Bogleheads.org

Schwab. My main gripe is no fractional ETF shares

sergeant wrote: ↑Fri Mar 17, 2023 9:21 pm The 80% protection is an interesting moral hazard situation. I'm in California and bought some MYGA's. Due to the state not covering the full 100%, I was forced to truly consider the strength of the issuing insurance company. I went with top rated companies that offered slightly lower rates. Had I been 100% covered I would have just gone with the highest rate.

I wonder if these companies ever strategically default and hose CA holders. 20% uncovered is significant

Do not rejigger. Include with your income tax return a Form 8995 with the Section 199A dividends (if you meet the conditions to use form, some will need to use Form 8995-A). Copy the amount from the last line of Form 8995 to line 13 of Form 1040, and continue with Form 1040 from there. Ahaa! This is what I was needing I think. I will check out this form and read up what needs to be done. Maybe I need to amend last year's taxes as well... though I doubt if it is worth it (I don't think the number was over like $20 or something!) Use tax software. It is much more accurate than asking random strangers on the internet. I respectfully disagree. I would rather understand/learn what I am doing rather than feed stuff as asked by a software. Now th...

Pay attention to your due date on your 7 year CD's. I received an email that they will renew for another 7 year term. Well, the current interest rate on 7 year CD's in .3%. Everything else is 4 - 4.4%. I am already in the process of moving it to Vanguard and buying a brokered CD's. I just finding it a bit questionable having all the rates semi competitive, except all those 7 years taking out 7 years ago. I’m not sure I would ever want to bank with an organization doing something like that. Every bank and credit union does this. Anyone who uses CDs is aware of this. You can never let a CD autorenew and expect to maximize rate. This is no surprise. Fair enough. Anyone who uses CDs -- and is paying attention -- might be aware of this. To me, ...

30west wrote: ↑Thu Mar 16, 2023 8:02 pm Paving the shortcut is the answer. Everything else will likely fail.

Step stones also work, $1.68 ea for 1ft x 1ft at home Depot

inb4space wrote: ↑Thu Mar 16, 2023 3:10 pm

rossington wrote: ↑Thu Mar 16, 2023 1:55 pm How long after you bought VTSAX did you switch to specific ID? Were you using average cost before that?

I'm not sure to either question unfortunately. My best guess is that it was at least a few months after I acquired most of my VTSAX shares. However, note that the average acquisition cost reported in my cost basis (around $94 / share) is not close to the actual average acquisition cost (around $104 / share).

You should be calling vanguard about this account specific question. Any answer here is pure speculation.

aristotelian wrote: ↑Thu Mar 16, 2023 4:04 pm

nalor511 wrote: ↑Thu Mar 16, 2023 3:56 pm

aristotelian wrote: ↑Thu Mar 16, 2023 3:41 pm Apologies, yes it is $250. I believe they charge $75 for any ACATS transfer. If the market goes up I will probably cash in the shares and withdraw cash. I have some gains rolling over so it shouldn't cost me anything.

Is there a button to close your account online for Axos? Or live chat? I hate calling these places, and I'm not going to do a $75 acat-out for a $2k account. Thanks for any info

I don't think so. Like I said, my plan was to withdraw cash to zero and let them close the account. The charge is annoying but you're still coming out ahead $175 even with an ACAT.

Only $85 ahead after fed+state taxes here with ACAT fee, not much left

tj wrote: ↑Thu Mar 16, 2023 3:57 pm If Apex doesn't provide the corrected soon, I'll just file without the foreign tax credit. What a mess.

I certainly wouldn't give up my tax credit because my broker made a mistake. Even if I had to file a FINRA/SEC/IRS complaint.

So I did 3 transfers to Public for myself and family members, they were great about posting the (very generous) bonuses. However, a couple of months later, I set up accounts on Apex to view cost basis data - and it only transferred for some of the positions in one account; the other two accounts had no data transferred over - everything shows as 100% gains! I've messaged Public and am waiting to hear, but did others have experience with getting the information corrected? Will I need statements from the previous brokerage? Yes you likely need previous statements. I had luck getting my cost basis corrected, then it went bad, and they corrected it again. I have *not* had success getting my 1099 corrected (yet, and it's been about 3 weeks sinc...

aristotelian wrote: ↑Thu Mar 16, 2023 3:41 pm Apologies, yes it is $250. I believe they charge $75 for any ACATS transfer. If the market goes up I will probably cash in the shares and withdraw cash. I have some gains rolling over so it shouldn't cost me anything.

