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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Epi Lepi: Oct 29, 2009; You can hear the voice
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It's the voice of MK Ultra
And you're doing what it wants

BabyJebus posted:

There are 2 separate events.
1. The RSUs vested. The value of the stock that was granted is reported as income on her W2. The withholding is done by her company and also reported on the W2.
2. You sold the stock. Fidelity typically would not withhold anything on this transaction, it's functionally the same as selling any other stock in your taxable brokerage account. If Fidelity is reporting the cost basis as $0 then you will need to look up the actual cost basis (the price of the share when #1 took place) and use that instead of $0 to calculate any capital gains owed on the sale. If that cost basis is $Y and the total value of the stock increased by $100 from #1 to #2, you will owe capital gains on that $100.

What he said, on her W-2 in box 14 should be the RSU vested amount that was included in her wages in box 1.

On the Fidelity statement in the supporting documents there will be a statement for the sold units that has their actual cost basis based on the vesting price, they'll have like code "e" or "z" or some poo poo and that's the amount you put in your cost basis on the tax return.

# ¿ Mar 9, 2023 02:31

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# ¿ May 10, 2024 06:25

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

You want to look at your paystubs before and after the RSU vesting, and that should give you an idea as to whether they were handling it correctly or not.

# ¿ Mar 10, 2023 00:37

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

xarph posted:

Good news everyone! Someone made an anime dating simulator that does your taxes. https://store.steampowered.com/app/2363850/Tax_Heaven_3000/

Love to enter my social security number into random steam games!

# ¿ Mar 22, 2023 05:01

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

If you only want to listen to the answer that you already wanted to hear why did you bother asking for help?

gently caress off it's tax season and we don't have time for stupidity. Just go gently caress around and hope you don't find out.

# ¿ Apr 3, 2023 02:23

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

Speaking of multi-state filing requirements, I have an issue I'm not sure how to handle for a new client. He is a musician who operates as an S Corporation. His S Corp is NY based and also registered in CA and MA for sure and I think like CT or something. Last year he did some shows in NJ and TN. If he was operating as a single member LLC or just as himself I would file a non-resident NJ return for the income from that show and that would be that since TN doesn't have an income tax anymore.

I'm not sure if his S Corporation has a filing requirement in those states and his entertainment lawyer did not have him register the corporation in those states (which is very annoying as I can't even e-file extensions electronically without having file numbers from those states so I can't punt the question to after April 18th).

If someone has first hand experience with this sort of thing I would appreciate some help, if not I would take some direction on what sources I can use to figure out if he truly needs to file something for those states at the entity level.

# ¿ Apr 3, 2023 04:10

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

Transcendi posted:

Here's a question about my situation, specific to NY/NJ:

Married filing jointly, living in NJ.

Spouse worked at a NY job, hybrid work arrangement all year (commuting 3 days a week).

I worked at a NJ job until mid-February 2022, and switched to a NY job starting right at the end of February. After switching jobs, I worked from home almost entirely - only 6 days spent working in NY during the entire 10-month period I was working in the new job.

So far, the lovely normal rules in NY about WFH applies, but here's the kicker: My new NY employer was renovating its entire office space throughout 2022 (reopened in Jan. 2023), and it only had a temporary "swing space" available, which could host, at most, about a dozen employees, when there are almost 100 employees working for this employer. While I would have normally had a designated office space, the swing space worked like a bunch of visitor offices and desks, which could only be taken by reservation on a day to day basis.

Can I claim this as a situation in which my working from home was for the employer's convenience, therefore allowing me to allocate NY and NJ income based on actual days worked in NY?

And if I actually do this, I will end up claiming a large refund from NY, offset by a large payment to NJ (plus underpayment penalties), since my NY employer withheld NY income tax only. I'm 99.99% sure that this will trigger an audit from NY (though I'm sure NJ will be happy to take my money). So the question is, does anyone know how much an NY income tax audit sucks?

Really tempted to push this because the difference will end up being about $4,500, even after the underpayment interest to NJ...

