Search found 680 matches

by boomer_techie
Wed Mar 27, 2024 2:22 am
Forum: Personal Finance (Not Investing)
Topic: Underpayment Penalty Form 2210: Actual (Vanguard) vs Estimated (Schwab) Q1 thru Q3 Annualized Income Data
Replies: 12
Views: 731

Re: Underpayment Penalty Form 2210: Actual (Vanguard) vs Estimated (Schwab) Q1 thru Q3 Annualized Income Data

Thanks also for the clarification on the end of year adjustments. That helps. You might be wondering how to make estimated payments when these reclassifications and adjustments are only known after the year ends. It turns that almost of the changes reduce your tax. Unqualified to qualified reduces your tax. Unspecified distribution to long term gain distribution reduces your tax. So on and so forth. Except for foreign tax paid. Usually this increases your taxable income and then provides a 1:1 reduction, but in some cases the increase in income might not be offset. But even then, the offset might be by at least the increase in taxes. Thus, if you make estimated payments assuming all distributions are the highest taxed type of dividend, the...
by boomer_techie
Tue Mar 26, 2024 9:04 pm
Forum: Personal Finance (Not Investing)
Topic: Underpayment Penalty Form 2210: Actual (Vanguard) vs Estimated (Schwab) Q1 thru Q3 Annualized Income Data
Replies: 12
Views: 731

Re: Underpayment Penalty Form 2210: Actual (Vanguard) vs Estimated (Schwab) Q1 thru Q3 Annualized Income Data

The Schwab 1099-DIV is comparatively limited and simpler (not a bad thing!) as to the details. Schwab's 1099-DIV indicates all foreign tax and 199A dividends occur in Q4 (actually Jan of following year applied to prior year Q4). That makes things easy! But for qualified dividends, Schwab doesn't indicate specific distribution dates. Foreign tax, 199A dividends, qualified dividends, and all the other groupings generally are "paid" throughout the year with each distribution. 90%+ of the time these payments are in the same proportion for each distribution payment. Therefore calculate: (special grouping) / (total annual distribution) Then for each 2210 interval: (distribution to date) * (above calculated ratio) FYI, the Paid/Adjusted...
by boomer_techie
Tue Mar 26, 2024 8:43 pm
Forum: Personal Finance (Not Investing)
Topic: California tax return lost in mail
Replies: 8
Views: 955

Re: California tax return lost in mail

Sdgh56 wrote: Tue Mar 26, 2024 10:55 am I (perhaps foolishly) sent over my California tax return via "certified first-class" USPS mail early last week. It was supposed to be delivered within 2 days but I had just received a message from USPS that the mail has probably been lost.
Certified? Or Certified with Return Receipt?

You sent it last week? The address is likely inundated. Sometimes it can take several weeks before the "post office" does the arrival scan.

If you need to know that the tax return actually arrived, the Return Receipt (i.e. the green postcard) is good for that.
by boomer_techie
Tue Mar 26, 2024 1:02 am
Forum: Personal Consumer Issues
Topic: Need recommendations for dollies for use on stairs
Replies: 9
Views: 895

Re: Need recommendations for dollies for use on stairs

roamingzebra wrote: Mon Mar 25, 2024 9:38 pm Reading the reviews, I was surprised at the overwhelmingly positive comments since I apparently mistakenly thought that Harbor Freight was associated with poor quality / weak workmanship.
With the closure of Montgomery Ward, Sears, Kmart, and many local lumber yards, Harbor Freight is now positioning themselves as America's tool store. They've gone upscale with a lot of their tools. For certain tools, they've adopted a Good, Better, Best system. The Good tool might have "poor quality / weak workmanship", while the Best is competing with well known premium brands.

And oh, in case you don't know, 99% of the brands at Harbor Freight are of their own making.
by boomer_techie
Mon Mar 25, 2024 8:48 pm
Forum: Personal Consumer Issues
Topic: Need recommendations for dollies for use on stairs
Replies: 9
Views: 895

Re: Need recommendations for dollies for use on stairs

This one from Home Depot with pneumatic tires looks like it would fill the bill: https://www.homedepot.com/p/Milwaukee-800-lb-Capacity-D-Handle-Hand-Truck-HD800P/100030159 I've had a hand truck similar to this one for years: https://www.homedepot.com/p/Milwaukee-1-000-lbs-Capacity-Dual-Handle-Hand-Truck-60138/202204469 Notice the bars alongside the wheels? Those help slide it up and over obstacles. They are fine for outdoor concrete steps. Of course they aren't appropriate for indoor stairs, especially for wooden stairs with a nice finish. If you routinely plan to go up nice stairs, then appliance hand trucks have short caterpillar like tracks for dragging up the noses of stair treads. Paradoxically, for heavy material handling, you want s...
by boomer_techie
Mon Mar 25, 2024 2:02 am
Forum: Investing - Theory, News & General
Topic: VFWAX: 2023 1099-DIV reconciliation "increase to cost basis". what does this mean, exactly?
Replies: 39
Views: 5804

