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H110Hawk posted: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. It’s no big deal; it is logical to see it that way.
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Jan 28, 2020 05:18
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Just double check that the funds went into your Roth. I’ve had multiple clients try to do the same thing as you but that the transfer of the traditional 401k actually went into a traditional IRA, not a Roth. So I’m basically asking “did you try turning off your computer and turning it on again?” but for taxes. If it went to a Roth the accountant can just recode the 1099-R with “2” instead of “G” and make it taxable. Secondly, it’s not a 10% penalty situation to convert.
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Feb 12, 2020 14:09
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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 was definitely an experience having my normal April filers wait the extra 3 months, and my October filers choosing this as the first year that they will file on time.
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Jul 15, 2020 03:05
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Ungratek posted:Did he not say it was a non refundable credit? Yes, and it is correct. The withholding is a refundable credit and is taken into account after the non-refundable credits are taken into account. So the solar credit takes the tax to zero and the withholdings are refunded.
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Aug 12, 2020 00:07
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You should absolutely, 100% fight your payroll department on this.
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Oct 27, 2020 15:01
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^^ Is there another person you work with in the same situation? I would ask them who they use and then try to see if that professional is taking more clients.Hadlock posted:I'm not expecting an answer at this point, just complaining that us personal income tax law is ridiculous enough that the reply to my question would be "pound sand, pay me bitch" rather than "yep, that's roughly how it's supposed to work" for a pretty foundational small business start up question I’m a CPA with 15 years of experience. I’ve read your post twice. I can’t figure out what you’re even trying to do here. You want to invest $45k in a business to save $10k in taxes?
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Feb 24, 2021 00:48
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Duxwig posted:The requirements basically are make over $16,000, get $480 credit (minus some foreign $$ exceptions). Hello fellow Wisconsinite. All I would say is go back to your data entry on the federal screen and make sure that you have coded your W-2s to you and your spouse’s W-2s to your spouse. Other than that, if H&R Block software can’t calculate that correctly, I can’t imagine what else it’s loving up.
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Feb 28, 2021 15:51
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FateFree posted:So I adjusted my w4 to take an additional 150 federal withholdings at my w2 job, expecting my salaried paycheck to be 150 dollars less than the previous. Except it was about 400 less, even though the gross pay was the same. I compared them line by line and the only difference was the 150 withholding, but somehow they withheld 400 more in the total (even though it says 150 in the additional column). Is this a mistake or am I missing something? If your previous W-4 was done before 2020 then your change also moved you to the new withholding system.
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Mar 28, 2021 02:38
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Agronox posted:There's two ways that NYS can go about levying their tax: This is fairly standard in nonresident/part year resident taxation, not just NY. The mechanisms and specifics are usually different but that’s the underlying theory.
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Apr 21, 2021 15:26
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Double Deux posted:Two questions for the thread: 1. I am not yet aware of one, except possibly requesting transcripts online. 2. No, you should wait for the IRS to screw up the refund and then file an amended return.
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Jun 23, 2021 23:05
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As H110 said, the 1099 is about trying to screw the other party by making them pay taxes on the excess money they took (and perhaps generating a partnership deduction for it). When you issue a 1099 to somebody, you send a copy to the IRS so that they have that information too, and they have a computer program that matches 1099s in their system against the tax return filed that generates notices. Doing that in retaliation would complicate the fact pattern for the lawsuit and I can't imagine any lawyer thinking that is a good idea.
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Aug 2, 2021 19:46
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sparkmaster posted:I have a little side gig, and I elected to defer some of my SS tax from 2020 and pay in 2021 and 2022. Well it's getting to be about that time to make the first payment. How precisely do I go about that? I've never used EFTPS before (always just paid on my 1040 return), and directpay doesn't have an option that precisely says deferred SS taxes. Can I use DirectPay to pay a balence due on my 1040 or do I have to go through the hassle of getting a EFTPS account just to pay these deferred taxes? I only did this with one client (who has a business so he can pay by EFTPS) so I'm not as well-versed on this topic as I might otherwise be. Did you receive an IRS reminder letter (CP256V) stating that you have the obligation to make the payment? If so, is there an address given on the letter to make the payment?
