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Hi Tax Nerds, the investing thread suggested I try asking this here. Pretend I asked this 13 days ago. Tax loss harvesting question, mainly to make sure I'm doing it correctly.  1. Verify basis is per tax lot (it is), verify that I am set to not reinvest dividends/cap gains (I'm not.) 2. Sell the red FSPSX, buy FSKAX with it. 3. Don't re-buy the FSPSX one until it's been 30 days. 4. Profit? The one question I have is I see the rule for wash sales is 30 days before or after, does that matter if I'm selling the lots I bought <30 days ago as well?
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Oct 16, 2019 22:09
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Epitope posted:Hey tax nerds. I'm trying to comprehend what the guy above me is talking about. It sounds like the scheme from office space, only a real life thing that people do. Am I on track? Yes. Google "tax loss harvesting".
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Oct 17, 2019 03:51
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MadDogMike posted:Haven't messed much with this for my clients so take this with a grain of salt, but for this - BlackMK4 posted:Fidelity handles the accounting end of this for you, go look in the YTD tax activity tab. It'll also be handled in the tax form they send you. Thanks!
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Oct 21, 2019 19:00
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Residency Evil posted:Thanks. Out of curiosity, for those people using TurboTax/taxes on their own, what percentage of them have serious errors, and what’s the scale of those errors percentage wise? Get a cpa to do it and never look back. It's been great. Don't go to h&r block (to undercut the above poster's business.) it's basically double-triple the cost of doing it with TurboTax once you have paid all their dumb upsells to actually file your taxes. Plus you aren't encouraging intuit.
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Oct 22, 2019 16:23
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sale on Banksy art posted:Lol Intuit has professional software used by tons of CPAs. There’s a good chance Intuit got your money anyway. I know.  My last guy I actually asked him what he used to check.
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Oct 22, 2019 17:27
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MadDogMike posted:Honestly last I checked most returns done by a preparer tend to charge pretty close to the same, which is always a bunch more than just do-it-yourself software. Like the aforementioned plumbing example, you’re paying extra to have a guy who does more of the work in a year than you do generally do in your lifetime perform it, so it’s a question of the money vs. experience/time for you like all professional work. All I can say to the people who devalue what we do is they generally have NO idea how much a screwup costs in time and frequently money until the scary IRS or state letter shows up. God knows I’ve had tons of people swear they’re not doing it again themselves after I had to fix it. Yeah, I decided once I got well past 1040A land to just go all in having someone else do it. Anyone who is squarely 1040-EZ (I realize they recently changed a bunch of stuff here) should DIY it because why not, but if your life is complicated, forget it. Especially for mr evil up there and his doctor income. Just mail it all off to a CPA and be done with it.
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Oct 22, 2019 23:52
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I know I am already past the due dates for the payments, but in the interest of staunching the bleeding: Quarterly taxes. Last year I owed the federal tax man $10k. So far this year I've only paid taxes on stuff that is withheld automatically, but I just got a huge chunk of money from ESPP sale which has had exactly $0 withheld from it. It's all short term "disqualifying disposition" so I know everything is effectively ordinary income rates. To date I've paid 105.3% of last years tax burden according to the "Federal Withholding" line on my most recent pay stub. Three more paychecks in 2019 puts me to 109.6%. I'm not afraid of the $LOL check, but I don't want to get hit with a bunch of penalties. Or more penalties. Dr. Google says https://www.investopedia.com/articles/personal-finance/020316/estimated-tax-deadlines-2016.asp says: quote:Current year safe harbor. If the estimated taxes you pay turn out to be at least 90% of your final bill for 2019 and you made payments on time, no penalties will apply. Am I safe harbored from penalties so long as I hit that 110%?
