.
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Mar 3, 2024 15:57
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smackfu posted:We have the thing where the USPS sends us scans of our mail every day and I had one from the IRS and I was all worried but it turns out they just send you a letter after you create an online account. I have the same thing and every year, NYS sends me a STAR check that I forget is coming and every year, I panic that I hosed up my state taxes.
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Mar 3, 2024 17:20
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2 questions 1) My grandma passed away last September and she didn't have a will so there's no executor of her estate but I've been handling most of her bills, accounts and loose ends. Do I need to file taxes for her? She was almost 90 and her only income was from SSI. I have her mail forwarded to me and I haven't gotten anything related to taxes for her so I'm hoping the answer is no. 2) I maxed out my traditional IRA contribution for 2023. Am I supposed to receive a form 5498 from the financial institution for my taxes? I still haven't gotten one.
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Mar 5, 2024 20:45
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Centzon Totochtin posted:2) I maxed out my traditional IRA contribution for 2023. Am I supposed to receive a form 5498 from the financial institution for my taxes? I still haven't gotten one. You'll get an informational copy of a 5498 eventually but you don't need it to file your taxes.
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Mar 5, 2024 20:54
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Centzon Totochtin posted:1) My grandma passed away last September and she didn't have a will so there's no executor of her estate but I've been handling most of her bills, accounts and loose ends. Do I need to file taxes for her? She was almost 90 and her only income was from SSI. I have her mail forwarded to me and I haven't gotten anything related to taxes for her so I'm hoping the answer is no. Yes but first you need to open probate for her estate so you or someone can be named executor. If she's under the limits you should be able to do a small estate affidavit. Then you can close it all out by following the instructions. Otherwise hire an estate planning attorney to figure out what's what.
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Mar 5, 2024 20:56
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The answer is most likely no, you won't need to file any taxes for the estate. As the representative of her estate, you would be responsible for filing her final individual tax return. But you said she didn't have any taxable income, so you aren't required to file an individual income tax return. Estates that are large enough have to file estate tax returns. The threshold is around $13 million for the federal estate tax, but may be lower for some state estate taxes. However, if your grandmother was receiving SSI, it's almost impossible for her estate to be big enough to be subject to any estate tax, in which case you won't have to file any estate tax returns. Estates that receive income may have to file income tax returns, generally if the amount if income is over $600 in a year. But again, if your grandmother had no sources of income or much in the way of assets, then it may well be that her estate isn't receiving any significant income. If so, then you won't have to file any estate income tax returns.
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Mar 6, 2024 08:39
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raminasi posted:You'll get an informational copy of a 5498 eventually but you don't need it to file your taxes. So I don't get a tax deduction for it? Also regarding filing for my deceased grandmother, I'm getting conflicting information here so I'm gonna hold off on it for now
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Mar 6, 2024 19:05
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Where is the non-wage income point when it makes sense to just set W2 withholdings to zero and make quarterly estimated payments?
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Mar 7, 2024 05:32
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Somewhere between 10% and 20% as non wage. By 20% you are almost certainly failing the tests for owning an underpayment penalty unless your wage income is also increasing rapidly year over year.
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Mar 7, 2024 06:06
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I performed an IRA -> 401k rollover a couple of months ago and just received a residual check for $0.04 in the mail. Is there a compelling reason not to just ignore it? Forwarding it to the 401k administrator will be annoying.Centzon Totochtin posted:So I don't get a tax deduction for it? You might, depending on your income. You just don't need to include your 5498 when you file. I think the deduction amount (which is determined by a whole formula and worksheet) goes on Schedule 1 but I'm just Some Guy With Google, not an accountant or professional tax person or anything (and I've never made a deductible IRA contribution myself, only non-deductible ones.)
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Mar 7, 2024 23:11
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i live in new jersey. if i sell my half of my father’s business (left to us when he deceased), what are my tax implications? is this income? short term capital gain? a different thing?
