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Leviathan Song posted:That thing sucks. Someone with access to the raw withholding formulas needs to make a better one that doesn't assume you're midyear and gives you some level of sensitivity analysis. Also it sucks that my state bases withholding on federal w-4. I'm always trying to minimize federal return without getting a state penalty without access to the actual formulas used. There is obviously math behind it. Give me the drat formula. Yeah, I'm not a fan either. It tries to give you exact withholding that will make this year work out but if you don't adjust it next year it will screw up next year.
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Mar 19, 2017 14:05
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Had the annoying realization today that 2% of AGI is a lot more now that we are MFJ.
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Mar 27, 2017 03:20
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My new employer withheld taxes for the wrong state for my first couple of paychecks last year. My tax form for that state pretty much just says I had zero in state income so it should all be refunded. This seems easy to abuse (commit tax fraud) so do the states ever argue it? Or would they only care if I tried to get a major amount of withholding reversed?
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Mar 31, 2017 20:34
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quote:In a pre-emptive move against accounting maneuvers in high-tax states such as New York and California, the bill prohibits taxpayers from prepaying next year’s state and local income taxes, in order to deduct them from 2017 taxes. That form of tax planning would have allowed taxpayers to benefit more from the full state and local deduction this year before it is capped next year.
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Dec 18, 2017 03:42
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Heh, we came out to exactly zero.
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Dec 21, 2017 19:06
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It also calculated our state income taxes wrong by $2000, which throws off the SALT calculation. It’s going to be very hard for married couples to itemize now. Where do you get $24,000 in deductions? Tons of mortgage interest plus hitting the max for SALT? smackfu fucked around with this message at 16:01 on Dec 22, 2017 |
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Dec 22, 2017 15:57
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Jury duty pay really feels like it should be tax exempt.
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Feb 5, 2018 14:04
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I had to reverse my 2017 Roth IRA contribution due to the income limits. I got a check back from Vanguard for $6100 ($600 of profit and $5500 that I put in.) Will Vanguard send me some tax form for that $600 income?
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Feb 18, 2018 20:55
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smackfu posted:I had to reverse my 2017 Roth IRA contribution due to the income limits. I got a check back from Vanguard for $6100 ($600 of profit and $5500 that I put in.) Will Vanguard send me some tax form for that $600 income? Apparently the answer is “yes, in early 2019 but saying it was previous years income so you need to claim it now without having a form.”
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Feb 20, 2018 02:22
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Here’s the detailed explanation: https://www.irs.gov/publications/p590a#en_US_2017_publink1000230355quote:Scholarship and fellowship payments are compensation for IRA purposes only if shown in box 1 of Form W-2.
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Apr 20, 2018 18:48
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Are taxes going to be simpler for preparers now that unreimbursed business expenses don’t count for anything? Or harder because clients are going to flip out?
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Aug 27, 2018 14:17
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Small White Dragon posted:I just saw draft versions of the 2018 forms are available. Kind of interesting. Sure is. Front of page is info about you and dependents, and signature lines. No amounts. Back of page is the gross income, deductions and taxes. Only 23 lines total. Only half a sheet too? Guess they were pushing hard for that “taxes on a postcard thing.” https://www.irs.gov/pub/irs-dft/f1040--dft.pdf
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Nov 26, 2018 02:13
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It fees weird because you basically just file a return that says “no, there is no income in your state so no taxes due!” It feels like there should be some greater scrutiny of it.
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Dec 8, 2018 22:45
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Residency Evil posted:Between the $30 I paid for Turbotax, $40 for a second state, and $40 to file two states, it seems like a lot to pay. Well you could save $39 by printing and mailing in the state forms. Or in some states you can do online filing and just re-enter the numbers.
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Feb 2, 2019 16:24
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The main advantage of the software is that it can ask questions that will make it clear you need to add another form. The paper version doesn’t have anything like that, does it?
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Feb 3, 2019 02:56
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Last year, my employer incorrectly withheld some money in the wrong state. We filed two tax refunds and got the $400 in withheld taxes back from NY, but still had to pay taxes on the same income to CT. So it was mainly a wash. Now I'm doing our taxes and the tax program wants to treat that $400 from NY as 2018 income. There doesn't seem to be any place to offset it with the amount we owed and paid to CT. Does this make sense if you think it through? Or is this just a weird edge case where we get a little screwed?
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Feb 10, 2019 20:10
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What do tax pros think when they get a 1099-R with the PJ code on it? (P meaning this 2018 form has 2017 taxable income.) Seems like it opens a can of worms.
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Feb 17, 2019 14:48
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Yeah, not sure why an employer wouldn’t withhold on anything they pay you. Usually they over withhold to be honest.
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Jul 21, 2019 19:14
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I appreciate that FreeTaxUSA lets you enable two factor via an authenticator app and then explicitly choose to disable email / SMS as a backup. A lot of big bank / brokerage sites don’t even allow that.
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Jan 26, 2020 19:25
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Now that the IRS gets cost basis for stocks, do they still send out CP2000 letters that assume your cost basis was $0 if you leave a transaction off your return?
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Feb 8, 2020 15:21
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Taxes are still due on July 15th right?
