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Re: Telephone SCAM

I've gotten this type of call as well.
More recently I got another type. The scammer left a message starting with "The IRS is about to begin legal proceedings against you..."
FYI, the IRS never makes first contact with a taxpayer by phone. They always send a letter first.
by damjam
Wed Dec 10, 2014 10:42 am
 
Forum: Personal Consumer Issues
Topic: Telephone SCAM
Replies: 18
Views: 1331

Re: Fly or drive? Not just time vs. money anymore

A non financial consideration: your newborn's health. If in fact your child is less than 6 months old. When friends of mine adopted a newborn from a far away state (Florida to New York), their pediatrician recommended that they drive. Exposing a baby less than 6 months old to a lot of strangers with...
by damjam
Thu Dec 04, 2014 3:40 pm
 
Forum: Personal Consumer Issues
Topic: Fly or drive [with a newborn]?
Replies: 58
Views: 4552

Re: Reaching $1M in Total Assets

The large percentage of your assets in your company's stock is risky. If your company goes South, not only is your job at risk but a substantial share of your savings. If you can suggest you sell this and buy a Total US stock index. Thanks Robert. I have been thinking of selling the company stock a...
by damjam
Sat Apr 05, 2014 11:36 am
 
Forum: Investing - Help with Personal Investments
Topic: Reaching $1M in Total Assets
Replies: 35
Views: 6094

Re: Reaching $1M in Total Assets

The large percentage of your assets in your company's stock is risky. If your company goes South, not only is your job at risk but a substantial share of your savings. If you can suggest you sell this and buy a Total US stock index. Finally. I can't believe this wasn't brought up sooner. Hasn't the...
by damjam
Sat Apr 05, 2014 1:53 am
 
Forum: Investing - Help with Personal Investments
Topic: Reaching $1M in Total Assets
Replies: 35
Views: 6094

Re: Amended Taxes and Payment

If you follow the 1040X you will see that it takes into account any payment or refund made with the original return. (lines 15 & 17)
You received the refund, and now pay accordingly.
I would not wait for the IRS to bill me.
pshonore is correct, you need to file by April 15.
by damjam
Tue Apr 01, 2014 1:02 pm
 
Forum: Personal Finance (Not Investing)
Topic: Amended Taxes and Payment
Replies: 8
Views: 475

Re: Retirement Savings Contribution Credit - offset by distr

Thanks for the response. I see your point if the funds were contributed and withdrawn in the same year, but this is slightly different. The $5k was contributed in a different year from the $2k that was contributed in 2013. I'm not looking for a credit on the $5k that was contributed in a previous y...
by damjam
Sat Mar 29, 2014 3:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: Retirement Savings Contribution Credit - offset by distr.?
Replies: 7
Views: 725

Re: Do you have hardwood or tile in your kitchen?

We remodeled around 2008 and put hardwood everywhere except the bathrooms. We do have a faux sisal rug in the high traffic area between the sink and the range. It's an indoor outdoor rug that can be easily cleaned. Even tile can become worn if not swept/mopped often enough. I also think, depending o...
by damjam
Sat Mar 29, 2014 3:03 pm
 
Forum: Personal Consumer Issues
Topic: Do you have hardwood or tile in your kitchen?
Replies: 57
Views: 3579

Re: Tax Court strikes a blow to IRA Rollovers

If my reading of the above conversation is correct, she will not be able to move both this year unless she can get the current bank to make out at least one of the checks to "New bank as trustee for damjam's friend." Is that correct? What I remember from moving my IRA from a bank to Vangu...
by damjam
Sun Mar 23, 2014 1:44 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax Court strikes a blow to IRA Rollovers
Replies: 103
Views: 13119

Re: Tax Court strikes a blow to IRA Rollovers

IRAs that are likely to be subject to the restriction are transfers from CDs in an IRA to an IRA at another financial institution which can only be accomplished by a check. This is the situation I am concerned about. I have several family friends that have traditional IRAs with various banks invest...
by damjam
Sun Mar 23, 2014 9:36 am
 
Forum: Personal Finance (Not Investing)
Topic: Tax Court strikes a blow to IRA Rollovers
Replies: 103
Views: 13119

Re: You can lead a horse to water...

