Search found 184 matches

by FinanceDoctor
Tue Jan 16, 2024 6:42 pm
Forum: Personal Finance (Not Investing)
Topic: Teacher early retirement insurance considerations
Replies: 56
Views: 6910

Re: Teacher early retirement insurance considerations

A few thoughts: -I would do some analysis of local teachers contracts. With the current teacher shortage, you might find a job at a neighboring district with health insurance in retirement (at least until 65). Analyze their salary schedules against yours and what your pension hit would be. Possibly the pension hit would be worth it for health in retirement. -With the current teacher shortage, you might be able to negotiate a higher starting rate or additional steps. If you are in a high demand area, you can almost surely accomplish this. Many teachers are using the shortage to get substantial increases when moving from district to district. -With two pensions, you'll likely earn too much to qualify for ACA subsidies so your 50% share of the...
by FinanceDoctor
Sun Jan 07, 2024 9:02 am
Forum: Personal Consumer Issues
Topic: Enormous Property Tax Increase
Replies: 66
Views: 9652

Re: Enormous Property Tax Increase

I just received my property tax bill for Q4 2024. I was taken back by the increase from last quarter. My quarterly tax jumped by 18.2%. I looked up data for the town, which indicated that the average bill increased by only 7.7%. I did nothing to improve my property over the past year. I plan to contact the assessor tomorrow. Does anyone have advice beyond my just asking them to justify the large increase? You are neglecting a lot of key details that could be impacting this outcome: -Were your neighbors home reassessed more recently due to a sale or improvement and thus their existing assessments were more accurate than yours? -Are you a part of any special taxing districts that they are not? (fire, sewer, recycling, etc..) -You mentioned q...
by FinanceDoctor
Wed Jan 03, 2024 5:33 am
Forum: Personal Finance (Not Investing)
Topic: Primer on Paying Taxes With a Credit Card
Replies: 871
Views: 162086

Re: Primer on Paying Taxes With a Credit Card

Basic question but can one just prepay federal taxes and if one eventually overprepay one can get a refund on April 15? For example when I expect to owe taxes on April 15. If yes then it may make sense to use higher cash back credit card deals to prepay say starting 6 months prior to April 15 deadline. In general, yes. Your refund comes some time after you file, not on April 15. Also, there are many data points of current year payments being somewhat delayed in the refunds processing. You might try to get in any payments before January 15 as estimated payments in order to increase odds of a faster refund. The US tax system is a pay as you go system. However, if you have W2 withholdings, they are considered as spread equally over the course...
by FinanceDoctor
Tue Jan 02, 2024 3:24 pm
Forum: Personal Consumer Issues
Topic: Recommended Apple Watch Bands?
Replies: 11
Views: 1157

Re: Recommended Apple Watch Bands?

Sport Loop. I've tried them all and nothing beats it.
by FinanceDoctor
Sun Dec 17, 2023 2:09 pm
Forum: Personal Consumer Issues
Topic: London Paris Amsterdam Trip - Need Advise
Replies: 41
Views: 6422

Re: London Paris Amsterdam Trip - Need Advise

I'm thinking of adding Belgium on my route from Paris to Amsterdam. I don’t mean to burst your bubble but this is an awful idea. You are already cramming in way too much into a short trip and will end up regretting this decision. The best travel advice I have is to always plan as if you’ll have the chance to go back to the city/country/continent. You can get back to Europe again. Don’t plan this trip as if it is the only time you’ll be on the continent unless you want to make it a three month trip. In ten days, two cities is the most you should consider. A week in London gives you time to see and learn London, get over jet lag and possibly do one day trip to a location you might want to see (bath, Cotswalds, Stonehenge, etc…) then you woul...
by FinanceDoctor
Sat Dec 16, 2023 1:35 pm
Forum: Personal Consumer Issues
Topic: London Paris Amsterdam Trip - Need Advise
Replies: 41
Views: 6422