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Oct 27, 2021 21:07
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sparkmaster posted:I have not, but I have moved around a bit over the past year and it's possible one was sent but I have not received. Would I be able to see letters sent on my tax transcript? The transcript would note that it was sent but not the content, I don’t think. My client received the letter but I don’t have a copy of it offhand; it was several months ago so I don’t remember the entirety of it. I’ll see if I can dig up a letter.
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Oct 27, 2021 21:54
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Epi Lepi posted:The IRS has taken the step recently where you may be able to view copies of letters sent to you on your online account. So maybe try to make one of those and if you’re lucky enough to get in there you may be lucky enough to have a copy of the letter. That is a nice upgrade to the system; thanks for letting me know about that. sparkmaster posted:Can I use DirectPay to pay a balence due on my 1040 or do I have to go through the hassle of getting a EFTPS account just to pay these deferred taxes? I was doing a continuing education seminar today and the topic came up. Direct pay does not seem to be set up for this. If you want to send a check, according to the person doing the seminar, you would send it to the address where you would send your payment based on your address (look at the last page of https://www.irs.gov/pub/irs-pdf/i1040gi.pdf). Make sure your check states that it is for deferred social security taxes on your social security number. Do not include a payment for anything else on the check and cross your fingers that everything gets applied correctly. There is no form or voucher for this payment. Given the state of both the IRS and the USPS these days, I'd be a bit nervous mailing a check without an IRS standard voucher hoping that it gets applied correctly, but that seems to be the option.
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Oct 29, 2021 17:40
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KOTEX GOD OF BLOOD posted:Just tried to pay through EFTPS over the phone via the EFTPS customer service line, and had the most Kafkaesque experience of my life. They just read out questions to you from the form they have to fill and have no idea what any of it means. I have no idea for sure, but I found out last week that the IRS started mailing vouchers to pay the deferred social security tax. So if you haven’t made the payment yet, you might want to look in the mail.
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Dec 27, 2021 16:26
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Peyote Panda posted:The IP PINs are generated at the start of the year and the application for one can take at least 120 days (I think the current average right now is actually 210 days) so applying for one now won't provide the protection until next year. If this is an on-going issue it's still a good idea, you'd just want to warn your client that it won't provide an IP PIN for this year. You can apply online for an IP PIN and get the number pretty much immediately, if you haven’t yet been a victim of identity theft but wish to protect yourself. I did that last year because I expected that a tax document would be delayed and I wanted to prevent someone from filing for me early.
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Jan 20, 2022 15:55
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Toebone posted:My wife and I usually always file jointly, but circumstances changed a little this year and I'm wondering if filing separately might be advantageous. She's been unemployed since the start of the pandemic and received $15k unemployment assistance in 2021; just ~$500 was withheld for federal taxes. I've been receiving my regular salary. I think you’re missing at least something. Having one spouse with that little income and one spouse working usually means that filing jointly saves a lot of income tax. You mention that you take the standard deduction jointly but are itemizing when you’re doing the separate returns. That seems odd. Are you taking the same deductions on both returns or are you splitting them up based on who paid them? Are you in a community property state?
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Jan 26, 2022 18:27
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Toebone posted:My itemized deductions (mostly medical expenses, property taxes, mortgage interest, all in my name) add up to just under the $24k standard deduction. No deductions on my wife's side, but her income is low enough that it doesn't really matter. The problem is somewhere in there. If you take itemized, so does your wife when you file separate. So she has $15k in income but next to nothing in deductions so she’d have a tax liability around $1600 or something against $500 paid in. She wouldn’t get everything refunded. GhostofJohnMuir posted:Should I go ahead and file an amended return now? FreeTax USA's FAQ on amended returns suggest sitting tight for a while and only filing the 1040x after the initial return is processed because the IRS may fix the issue by referencing their own records or reaching out for more information. There is no reason to rush to amend. Not just the IRS not yet processing your return, but in case there are other “surprises” out there.
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Jan 27, 2022 14:59
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KOTEX GOD OF BLOOD posted:This is not strictly an income tax question but I figured people in here would know. Has the IRS really not posted any new Form 990s online since TY2019? That seems pretty loving bad for 501c transparency. The 2021 990 blank can be found at https://www.irs.gov/pub/irs-pdf/f990.pdf
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Jan 28, 2022 02:01
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H110Hawk posted:He means the filled and filed one's from charities. Ahh, gotcha.
