Search found 412 matches

by DIFAR31
Wed Mar 25, 2020 12:48 pm
Forum: Personal Finance (Not Investing)
Topic: College partial refunds and 529s
Replies: 25
Views: 2226

Re: College partial refunds and 529s

IRS Pub 970 states the following: If a student receives a refund of qualified education expenses that were treated as paid by a QTP distribution, the student can recontribute these amounts into any QTP for which they are the beneficiary within 60 days after the date of the refund to avoid the need t...
by DIFAR31
Wed Mar 11, 2020 5:30 pm
Forum: Personal Finance (Not Investing)
Topic: Need to show interest less than $1?
Replies: 8
Views: 611

Re: Need to show interest less than $1?

According to the IRS, numbers should only be rounded when coming up with the final value to enter on a schedule or tax form line. In other words, if you have a bunch of different bank accounts that pay taxable interest and each account paid less than $.50 for the tax year but the total added up to $...
by DIFAR31
Wed Mar 11, 2020 11:45 am
Forum: Personal Finance (Not Investing)
Topic: Question about selling a trust asset (condo) to a trust beneficiary
Replies: 31
Views: 778

Re: Question about selling an estate asset (condo) to a beneficiary

You need to read and understand the terms of the trust. That's the best advice that anyone here can give without knowing what those terms are.
by DIFAR31
Wed Mar 11, 2020 11:08 am
Forum: Personal Finance (Not Investing)
Topic: Question about selling a trust asset (condo) to a trust beneficiary
Replies: 31
Views: 778

Re: Question about selling an estate asset (condo) to a beneficiary

I don't see how the condo can still be in a revocable trust if your mother established the trust and she has since died.
by DIFAR31
Sun Mar 08, 2020 10:25 am
Forum: Personal Finance (Not Investing)
Topic: Trust Savings Account
Replies: 16
Views: 1220

Re: Trust Savings Account

Try Ally Bank & Synchrony Bank. They allow trust accounts...... but there may be some restrictions that are not imposed on regular accts.........e.g. (don't know about online access) but automated phone access may be limited to checking balances. Moving funds internally may require rep . Trust acco...
by DIFAR31
Sat Mar 07, 2020 12:44 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes & Joint Ownership Account
Replies: 6
Views: 460

Re: Taxes & Joint Ownership Account

here is a related topic re: interest https://www.irs.gov/taxtopics/tc403 See nominee recipient paragraph. A similar rule would pertain to the brokerage acct re: interest/dividends/capital gains. In principle, I suppose, the income should be split each yr according to who owns what , not switch at w...
by DIFAR31
Sat Mar 07, 2020 12:15 pm
Forum: Personal Finance (Not Investing)
Topic: Time pay for college with my 529 and ESA
Replies: 9
Views: 369

Re: Time pay for college with my 529 and ESA

Thanks DIFAR31, I figured there must be two definitions of QEEs. The term "tax liability" is what I still don't understand. Forgive me I am dense and easily confused. Does a person who pays his taxes throughout the year so that he will get a refund at the end of the year have a tax liability? Or di...
by DIFAR31
Sat Mar 07, 2020 11:50 am
Forum: Personal Finance (Not Investing)
Topic: Time pay for college with my 529 and ESA
Replies: 9
Views: 369

Re: Time pay for college with my 529 and ESA

I understand that the funds must be for "qualified expenses" (https://www.irs.gov/credits-deductions/individuals/qualified-ed-expenses) which appears to be largely tuition and books and not room and board. Room and Board is a qualified expense for a 529. Thanks. The qualified expenses description e...
by DIFAR31
Fri Mar 06, 2020 9:35 pm
Forum: Personal Finance (Not Investing)
Topic: teenager saving for college - bank? Roth IRA? other?
Replies: 19
Views: 975

Re: teenager saving for college - bank? Roth IRA? other?