If you're due an abnormally large refund from them there's good odds that NYS will send you a letter asking you to justify your non-resident allocation. You will need to get a letter from your employer stating that you working from home was for their convenience, NYS will just blanket deny you without that.

# ¿ Apr 4, 2023 21:50

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

I have a client's son who is active military and received combat pay. My understanding is combat pay is subject to FICA taxes but not income tax and generally I should be able to subtract Box 1 Wages from Box 3 wages on the W-2 and arrive at the combat pay number. On his W-2 the difference between box 1 & 3 is less than the amount his W-2 claims is combat pay. By like, $13K. Before I tell them to endure the pain of getting the government to correct his W-2, is there any other reason that anyone can think of that would lead to this discrepancy?

# ¿ Apr 8, 2023 03:58

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

neogeo0823 posted:

That jives with what I've learned over the last few days, so that's good. I have another question, which I just now learned might be extremely relevant: I finally asked the wife how much she made last year, total. Turns out she made just over $10k in gross income, while paying more than $7k in just rent alone, before any other expenses. Am I right, then, that she does still have to file a federal return, having made more than $400, but that she [/i]does not[/i] have to file a NY State return, having made less than $12,950?

Are you filing jointly or are you not filing jointly? This, her vs you stuff is unnecessarily complicating your thought process. If you're joint, think "we".

E: No offense, but your questions are giving me hives, please just talk to a real tax prep guy, your return seems so complicated to you but I guarantee someone (not me, I'm on the other side of NY and would rather choke than take on a new client right now) can bang your return out in 15-20 minutes and you won't have to keep going in circles.

Epi Lepi fucked around with this message at 00:33 on Apr 12, 2023

# ¿ Apr 12, 2023 00:28

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

I said it in an overly aggressive way (hey it's that time of the year) but it's more than you need to just relax and let someone who knows better take care of this for you. You're spinning your wheels, if you can't get hooked up with a preparer before Tuesday then file an extension for yourself and try making calls in a week or two.

# ¿ Apr 13, 2023 01:02

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

H110Hawk posted:

Are you both taking the standard deduction? If so it's a $0 difference for federal taxes how it shakes out. If one of you is itemizing it would be smarter to give them most or all of the the mortgage. Either way you can amend it if you realize that you made a mistake, it's not something to be upset about in a serious way.

Lesson learned you guys should be talking about this stuff as you're effectively married now just with none of the tax benefits.

Marriage... tax... Benefits??

# ¿ Apr 15, 2023 18:26

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

Xenoborg posted:

Ever since the TCJA the federal withholding formula has been wonky. Its a combination of a new allowance system that its 1:1 with the old so sometimes your paper work is just wrong due to admin error, and the new formals even when used right just withholding less. The later is probably political games about perceptions on how big your paycheck is and being annoyed at taxes when you have a bill due.

It's the stupidest loving thing and is 100% so that people would go "THANK YOU DADDY TRUMP FOR THE EXTRA MONEY IN MY PAYCHECK" but surprise, no one loving notices the extra money in their paycheck when they end up with a bill at the end of the year.

# ¿ Apr 16, 2023 21:39

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

MadDogMike posted:

Sure doesn't look like it to me right now; SO many drat under-withheld people.

Every year it's been worse and worse and I'm so tired of people being like "But I always got refunds in the past?!!?!"

Not anymore bitch! Get over it!

# ¿ Apr 17, 2023 05:52

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

I had to use Turbotax for the first time this year because my fancy expensive software only allows me to access 10 tax years at a time and I needed to help someone with a 2010 return. Holy poo poo I had no idea how annoying that program is. It took a million screens and questions to do anything. I'm so sorry for the folks who have to use that program every year, I hope it's gotten better since the version I had to work with.

# ¿ Apr 19, 2023 04:46

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

Gabriel Grub posted:

You used TurboTax as a paid preparer?

What are the circumstances that required working on a 2010 return, considering the IRS only looks back 6 years unless they are building a case for fraud, and you only have 3 years to claim a refund?

