Search found 722 matches

by clydewolf
Wed Nov 07, 2018 2:57 pm
Forum: Personal Finance (Not Investing)
Topic: US I-bonds to 529 plan/ Tax question
Replies: 8
Views: 1290

Re: US I-bonds to 529 plan/ Tax question

Oddly the 8815 form doesn't mention 529s. The instructions for line 1, column b tell you what to enter here if this is a QTP (Qualified Tuition Program). Does the 529 rollover need to happen the same year you spend on the educational expenses just as if you're using the bonds directly for education...
by clydewolf
Tue Nov 06, 2018 4:16 pm
Forum: Personal Finance (Not Investing)
Topic: What's the 'safest' decision?
Replies: 6
Views: 611

Re: What's the 'safest' decision?

What path leads to the most financial security for me and my family? really not enough information. A. Pay off 188k 15 year 4.75% fixed rental property loan (that I occupy for small business). Eventually eliminate $1616 monthly payment. For a rental, the interest is a deduction on your schedule E. ...
by clydewolf
Sun Nov 04, 2018 4:00 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Issues
Replies: 5
Views: 1237

Re: IRS Issues

Call the IRS and explain that you need more than 30 days to retrieve the data, and suggest the amount of time you need.
Make the trip to Tahoe get your data. Then redo the whole thing as the IRS requests.
by clydewolf
Thu Nov 01, 2018 1:57 pm
Forum: Personal Finance (Not Investing)
Topic: FSA and HSA
Replies: 4
Views: 600

Re: FSA and HSA

Hello, I just realized that today is the last day to signup for Wageworks. 1. Is there any income restriction to signup for Dependent Care Flexible Spending account? As in are we not eligible for this benefit if our joint income is beyond certain number. 2. I am eligible to signup for upto $5000 be...
by clydewolf
Mon Oct 29, 2018 9:12 am
Forum: Personal Finance (Not Investing)
Topic: Claiming the Itemized Deduction on NY Income Tax Return for the 2018 Tax Year
Replies: 7
Views: 761

Re: Claiming the Itemized Deduction on NY Income Tax Return for the 2018 Tax Year

Any idea what this section means? For taxable years beginning on or after January 1, 2018, for purposes of the Empire State Child Credit, the provision’s reference to IRC section 24 will have the same meaning as it did before the TCJA. See this link: https://www.tax.ny.gov/pit/credits/empire_state_...
by clydewolf
Sat Oct 27, 2018 2:39 pm
Forum: Personal Finance (Not Investing)
Topic: FAFSA Simplified Needs Test now that forms 1040A and 1040EZ are gone
Replies: 11
Views: 976

Re: FAFSA Simplified Needs Test now that forms 1040A and 1040EZ are gone

Prior to 2018, every tax payer could use Form 1040. Both the 1040-A and 1040-EZ are simplified versions of the 1040. The simplified versions of the 1040 are gone. You will just have to use form 1040.
by clydewolf
Fri Oct 26, 2018 10:24 am
Forum: Personal Finance (Not Investing)
Topic: 401K tax planning
Replies: 3
Views: 333

Re: 401K tax planning

Yes, both you and your spouse can contribute to your respective employer's 401k plan. Each of you can contribute the maximum amount as described by PFInterest. Contributing to a traditional 401k, your contributions as not included in your taxable earnings. Tax will be owed when you take a distributi...
by clydewolf
Thu Oct 18, 2018 10:18 am
Forum: Personal Finance (Not Investing)
Topic: In What Order are Tax Credits Applied?
Replies: 6
Views: 607

Re: In What Order are Tax Credits Applied?