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Mar 7, 2024 23:23
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raminasi posted:I performed an IRA -> 401k rollover a couple of months ago and just received a residual check for $0.04 in the mail. Is there a compelling reason not to just ignore it? Forwarding it to the 401k administrator will be annoying. Yeah I filed on freetaxusa yesterday and they just asked me how much I contributed. Feels odd that some things need a form but other things they'll just take my word for it.
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Mar 7, 2024 23:28
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A 50S RAYGUN posted:i live in new jersey. if i sell my half of my father’s business (left to us when he deceased), what are my tax implications? is this income? short term capital gain? a different thing? You need to engage with an accountant and whoever handled your fathers estate. I don’t say this to be dismissive, but it’s the actual answer.
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Mar 8, 2024 00:35
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Inheriting and then selling a business certainly seems like hire a pro territory for lots of reasons, but for tax isn't it more or less a capital asset, and the basis is the value at death?
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Mar 8, 2024 01:49
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Xenoborg posted:Somewhere between 10% and 20% as non wage. By 20% you are almost certainly failing the tests for owning an underpayment penalty unless your wage income is also increasing rapidly year over year. On the new W4 form there is line 4c for just "Extra Withholding". Could you theoretically use that to withhold all W2 income?
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Mar 8, 2024 13:06
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Epitope posted:Inheriting and then selling a business certainly seems like hire a pro territory for lots of reasons, but for tax isn't it more or less a capital asset, and the basis is the value at death? Maybe, but it would depend on how the estate was set up. Also, how the business was organized might have repercussions on the design of the business sale. OP, see a professional. You don’t want to be relying on strangers from the Internet for this one.
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Mar 8, 2024 14:32
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Centzon Totochtin posted:So I don't get a tax deduction for it? You can deduct Traditional IRA contributions depending on your income and if you have a retirement plan at work. You do not need the 5498 form to file your taxes. No one gets sent them until after the deadline anyway. You just include the amount you contributed on your tax forms. You can also say that you will contribute even if you haven't yet. You can file with the deduction and then make the 2023 contribution later... before the filing deadline. Zero One fucked around with this message at 16:32 on Mar 8, 2024 |
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Mar 8, 2024 16:25
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raminasi posted:I performed an IRA -> 401k rollover a couple of months ago and just received a residual check for $0.04 in the mail. Is there a compelling reason not to just ignore it? Forwarding it to the 401k administrator will be annoying. Yeah just frame it as hilarious. It doesn't matter.
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Mar 9, 2024 17:26
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A 50S RAYGUN posted:i live in new jersey. if i sell my half of my father’s business (left to us when he deceased), what are my tax implications? is this income? short term capital gain? a different thing? As other posters noted, this could be either mundane or relatively complex, depending on both the legal structure of the business and the structure of this contemplated sale. And of course the nature of the business itself. Your best bet on this is to speak with the CPA that handles the business income tax filings (assuming this business isn't just a single member LLC). They would be able to guide you on what a contemplated sale may look like. You may also be able to engagement them to do your individual filing for the year in question (recommended). They would also likely be familiar with some of the history so there would be less "catch up" to do as you would see with a new/unfamiliar provider.
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Mar 10, 2024 17:02
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I was filling out my taxes and got a notification that there was an error in my W-2; apparently my SSA withholding was $14 dollars more than it should have been. I notified my employer to get a corrected W-2. Since then there has been a constant rolling promise the new one would be available soon. Last week they finally told me it would be 3-6 weeks to receive the corrected W-2c. I had originally notified them of the mistake the last week of February. This seems pretty unreasonable to me, particular as it means I might be right up on the deadline to file. Is this an acceptable or typical timeline? Can I bring any real pressure to bear on the payroll company? It seems like you can tell the IRS to call your employer, but I don't know if that would actually speed up the process.
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Mar 10, 2024 23:02
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It’s $14… does it matter?