Thank you for the replies so far. The reason I would like them to work with a financial planner is that they would get information and guidance that isn't contaminated by our friendship and history. I don't know if it would work, but I believe that it's more likely to be listened to and acted upon....
by damjam
Thu Mar 20, 2014 12:20 pm
 
Forum: Personal Finance (Not Investing)
Topic: You can lead a horse to water... [Giving financial advice]
Replies: 50
Views: 5753

Re: Leaving Fidelity

Is there some underlying reason why a Vanguard rep would not act the same as one from Fidelity? Serious question. Does anyone know if they are paid differently? Vanguard reps are paid a salary - no commissions. How are Fidelity reps paid? I have nothing against Fidelity or those who use it. I just ...
by damjam
Thu Mar 20, 2014 10:50 am
 
Forum: Personal Finance (Not Investing)
Topic: Leaving Fidelity
Replies: 35
Views: 3338

Re: Friend possibly victim of real estate dual agency

Plus, her agent didn't put a contingency in this agreement that my friend and her husband need to procure a place to move to It might blow up the deal since the sellers did not state their desire for this contingency earlier, but if they have not signed the sales contract yet they can probably stil...
by damjam
Thu Mar 20, 2014 10:38 am
 
Forum: Personal Finance (Not Investing)
Topic: Friend possibly victim of real estate dual agency
Replies: 27
Views: 2785

Re: Leaving Fidelity

Greatness wrote:... All in all, I am sure the Bogle family is doing as well or better than then Johnson family. ...


Correct me if I am wrong, but it is my understanding that the Johnson family counts their wealth in the billions and the Bogles in the, at most, tens of millions. Big difference to me.
by damjam
Thu Mar 20, 2014 10:23 am
 
Forum: Personal Finance (Not Investing)
Topic: Leaving Fidelity
Replies: 35
Views: 3338

Re: Friend possibly victim of real estate dual agency

From NYS disclosure form : A seller’s agent has, with-out limitation, the following fiduciary duties to the seller: reasonable care, undivided loyalty, confidentiality, full disclosure, obedience and duty to account. From the same document: A real estate broker may represent both the buyer and selle...
by damjam
Thu Mar 20, 2014 9:19 am
 
Forum: Personal Finance (Not Investing)
Topic: Friend possibly victim of real estate dual agency
Replies: 27
Views: 2785

Re: 1099-div for stock shares sold

From what I could tell from my copy of TaxAct, you do need to create a 1099-B to get this type of transaction onto a 8949. At least with a quick look that is what I saw. I think this is a quirk of the program. If you were doing your return by hand, you would not create a 1099-B, you would simply put...
by damjam
Mon Mar 17, 2014 7:16 am
 
Forum: Personal Finance (Not Investing)
Topic: 1099-div box 8 for stock shares sold
Replies: 13
Views: 725

Re: SSA says Grandmother owes 88K!

Professor Emeritus wrote: But you get effectively nothing from if you are a two earner couple who are both in the system...

I'm not sure what you mean. Two earner couples who pay into SS certainly get benefits from SS. Don't we spend a lot of time on this board discussing proper claiming strategies for just such instances?
by damjam
Thu Mar 13, 2014 12:20 pm
 
Forum: Personal Finance (Not Investing)
Topic: SSA says Grandmother owes 88K!
Replies: 27
Views: 4842

Re: TaxACT AutoFilling Nontaxable part of IRA box for sales

I'm not 100% sure, but it probably depends on the code in box 7 of the 1099Rs and any amount in box 2a, box 5 or box 9b. I do taxes for AARP Tax-Aide, and the software that we use has a similar line. "Nontaxable part of IRA, pension, or annuity (do not include rollovers)" - that would usua...
by damjam
Thu Mar 13, 2014 2:35 am
 
Forum: Personal Finance (Not Investing)
Topic: TaxACT AutoFilling Nontaxable part of IRA box for sales tax?
Replies: 3
Views: 314

Re: Dependent declaration on Federal and State

Thanks. But as it pertains to the education credit specifically, what I have read seems to indicate that he can't take the education credit himself if: 1. He is married filing a separate return. (does not apply) 2. His income exceeds $90,000 (it does not). 3. Someone else is claiming him as a depen...
by damjam
Wed Mar 12, 2014 6:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: Dependent declaration on Federal and State
Replies: 7
Views: 269

Re: Dependent declaration on Federal and State

You can't do what you are proposing. Also, you can not choose to give your son his personal exemption. If a person can be claimed by another they must indicate that on their return. It does not matter whether you claim him or not. Your son must file as someone who can be claimed on another's tax ret...
by damjam
Wed Mar 12, 2014 6:06 pm
 
Forum: Personal Finance (Not Investing)
Topic: Dependent declaration on Federal and State
Replies: 7
Views: 269

Re: Tax question in TaxAct

Is line 28 greater than $153,900?
If so, your exemption is reduced.
See Pub 6251 instructions.
by damjam
Wed Mar 12, 2014 4:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax question in TaxAct
Replies: 10
Views: 449

Re: Will we be ok?

