Search found 37 matches

by lext
Tue Jun 26, 2018 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: I am getting married: what happens to our FSA/HSA?
Replies: 11
Views: 954

Re: I am getting married: what happens to our FSA/HSA?

The difference is that you can not terminate an FSA because you are getting married. As I already pointed out, Sec. 125 plan changes due to a QLE must be consistent with that QLE. The only changes allowed to an FSA with a marriage QLE is to increase contributions on adding spousal health insurance ...
by lext
Tue Jun 26, 2018 2:16 pm
Forum: Personal Finance (Not Investing)
Topic: I am getting married: what happens to our FSA/HSA?
Replies: 11
Views: 954

Re: I am getting married: what happens to our FSA/HSA?

Sounds like a good plan. You don't have to "take out HSA" as the money there is permanent and yours for keep (or is it hers for keep considering she contributed before you came into the picture?) I mean as in HSA contributions she made this year. Do we get to keep that, or do we have to assume as i...
by lext
Tue Jun 26, 2018 2:02 pm
Forum: Personal Finance (Not Investing)
Topic: I am getting married: what happens to our FSA/HSA?
Replies: 11
Views: 954

Re: I am getting married: what happens to our FSA/HSA?

Thanks for all your wisdom everyone! So if my understanding is correct, this is what I will do when we get married. 1. Cancel her HDHP and stop contributing to HSA (would we have to take out HSA that's been contributed already?) 2. Add her to my plan 3. Nothing changes with FSA. Sounds like a good ...
by lext
Tue Jun 26, 2018 12:08 pm
Forum: Personal Finance (Not Investing)
Topic: I am getting married: what happens to our FSA/HSA?
Replies: 11
Views: 954

Re: I am getting married: what happens to our FSA/HSA?

There is no arbitrary grace period to incur expenses. This ceases on the last day of coverage which depends on the employer's policy. It can be the day of separation, the end of the month, etc... The "run out" period allows you to submit claims for qualified expenses incurred while eligible. This i...
by lext
Tue Jun 26, 2018 3:05 am
Forum: Personal Finance (Not Investing)
Topic: I am getting married: what happens to our FSA/HSA?
Replies: 11
Views: 954

Re: I am getting married: what happens to our FSA/HSA?

Don't call me an expert on this, however I've been using FSA/HSA a lot and speak mainly from my experience. At the time you get married, you have a choice: - Your spouse keep her HSA, you change your FSA plan and no longer want to contribute (i.e. terminate existing FSA). At this point I think you h...
by lext
Mon Jun 25, 2018 10:04 pm
Forum: Personal Finance (Not Investing)
Topic: Why tax amount determined by software lower than schedule?
Replies: 8
Views: 821

Re: Why tax amount determined by software lower than schedule?

You may be able to file the amended return using TaxAct. I've used TaxAct for several years. And I recently had to amend a return. A call to TaxAct customer service gave me friendly, personal attention, and step-by-step instruction about what and where and how to make the changes. The amended retur...
by lext
Sun Jun 24, 2018 2:03 pm
Forum: Personal Finance (Not Investing)
Topic: Why tax amount determined by software lower than schedule?
Replies: 8
Views: 821

Re: Why tax amount determined by software lower than schedule?

Uniballer wrote:
Sun Jun 24, 2018 5:05 am
Do you have qualified dividends, or capital gain income? They are taxed at the lower capital gains rate.
Ah, this must be it. I do have qualified dividends and/or long-term capital gain. Thanks!
by lext
Sun Jun 24, 2018 4:43 am
Forum: Personal Finance (Not Investing)
Topic: Why tax amount determined by software lower than schedule?
Replies: 8
Views: 821

Why tax amount determined by software lower than schedule?

I usually file tax by TaxAct, and don't really verify the amount. However recently I've noticed that the amount is lower than if I just go and apply the tax rate schedule by hand. Of course, the difference is good for me, but I wonder on what basis is the software able to lower tax that way? Is it b...
by lext
Fri Apr 20, 2018 8:37 pm
Forum: Personal Finance (Not Investing)
Topic: Can I *not* claim all the state tax in my itemized deduction?
Replies: 39
Views: 4595

Re: Can I *not* claim all the state tax in my itemized deduction?

You mentioned AMT. Say AMT means you derive no benefit from state tax deduction. Still, you need to make a conscious decision when filing tax to NOT take the state income deduction. Otherwise, if you take it, and although you have a line item for AMT, you still cannot reason with the IRS (and no so...
by lext
Thu Apr 19, 2018 2:11 am
Forum: Personal Finance (Not Investing)
Topic: Can I *not* claim all the state tax in my itemized deduction?
Replies: 39
Views: 4595

Re: Can I *not* claim all the state tax in my itemized deduction?