Can you be a backstop for those funds while they are in college? DO you have the wherewithal to do so? We'll be able to fund about half of their college costs, but for the rest they're on their own using loans and their savings. How much is half of their college costs? Without a parent or someone e...
by DIFAR31
Fri Mar 06, 2020 8:07 pm
Forum: Personal Finance (Not Investing)
Topic: T. Rowe Price beneficiary designation
Replies: 8
Views: 445

Re: T. Rowe Price beneficiary designation

What did customer service say when you called them? Cheers Obviously I did not call them since I posed the question here. A primary reason for having a web site should be to reduce interacting with customers by phone and mail. "Cheers" If you could get an authoritative answer here from someone who ...
by DIFAR31
Fri Mar 06, 2020 8:03 pm
Forum: Personal Finance (Not Investing)
Topic: Trust Savings Account
Replies: 16
Views: 1220

Re: Trust Savings Account

Ally allows savings accounts in the name of a Trust.
by DIFAR31
Fri Mar 06, 2020 6:02 pm
Forum: Personal Finance (Not Investing)
Topic: teenager saving for college - bank? Roth IRA? other?
Replies: 19
Views: 975

Re: teenager saving for college - bank? Roth IRA? other?

Can't they open a 529 for themselves? I know I was able to open a 529 with myself as the beneficiary months before my son was born. After he was born, I just did a simple transfer to an account that has him as a beneficiary. Maybe there is a minimum age in order to open a 529 when you list yourself...
by DIFAR31
Fri Mar 06, 2020 10:51 am
Forum: Personal Finance (Not Investing)
Topic: Getting sued by a creditor...how to negotiate it?
Replies: 25
Views: 3179

Re: Getting sued by a creditor...how to negotiate it?

Start looking for an attorney and tell the court you're trying to get an attorney. You'll probably get an adjournment. Look into law school clinics or other pro bono attorneys. An attorney for what? There is no dispute that it's a valid debt. The debtor has been offered a $400 discount on an origin...
by DIFAR31
Thu Mar 05, 2020 10:53 pm
Forum: Personal Finance (Not Investing)
Topic: Getting sued by a creditor...how to negotiate it?
Replies: 25
Views: 3179

Re: Getting sued by a creditor...how to negotiate it?

Start looking for an attorney and tell the court you're trying to get an attorney. You'll probably get an adjournment. Look into law school clinics or other pro bono attorneys. An attorney for what? There is no dispute that it's a valid debt. The debtor has been offered a $400 discount on an origin...
by DIFAR31
Tue Mar 03, 2020 11:49 pm
Forum: Personal Finance (Not Investing)
Topic: Maxed my Roth 401k - Should I really owe this much to taxes?
Replies: 13
Views: 1166

Re: Maxed my Roth 401k - Should I really owe this much to taxes?

If I’ve already claimed 0 on my W-4, how could I possibly have contributed more, to avoid the penalty? Complete and submit to your employer a new W-4 form that asks for an additional amount to be withheld each pay period. On the 2020 W-4, that is done on line 4(c). But note, there are no longer all...
by DIFAR31
Tue Mar 03, 2020 11:30 am
Forum: Personal Finance (Not Investing)
Topic: Amended Tax Form 1040X Questions
Replies: 6
Views: 369

Re: Amended Tax Form 1040X Questions

Do your parents declare you as a dependent still? If not you didn't need to file a return in the first place based on what you posted. He was probably filing to get his $11 back. Even if he wasn't declared as a tax dependent on someone else's return, he wouldn't be required to file a return, based ...
by DIFAR31
Fri Feb 28, 2020 1:54 pm
Forum: Personal Finance (Not Investing)
Topic: Very worried about my 2020 W-4, Withholding - Please Help
Replies: 7
Views: 607

Re: Very worried about my 2020 W-4, Withholding - Please Help

Is there an option to just add a specific dollar value? As with previous versions of the federal W-4, there is an option to request a specific dollar amount for "extra withholding" each pay period, but this will be used with other entries that make the whole form a real mess. I prefer the process t...
by DIFAR31
Fri Feb 28, 2020 1:15 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question: How to report dependent children's income
Replies: 18
Views: 910

