Bogleheads.org

If the unearned income of the Vanguard statement is more that $1150 for a child, a tax return of that that child needs to be filed. If the child only has unearned income, the deduction for the child is $1150. If the income of a dependent is greater than $2300, the "Kiddie" tax applies and form 8615 needs to be filed. https://www.irs.gov/pub/irs-pdf/i8615.pdf https://www.irs.gov/pub/irs-pdf/f8615.pdf If you are comfortable with this suggestion, you might suggest to your father-in-law he open individual 529 accounts for each child as beneficiary and move the assets of the current investment to the 529. The earnings would tax-deferred and tax-free if used for qualified education expenses. You would not have to deal with the taxes eac...

hachiko wrote: ↑Tue Mar 28, 2023 11:33 pm There are some quasi-CRAs that banks use that provide your DL/ID number, as has been reported by other banks. The most used of these companies is EWS.

To answer your question about access to DMV records, any decent sized bank has people at the bank that have direct access. The bank's online account opening system generally utilizes one or more service providers that have some access to most DMV records.

Thank you hachiko for your insight. I might need to wait for the quasi-CRA to update their database from DMV records or open ONE account in person to get the new license number in the quisa-CRA (third party verifiers) database.

If you are 70.5 years old and charitably inclined, you can liquidate the inherited IRA by making tax-free QCD withdrawals. I plan to liquidate a small inherited IRA next year by making QCDs. This action will free up a similar amount in our cash flow in a tax-free method.

Blue456 wrote: ↑Tue Mar 28, 2023 11:52 am Due to annoying hospital administrators I changed jobs and states 3 times in past 3 years. No issues opening multiple new bank and online accounts. Nothing to worry about.

Others with new licenses and license numbers have been denied verification online and were told they had to come to a branch to open an account.

Jack FFR1846 wrote: ↑Tue Mar 28, 2023 8:30 am So I have to ask. Why do they assign a different drivers license number from what you have now? In my state, the number used to be social security number. Maybe a decade ago, they changed to some different number. I've renewed many, many times and besides that one change, it's never been changed.

I am upgrading to an enhanced license that allows me to use my driver's license to board a plane for a domestic flight and to enter Canada by sea or land.

WallyBird wrote: ↑Mon Mar 27, 2023 8:26 pm FWIW I moved to a new state and got a new license and my credit score didn't even blink. And a local bank cheerfully opened an account for me, though I did stop by in person.

Any reason you can't open the online account now?

When you apply online, your identity is verified not my the credit reporting agencies, but by third party verifiers based on data you provide during the online application and historical data in their database. This happens even before your credit score is checked. If I enter my new driver's license, I will fail the verification process because the third-party verifiers think I am giving them wrong information and be told to apply in person.

I will be need to renew my driver’s license soon and I know that I will be assigned a new driver’s license number. From others in the same situation, their online bank opening application was denied because they could not be verified. They were instructed that they had to physically go into the bank and show their new license with the new number to open the account. I assume that the denial was from the third-party verifiers and not the credit reporting agencies that had not updated the driver’s license number. Will the third-party verifiers eventually update their database to reflect my new license number or will I have to go to a physical bank to present my new driver’s license before the third-party verifier’s databases are updated (i.e....

skeptical wrote: ↑Sun Mar 26, 2023 7:59 am

- Schwab did not offer a transfer bonus, even though I told them, and documented, what I was getting from Fidelity.

This is incorrect. Schwab matched transfer bonuses for retirement accounts, even from ETrade, the highest bonus based on aggregate balances of all traditional and IRA accounts for each tax payer.

2 potentially important things that Schwab does not offer that Fidelity does (don't think other brokerages offer it either): -Fidelity offers true treasury autoroll with no time out of the market. Schwab keeps your money out of the market 1 week and gives no interest. -Fidelity will autoliquidate retail money market funds to settle withdrawals, ACH payments and security purchases. So you can keep money in a higher yielding money market fund instead of a settlement fund. Schwab does not offer this, and requires a manual sale of a money market fund. Someone on this forum mentioned that the interest that Schwab gets on the your low-interest settlement accounts is a main source of revenue in Schwab's business model. I think they get reinvested...