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Jan 28, 2022 03:14
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Omne posted:In 2019, I bought some shares in the startup I worked at. We had an exit event in December 2020, and our shares were automatically sold for us. Paid the LCTG on them with my 2020 taxes, easy peasy. The 1099-B probably reports you getting your $53 as of the date you actually received it in 2021, right? I don't think amending the 2020 return would be appropriate given that you had no access to such income in 2020.
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Feb 1, 2022 04:38
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Deviant posted:work needs to get off its duff and send me my stupid schedule k-1 so i can make with the government paying now please. K-1s this year are probably going to be later than normal. Expect to file an extension and be grateful if you are able to file by 4/18 this year.
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Feb 3, 2022 17:09
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calbruc posted:Quoting for new page. Can I eFile if I have form 8958 (Allocation of Tax Amounts Between Certain Individuals in Community Property States)? Everything seems to be pointing to printing and sending in, which my assumption is will delay any return for months. The IRS supports e-filing of the form. If the software you use does not support 8958, then your options are to print and mail in (not the greatest idea given the state of the IRS and the USPS) or to find a different piece of software that supports e-filing the form.
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Feb 3, 2022 18:37
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MadDogMike posted:So they require those for everybody not just the companies with international income? Wish my drat update class had notified me. Thankfully I’ve only barely dipped my toe into business entity returns so at least I know before I did any partnership or S-Corp returns. The IRS revised the instructions on 1/18 (not affecting the PDF copy) here: https://www.irs.gov/forms-pubs/changes-to-the-2021-partnership-instructions-for-schedules-k-2-and-k-3-form-1065. I don't think it's the fault of your update class. quote:Question for folks out here; I’ve got somebody who received a 1099-INT after we filed (a piddly little amount from IRS for the late payment for 2020). I punched it in and confirmed it has literally no impact on the bottom line of their 1040. Do we need to actually bother sending an amendment for this? I was under the impression the IRS wouldn’t appreciate the extra work for zero impact and they probably won’t even send a letter demanding zero dollars payment. I wouldn't.
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Feb 4, 2022 01:25
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Omne posted:I actually received the money in April 2021, but that date is not included in the 1099-B; the only date is in box 1c and it's the initial 12/2020 date. That's a weird reporting, for sure. But I suppose, if $53 is the actual dollar amount then it's not like it's a big deal either way. Kefit posted:My intuition is that there's nothing I can really do about this, at least nothing that would be worth the time and money involved. But if anyone thinks differently, let me know. Taxwise, no. Unemployment is based on the year of the benefit payment. If it makes you feel any better (it won't) many states try to hamstring their unemployment divisions so that they pay out less benefits, keeping the stated unemployment rates and the employer taxes low. Maybe complain to your state-level elected officials? MadDogMike posted:Kind of prevalent this time of year, had one client who thought they would be missing a 1099-R except the postman literally pulled up with it right before they left for their appointment. Yep. I had a client appointment this morning, and after the meeting the client went home and found a tax form in his mailbox.
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Feb 4, 2022 18:33
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Covok posted:I don't file immediately for this reason. I always hold the returns for additional documents even post review, especially this early. Saved my rear end more than once. Usually just a day or two. No one notices since it doesn't noticeably delay a refund. Yeah, I do the exact same thing. Unless there's a deadline looming, I let returns age a day or two before submitting. Not more than three days, though, don't worry IRS lurkers.
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Feb 4, 2022 18:43
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Skinnymansbeerbelly posted:Some rando forum posts suggest that it might be excluded under something called the General Welfare doctrine, but all the references I can find to that are about payments from Indian & Tribal governments, not States. It’s probably non-taxable due to being limited to lower-income taxpayers. The IRS hasn’t said anything, one way or the other, but they also have bigger fish to fry.