I have not seen anything that would change applying the tax credits from 2017 to 2018 taxes. If you look at page 2 of your 2017 form 1040 you can see how the credits were used there. Pay attention to lines 48 through 54 to reduce your income tax and any excess Advanced Premium Tax Credits you receiv...
by clydewolf
Tue Oct 16, 2018 1:25 pm
Forum: Personal Finance (Not Investing)
Topic: I-bonds to 529 to grandchild
Replies: 4
Views: 544

Re: I-bonds to 529 to grandchild

Treasury Direct has a list of information about the bonds qualifying for education expenses. One item stood out to me that the money (cash) must be in the 529 plan within 60 days. That will be calendar days.
Treasury Direct: https://www.treasurydirect.gov/indiv/pl ... cation.htm
by clydewolf
Wed Oct 10, 2018 1:25 pm
Forum: Personal Finance (Not Investing)
Topic: Elder care tax question(s)
Replies: 31
Views: 2010

Re: Elder care tax question(s)

There is no deduction for dependents. But you can claim any medical deduction.
by clydewolf
Sun Oct 07, 2018 5:17 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question: Bought a rental property on 12/31/2017...
Replies: 4
Views: 635

Re: Tax question: Bought a rental property on 12/31/2017...

The rental that you purchased on 12/31/2017 available for rent on that day? You must have the property available for rent before you can take depreciation. Otherwise it is just personal property.
by clydewolf
Sat Oct 06, 2018 2:28 pm
Forum: Personal Finance (Not Investing)
Topic: Swap to a Roth 401k?
Replies: 12
Views: 1138

Re: Swap to a Roth 401k?

TexasCPA wrote:
Fri Oct 05, 2018 11:14 pm
Can’t I pay the conversion taxes with the funds from my 401k?
Not a good idea. If you are younger than 59-1/2 it will cost you an additional 10%.
by clydewolf
Sat Oct 06, 2018 2:25 pm
Forum: Personal Finance (Not Investing)
Topic: Swap to a Roth 401k?
Replies: 12
Views: 1138

Re: Swap to a Roth 401k?

I have about $18,000 in a traditional 401k Is this 401k from a former employer? If "yes", do a transfer to your Roth IRA. and pay the income tax from other savings or current income. and I'm wondering if I should instead pay the taxes and roll this over to my employer's Roth 401k Does your current ...
by clydewolf
Wed Oct 03, 2018 6:20 pm
Forum: Personal Finance (Not Investing)
Topic: Help me help my parents with Medicare/Medigap, ACA, and Roth conversion questions
Replies: 6
Views: 722

Re: Help me help my parents with Medicare/Medigap, ACA, and Roth conversion questions

If they make charitable contributions, once they reach age 70-1/2 they can use the Qualified Charitable Distribution (QCD) as their RMD up to $100,000 per year. The QCD does not show up on your 1040 as taxable income. Here is more: https://www.kiplinger.com/article/retirement/T054-C000-S004-ira-qcd-...
by clydewolf
Wed Oct 03, 2018 5:40 pm
Forum: Personal Finance (Not Investing)
Topic: Upcoming Medicare Open Enrollment - Widowed Mom
Replies: 6
Views: 456

Re: Upcoming Medicare Open Enrollment - Widowed Mom

My MA provider provides a book describing the 2018 coverage and the 2019 coverage in table form so the two years are shown side by side. The prescription formulary is included in a separate book. Watch for your carrier to hold seminars that explain the changes for 2019 and plan to attend one of thos...
by clydewolf
Wed Sep 26, 2018 12:27 pm
Forum: Personal Finance (Not Investing)
Topic: 529 for Private Elementary School? Minimize capital gains?
Replies: 11
Views: 1170

Re: 529 for Private Elementary School? Minimize capital gains?

There is little time for growth if using a 529 for K-12. Probably the largest benefit comes if you can deduct your contributions from your income on your state income tax return.
by clydewolf
Wed Sep 26, 2018 12:16 pm
Forum: Personal Finance (Not Investing)
Topic: Section 179 vehicle purchase vs a new lease
Replies: 3
Views: 413

Re: Section 179 vehicle purchase vs a new lease

The 179 depreciation is an accelerated depreciation. If you would normally depreciate the vehicle over 3 years, you would take the depreciation in smaller amounts over the 3 years. If you were to dispose of the vehicle after one year you would not get the depreciation for years two and three. The sa...
by clydewolf
Wed Sep 26, 2018 11:57 am
Forum: Personal Finance (Not Investing)
Topic: Another Roth IRA conversion question
Replies: 3
Views: 675

Re: Another Roth IRA conversion question

As the others have said, "YES You Can" IF your 401k ALLOWS Accepts Rollovers From IRAs.