My associate did not file for many years due to being under the impression that she was beneath the filing requirement and the IRS has a differing opinion so I am helping her complete the missing returns. She probably would have been under the requirement were it not for some cancellations of debt that she was unaware of (debt consolidation companies are a scam) and a large settlement that she was told would be non taxable but was reported on a 1099.

sullat posted:

This isn't always true, I had a client who said a revenue officer told him to do 10 years worth of taxes. At least, he paid us for 10 years worth, so I didn't ask any more questions once the check cleared.

Yeah if a person does not file the IRS can file what they call "substitute" returns based on all the income information that gets reported to them and then oops no deductions you owe $$$$ but you can file your own return and then they will at that point decide whether to audit what you submit to them.

# ¿ Apr 19, 2023 05:51

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

Covok posted:

You paid 450 for a 1040?

gently caress, I used to undercharge big time.

Big same.

# ¿ Apr 20, 2023 03:41

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

H110Hawk posted:

So it's apparently one of those days.

Rip. Hopefully it�s a training audit, I�ve seen a couple of those the last 2 years where the exam focus is something brain dead and easy to prove. And if you�re married half of those letters may be duplicates.

# ¿ Apr 21, 2023 16:45

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

MrMojok posted:

Hi all, I have a question. This is for filing in 2024.

1) My wife and I are getting a divorce and plan to sell our house and split whatever profits we get from that. There are no children and no other property.

If the divorce is final by the end of this year, when we file next year, do we both file as Single, and then show whatever profit we spilt from selling the house as capital gains or something similar?

2) if the divorce is not final by Dec 31st but instead ends up being final in January, let�s say. In this example, we would still be filing as married, correct?

For question one if you were living in the house for 2 our of the last 5 years then you are entitled to an exclusion of gain up to $250K per person. And remember that your gain is calculated on what you sold the house for less what you bought it for (less commissions and other selling expenses that probably won't matter if you qualify for the exclusion). The cash you walk away from the table with does not have anything to do with the gain or loss.

# ¿ Apr 21, 2023 23:47

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

Random question for other preparers. I used to have a sweet excel sheet to help double-check myself when doing 1031 exchanges, but I must have lost it or something, anyone have one they like to use?

# ¿ Jun 27, 2023 21:03

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

Jaxyon posted:

Sure, but this didn't seem to be a thing last year.

It's always been a thing.

# ¿ Jul 4, 2023 20:51

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

H110Hawk posted:

Is this the "gently caress id.me" thread? Because I am so loving done with that site. I've tried 4 times now to upload my docs, and each time they're just like "nope lol." Contacted support and got a robot back. Who knows if they're actually going to follow up.

The first time I tried to make my ID.Me account it didn't think my DL looked like me and but I was able to call and do a video chat with one of their agents who was pretty much just like "yep that's you, carry on."

I'm surprised you're only getting support robots.

# ¿ Aug 10, 2023 21:23

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

PatMarshall posted:

Yeah, you need a credential and a 2848 before they'll talk to you.

90% of the reason I finally got my CPA license was so the IRS will actually talk to me when I call them about clients.

# ¿ Oct 15, 2023 20:10

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

You would think that if you file an extension for a married couple the IRS would have both Social Security numbers notated in some way as having a valid extension. You would be wrong.

I filed a Married Filing Jointly extension back in April with a payment for a client. When it came time to file the actual return after they had received K-1s and such, we ended up filing Married Filing Separately and split the payment between both returns. The IRS decided only the primary taxpayer on that joint extension gets credit and the spouse got a letter with tax due, interest, and penalties instead of a refund as planned.

I was able to call the IRS and get the penalties cancelled after about 45 minutes of jumping through hoops, but the IRS never cancels interest so that sucks.

Very annoying start to my Friday. On the plus side the agents I spoke to actually respected the "Third Party Designee May Discuss This Return with the IRS" check box for me which doesn't always happen.

# ¿ Oct 20, 2023 17:22

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

Gabriel Grub posted:

I know, but it seemed like people upthread were saying IRS wanted 2848 anyway. Maybe I misunderstood.