I'm more of a Peter Luger fan myself. Brooklyn location only. :wink: You can try out some scenarios on this calculator: FireCalc . If you faithfully max out your retirement plans you may be able to spend about $100K per year. That estimate includes a lot of assumptions, such as you both have access ...
by damjam
Wed Mar 12, 2014 2:06 pm
 
Forum: Personal Finance (Not Investing)
Topic: Will we be ok?
Replies: 45
Views: 4426

Re: Education tax credit for Spring 2013 class but paid in 2

I am in no way an expert on this, however let me post from Pub 17, page 224: Who Can Claim an Education Credit You may be able to claim an education credit if you, your spouse, or a dependent you claim on your tax return was a student enrolled at or attending an eligible educational institution. The...
by damjam
Tue Mar 11, 2014 12:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: Education tax credit for Spring 2013 class but paid in 2012
Replies: 18
Views: 1084

Re: Education tax credit for Spring 2013 class but paid in 2

Just following up on this. It looks like students can write this off if Box 7 is checked. This indicates that a portion of the tuition was used in the Spring Semester. My CPA indicated that is was okay to try for it, although, the IRS could deny it and I could have to pay interest. This turbo tax a...
by damjam
Tue Mar 11, 2014 11:34 am
 
Forum: Personal Finance (Not Investing)
Topic: Education tax credit for Spring 2013 class but paid in 2012
Replies: 18
Views: 1084

Re: Question about Tax credits

I didn't see this issue addressed (but maybe I missed it): We used the "Energy Credit" a few years ago, and there is a limit on how much you can use. However, two years ago we moved to a different house and we need to do some of the same types of improvements. Our question is, "Does ...
by damjam
Wed Mar 05, 2014 3:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: Question about Tax credits
Replies: 15
Views: 923

Re: 1040 taxes - exemption for stepson

After all was said and done - I tried to show my wife's sister that the $3,900 deduction was only resulting in an actual deduction equal to her tax bracket - which was around 13%. So, the real amount they were fighting over - based upon who got to take this year's dedcuton - was $3,900 x 13% = $507...
by damjam
Wed Mar 05, 2014 2:32 pm
 
Forum: Personal Finance (Not Investing)
Topic: 1040 taxes - exemption for stepson
Replies: 9
Views: 704

Re: Splitting rental and primary home expenses

Your best bet it to look at the TaxAct help.
Look here.

The allocation of expenses between rental and personal must always be done by hand and entered on the appropriate schedule (A or E).
by damjam
Sat Mar 01, 2014 12:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: Splitting rental and primary home expenses
Replies: 1
Views: 191

Re: 1040 taxes - exemption for stepson

he's over 17 - going to be 21 - tnx for the terminology admonishment, correction, and the basic answer of RTFM - I think the sarcasm is uncalled for. The answer you are seeking is greatly dependent on the specific facts of the situation. A general answer to your question is that there are at least ...
by damjam
Sat Mar 01, 2014 2:55 am
 
Forum: Personal Finance (Not Investing)
Topic: 1040 taxes - exemption for stepson
Replies: 9
Views: 704

Re: Question About Claiming Parent as Dependent

Because Mom has taxable income greater than $3,900, you can not claim her as a dependent. Sorry :|

Dividends vs. earned income has no impact. It is dependent on taxable income vs. non taxable income.
by damjam
Wed Feb 26, 2014 8:54 pm
 
Forum: Personal Finance (Not Investing)
Topic: Question About Claiming Parent as Dependent
Replies: 25
Views: 1076

Re: Social Security Cards

When was the last time that you were asked to produce your actual Social Security Card? I haven't seen my actual card in over 65 years. I have been asked for the card several times in the past year. I applied for a replacement and just got the new one in the mail. It's not very official looking. Th...
by damjam
Wed Feb 26, 2014 3:08 am
 
Forum: Personal Consumer Issues
Topic: Social Security Cards
Replies: 33
Views: 1910

Re: Social Security Cards

I volunteer for AARP Tax-Aide. IRS rules require that we confirm the SS number of all clients. Acceptable proof of SS# includes: SS card, Medicare Card with an "A" after the number, SSA-1099 and few other government generated forms. Generally our clients have the SSA-1099 since they almost...
by damjam
Tue Feb 25, 2014 4:30 pm
 
Forum: Personal Consumer Issues
Topic: Social Security Cards
Replies: 33
Views: 1910

Re: KissTrust--trust accounts for the middle class?

