|
I'm single and last year in March 2013 I made $5000 in a short term contracted position with a travel company and from April, May, and June made around $7000 each month in a short term contracted gig with a local tech company. I'm 25 years old and I may still technically be a dependent under my father since I only graduated from a university last year so I am not sure what my requirements are to file taxes this year since, to be honest, I've never done it and just had my fathers accountant take care of it. Any suggestions on what I should do?
|
#
¿
Jan 9, 2014 23:26
|
|
|
|
| # ¿ May 11, 2024 23:01 |
|
|
ThirdPartyView posted:Was this a W-2 or 1099 gig? Also, we'd need to know any other sources of income you have (if any). If you want to try and figure out the filing requirements yourself if you are still being declared a dependent by your father, here you go. Pretty positive it was a W-2 gig since I remember federal taxes being deducted from my monthly deposit. I wish I could check my emails but my account was deactivated since my contract ended. And no other sources of income.
|
|
#
¿
Jan 9, 2014 23:39
|
|
|
ThirdPartyView posted:So yeah, you're going to have to file a return since you made ~$26,000 in wages, even if you're a dependent. Luckily, if they were all W-2 gigs, there's no issue about estimated taxes (as the payroll withholdings should suffice). The only real issue is that, if you're being declared as a dependent, you will be disqualified from most credits so it may behoove you to do a 'test return' both as a dependent and as an independent and if it being independent gives you a more favorable tax status (which, more-likely-than-not, it should), you should probably convince your dad not to claim you as a dependent. Interesting, is there an easy way to obtain the relevant tax forms from my previous employers without having to contact them? Also, I'm currently unemployed and am under my father's health insurance plan until I am 26 so I don't know if it would be beneficial for me to lose my dependent status?
|
|
#
¿
Jan 10, 2014 01:19
|
|
|
Thank you for your help. This will be my first time actually filing any taxes as a single so I am a little intimidated at the process but it will be okay. Just hoping that I won't be owing the IRS any money!
|
|
#
¿
Jan 10, 2014 02:30
|
|
|
Have a basic tax question - hire an accountant or do it on my own? 25 year old with no dependents, living in WA state, single, out of college, and living with my mother. My W2 from a company I did consulting for paid around $35k and took $7k Federal Income Tax, $2k Social Security, and $500 for Medicare. Another company I did consulting for three weeks sent me a 1099-MISC with $5k as non-employee compensation and all blank on Fed Income Tax, Social Security, Medicare etc. Also have an interest income from my local bank.
|
|
#
¿
Feb 14, 2014 01:32
|
|
|
Currently working on my taxes on TurboTax and have a question about how to describe the reason I received my 1099-MISC form. Last year, I was contracted out by a local company for 20 days to act as a liaison between a group of foreigners and the company. My options for the 1099-MISC Form are: 1) I was self-employed (sole proprietor) 2) I was a freelancer or independent contractor 3) I received this money for something not related to my regular line of work. 4) I got this 1099-MISC for another reason I chose option 3 because it is something not related to my regular line of work and I do not plan on doing it again (Although I wouldn't mind doing it again if given the opportunity). Did I choose the right option? I noticed that if I go from one option to another my federal tax return varies by at least $600 or so. Also, when I preview my federal tax return, on line 12: Business income or (loss). Attach Schedule C or C-EZ it shows "-500". Why is that? I don't understand where that number is coming from.
|
|
#
¿
Mar 10, 2014 01:19
|
|
|
AbbiTheDog posted:You'd go #2 (insert Beavis laughing here). You might have screwed up your schedule C if it shows a loss, or gotten carried away with your expenses. May I ask why #2 instead of #3 and what the implications would be if I decide to go with #3? There is a $600+ tax refund difference when I choose #2 as opposed to #3 and I honestly feel that both options are applicable to my situation. Busy Bee fucked around with this message at 01:59 on Mar 11, 2014 |
|
#
¿
Mar 11, 2014 01:49
|
|
|
AbbiTheDog posted:#3 would be things like: Thank you for your help. The 1099 is $5000 and my tax refund that I would originally claim from my W2 drops from $3900 to $3100 if I choose option #3. And with option #2 it drops down from $3900 to $2500. A $1400 difference seems ridiculous but I guess I'm in a different tax bracket due to my W2? Busy Bee fucked around with this message at 22:46 on Mar 11, 2014 |
|
#
¿
Mar 11, 2014 22:34
|
|
|
I'm not so sure on how paying taxes on Roth IRA works but I maxed out my contribution at $5,500 this year but it seemed like they did not ask me anything about it when I was filling out my taxes or did I receive a form for the Roth IRA with the tax information. Is this normal?