" The effect is to transfer deduction from one year into income for the next year. Deduction is not the same as "negative income" or "net reduction in income". They can be render irrelevant/invalid. For example if you don't itemize. Or if you're hit with AMT. Then it doesn't matter if you take half...
by lext
Wed Apr 18, 2018 3:06 am
Forum: Personal Finance (Not Investing)
Topic: Can I *not* claim all the state tax in my itemized deduction?
Replies: 39
Views: 4595

Re: Can I *not* claim all the state tax in my itemized deduction?

Just when I thought it is impossible, then someone comes along and say it is possible, but not saying how :) There a number of inaccuracies in some of the post that I would have liked to argue, just for a better understanding. But that will be too much rambling. So let me just address the biggest on...
by lext
Mon Apr 16, 2018 12:02 pm
Forum: Personal Finance (Not Investing)
Topic: Can I *not* claim all the state tax in my itemized deduction?
Replies: 39
Views: 4595

Re: Can I *not* claim all the state tax in my itemized deduction?

There is provision to determine whether your state income tax refund is counted as income. That is based on whether you deducted state income tax payments in the previous year. Actually,it is a little more complicated than that. You only have to count it as income to the extent that you benefited f...
by lext
Mon Apr 16, 2018 11:43 am
Forum: Personal Finance (Not Investing)
Topic: Can I *not* claim all the state tax in my itemized deduction?
Replies: 39
Views: 4595

Re: Can I *not* claim all the state tax in my itemized deduction?

OK, now let's assume that is illegal. Then that means if I use standard deduction, or don't itemize the full amount, I'll have strong incentive to pay the state only up to the actual state tax that will be assessed, and not a cent more, right? If I use standard deduction, for example, then how much...
by lext
Mon Apr 16, 2018 3:46 am
Forum: Personal Finance (Not Investing)
Topic: Can I *not* claim all the state tax in my itemized deduction?
Replies: 39
Views: 4595

Re: Can I *not* claim all the state tax in my itemized deduction?

OK, now let's assume that is illegal. Then that means if I use standard deduction, or don't itemize the full amount, I'll have strong incentive to pay the state only up to the actual state tax that will be assessed, and not a cent more, right? If I use standard deduction, for example, then how much ...
by lext
Mon Apr 16, 2018 3:40 am
Forum: Personal Finance (Not Investing)
Topic: Can I *not* claim all the state tax in my itemized deduction?
Replies: 39
Views: 4595

Re: Can I *not* claim all the state tax in my itemized deduction?

Why? And no, you can’t do that. You don’t have to claim the deduction on the tax withheld, but you do have to pay the tax on the refund. Doesn't that mean the income will be taxed twice? Providing I don't take a deduction for it this year, then that money was already taxed. It already is part of my...
by lext
Mon Apr 16, 2018 3:37 am
Forum: Personal Finance (Not Investing)
Topic: Can I *not* claim all the state tax in my itemized deduction?
Replies: 39
Views: 4595

Re: Can I *not* claim all the state tax in my itemized deduction?

But why? To reduce the income for next year. If I don't itemize then obviously my state tax refund will be no income. However if I itemize, the excess state tax (the state tax refund) will be considered income if I had declared that excess in my deduction. So what I want to do is only declare the a...
by lext
Sun Apr 15, 2018 9:33 pm
Forum: Personal Finance (Not Investing)
Topic: Can I *not* claim all the state tax in my itemized deduction?
Replies: 39
Views: 4595

Can I *not* claim all the state tax in my itemized deduction?

I'm using TaxAct. Normally each year, the software will claim all of the state tax I've paid (on my W-2) as itemized deduction in my 1040. But after filing state income tax, usually there will be some refund, and next year, they'll send me a form saying "this is how much state tax you've been refund...
by lext
Tue Dec 26, 2017 2:18 pm
Forum: Personal Finance (Not Investing)
Topic: [Pass-Thru Entities Questions Thread]
Replies: 141
Views: 11439

Re: [Pass-Thru Entities Questions Thread]

Does anyone know if this "20% deduction" is a deduction-before-income, similar to a deduction for gas or meals or legit business expenses? Or is it a deduction that will just appear on the 1040 form? (I believe where it appears will affect SE tax calculation).
by lext
Tue Dec 26, 2017 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: [Pass-Thru Entities Questions Thread]
Replies: 141
Views: 11439