Re: Tax question: How to report dependent children's income

Adiitional Note: I also have 529s for my children. Although I did not withdraw any money from this account in 2019, I will withdraw some in 2020. I prefer to keep my tax filing as simple as possible so that it does not complicate how I report the distribution from the 529s (though only for next yea...
by DIFAR31
Wed Feb 26, 2020 8:52 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need to amend my federal tax return?
Replies: 8
Views: 1087

Re: Do I need to amend my federal tax return?

cowdogman wrote:
Wed Feb 26, 2020 8:47 pm
Schedule C Line 1a if for general income. Line 1b is for 1099-MISC income.
There is no line 1a and line 1b on schedule C. Only line 1.
by DIFAR31
Tue Feb 25, 2020 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: 529 Deduction Recapture
Replies: 17
Views: 967

Re: 529 Deduction Recapture

I do not know if this is how it works, but I would assume that the 529 plan administrator would issue some kind of tax form, which would be received by you and the state in question. The state would then be notified, and probably try to claw back any deduction you took. There is no sense trying to ...
by DIFAR31
Tue Feb 25, 2020 12:49 pm
Forum: Personal Finance (Not Investing)
Topic: 529 Deduction Recapture
Replies: 17
Views: 967

Re: 529 Deduction Recapture

It looks like most states with a state tax deduction have a recapture provision. I don’t know how the recapture works, but I imagine the 529 plan company knows about the deduction and it would be simple for them to deduct it from any 529 rollover. How would the plan administrator know if a contribu...
by DIFAR31
Fri Feb 21, 2020 11:17 am
Forum: Personal Finance (Not Investing)
Topic: SECURE Act--Child's Unearned Income--Kiddie Tax Repeal
Replies: 4
Views: 559

Re: SECURE Act--Child's Unearned Income--Kiddie Tax Change

So how I do I amend the 2018 return? Will the IRS issue a new Form 8615, again allowing tax on unearned income to be paid at the child's rate? Good questions, and I still don't know the answers, but only the second $1,100 of unearned income will be taxed at the child's rate. Everything above that w...
by DIFAR31
Thu Feb 20, 2020 9:46 pm
Forum: Personal Finance (Not Investing)
Topic: SECURE Act--Child's Unearned Income--Kiddie Tax Repeal
Replies: 4
Views: 559

Re: SECURE Act--Child's Unearned Income--Kiddie Tax Repeal

Sorry, this doesn't answer your questions, but to clarify: The SECURE Act kiddie tax change to tie it again to the parents' tax rate is effective with the 2020 tax year, with the option to use it for tax year 2019 and to amend a 2018 return using the parent's tax rate instead of the estates and trus...
by DIFAR31
Wed Feb 19, 2020 5:08 pm
Forum: Personal Finance (Not Investing)
Topic: How One POD Beneficiary Can Disclaim Inheritance
Replies: 28
Views: 1660

Re: How One POD Beneficiary Can Disclaim Inheritance

bsteiner wrote:
Wed Feb 19, 2020 5:05 pm
Unless the POD designation provides otherwise, the disclaimed portion goes as if the person disclaiming died first.
Does this mean that the disclaimed amount would become part of the residuary?
by DIFAR31
Wed Feb 19, 2020 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: Turbotax e-filing for someone else (Mother)
Replies: 6
Views: 491

Re: Turbotax e-filing for someone else (Mother)

...sent them to her in Florida (I'm in Pennsylvania) to sign and send in. With state - there is an extra charge for adding a 2nd state (you may have gotten Penn for free as your free state, they will charge you $40 to download Florida as a second state). ... consider doing her federal return via ef...
by DIFAR31
Wed Feb 19, 2020 3:27 pm
Forum: Personal Finance (Not Investing)
Topic: HS/College income - optimizing taxes
Replies: 5
Views: 357

Re: HS/College income - optimizing taxes

psteinx wrote:
Wed Feb 19, 2020 3:19 pm
IIUC - Can contribute ~100% of W-2 income to these, then it grows tax free for decades, and they can withdraw it tax free when they retire.
Can contribute 100% of W-2 income, up to the annual Roth contribution limit, which for someone under age 50 is $6,000 in both 2019 and 2020.
by DIFAR31
Wed Feb 19, 2020 2:40 pm
Forum: Personal Finance (Not Investing)
Topic: Had a baby and received generous check from her great grandparents. Now what?
Replies: 157
Views: 11594

Re: Had a baby and received generous check from her great grandparents. Now what?