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Nov 22, 2019 20:37
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C-Euro posted:I'm updating my and my wife's W4s for the new year and I noticed that the Multiple Jobs/Spouse Works section has a shiny new box for determining withholding that says "if there are only two jobs total, you may check this box and do the same on Form W4 for the other job. This option is accurate for jobs with similar pay; otherwise, more tax than necessary may be withheld". Any educated guesses on how tight of a range "similar pay" is here? $5k or less maybe? Whatever keeps you in the same marginal % should be close enough. If you have predictable income add them together, subtract the standard deduction, 401k, and then divide by pay periods. Use a flat number.
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Jan 2, 2020 16:36
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Artonos posted:This is a shot in the dark. I occasionally take some things that we throw out at work and recycle them and split the money with a couple others at work. Do I have to pay taxes on that money? I have seen conflicting things online and the people at the scrap place say I don't have to. Any income is taxable, including ill gotten gains. (Not saying this is ill gotten.) Are you going to get caught over what I assume is a few hundred dollars cash each with no real name attached and reported? Unlikely. If the scrapper sends your name and info to the IRS then perhaps yes. I would conveniently forget about it if it's under a grand and just agree with the auditor should it come to that. "Oh jeez I totally forgot about that. So I owe what on it? Let me write you a check right now." If it's over a grand have the guy with the lowest marginal rate claim it and pay the taxes before splitting it.
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Jan 4, 2020 18:54
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Ring of Light posted:We have always taken the standard deduction but I have heard that once you own your home you usually come out ahead itemizing. Is there a resource you would recommend to educate myself on what kinds of expenses can be claimed? I’ve never paid much attention since it wasn’t even close before. Once you own a home (or have other significant non-retirement assets) you really need an estate planning package. This helps you avoid probate when you die. It's a long drawn out process to divvy up your assets where, in california at least, the lawyers get paid a % of assets probated. This includes things like your house. Your estate plan can also help you with the whole getting on with dying part, as it should include an advanced medical directive. Check the box that says pull the plug.
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Jan 6, 2020 01:30
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ARCDad posted:I'm getting married in May of this year, but my fiance's company just told her that if she needs to change her witholdings, then that needs to happen by friday. A few questions on this: Don't overthink it. Once married just hand HR a new w-4. They will figure it out. Mfj is the only way to fly. You can do it starting in the year you marry. It's only hard if you have wildly different incomes or your combination of incomes jumps you a serious tax bracket.
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Jan 7, 2020 03:42
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Buckhead posted:A start-up I use to work at was recently acquired in an all-cash deal. The deal is closing in the coming days. I am trying to figure it out if the proceeds from the sale are income tax or short/long term capital gains. As others said, it's STCG, but what isn't mentioned is only on the spread between what you're paying taxes on in our 2019 return and the sale price. Assuming they were ISO's you're potentially looking at a huge AMT hit as they spread between your exercise price and FMV when you exercised and did not dispose of them in that year is all income on the amt worksheet. For example, assuming ISO's: Option exercise price: $1 FMV when you exercised: $2 Sale price in the stock sale: $4. This means you owe $1 in AMT income worksheet for your 2019 taxes, which you can potentially carry over into future years, and $2 in STCG on your 2020 return.
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Jan 11, 2020 21:43
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Buckhead posted:Thanks for the help all. Yup this is the time to hire a cpa. It's the fmv at exercise time that matters. They will give you all the forms you need. Probably.
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Jan 12, 2020 00:29
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MorrisBae posted:Question - I initiated a rollover from my 401k (traditional) of a previous employer to my IRA (traditional) in December 2019 Report whatever the form says but it will almost certainly be the actual transaction date so 2020.
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Jan 20, 2020 06:45
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For several years I just did it all in TurboTax online, did their document preview at the end, and transcribed it all into the paper forms. Costed a stamped envelope. gently caress you Intuit and congress.
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Jan 23, 2020 04:43
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Discendo Vox posted:Just to be clear it doesn't mean we somehow don't wind up looking at your W2s, there's no One Weird Trick here. It means we have to both make you provide copies of them to us, and, sometimes request that a storehouse mail us your original return. I'm mad you aren't funded to the point of diminishing returns on ROI.  I'm also mad that transcripts don't show my non-deductible IRA contributions.
