Search found 5170 matches

by neurosphere
Mon Mar 18, 2024 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need to file amended Form 8606?
Replies: 7
Views: 488

Re: Do I need to file amended Form 8606?

But it is annoying that professional tax preparers cannot get this right. I really do think the issue originates with the IRS and the software, not the preparer. For example, I was helping a CPA wrestle with his software to get 8606 to report the Roth conversion. I forget the software (Lacerte? Drake? one of those). But it was maddening and neither of us could figure it out (in my defense I had never used that program). The software was reporting the conversion correctly on the 1040 but he/we couldn't seem to get the numbers to appear on the 8606. He gave up, filed the return as is. That was about 4 years ago. So I think professional preparers have likely never once had to "fix" this mistake. No audits, no IRS letters, no new cli...
by neurosphere
Mon Mar 18, 2024 1:47 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need to file amended Form 8606?
Replies: 7
Views: 488

Re: Do I need to file amended Form 8606?

It is indisputable that the Form 8606 is not filled out correctly, but it is also true that the Form does show the non-deductible contribution for each year and the distribution from the IRA is shown correctly in the 1040 on Line 4a and the fact that $0 from that is taxable is shown in Line 4b. So, the tax liability will not change. For some reason, at least one (but likely more) major professional tax prep software of the kinds accountants use don't bother to put the conversion on 8606 and leave it blank, but otherwise report the correct items and tax on the 1040. I've been noticing this for several years. I suspect the IRS doesn't care. Because the 1040 is correct. I would opt not to do anything. If the IRS ever contacts you it would be ...
by neurosphere
Sun Mar 17, 2024 7:32 pm
Forum: Personal Consumer Issues
Topic: Cloud based backup options for sensitive files
Replies: 92
Views: 7383

Re: Cloud based backup options for sensitive files

Why not just email them to yourself? Or Google drive? You sure don't need to pay for anything. Please don't ever email sensitive files.... Email is not the least bit secure. As a physician, we emailed sensitive patient data every day to others within our institution. PDFs with medical records, group discussions about prognosis, summaries of team meetings about a patient were e-mailed to all present, etc. When emailing outside our institution we were supposed to encrypt the email. But internally, no. However, I've emailed patient records (encrypted) to a group of (for example) doctors at a dozen institutions, and I know from email chains they shared that internally in their email systems in unencrypted form. So certain information can live ...
by neurosphere
Sun Mar 17, 2024 6:59 pm
Forum: Personal Finance (Not Investing)
Topic: Annual limit to the number of IRA to IRA transfers?
Replies: 10
Views: 829

Re: Annual limit to the number of IRA to IRA transfers?

And here is the actual "Memo" (Memorandum): https://casetext.com/case/bobrow-v-commr By the way, this memo is a nice example of the IRS citing congressional intent as being meaningful/allowable towards interpreting the law. A house conference report is cited by the Memo: "To prevent too much shifting of investments under this provision, the bill provides that an individual can transfer amounts between individual retirement accounts only once every three years. However he may rollover amounts received from a qualified plan into an individual retirement account within that three year period". This is one reason the tax cuts and jobs act satisfied most holdouts regarding the validity of the backdoor Roth. In the house conf...
by neurosphere
Sun Mar 17, 2024 6:26 pm
Forum: Personal Finance (Not Investing)
Topic: Annual limit to the number of IRA to IRA transfers?
Replies: 10
Views: 829

Re: Annual limit to the number of IRA to IRA transfers?

It is not odd that indirect and direct rollovers are treated differently. The rule about indirect rollovers was changed in 2015 to prohibit the unlimited loan of IRA funds by doing sequential 60 day rollovers. The law hadn't changed for many years (at one time it was once in 3 years). Section 403(d)(3)(B) says, and has said for many years....[snip] The taxpayer who lost the Tax Court case was himself a tax lawyer, though his focus was state and local taxes. I heard him speak at a continuing education program (before his Tax Court case). This is a surprisingly good summary of the history of the 60 day rollover interpretation on an IRS information page, along with a citation: https://www.irs.gov/retirement-plans/plan-participant-employee/rol...
by neurosphere
Mon Mar 11, 2024 4:57 pm
Forum: Personal Finance (Not Investing)
Topic: EIN for solo 401k with two self-employed businesses
Replies: 6
Views: 536