My understanding from this forum is you will eventually pay the proper IRMMA for your AGI of that year. Regardless of an appeal, you will get a refund if you paid too much some time after you file your taxes the following year. Likewise, if you don't pay enough, you will get a bill for the underpayment of after you file your taxes the following year. An appeal simply allows allows you to lower your current Medicare payment to the anticipated correct payment due to a life changing event (LCE) regardless how this LCE affected your AGI. Work stoppage is a LCE and thus you can appeal. In the appeal, you predict your AGI for the period of the appeal. If you misjudge your AGI either by underestimating or overestimating, Medicare will eventually c...

My wife received a solicitation from what appeared to be from an unclaimed property investigator. Previously, she contracted with an unclaimed property investigator, for a 30% commission, to receive her percentage stated in the will of unclaimed property from an aunt in CA. Being a Boooglehead and DIYer, I thought I would bypass the unclaimed property investigator and work with her to claim the property herself. Online, I looked at unclaimed property in states in which her deceased relatives have died. I found five assets totaling amounts in the low five figures for the same aunt for whom she as a beneficiary of the probated estate in Alameda County, CA. Her share of these unclaimed properties probably is in the low four figures. She wrote ...

celia wrote: ↑Wed Mar 22, 2023 1:15 am

chemocean wrote: ↑Tue Mar 21, 2023 7:58 pm I have already told the major offenders of sending numerous solicitations that . . .

I wouldn’t be surprised if they just stopped mailing you because you make their life “complicated”.

Then the objective has been reached to stop the solicitations.

I still have their address, I could still donate. My problem is with the waste of money and incentives package of the third-party marketing companies.

I couldn't find url for pdf from a low NP advancing home ownership. Converted to text" Home maintenance checklist Monthly: Clean or replace HVAC filters Test GFCI plugs Test smoke and carbon monoxide detectors Check fire extinguishers Clean tub, sink drains / disposal Bimonthly: Run water down the drain and flush any plumbing fixtures not used regularly As needed: Pump septic tank Watch for ice dams Fall: Install fresh batteries in smoke and carbon monoxide detectors Clean kitchen exhaust hood and filter Drain sediment from hot water heater Vacuum/clean refrigerator and freezer coils and drip pans Turn off water supply and store hoses Insulate exposed pipes and install faucet covers as needed Schedule furnace service/inspection Remove ...

Getting back to the original OP's question, this also will be our first year of QCDs. I have already told the major offenders of sending numerous solicitations that this year's QCD will be inversely proportion to the number of solicitation we receive. The third party marketers probably don't care, because their incentive package is probably not affected by my strategy. I plan to send my QCD check directly to the VP of development saying "I informed your organization by phone, email and return USPS mail that I will be decreasing donations in proportion to the number of solicitations that I receive each year. Here is my check for $83.33 which is based on my target donation of $1000 along with evidence of your 12 monthly solicitations. Fo...

I'm aware of how I have to do the withdrawals from previous questions here and a very useful Morningstar article. My only question was the actual process of doing the withdrawal. Do I just make the withdrawals and then submit paperwork to the IRS next April? Or do I need to do something else? You don't need to submit anything, You will get a 1099-R with the code "4" in box 7, which means it is a withdrawal from an inherited IRA. This spring you should receive a form 5XXX in which Fidelity will tell the IRA and you what the value of the inherited IRA was Dec. 31, 2022. Based on this $ amount, your age at the death of the your father, IRS will know what your RMD is each year I think 1099-R don't need to be submitted unless taxes we...

I have some lumpy income in the form of stock sales I paid estimated taxes on, but I also had $182k in bargain element triggered AMT from an exercise in January. I'm thinking given that, it probably might end up that I underpaid even further vs. making it even throughout the year. So, your tax withholding was less than 90% or more than $1000 below your 2022 current taxes and your withholding and timely estimated payments was not 110% (at these AGI) of your 2021 total taxes. Since you are getting a refund, your 2022 withholding and estimated payments were greater than your 2022 taxes. Was your your 2022 withholding and estimated payments greater than your 2021 taxes owed? If so, you can apply this safe harbor rule. From i2210 In general, yo...