Of course there are trade-offs. A relative who is not comfortable making an unrestricted gift that an infant will gain control of at the age of majority should not be writing a check made out to the infant. But in the OP's situation as described in this thread, that's what happened. The two options...
by DIFAR31
Wed Feb 19, 2020 12:43 pm
Forum: Personal Finance (Not Investing)
Topic: Had a baby and received generous check from her great grandparents. Now what?
Replies: 157
Views: 11594

Re: Had a baby and received generous check from her great grandparents. Now what?

No solution can replace fundamental trust either in living relationships or beyond the grave. Perhaps, but a least with a custodial/UTMA 529 account, the custodian will not be allowed to change the beneficiary. Trust but verify. The ability to change the beneficiary is a major benefit. In my case i...
by DIFAR31
Wed Feb 19, 2020 12:00 pm
Forum: Personal Finance (Not Investing)
Topic: Had a baby and received generous check from her great grandparents. Now what?
Replies: 157
Views: 11594

Re: Had a baby and received generous check from her great grandparents. Now what?

retiringwhen wrote:
Wed Feb 19, 2020 11:56 am
No solution can replace fundamental trust either in living relationships or beyond the grave.
Perhaps, but a least with a custodial/UTMA 529 account, the custodian will not be allowed to change the beneficiary. Trust but verify.
by DIFAR31
Wed Feb 19, 2020 11:48 am
Forum: Personal Finance (Not Investing)
Topic: 2020 W4 Estimator
Replies: 9
Views: 483

Re: 2020 W4 Estimator

I wish the IRS allowed a taxpayer to simply request a certain amount to be withheld each pay period. I can make a pretty good estimate as to what my tax bill will be at the end of the year, I know how much has been withheld so far, and I know how many more pay periods there are this year. Just let ...
by DIFAR31
Wed Feb 19, 2020 11:39 am
Forum: Personal Finance (Not Investing)
Topic: Had a baby and received generous check from her great grandparents. Now what?
Replies: 157
Views: 11594

Re: Had a baby and received generous check from her great grandparents. Now what?

That's interesting, as it goes against my understanding that a gift/transfer to a UGMA/UTMA account cannot be altered, emended or revoked. However, as pointed out in the article quoted, there is an easy way to avoid the scenario where the assets in a UCMA/UTMA account are included in the estate of ...
by DIFAR31
Wed Feb 19, 2020 11:34 am
Forum: Personal Finance (Not Investing)
Topic: 2020 W4 Estimator
Replies: 9
Views: 483

Re: 2020 W4 Estimator

I wish the IRS allowed a taxpayer to simply request a certain amount to be withheld each pay period. I can make a pretty good estimate as to what my tax bill will be at the end of the year, I know how much has been withheld so far, and I know how many more pay periods there are this year. Just let ...
by DIFAR31
Wed Feb 19, 2020 11:26 am
Forum: Personal Finance (Not Investing)
Topic: 2020 W4 Estimator
Replies: 9
Views: 483

Re: 2020 W4 Estimator

I wish the IRS allowed a taxpayer to simply request a certain amount to be withheld each pay period. I can make a pretty good estimate as to what my tax bill will be at the end of the year, I know how much has been withheld so far, and I know how many more pay periods there are this year. Just let m...
by DIFAR31
Wed Feb 19, 2020 11:19 am
Forum: Personal Finance (Not Investing)
Topic: Had a baby and received generous check from her great grandparents. Now what?
Replies: 157
Views: 11594

Re: Had a baby and received generous check from her great grandparents. Now what?

See Paragraph 7 of this notice from The Tax Advisor site: https://www.thetaxadviser.com/issues/2011/mar/casestudy-mar2011.html Relevant text: The annual gift tax exclusion is available for transfers to UGMA/UTMA accounts, even though the child’s enjoyment of the property is delayed. However, UGMA/U...
by DIFAR31
Wed Feb 19, 2020 10:53 am
Forum: Personal Finance (Not Investing)
Topic: Had a baby and received generous check from her great grandparents. Now what?
Replies: 157
Views: 11594

Re: Had a baby and received generous check from her great grandparents. Now what?