Re: Pass Through Entities Questions Thread

My wife is a sole proprietor photographer.,, no LLC/Scorp etc. Does she qualify for this..her net income is around $5K which I usually zero out with a SE 401k deduction. Would we be able to take a $5K - self employment tax SE401k deduction then another below the line 20% deduction of the ($5K-SE ta...
by lext
Tue Dec 26, 2017 2:37 am
Forum: Personal Finance (Not Investing)
Topic: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]
Replies: 886
Views: 60637

Re: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]

Man, this is a lot to digest. I have some questions that I don't think have been covered yet. Not sure if I should start a new thread, but figure I'll try it here first: 1/ What exactly is new with regards to pass-through business? On some web pages, I saw "they lower the tax rate for pass-through b...
by lext
Sat Dec 09, 2017 11:21 am
Forum: Personal Finance (Not Investing)
Topic: Screwed over with regards to 401k distribution. What can I do?
Replies: 16
Views: 1843

Re: Screwed over with regards to 401k distribution. What can I do?

Personally, I think the following happened: They didn't withhold taxes. The check is made out to "FIdelity IRA FBO L Ext" or something like that. Also the code on the 1099-R is different if one is over 59.5 or one is under 59.5. I'm embarrassed (but relieved) to admit that you're right. The check i...
by lext
Fri Dec 08, 2017 6:09 pm
Forum: Personal Finance (Not Investing)
Topic: Screwed over with regards to 401k distribution. What can I do?
Replies: 16
Views: 1843

Re: Screwed over with regards to 401k distribution. What can I do?

Hi there everyone, sorry about the drama. I was in a bit of a panic mode because I was afraid nothing can be done, and once the whole thing is reported to the IRS then it's written in stone and whatever I do with the custodian I'd risk an audit because the numbers don't match. But it looks like ther...
by lext
Fri Dec 08, 2017 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: Screwed over with regards to 401k distribution. What can I do?
Replies: 16
Views: 1843

Screwed over with regards to 401k distribution. What can I do?

I left my workplace 2 months ago. It wasn't exactly a happy leaving from management point of view, because a bunch of us grew disillusioned about the direction of the company and left together. However the conversation at the time was genial enough. (This is not that important, just some context to ...
by lext
Tue May 02, 2017 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: Paying foreign contractor - do I need to withhold?
Replies: 4
Views: 672

Paying foreign contractor - do I need to withhold?

I'm a bit confused by this. From I see so far, it looks like I have to file form 1042 (or 1042-S?) instead of 1099. And then I have to withhold 30% of the total amount and send it to the IRS? Shouldn't they get the whole amount and then handle their tax over there? Because otherwise it looks like th...
by lext
Thu Feb 16, 2017 4:18 pm
Forum: Investing - Help with Personal Investments
Topic: Can I unify all my investment accounts in one?
Replies: 39
Views: 2602

Re: Can I unify all my investment accounts in one?

1. There is absolutely no sound reason to believe that you should be investing identically in all 5 of the accounts you mentioned. What you're doing is extremely ill-advised and finding a way to automate a bad decision doesn't make it better. To this and another poster who mentioned "buy one fund f...
by lext
Wed Feb 15, 2017 2:47 am
Forum: Investing - Help with Personal Investments
Topic: How & when to sell lots of a single stock with huge capital gains
Replies: 40
Views: 3832

Re: How & when to sell lots of a single stock with huge capital gains

One idea - if they have investments with losses (not sure if they do), could they TLH to realize those losses, then sell an equivalent amount of FB so that the gains & losses cancel out. They'll have to lose a lot of money to make TLH worth the amount of gain, I think. Definitely not a problem one ...
by lext
Wed Feb 15, 2017 2:38 am
Forum: Investing - Help with Personal Investments
Topic: Can I unify all my investment accounts in one?
Replies: 39
Views: 2602

Re: Can I unify all my investment accounts in one?

Fee? Why are you paying fees? Especially MASSIVE ones. There are plenty of places that have no fees for various mutual funds or ETFs. If you are buying stocks, well, STOP IT!. :D One thing you might do is use a financial aggregator so you can see all of your positions in one place. vanguard and fid...
by lext
Wed Feb 15, 2017 2:30 am
Forum: Investing - Help with Personal Investments
Topic: Can I unify all my investment accounts in one?
Replies: 39
Views: 2602

Re: Can I unify all my investment accounts in one?