Re: VFWAX: 2023 1099-DIV reconciliation "increase to cost basis". what does this mean, exactly?

boomer_techie wrote: Mon Mar 25, 2024 12:36 am Now to check the handling of VWO in 2020 ...
OMG! :shock: The VWO was all sold in 2021. The cost basis was not adjusted in any way in 2021's 1099 packet. The listed cost basis was the purchase price from 2019. It looks like this caused me to overpay taxes by ... two cents.
by boomer_techie
Mon Mar 25, 2024 1:42 am
Forum: Personal Finance (Not Investing)
Topic: Gotchas when selling real estate (Primary residence)
Replies: 4
Views: 962

Re: Gotchas when selling real estate (Primary residence)

thriftyFaramir wrote: Sun Mar 24, 2024 4:24 pm Are there any other financial/tax implications which I should know about.
Property tax will be prorated to the time that you are the owner. This may mean that you have to give the buyers a credit for tax you've incurred but not paid. Or they may give you a credit for the opposite situation.
by boomer_techie
Mon Mar 25, 2024 12:36 am
Forum: Investing - Theory, News & General
Topic: VFWAX: 2023 1099-DIV reconciliation "increase to cost basis". what does this mean, exactly?
Replies: 39
Views: 5804

Re: VFWAX: 2023 1099-DIV reconciliation "increase to cost basis". what does this mean, exactly?

As I've written in other replies, my belief is that the "increase to basis / addition to basis" is not referring to cost basis. Decided to check my account: The EFAV was sold early this year, before any fund data reporting, and originally the transaction reporting listed the original purchase price(s). This has now been adjusted online! The cost basis increased proportionally across all lots. Hmm, if one wants to apply the cost basis adjustment by themselves, there may be multiple distributions, each one with a different increase/addition. EFAV, for example, made two distributions. The two payments were quite different, though the increase/addition was proportional to the distribution. If one held different numbers of shares at e...
by boomer_techie
Sun Mar 24, 2024 11:58 pm
Forum: Investing - Theory, News & General
Topic: VFWAX: 2023 1099-DIV reconciliation "increase to cost basis". what does this mean, exactly?
Replies: 39
Views: 5804

Re: VFWAX: 2023 1099-DIV reconciliation "increase to cost basis". what does this mean, exactly?

Request for help.   For those who were NOT reinvesting distributions, and only have covered share lots---began investing after 1 Jan 2012, required tracking of mutual fund began---could you please check your first lot (Vanguard's FIFO cost accounting) to see if its cost basis has been increased by Vanguard's reported amount.  If you find this to be true, then please tell us as it indicates how those of us with uncovered tax lots can handle this problem---which lot gets the increased cost basis.* I have had an "addition to basis" (as Schwab calls it) in 2020 for Vanguard VWO (ETF of VEMAX) and in 2023 for iShares EFAV (an ETF). The VWO shares were purchased in 2019, and the EFAV was purchased in 2013, 2021, and 2022. The cost basi...
by boomer_techie
Sat Mar 23, 2024 1:54 am
Forum: Personal Finance (Not Investing)
Topic: HSA reimbursement for first 7.5% of AGI
Replies: 9
Views: 842

Re: HSA reimbursement for first 7.5% of AGI

WeakOldGuy wrote: Sat Mar 23, 2024 1:44 am Say your AGI is $200k and you have medical expenses of $20k. 7.5% of $200k is $15k. So the first $15k of medical expenses can't be deducted, so the tax deduction would be $5k. Since that first $15k wasn't actually deducted, could HSA be funds be used to reimburse for those?
That $15k was deducted, it just didn't flow through to the bottom line. If you did reimburse that $15k, then you'd only have a $5k deduction which doesn't reach the 7.5% threshold.
by boomer_techie
Fri Mar 22, 2024 2:15 am
Forum: Personal Finance (Not Investing)
Topic: How does CA FTB calculate underpayment penalty automatically?
Replies: 1
Views: 332

Re: How does CA FTB calculate underpayment penalty automatically?

investlikebogle wrote: Thu Mar 21, 2024 9:00 pm I ran various options and best option for me is to use annualized income method, since the extra income is in 4th quarter and penalty will be calculated only for 15 days (Jan 15 - Jan 30).

I am using Taxact and there is an option for CA FTB to automatically calculate the penalty. Does anyone know if FTB will take into consideration the sale dates for capital gains to compute income for various quarters?
You'll need to fill in CA Form 5805 part III.