From a Federal Estate Tax perspective, the UTMA is included in this case, and from a state perspective, I can only speak to NJ, and it is included in NJ (based upon experience, I am not a tax or estate planning lawyer). Note, I did mention that is varies by state as with so much of this area of law...
by DIFAR31
Wed Feb 19, 2020 10:42 am
Forum: Personal Finance (Not Investing)
Topic: Had a baby and received generous check from her great grandparents. Now what?
Replies: 157
Views: 11594

Re: Had a baby and received generous check from her great grandparents. Now what?

I always thought 529s were a no brainer. Why choose utma over that? A 529 account in your child's name will also be a UTMA account. Any type of account for a minor needs a custodian. This isn't correct! In the common case, at many brokers, a 529 is not a UTMA, but is owned by the account owner and ...
by DIFAR31
Wed Feb 19, 2020 10:29 am
Forum: Personal Finance (Not Investing)
Topic: Had a baby and received generous check from her great grandparents. Now what?
Replies: 157
Views: 11594

Re: Had a baby and received generous check from her great grandparents. Now what?

There are two options available to the great-grandparents. 1.) As suggested above, write a check to the baby's 529 setup by a parent, with the parent as a trustee. 2.) Open a 529 in baby's name, with a great-grand parent as trustee. Set the Success Trustee to one of the baby's parents. When the gra...
by DIFAR31
Tue Feb 18, 2020 4:41 pm
Forum: Personal Finance (Not Investing)
Topic: Can 529 funds be used for a fully-funded PHD?
Replies: 25
Views: 1359

Re: Can 529 funds be used for a fully-funded PHD?

Will not filing a return be a problem since his university issued a 1099-MISC for the summer stipend? Will the IRS be looking for a return? He was planning to fund his Roth up to the amount of his modest W-2 earnings. (Not trying to complicate the picture here...) THANK YOU! If he's not required to...
by DIFAR31
Tue Feb 18, 2020 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: Had a baby and received generous check from her great grandparents. Now what?
Replies: 157
Views: 11594

Re: Had a baby and received generous check from her great grandparents. Now what?

My two cents: To be sure, the best practice is to deposit a gift to a child in an account owned by the child. But in many cases, the risk is low and the transaction costs not worth it. If grandma gives my 3 year old a $50 for treats on next year's trip to Disney, I am going to put the bill in my wa...
by DIFAR31
Tue Feb 18, 2020 4:17 pm
Forum: Personal Finance (Not Investing)
Topic: Can 529 funds be used for a fully-funded PHD?
Replies: 25
Views: 1359

Re: Can 529 funds be used for a fully-funded PHD?

No, I am not aware. I truly know very little about any of this. And cannot figure out what the right thing to do is here. For the purpose of determining the standard deduction for a tax dependent, a taxable scholarship or fellowship grant is considered to be earned income (this is a good thing as i...
by DIFAR31
Tue Feb 18, 2020 1:44 pm
Forum: Personal Finance (Not Investing)
Topic: $90k windfall and 529
Replies: 11
Views: 773

Re: $90k windfall and 529

taxable will count against you somewhat when applying for college need based loans (if your salary does not already kick you out) - so there is that going for a 529 and the tax free growth of course. A taxable account and a 529 account of equal value and both owned by a parent will have the same im...
by DIFAR31
Tue Feb 18, 2020 1:34 pm
Forum: Personal Finance (Not Investing)
Topic: Can 529 funds be used for a fully-funded PHD?
Replies: 25
Views: 1359

Re: Can 529 funds be used for a fully-funded PHD?

No, I am not aware. I truly know very little about any of this. And cannot figure out what the right thing to do is here. For the purpose of determining the standard deduction for a tax dependent, a taxable scholarship or fellowship grant is considered to be earned income (this is a good thing as i...
by DIFAR31
Tue Feb 18, 2020 1:23 pm
Forum: Personal Finance (Not Investing)
Topic: Had a baby and received generous check from her great grandparents. Now what?
Replies: 157
Views: 11594

Re: Had a baby and received generous check from her great grandparents. Now what?