Is there a button to close your account online for Axos? Or live chat? I hate calling these places, and I'm not going to do a $75 acat-out for a $2k account. Thanks for any info

So I did 3 transfers to Public for myself and family members, they were great about posting the (very generous) bonuses. However, a couple of months later, I set up accounts on Apex to view cost basis data - and it only transferred for some of the positions in one account; the other two accounts had no data transferred over - everything shows as 100% gains! I've messaged Public and am waiting to hear, but did others have experience with getting the information corrected? Will I need statements from the previous brokerage? Yes you likely need previous statements. I had luck getting my cost basis corrected, then it went bad, and they corrected it again. I have *not* had success getting my 1099 corrected (yet, and it's been about 3 weeks sinc...

GreendaleCC wrote: ↑Thu Mar 16, 2023 11:21 am

Rob5TCP wrote: ↑Thu Mar 16, 2023 11:19 am Pay attention to your due date on your 7 year CD's. I received an email that they will renew for another 7 year term. Well, the current interest rate on 7 year CD's in .3%. Everything else is 4 - 4.4%. I am already in the process of moving it to Vanguard and buying a brokered CD's.
I just finding it a bit questionable having all the rates semi competitive, except all those 7 years taking out 7 years ago.

I’m not sure I would ever want to bank with an organization doing something like that.

Every bank and credit union does this. Anyone who uses CDs is aware of this. You can never let a CD autorenew and expect to maximize rate. This is no surprise.

I didn't know about schd B. Turbo Tax has a handy worksheet 'Foreign Tax Credit Carryovers' that I reference, and takes care of it for the next year. Why did you have only $313 of credit. Didn't you have any other significant income on 2020? Do you think you'll have enough allowed credit for 2021 (to cover the $3,287 )? I always assumed that you can choose where to apply where to apply the remaining credit. 1 year backwards and 10 years forward, but you can choose between those 11 years as you wish. e.g. I had some FTC left on 2020 but I didn't bother filing an amendment for 2019 to simplify my life. Is my assumption correct? No. You must carry back 1 year, then forward up to 10 years, that's the rule. Whether you follow the rules is alway...

I didn't know about schd B. Turbo Tax has a handy worksheet 'Foreign Tax Credit Carryovers' that I reference, and takes care of it for the next year. Why did you have only $313 of credit. Didn't you have any other significant income on 2020? Do you think you'll have enough allowed credit for 2021 (to cover the $3,287 )? I always assumed that you can choose where to apply where to apply the remaining credit. 1 year backwards and 10 years forward, but you can choose between those 11 years as you wish. e.g. I had some FTC left on 2020 but I didn't bother filing an amendment for 2019 to simplify my life. Is my assumption correct? No. You must carry back 1 year, then forward up to 10 years, that's the rule. Whether you follow the rules is alway...

To better understand 1116 you have to think in reverse of normal terms. The form is trying to make sure you don't get credited back more foreign tax than the US tax you paid on the same income. Did you mean "The form is trying to make sure you don't get credited back more foreign tax than the US tax you paid on the foreign income"? I am using HR block premium (online) and the tax software calculates a foreign tax credit of zero. I don't understand why my foreign tax credit is 0. For 2022 I held an international stock fund at Vanguard. The stocks in the international fund earned $5k in dividends, and foreign tax withheld was $400 of those dividends. My effective federal tax rate is 24% and my marginal federal tax rate is 35%. You ...

Anovice wrote: ↑Tue Mar 14, 2023 9:01 pm

nalor511 wrote: ↑Tue Mar 14, 2023 8:53 pm Carry back first is the rule. Rules are not optional. You can file 1116 even if it doesn't help you, so, yes I would file it (it has a carry line, which you need populated). It can't hurt you.

So, that means a 2019, 2020, and 2021 amended return?

If you want to (and can) carry back. If you had no foreign income, carry back won't work. Otherwise just 20/21

Carry back first is the rule. Rules are not optional. You can file 1116 even if it doesn't help you, so, yes I would file it (it has a carry line, which you need populated). It can't hurt you.