I'd do as Wizzard suggests and convert the full amount and pay the tax on the $2,000.
by clydewolf
Mon Sep 24, 2018 9:20 am
Forum: Personal Finance (Not Investing)
Topic: Nursing Home/Medicaid issues
Replies: 10
Views: 1118

Re: Nursing Home/Medicaid issues

Maybe he would talk with a counselor at the local Office for The Aging. This just requires an appointment. Other than time it is at no cost to him.
by clydewolf
Fri Sep 21, 2018 10:15 am
Forum: Personal Finance (Not Investing)
Topic: Estate Planning Attorney Says Putting tIRA in a Revocable Trust is "Complicated" - True?
Replies: 45
Views: 3297

Re: Estate Planning Attorney Says Putting tIRA in a Revocable Trust is "Complicated" - True?

Read your beneficiary agreement with your IRA custodian. Ira beneficiaries are meant to be individuals. Often when there is a trust involved, the entire IRA is distributed and taxed at the time the IRA owner dies. The ability for any "stretch" of the IRA is lost.
by clydewolf
Fri Sep 21, 2018 10:08 am
Forum: Personal Finance (Not Investing)
Topic: Can we use a 529 plan to pay for tuition for daycare and PreK programs ?
Replies: 20
Views: 7768

Re: Can we use a 529 plan to pay for tuition for daycare and PreK programs ?

What is the advantage of using the 529 plan for early elementary tuition?

This is a young child, there has been little time to build savings in the 529 and little time for growth.
Contributions are after tax at the federal level, while there may be some savings at the state level.
by clydewolf
Wed Sep 19, 2018 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: Can I reverse a TIRA/Roth IRA distribution and not pay taxes?
Replies: 4
Views: 403

Re: Can I reverse a TIRA/Roth IRA distribution and not pay taxes?

That 60 days is a hard and fast rule of 60 calendar days.
Includes Saturdays Sundays and Holidays.
by clydewolf
Wed Sep 19, 2018 2:08 pm
Forum: Personal Finance (Not Investing)
Topic: Dad Died - Handling Mom's Finances
Replies: 17
Views: 2403

Re: Dad Died - Handling Mom's Finances

OP wrote: "My mom is in the process of transferring the IRA into her name" I did not see any place that indicated if your mother was over or under age 59-1/2. If she is less than 59-1/2 she may want to keep some of the IRA as an inherited IRA . She must take penalty free distributions from the inher...
by clydewolf
Thu Sep 13, 2018 3:28 pm
Forum: Personal Finance (Not Investing)
Topic: Withholding from RMD'S
Replies: 10
Views: 911

Re: Withholding from RMD'S

Last December I asked Vanguard to withhold 100% of a distribution for income tax. I was told the most they would withhold is 99% from the distribution for federal income tax. Vanguard had to mail me a check for the 1%.

I am not enrolled in their RMD service.
by clydewolf
Thu Sep 13, 2018 3:18 pm
Forum: Personal Finance (Not Investing)
Topic: Traditional to Roth conversion
Replies: 9
Views: 745

Re: Traditional to Roth conversion

That is correct. Conversions made since January 1,2018 can not be recharicterized. The separate Roth for the conversion really not needed. In five years if you need to take a distribution from your Roth IRA, the first money distributed will be Contributions, free from tax and free from early distrib...
by clydewolf
Mon Sep 03, 2018 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Correcting multiple years' 8606s, send separate or together to IRS?
Replies: 2
Views: 592

Re: Correcting multiple years' 8606s, send separate or together to IRS?