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Mar 10, 2024 23:41
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I don't care about the $14, but once the error was flagged it seems like the options are either to wait and file with a corrected W-2c, or paper file with a form 4852 providing the corrected information. It didn't seem like I had the option to ignore it and file anyway.
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Mar 11, 2024 00:27
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I just received a late 1099 form from an account I closed last year. I have already efiled my taxes with TurboTax - is amending it a pretty simple process? I'm thinking of waiting until the end of this month to make sure I don't receive any other surprise forms.
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Mar 11, 2024 00:47
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Ashcans posted:I was filling out my taxes and got a notification that there was an error in my W-2; apparently my SSA withholding was $14 dollars more than it should have been. I notified my employer to get a corrected W-2. Since then there has been a constant rolling promise the new one would be available soon. Last week they finally told me it would be 3-6 weeks to receive the corrected W-2c. I had originally notified them of the mistake the last week of February. This seems pretty unreasonable to me, particular as it means I might be right up on the deadline to file. If the only mistake is the SSA withholding it should only be an issue if you are over the max withholding, in which case you'd get $14 back if you amended your return.
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Mar 11, 2024 01:21
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This is my first year filing taxes. Filed through FreeTaxUSA on Jan. 27th, was accepted on the 29th I believe, but 'where's my refund' has been sitting on the 'being processed' screen ever since. Towards the end of February, I created an account on irs.gov and realized they'd been waiting on me to receive an identity verification letter that I hadn't received yet, so I made sure my address was correct on my tax return (it was) and requested a new letter. It still hasn't shown up. Should I call? Getting a little anxious since it's less than a month until the deadline and I filed early.
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Mar 19, 2024 22:46
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barclayed posted:This is my first year filing taxes. Filed through FreeTaxUSA on Jan. 27th, was accepted on the 29th I believe, but 'where's my refund' has been sitting on the 'being processed' screen ever since. Towards the end of February, I created an account on irs.gov and realized they'd been waiting on me to receive an identity verification letter that I hadn't received yet, so I made sure my address was correct on my tax return (it was) and requested a new letter. It still hasn't shown up. Should I call? Getting a little anxious since it's less than a month until the deadline and I filed early. As far as the verification letter give it 30 days from the date you requested it be reissued (the letters are going out slower than usual right now due to a high volume of cases). Also, because the letter doesn't make this clear, if you get the option to verify online it may be a two-stage process. First, you'll have to set up an ID.ME account on IRS.GOV if you haven't already. You can do that without waiting for the letter if you want. There is a verification portion of that, but it's just confirming your identity. The second part is actually verifying the tax return. There's a separate website you go to for that part that's listed in the letter and that part requires info from the letter so you can't do it until the letter arrives. The letter may not allow online verification, in which case you will follow the instructions to instead either verify over the phone or set up an appointment at a local IRS office. Verifying over the phone also requires you have the letter to provide essential info, and the appointment line won't set up an appointment unless you've either failed the other steps or the letter you've recieved states a visit to a Taxpayer Center is required.
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Mar 19, 2024 23:48
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I did a backdoor Roth IRA last year. I am above the income limits. I had my taxes done by a 3rd party, and they have marked this as a Traditional IRA distribution, and they added this as income. They also did not mark the original IRA contribution as tax deductible. Is this the correct thing to do here? it increased my taxable income by 6500 and increased my taxes paid by my 32% tax bracket. Fees like I'm getting double taxed here for that money. Any ideas?
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Mar 22, 2024 03:09
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Do you have the 1099-R from the traditional IRA? It will have the total amount listed on 2a as taxable amount, but then will also have 2b "taxable amount not determined checked". So what did the preparer put on 1040 line 4a? That should have the total distribution and then 4b should be 0. Unless you had an existing balance in Traditional IRAs before the backdoor. That would create taxable income also but would be on form 8606.
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Mar 22, 2024 03:41
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