US Income Tax Thread: Bank error in your favor! GO DIRECTLY TO JAIL.

The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > US Income Tax Thread: Bank error in your favor! GO DIRECTLY TO JAIL.

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Small White Dragon: Nov 23, 2007; No relation.

Epi Lepi posted:

Isn't one of these deductions going away this year or next or did they extend it?

I thought I heard this was extended for a couple more years as part of the recent Senate bill.

EDIT: I checked the bill and it was extended for two more years.

Anyway, my understanding was the most common (biggest?) itemized deductions were mortgage interest, state & local taxes, and charitable donations.

Small White Dragon fucked around with this message at 08:59 on Jan 4, 2013

# ¿ Jan 4, 2013 08:56

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# ¿ May 10, 2024 08:47

Small White Dragon: Nov 23, 2007; No relation.

rentilius posted:

Also, I don't know if it was touched on, but the IRS has announced a simplified option for claiming the home office deduction. This new option can be, at max, $1,500. Additionally, you cannot use the pro-rated amount of home mortgage interest and real estate taxes on that section of the house. This may affect any alternative minimum tax liability, but that's always a crapshoot.

Any of you tax guys looked at this in further detail?

# ¿ Jan 21, 2013 23:31

Small White Dragon: Nov 23, 2007; No relation.

mongeese posted:

I've read that you can't deduct a traditional IRA contribution if you were covered under your employer's 401(k) plan...does that apply if you were only covered under your employer's 401(k) for like a week in 2012?

You can't deduct a traditional IRA contribution if you were allowed to participate in an employer-sponsored plan AND your income exceeds a certain threshold.

Check out http://www.irs.gov/Retirement-Plans/IRA-Deduction-Limits

# ¿ Jan 30, 2013 09:15

Small White Dragon: Nov 23, 2007; No relation.

smackfu posted:

Can someone explain why the mileage rate for health expenses is different and much lower than the rate for business expenses? I would have thought the cost to use a car for a mile would just be a single number. Is it not covering depreciation or something?

That's just Congress for you.

# ¿ Feb 7, 2013 11:26

Small White Dragon: Nov 23, 2007; No relation.

Admiral101 posted:

You're only saving 2.9% (roughly) on your income by incorporating with an S-election versus 15.3%, since you're at the social security wage cap.

Actually, if you go the S corp route, you will have to pay FICA up to the cap, and then you can personally get refunded for the employee half.

So, technically, I think you'd lose money by going the S-corp route.

# ¿ Aug 11, 2013 05:21

Small White Dragon: Nov 23, 2007; No relation.

Are you a self-employed contractor?
If so, you should be able to take these deductions on Schedule C before tax anyway.

Are you an employee of another corporation?
If so, incorporating and paying yourself could save big bucks -- but aware you'd be on the hook for the other half of FICA.

Either way, sounds like bad tax planning.

# ¿ Oct 22, 2013 02:44

Small White Dragon: Nov 23, 2007; No relation.

So e-filing is delayed. Can we go ahead and mail in paper returns?

# ¿ Jan 3, 2014 09:59

Small White Dragon: Nov 23, 2007; No relation.

PhantomOfTheCopier posted:

What's up, taxes-done-by-the-2nd buddy?

Sadly, these are business, not personal taxes. I probably won't get some of the forms I need to do my personal taxes until the last minute

# ¿ Jan 4, 2014 02:46

Small White Dragon: Nov 23, 2007; No relation.

SiGmA_X posted:

Could one roll a 401k into an IRA and then use the money to buy a house? How about 401k to Roth IRA and then pulling contributions out? I'm guessing the answer is no to both, but you guys are the experts!

Generally there's a five year waiting period when you roll non-Roth money into a Roth.

# ¿ Apr 11, 2014 23:09

Small White Dragon: Nov 23, 2007; No relation.

Duxwig posted:

Home office tax question!