Re: London Paris Amsterdam Trip - Need Advise

Having done all of these cities multiple times (along with a trip where we tried to fit in multiple of these cities in a short time frame like yours), I would STRONGLY recommend against doing all three of these. Personally, I would advise on skipping Amsterdam. Your travel days will really cut down on your time in each city. I would only add on Paris if you're willing to do so for two-three days and know that you won't see everything. If you prefer Amsterdam to Paris that is fine but skip the train and hop on a quick flight. Most airlines allow open jaw round trip tickets (Fly LAX - LHR and AMS - LAX) on a round trip ticket. Keep in mind that unless you're flying business class and sleeping well, you'll be quite jetlagged and tired on at le...
by FinanceDoctor
Sun Sep 17, 2023 5:42 pm
Forum: Personal Investments
Topic: Smart use of $400k home sale proceeds we don’t need for retirement center we’re moving to
Replies: 4
Views: 936

Re: Smart use of $400k home sale proceeds we don’t need for retirement center we’re moving to

Others will chime in with more substantive answers.

However, if you question how your advisor will advise you regarding 28% of your investment holdings, I think it raises questions regarding whether you should be trusting them with the other 72%.
by FinanceDoctor
Sun May 07, 2023 2:57 pm
Forum: Personal Finance (Not Investing)
Topic: AMEX Plat - 150,000 points
Replies: 23
Views: 3627

Re: AMEX Plat - 150,000 points

Just saw this offer on the regular AMEX Plat - 150k points for 6k spend in 6 months. This is the highest I can remember for AMEX Plat. Interestingly, the Schwab version still at 80k welcome offer. I'm have been debating AMEX Plat for ages, but not sure we travel often enough to make it worthwhile. The highest SUB for AMEX Platinum was during the pandemic and was 500k points. 125k for $6k in 6 months, and 15x on up to $25,000 spend at "small businesses" for 12 months. You might be mistaken... https://www.uscreditcardguide.com/amex-platinum-card/ No, I'm not. https://frequentmiler.com/buying-a-car-with-a-credit-card-how-i-drove-away-with-half-a-million-points/ The SUB is clearly not 500k on this. The SUB was 125k plus an additional...
by FinanceDoctor
Sun May 07, 2023 2:43 pm
Forum: Personal Finance (Not Investing)
Topic: AMEX Plat - 150,000 points
Replies: 23
Views: 3627

Re: AMEX Plat - 150,000 points

Jags4186 wrote: Sun May 07, 2023 2:40 pm
adave wrote: Sun May 07, 2023 1:16 pm Just saw this offer on the regular AMEX Plat - 150k points for 6k spend in 6 months. This is the highest I can remember for AMEX Plat.

Interestingly, the Schwab version still at 80k welcome offer.

I'm have been debating AMEX Plat for ages, but not sure we travel often enough to make it worthwhile.
The highest SUB for AMEX Platinum was during the pandemic and was 500k points. 125k for $6k in 6 months, and 15x on up to $25,000 spend at "small businesses" for 12 months.
You might be mistaken... https://www.uscreditcardguide.com/amex-platinum-card/
by FinanceDoctor
Sun Apr 30, 2023 3:06 pm
Forum: Personal Finance (Not Investing)
Topic: Does it ever make sense not to take the joint and survivor pension option?
Replies: 62
Views: 7027

Re: Does it ever make sense not to take the joint and survivor pension option?

Another option is to price out term life insurance for her that would provide a benefit large enough for you to create the income her pension would have otherwise created.

In NY, teachers regularly take the single life option but purchase 30 year term in the year of retirement. If the pensioner is in good health, the term insurance (covering ages 55-85) usually costs less than the corresponding reduction to their pension.
by FinanceDoctor
Fri Feb 25, 2022 7:36 am
Forum: Personal Investments
Topic: Roth Conversion or Roth Contribution
Replies: 13
Views: 1448

Re: Roth Conversion or Roth Contribution

What we’re missing here is a sense of OP’s age/ where they are in their working years, the percentage of their portfolio in tax-deferred, and percentage of their portfolio in Roth (implying the rest is in Taxable). For example, if their tax-deferred will be in the millions after they retire, they will likely NEVER be able to convert it all while staying in or below current tax brackets. But, if they have about the same value in each and Roth is invested in stocks and tax-deferred is in bonds, the Roth should naturally grow faster and the fixed income in tax-deferred can be added to each year. You raise many insights. I am 36. Likely retiring at 56 (pension likely to be in the low $100s). Currently, 23% of my retirement investments are in R...
by FinanceDoctor
Thu Feb 24, 2022 11:14 am
Forum: Personal Investments
Topic: Roth Conversion or Roth Contribution
Replies: 13
Views: 1448