Form 1116 sch B tracks carryover, but was not created until 2021. So for 2020 you track the carryover yourself, and for 2021 you amend with a 1116 sch B Thank you for your post. From what I posted, does it appear that I have $3,287 foreign tax credit remaining? In other words, is $3,287 the amount to carryover? I have a friend preparing my taxes and at the moment, I do not know if he filed my 2022 taxes. If he has filed my 2022 taxes, does he amend my 2021 and 2022 tax returns with Schedule B (Form 1116)? If he has not filed my 2022 taxes, he amends my 2021 taxes and does he use Form 1116 for 2022? Lastly, we know that my 2021 taxes were filed and assuming that my 2022 taxes were also filed, is it acceptable not to amend my 2021 and 2022 t...

MrJedi wrote: ↑Mon Mar 13, 2023 6:50 am No. If you redeem on 1st of the month, you get interest from the last month. But if you hold until the 31st, it's not anymore interest. That's why it's advisable to redeem early in the month if you are planning a redemption, since holding longer through a partial month has no benefit to you.

The reverse logic applies for buying them. I.e. buy at the end of the month and you get a full month of interest when the next month rolls over.

Thank you for your answer. I just wanted to confirm the mechanics. So if you cash out jan1.2023, you get interest thru Dec, and a 1099 for the previous tax year (2022), nothing for 2023

The last 3mo interest penalty for early redemption is what I'm trying to factor

Form 1116 sch B tracks carryover, but was not created until 2021. So for 2020 you track the carryover yourself, and for 2021 you amend with a 1116 sch B Thank you for your post. From what I posted, does it appear that I have $3,287 foreign tax credit remaining? In other words, is $3,287 the amount to carryover? I have a friend preparing my taxes and at the moment, I do not know if he filed my 2022 taxes. If he has filed my 2022 taxes, does he amend my 2021 and 2022 tax returns with Schedule B (Form 1116)? If he has not filed my 2022 taxes, he amends my 2021 taxes and does he use Form 1116 for 2022? Lastly, we know that my 2021 taxes were filed and assuming that my 2022 taxes were also filed, is it acceptable not to amend my 2021 and 2022 t...

need403bhelp wrote: ↑Tue Mar 14, 2023 6:58 pm Somewhat tangential to this thread, but I’ve ended up with quite a lot of transactions in Coinbase last year from using the Coinbase debit card and selling XLM to USD. Does anyone have a website or program they recommend to convert the Coinbase transactions to a format that I can input into TurboTax download edition?

Also, I have about three non Coinbase crypto transactions (SoFi Crypto for a bonus and Paxful -> Kraken to cash out a gift card from a credit card rebate). Any good links to step by step instructions for entering them into TurboTax download?

Thanks again!

Cointracker has a free plan for coinbase customers, generates a csv that you can import into TT or HRB

Has anyone had the issue of needing a voided 1095-A because they already have employer coverage (1095-Bs and 1095-C's) showing coverage for the full year? I tried to e-file a couple weeks ago and TT rejected it for a lack of 1095-A/Form 8962 which is showing a grant for full premium tax credit (~$3600). I am trying to dispute it with the marketplace because I would never have been eligible for any of the credit based on my high income alone and I also had employer coverage throughout the year. I would otherwise be getting a much larger refund. Also I usually do my own taxes through TT but not sure if I should file an extension and try to get someone this year. Thanks in advance for any thoughts. It's not a grant. 1095a is reconciled in you...

Form 1116 sch B tracks carryover, but was not created until 2021. So for 2020 you track the carryover yourself, and for 2021 you amend with a 1116 sch B

yosemite_mountain wrote: ↑Tue Mar 14, 2023 2:19 pm

livesoft wrote: ↑Tue Mar 14, 2023 2:03 pm But in your OP you did not state what your tax bracket was. more likely that you didn't fill out your tax return correctly. Is that clear?

Here are my tax brackets:

Effective federal tax rate: 24%

Marginal federal tax rate: 35%

You need to post your tax line from 1040, and your whole 1116, or it's impossible for anytime to tell you where you're going wrong

If you don't have US tax, there's nothing to credit. If your 1116 ratios are off in the wrong direction, same effect.

https://ttlc.intuit.com/community/retir ... 00/1110406

(it's answered there, but i don't know if either of the two options will be palatable to you)

yosemite_mountain wrote: ↑Mon Mar 13, 2023 2:12 am On my 1099-DIV, line 1a, Vanguard includes foreign tax paid in “total ordinary dividends”. How do I handle this and report the foreign tax credit separately so that I’m not taxed on the foreign tax credit?