What is the code in box 7 of the 1099-R? I got a 1099-R, when I directly rolled over funds from TSP (federal government 401K) to an IRA with a code G and zero taxable amount. This might be the first time I got such a form from the new TSP contractor, or I just ignored the form previously because there was no taxable income.

Code G applies for a direct rollover from a qualified plan to an eligible retirement plan. I think this would also apply to an inherited rollover, but I am sure. see the code list on the back of most 1099-R.

My wife's 1985 SRA contract, for which she stopped making contributions in 1986, says she has to annuitize her next year. She wrote a letter to TIAA, and a high level official said ignore the contract, which has been superseded by changes in federal law. She will have to start taking RMDs on her post 1986 gains at age 73 and her pre-1987 contributions at age 75. We kept her SRA annuity to replace my pension income if I die first, since we do not need the income. However, doing some RMD modeling suggests that the real value of the annuity account will be about half what it is now when she turns 85 because of RMD withdrawals, which will limit it usefulness as income replacement to take advantage of mortality credits. In any case, if WE reach ...

FYI A personal data point . . . I filed an IRMAA waiver when I retired in July 2021, and was granted due to work stoppage. However in late 2022 IRS sent a letter saying my 2021 income was above the IRMAA point and charged me for back Medicare payment. so I have to re-appeal, not sure why but really frustrating. My 2022 income is well below the IRMAA threshold so should be at least arguable. A classic tale of the government's left hand has no idea of what the right hand is doing. Was your 2021AGI in your tax return that you filed in April 2022 over the threshold? My understanding is that you can appeal based on one of the seven events, retiring being one of them. In your appeal, you project the upcoming year's AGI. If your estimate is wrong...

I think you will likely receive a 1099-S if you go through regular channels, escrow company?

From my son's experience, my understanding is that if you work hybrid or totally remotely from home for a company in another state, your income for each state is based on your daily physical presence in each state. If you work totally remotely, your company is responsible for paying all employer's fees for the state in which you are actually located. My son's company had to pay Workmen's Comp in\\for his physical state for complete remote work even though the company was located in a different state.

If you're retired, presumably you're making quarterly estimated tax payments. If your question is simply how much those payments should be, each payment should be 1/4 of what your tax was in the prior year. This is considered a "safe harbor" from underpayment penalties. If someone is doing a "mega" conversion, consult your tax advisor as the safe harbor rules may be different for higher amounts. Also, waiting until Nov/Dec every year to convert will generally have one converting at appreciated levels vs. earlier in the year, hence greater tax owed. Looking at the instructions for F2210, (safe harbor), I didn't realize that the 110% Safe harbor rule for high AGI applies to the previous years AGI, not the year in which yo...

We got married in July 2022. My legal residence in 2022 is in Massachusetts. My wife has a MA driver's license and registration and MA auto insurance, but she still has NY health insurance and does some paid work in NYC (not much- her share of our joint income will probably not exceed $20-30K prior to deductions). Her mail comes to her NYC address. She filed her 2021 taxes as single in NY. She owns a home in NYC and we bounce between homes. My initial thought was that we could file our federal return as "married filing jointly"....then I could file a MA return as "married filing separately" and she could file a NY return as "married filing separately". But using H&R Block software, it would not let us do t...

So... I just realized that maybe I didn't understand sales tax deduction at all. I live in Washington state and I thought sales tax deduction only makes sense when there's a big purchase, otherwise I'd have to save lots of receipts. I was dry-running TurboTax tonight and apparently TurboTax calculated some number based on my local tax rate and income only :o. Is this some kind of estimated sales tax deduction that I can claim without any proof? In other words, did I mess up all my previous years' tax returns by not claiming sales tax deduction at all :oops: ? The sales tax deduction for WA in the tables based on the income accounts only for the 6.5% state sales tax. If your local tax is x, then the total sales tax is (x + 6/.5)/6.5 * table...