Your tax software could then fill in Worksheet II from the 5805 instructions, or I suppose you can let the state calculate the penalty and bill you.
by boomer_techie
Wed Mar 20, 2024 1:12 pm
Forum: Personal Consumer Issues
Topic: How does a landline phone decrease my bundle cost
Replies: 52
Views: 3327

Re: How does a landline phone decrease my bundle cost

In case of power outages, the Comcast service will be down as well. That means no VOIP. Over the last several years, Comcast in my area (not far from you) has added battery backup for (all) the switch gear. Thus the system will be up for a while when the power is out. If you have your own backup power source, you can remain online. Eventually the batteries do run out though... I also find it more comfortable to converse on a landline because it seems to provide a clearer connection (this is especially important when I am trying to understand the rapid speaking and accents of customer service reps). I believe that old POTS system has very low latency end to end. The phone switches preschedule a time slot all the way through for each byte/sa...
by boomer_techie
Wed Mar 20, 2024 12:35 am
Forum: Personal Finance (Not Investing)
Topic: 2023 Fidelity 1099 IXUS "Addition to Basis" handling for taxes
Replies: 7
Views: 806

Re: 2023 Fidelity 1099 IXUS "Addition to Basis" handling for taxes

Do nothing! There's nothing for you to do. Your 1099 numbers are already adjusted as needed. When I tried to resolve my transaction history vs. 1099 it appears: Total non QDI actually distributed + Total QDI actually distributed + Foreign tax in 1099 + addition to basis in 1099 supplement = Total ordinary dividends in 1099. Correct. For 2023 as a whole, IXUS paid you a distribution of $2.029913 per share. Total dividends are listed as $2.198965 per share. A difference of $0.169052 which you didn't receive. Of that, $0.166822 per share is classified as foreign tax paid. This leaves $0.00223 per share unaccounted for. That's the "addition to basis" portion. And for completeness, qualified dividends were $1.608057 per share. So, basi...
by boomer_techie
Sun Mar 17, 2024 9:32 pm
Forum: Personal Finance (Not Investing)
Topic: Annualized income estimated taxes: capital gains and capital loss carryover
Replies: 1
Views: 309

Re: Annualized income estimated taxes: capital gains and capital loss carryover

I haven't been able to find any guidance on how to account for the capital loss carryover when calculating annualized income for each quarter. Anyone have any thoughts? Apply it as if the whole amount is available on January 1st. Handle each 3, 5, 8, and 12 month interval as separate tax returns. One quarter you can itemize, the next you can take the standard deduction. One quarter the loss carryover can apply against ordinary income, the next it can be used up by a capital gain. Imagine someone who expected to make (increasing) quarterly estimated payments. They expect to handle taxes a certain way. But on April 1st they get laid off. With the drop in income, their tax situation totally changes. Perhaps the Q1 estimated payment is enough ...
by boomer_techie
Fri Mar 15, 2024 10:12 am
Forum: Personal Finance (Not Investing)
Topic: How best to make up for the failure to file a tax return
Replies: 38
Views: 2731

Re: How best to make up for the failure to file a tax return

mjhfx1 wrote: Thu Mar 14, 2024 9:36 pm Yes, I think I am being a little paranoid, but I just don't know if they use different addresses as a way to sort out different years (so each address deals with only returns for a certain year). I am curious as to why they change addresses if it is just one processing center for different years.
The different addresses are just to split the nationwide load between offices - and reduce the amount of mail going long distances. It isn't going to matter to which facility you send the tax return.

Note that the IRS has recently consolidated and/or closed some processing facilities. The increase in eFiling means fewer paper returns need to be processed.
by boomer_techie
Wed Mar 13, 2024 1:09 am
Forum: Investing - Theory, News & General
Topic: Reducing the impact of non-qualified (ordinary) dividends
Replies: 20
Views: 2964

Re: Reducing the impact of non-qualified (ordinary) dividends

I was never paying attention to when the dividend is being declared and buying it at random when ever cash is available. The net result is that when dividend is declared that year, it will NOT be qualified one which as you know is taxed at a much higher rate (wages). Assuming you buy and hold, then the timing of your purchase will not affect the qualified or not qualified status of dividends. For the fund's qualified dividends to be qualified for you, you merely need to hold the fund for 61 days out of a 121 day interval. The 61 days can be front loaded, back loaded, straddling calendar/tax years, or even in multiple intervals. There is however a different interaction between purchase date and dividend payment: The price of a fund climbs a...
by boomer_techie
Mon Mar 11, 2024 8:00 pm
Forum: Personal Consumer Issues
Topic: Wisdom of cross-country, one-way RV rental (with a cat)
Replies: 37
Views: 3145

Re: Wisdom of cross-country, one-way RV rental (with a cat)

warner25 wrote: Mon Mar 11, 2024 8:26 am [*] I could drive the RV with our two oldest kids and the cat being free to move around, use the litter box, etc. while my wife tails us in the minivan with our two younger kids (at least one of whom will be in a full carseat, which I think is problematic in an RV).
Don't be fooled by the "house" appearance of the RV interior. It is a moving vehicle and everybody should be secured with seatbelts. I wouldn't want kids to be free to move around in a moving RV.
by boomer_techie
Mon Mar 11, 2024 3:40 am
Forum: Personal Consumer Issues
Topic: SanFran - Redwoods - Henry Cowell? - Recent Info?
Replies: 4
Views: 847

Re: SanFran - Redwoods - Henry Cowell? - Recent Info?

