Search found 42 matches

by EATaxGuy
Fri Apr 21, 2017 9:06 am
Forum: Personal Finance (Not Investing)
Topic: CPA or TurboTax
Replies: 18
Views: 1341

Re: CPA or TurboTax

Lots of tax professionals offer a free review of a prior year return. Take one up on the offer. Have a pro review your tax return. If they find nothing then you know for sure TT is good enough for your needs.

Good Luck! :sharebeer
by EATaxGuy
Thu Apr 20, 2017 1:56 pm
Forum: Personal Finance (Not Investing)
Topic: Questions about 529
Replies: 4
Views: 608

Re: Questions about 529

3. In Virginia you can deduct $4,000 per account to which you've contributed from your Virginia income taxes. If you contributed more than that the unused deduction carries over until it is used. If you are over 70 there is no annual limit to the deduction. Virginia grandparents can go buck wiley on...
by EATaxGuy
Tue Apr 18, 2017 12:59 pm
Forum: Personal Finance (Not Investing)
Topic: Did anything surprise you in your 2016 taxes?
Replies: 82
Views: 6155

Re: Did anything surprise you in your 2016 taxes?

Someone had me review their 2015 return and despite having an expensive employer-provided health insurance plan for his entire family, he had paid the ACA shared responsibility (penalty) payment.
:oops:
by EATaxGuy
Tue Apr 18, 2017 7:27 am
Forum: Personal Finance (Not Investing)
Topic: Any Way to Further Reduce Taxes?
Replies: 14
Views: 1189

Re: Any Way to Further Reduce Taxes?

2. If your business expenses exceed revenue (to achieve the OPs goal of lowering taxes) then the increased contributions to a SoloK tied to the business can't materialize. I was aware that your maximum elective contributions for a 401k is $18,000 for all plans. But couldn't your solo 401k provide a...
by EATaxGuy
Mon Apr 17, 2017 1:43 pm
Forum: Personal Finance (Not Investing)
Topic: Any Way to Further Reduce Taxes?
Replies: 14
Views: 1189

Re: Any Way to Further Reduce Taxes?

Ways to reduce income taxes: 1) Make less income. This isn't facetious. See if your employer can provide benefits that aren't directly paid in cash, but offset an expense you'd otherwise have. Paying for parking, onsite child care, insurance coverage, education, etc are examples. In California, som...
by EATaxGuy
Mon Apr 17, 2017 9:09 am
Forum: Personal Finance (Not Investing)
Topic: How to Avoid Tax Refund Being Seized
Replies: 37
Views: 4173

Re: How to Avoid Tax Refund Being Seized

Katietsu wrote:Married filing separately is certainly an option. But sometimes filing joint and completing an injured spouse Form will result in a larger refund. Both options would ideally be compared.

+1
by EATaxGuy
Mon Apr 17, 2017 9:02 am
Forum: Personal Finance (Not Investing)
Topic: is it too late for backdoor roth?
Replies: 7
Views: 493

Re: is it too late for backdoor roth?

You have until midnight tomorrow (April 18) to get the money into the traditional IRA. You can make the conversion to a Roth at any time after that.

File an 8606 after you make the non-deductible contribution. You don't need to amend the 2016 return, just file an 8606.
by EATaxGuy
Mon Apr 17, 2017 8:50 am
Forum: Personal Finance (Not Investing)
Topic: Would you ever rent a house to a family member?
Replies: 21
Views: 1272

Re: Would you ever rent a house to a family member?

Only if you're comfortable making this decision at some point:

Evicting them
or
Not collecting the rent
by EATaxGuy
Sat Apr 15, 2017 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: How to Avoid Tax Refund Being Seized
Replies: 37
Views: 4173

Re: How to Avoid Tax Refund Being Seized

I'm hoping the fact that he's started paying means it won't automatically be taken this time. Hope is wonderful thing, but rarely the best course of action. The IRS will not seize your refund for any old bad debt. There was some federal nexus (guaranteed student loans, possibly) or stiffed child su...
by EATaxGuy
Sat Apr 15, 2017 4:26 pm
Forum: Personal Finance (Not Investing)
Topic: How to Avoid Tax Refund Being Seized
Replies: 37
Views: 4173

Re: How to Avoid Tax Refund Being Seized

taxck33 wrote: (FWIW, I didn't file an injured spouse claim).