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Jun 14, 2020 23:26
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heavy liquid posted:I have a tax question, hopefully I'm asking in the right place and hopefully someone knows an answer: Estate tax is owed by the estate, aka the legal entity distributing the inheritance. It does not apply to the inheritors.
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Jul 9, 2020 12:41
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I think my wife’s company forgot to check the “retirement plan” box on her W-2. It was checked last year plus she has a pension and a 401k so pretty sure it should be checked. Does this box just affect deductible IRAs? She didn’t get a corrected W-2 and you would think someone would have noticed by now.
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Jul 14, 2020 12:34
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Some more info on interest payments from the IRS. https://www.accountingtoday.com/news/irs-plans-to-send-13-9m-taxpayers-extra-interest-on-their-tax-refunds-amid-coronavirus quote:The Internal Revenue Service and the Treasury Department plan to send interest payments averaging $18 to approximately 13.9 million individual taxpayers who filed their 2019 federal income tax returns on time and are receiving tax refunds.
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Aug 20, 2020 12:26
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H110Hawk posted:I was surprised that they just gave me a pdf of the letter right on the submission results page. Now to figure out the state forms, w2, w3, and whatever payment form(s) I need to use. Is that the form where they give you the choice of getting it online or mailed, and mailed is like 2-4 weeks?
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Dec 27, 2020 16:51
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My wife and I are executors for an estate with rental income. It looks like form 1041 isn’t generally even available in online tax programs. We’ve always done our own taxes but do the professionals here think we might be crossing the line to pay someone? How about if we add in a trust?
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Jan 3, 2021 16:19
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I think Vanguard calls it an exchange but yes it’s just a sale. In other news, apparently we can deduct some charitable donations again, and I missed it when it happened last year, so that was a nice surprise. https://www.irs.gov/newsroom/special-300-tax-deduction-helps-most-people-give-to-charity-this-year-even-if-they-dont-itemize
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Feb 3, 2021 13:11
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Freetaxusa.com works fine too, don’t think there are income limits. I personally like it because it is always just one click to see the filled out 1040 and other forms. They charge for state but I think everyone does and often states have some free filing option. (My only complaint is that the “path” to entering a back door Roth happens in a weird order and makes it look like you have to pay taxes on it for a while.)
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Feb 8, 2021 18:52
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How did we end up that the first real line on the 1040 after personal info is this:quote:At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?
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Feb 22, 2021 00:00
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Thesaurus posted:How am I supposed to approach reviewing draft returns that a CPA has prepared for me? Obviously most people just go, “looks good to me.” Or “I see I forgot to mention something to you.” Don’t really think it’s about checking their work.
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Mar 18, 2021 13:09
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Agronox posted:Taxpayer (me) drew salary from a New York employer for the entirety of 2020 but does not live there, and in fact hadn't set foot in the state all year. Hmm, I work for a NY company but work virtually from Connecticut (even pre-pandemic) and I don’t have anything to do with NY state taxes. The only time I had to deal with them at all was when they incorrectly withheld NY taxes when I first started and I had to file to get them back. What’s different about this situation? Or am I supposed to be filing a NY tax return for some reason? Edit: I guess the OP normally working in NY is the difference. smackfu fucked around with this message at 21:25 on Apr 24, 2021 |
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Apr 24, 2021 21:21
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Ancillary Character posted:So it's possible that you could have been required to file a NY tax return this entire time. Perhaps they'll come knocking one day demanding back taxes, and maybe then you can see if you want to be the test case to challenge the constitutionality of it. Definitely not going to pull on this thread any more!
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Apr 26, 2021 13:31
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I thought you gave them a date to make the payment when you filed the tax return.
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May 13, 2021 22:34
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If a company screws up 401K contributions, like that they don’t make one they were contractually obligated to, and it isn’t figured out until a year later, can they give back dated contributions?
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Jul 23, 2021 14:02
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It’s in Build Back Better which hasn’t passed yet.
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Nov 7, 2021 14:42
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Huh, I wonder if that law is one reason Venmo added a toggle for if a payment is a business transaction.
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Jan 9, 2022 01:37
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If you just have a large amount of W2 income, is there anything you can do to reduce paying taxes on that besides maxing out your 401K?
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Feb 3, 2022 00:32
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Covok posted:Too vague of a question and not enough information on your situation to really give a detailed answer. But, to give an equally vague answer, look into what pre-tax options your employer provides. Also, see if you can contribute to an IRA as there are income limitations on deduction IRAs. Otherwise, you probably need someone to do a general deep dive into your return. Or, at least a cursory glance. It's pretty hard to give advice, in my experience, without knowing someone's situation. I mean, heck, the pre-tax may not even be worth it depending on your income level and how you expect your retirement to go, if ROTHs are even applicable to your situation. Yeah, fair enough. Should see a tax person. I’ve always done my own tax returns but I guess this crosses into tax planning which isn’t as straightforward.
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Feb 3, 2022 00:50
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One perspective is that most of the source data is coming from online apps nowadays, so you are already exposed to those threats even if you use offline tax prep software.
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Feb 5, 2022 13:45
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The state taxes are the not fun part, since they are partial year returns and the consumer tax software often doesn’t support that.
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Apr 12, 2022 18:35
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