Planning a week in San Francisco in May and looking for somewhere to go hiking for 3-4/5 moderate hours in the redwoods (will have car). There is tourist central with Muir-woods but was planning to drive down the coast maybe to Big Sur, so Henry Cowell jumped out as a good option heading south The main unit of Henry Cowell was not affected by the fire at all. The secondary unit (i.e. Fall Creek) would have had the containment line (i.e. controlled burn) through it. I don't know if Fall Creek is open, but if open, it might be an interesting hike to see how the forest recovers post burn. Neither unit is big enough for five hours of hiking. ( plus it's a bit away from the city daytrip crowds) . Hah! Um, not really. Expect the parking lot(s) t...
by boomer_techie
Sun Mar 10, 2024 1:14 am
Forum: Personal Consumer Issues
Topic: Experiences with special orders with Home Depot and Lowes
Replies: 16
Views: 1883

Re: Experiences with special orders with Home Depot and Lowes

I needed some tool equipment from Home Depot. These are standard stocked items - except when they've sold out. There is a significant quantity discount shown online. The sales clerks didn't tell any way to get the discount when purchasing in store. Therefore, I placed an online order with delivery to the store. I was expecting they'd do a normal warehouse delivery and set aside the quantity I needed... When I went to pick up the order, the items had tags on them showing they had been delivered via UPS. Maybe from some other store? Maybe the distribution center? Gee - I could have had them sent to my house at no extra cost. One of the items I ordered has a large steel casting. On two of the units, a large part of the casting was missing (bro...
by boomer_techie
Thu Mar 07, 2024 10:51 pm
Forum: Personal Finance (Not Investing)
Topic: Need advice on Home addition.
Replies: 21
Views: 1966

Re: Need advice on Home addition.

LittleMaggieMae wrote: Thu Mar 07, 2024 4:18 pm I'm assuming an architect - would be the person figures out where and how you should connect the addition to your home, lays out the foundation and sewerage for it, maybe comes up with a way to integrate the addition into the rest of the house (so it doesn't look like a "tumor" or a "growth").
Architect: Person who does high level planning. Hire an architect if you want your (new custom) home featured in Architectural Digest.

Draftperson: Person who draws plans. For simple additions, a draftperson is all you need. This person will know standard construction techniques.
by boomer_techie
Thu Mar 07, 2024 10:34 pm
Forum: Personal Finance (Not Investing)
Topic: What to do on NY taxes if I don't have a permanent home address?
Replies: 4
Views: 572

Re: What to do on NY taxes if I don't have a permanent home address?

erictaylor12299 wrote: Thu Mar 07, 2024 10:19 am Basically, where is your domicile if you have no permanent home? I am inclined to file as a full-year 2023 resident and just leave Permanent Home Address blank.
Do you have a driver's license? What entity (i.e. state) issued it?
by boomer_techie
Thu Mar 07, 2024 10:30 pm
Forum: Personal Finance (Not Investing)
Topic: How to be sure there are no capital loss carryover from 2022
Replies: 6
Views: 894

Re: How to be sure there are no capital loss carryover from 2022

HomeStretch wrote: Thu Mar 07, 2024 6:50 am If you used TurboTax for your 2022 Form 1040, check the capital loss carryforward worksheet (it’s not filed) and that will also show you the 12/31/22 carryforward amounts.
The carryover worksheet is in the Schedule D instructions. You'll want to look at the 202_3_ instructions (yes, the taxes you're now doing), though the worksheet doesn't ever materially change.
by boomer_techie
Thu Mar 07, 2024 3:24 am
Forum: Personal Finance (Not Investing)
Topic: Help with Section 199A Dividends and Form 8995
Replies: 15
Views: 1035

Re: Help with Section 199A Dividends and Form 8995

50/50 wrote: Wed Mar 06, 2024 6:04 pm I'm sorry but I did leave out one step. On 8995 Line 12 Add Schedule D Line 15 to 1040 Line 3A.
And one more "step": On 8995 line 12 add the smaller of Schedule D line 15 and Schedule D line 16, but not less than zero, to 1040 Line 3a.
by boomer_techie
Tue Mar 05, 2024 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: Missing transactions from 1099-B: File or wait?
Replies: 6
Views: 607

Re: Missing transactions from 1099-B: File or wait?

2qtornot2qt wrote: Tue Mar 05, 2024 8:45 am *Every one of those is a long-term sale of a fractional share of a precious metal ETF to cover operating expenses, and the basis is NOT reported to the IRS.
Schwab does not report the operating expense related actions for GLD, IAU, and likely all the other precious metal ETFs.
by boomer_techie
Mon Mar 04, 2024 6:44 am
Forum: Personal Consumer Issues
Topic: Undersizing whole house generator?
Replies: 62
Views: 4936

Re: Undersizing whole house generator?