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Jan 26, 2020 03:05
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Small White Dragon posted:Did the TCJA changes make your job easier or harder? Heard the number of people itemizing has gone from ~30% to ~10%. Last year made me audibly laugh. I was at $23,9xx in itemized deductions. Took the standard for the first time in a while. Thanks SALT cap. 
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Jan 26, 2020 03:33
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gvibes posted:He's one of a few that is very familiar with my partnership's tax structure. Ask him to bone up real quick. Your ask isn't that uncommon and doesn't seem complicated on the surface. It's 1 extra form you need them to handle and he likely needs professional development hours to maintain his CPA.
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Jan 27, 2020 19:06
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Missing Donut posted:We’re in rough agreement. H110 was making it sound like the other CPA is not fit to be hired by the poster, which I took issue with. Just a suggestion, I don't know enough to know if they should or should not do it. Figured one professional development research project was as good as any other. 
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Jan 28, 2020 03:11
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The Bananana posted:I am im some trouble. You're not in trouble unless you owed, even then you're not in much trouble assuming you can afford it, it's flat rate penalties and interest. Just do whatever you previously did to file your taxes, in order. I've skipped a year or two previously and it never amounts to anything if you're owed a refund. Make sure you're using the software or forms from those specific years. If the software doesn't support it you're on to other software or paper forms. If in the end you don't want to do the paper by hand, hire a tax preparer to handle it for you. It will be fine.
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Jan 29, 2020 21:13
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Residency Evil posted:Yeah I've run the numbers and we fall in to the "marriage penalty" bracket. I had this happen my first year of marriage as well. I made half what my wife (at the time a big law attorney) made. Our taxes shot up due to me under withholding all year and my IRA being non-deductible.
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Feb 1, 2020 21:57
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BonerGhost posted:While you may under-withhold after marriage by not taking your combined income into account, the 'marriage penalty' (I hate calling it that, it's the cessation of certain tax reliefs for high earners) is when you literally have a higher tax liability married than the sum of your liabilities while single. You each were able to use certain deductions while single, but can't double them up once you marry, or combining your income puts you over the threshold for things like the Medicare surtax. Yeah I forget the exact details, and I know tax payment/refund isn't indicative of anything about your obligation going up/down just how well you estimated it over the year. I think most of it was under withholding and bumping some amount into the Medicare surcharge which neither of us had withheld. It was many years ago now.
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Feb 2, 2020 00:45
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Ciaphas posted:A CPA I was recommended wants $400 for my federal+state return, with my two W2s and Amendments are way easier than the initial process if for no other reason than they tell you what you hosed up and you're already familiar with the forms. I pay around $250/year for mine to be done by a CPA.
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Feb 4, 2020 17:11
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Discendo Vox posted:Please see my post from earlier about filing an amended return mid-audit. No better way to increase how much you owe than forcing another month of interest and delay on your outstanding amount. I should have clarified - I've had them kicked back for amendment by the IRS which was super easy to fix (transcribed a number wrong.) I've also had to amend later when a form I forgot about came in super late. Also easy, just jump to where that form goes then recompute on down from there. Never been audited, knock on wood.
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Feb 5, 2020 01:25
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tumblr hype man posted:How would this work when you can reimburse yourself at any point down the road? If I take the tax benefit of spending 10% of my income now, and then reimburse myself 30 years later am I supposed to file an amendment? No you aren't supposed to reimburse for things you already took a distribution on. It's tax fraud. You're really exceedingly unlikely to get caught though.
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Feb 10, 2020 02:19
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tumblr hype man posted:You mean deduction not distribution right? I don't have an HSA anyway, but what an easily cheated system. Today you deposit $1000 into your hsa. That is legally deducted from your agi, making it pre-tax money. You incur $10,000 in expenses on $50k of income and deduct the amount over 10% of your income from your agi ($5k). This makes $5k of it pretax. In 30 years you have $10k in your hsa. You can legally reimburse the remaining $5k as its the only amount that was still paid with post-tax money. That's it. To my understanding.