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Feb 9, 2022 01:17
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H110Hawk posted:I think everything else is nickels and dimes here and there - I'm not space-cadet forgetting some major source of itemized deductions here right? Probably not. That looks like the deductions that most of my upper-middle class clients have. Medical deductions are available, but often pointless because you have to clear 7.5% of AGI before you can count anything, and unless a tornado blew up your house or you got scammed by the nephew of Bernie Madoff you're probably not missing anything. If the charitable giving is check/credit card you can consider setting up a donor advised fund to frontload several years of charitable giving if you can afford it (you'd want at least $15k, maybe $25k to make the hassle worthwhile). You itemize in one year and then spend down the fund with future year donations. If you own shares of stocks or mutual funds in a non-retirement account, that would be even better as there are special opportunities there as well.
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Mar 10, 2022 03:08
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H110Hawk posted:Thanks. This might be the year we do that. I've looked at the fidelity one (which is what we would use) in the past. Never really had the cash around to properly fund it. For the taxable stocks stuff do you just donate the equity / mutual fund directly instead of realizing the gain then donating? Does that let you deduct the fmv at donation time without ever paying taxes on the gain? Yeah, you identified the main reason most people can't do this strategy. A lot of people get to $3,000 or so a year in donations by having room in their weekly/monthly budget, but coming up with the cash to set up the DAF would be difficult if not impossible. Your understanding on the taxable/non-retirement stocks is correct -- you skip out on paying taxes on the gain, and you get to deduct the fair market value of the stock, so long as you meet the long-term holding period. So look for one with a lot of gains, where you meet the long-term holding period, and you've cut down your tax bill. (Don't donate a loss stock; if you had that situation you would want to sell the stock before donating the proceeds)
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Mar 10, 2022 15:56
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QuarkJets posted:I'm getting a little confused while working through Publication 936. I sold a home that was under the mortgage interest cap, but then I bought a home that is above the mortgage interest cap. I'm trying to determine how much of my interest payments I'm allowed to deduct. I would have thought "all of the interest on the first home, plus X% of the interest on the second home" but this publication has me doing something else. If you sold the home prior to buying the new home and you only owned one home at any given time, I believe you would deduct the first home interest in full and then only bother with the new home interest on the worksheet. Admittedly, I live in an area where it's relatively rare to have a $750,000 home so it's been a while since I dealt with this particular situation.
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Mar 14, 2022 23:48
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Pollyanna posted:
Whichever investment company you use for your Roth IRA should do the math for you and refund the right amount - just tell them you overcontributed by $X and they'll refund the right amount. Whether you do a refund or a recharacterization, it should be pretty quick and straightforward. This is a frequent issue. Whether to refund or recharacterize is a bit complicated. The best situation for recharacterizing is if you have no, or very low, traditional IRA balances right now. In that case, you can do the recharacterization and then convert it to a Roth (the "backdoor" Roth strategy). If you have a large traditional balance the decision is much less straightforward. If you're going to be near the Roth IRA limits in the future, you are probably better off waiting until you're preparing your taxes to make your contribution, yes.
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Mar 18, 2022 00:42
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I filled out my 2021 Roth IRA contribution in April of that year, and I ended up making too much money in 2021 and went over the limit. That sucks. Apparently I have to figure out how to withdraw the right amount of money by mid-April. Apparently my options are to either withdraw that money straight from my Roth, or recharacterize the contribution to Traditional. Which one is easier to get done by the deadline? And/or which one should I do?
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Deviant posted:So, I finally got my K-1 from my workplace. FreeTaxUSA is asking for the numerical boxes on the form, which are all blank. I don't know anything about how FreeTaxUSA data entry works, but did you try putting the number and the code in the box? As in, if box 11 has "A" and 300 you put "11A" in the numerical box? Covok posted:You know what? I'll post my question here. Easier than trying to get CS support on the line. I have a client who won a gender discrimination case. They were the victim. Plantiff is entitled to their contingent legal fees under that 2004 bill as an above the line deduction. Anyone know where to place that in Ultratax CS 2021? Try 1040 Adjustments>OtherAdj screen, Other Adjustments statement box.
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Mar 22, 2022 14:52
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Epi Lepi posted:Not sure what the lesson learned here is, just wanted to vent a little. Venting is good. If you want a lesson, never call the client so quickly when you don’t understand how you made your mistake. Just let the return sit a day and look at it with fresher eyes. I’m personally very strict on my processes with running tax estimates, but would concede that implementing good processes in a bigger firm generally wouldn’t work because the higher-ups wouldn’t follow them anyway.