In my experience agents will ask for a 2848 and then try to shoo you off the phone if you don't have one without checking if you're the third party designee on the return. If I don't assert myself, which I did not always do in the past when I was younger and less experienced, the call ends. The 12 month duration may also have gotten me in the past.

# ¿ Oct 26, 2023 05:56

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

I know we have a couple IRS gremlins in this thread, do any of you have an idea on processing time for returns filed by mail at the moment? E-filing for 1040's is down for the season, does it make more sense to paper file my stragglers or wait until e-filing opens in January?

# ¿ Nov 29, 2023 00:36

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

Agronox posted:

Charitable deductions should be capped like SALT imho. Tons of rottenness in the system

SALT should not be capped so I technically agree.

# ¿ Dec 15, 2023 19:50

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

LanceHunter posted:

Possibly, though there's about a 0% chance my friend is organized enough to be doing all that. I'm only sure he's paying sales tax because that's processed automatically through the credit card payment system (which also sends a nightly email showing all the machine's previous day sales, which is pretty neat).

But yeah, it might be worth talking to a professional this year. If nothing else so that I'll already have someone ready for the poo poo-show that will be my 2024 taxes.

One thing, the sales tax is being collected but it's a good idea to make sure it's actually being remitted to the government and that sales tax returns are being filed.

# ¿ Jan 11, 2024 21:09

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

Subvisual Haze posted:

Some form you forgot about will arrive in early February.

And then in mid March you will get the corrected version. I tell clients with investment accounts not to bother me about filing until late February at the earliest. Especially if they have RBC Capital Markets, that company always sends out corrected forms.

# ¿ Feb 1, 2024 05:25

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

Bonus's and RSU's are usually withheld at a flat 22% federal withholding rate which for you is probably lower than your actual tax rate. You RSU's are included in your W-2, there's nothing else you need to enter into the return and unfortunately you probably do owe $10K to the government.

# ¿ Feb 5, 2024 22:59

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

RCarr posted:

URGENT

I recently became aware that my 2020 tax return had $40,000 worth of income that I shouldn�t have paid taxes on. (I work for the Long Island Railroad and I was injured on the job. I confirmed with multiple sources at work that this income is tax free).

The problem is the deadline to amend a prior tax return is 3 years from the date it was filed, which unfortunately is tomorrow.

H&R Block who filed my tax return in 2020 is utterly clueless and keeps telling me they cannot do this for me. Every other tax professional I have contacted is unable to see me on such short notice.

What the hell do I do? Is there any way I can just do this myself? I will be losing over $8,000 if I do not get this filed by tomorrow.

If you're LIRR I'm probably relatively local to you and can help you after tax season if you want. I have plenty of LIRR guys as clients, I've seen your case before. I have not idea why the LIRR can't issue W-2s with the correct taxable wages when there's Line of Duty Injury pay, other agencies have it figured out. Regardless of what you do make sure you attach a paystub or something to prove the LODI.

# ¿ Feb 19, 2024 06:53

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

smackfu posted:

There�s nothing really to fix is there? The withholding was already withheld and sent to the two states.

Yeah you can't unwithold taxes so it's kind of moot.

# ¿ Feb 21, 2024 04:01

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

Flora Finching posted:

I didn't get any forms from disability and there wasn't anything on the tax return that included it. Unemployment is on there which I remember doing from COVID lockdown but not SDI.

It just seems pretty hosed up that I made 30K last year and owe $500. Maybe it's just this country that's hosed up and not my paperwork.

Your SDI may have been reported on a 1099-G which is the same form used for unemployment.

# ¿ Mar 25, 2024 18:16

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

Sock The Great posted:

I had my taxes prepared by a CPA this year, so I will ask him as well. I am open to adjusting my withholdings, but I want to avoid adjusting my withholdings and making estimated payments, as I believe that would lead to a significant overpayment.