Why not? That's what it is for.
by EATaxGuy
Sat Apr 15, 2017 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: Physician using Turbotax, owing 30K so far already...
Replies: 65
Views: 6652

Re: Expert professional advice needed

annual physicals are basically useless. So educate me, for two physician household both normal W2 employees (without corporation, business, home/office etc) what is a CPA or tax professional going to bring to the table. Same thing my annual physical brings to the table. There might not be anything ...
by EATaxGuy
Sat Apr 15, 2017 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: Do you have an umbrella policy?
Replies: 127
Views: 11034

Re: Do you have an umbrella policy?

imabeliever wrote: Of course, even better is not to ever use it

Isn't that true for all insurance? I don't recall ever buying an insurance policy and hoping to get to use it right away. :)
by EATaxGuy
Sat Apr 15, 2017 12:21 pm
Forum: Personal Finance (Not Investing)
Topic: Physician using Turbotax, owing 30K so far already...
Replies: 65
Views: 6652

Re: Expert professional advice needed

So educate me, for two physician household both normal W2 employees (without corporation, business, home/office etc) what is a CPA or tax professional going to bring to the table. Same thing my annual physical brings to the table. There might not be anything wrong, but how do I know unless an exper...
by EATaxGuy
Sat Apr 15, 2017 11:02 am
Forum: Personal Finance (Not Investing)
Topic: Physician using Turbotax, owing 30K so far already...
Replies: 65
Views: 6652

Re: Expert professional advice needed

beezquimby wrote:Dual physician household here, two regular W2 households don't need anything more than turbotax. Just my opinion.

I am an enrolled agent. For my healthcare I don't need anything more than WebMD and access to Canadian drugs on the internet. Just my opinion. :)
by EATaxGuy
Fri Apr 14, 2017 4:53 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question on married filing separately
Replies: 4
Views: 288

Re: Tax question on married filing separately

http://tax.illinois.gov/TaxForms/IncmCurrentYear/Individual/IL-1040-Instr.pdf Page 3: If you filed a joint federal return and one spouse is an Illinois resident while the other spouse is a nonresident or a part-year resident, you may file separate Illinois returns. If you file a joint Illinois retur...
by EATaxGuy
Fri Apr 14, 2017 3:41 pm
Forum: Personal Finance (Not Investing)
Topic: Maxed out roth
Replies: 6
Views: 443

Re: Maxed out roth

Hi I maxed out my Roth IRA. The question is can I open up a CD with a bank and be not penalized. Thanks. And if so what else could I invest in A Roth IRA is a container for investments. A CD is an investment. You can buy a CD as long as you don't try to put it in an IRA container, because your IRA ...
by EATaxGuy
Fri Apr 14, 2017 3:36 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes- Should I take De Minimis Safe Harbor Election?
Replies: 5
Views: 689

Re: Taxes- Should I take Di Minimus Safe Harbor Election?

If you don't need the deduction of expensing items under $2,500 this year, then it would make sense to depreciate them to move some of that deduction out into future years when it would be more valuable. You ALREADY need to keep every receipt. That's how you prove to the IRS that you bought what yo...
by EATaxGuy
Fri Apr 14, 2017 7:31 am
Forum: Personal Finance (Not Investing)
Topic: Turbotax bug or is it me: state tax refund increasing NIIT?
Replies: 15
Views: 930

Re: Turbotax bug or is it me: state tax refund increasing NIIT?

Turbotax took that info (figured out from last year's file) and ended up putting $4790 into 2016 Form 1040, Line 10. TT doesn't explain how it got that number. If you had claimed a state SALES tax deduction instead of the state INCOME tax deduction in 2015, you would not have to include your 2015 s...
by EATaxGuy
Fri Apr 14, 2017 7:26 am
Forum: Personal Finance (Not Investing)
Topic: Taxes- Should I take De Minimis Safe Harbor Election?
Replies: 5
Views: 689

Re: Taxes- Should I take Di Minimus Safe Harbor Election?

If you don't need the deduction of expensing items under $2,500 this year, then it would make sense to depreciate them to move some of that deduction out into future years when it would be more valuable. You ALREADY need to keep every receipt. That's how you prove to the IRS that you bought what you...
by EATaxGuy
Fri Apr 14, 2017 7:19 am
Forum: Personal Finance (Not Investing)
Topic: What constitutes "a lot" of money?
Replies: 79
Views: 10096

Re: What constitutes "a lot" of money?

Anyone who has $1 more than me has a lot of money. :P
by EATaxGuy
Fri Apr 14, 2017 7:17 am
Forum: Personal Finance (Not Investing)
Topic: ROTH IRA Contribution
Replies: 1
Views: 210

Re: ROTH IRA Contribution

W2 box 1 is not 'take home pay". It includes the amount of federal income taxes withheld.
Your Roth IRA contribution for you and your spouse combined will be limited to that amount.
by EATaxGuy
Fri Apr 14, 2017 7:08 am
Forum: Personal Finance (Not Investing)
Topic: Physician using Turbotax, owing 30K so far already...
Replies: 65
Views: 6652

Re: Physician using Turbotax, owing 30K so far already...