Vanguard did the correct thing. Plug it into your tax software. If your FT was over 300(single)/600(joint), file form 1116 also.

yosemite_mountain wrote: ↑Mon Mar 13, 2023 1:44 am I have $45k in carryover losses from tax year 2021.

HR block tax software has beeb able to use carryover looses to deduct $3k from my 2022 taxable income.
However, the tax software wont let me use my carryover losses to offset $1k of 2022 capital gains.

Does anyone know how to offset capital gains using carryover losses in HR block tax software?

If you are seeing 3k come off ordinary income, it's probably taking 1k off your cap gains as well. Look at sch d, cap gains/loss carryover worksheet

vtMaps wrote: ↑Mon Mar 23, 2009 6:09 pm For best yield on an ibond, buy it at the end of a month. It will be dated (and earn interest) the first day of the month. Redeem the bond on the first day of the month because you will not earn any extra interest by redeeming it later in the month. A bond may be redeemed in as little as 11 months and a day.

If you redeem an ibond on the 1st day of a month, do you receive interest for that month or not?

We file jointly. My spouse received income via Paypal, and the SSN on that account is mine. So the 1099 from Paypal has my SSN. Is this a problem? Can we report it (correctly) as her income, not mine, or will the IRS be looking for that amount on my part of the return? Is there some reason you don't want to file it under *your* part of the return? Technically if your SSN is on the account, it's your income. It's her business. If the income were mine and the expenses (and non-Paypal income) were hers, wouldn't that be messy? It's not, because your SSN is on the account. It's yours. Get it? Something is wrong. Just fix it at the source for going forward. But tax wise it really shouldn't matter too much if you file jointly. Personally I would...

Uncle Morris wrote: ↑Sun Mar 12, 2023 6:58 pm We file jointly.

My spouse received income via Paypal, and the SSN on that account is mine. So the 1099 from Paypal has my SSN.

Is this a problem? Can we report it (correctly) as her income, not mine, or will the IRS be looking for that amount on my part of the return?

Is there some reason you don't want to file it under *your* part of the return? Technically if your SSN is on the account, it's your income.

caklim00 wrote: ↑Sat Mar 11, 2023 8:55 pm Just curious if anyone has experience with Vanguard secure message being useful. I sent a couple of messages about a week ago and have yet to receive a response. Most banks I've dealt with seem fairly responsive within about 48 hours but things seem off at Vanguard.

I've had them respond, with useless boilerplate

You should have gotten an email when you enrolled. Mine was 6mo.

Droptoptop wrote: ↑Sat Mar 11, 2023 7:24 pm You guys think it makes sense to move from a prime fund with commercial paper to FDLXX until this bank run risk resolves?

No.

Aguilar wrote: ↑Sat Mar 11, 2023 6:07 pm

Random Poster wrote: ↑Sat Mar 11, 2023 4:39 pm I’m confused by your question: Doesn’t column 1 tell you the foreign source income for each listed fund?

And isn’t the answer 100% for each of your funds?

I’m not sure.

Are you saying I’m supposed to multiply what’s in col 1 by the total dividends I received for the fund? Do the same for each fund. Then add the results together.

If I do that, the end result is much larger than in previous years. I get the correct result in the software ($511 ftc applied) but I don’t think my formula is correct.

Multiplying the F% (likely to be 99 or 100%) by total divs is exactly what do to.

Get a local prepaid movistar sim and use that.

exodusNH wrote: ↑Fri Mar 10, 2023 7:59 pm

UpperNwGuy wrote: ↑Fri Mar 10, 2023 6:56 pm Why do people here place such a high importance on transferability? I have never transferred anything between brokerages and don't think most people do. Seems like a purely theoretical advantage that appeals to the boglehead mindset.

Look at where Vanguard has gone with regards to customer service. Having the option to switch without a tax penalty is a good feature to have since a) you can't predict what customer service at Fidelity will be like in 20 years, b) you'd almost certainly have huge taxable gains, c) portable, comparable products are available with similar performance and cost.

Agreed. I do hold fzrox, and I never thought I would leave VG. You just never know

Again I'm reminded to watch Public/Apex like a HAWK. My 1099div dividend amount was too high. Public agrees with this. Apex, however, refuses to correct the 1099. This, following my cost basis randomly flipping to an incorrect value multiple times (two? three? I've lost track) over the past 3 months.