Question: is there a way to safely provide automatic transfer switch power to only a portion of the house, eg. only select fuse panels to exclude all the pool/spa/steam/sauna equipment? Has anyone done this? Friends bought a house with an auto-switching piece-of-junk Generac system. That system had a separate panel mounted next to the main panel. Critical circuits were extended to new breakers in this extra panel. This way the critical circuits switch, while the rest don't. Why was it a piece of junk, you ask: The relay armature is made of plastic. If a large load is run through the relay, the wires in the relay get hot. They are clipped to the plastic, which melts. The knife edge of the plastic is used as a bearing surface. Once it melts ...
by boomer_techie
Sun Mar 03, 2024 11:21 pm
Forum: Investing - Theory, News & General
Topic: TD Ameritrade to Schwab
Replies: 161
Views: 13777

Re: TD Ameritrade to Schwab transition - how was it for you?

comeinvest wrote: Sun Mar 03, 2024 8:59 pm I think Schwab doesn't show cost basis for stocks that are "non-covered", i.e. for which cost basis is not reported to the IRS because they were bought before Jan 1st 2011.
I have stocks at Schwab that I purchased in 1994. The cost basis is shown. When sold, the 1099 shows box E "cost basis not reported to IRS."
by boomer_techie
Sat Mar 02, 2024 7:11 pm
Forum: Investing - Theory, News & General
Topic: Research on primary residence vs stock market+renting?
Replies: 51
Views: 5226

Re: Research on primary residence vs stock market+renting?

hiddenpower wrote: Sat Mar 02, 2024 8:14 am Curious if there's any academic research out there on the optimal choice between buying a typical primary residence versus investing in a broad index and renting.
In a same:same comparison, expect the cost to rent to equal the cost to buy. If these get out of equilibrium, market forces will push them back. Therefore, a buyer and a renter will both have the same funds available for investing.
by boomer_techie
Fri Mar 01, 2024 2:08 am
Forum: Personal Finance (Not Investing)
Topic: Newbie to Estimated Taxes
Replies: 9
Views: 1326

Re: Newbie to Estimated Taxes

To make updates for 2024, would I need to basically update the tax table sheet in that spreadsheet? Any other changes? I haven't looked at it in a few years. I forget if the author precomputes the tax table, or if the table is computed from tax rates. The IRS document only lists the tax brackets and rates. A tax table can be computed knowing the rates - it is the tax on the amount in middle of each slice. You also need to update various constants. Such as the standard deduction, bend points for capital gains and AMT, and so on. So do 4 tax returns with income earned so far/deductions so far? Or assume the income earned/deductions will remain steady for the year and simply pay a percentage of assumed total tax? I need to read some more foru...
by boomer_techie
Thu Feb 29, 2024 9:35 pm
Forum: Personal Finance (Not Investing)
Topic: Newbie to Estimated Taxes
Replies: 9
Views: 1326

Re: Newbie to Estimated Taxes

Where should I start in order to figure out if I need to pay any estimated taxes on their behalf and how much? I like spreadsheets, but any tips/tricks people have to offer would be appreciated. You like spreadsheets? :twisted: Take a look at the Excel spreadsheet recreation of the IRS 1040 forms: https://sites.google.com/view/incometaxspreadsheet/home The IRS has published the 2024 tax constants and rates. Search online for the file name of "rp-23-34.pdf", i.e. Revenue Procedure #34 published in 2023. Using these, you can update the Excel sheets to 2024 level. (Of course the forms will still be at the 2023 level, i.e. they won't reflect any legislative changes.) The general solution for 2210 with varying income/deductions is to ...
by boomer_techie
Thu Feb 29, 2024 12:55 pm
Forum: Personal Consumer Issues
Topic: Sending foreign currency (Chinese Yuan) intra-US?
Replies: 14
Views: 1607

Re: Sending foreign currency (Chinese Yuan) intra-US?

Why Certified? It won't protect you in any way. The USPS won't insure currency. Sending family member to family member you don't need any form proof of shipping or receipt. At most, use Priority Mail to get prompt shipping and the free tracking.
by boomer_techie
Sun Feb 25, 2024 11:57 pm
Forum: Personal Finance (Not Investing)
Topic: Estimated taxes - W2 & K1
Replies: 9
Views: 1138

Re: Estimated taxes - W2 & K1

rts58 wrote: Sun Feb 25, 2024 6:23 pm Assuming MFJ, my understanding is that since you have some withholding the amounts of each of the quarterlies doesn't really matter as long as you have the right amount in total at the end.
The timing of actual withholding doesn't matter. However, if there is a shortfall, that portion still needs to be paid in a timely manner each quarter.

Some people's shortfall is small enough that they can boost withholding for the year's final paycheck or two. Or they can arrange a large withholding of a late year IRA withdrawal.