Re: Roth Conversion or Roth Contribution

Silk McCue wrote: Thu Feb 24, 2022 6:38 am I would perform the conversion and never look back. Rates go back up in 2026 when TCJA expires anyway. We are 61/63 retired for one year and performed most of our conversions in the 12% bracket but went to the the top of the 22% bracket on our final conversion a couple of years ago. I don’t regret that move one bit. If you can find a way to also fund the Roth by hook or crook I would do that as well.

Cheers
Thank you for your insights.
by FinanceDoctor
Thu Feb 24, 2022 6:50 am
Forum: Personal Investments
Topic: Roth Conversion or Roth Contribution
Replies: 13
Views: 1448

Re: Roth Conversion or Roth Contribution

RubyTuesday wrote: Thu Feb 24, 2022 6:47 am Depending on account holdings, you may have less to convert today and uncle Sam can share the loss with you.
Yes, the timing of the question today is certainly on my mind. While I definitely don't time the market, my failure to perform this conversion a couple of years ago has been annoying me.
by FinanceDoctor
Thu Feb 24, 2022 6:29 am
Forum: Personal Investments
Topic: Roth Conversion or Roth Contribution
Replies: 13
Views: 1448

Roth Conversion or Roth Contribution

Based on our budget and available funds, we have the choice of funding two Roth IRAs ($6k each, $12k total) or converting an old Traditional IRA (around $46k balance) to a Roth IRA and using those same $12,000 to pay the federal and state taxes on the conversion.

We are both 36. Federal tax rate is 22%. Anticipate Federal Tax Rate in retirement will be higher than current (large pension potential).

Currently, around 25% of our retirement accounts are in Roths. Moving forward, we will continue to max 457b and 403b each year along with likely Roths for each of us each year.

Any thoughts to assist me in making this decision?
by FinanceDoctor
Fri Dec 31, 2021 2:57 pm
Forum: Personal Consumer Issues
Topic: Furnace just died - home warranty?
Replies: 92
Views: 8136

Re: Furnace just died - home warranty?

Before a recent furnace replacement, I kept a spare ignitor sitting on top of the furnace and it came in handy over the years. You might want to order a replacement to keep on hand.
by FinanceDoctor
Sat Dec 18, 2021 9:39 am
Forum: Personal Finance (Not Investing)
Topic: F.I.R.E?
Replies: 210
Views: 18595

Re: Fire?

As everyone has said, you have a lot of options. Just to add another thought or two (as someone who knows about NYSTRS)... Schools in NY are struggling to fill positions. You could absolutely find another position and leave your current position. This could be teaching or any other mid-level position in a District that doesn't require administrative certification. What about doing mid-level work at a BOCES or curriculum work for a larger district? Another option is to transition to another position that maintains your status in the pension system (TRS or ERS) but does not require instruction. With your skillset, have you thought about being a District Treasurer or transitioning into a position in a District's Business Office? While many of ...
by FinanceDoctor
Sat Dec 11, 2021 5:10 pm
Forum: Personal Consumer Issues
Topic: Anyone buys Southwest points
Replies: 7
Views: 933

Re: Anyone buys Southwest points

Southwest is the fringe case where it may make sense to do this under the correct circumstances. Occasionally, they offer points with a 75% bonus which makes this more enticing. I have done this when I needed several hundred points to top off a booking. The other variable with Southwest is that points bookings are refundable to points. Cash bookings refund as a travel credit where you only have 12 months to use the funds. I view the points as a bit more flexible.
by FinanceDoctor
Sun Feb 14, 2021 7:46 am
Forum: Personal Investments
Topic: Naming Beneficiaries for Retirement Accounts
Replies: 14
Views: 1664

Re: Naming Beneficiaries for Retirement Accounts

Whatever you do, make sure there is consistency between your will and your listed beneficiaries.