"What people are saying in comments at:" is very different from what the organization says. People write junk in comments and everyone knows it. They are being intentionally misleading and probably think it is a cute idea. Come on! Advertising is almost always misleading. The question her...
by damjam
Mon Feb 24, 2014 2:38 am
 
Forum: Personal Finance (Not Investing)
Topic: KissTrust--trust accounts for the middle class?
Replies: 30
Views: 13577

Re: What to do with Annual Bonus

Does it specifically say that it's limited to the income year to date? Because otherwise, if it's 8% of yearly salary per year, you are still getting the maximum match you can. What are the exact terms? I'm curious what to look for when friends and relatives ask me a similar question. From a compan...
by damjam
Sun Feb 23, 2014 7:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: What to do with Annual Bonus
Replies: 12
Views: 948

Re: What to do with Annual Bonus

Ah yes -- I should have made clear that front-loading contributions is only a good idea if the matching does not have monthly limits, only yearly. I don't know specifically of any programs with monthly limits, but I've heard rumors thereof. My spouse is in a plan that matches 50% of 8%. So if the b...
by damjam
Sun Feb 23, 2014 7:27 pm
 
Forum: Personal Finance (Not Investing)
Topic: What to do with Annual Bonus
Replies: 12
Views: 948

Re: What to do with Annual Bonus

It may feel like your sheltering your bonus, but then your just subjecting more of your "regular" pay to the 40% tax. It all comes out the same. I will caution that some 401k matching contributions by employers are based on a per paycheck basis. So if you front load your 401k contributions...
by damjam
Sun Feb 23, 2014 6:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: What to do with Annual Bonus
Replies: 12
Views: 948

Re: How do I attach a statement when filing electronically?

I'm curious. Why do people e-file anyway? Can't afford the cost of a stamp? 1. You get very fast feedback as to whether the return was accepted. 2. You get faster refunds, especially if you go for direct deposit. 3. You don't have to go to the post office (if you like to use certified mail for this).
by damjam
Sun Feb 23, 2014 1:06 pm
 
Forum: Personal Finance (Not Investing)
Topic: How do I attach a statement when filing electronically?
Replies: 29
Views: 2059

Re: How do I attach a statement when filing electronically?

Sorry I don't know about your software. Maybe you should try using Turbo Tax or TaxAct. AFAIK, both automatically allow for a statement to be attached when there is a 1099-R indicating a rollover or recharacterization. In TaxAct it is near the end of the process, after all information has been enter...
by damjam
Sun Feb 23, 2014 12:31 pm
 
Forum: Personal Finance (Not Investing)
Topic: How do I attach a statement when filing electronically?
Replies: 29
Views: 2059

Re: issues concerning 401k rollover

Thanks for the replies, My 401k has pre tax monies, 401k roth monies, and post tax monies. I wanted to transfer this money to a Roth IRA, a regular IRA, and a taxable account, respectfully. or just a Roth IRA and a regular IRA if that made sense. Why would you want to transfer the post tax money to...
by damjam
Sun Feb 23, 2014 12:11 pm
 
Forum: Investing - Theory, News & General
Topic: issues concerning 401k rollover
Replies: 7
Views: 546

Re: I thought I understood backdoor Roth but now I'm confuse

I think it is good to have some tax-diversification (some money in traditional status and some in Roth status). But there is an argument to be made that putting money into Roth at 28% is not the best choice when you could be getting a tax-deferral instead. I see this now and agree that I might be a...
by damjam
Sun Feb 23, 2014 12:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: I thought I understood backdoor Roth but now I'm confused
Replies: 27
Views: 2136

Re: Filing paper stubs with by-mail tax return - why?

Are you talking about W2s and 1099-Rs?
If you are, I have no idea why they are required, but I know they are.
Seems silly considering the IRS should already have this information. At least they should have it by February.
by damjam
Sun Feb 23, 2014 11:18 am
 
Forum: Personal Finance (Not Investing)
Topic: Filing paper stubs with by-mail tax return - why?
Replies: 4
Views: 642

Re: I thought I understood backdoor Roth but now I'm confuse

See the WIKI on Backdoor Roth . Read the caution section, it explains the problem with having additional tIRAs when you want to do backdoor Roths. If you have money in a 401k that does not get factored into the equation for converting a tIRA to a Roth IRA. If you do not wish to do backdoor Roths the...
by damjam
Sat Feb 22, 2014 4:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: I thought I understood backdoor Roth but now I'm confused
Replies: 27
Views: 2136