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Feb 10, 2020 02:52
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The Rev posted:In September my wife rolled over a standard 401(k) from a previous employer to her Vanguard Roth IRA account. As far as we understood, that would mean that come tax time we’d own taxes on that rolled over amount, which we were/are prepared for. G is correct. Did Vanguard know that the funds were Traditional and not Roth when you deposited them? The tax should be trivial to calculate - either you owe exactly $0 (trad->trad) or you owe your marginal rate as ordinary income. I think your accountant is loving up here, and that Vanguard didn't know you were doing a Trad->Roth conversion. I would call Vanguard and ask them about it, first. In theory the tax form comes from them for the conversion to Roth. Then once you know, I would talk to your accountant about it.
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Feb 12, 2020 00:37
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The Rev posted:I unfortunately don't remember if the original check explicitly mentioned that the funds were Traditional, though I thought I remembered seeing "401(k)" somewhere on there. I suppose I should have made a copy of what was sent over to Vanguard at the time. That being said the 1099-R I have now is not from Vanguard, it's from the previous employer that that we rolled the money over from. I never received a 1099-R from Vanguard and when I log into my wife's Vanguard Roth IRA account and go into the tax form center, there are no forms available for download. Should I get in contact with Vanguard and ask them to furnish a 1099-R for me/ask where there isn't one present for download currently? I appreciate your time and assistance, H110. My bet is on Vanguard assuming those were Roth funds that you deposited. You probably clicked right past something telling you about some responsibility something something. Once they know they were pre-tax dollars I imagine they will re-characterize it into Trad and say "that's it, and 2019 is correct", and the tax obligation might move into 2020 depending on exactly what they do and the rules around it. (I have no clue there.) Doesn't explain why your accountant isn't getting the right number.
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Feb 12, 2020 01:37
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The Royal Nonesuch posted:Real basic question here because oh god I am not good with forms or taxes. I'm single and standard deduction. Don't overoptimize this. $200 in taxes either way could swing just from the interest rates fluctuating or tax law changing mid-year. But yes, you can just say "ok I think I will make $1000 in interest, so 22% of that is Y, divide by pay periods, and slap that in the "withhold this much extra" line. I would just write the check at the end of the year. It's actually earning you more money this way.
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Feb 22, 2020 01:13
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dexter6 posted:Thanks all. My options are withheld at a static 22% and ESPP at 0%, but all of the income flows to my W-2. This means my marginal rate on the wages is correct, but the options are off by >=0% (depending on when in the year) and the ESPP is off by the entire amount. The easiest way to get this to come out correct is to make a payment on pay.gov every time there is a major event, though this means tracking the receipt for that. Or do what I do, aim to be within the safe harbor and smugly cut the government a check at tax time knowing it's ever so slightly advantageous to me. I keep a folder on my desk or each years taxes that are "active" (so 2019 and 2020 right now). Any time I do something tax related I print off a hard copy and put it into the relevant folder. It's me, the person who owns a printer and gets paper statements in TYOOL2020
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Feb 23, 2020 19:35
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The Gardenator posted:Never had to deal with trusts before, so here is a hypothetical: You should see an estate planning attorney to make sure you do it correctly. It varies by state and the specifics of the trust documents itself.