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Apr 3, 2022 15:03
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Epitope posted:I underpaid, and am trying to estimate the penalty. Form 2210 is hilariously convoluted, even for a tax form. Is this saying I owe 3% late fee, but if it's still outstanding the next quarter it becomes 6% then 9% then 12%? You'll notice that on each area of figuring the penalty you multiply everything by the number of days divided by 365, and then multiply it by 3%. The math might seem weird but it's an annualized 3% rate, as if it were interest. The IRS used to have a simplified method of calculating the penalty on Form 2210 but they seem to have gotten rid of it. If you aren't using an alternative method to calculate your penalty, you could let the IRS figure out the penalty and bill you for it. They'll add a little interest for what you didn't pay by 4/18, but unless you owe a lot of money the interest isn't going to be that much.
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Apr 8, 2022 16:13
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Covok posted:It's amazing how we are paying over 20,000 a year for Ultratax but four days before the deadline it slows down to a crawl and won't work at all. It seems to be UltraTax's year to poo poo the bed. One year it was Axcess, another it was Lacerte, so I guess we were due. Missing Donut fucked around with this message at 15:39 on Apr 15, 2022 |
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Apr 15, 2022 15:34
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uncloudy day posted:As an aside I asked our accountant at my main job about this and he said he would just leave everything’s off his taxes so as to not trigger an audit. Too bad I don’t have a choice because PayPal already filed a 1099-K form with the IRS... It sounds like you have a better understanding of our tax system than the accountant you talked to. Covok posted:Did the IRS give any relief when those happened? Yes, to both. I think they allowed "late filed" extensions to be considered on time. I don't remember if the IRS was able to prevent notices from going out, though.
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Apr 15, 2022 19:53
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Hadlock posted:What triggers wanting to file "married, filling seperately"? I practice in a community property state, so I see it primarily when a marriage is dissolving and the couple has separated. In non-community property states, I am aware that sometimes income-based student loan payments combined with loan forgiveness provisions can make the tax disadvantages make sense, or certain weird tax interactions and/or state law goofiness can make filing separately the right choice. The only surefire way to tell, that I know of, that separate filing is best is to prepare the return each way and to be very suspicious and double-check the results when separate filing has a tax advantage.
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Apr 17, 2022 05:31
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Covok posted:Now, the threads sleeps until October, as do I. Sleeping until October? LOL. I'm already demoing software and figuring out how I'm changing pricing for next year. Next week I'm going to start putting together my post-season client newsletter. The fun never sets on the Taxish Empire. Hopefully you wake up in time to find a gig in private accounting, though.
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Apr 21, 2022 23:32
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Covok posted:Lol I was mainly joking. I actually have a second round interview at a small local place and am in talks with a recruiter and verizon. It looks like a 50% raise at the moment to go into private. Fingers crossed. That sounds great! MadDogMike posted:Doesn't help there's a bunch of outdated stuff out there on the web; people are still bringing me employee business expense stuff even though Trump dumped that in 2018. Yep, same. I have clients who bring in their car registration renewals because twenty years ago they lived in a state that assessed property taxes on their cars. Tortilla Maker posted:Websites generally seem to paint this as a simple "just write it off!" situation. Aside from what was already said about how if the car is being used for an employee it's not going to do anything for you... never spend a dollar just for the tax deduction because it leaves you worse off.
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Apr 25, 2022 00:49
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Raere posted:My spouse and I want to file an amended return to change our filing status from MFS to MFJ because it turns out we get a bigger refund that way. Nothing else has changed besides the filing status (affecting the amount of tax owed, and therefore the overpayment amount.) What, if anything, do I need to include with the 1040-X when mailing it in? If you electronically filed the original return, electronically file the amendment as well. If the option exists, it is absolutely worth doing. If my memory serves me, the last time I had a MFS>MFJ amendment I enclosed the other spouse's W-2s/1099s with withholding and I might have attached a copy of the other spouse's original return with something like "original - do not process" written in bold and highlighted. Whatever I sent, the IRS processed fine. But that was in the days before electronic filing for amended returns was available, and before the IRS' ability to process paper was decimated in the pandemic.
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May 31, 2022 15:03
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