And yes, I know tax laws are not settled for TY '23, I'm looking for a close enough estimate based on TY '22. I am a DIY tax preparer. I have no special skills or super powers other than the patience to pour over IRS and state instruction PDFs to get the process done. I talk in plain English so I will not understand industry jargon very well. Thanks in advance for your help and advice. I don't know why you think the tax laws have not been settled. The tax law are set at this point until they are changed retroactively by legislation passed by both houses and signed by the President. Christine Benz's website at morningstar gives most of the details of the 2023 data. I easily constructed a spreadsheet to keep track of my taxes owed for each q...

Tax Withholding and making estimated tax payments are treated differently in the various safe harbor rules. From Booglehead Wiki Home: [/quote] There are three “safe harbors” that, if you meet the criteria for any on an annual basis, make it so you owe no underpayment penalty and probably don't need to file Form 2210. These are all covered in Part I of Form 2210. 1. The total tax shown on your current year tax return, including self-employment and other taxes, minus any refundable credits, and minus the amount paid through withholding, is less than $1,000. 2. You withheld at least 90% of the amount calculated (before subtracting withholding) for harbor #1.[note 1] 3. You withheld at least 100% (110% if your adjusted gross income for that ye...

Similar situation. My wife applied for SS benefits online for Jan 2023. Received the notification dated Jan 9 that Medicare premiums would be withheld, but not federal tax, for the first deposit on Feb. 22 and every month going forward. Sent in the W-9 from SSA website sometime in early Feb. She lot a letter today with the notification that she was being refunded into the same account has her SSA benefits for two months of Medicare, which she manually paid for the first quarter of 2023 on Dec. 25, 2022. Even though she started benefits in January, the January benefits were deposited in Feb. and the Medicare deduction was for the February premiums. I guess SSA benefits are paid in arrears. Hope the March benefits reflect the submitted W-9, a...

Can you manually add 1040-V to the list of forms being submitted?

quantAndHold wrote: ↑Fri Mar 03, 2023 2:42 pm So 94% were approved without being questioned?

Keep in mind the source of the article. Kaiser is a MA provider that doesn’t do the whole prior authorization thing, so they might have some bias concerning this issue.

At Kaiser HMO, prior approval to see a specialist within the system is called a referral from you primary care physician, which sometimes takes some assertiveness by the patient.

My understanding is that the safe harbor rules (100% of last years tax or 110% for high earners) only applies to total amounts tax withheld throughout the year, not estimated taxes paid by voucher. If your tax withholding is less than 100% of 110% of last year, but your total taxes paid (withholding plus estimated taxes) is greater than 90% of this years taxes, you might have to fill out the 2100AI form to avoid penalties.

Moving. Or buying books on my Kindle instead of actual books. Or borrow hardcopies, ebooks and audiobooks from the library. I put holds on all my library books and just check out books from the hold shelf. If you know that there is a waiting list, there is an incentive to read it within three weeks or give up on the book. My library card is my most prized possession. Or the best of both worlds, free borrowing in Kindle using the Libby app. I always felt like a library was a free candy store, and now I feel like I get my candy delivered to me, free! And I will never run out. It is glorious, Although getting on a side tangent, I like holding books in my hand. Plus reading at night before bedtime might affect sleep (blue screen time). With ma...

As for auto insurance, should they be informed of his status. He drives one of the cars for school. Would it make sense to register the car in Nevada? I take it that it might make sense for him to get a driver license in Nevada also. Yes, tell the insurance company that the car will be garaged in Nevada. The rates may change based on accident and theft differences between CA and NV (if you have comprehensive on that car). No, he probably does not need a Nevada drivers license because he is a non-resident. In order for him to register the car in Nevada, he would have to own the car, get a Nevada license, and get his own insurance. Some of this forum suggest this move to decrease your liability risk. Have him pay for the car expenses, leavin...

My understanding is paying taxes for conversion out of the conversion is essentially a wash if the marginal tax rate at the time of the conversion is the same as the marginal tax rate for the tax payer who receives the traditional IRA distribution.