I'm sorting through a situation now where the assets were supposed to go to a group of parties according to the will but the deceased named beneficiaries on all of her accounts ("to try to help speed up the process and avoid probate") that were inconsistent with the will. It is a mess.
by FinanceDoctor
Sat Feb 23, 2019 12:55 pm
Forum: Personal Finance (Not Investing)
Topic: State and Property tax deduction - how to get
Replies: 13
Views: 953

Re: State and Property tax deduction - how to get

If you take the standard deduction, you do not itemize and thus do not take a deduction for property taxes or state income taxes.

If this is all new to you, it may be worth spending some time looking at and walking through the actual tax forms. They will help you understand how basic tax concepts work.
by FinanceDoctor
Sun Feb 17, 2019 7:32 am
Forum: Personal Consumer Issues
Topic: Jet Blue - missing planes?
Replies: 19
Views: 2554

Re: Jet Blue - missing planes?

One issue that I have not seen mentioned is that JetBlue typically does not have enough planes to substitute out an aircraft if there is a delay earlier in the day. When flying Jetblue, I often track my incoming aircraft and backtrack it several flights in the day to see if it has been delayed earlier in the day because I know that my flight will then be delayed if they can't make up the time.

Because they don't use the hub and spoke method, swapping aircraft is a more challenging task (unless you're flying through BOS or JFK).

Even with this, I'll still pick Jetblue over just about anyone else for Domestic travel.
by FinanceDoctor
Sun Jan 27, 2019 7:59 am
Forum: Personal Consumer Issues
Topic: Maximum Travel Distance for Elementary, Middle and High School
Replies: 24
Views: 4655

Re: Maximum Travel Distance for Elementary, Middle and High School

You also have to weigh the potential that the charter school closes. They are a relatively new creation and we do not know how long they will last or if a political shift (federal, state or local) could cause them to go away.

As an aside, I would not want to pick the school my child attends based on test scores. Test scores say a lot about: 1) The types of family backgrounds the children have who attend the school and 2) The amount of time the school spends on test prep. I don't want my child to be an expert at scoring a 4/4 on a writing rubric or an expert at multiple choice testing.
by FinanceDoctor
Sun Jan 27, 2019 6:57 am
Forum: Personal Finance (Not Investing)
Topic: $158k Income and 0 federal income tax
Replies: 40
Views: 8367

Re: $158k Income and 0 federal income tax

jdilla1107 wrote: Sat Jan 26, 2019 2:20 pm
KlangFool wrote: Sat Jan 26, 2019 11:22 am
JoeJohnson wrote: Sat Jan 26, 2019 11:12 am $4k is not refundable. It's capped at $1.4k per child.
You are right.

KlangFool
This credit seems complicated based on this and seeing it get reduced based on the amount that I owe.

I think I'm back to not being interested into how any of this works and just running what-if scenarios. :-)
Also complicated based on the fact that it shows up on two different lines on the 1040 tied to two different forms/worksheets.

Line 12a - Comes from the Child Tax Credit Worksheet.

Line 17 - Comes from form 8812 and is the refundable portion.

I can't imagine trying to do my taxes this year by hand and without software.
by FinanceDoctor
Sat Nov 03, 2018 8:41 am
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion - Confirming Tax Analysis
Replies: 10
Views: 989

Re: Roth Conversion - Confirming Tax Analysis

Assuming MFJ and assuming the $105,000 is base salary (before all the pre-tax pay stub deductions) and assuming the $80,000 is after all the pre-tax pay stub deductions, yes ... it looks right to me. If there are any qualified dividends or long term capital gains involved in the $105,000, then things could be a little different. If there is something more exotic like a personal business that qualifies for the new 20% deduction for pass through business income, then that changes things. (Or whatever that new 20% pass-through deduction thingy is called ... I'm barely aware that it exists, but FiveK did a marginal tax graph for a Roth conversion for another poster recently that turned out to have a lot of surprises due to the poster being eli...
by FinanceDoctor
Sat Nov 03, 2018 8:35 am
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion - Confirming Tax Analysis
Replies: 10
Views: 989

Re: Roth Conversion - Confirming Tax Analysis

retiredjg wrote: Sat Nov 03, 2018 8:32 am What's an EV credit?
Electric Vehicle
by FinanceDoctor
Sat Nov 03, 2018 7:52 am
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion - Confirming Tax Analysis
Replies: 10
Views: 989

Re: Roth Conversion - Confirming Tax Analysis

jebmke wrote: Sat Nov 03, 2018 7:34 am Where are you deducting health insurance premiums -- are you self-employed?