You are right in keeping the 2016 CP2000 separate. For tax years 2012, 2013 and 2014 each 8606 should have it's own envelope with an explanation of what is changed. This group of envelopes would be mailed in one package. Tax year 2015 as you say requires a 1040X. It should be mailed separately with ...
by clydewolf
Mon Sep 03, 2018 9:38 am
Forum: Personal Finance (Not Investing)
Topic: Quick tax question
Replies: 18
Views: 1982

Re: Quick tax question

"Absolutely! I did that for all of my kids. I just wish my folks did that for me...😊"

Roth IRAs were not available until 1998. The maximum contribution in 1998 was $2,000.
Most likely when you were a teen the Roth option was not available.
by clydewolf
Mon Sep 03, 2018 9:25 am
Forum: Personal Finance (Not Investing)
Topic: Tax treatment of 403(b) loan repayments
Replies: 5
Views: 468

Re: Tax treatment of 403(b) loan repayments

The loan is an investment of your 403b. Distributions from the 403b will be fully taxed at the time of distribution.
by clydewolf
Mon Sep 03, 2018 9:21 am
Forum: Personal Finance (Not Investing)
Topic: Tax confusion: Head of household vs claiming GF as tax dependent
Replies: 10
Views: 1136

Re: Tax confusion: Head of household vs claiming GF as tax dependent

You have about four months to get married. Then file as MFJ!
by clydewolf
Sat Jun 16, 2018 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: RMDs based on 1986 life expectancy versus today?
Replies: 23
Views: 2191

Re: RMDs based on 1986 life expectancy versus today?

........ (and I have at least 6 years to go before RMDs start.) I say "at least" because I may work part-time indefinitely at my current employer, which further delays RMDs and also allows more time for gradual additional Roth conversions........ Oh, boy. Now I am really confused. :? I thought the ...
by clydewolf
Thu May 31, 2018 10:04 am
Forum: Personal Finance (Not Investing)
Topic: Roommate in a house?
Replies: 32
Views: 3192

Re: Roommate in a house?

Here is some information from the IRS: https://www.irs.gov/businesses/small-businesses-self-employed/rental-income-and-expenses-real-estate-tax-tips It sounds like you SO owns the house so she can also take some depreciation. Will you beproviding services such as lawn mowing, snow shoveling? Your se...
by clydewolf
Mon May 28, 2018 6:37 pm
Forum: Personal Finance (Not Investing)
Topic: Have you ever overpaid your federal income tax bill?
Replies: 17
Views: 1648

Re: Have you ever overpaid your federal income tax bill?

Overpaid a month and a half ago. Went to put $6500 in my Roth IRA just before I filed in April and accidentally put it in my tIRA. Filed a 1040x the next week (and a state 140x). Still waiting for both refunds. You may want to make a conversion to your Roth IRA of that contribution to your tIRA. Bu...
by clydewolf
Sun May 27, 2018 11:25 am
Forum: Personal Finance (Not Investing)
Topic: HSA limit validations
Replies: 4
Views: 526

Re: HSA limit validations

Is this correct "- she is eligible to contribute up to the limit for individual $3450 in 2018?" This is correct whether she covers the children or not. - I am eligible to contribute to same $3450 (regardless of whether I cover kids or not) ? or is it family limit $6900 ? You can contribute $3450 whe...
by clydewolf
Mon Feb 19, 2018 6:00 pm
Forum: Personal Finance (Not Investing)
Topic: Early Withdrawal ira
Replies: 7
Views: 512

Re: Early Withdrawal ira

Your contributions to the Roth IRA can be distributed tax free and penalty free. Any amount beyond your contributions is gains. If you are not 59-1/2 then they will be taxed and subject to a 10% early distribution penalty. If you are age 59-1/2 and older the 10% early distribution goes away. But the...
by clydewolf
Mon Feb 19, 2018 9:02 am
Forum: Personal Finance (Not Investing)
Topic: TaxSlayer backdoor Roth IRA help
Replies: 15
Views: 1673

Re: TaxSlayer backdoor Roth IRA help

As FiveK suggests, change the 1099-R box 2a to $1. That $1 is a taxable conversion.
by clydewolf
Mon Feb 12, 2018 7:16 pm
Forum: Personal Finance (Not Investing)
Topic: Schedule B Interest Question
Replies: 14
Views: 1454

Re: Schedule B Interest Question

Box 3 is exempted from State Income tax.

For your federal return it will not matter.
by clydewolf
Mon Feb 12, 2018 11:23 am
Forum: Personal Finance (Not Investing)
Topic: Capital gains taxes when selling joint property?
Replies: 5
Views: 707

Re: Capital gains taxes when selling joint property?