|
|
#
¿
Mar 5, 2015 07:34
|
|
|
Madbullogna posted:There's nothing for TT, H&R, or some other random online filing software to really ask you about for your Roth IRA. You were taxed on the money already. You're all set, and won't see any tax forms from your provider until you have a distribution event. When was I taxed on that money already? All I did was take the money from my paycheck -> deposit it into my Roth IRA account. When was it taxed?
|
|
#
¿
Mar 8, 2015 00:02
|
|
|
Finished my taxes through Turbo Tax a few weeks ago and already received my refund. However, I received a small packet in the mail today concerning tax return information for one of the stocks that I own. Seems that its a Schedule K-1 (Form 1065). When I was doing my taxes on Turbo Tax, I logged into my investment account and it transferred all the information over. Should I be worried in the sense that I need to adjust something on my already completed tax forms?
|
|
#
¿
Mar 20, 2015 07:34
|
|
|
After I filed my tax return - I received a corrected consolidated 1099 form from my investment account and just recently received a K-1 document from this company I have stock in. This means that I have to amend my tax returns and mail in the documents, correct? However, I also read that if its below a certain $ amount, the IRS will disregard it. The corrected 1099 form only shows a $100 or so difference in my dividends and the K-1 form that I received says that it may even not be required to file it with the IRS.
|
|
#
¿
Mar 12, 2016 18:58
|
|
|
I've decided that I have to amend my taxes this year because I received an updated 1099 form and a K-1 form just a few days ago. I just want to make sure that I'm not going to receive any more documents from now on so I'm wondering if I should be expecting anything else or has the deadline passed?
|
|
#
¿
Mar 13, 2016 19:41
|
|
|
nm
Busy Bee fucked around with this message at 19:49 on Mar 20, 2016 |
|
#
¿
Mar 20, 2016 19:01
|
|
|
edit
Busy Bee fucked around with this message at 21:35 on Feb 13, 2017 |
|
#
¿
Feb 13, 2017 17:25
|
|
|
I have a few questions about the US gift tax that I'm hoping I can get some clarity on. Based on this link here - https://smartasset.com/retirement/gift-tax-limits - the 2021 annual gift tax exclusion is $15,000. The example below shows if person A was to gift person B $215,000, then $200,000 will be taxable. However, the IRS will consider it as part of the Lifetime Gift Tax Exemption Limit of $11.7m. So am I correct that the $200,000 will not be taxed as IRS will deduct it from Person A's Lifetime Gift Tax Exemption Limit? I am a little confused as further down on the page, there is a section for "How to Calculate the Gift Tax" where it says $150,001 to $250,000 is 32%.
|
|
#
¿
Nov 25, 2021 09:37
|
|
|
edit
Busy Bee fucked around with this message at 08:55 on Nov 27, 2021 |
|
#
¿
Nov 27, 2021 08:49
|
|
|
In continuation of my previous question about the US gift tax, what would the tax implication be if a parent sells a home and deposits the full sale amount to their child's bank account? I'm assuming that the child will now be liable for any taxes from the proceeds of the sale. Would this deposit still be considered a gift even though it is directly from the escrow company?
|
|
#
¿
Nov 29, 2021 20:50
|
|
|
I found the below post in this thread from 2014 when searching for more information regarding FIRPTA. PatMarshall posted:Capital gains are sourced where the recipient lives (except real estate cause of FIRPTA). No withholding should be due. You would provide your payors with form W-8BEN and claim the benefits of the US-AUS tax treaty for reduced withholding on dividends and interest. Looking at the treaty, dividends should be subject to 15% withholding and interest to 10%. Still better than 30%. You should not be required to file a US tax return unless you invest in a passthrough entity (such as a partnership) earning business income in the US. If I understand this correctly. If a US citizens lives and works in Europe and they have an investment account in the US, any capital gains from the US investment account would be taxed according to the policies of said European country. Except for FIRPTA. So if the same US citizen sells a home in the US while living / working in Europe, they will have to adhere to the policies of the IRS?