Typically, I advise people to do a pro-forma tax return using tax software to fine-tune roth conversion amounts. This is especially critical since they eliminated recharacterization.
Health Insurance premiums withheld by employer through 125 cafeteria plan.
by FinanceDoctor
Sat Nov 03, 2018 7:08 am
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion - Confirming Tax Analysis
Replies: 10
Views: 989

Roth Conversion - Confirming Tax Analysis

I'm going to be doing a Roth Conversion (from a rollover IRA) this year and want to confirm my analysis of the tax impact. I am using rounded numbers for easier analysis.

Total Income - $105,000
Taxable Income - $80,000 (After accounting for Health Insurance Premiums, HSA/403 contribution)
Taking Standard Deduction - $56,000 (Taxable income minus $24,000)

Given these numbers, is it accurate that I can fill the difference between $56,000 and $77,400 with a Roth Conversion and be taxed 12% on the amount of the conversion?

I don't think it will make any impact on this analysis but I will also be taking 2 Child Tax Credits and an EV Credit.
by FinanceDoctor
Mon Oct 01, 2018 4:38 am
Forum: Personal Consumer Issues
Topic: Asphalt driveway replacement
Replies: 21
Views: 2518

Re: Asphalt driveway replacement

If it were just gator cracking, grinding and topping may be an option.

However, with bad ruts (maybe potholes and larger cracks/heaves as well?), you're going to want to tear out and fix the underlying issues. All of these issues will radiate to a new topcoat unless you tear out and fix the base.
by FinanceDoctor
Wed Sep 12, 2018 5:54 pm
Forum: Personal Investments
Topic: Do you rollover all of your previous 401ks?
Replies: 33
Views: 3601

Re: Do you rollover all of your previous 401ks?

Roll to IRA.

*Unless, as pointed out below, you need to do a backdoor Roth. Then, new 401k is fine. If you happen to have another IRA (SEP...) or Solo 401k, I'd choose that over a limited 401k through an employer.
by FinanceDoctor
Sat Sep 01, 2018 2:27 pm
Forum: Personal Finance (Not Investing)
Topic: Ameriprise Frustration
Replies: 11
Views: 1494

Re: Ameriprise Frustration

You have to wonder why the church is using a 403b for 1 employee. That seems unusual to me. Seems like a SEP or SIMPLE IRA might be cheaper. Makes me wonder. Another possible stumbling block is that Vanguard may not allow the old 403b to roll into the new 403b. It has been stated here that Vanguard does not allow incoming rollovers in 401k plans, even from other 401ks. I feel sure they do not allow incoming rollovers from IRA but have never been sure if "no rollovers from 401k" was correct or not. Some careful questioning needs to happen to avoid problems down the line. But still coming back to the question of a church paying for a 403b plan for 1 employee....something is not feeling right about that at all. How much is your MIL ...
by FinanceDoctor
Sat Sep 01, 2018 10:26 am
Forum: Personal Finance (Not Investing)
Topic: Ameriprise Frustration
Replies: 11
Views: 1494

Re: Ameriprise Frustration

aristotelian wrote: Sat Sep 01, 2018 9:40 am He sounds more ethical than most.
I don't disagree. That said, when staying and taking his advice has her with a 2% wrap fee and in 3-8% ERs, I don't care how ethical he is...
by FinanceDoctor
Sat Sep 01, 2018 10:25 am
Forum: Personal Finance (Not Investing)
Topic: Ameriprise Frustration
Replies: 11
Views: 1494

Re: Ameriprise Frustration

retiredjg wrote: Sat Sep 01, 2018 9:50 am If she is still working, this is almost certainly not going to happen.
She is the only employee on the plan at a small church. I don't see this as being a huge issue unless I am missing something. Have the church open the new 403b at Vanguard. Have my MIL open an account and begin funding it through payroll. Submit rollover paperwork and roll in the 403b from Ameriprise.