Checkout IRS Pub 523, Selling Your Home. There are some exemptions to the 24 month live-in rule.
https://www.irs.gov/pub/irs-pdf/p523.pdf
by clydewolf
Sun Feb 11, 2018 3:05 pm
Forum: Personal Finance (Not Investing)
Topic: Converting to Roth a 2017 contribution made in 2018
Replies: 7
Views: 611

Re: Converting to Roth a 2017 contribution made in 2018

You can convert your 2017 TIRA contribution made in 2018. It will be a 2018 conversion. It will be reported on form 8606 when you file your tax return for 2018.
by clydewolf
Sun Feb 04, 2018 10:31 am
Forum: Personal Finance (Not Investing)
Topic: 529 for private elementary school?
Replies: 26
Views: 2141

Re: 529 for private elementary school?

While federal tax rules allow for 529 funds to pay for primary education, the 529 you set up prior to 2018 would not allow that. State 529 plans need to change their rules before 529 funds can be used for primary and secondary education expenses. That means the state legislature must take some action.
by clydewolf
Wed Jan 10, 2018 7:32 pm
Forum: Investing - Help with Personal Investments
Topic: Roth help - income limit
Replies: 13
Views: 1157

Re: Roth help - income limit

That plan would work as long as your IRA custodian has no restrictions.
by clydewolf
Mon Jan 01, 2018 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare - Duration of Paying in System for Full Eligibility
Replies: 3
Views: 537

Re: Medicare - Duration of Paying in System for Full Eligibility

Generally when you qualify for SS benefits, at age 65 you will qualify for Medicare part A. Here is more: https://www.hhs.gov/answers/medicare-and-medicaid/who-is-elibible-for-medicare/index.html For SS benefits, you need 10 years of employment. Working longer and higher earnings will increase your ...
by clydewolf
Sun Dec 17, 2017 6:33 pm
Forum: Personal Finance (Not Investing)
Topic: Paying for Roth Conversions
Replies: 3
Views: 705

Re: Paying for Roth Conversions

Estimated payments are not required whenever there is enough withheld from other sources.
Payroll withholding will work just fine.
by clydewolf
Mon Dec 04, 2017 4:16 pm
Forum: Personal Finance (Not Investing)
Topic: How do QCDs relate to RMDs?
Replies: 22
Views: 1767

Re: How do QCDs relate to RMDs?

The QCD may also lower the taxable part of your SS benefit.
by clydewolf
Sat Dec 02, 2017 10:49 am
Forum: Personal Finance (Not Investing)
Topic: How do QCDs relate to RMDs?
Replies: 22
Views: 1767

Re: How do QCDs relate to RMDs?

But how about this: Late in the year, you decide to take more money out than the RMD even though that is not what you intended to do earlier in the year. What happens then if you did QCDs after some of your other withdrawals? When the RMD is satisfied, and then a QCD is made, the distribution that ...
by clydewolf
Sat Dec 02, 2017 10:41 am
Forum: Personal Finance (Not Investing)
Topic: How do QCDs relate to RMDs?
Replies: 22
Views: 1767

Re: How do QCDs relate to RMDs?

In January 2019, the OP will receive a1099-R from his IRA custodian. That will show $85,000 being distributed and a code 7 in box 7. On the OP's 2018 1040 line15a the $85,000 will show. Line 15b will show $65,000 with a note QCD in the margin for the line. The $20,000 QCD is kept out of the income c...
by clydewolf
Thu Nov 30, 2017 7:58 pm
Forum: Personal Finance (Not Investing)
Topic: Deductible Expenses Paid by Credit Card--Timing
Replies: 6
Views: 761

Re: Deductible Expenses Paid by Credit Card--Timing

You borrowed the money to pay the medical bill.

Now you must pay the loan.
by clydewolf
Wed Nov 22, 2017 1:32 pm
Forum: Personal Consumer Issues
Topic: How do I sell silver coins?
Replies: 13
Views: 2186

Re: How do I sell silver coins?

I acquired a collection of silver coins.
When I sold them, I went to a local coin dealer. He stated a price for each coin after he viewed the coin.