I recommend that if your 1099 is incorrect in some way, you contact Public rather than just expecting they'll revise it. I received the "we'll revise your 1099" automatic email, but customer service says that Apex says no.

In hindsight, I'm paying more time and stress for that $10k bonus than I expected.

placeholder wrote: ↑Fri Mar 10, 2023 1:36 am

martha wrote: ↑Thu Mar 09, 2023 8:44 pm Thanks for that idea! It's good advice -- asking for a retention bonus after the rollover is completed. The amount is just over 1M, so I'm hoping for a $1,000 reward as described in this thread.

I would looking for a lot more than 1000 for that much.

$1k is what Fidelity has offered me as a bonus when I've already transferred the funds in (without a bonus). Yes, you can get more attached beforehand

Chuckles960 wrote: ↑Fri Mar 10, 2023 12:10 am
Now regarding this year's taxes, you do not have to pay tax now if you are not doing the conversion until the 4th quarter. You can pay estimated taxes by 1/15/2024 and not owe a penalty. This does require filling out IRS Form 2210, but that easier than people think.

This is correct, what I did, worked great.

Fed, exactly 21 days. State, 14 days

ryman554 wrote: ↑Tue Mar 07, 2023 11:55 pm Yeah, I filed 8949.

Of course, I also don't have a 1099B or whatever else my private company is gonna send me. Was a private sale back to the company. So,maybe they also don't know what to report... And I'll just let it slide.

My company sent me 1099b for private sale of shares back to them... It's required

Find the section to fill out 2210, for me this removed the penalty completely based on income timing (mostly in Q4)

krick wrote: ↑Mon Mar 06, 2023 10:46 pm

As a follow-up question... before plugging in the Foreign Tax information, TurboTax was showing that I owed $27 for Federal. After plugging in the Foreign Tax Credit info, it TurboTax gives me a $12 credit, bringing my tax liability to $15.

Looking at the forms view, it looks like there's a carry-over of the tax credit. Why didn't it wipe out the tax owed completely? Is there some sort of credit vs income situation that kicks in to limit the credit?

You can only take credit for the amount the US would have taxed that income, roughly. The rest carries back 1 year and then forward up to 10 years

bog007 wrote: ↑Mon Mar 06, 2023 10:42 pm here's a 5.5%

https://www.depositaccounts.com/banks/c ... an/offers/

Treasury still for me, with CA taxes.

Thanks for reply. How did they handle transfer out fee? Deducted/withheld from your cash balance? Jan 1 2023 Schwab reduced partial transfer fee to $0 (full transfer still $50) Here is a "Charles Schwab Pricing Guide": https://www.schwab.com/legal/schwab-pricing-guide-for-individual-investors $0 for partial transfer and $50 for a full transfer Personally, I was not charged for either partial or full transfers out of Schwab. I did a full IRA transfer from Schwab to Fidelity last December and no fee. Maybe it is related to the mythological Pinnacle status (it is analogous to Vanguard Flagship). I was charged a full transfer fee of $50 for each account (2x) on Dec 15, 2022 Did they close your accounts after the full transfer? Or, di...

Just buy secondary, no downside vs auction, the YTM you see is the YTM you get

Fidelity reported my tbill interest on 1099 in year of maturity, and Tnote coupons each year regardless of maturity

saycanyouc wrote: ↑Mon Mar 06, 2023 5:42 pm This is a question within a question...sorry. Would Schwab's Intelligent Portfolios service sway anyone toward them? For $360 per year, you get an ongoing personal advisor contact.

No. Schwab loves to put you in high cash with low yield. Fidelity has fractional shares on ETFs, with no fees.

Should make basically no difference. Buy whatever matures when you want it to mature

need403bhelp wrote: ↑Mon Mar 06, 2023 3:11 pm

nalor511 wrote: ↑Mon Mar 06, 2023 3:02 pm

need403bhelp wrote: ↑Mon Mar 06, 2023 2:44 pm Is everyone getting a new 1099 from public.com or just those who received the email? I don’t believe I received any such email from them.

It's pretty simple - double check your 1099 numbers match what you expect regarding divs, qdivs, 199a, and FT. If they match, you probably won't get a revision. Mine were off. If yours are off, contact them to ensure a revision.

Thnaks. The divs number is correct, I'm not 100% sure how to calculate rest for an ETF. Any suggestions? Thanks

Vanguard publishes expected qdiv/FT numbers. Multiplied by share count. I assume other managers do the same.