1. While it is easy to get fixated on the amount you owe at tax time, this is really a side show. Your tax return is merely reconciling what you've paid with what you owe in total tax. The real number to be watching every year is on line 63 of your form 1040 - your total tax owed. 2. My software has...
by EATaxGuy
Thu Apr 13, 2017 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: Best source for tax advice
Replies: 5
Views: 619

Re: Best source for tax advice

naea.org
by EATaxGuy
Thu Apr 13, 2017 2:12 pm
Forum: Personal Finance (Not Investing)
Topic: ROTH IRA contribution
Replies: 5
Views: 271

Re: ROTH IRA contribution

Third party sick pay is not included as taxable income for federal and state income taxes, but is generally subjected to SS and Medicare taxes.
https://www.irs.gov/publications/p15a/a ... 1000169558

Typically see this reported on the W2 in Box 12 with code J.
by EATaxGuy
Thu Apr 13, 2017 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: Ameriprise fee to transfer account out
Replies: 10
Views: 1221

Re: Ameriprise fee to transfer account out

It will be the best $100 you ever spend. It's anecdote day... There was an AMP advisor occupying my office space prior to me. I used to get a ton of mail for him. Most of it was junk, but one day something came from the state govt that looked important, so I figured I'd be a nice guy and try to fin...
by EATaxGuy
Thu Apr 13, 2017 10:59 am
Forum: Personal Finance (Not Investing)
Topic: How do I know if I am filing my taxes correctly?
Replies: 39
Views: 2701

Re: How do I know if I am filing my taxes correctly?

I'm a diehard DIY when it comes to taxes... I have no problem with people doing their own taxes. Becoming an expert on one's own tax situation is attainable for most people who are willing to roll up their sleeves and do the reading. second opinions are a good thing, though. Use those free reviews....
by EATaxGuy
Thu Apr 13, 2017 10:42 am
Forum: Personal Finance (Not Investing)
Topic: Tax preparer charging for past tax PDF's copies
Replies: 49
Views: 3326

Re: Tax preparer charging for past tax PDF's copies

... I don't know why the other preparer does not e-file... Preparers don't e-file because they don't want to acquire an EFIN. Sometimes they don't even sign the return. And by not e-filing they can use inexpensive, i.e. not "professional" level tax software to prepare the files with minim...
by EATaxGuy
Thu Apr 13, 2017 9:08 am
Forum: Personal Finance (Not Investing)
Topic: How do I know if I am filing my taxes correctly?
Replies: 39
Views: 2701

Re: How do I know if I am filing my taxes correctly?

yukonjack wrote:I didn't think you could deduct fees such as HOA.

You can for rental property, but not for personal use property.
by EATaxGuy
Thu Apr 13, 2017 8:15 am
Forum: Personal Finance (Not Investing)
Topic: How do I know if I am filing my taxes correctly?
Replies: 39
Views: 2701

Re: How do I know if I am filing my taxes correctly?

........... I have yet to review a self-prepared tax return by a landlord (someone with a residential rental property) that I didn't recommend amending. Just before this tax season I amended 2013-2015 for an intelligent, organized pharmaceutical sales executive. He had a rental property and had bee...
by EATaxGuy
Thu Apr 13, 2017 7:29 am
Forum: Personal Finance (Not Investing)
Topic: How do I know if I am filing my taxes correctly?
Replies: 39
Views: 2701

Re: How do I know if I am filing my taxes correctly?

One thing for sure is that one cannot rely on a Paid Preparer … they make mistakes at rates as high or higher than folks who file for themselves. really? Yes, really. See, for example, Table 1 in https://www.irs.gov/pub/irs-soi/07resconfbloom.pdf I saw a more recent study done that showed essential...
by EATaxGuy
Wed Apr 12, 2017 2:08 pm
Forum: Personal Finance (Not Investing)
Topic: Married filing separately and tax fraud
Replies: 18
Views: 1407

Re: Married filing separately and tax fraud

No. Just the offender. The non-offender is worried the IRS will start poking around when the offender doesn't pay, and will discover that the non-offender used to live at that address, still is married to the offender, still gets some mail at that address, still has a joint bank account with the of...
by EATaxGuy
Wed Apr 12, 2017 1:47 pm
Forum: Personal Finance (Not Investing)
Topic: Married filing separately and tax fraud
Replies: 18
Views: 1407