Wife works for an employer and works from home a majority of the time unless she's traveling on the road(thus not self employed or anything)

1. Is she able to claim our home office(aka the 2nd bedroom) on her taxes?
2. What form is this? Any hard and fast rules about claiming this?
3. I'm a lazy bones who just uses HR Block online to file federal free w their plug and chug but can't find what the heck it would be under. Ideas?
4. We have no other real credits or deductions that would push is over the standard deduction amount, is it even worth the hassle?

The thing to be aware of with the "home office" deduction is that the area must be used exclusively for business.

I believe form 2106.

Employee expenses are subject to a 2% AGI threshold, and anything beyond that would be lumped into the amount you compare to the standard deduction.

So my guess is that it won't help you at all.

# ¿ Jan 22, 2015 04:12

Small White Dragon: Nov 23, 2007; No relation.

galahan posted:

I just tried contacting the op for services but their thread is locked and no reply.
Any other tax goons want to help me out with taxes?

I am willing to pay for being late and for tender loving care/advice because I am 1099 this year first time.
PM me or I'll be watching this thread.

My boss didn't give me a 1099 until the day before. I filed an extension yesterday although I didn't have any money to pay anything oops.

Construction is a harsh mistress. But I don't want to mess with the feds and get burnt.

His website is barnettaccounting.net and you can contact him there - or his email is in the OP. I've used his services, and he does a great job.

# ¿ Apr 20, 2015 11:19

Small White Dragon: Nov 23, 2007; No relation.

Bisty Q. posted:

If you change employers after hitting the FICA cap, does that information travel to the new employer, or do you pay double FICA tax that year?

It doesn't carry over; instead, you can claim the excess FICA on your tax return.

# ¿ May 18, 2015 21:30

Small White Dragon: Nov 23, 2007; No relation.

Is there a thread somewhere discussing the ins and outs of the proposed tax law changes?

# ¿ Dec 3, 2017 01:10

Small White Dragon: Nov 23, 2007; No relation.

KernelSlanders posted:

Since the SALT deduction is strictly cash basis (and likely going away) it seems like I can make a too-high estimated state payment before the end of the year, take the deduction on my 2017 Federal return in April, and get the payment itself back when filing my state return. Ordinarily, that state return would offset my state taxes for TY 2018, but since the deduction looks to be going away anyway this looks like free money.

Reportedly, this is explicitly disallowed.

# ¿ Dec 17, 2017 02:23

Small White Dragon: Nov 23, 2007; No relation.

coronaball posted:

CA-specific question: We're married, 2 kids, roughly $110K in income, $80K which is wages, $30K from a business. I usually itemize for the home office and business deductions. I have $2000 in property taxes unpaid for the rest of '17 and through June of '18. Should I pay that today to get it on my '17 return?

Not a CPA/EA but.... Home office and such deductions are going away next year. There's a restriction against pre-paying 2018 state income tax now, but sounds like it doesn't apply to property tax. So, if you're not subject to the AMT, I would say to hit that thing while you still can.

# ¿ Dec 29, 2017 23:10

Small White Dragon: Nov 23, 2007; No relation.

silence_kit posted:

I don�t know regarding your first question about whether the IRS will notice that you stiffed them $12. Even if they notice, I�d be shocked if they cared or did anything about it, since it would be pretty uneconomical of them to put anybody on a $12 tax evasion case. However, I don�t have a deep understanding of how the IRS works and am not a tax professional.

If they do, for an amount like that, they'll probably just send you a letter saying "Hey, we think you owe us $X, either pay us or prove you don't" and you can just send them a check and that'll be that.

Of course, ignore a few letters and the IRS and interesting things may happen.

# ¿ Feb 4, 2018 17:22

Small White Dragon: Nov 23, 2007; No relation.

Does income from the sale of a house (which is eligible for the capital gains exclusion) count towards the IRA contribution limits (Traditional or Roth)?

Small White Dragon fucked around with this message at 03:51 on Aug 7, 2018

# ¿ Aug 7, 2018 03:45

Small White Dragon: Nov 23, 2007; No relation.