Are you nearing your target Roth conversion amounts?
Will your RMDs at 73 put you in a higher tax bracket based upon the balances (including real growth in the next 10 years) in your traditional IRA.
Tax rates are schedule under law to increase in 2026.
This year is the last year you can do conversions before you turn 63, and IRRMAAs could apply (starting at $87,000 for filed 2021 AGI for 2023 Medicare premiums) if you enroll in Medicare at age 65.

We've lived in our house for a long time and with a growing family have accumulated a bunch of stuff. I'd love to declutter and organize but hoping it won't take a ton of time so am looking to do things as efficient as possible and give a bunch away -- thrift stores, friends, etc. Organizing techniques I've heard of are: Marie Kondo (seems too extreme and not sure people stick with it) Home Edit (seems time consuming) Swedish Death Cleaning (will be tough to convince my family) Hire an organization consultant (seems silly but with limited time and financial resources could make sense for some) What has worked well for people on here? During the pandemic, we decluttered. Used Offerup to get rid of slightly valuable stuff (three ski racks, s...

rockstar wrote: ↑Mon Feb 27, 2023 4:05 pm Moving.

Or buying books on my Kindle instead of actual books.

Or borrow hardcopies, ebooks and audiobooks from the library. I put holds on all my library books and just check out books from the hold shelf. If you know that there is a waiting list, there is an incentive to read it within three weeks or give up on the book.
My library card is my most prized possession.

I have 1 job offer from a company that I like decently. They want me to give an answer by EOD tomorrow. However, I also did final interviews for 2 other companies that I also like. I expect that they will provide their offer later this week if all goes well. I want to accept job offer #1 tomorrow, but if one of the other 2 companies gives a better offer, I want to rescind job offer #1 prior to the starting date, and then take the other offer, as if the first one never happened. Are there any repercussions that could bite me on my ass by doing this? Just want to make sure... A lot can happen between being offered the job verbally and in writing. Think of the new hires that were on their way to their new jobs in January of 1981, when Ronald ...

Hi, Due to the recent loss of my parents, we have an inheritance of ~$7.5M coming in. Our situation is as follows: Emergency funds: Yes, credit union checking account Debt: None Tax Filing Status: Married Filing Jointly State of Residence: NY Age: 51 / Wife's age: 49 I'm recently out of work, and while I'm figuring out next steps, I want to generate $150k/year in income from the portfolio for the next 1-2 years. I was thinking of opening a Fidelity account, and maybe figuring out a ladder of CD's/bonds in the shorter term. I'm interested in learning about what other possibilities could provide income/inflation protection in the short term as well. What is the best place to get guidance there? This would ideally be someone I could pay who i...

The wash sale of the SCHB sold on 9/30 and purchased on 9/21 was probably the reinvested dividends from the shares that had accumulated in SCHB on the date of record for the dividend. The end of the quarter is the usual time to distribute dividends. Have you looked at your account to see if you reinvested dividends.

1. Set it up as a loan with some acceptable market interest rate. 2. Pay the loan back over time. 3. Every year, have your dad "gift" you back the interest (as the annual interest is likely to be well below the gift tax exclusion) +1. Write up a loan document with terms, interest rate and amortization schedule, and partial or early pre-payment conditions. I think the interest rate could be lower than market rate without being a gift. Stick with the schedule and pay monthly. Although not necessary, I would try to keep the loan separate from gifting. He could gift you funds, and then you could officially pre-pay the loan. Also, suggest that he adds to his will that the loan is forgive upon his death. $120K from the bank does not re...

The main reason to do Roth conversions is to reduce the overall tax for tax payers who will pay taxes on the distributions, likely to be 10 years after the death of the surviving spouse. Couple of questions: " With $112k conversion he maxes out in 24% tax bracket (and $330 std Part B premium level)"- why are using the word "he", aren't they filing jointly and it would be "we"> IRMAA's on a MFJ will apply to both spouses. 12% - $600 TSP Bond Fund (F Fund) (expense ratio) should be $600K. 1) If you charitably inclined either during your lifetime through QCDs when father turns 70.5 (but not before that date) or through legacy bequest, no need to convert those funds. 2) You have a lot of funds in traditional IRA, t...