|
|
#
¿
Dec 3, 2021 09:20
|
|
|
I have a quick question on a foreign mortgage repayment / exchange rate gain for a US citizen who has a foreign mortgage - https://www.ustaxfs.com/foreign-mortgage-repayment-exchange-rate-gain/ My understanding is that this is only applicable when someone remortgages or makes a capital repayment on their mortgage. Essentially when someone refinances their mortgage or decides to make a large repayment on their mortgage. However, when there is a gain due to the exchange rate conversion, is there a threshold that the IRS views as a taxable income?
|
|
#
¿
Dec 12, 2021 21:14
|
|
|
There is something I don't understand if a US citizen gets a foreign mortgage - https://blog.taxadvisorypartnership.com/blog/us-tax/foreign-mortgage-exchange-rate-gain As shown in the below photo, why would the IRS consider the full mortgage amount in 2013 when the individual has already been paying into the mortgage every month since they started the original mortgage back in 2005? Here is a similar example - https://www.andrewmitchel.com/charts/rr_90_79.pdf From what I understand, this would only apply in scenarios where the full mortgage amount was paid as opposed to monthly. My understanding is that the de minims amount is 200 Euros so this issue should rarely apply to monthly repayments of a mortgage. In addition, I believe this exchange rate gain with the IRS would arise when one refinances. For example, 100,000 Euro 10 year mortgage taken out in 2020 when the exchange rate is 1 USD = 1 EUR ($100,000 USD). In 2030, when it's time to refinance the exchange rate is 0.75 USD to 1 EURO and there is 50,000 Euro ($37,500 USD) remaining on the mortgage balance. Would the refinancing of the 50,000 Euro amount result in a foreign exchange rate gain of taking the $50,000 USD (1 USD = 1 EUR back in 2020) to the exchange rate in 2030? So would the $50,000 USD - $37,500 USD = $12,500 be considered a foreign exchange rate gain and be a taxable event? Also, will the foreign exchange rate gain be considered as "Other Income" and eligible as part of the Foreign Earned Income Exclusion? Busy Bee fucked around with this message at 16:53 on Dec 15, 2021 |
|
#
¿
Dec 15, 2021 08:56
|
|
|
If I performed a cash gift transaction this month that I would need to file a form 709 on, do I have to wait until 2023 to file it or can I already do it now?
|
|
#
¿
Jan 15, 2022 15:26
|
|
|
For someone who is over 72, has no annual income, and can start withdrawing from their IRA, do you recommend they do the standard 10% withholding when making the distribution from their account or just do it at 0% and report it during the tax season? My understanding is that the 10% is just a standard guess and it could be lower or higher depending on the persons income, is that correct?
|
|
#
¿
Feb 6, 2022 08:48
|
|
|
What would happen in a situation where a US citizen working and living abroad who meets the Foreign Earned Income Exclusion receives a gift of shares and decides to sell it? The donor of the shares originally bought it many years ago but there has been a significant increase in the price of the stock. I understand that once sold, the recipient of the stock would be responsible for the capital gains made from the original cost basis per share but how would the IRS calculate the income the recipient made? I'm assuming they would consider the foreign income? "For 2022, the thresholds are slightly higher: You pay 0% on long-term capital gains if you have an income of $41,675 or less; 15% if you have an income of $459,750 or less; and 20% if your income exceeds that figure." Recipient's Foreign Income - 50,000 EUR (56,000 USD) (Foreign Earned Income Exclusion for 2022 by the IRS is 112,000 USD) Recipient's long-term capital gains from the gifted shares - 40,000 USD Since the recipient's income is 96,000 USD when considering the foreign income + capital gains, will there be 15% tax paid on the capital gains while allowing the recipient to be below the Foreign Earned Income Exclusion? Or will the foreign income be excluded from the IRS thresholds so that the tax paid on the capital gains would be 0%?