Re: EIN for solo 401k with two self-employed businesses

I have this same situation but at Fidelity. When my second business opened, I just filled out the identical paperwork as when I opened the solo 401. The new adoption agreement serves as an amendment (or so they told me). Then under employer I listed the initial/original employer (e.g. the first schedule C business aka "Neurosphere LLC") as before. Underneath is a section which reads: "The term 'Employer' includes the following Affiliated Employers covered by the Plan" and I wrote "Neurosphere II, LLC". It was pretty easy. I suspect Vanguard can do the same. Here's the guidance given in the paperwork... If you are part of an affiliated group of Employers, as defined in Section 2.3 of the Plan Document (collectiv...
by neurosphere
Mon Mar 11, 2024 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: H&R Block Online Software - Schedule B
Replies: 26
Views: 1273

Re: H&R Block Online Software - Schedule B

The consequences of this fairly small if your 1040 is correct. They also have all the data necessary to recreate your schedule B or at least know you didn't neglect to report income they know about. If asked, you may even be able to upload a pdf copy of a manually filled out Schedule B in the future. As I understand it, they are working towards allowing online upload of responses and certain documents (as opposed to fax or mail).
by neurosphere
Sat Mar 09, 2024 4:32 pm
Forum: Personal Finance (Not Investing)
Topic: TaxAct. Reporting after-tax 401k --> In-plan Roth Conversion not correct. Bug, or user error?
Replies: 52
Views: 4560

Re: TaxAct. Reporting after-tax 401k --> In-plan Roth Conversion not correct. Bug, or user error?

After entering my 1099-R in the Q&A, I get the following sequence of pages below. NO. Take a different path. You have to finish with the 1099-R entry screen and "back out" and then AGAIN select "retirement plan income" from the Q&A, followed by "IRA, 401k and pension plan distributions". This takes you to a screen titled "Here's a review of your 1099-R income" and shows a list of the 1099-Rs. DO NOT review the 1099-r again but rather hit continue. This path doesn't show up for me, but I got a workable path above. Hopefully the multiple paths will help others find the right page. Interesting. Just for fun I recorded a video of what I see/do . I can also get a nearly identical flow as the video...
by neurosphere
Sat Mar 09, 2024 1:58 pm
Forum: Personal Finance (Not Investing)
Topic: TaxAct. Reporting after-tax 401k --> In-plan Roth Conversion not correct. Bug, or user error?
Replies: 52
Views: 4560

Re: TaxAct. Reporting after-tax 401k --> In-plan Roth Conversion not correct. Bug, or user error?

telemachus wrote: Sat Mar 09, 2024 12:52 pm After entering my 1099-R in the Q&A, I get the following sequence of pages below.
NO. Take a different path. You have to finish with the 1099-R entry screen and "back out" and then AGAIN select "retirement plan income" from the Q&A, followed by "IRA, 401k and pension plan distributions". This takes you to a screen titled "Here's a review of your 1099-R income" and shows a list of the 1099-Rs. DO NOT review the 1099-r again but rather hit continue.
by neurosphere
Sat Mar 09, 2024 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: TaxAct. Reporting after-tax 401k --> In-plan Roth Conversion not correct. Bug, or user error?
Replies: 52
Views: 4560

Re: TaxAct. Reporting after-tax 401k --> In-plan Roth Conversion not correct. Bug, or user error?

telemachus wrote: Sat Mar 09, 2024 12:52 pm Thank you for more details! I cannot see your picture though.
Refresh your screen and see if you can see now. I think I needed to change the sharing link to "anyone" from "restricted".
by neurosphere
Sat Mar 09, 2024 11:58 am
Forum: Personal Finance (Not Investing)
Topic: TaxAct. Reporting after-tax 401k --> In-plan Roth Conversion not correct. Bug, or user error?
Replies: 52
Views: 4560

Re: TaxAct. Reporting after-tax 401k --> In-plan Roth Conversion not correct. Bug, or user error?