AbbiTheDog posted:

Ugh. Our state has disconnected from the IRS and will have different rules for deductions. That's going to be fun trying to explain.

You're in Oregon, right?

I am curious to hear how most states are handling all these changes.

# ¿ Aug 29, 2018 01:08

Small White Dragon: Nov 23, 2007; No relation.

SurgicalOntologist posted:

Is $1575-1850 a high prep fee for a federal + state 1040 with a simple schedule C?

yes

# ¿ Oct 26, 2018 09:50

Small White Dragon: Nov 23, 2007; No relation.

I just saw draft versions of the 2018 forms are available. Kind of interesting.

# ¿ Oct 31, 2018 05:02

Small White Dragon: Nov 23, 2007; No relation.

AbbiTheDog posted:

Some pages back (10? 20?) was the Goon complaining about Furu, not sure of the details.

Would be curious to hear what happened. I went back 25 pages or so, searching for his username in every page but couldn't find it.

FWIW, I've been a client of his for a while, he's always done well by me.

# ¿ Nov 3, 2018 02:59

Small White Dragon: Nov 23, 2007; No relation.

So is anyone around to accept forms/checks being mailed to the IRS currently?

# ¿ Dec 27, 2018 06:50

Small White Dragon: Nov 23, 2007; No relation.

Initio posted:

The 15% is included on my W-2 and treated as regular income.

Wait... is this standard? So there's no point in holding onto the stock for a year to take advantage of Long Term Capital Gains?

# ¿ Jan 13, 2019 07:32

Small White Dragon: Nov 23, 2007; No relation.

Motronic posted:

But I'm pretty sure I've said many times what I think about holding stock in the company you're getting your paycheck from unless you're already quite well into FU money territory.

Sure, I get the increased risk (especially if they go out of business suddenly, because then you're out of a job AND your stock is worthless) but when you're in a high tax bracket, LTCG rates can look appealing. But it sounds like there's no tax benefit to holding ESPP stock beyond the first moment you can sell.

# ¿ Jan 14, 2019 00:43

Small White Dragon: Nov 23, 2007; No relation.

Should I be expecting any forms if I made HSA contributions, but not deductions in 2018? (I know there's a form sent if you took money out.)

# ¿ Jan 20, 2019 23:59

Small White Dragon: Nov 23, 2007; No relation.

What tax forms should one expect on a sale of a house?

My mother sold her house last year, and she lived there over a decade and the gain is under $250k, so there should be no taxes owed. I presumed she should have received a 1099-s perhaps, but it doesn't seem like she did. I can just have her report the amount she received, but I was concerned if that doesn't match precisely with what might have been reported, that it would generate a CP2000 and cause a headache.

# ¿ Mar 21, 2019 06:14

Small White Dragon: Nov 23, 2007; No relation.

Jan posted:

What's the point of doing so, just being able to defer tax on any gains inside the IRA until withdrawal?

Also, not a tax thing, but IIRC in some states, IRA money may be better protected if you get sued or go bankrupt or whatever.

# ¿ Mar 28, 2019 12:51

Small White Dragon: Nov 23, 2007; No relation.

Discendo Vox posted:

IRS goon here. Please e-file so when I audit you I don�t have to crawl through an incomplete Unisys printout trying to piece together what your W2s were.

Did the TCJA changes make your job easier or harder? Heard the number of people itemizing has gone from ~30% to ~10%.

# ¿ Jan 26, 2020 03:24

Small White Dragon: Nov 23, 2007; No relation.

eddiewalker posted:

From that rough description, does it sound like I�m eligible to put 25% of the sum of all my w2 gross into an �individual 401k?�

A SEP or a solo 401(k) would be limited just on your self-employment income. You can do that in addition to a Roth, assuming you're under the income limits.

It's hard to say what's best without knowing the amounts and how much you'd like to save.

# ¿ Mar 5, 2020 03:53

Small White Dragon: Nov 23, 2007; No relation.

Pollyanna posted:

1095-C isn't used anymore or something, and 1099-HC was for the state taxes part.