Re: Retirement account value vs. total contributions

What I think this means is that if an investor doesn't have an low-cost plan and nearly perfect behavior, it's very difficult indeed to save an adequate amount in a 401(k) or equivalent. This is true. But the other important lesson is that you can't expect your returns to rescue you from not saving...
by damjam
Sat Feb 22, 2014 1:15 pm
 
Forum: Investing - Theory, News & General
Topic: Retirement account value vs. total contributions
Replies: 15
Views: 1047

Re: I thought I understood backdoor Roth but now I'm confuse

Makes complete sense. OK. Given the fact that you are in the 28% tax bracket and you are also paying 5% state tax, I would say you want to maximize pre-tax vehicles. It is very possible that most of the money you withdraw in the future will be in a lower bracket than you are now. Of course no one kn...
by damjam
Sat Feb 22, 2014 12:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: I thought I understood backdoor Roth but now I'm confused
Replies: 27
Views: 2136

Re: I thought I understood backdoor Roth but now I'm confuse

Just quickly looking at the information you provided, I'm finding a discrepancy. You say you are in the 28% tax bracket, yet you also say that you are contributing 15% of your income to your 401k. Both can not be true. In order to be in the 28% tax bracket you would need a minimum income of $166,400...
by damjam
Sat Feb 22, 2014 11:32 am
 
Forum: Investing - Help with Personal Investments
Topic: I thought I understood backdoor Roth but now I'm confused
Replies: 27
Views: 2136

Re: I thought I understood backdoor Roth but now I'm confuse

Just for background let me say that a backdoor Roth is when you make a non-deductible contribution to a tIRA and then immediately convert that to a Roth IRA. This is done because the person's income is too high for either taking the deduction for a tIRA contribution or making a Roth IRA contribution...
by damjam
Sat Feb 22, 2014 10:09 am
 
Forum: Investing - Help with Personal Investments
Topic: I thought I understood backdoor Roth but now I'm confused
Replies: 27
Views: 2136

Re: What's the Appropriate Net Worth by % for a 27 year old?

I found Chris Farrell's Your Money Ratios helpful in thinking about this: http://www.amazon.com/Your-Money-Ratios-Financial-Security-ebook/dp/B002YJK5O6/ Basically Farrell has some rules of thumb for each age of what your capital (excluding home equity) should look like to be on track for a retirem...
by damjam
Fri Feb 21, 2014 8:33 am
 
Forum: Personal Finance (Not Investing)
Topic: What's the Appropriate Net Worth by % for a 27 year old?
Replies: 78
Views: 9640

Re: 1st time filing tax return

It is my understanding that you file a return and apply for an ITIN at the same time.
See W-7 application for ITIN instructions.
You will not be able to e-file the return.
by damjam
Thu Feb 20, 2014 1:17 pm
 
Forum: Personal Finance (Not Investing)
Topic: 1st time filing tax return
Replies: 6
Views: 388

Re: Tax report related question ( prepare it by my own or no

If we file it as a joint, because my husband had no income in 2013, only thing we would be filing is a w-2 from my previous job and I earned more than the amount that dont need to be reported so i do know for sure i need to prepare a tax report but I was wondering if i should file it as a joint wit...
by damjam
Wed Feb 19, 2014 6:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax report related question ( prepare it by my own or not)
Replies: 16
Views: 698

Re: IRA vs Roth IRA

The tax bracket question comes up often enough that I wonder why there is no WIKI page to explain it. Or did I just miss it?

Sorry, don't mean to hijack the thread.
by damjam
Wed Feb 19, 2014 6:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: IRA vs Roth IRA
Replies: 13
Views: 754

Re: IRA vs Roth IRA

Try using the Tax Bracket Calculator to figure out your bracket.
Hint: there is no 8% tax bracket.
by damjam
Wed Feb 19, 2014 5:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: IRA vs Roth IRA
Replies: 13
Views: 754

Re: Hitting the Roth Phaseout, Do I understand this correctl

I'm not sure but there may be a waiting period between the time you recharacterize the Roth IRA to a tIRA and when you can reconvert to a Roth IRA. I know the time requirement applies to conversions and rollovers to Roth IRAs, but not sure about your situation. See IRS : Is there a minimum waiting p...
by damjam
Wed Feb 19, 2014 5:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: Hitting the Roth Phaseout, Do I understand this correctly?
Replies: 17
Views: 1111
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