The screenshot below is what I see in my desktop version of taxact. In the upper left I can search for a form, select it, and jump to the form. I've scrolled down to the bottom of form 8606 to show the section where one can reconcile in-plan roth conversions +/- rollovers to a Roth IRA. To get there via the Q&A follow the directions you quoted, and... If going via the Q&A, you get to a screen that titled "Taxpayer Rollovers From Retirement Plans to Roth IRAs - Basis" and it asks. "Enter DUMMY's basis in the $XXXX amount that was rolled over from qualified retirement plans to Roth IRAs in 2023." You are correct that it only asks about IRAs. But on this SAME PAGE there is a section below called "form view"...
by neurosphere
Fri Mar 08, 2024 3:02 pm
Forum: Personal Investments
Topic: In-kind transfers between link-titled Vanguard brokerage accounts?
Replies: 2
Views: 356

Re: In-kind transfers between link-titled Vanguard brokerage accounts?

exodusNH wrote: Fri Mar 08, 2024 1:38 pm You have to call them. There's no good way to do this online.
Thanks for the info!
by neurosphere
Fri Mar 08, 2024 1:19 pm
Forum: Personal Investments
Topic: In-kind transfers between link-titled Vanguard brokerage accounts?
Replies: 2
Views: 356

In-kind transfers between link-titled Vanguard brokerage accounts?

I'm considering splitting assets in our joint VG account into three. Previous posts tell me I can open multiple brokerage accounts. My question: Can I move investments (not cash) between these accounts myself online or do I need Vanguard's assistance with this. I'm hoping the time I take to write this post will be faster than calling Vanguard (and the question will also be available for others for reference). Details: I'm considering splitting my accounts like this (generally speaking): -- My mutual funds that I buy/sell/rebalance from, and MMFs -- My legacy stocks and funds that are not suitable for me but which I won't sell until I need the money because of gains -- My individual bonds, e.g. a TIPS ladder. Currently they are all in one ac...
by neurosphere
Fri Mar 08, 2024 10:02 am
Forum: Personal Finance (Not Investing)
Topic: Section 179 - recapture of depreciation of a business vehicle
Replies: 4
Views: 446

Re: Section 179 - recapture of depreciation of a business vehicle

But the question is when the vehicle is not used for business at all. That it goes down 0% and now is used for personal purposes. That is what is not clear. "0%" business use meets the definition of less than 50% business use. It doesn't matter whether it's 42%, 10% or 0%. From publication 946 under listed property (I'm assuming your car meets the definition of listed property...most "cars" do) Recapture of Excess Depreciation. If you used listed property more than 50% in a qualified business use in the year you placed it in service, you must recapture (include in income) excess depreciation in the first year you use it 50% or less . You also increase the adjusted basis of your property by the same amount. E.g. on Jan 1...
by neurosphere
Thu Mar 07, 2024 5:40 pm
Forum: Personal Finance (Not Investing)
Topic: Section 179 - recapture of depreciation of a business vehicle
Replies: 4
Views: 446

Re: Section 179 - recapture of depreciation of a business vehicle

That would meet the "less than 50% business use" situation.

High level summary:
https://www.taxact.com/support/1028/202 ... orm%204797.

A little more detail (especially towards the bottom): https://www.wolterskluwer.com/en/expert ... cial-rules
by neurosphere
Sun Mar 03, 2024 12:48 pm
Forum: Personal Finance (Not Investing)
Topic: How much term life coverage to get for 50 y.o., DINKs, good savings?
Replies: 27
Views: 2860

Re: How much term life coverage to get for 50 y.o., DINKs, good savings?

My wife and I each decided we likely would not be able to continue working if one of us died, at least for a while. And there are efficiencies that come when two people live in one home with respect to taking care of all the things which need to get done (cooking, cleaning, bills, taxes, planning travel, etc). And the loss of future Social Security would be a big blow to our retirement (e.g. loss of income is greater than decrease in expenses). Neither of our families live where we live, and if one dies I would expect significant increase in travel, for example for the holidays because sometimes it's just the two of us on a holiday and we're "with family" but if one dies one can imagine needing/wanting to travel to family get toge...
by neurosphere
Sat Mar 02, 2024 5:45 pm
Forum: Personal Finance (Not Investing)
Topic: TaxAct. Reporting after-tax 401k --> In-plan Roth Conversion not correct. Bug, or user error?
Replies: 52
Views: 4560

Re: TaxAct. Reporting after-tax 401k --> In-plan Roth Conversion not correct. Bug, or user error?

Thanks for the further explanation of the TaxAct worksheet. If the amount in Box 1 is added to taxable income, are you sure that the IRA/SEP/SIMPLE box in box 7 was not checked when the 1099R was entered to a tax program? It should not be checked. In my test, I did not check the IRA box. Box 1 was added to taxable income and boxes 2a and 5 were ignored pending additional user inputs. With respect to 1099R issuance, despite distributions going to different types of accounts, if the Box 7 coding is the same they will typically be combined on a single 1099R form, but boxes 2a and 5 are only filled if the destination account is a Roth account, and in that case the sum of 2a and 5 should be the same as Box 1. If the issuer assumes that the dire...
by neurosphere
Sat Mar 02, 2024 2:35 pm
Forum: Personal Finance (Not Investing)
Topic: TaxAct. Reporting after-tax 401k --> In-plan Roth Conversion not correct. Bug, or user error?
Replies: 52
Views: 4560

Re: TaxAct. Reporting after-tax 401k --> In-plan Roth Conversion not correct. Bug, or user error?