|
|
#
¿
Feb 18, 2022 08:24
|
|
|
Are there any tax implications for starting the Required Minimum Distribution for an IRA if you are over 72 and wanting to withdraw the full amount? I understand that it will be taxed as regular income and could put the withdrawer in a higher bracket but besides that is there a taxable difference between taking the minimum amount vs the full amount of the account?
|
|
#
¿
Jun 12, 2022 06:30
|
|
|
Form 709 for Gift Tax - https://www.irs.gov/pub/irs-pdf/f709.pdf I made two simple cash gifts to my son this year that I would need to fill out and submit a Form 709 for next year. This will be my first Form 709 that I will submit. I'm confused on how I can calculate the tax on Line 4? For example, let's say the amount in Line 3 is an even $100,000. Based on the "Table for Computing Gift Tax" here - https://www.irs.gov/pub/irs-pdf/i709.pdf Would the taxable amount be 28%? Also, would Line 7 be $4,769,800 for 2022? Busy Bee fucked around with this message at 14:23 on Dec 10, 2022 |
|
#
¿
Dec 10, 2022 13:34
|
|
|
MadDogMike posted:No, it’s a tax bracket setup. The amount in column C is the tax on the minimum amount in column A, and then you take the amount of gift over column A and multiply it by the percentage in column D. So, to use your example, the tax on $100,000 is $18,200 (minimum tax on $80,000) + (($100,000 - $80,000) x 28%), or $23,800. You’ll note that’s the minimum tax on the next row down for that reason. Makes sense - thank you for your help. Am I also required to submit any other documents besides Form 709? For example - proof of the wire?
|
|
#
¿
Dec 12, 2022 17:10
|
|
|
On the topic of US expats living abroad and the filing of Form 8938 + FBAR. If one has a foreign account with stocks from their employer (Long Term Incentive Plan, Stock Options etc.), are they required to file a Form 8938 on that account? https://www.irs.gov/businesses/comparison-of-form-8938-and-fbar-requirements I'm guessing it will fall under "Foreign stock or securities held in a financial account at a foreign financial institution - The account itself is subject to reporting, but the contents of the account do not have to be separately reported" I don't understand what they mean by the account itself is subject to reporting but the contents are not. What do I do in this scenario?
|
|
#
¿
Dec 31, 2022 14:09
|
|
|
Gabriel Grub posted:You report the balance of the account in aggregate. You don't also have to report separately foreign holdings within the account. Got it, that makes sense. Would I consider the stocks that have not vested yet as part of the aggregate value or only the ones that I can physically sell and are available?
|
|
#
¿
Dec 31, 2022 17:28
|
|
|
I'm helping my relative (single, no dependents) with his QDRO (qualified domestic relation order) 401k and the required minimum distribution that he will have to start taking. He turns 73 years old this year and his ending balance at the end of 2022 was $65,000. The customer service team at his brokerage was not able to provide us with an RMD because it's a QDRO account so they told us to speak with a tax advisor to figure it out. From what I can see online, is the calculation as simple as: $65,000 / 26.5 = $2,452.83 So essentially around $205 a month? Am I missing something here? Busy Bee fucked around with this message at 23:02 on Jan 23, 2023 |
|
#
¿
Jan 23, 2023 22:55
|
|
|
Is there any benefit to keeping a US address when filing with the IRS? I'm helping my mother with her taxes and she has an address in the US but spends the majority of her time abroad outside the country. I'm assuming that the IRS does not care as long as all taxes are taken care of and the filer is able to receive any documents from the IRS. Seems like there's some good information here - https://www.greenbacktaxservices.com/blog/virtual-mailbox-living-abroad/ Busy Bee fucked around with this message at 11:15 on Jan 26, 2023 |
|
#
¿
Jan 26, 2023 11:13
|
|
|
Quick question on the Gift Tax Form 709. Would a cash gift to my son be categorized under:
Based on what I read online and within the IRS Gift Tax instruction PDF, it will fall under Part 1.