The OP appears to part of high earning dual income couple. Withholding from one of those incomes isn't going to be enough to cover both incomes.
by boomer_techie
Sun Feb 25, 2024 11:48 pm
Forum: Personal Finance (Not Investing)
Topic: Estimated taxes - W2 & K1
Replies: 9
Views: 1138

Re: Estimated taxes - W2 & K1

Example: Imagine I expect tax bill to be 100k for 2024. Calculations say pay 25k 4 times. Come May, I realize it will be a great year and my tax bill may be 120k. I should just be able to write a check for 35k to get me to 60k for the correct mid-year estimated tax total of 60k. Is it as simple as that? Yes, it is as simple as that. Until tax time. At that point you'll have to file forms showing that each tax quarter's payments match the income through that quarter. Some of us find filing Form 2210 Schedule Annualized Income to be fun. Others of us run screaming in panic in response to 2 2 1 0. If you expect your income is constantly increasing, you can use the safe harbor of 110% (100% for lower earners) of the previous year's total tax. ...
by boomer_techie
Thu Feb 22, 2024 3:34 am
Forum: Personal Finance (Not Investing)
Topic: Itemize vs standard deduction for 2023 tax
Replies: 4
Views: 868

Re: Itemize vs standard deduction for 2023 tax

If I take standard Deduction, I will lose about $2400 federal refund . If I take itermized deduction, will get $2400 extra federal return,but I’m afraid my state tax refund ( 30,000) will be taxed again in 2025, but not 100% sure it’s true . I think I’m in 32% tax bracket.. what should I choose? If you are getting a $30,000 state refund, then you must be paying quite a lot of state tax. Thus, you undoubtedly hit the $10,000 SALT (State and Local Tax) limit when itemizing deductions. Even reducing the state payments by the refund likely has your deduction pinned at the SALT limit. If so, then you won't get taxed on the state refund - because you essentially weren't able to deduct it in the first place. Check what your tax program is putting...
by boomer_techie
Wed Feb 21, 2024 12:59 pm
Forum: Personal Finance (Not Investing)
Topic: Sched A - TT reducing state income tax by refund???
Replies: 5
Views: 682

Re: Sched A - TT reducing state income tax by refund???

I understand that most ($327) of the $360 refund applies to the 2022 state payment I made in 2023. But Sched A Line 5a instructions explicitly say "Don't reduce your deduction by any...refund of...prior year state and local income taxes you actually received in 2023." So why are you and TT saying that I should do so? Because a portion of the refund is of "current year" tax payments. It is a refund of a payment that you are only now deducting. The IRS could have handled this in two ways: 1) Reduce the deduction you take in April 2024. or 2) In April 2024, deduct all state payments you made in 2023. Then, in April 2025, recognize a portion of the state refund as taxable income. The IRS wants to handle this sooner than lat...
by boomer_techie
Tue Feb 20, 2024 10:10 pm
Forum: Personal Finance (Not Investing)
Topic: Do qualified + nonqualified dividends = ordinary dividends?
Replies: 55
Views: 4704

Re: Do qualified + nonqualified dividends = ordinary dividends?

Aguilar wrote: Tue Feb 20, 2024 2:43 pm I received a corrected 1099 once in my life, and it was only provided bc I found an error in the original 1099 and notified the company that issued it.
It is common to get corrected (or at least delayed) 1099's when one holds REITs. I believe the REITs can't issue final numbers until they themselves receive 1099's for some of their holdings.
Curious how often tax software has issues come tax filing season. Do we know how pervasive this problem is or is it more an urban legend? If one of these software makers finds issues, they are obligated to notify all their customers.
Peruse this forum's threads to find numerous threads about problems with tax programs. Every year there are problems.
by boomer_techie
Tue Feb 20, 2024 9:55 pm
Forum: Personal Finance (Not Investing)
Topic: Sched A - TT reducing state income tax by refund???
Replies: 5
Views: 682

Re: Sched A - TT reducing state income tax by refund???

I received a 1099-G for $360 received in 2023 for refund of overpayment of 2022 state taxes. TT correctly determined that the $360 is not taxable income, since we didn't itemize in 2022. Yet it is reducing the total amount of state taxes paid on my 2023 Sched A Line 5a by a pro-rated amount of this refund. Did you make any estimated or extension payments of 2022 taxes in 2023? Your issue would happen to me "every" year until the SALT limit was imposed. California collects "use tax" via the state income tax forms. This gets treated as a refund - because the tax year's total payments are more than the income tax itself. Because I had tax payments in both the old and new year, I had to prorate the faux refund across all pa...
by boomer_techie
Sun Feb 18, 2024 10:33 pm
Forum: Investing - Theory, News & General
Topic: VFWAX: 2023 1099-DIV reconciliation "increase to cost basis". what does this mean, exactly?
Replies: 39
Views: 5804

Re: VFWAX: 2023 1099-DIV reconciliation "increase to cost basis". what does this mean, exactly?