Really? What happened to it?

# ¿ Mar 8, 2020 17:22

Small White Dragon: Nov 23, 2007; No relation.

Discendo Vox posted:

Bad news everyone, your relief checks are going to be delayed because the President decided he wants his name on all of them, and we have to rework the software that handles payments so it can do that.

So the "Where's My Payment" thing is online, but apparently if you've changed banks since your last refund, you can't update your direct deposit? They just tell they're going to send it to a closed account? Hooray.

EDIT: And of course the FAQ they link to does not address this.

Small White Dragon fucked around with this message at 16:33 on Apr 15, 2020

# ¿ Apr 15, 2020 15:44

Small White Dragon: Nov 23, 2007; No relation.

Do we have any idea if they're going to update the status online if your direct deposit went to a closed account, or is it just "check your mail for the next six months."

# ¿ Apr 21, 2020 22:53

Small White Dragon: Nov 23, 2007; No relation.

Victoria_alice posted:

My question is, I'll definitely end up being paid over $600. Is it true that at the end of the year, they'll issue a 1099 for what they ended up paying me throughout the year, and they will report that amount as an expense and not have to pay taxes on my income as well essentially?

Correct. Some local/state taxes may vary, but in general businesses pay income taxes solely on their profits.

# ¿ Apr 22, 2020 02:16

Small White Dragon: Nov 23, 2007; No relation.

Small White Dragon posted:

Do we have any idea if they're going to update the status online if your direct deposit went to a closed account, or is it just "check your mail for the next six months."

Discendo Vox posted:

I am not certain about that, and regrettably am not involved with the rollout generally, so I don't have any insight on troubleshooting. I just know it's a common problem and I have to assume they're aware of it.

For anyone interested -- some reports on Reddit that the payment page has updated to reflect a check will be mailed if payment bounced. No change here, but maybe for someone else.

# ¿ Apr 23, 2020 01:34

Small White Dragon: Nov 23, 2007; No relation.

Cabbages and Kings posted:

My fed return has sat in "received" status for, I believe, a week at this point. I am used to things clearing and starting the release to ACH process faster than that; are things overall delayed this year because of general confusion and lack of staffing, or should I be concerned?

Did you file via paper or electronically? Because apparently no one is processing paper returns presently.

# ¿ Apr 23, 2020 21:16

Small White Dragon: Nov 23, 2007; No relation.

So apparently 1099-MISC won't be used going forward for independent contractor services, there will be a separate form. Curious what prompted that.

# ¿ May 17, 2020 04:51

Small White Dragon: Nov 23, 2007; No relation.

I'm sure a lot of us have probably heard about the issues with paper returns, but sounds like e-filed refunds are taking a long time now for a lot of people too.

# ¿ Jun 25, 2020 16:00

Small White Dragon: Nov 23, 2007; No relation.

Oh, hey, they changed form 941.

# ¿ Jul 1, 2020 05:11

Small White Dragon: Nov 23, 2007; No relation.

Ungratek posted:

As someone who has worked 130 hours already this month on returns, I dislike all of you who wait to the last minute after getting a 3 month extension to file.

It's okay, now most of your clients can wait who knows how long to get their refund :mmmhmm:

# ¿ Jul 14, 2020 08:11

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# ¿ May 10, 2024 08:47

Small White Dragon: Nov 23, 2007; No relation.

Mr.Radar posted:

I mailed in my tax forms at the beginning of March (to the California processing center) and the IRS still hasn't processed them (I haven't received my refund and the site to check my return status says they haven't received anything from me yet). Is their mail-in processing that backed up? Or should I assume my tax forms get lost in the mail somewhere and I need to send them in again? Should I request an extension?

Supposedly there's still a huge pile of unopened returns.

And they still haven't processed a lot of electronically filed returns either. :eng99:

# ¿ Jul 16, 2020 02:34

The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > US Income Tax Thread: Bank error in your favor! GO DIRECTLY TO JAIL.

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