Am I missing a piece of the puzzle?
by FinanceDoctor
Sat Sep 01, 2018 5:55 am
Forum: Personal Finance (Not Investing)
Topic: Ameriprise Frustration
Replies: 11
Views: 1494

Ameriprise Frustration

Like many of us on here, I came across Boglehead philosophies before I ever invested anywhere else. I've only ever had accounts at Vanguard and a 403b through my employer which is frustrating (as they usually are) but I've been able to research and set up the best options for myself there by directing the "financial advisor" on what to do. However, in the past two months, I have been helping my mother in law with her personal finances after the passing of my father in law. They had some life insurance, a 403b through their employer (held in a 403b account inside an annuity product) and a Traditional IRA. My MIL wanted to put the life insurance proceeds into a CD ladder and keep the 403b/IRA invested in spousal rollovers. Because o...
by FinanceDoctor
Tue Aug 14, 2018 8:20 am
Forum: Personal Investments
Topic: Risk Averse Widow - Investing Life Insurance Proceeds
Replies: 8
Views: 931

Re: Risk Averse Widow - Investing Life Insurance Proceeds

dodecahedron wrote: Tue Aug 14, 2018 6:34 am I would caution against rushing into the purchase of a home too soon if she is recently widowed. Big decisions, especially expensive ones with a lot of frictional costs, should be delayed until she has had some time to think through her long term plans.
I agree with this 100%. Our rule #1 with her has been "no big decisions." However, getting her to agree to this has been challenging.
by FinanceDoctor
Tue Aug 14, 2018 8:19 am
Forum: Personal Investments
Topic: Risk Averse Widow - Investing Life Insurance Proceeds
Replies: 8
Views: 931

Re: Risk Averse Widow - Investing Life Insurance Proceeds

Her own benefits are low enough that her current income would zero them out when she claims them. The greater benefit for her is the Survivor's/Widows Benefit that she will claim a maximum benefit on at 66 and 7 months (because her husband died before FRA, her cap is his full benefit).
by FinanceDoctor
Tue Aug 14, 2018 5:00 am
Forum: Personal Investments
Topic: Risk Averse Widow - Investing Life Insurance Proceeds
Replies: 8
Views: 931

Risk Averse Widow - Investing Life Insurance Proceeds

I am attempting to help my mother in law. She is recently widowed, has an extremely low risk tolerance (ie: a 5% decline would cause her to lose sleep and want to pull out all of her investments). She also wants all of this to be extremely simple and easy for her to understand. She has $250,000 in Life Insurance proceeds that should be sitting in an Ameriprise savings account within a couple weeks. In addition to that, there is a $50,000 403b at Ameriprise and a $6,000 tIRA with Ameriprise. She is currently 60 and plans on working for approximately 10 years. She will receive $1,700 a month in Social Security (starting in 7 years) and thinks a monthly budget of around $3,000 is what she wants to work toward. She also has $80,000 in a savings...
by FinanceDoctor
Fri Aug 10, 2018 7:20 am
Forum: Personal Consumer Issues
Topic: Buying used car - advice requested
Replies: 36
Views: 3318

Re: Buying used car - advice requested

I was just looking at cars in a similar price range as you. I have a commute that is a bit longer (37 miles each way).

I ended up buying a new Prius Prime. With rebates, state tax credit, and the federal tax credit (have to wait until I file taxes in 2019 for this), I will end up paying around $19,500 including all fees (tax, title, etc...). This equates to a purchase price around $17,500 in my state. I couldn't justify paying $15,000-$17,000 for a used Prius or Camry when I could get this one new for $17,500.
by FinanceDoctor
Sat Aug 04, 2018 7:09 am
Forum: Personal Consumer Issues
Topic: Suggest an electric car: Volt? Alternative?
Replies: 49
Views: 5669

Re: Suggest an electric car: Volt? Alternative?