Re: Married filing separately and tax fraud

Pennsylvania. Not a community property state. Stock was owned by spouse A individually in a regular taxable brokerage account. Thanks. This involves some relatives of mine and the non-responsible for the stock spouse is getting panicky after the responsible one told them about the communication the...
by EATaxGuy
Wed Apr 12, 2017 1:39 pm
Forum: Personal Finance (Not Investing)
Topic: Married filing separately and tax fraud
Replies: 18
Views: 1407

Re: Married filing separately and tax fraud

One of the points of using the MFS filing status is to make sure each spouse remains responsible for just their own tax.
by EATaxGuy
Wed Apr 12, 2017 12:49 pm
Forum: Personal Finance (Not Investing)
Topic: Tax preparer charging for past tax PDF's copies
Replies: 49
Views: 3326

Re: Tax preparer charging for past tax PDF's copies

I thought the IRS strongly discouraged mailing of returns filed by a "registered" preparer. Sure, everyone will have a few but if the IRS discovered 98% of John Preparer's returns were mailed in they might have questions. And what happens to rejects? SS# already filed, child claimed by so...
by EATaxGuy
Wed Apr 12, 2017 10:45 am
Forum: Personal Finance (Not Investing)
Topic: tax strategy for side income
Replies: 6
Views: 615

Re: tax strategy for side income

It doesn't matter too much right now. You have started a company (more or less), all it is missing is a name. You are a sole-proprietor. Your sole-proprietorship is what is known as a pass-through entity. You will claim your income and expenses on Schedule C and they will pass through to your form 1...
by EATaxGuy
Wed Apr 12, 2017 10:34 am
Forum: Personal Finance (Not Investing)
Topic: Tax preparer charging for past tax PDF's copies
Replies: 49
Views: 3326

Re: Tax preparer charging for past tax PDF's copies

He said that he would rather we paper file because for him to electronically file means that he has to monitor the filing which means time and effort. It's true. I spend up to 30 seconds per client monitoring their e-filed return status. I don't charge for .pdf files, but I might ask you to wait un...
by EATaxGuy
Tue Apr 11, 2017 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: Extreme Frugality vs Living Life - Where do you draw the line?
Replies: 77
Views: 8268

Re: Extreme Frugality vs Living Life - Where do you draw the line?

Everyone is different. IMO, this is where financial planning can be very useful. One of the most important aspects of planning is determining what the GOAL is, (or goals). And they need to be articulated very specifically. I want to be comfortable when I retire is almost useless as a goal. You need ...
by EATaxGuy
Tue Apr 11, 2017 11:01 am
Forum: Personal Finance (Not Investing)
Topic: roth vs. traditional IRA
Replies: 4
Views: 287

Re: roth vs. traditional IRA

I'd go with the (backdoor) Roth IRA. I'm a fan of tax diversity.
by EATaxGuy
Tue Apr 11, 2017 9:03 am
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth Question (2016 vs. 2017)
Replies: 8
Views: 530

Re: Backdoor Roth Question (2016 vs. 2017)

glamdring269 wrote:At this point I'm just planning to send it as an amendment by the end of the week.

[SUPER NERDY TAX ALERT]

If you change your return before the filing deadline it is a 'superseded return', not an 'amended return'.

[/SUPER NERDY TAX ALERT]
by EATaxGuy
Tue Apr 11, 2017 8:56 am
Forum: Personal Finance (Not Investing)
Topic: Sold Rental Property IRS 4797 form questions
Replies: 7
Views: 583

Re: Sold Rental Property IRS 4797 form questions

I don't split the property on the 4797. That's actually where I recombine the building (which has been depreciating) and the land (which has not been depreciating). Separate from the 4797, but related to the sale of rental property: If you have them, don't forget to take all your suspended passive l...
by EATaxGuy
Tue Apr 11, 2017 8:24 am
Forum: Personal Finance (Not Investing)
Topic: Do I need to report lumpsum Relocation bonus (paid by employer) on tax forms?
Replies: 13
Views: 943

Re: Do I need to report lumpsum Relocation bonus (paid by employer) on tax forms?

I moved close to end of 2015, but I filed for the relocation package in 2016. So I received this in my bank account in 2016. If its indeed just a bonus, like PVW stated, can I use the 2015 tax rate for tax filing? That was a lot lower than now. Bonuses get taxed at the rates in effect at the time t...
by EATaxGuy
Mon Apr 10, 2017 1:14 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need to report lumpsum Relocation bonus (paid by employer) on tax forms?
Replies: 13
Views: 943

Re: Do I need to report lumpsum Relocation bonus (paid by employer) on tax forms?

I moved to California from Michigan in 2015. My employer paid the relocation bonus money in lumpsum. If your employer also paid you for this in 2015, then you do not count it on your 2016 taxes. They also paid the taxes on this relocation bonus. There may have been taxes withheld, but your employer...

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