Have you ever thought of liquidating all of these accounts and open a simple taxable individual account. That may be quite beneficial as you have infinite choice of funds selection, full control of withdrawl, LTGC at 15% rate, step up basis for heirs, and much simpler life to manage your entire wea...
by lext
Tue Feb 14, 2017 1:54 pm
Forum: Investing - Help with Personal Investments
Topic: Can I unify all my investment accounts in one?
Replies: 39
Views: 2602

Can I unify all my investment accounts in one?

I can imagine this is not a rare problem to have, and I don't have the expertise to know what, if anything, that can be done. So right now I have 1 Roth for myself, 1 Roth for my wife, a non-retirement investment account, 2 ESAs for my kids (and I'm not counting the HSAs). It's hard to make good inv...
by lext
Mon Jan 30, 2017 3:14 pm
Forum: Personal Finance (Not Investing)
Topic: Long Term Care Company Credit Rating Trouble
Replies: 1
Views: 560

Re: Long Term Care Company Credit Rating Trouble

I think the chance you can move your policy to another provider with the same terms is extremely slim, if not zero. Most likely the new provider will say "cancel yours, then apply with us".
by lext
Mon Jan 30, 2017 2:12 pm
Forum: Personal Finance (Not Investing)
Topic: Effect of S corp on Solo 401K contribution
Replies: 6
Views: 1810

Re: Effect of S corp on Solo 401K contribution

Going back to my example, with 20K income, one can elect to treat all that as self-employment income. One pays ~3K in SS tax. The rest (17K) can be socked away in a 401k. Income tax is $0. If not for the 401K the income tax amount will have been (25% federal, 9.3% California) roughly 6K. I am appre...
by lext
Sun Jan 29, 2017 11:16 pm
Forum: Personal Finance (Not Investing)
Topic: Effect of S corp on Solo 401K contribution
Replies: 6
Views: 1810

Re: Effect of S corp on Solo 401K contribution

Thank you, Spirit Rider. You've been very helpful. Let me summarize what I understand here in case someone has the same question as me: - Say you have your own business. During the year, the business pay you a salary (or income from sole proprietorship or partnership). Let's call this S . - Then the...
by lext
Sun Jan 29, 2017 7:16 pm
Forum: Personal Finance (Not Investing)
Topic: Effect of S corp on Solo 401K contribution
Replies: 6
Views: 1810

Effect of S corp on Solo 401K contribution

I'm considering creating an S corp for myself and my wife. However I'm a bit unsure about the benefits. One benefit I know of is you save on the payroll tax on the distribution portion of your benefit. Say we have an S corp profit for the year at 20K, then we can perhaps structure it so that the sal...
by lext
Sat Jan 28, 2017 8:00 pm
Forum: Personal Finance (Not Investing)
Topic: Setting up so spouse can contribute to Solo 401k
Replies: 17
Views: 2527

Re: Setting up so spouse can contribute to Solo 401k

Thanks. Yes I understand that I need to file both Schedule C and Schedule SE for each of us. I was just wondering how to "tell" the IRS that "5K was paid to this person". Isn't it a requirement that the "payer" notified the IRS of that fact? Take an example: I have the consulting gig. I got 10K thro...
by lext
Sat Jan 28, 2017 4:13 pm
Forum: Personal Finance (Not Investing)
Topic: Setting up so spouse can contribute to Solo 401k
Replies: 17
Views: 2527

Re: Setting up so spouse can contribute to Solo 401k

There is no need to pay a spouse as a W-2 employee or to go to the complexity forming a partnership and filing partnership returns and K-1s. Likewise, trying to convince a client to pay the two of you separately is a solution in search of a problem that does not exist. The IRS has already created a...
by lext
Sat Jan 28, 2017 4:02 pm
Forum: Personal Finance (Not Investing)
Topic: Setting up so spouse can contribute to Solo 401k
Replies: 17
Views: 2527

Re: Setting up so spouse can contribute to Solo 401k

- I have a consulting gig on the side where both my wife and myself contribute- At the end of the year, I get a 1099-MISC from the consulting gig, where the sole recipient of the money is me Since your wife contributes to the consulting gig, can you ask your client to split your compensation betwee...
by lext
Sat Jan 28, 2017 3:47 am
Forum: Personal Finance (Not Investing)
Topic: Setting up so spouse can contribute to Solo 401k
Replies: 17
Views: 2527

Setting up so spouse can contribute to Solo 401k

I've tried to read about the topic (there's one thread here too: https://www.bogleheads.org/forum/viewtopic.php?f=2&t=87799) but I'm still pretty confused about the details, in particular the little details that everyone seems to always assume. Thanks for any guidance. OK, this is my scenario and wh...