So, sounds like your position is that either 1) Putting the money in a parent owned 529 with child as beneficiary or 2) Holding the money in parental savings until it can be given to them in some other fashion (like the Roth IRA scenario mentioned above) would like be illegal? In other words, the m...
by DIFAR31
Tue Feb 18, 2020 1:13 pm
Forum: Personal Finance (Not Investing)
Topic: Can 529 funds be used for a fully-funded PHD?
Replies: 25
Views: 1359

Re: Can 529 funds be used for a fully-funded PHD?

And then you get into the whole question of whether or not a return is actually required and if this 'income' is earned or unearned. https://www.irs.gov/publications/p929#en_US_2018_publink10001487 As I think you are aware, whether the payment is considered earned or unearned income depends on whic...
by DIFAR31
Tue Feb 18, 2020 1:08 pm
Forum: Personal Finance (Not Investing)
Topic: Had a baby and received generous check from her great grandparents. Now what?
Replies: 157
Views: 11594

Re: Had a baby and received generous check from her great grandparents. Now what?

If OP puts the money in a 529, and the kid either doesn't go to college, or doesn't use up all the funds, I would assume OP would be obligated to take a non-qualified distribution and give it to the kid when they turn 18 (unless the kid gifts it back to the parents). Just another thing to consider ...
by DIFAR31
Mon Feb 17, 2020 11:53 pm
Forum: Personal Finance (Not Investing)
Topic: Had a baby and received generous check from her great grandparents. Now what?
Replies: 157
Views: 11594

Re: Had a baby and received generous check from her great grandparents. Now what?

Me? Separate taxable in your name, invested in 100% equities. When she (new daughter) is... 13-14-15 years old, you can worry about this. I'll bite the tax hit for maintaining control over the funds & financial aid planning. Unless OP is in the higher/highest tax brackets currently... I have accoun...
by DIFAR31
Mon Feb 17, 2020 11:49 pm
Forum: Personal Finance (Not Investing)
Topic: Can 529 funds be used for a fully-funded PHD?
Replies: 25
Views: 1359

Re: Can 529 funds be used for a fully-funded PHD?

I am getting ahead of myself here as the child needs to complete undergrad and apply for the PHD program, but I anticipate having a modest amount of money unused in his 529 account, and wanted to know if that money can be used to pay for room & board during PHD program? My goal is to spend the bala...
by DIFAR31
Mon Feb 17, 2020 10:25 pm
Forum: Personal Finance (Not Investing)
Topic: Had a baby and received generous check from her great grandparents. Now what?
Replies: 157
Views: 11594

Re: Had a baby and received generous check from her great grandparents. Now what?

This looks like a clear cut open a 529 and deposit it there in full. Especially if you live in a state with a state tax break. I don’t think any great grandparent would complain about that. If your state has a terrible 529 plan, use another states. It doesn’t matter. What matters is that if the 529...
by DIFAR31
Mon Feb 17, 2020 3:39 pm
Forum: Personal Finance (Not Investing)
Topic: Had a baby and received generous check from her great grandparents. Now what?
Replies: 157
Views: 11594

Re: Had a baby and received generous check from her great grandparents. Now what?

Lets forget about the gift taxes. What is the best thing to do for my daughter. My in laws gave our young son a check at Christmas time. Check was in HIS name - we deposited into OUR checking account and opened a 529 and put the money in there. . .the bank said we were allowed to deposit it directl...
by DIFAR31
Mon Feb 17, 2020 3:04 pm
Forum: Personal Finance (Not Investing)
Topic: Use caution to not incorrectly pay taxes on 529 distribution in TTax
Replies: 30
Views: 2616

Re: Use caution to not incorrectly pay taxes on 529 distribution in TTax

I thought that the standard deduction of $12,200 did not come into play when calculating kiddie taxes. It comes into play in that if the standard deduction covers all the taxable income (including taxable scholarships), there is no requirement to file a return and therefore there is no need to calc...