To simplify, let's assume I owe the IRS $5,000 for 2023. The CPA suggests making $10,000 estimated payments in each quarter of 2024 (4/16/24, 6/17/24, 9/16/24, and 1/16/25). Should I adjust my withholdings to pay an extra $5,000 in 2024 or an extra $10,000 in 2024?

To be honest, if he didn't discuss specifically what estimated taxes he was advising you to make then there's a good chance he just forgot to suppress the automatic estimated tax calculations in his software. I do the same every once in a while and get confused calls from clients and I have to explain that it's not mandatory and they can ignore it.

# ¿ Apr 6, 2024 04:59

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

Ne Cede Malis posted:

Thank you for helping me remain sane through this last minute BS. I owed a pretty big amount for 2022, which I paid using the voucher the preparer gave me a year ago. I was able to file and get the 2023 accepted doing what you said so the immediate fire is out. I guess you can just write the US treasury a check and they'll cash it without a return?

So I guess the next step is to call this dude up and ask him what happened and tell him to file our 2022 return. We're trying to buy a house this year and I assume not having 2022 filed will gently caress up trying to get a mortgage approved?

Part of me wants to rake this guy over the coals and demand a refund from the $1600 bucks I paid him for preparing this poo poo. I guess being charitable maybe he just forgot to hit send or something? This whole situation seems crazy to me but maybe it's just an honest mistake.

Yes the government will cash your check and just hold it and apply it eventually when the return is filed. Or never apply it to anything I saw that once where they acknowledged that money was received but dindn't actually apply it to my client's balance until we called them. It was just very dumb.

Your CPA may have been a jerk, he may have thought he filed it, he may have had a situation like me earlier this year where I'm supposed to get email alerts if a return is not accepted electronically but I had a bunch from when e-filing reopened this year that didn't go through for some reason but weren't specifically rejected and I was not aware that it happened.

# ¿ Apr 15, 2024 03:02

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

You're all focusing on the wrong thing. I've never seen a brokerage account withhold taxes so I have no clue where OP is getting the idea that that is a thing.

# ¿ Apr 28, 2024 19:53

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

H110Hawk posted:

RSU restriction releases (aka vesting) have a mandatory withholding % set, like 20% for the first million bucks or something. I imagine this is what they're referring to and presuming it's the same.

Based on their proposed course of action I think it prudent to remind them they owe those taxes no matter what and shouldn't spend money that isn't theirs.

That's a different transaction from actually selling shares in the brokerage account to get cash money for the downpayment. I was assuming they already have shares that in that brokerage account that can be sold.

# ¿ Apr 29, 2024 03:49

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

I need a sanity check, I got a new client who owns apartments in a co-op that he rents out. The prior accountant listed out mortgage interest and real estate tax expense on the rentals based on the co-op tax letter but also took the total of the co-op maintenance payments as a separate expense. They were double dipping right? Should have either not listed out the interest and real estate taxes separately or subtracted those amounts from the total maintenance payments? Or is there a weird quirk favoring rich people with co-ops that lets them take both expenses? Most information I find is related to taking said expenses when it's your personal residence which I'm fine with, I just want to make sure I'm not misunderstanding the implications when it's a rental property.

# ¿ May 9, 2024 20:12

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# ¿ May 10, 2024 06:25

Epi Lepi: Oct 29, 2009; You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

Ungratek posted:

Are the mortgage interest and real estate taxes covered in the maintenance fee expense? If so, then it�s a double dip. If not, then I think it would be ok (unless there�s something else I�m missing).

Co-ops usually issue a letter stating that every tenant shareholder is entitled to a mortgage interest and/or real estate tax deduction equal to the shares they own multiplied by X which is listed in the letter. The actual mortgage interest and real estate taxes are paid by the Co-op itself which is funded by each tenant-shareholders regular maintenance & assessment payments.

The only thing that trips me up is that Section 216 allows tenant-shareholders to deduct said interest and real estate taxes as an itemized deduction for their primary residence even though the corporation is deducting those expenses as well on it's own corporate return. So there's double dipping built into the system but I'm pretty sure that should just be a primary residence quirk.

# ¿ May 9, 2024 22:17

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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