If adjusting the cost basis turns out to be the correct approach, it can be done quite easily using IRS Form 8949. I don't think there's anything that needs to be done. Just trust the numbers on your 1099-DIV and 1099-B. I own VEU the ETF share class of VFWAX. I didn't see any hint of "increase to cost basis" in any of my tax documents for my VEU shares. The number might be very small. I checked several year's of Vanguard data: There's no "increase" in 2019, 2021, nor 2022. In 2020, it is $0.000198 per share held the whole year. In 2023 it is $0.006726 per share. This year I have 38 cents of this type of adjustment (for a different fund.) That would only be noticeable when diligently adding up all the supplied numbers. ...
by boomer_techie
Sat Feb 17, 2024 7:48 pm
Forum: Investing - Theory, News & General
Topic: VFWAX: 2023 1099-DIV reconciliation "increase to cost basis". what does this mean, exactly?
Replies: 39
Views: 5804

Re: VFWAX: 2023 1099-DIV reconciliation "increase to cost basis". what does this mean, exactly?

So you're suggesting: distribution + foreign tax + increased cost basis = total dividends. (?) In this case involving VFWAX, yes. VFWAX paid you distributions of $1.1452 per share. This is the amount that shows up on your (monthly) statements. Ordinary dividends (you'll be paying tax on this) are $1.204429. This breaks down to $1.1452 plus $0.059229 labeled as foreign tax paid. On the 1099 box 7, foreign tax paid (which you'll use on Form 1116 et. al.) is just $0.055095. The "increase in cost basis" is the difference between $0.059229 and $0.055095. So we're paying the tax now on the portion of total dividends represented by increased cost basis on reinvested shares. I could live with that... assuming we get an equivalent tax ben...
by boomer_techie
Sat Feb 17, 2024 2:55 am
Forum: Investing - Theory, News & General
Topic: VFWAX: 2023 1099-DIV reconciliation "increase to cost basis". what does this mean, exactly?
Replies: 39
Views: 5804

Re: VFWAX: 2023 1099-DIV reconciliation "increase to cost basis". what does this mean, exactly?

Asked Vanguard CSR to explain 1099DIV box 1a dividends being larger than what I'd received. I was just (minutes ago) looking at data for iShares EFAV which also received a "addition to basis / increase to cost basis." I found how this funny amount is hidden in the data table. Was told to see Vanguard's statement of "increase to cost basis".  Okay, I understand ...those tax lots get an increased cost basis and I'll benefit when I later sell the shares.  Got it. But I did understand the "return of principal" concept; which should not be taxable. Applying a return of principal to increase our cost basis makes sense that we'd be able to deduct the payment later when we sold the tax lots. Note that "increase t...
by boomer_techie
Fri Feb 16, 2024 10:57 am
Forum: Personal Finance (Not Investing)
Topic: Accountant asked for $3000 to be applied to estimated tax--but on tax receipts I see IRS only applied $1000?
Replies: 10
Views: 708

Re: Accountant asked for $3000 to be applied to estimated tax--but on tax receipts I see IRS only applied $1000?

Macaroni2314 wrote: Fri Feb 16, 2024 10:00 am Was this a mistake someone at the IRS made?
Years ago I was due a tiny refund - maybe $10. I checked the box to apply it to the next year's taxes. Instead, once the IRS processed the return, I received a refund check for the tiny amount.

So yes, the IRS can make mistakes. Especially with that part of a tax return - the relevant area is out of the normal flow of numbers.
by boomer_techie
Fri Feb 16, 2024 10:47 am
Forum: Personal Finance (Not Investing)
Topic: Qualified dividends are they taxed lower without schedule D?
Replies: 7
Views: 831

Re: Qualified dividends are they taxed lower without schedule D?

rkhusky wrote: Thu Feb 15, 2024 9:16 pm To clarify, the worksheet in the 1040 instructions is called the Qualified Dividends and Capital Gain Tax Worksheet. The worksheet in the Schedule D instructions is called the Schedule D Tax Worksheet.
And FYI, the Schedule D Tax Worksheet is just a superset of the Qualified Dividends and Capital Gain Tax Worksheet. Both calculate the same number if you don't need the extra features of the "D" version.
by boomer_techie
Thu Feb 15, 2024 11:16 am
Forum: Personal Finance (Not Investing)
Topic: Schwab not generating 1099-B for stock sales
Replies: 14
Views: 2143

Re: Schwab not generating 1099-B for stock sales

hamhocs wrote: Thu Feb 15, 2024 6:26 am There is another section earlier in the 1099 Composite with this heading:

Proceeds from Broker Transactions __ 2023

that says it is reported to the IRS. All of the info looks the same in both sections including the amounts.
Notice that the OP reports that all transactions are listed with box C or F? Those are the codes for transactions that haven't been reported at all to the IRS. For example, the bar of gold you sold to your work buddy, or the bitcoin you used to buy pizza.