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Feb 23, 2020 23:04
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Asset allocation question for optimizing taxes. I own a mix of domestic and international total market index funds spread across trad ira and taxable brokerage. I got in my form 1099-DIV and line 7 shows $203 of Foreign Tax Paid which looks like I can take as a credit. Does this mean that any Total International Index Fund I'm holding in IRA's just lost that credit and I should exchange stuff around so 100% of my international allocation is in my taxable brokerage account to optimize my taxes? For example, fake numbers: Current: IRA: $70k Total Domestic; $30k Total International Taxable: $70k Total Domestic; $30k Total International Future: IRA: $100k Total Domestic Taxable: $40k Total Domestic; $60k Total International
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Feb 25, 2020 23:15
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Residency Evil posted:Lol man hopefully next year we do a better job with our W4s, because this year between state and federal taxes we underpaid by 16k. Add your two expected incomes together. Look at the marginal rate. Make sure you withhold at that rate on your w-4. If you are likely to earn similar amounts this year just pick one of your W-4's and add $1300/month to it making no other changes. I assume you're individually withholding at 32% or 35% but because you're both high earners more or less one of your incomes should be withheld entirely at the top marginal rate - not the ramped up amount. Easiest way is to compare stubs quarterly and make sure you're tracking correctly and pay quarterly taxes on the difference that isn't within the safe harbor. Or maybe just set it to Single and that should solve a lot of it. That will be $300. H110Hawk fucked around with this message at 23:58 on Feb 29, 2020 |
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Feb 29, 2020 23:52
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Pollyanna posted:Am I loving myself over more than necessary by using TurboTax "free" (i.e. they take a chunk out of your refund), or is that one of the better options? Yes. They charge you a premium for the loan. Also gently caress Intuit. Why would you voluntarily give them money, let alone part of your refund?
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Mar 8, 2020 16:25
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Welp, turbotax seems to have correctly calculated my ESPP basis, unlike fuckin Jerry. Jerry is fired. After he fixes my return from last year which I now know he definitely messed up on, but the amount he was off wasn't enough to set off any alarm bells. This year he came up with a  number. To add a question: Do any of the "minor" (non-Intuit/H&R Block) tax prep companies have a good ESPP calculation system? I know the target numbers now and I would rather not pay Intuit to continue their quest against a sane tax return system.
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Mar 12, 2020 03:51
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KillHour posted:If I get audited, I'm buying you the most annoying avatar.
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Mar 21, 2020 03:33
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MadDogMike posted:Speaking of which, how about all those stimulus questions, huh? Given how bad it is at our office I shudder to imagine what the actual IRS phone lines are like right now. No people, if you had like $1.20 in taxable income you do NOT need to suddenly file a 2019 return just to get your stimulus check, though I grant you may be waiting a while without direct deposit info on file. Hope the less ethical bastards aren’t trying to literally scare up business with that sort of thing. I can imagine some payday loan place is already trying to figure out a way to have people file their taxes with the payday loan places ACH info in exchange for getting $500 stimulus cash RIGHT NOW.
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Mar 30, 2020 23:06
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MadDogMike posted:No to both (lots of programs generate the changed 1040, but that's just for your personal reference, NOT to be sent in, and the only time I'd consider adding the W-2/1099 is if what you're correcting is leaving them off the return), just send the 1040X and the forms you mentioned. Though if you're in a state with income tax you may wish to review amending that return as well since the change in capital gains may affect that as well. Thank you. I need to do this as well.
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Apr 5, 2020 17:29
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Ask friends at work how it's worked for them in the past. Becoming an llc member is when I decided to start getting professional help. Ask them how quarterly taxes are handled.
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Apr 19, 2020 15:37
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CMYK BLYAT! posted:I've exercised and sold a bunch of ISOs. Is there any way for me to pay the capital gains tax now (I've already filed my 2019 return) instead of holding onto the expected tax until next March? I've held them for long enough that they're long-term and am basically guaranteed to fall into the 15% bracket, so I don't expect that there'd be any ambiguity about my liability. Multiply the upside by 15% and punch it into pay.gov if you insist on prepaying your tax liability. Your 2019 return has no bearing on this if you did it in 2020. Remember that ISO's have special treatment. Did you exercise them a year before you sold them? Holding the option doesn't start the ltcg timer. Holding shares does. I forget the exact iso rules, but if you exercised in 2019 and sold in 2020 then those shares are in your amt calculation in you 2019 taxes. Make a new account at your bank (ally/capital one 360 makes this easy), call it taxes, dump the estimated amount in there, ignore it until 2021.
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May 16, 2020 16:30
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