Hello all, We have a very generous grandfather who has made very generous gifts to our soon to be 4 year old daughter that are earmarked "for college fund". He is well aware and OK with us putting the money in a 529. Currently we already have almost $45k. She is his only grandchild (and will be his only grandchild). Assuming the gifts continue (Birthday and Christmas, and occasional "just becauses") and no reason to think they won't - we will likely get a very large amount into the 529 - potentially more than we might need depending on college choice, scholarships, etc. Our income puts us at a level we likely won't qualify for need based aid - we current make ~230k. We intent to keep directing the gifts into the 529 unt...

The best chance is always a complaint to city planning commission so they could take action during permit time [/color] No, Public hearing will be held next month. Do you have any suggestions. Thanks. It is likely that you will only have success if you address the specific issues before the hearing, zoning variance (setbacks, height, max. percentage of lot devoted to building footprint, maximum percentage of impermeable surfaces (building footprint + driveway and sidewalks). View protection and sunlight protection are usually not a right outlined in the code. If the lot has a lot of trees, there are also be provisions in some city codes of what and how many trees must to preserved in the code. If that is the subject of the hearing, you mig...

I opened a CITI checking account in 2021 and was supposed to get a taxable $300 bonus 90 days after meeting the bonus requirements. After making the direct deposits, I confirmed with a chat representative that I was eligible for the bonus, had met the requirements of the bonus, and the day by which bonus should appear in my account. I patiently waited the 90+ days for the bonus to be deposited. When I called CITI customer service about the bonus, I was told that I was not eligible for the bonus. After escalating to the next level, I told the supervisor that I had a screenshot of the chat conversation to the contrary and was again denied the bonus. I closed the account in 2021 and filed a complaint with the Consumer Financial Protection Boar...

You could make a late 4th quarter 2022 estimated tax payment (it was due on January 15, 2023) and then wait awhile to file your taxes without any penalty and hope the late payment goes unnoticed. The only penalty you might get would be filing the estimated tax payment one month late.

"Employee contribution" transfers to an individual Roth IRA might mean that you contributed by meeting the earned income conditions as an employee, whether the funds were transferred directly from your employer or indirectly through your personal accounts. Other ways of transferring funds into a Roth are rollovers and conversions. There are probably others ways of transferring.

Table clothe? I have used a table clothe over a 8-setting sturdy wood table with severely tarnished surface for over 40 years.

Duckie wrote: ↑Sat Feb 18, 2023 3:54 pm

InvestoGuy wrote: ↑Sat Feb 18, 2023 1:42 pm Is he REQUIRED to file taxes?

Yes. Since he needs to file Schedule C and Schedule SE for the 1099-NEC income, he must file and include all the other income.

The W-2 (box 1) income and 1099-NEC (Schedule C line 31) income are Roth IRA eligible.

He can also deduct some health insurance that HE paid on the Schedule C to offset the 1099-NEC.
You can claim the educational credit because he is a dependent on your return
The most advantageous education credit is the American Opportunity credit, which is $2500 credit, of which only 40% is refundable. If he claims the credit, he will have not tax liability, he would only get only $1000.

The quick answer is yes your dependent must file even though he has no tax liability because his "unearned income" is more than $1150. Filing in those circumstances is an IRS requirement. As noted by others, his standard deduction is earned income + $400 = $2900. His gross income you reported is $3974 leaving a taxable income of $1074 (unsure why your software would indicate $1088 - did you round any figures?). However, as also mentioned, long term capital gains and qualified dividends will be taxed at 0% because of his low income hence no tax liability. Note that short term CG and ordinary (non-qualified) dividends are taxed at the individuals marginal tax rate. There is also some benefit to filing and "being in the system&...

It would seem form 8615 (Tax for Certain Children Who Have Unearned Income) might apply. I haven't figured out the tax on the CG and dividends using his form.

snackdog wrote: ↑Wed Feb 15, 2023 10:32 pm Vancouver is less diverse than Portland, lacks a definable city center, and doesn't have a proper asian grocery. But the state income tax is amazing! If you can cross the river for shopping, you can avoid sales tax as well.

The old rail yards just west of I-5 near the river is being developed rapidly into hopping dining and entertainment mixed-use area, complete with street racing issue like a big city.