Bought a Prius Prime Plus yesterday. $24,000 OTD (including all NY taxes and fees). $19,500 after federal tax credit.
by FinanceDoctor
Sun Jul 29, 2018 10:03 am
Forum: Personal Finance (Not Investing)
Topic: Tax Credit for Electric Car - Interplay with new/refundable Child Tax Credit
Replies: 4
Views: 776

Re: Tax Credit for Electric Car - Interplay with new/refundable Child Tax Credit

47Percent wrote: Sun Jul 29, 2018 9:12 am

Make your tax liability comfortably over $8,500 by converting some TIRA to Roth IRA and call it a day (year).

That's what I would do.
Not a bad idea but doesn't answer the question. Curious if anyone knows.
by FinanceDoctor
Sun Jul 29, 2018 9:07 am
Forum: Personal Finance (Not Investing)
Topic: Tax Credit for Electric Car - Interplay with new/refundable Child Tax Credit
Replies: 4
Views: 776

Tax Credit for Electric Car - Interplay with new/refundable Child Tax Credit

I am considering the purchase of a Prius Prime. It qualifies for a $4,500 Federal Tax Credit.

My tax liability in 2018 will be approximately $5,300 before the Child Tax Credit. I have two children. So, after the credit, I will owe approximately $1,300.

In looking at the new 1040, I can't figure out if this means that my tax credit will be limited to $1,300 on the car or if I will receive the full $4,500 off of the $5,300, leaving me with a $800 liability before the child tax credit and then I would receive a $2,800 refund (the $1,400 refundable portion of each child tax credit).

Anyone know the answer to this?
by FinanceDoctor
Fri Jul 27, 2018 11:28 am
Forum: Personal Finance (Not Investing)
Topic: Helping MIL - Recently deceased FIL - Life Insurance, 403b, Annuity, Etc...
Replies: 2
Views: 691

Helping MIL - Recently deceased FIL - Life Insurance, 403b, Annuity, Etc...

I am attempting to help my mother in law sort through their finances after the recent passing of my father in law. Obviously, my first big advice to her is to not make any big decisions and to not let anyone take advantage of her. I think I have found the large items and have some clarifying questions you all might be able to help me with or see if I am missing any big gaps: * Social Security - My FIL had filed for early retirement. Before he passed, we processed an application withdrawal form. Although they are continuing to process his payment, they state that once his withdrawal form processes we will simply have to pay back all of his payments. This will allow my MIL to receive full survivor benefits at 66. * Life Insurance - My FIL had...
by FinanceDoctor
Sat Jul 07, 2018 3:17 pm
Forum: Personal Consumer Issues
Topic: Ireland trip
Replies: 20
Views: 2344

Re: Ireland trip

What do you enjoy? Cities or countryside? If cities, you might stay in Dublin and just do a few day trips. If countryside, you can easily do 3 towns in 7 days. My wife and I did a week last year and I am happy to answer any questions you might have. In short, our itinerary was: *Day 1 - Drive from Dublin to West Coast (see Cliffs of Moher) *Day 2 - Take Ferry to Inis Mor - Tour the island by bike *Day 3/4 - Drive to Killarney, Kayaking in Killarney, Hiking the Gap of Dunloe, Walk around the city, etc... *Day 5 - Drive to Kilkenny, Smithwicks Tour, Walk around the city, etc... *Day 6/7 - Drive to Dublin, two days in Dublin, saw the major sights This was a lot to fit in but never felt fast paced. We broke up all of the drives with stops along...
by FinanceDoctor
Thu Jun 28, 2018 9:15 am
Forum: Personal Finance (Not Investing)
Topic: SS Survivor Benefit - Impact of Deceased Spouses SS Disability Filing
Replies: 10
Views: 782