|
|
#
¿
Jan 29, 2023 08:46
|
|
|
edit
Busy Bee fucked around with this message at 14:02 on Jan 30, 2023 |
|
#
¿
Jan 30, 2023 09:45
|
|
|
I'm confused about how SS benefits affects taxes owed for a single filer. For 2022: $20,000 in SS benefits $30,000 in RMD distributions, dividends, and interest payments (No taxes withheld) Total gross income for 2022 is $50,000 but the "combined income" is $40,000. Since this is over the $34,000 limit here - https://www.ssa.gov/benefits/retirement/planner/taxes.html then up to 85% of the SS benefits may be taxable. What is not clear to me is what is the tax that one will be paying as a single filer in the 2022 tax bracket? Will the $30,000 in RMD / Dividends / Interest be taxed at 10% & 12% ($10,275 at 10% and $19,725 at 12%) while 85% of the $20,000 SS benefits will be taxed as well at the 10% & 12% tax rate? (Minus deductions) Busy Bee fucked around with this message at 11:17 on Feb 10, 2023 |
|
#
¿
Feb 10, 2023 10:46
|
|
|
Are there any sort of tax implications when within a few weeks the following happens for one tax payer? 401k rolled over within the same brokerage to a Rollover IRA account (401k holdings are liquidated automatically to cash) Traditional IRA from a different brokerage is rolled over to the same Rollover IRA account that was mentioned above I'm reviewing this and it is not 100% clear to me https://www.irs.gov/retirement-plan...0rolled%20over.
|
|
#
¿
Mar 11, 2023 04:31
|
|
|
mrmcd posted:Yeah I used that last year and it's really good, despite the absolutely abysmal name. Where do you see Fidelity + Turbotax being free - https://www.fidelity.com/go/marketplace/overview I only see $20 off here. Free would be even better 
|
|
#
¿
Mar 14, 2023 00:32
|
|
|
BigHead posted:The in-laws just immigrated to the US, with a green card. They have a foreign government pension that is accumulating in a foreign bank account. Is that the kind of thing they need a CPA to sort out, go to local HR Block in the strip mall, or can they muddle through it with Turbo Tax? I am a complete tax idiot. TurboTax has a section on foreign income. Depending on the amount in the foreign bank account, you may have to file a FBAR with the Treasury. It's a pretty simple process.
|
|
#
¿
Mar 14, 2023 03:13
|
|
|
Edit
Busy Bee fucked around with this message at 07:41 on Mar 29, 2023 |
|
#
¿
Mar 28, 2023 20:59
|
|
|
For the last few years I have been helping my father with his finances. I have a full POA with him and all tax filings in the past were very straight forward and he owed no taxes when I filed for him. However, this year in addition to his monthly SS Benefits, he started his RMD and has a large long term capital gains from stocks sold in Q1 2023 and monthly interest income from recently purchased CDs. I estimate his 2023 tax payment will be around $10,000. He lives in a state with no income tax. His SS or RMD does not have anything withheld and in combination with the capital gains and interest income, my understanding is that we will have to make a payment to the IRS this year. I helped him setup his IRS Online account so this should be fairly straightforward but am I missing anything crucial here? Do I just have to get as close to the estimated tax amount and if it's over he'll get a refund in 2024? From what I've read online, we have already missed the Q1 2023 deadline to pay estimated taxes. But on the other hand, we may not have to pay estimated taxes considering his 2022 tax liability was $0.
|
|
#
¿
Jun 17, 2023 12:55
|
|
|
|
| # ¿ May 11, 2024 23:01 |
|
|
Thank you both. This is all new to me and since I have never been in this situation and I always thought anyone could just pay their taxes due by the filing deadline. However, I am still a little confused about the 90% of the current year tax liability / 100% of last year's taxes meaning. So let's say for the year 2023 he owes $10,000 to the IRS which is fully paid off when he files by the April 2024 deadline. What happens for his 2024 tax year with this 90% / 100% number if he has the same estimated $10,000 estimated taxes owed from selling more stock in that year? In this case, I'm assuming he will have to pay estimated taxes in 2024 and not during the April 2025 filing deadline.
|
|
#
¿
Jun 17, 2023 17:25
|
|