Could it be that the OP's broker doesn't have their SSN? Maybe the broker thinks the OP is a foreigner not subject to US taxes?
by boomer_techie
Wed Feb 14, 2024 8:30 am
Forum: Investing - Theory, News & General
Topic: Schwab 1099s are posted!
Replies: 2
Views: 503

Re: Schwab 1099s are posted!

samsoes wrote: Wed Feb 14, 2024 8:11 am FYI, Schwab Consolidated 1099s for 2023 have finally posted! :sharebeer
I was checking investments yesterday evening - decided to see if 1099's had posted: That page took a while to load, and then said "This functional not available at this time." I suspected something was being prepared. Just before going to bed, I checked again. Bingo! I then stayed up several more hours updating my tax spreadsheet. Unlike last year, I didn't find any errors in Schwab's data.
by boomer_techie
Tue Feb 13, 2024 7:20 pm
Forum: Personal Finance (Not Investing)
Topic: Free File Fillable Form Computer Requirement Questions on Mac
Replies: 7
Views: 637

Re: Free File Fillable Form Computer Requirement Questions on Mac

Random Poster wrote: Tue Feb 13, 2024 4:47 pm Or does the IRS not consider an iPad to be a mobile device?
Apple's Safari on iPadOS does not consider the iPad to be a mobile device! In other words, Safari lies to web sites, telling them it is running on a Mac. Thus, the user gets the web site's desktop/laptop experience, not the site's mobile phone version.
by boomer_techie
Sat Feb 10, 2024 1:57 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Underpayment Penalty Question
Replies: 26
Views: 3427

Re: Tax Underpayment Penalty Question

travsmill wrote: Sat Feb 10, 2024 1:20 pm Where is this lumpy income form?
Form 2210 Schedule AI (which is on page 3 of the 2210.
by boomer_techie
Sat Feb 10, 2024 7:20 am
Forum: Personal Finance (Not Investing)
Topic: Fidelity Tax Documents
Replies: 15
Views: 1749

Re: Fidelity Tax Documents

hoofaman wrote: Sat Feb 10, 2024 4:59 am It's usually not until mid or end of Feb that I get all my 1099s, I thought one reason waa because they have to wait 60 days after my last dividend was issued to determine if it's qualified or not based on the holding period of that etf
The amount listed as a qualified dividend on the 1099's is not adjusted by your holding period. It is merely based on the payer's declarations. If you did not meet the holding period, you need to reduce the amount when entering it on your 1040.
by boomer_techie
Sat Feb 10, 2024 7:10 am
Forum: Personal Finance (Not Investing)
Topic: Help needed: Question regarding upcoming 2023 estimated taxes situation
Replies: 26
Views: 2619

Re: Help needed: Question regarding upcoming 2023 estimated taxes situation

BrandonBogle wrote: Sat Feb 10, 2024 4:11 am Any thoughts on if this is the pay period dates or the check date? If I got a paycheck on 4/21 that was for the pay period ending on 4/14, would that be Q1 because of the pay period or Q2 because of the date its paid to me?
Q1 ends on 3/31. The IRS then gives "fifteen" days to submit a tax payment. With your pay period ending after 3/31, and the check date being after the fifteen days, I'd say this paycheck is decidedly in Q2.
by boomer_techie
Thu Feb 08, 2024 6:44 am
Forum: Personal Finance (Not Investing)
Topic: Tax question California Schedule CA (540)
Replies: 3
Views: 848

Re: Tax question California Schedule CA (540)

I am also not above the income threshold where it seems like you are required to itemize deductions in California (though you take the standard deduction if your itemized deductions are less). One isn't required to itemize above that threshold. Instead, itemized deductions get phased out above that threshold. That's what the worksheet takes care of. On the California 540, Turbotax enters 0 on the lines 14 and 16 for adjustments to federal income, so I'm having trouble understanding why the software would generate this schedule that it seems like I don't need to file. So your Schedule CA ends in essentially all zeroes? What harm is there in adding it to the mailed return - or not? Turbotax is likely generating it for your records. For many ...
by boomer_techie
Thu Feb 08, 2024 12:28 am
Forum: Personal Finance (Not Investing)
Topic: Tax question on the sale of a house as part of an estate
Replies: 8
Views: 966

Re: Tax question on the sale of a house as part of an estate

ccieemeritus wrote: Wed Feb 07, 2024 9:22 pm I1) The cost basis for the house "stepped up" at death to the fair market value at time of death which you estimate $485k. Keeping some documentation of that would be helpful (Redfin/Zillow estimate, appraisal, realtor estimate, something).
My understanding is that upon death it stepped up to the fair market value - and that if it is sold in a timely manner, the eventual selling price is a good determiner of that fair market value. An actual sale is a far better determiner of value than someone's opinion (i.e. appraisal.)
by boomer_techie
Tue Feb 06, 2024 9:25 pm
Forum: Personal Finance (Not Investing)
Topic: Deceased income tax qualified dividend pro-ration?
Replies: 5
Views: 642

Re: Deceased income tax qualified dividend pro-ration?

The year-end 1099 shows Total Dividends, Qualified Dividends and other boxes like Section 199A Dividends. The monthly statement shows Dividends paid, but doesn't further qualify them. Is this something I should try to work out from how long each dividend-paying security has been held? Other ideas? Search the fund companies for something called an "ICI Primary Layout". Some firms call it slightly different. This file might also be tucked away / locked away in an "advisors" section of their web site. This file will list every distribution and will break those down into the specific categories. (The listed values are per share - you'd need to multiply by the number of shares held at each ex-date.) Usually, but not always, ...