Re: SS Survivor Benefit - Impact of Deceased Spouses SS Disability Filing

Thank you all for the feedback and information. I think I have what I need to move forward (withdrawing now seems to be the best bet if I can get my MIL/FIL to do so). To close the loop, I also used the Ask Larry link and got this response: Hi, I'm sorry to hear about your father in law's diagnosis. Yes, your father in law's (FIL) filing for reduced retirement benefits could definitely have an adverse effect on your mother in law's (MIL) potential widow's benefits. If your FIL draws reduced retirement benefits and not disability benefits, your MIL's highest widow's benefit rate would likely be limited to no more than 82.5% of your FIL's primary insurance amount (PIA). On the other hand, if your FIL doesn't receive reduced retirement benefit...
by FinanceDoctor
Wed Jun 27, 2018 11:26 am
Forum: Personal Finance (Not Investing)
Topic: SS Survivor Benefit - Impact of Deceased Spouses SS Disability Filing
Replies: 10
Views: 782

Re: SS Survivor Benefit - Impact of Deceased Spouses SSI Disability Filing

Rupert wrote: Wed Jun 27, 2018 11:10 am
If he has been receiving benefits for less than a year, then, yes, he can reverse the decision, but I think he'll have to re-pay the monies he has already received. But will your MIL have income if benefits are stopped?
If he passes away before this decision is reversed, is there any recourse on our part or is that decision locked in?
by FinanceDoctor
Wed Jun 27, 2018 11:25 am
Forum: Personal Finance (Not Investing)
Topic: SS Survivor Benefit - Impact of Deceased Spouses SS Disability Filing
Replies: 10
Views: 782

Re: SS Survivor Benefit - Impact of Deceased Spouses SSI Disability Filing

Rupert wrote: Wed Jun 27, 2018 11:10 am
If he has been receiving benefits for less than a year, then, yes, he can reverse the decision, but I think he'll have to re-pay the monies he has already received. But will your MIL have income if benefits are stopped?
She has enough in cash to survive for some time and should also receive enough in Life Insurance to survive until she is 66 at which point she could file for survivor benefits and receive the full benefit. She may also work from now until 66.
by FinanceDoctor
Wed Jun 27, 2018 10:46 am
Forum: Personal Finance (Not Investing)
Topic: SS Survivor Benefit - Impact of Deceased Spouses SS Disability Filing
Replies: 10
Views: 782

Re: SS Survivor Benefit - Impact of Deceased Spouses SSI Disability Filing

I updated the OP to clarify that I did not mean SSI.

To add a piece to this puzzle, I just found out my FIL did not end up filing for disability. He filed for an early social security benefit. The worker at the local office encouraged this because "it will take five months to get the first disability check but if you file for an early benefit we can get it started right away".


Given that his taking an early benefit will permanently lower my MIL's survivor benefit, is there a way to retroactively fix this?
by FinanceDoctor
Wed Jun 27, 2018 10:06 am
Forum: Personal Finance (Not Investing)
Topic: SS Survivor Benefit - Impact of Deceased Spouses SS Disability Filing
Replies: 10
Views: 782

SS Survivor Benefit - Impact of Deceased Spouses SS Disability Filing

My 62 year old FIL is in hospice and will not make it much longer. Several weeks ago, he finally filed for SS Disability. I don't know that he will even get his first SS Disability check before he passes away.

My MIL will need to draw SS Survivor Benefits but I will likely work with her to develop a plan to delay drawing until she turns 66 and 4 months which is her full age for survivor benefits.

I know that if my FIL filed for SS Benefits early (ie: right now, at age 62), my MIL's survivor benefit would be based off of his reduced benefit. Will there be any impact on her survivor benefit based on his disability filing? If so, can we do anything to prevent this from happening (like, cancel the filing?)

Any advice is helpful.
by FinanceDoctor
Sun Apr 08, 2018 11:01 am
Forum: Personal Consumer Issues
Topic: Can I use United airline miles to buy a ticket for my friend?
Replies: 15
Views: 2071

Re: Can I use United airline miles to buy a ticket for my friend?

Yes, you can book award tickets for someone other than yourself.
by FinanceDoctor
Sun Feb 11, 2018 11:39 am
Forum: Personal Finance (Not Investing)
Topic: Taxes Withheld Different For Each Paycheck?
Replies: 10
Views: 1348

Re: Taxes Withheld Different For Each Paycheck?

When your employer switched to the new withholding tables, that would have been one change. Not sure why you would have had a second change in withholding.