Referring to Form 8606 when reporting qualified plan rollovers to Roth IRAs is also an error by TaxAct. Just a clarification that the reference to form 8606 in taxact is an administrative/software one. It's simply the section/location where they reconcile all the various rollovers/conversions etc. For this situation, no entries actually get put on form 8606. E.g. if there are multiple 1099s each reporting a different transaction (Roth conversions, 401k rollover to IRA, in-plan Roth conversions, etc) the entries get clarified on what is essentially an internal worksheet that just happens to live on the same page as the 8606 form within taxact. It's also the "worksheet" where can separate the basis of in-plan conversions and rollov...
by neurosphere
Sat Mar 02, 2024 12:56 pm
Forum: Personal Finance (Not Investing)
Topic: TaxAct. Reporting after-tax 401k --> In-plan Roth Conversion not correct. Bug, or user error?
Replies: 52
Views: 4560

Re: TaxAct. Reporting after-tax 401k --> In-plan Roth Conversion not correct. Bug, or user error?

Has anyone tried this with TaxAct for 2023 yet? I'm having the same issue as the OP and none of the tweaks in the thread seem to produce the correct outcome. I'm rounding numbers for simplicity but here are the inputs and the outcome. Note the funds were rolled out to a Roth IRA, NOT an IRR. 1099-R Box 1 $4900 Box 2 $0 Box 5 $4600 Box 7 G During the first pass, I let it carryover the $4900 amount (perhaps incorrectly) into the rollover field. This meant rollover correctly appeared on the 1040 line 5 but there was no taxable amount (which should be $300). After reading this thread, I changed the rollover field in the Q&A to $0. Then manually entered $4900 in the quick entry view under Roth conversions. Now the 1040 line 5 does NOT show ...
by neurosphere
Fri Mar 01, 2024 8:51 am
Forum: Personal Investments
Topic: TIAA Traditional and Bond Fund Questions
Replies: 24
Views: 2175

Re: TIAA Traditional and Bond Fund Questions

Did they announce new rates for March yet? My TIAA account still shows the Feb rates.
by neurosphere
Thu Feb 29, 2024 12:54 pm
Forum: Personal Finance (Not Investing)
Topic: Downloadable Social Security Benefit Estimator [Updated for 2024]
Replies: 220
Views: 44781

Re: Downloadable Social Security Benefit Estimator [Updated for 2024]

If one has a high enough salary and keeps working after 60, then each additional working year should displace a previous year if the wage base continues to increase, and which would increase the benefit. The summary is that there are indeed situations where the wage base is relevant for one's benefit even after 60 (but yes, the index for earnings is fixed at age 60). Actually, the calculator allows for illustrating this nicely. Select a 1964 birthdate, and input wages of $2,000,000 from age 5 through 110. Keep the inflation selector at "1" (no wage or price inflations). Then change it to 2, which creates non-zero wage/price assumptions for all future years. Big difference in the future benefit! A high income person who works from...
by neurosphere
Thu Feb 29, 2024 8:43 am
Forum: Personal Finance (Not Investing)
Topic: Downloadable Social Security Benefit Estimator [Updated for 2024]
Replies: 220
Views: 44781

Re: Downloadable Social Security Benefit Estimator [Updated for 2024]

Now, if you expect additional earnings then inflation (in this case wage inflation) comes back into play. Because the amount of wages subject to SS and for which you get "credit" for changes with wage inflation. So it can make a difference to your benefit whether your wages are above the threshold or below. Doesn't the wage inflation factor at 60+ get fixed at 1.0 and the only way new wages changes PIA is if the new wage is greater than the lowest older year's adjusted wage? Seems to me wage inflation is not a factor after 60. Wage inflation doesn't change the index which get applied to earnings, correct. But if CAN affect the absolute dollar amount of wages which contribute to the average indexed earnings. Suppose one is 65 and ...
by neurosphere
Thu Feb 29, 2024 8:04 am
Forum: Personal Finance (Not Investing)
Topic: TurboTax desktop 2023 not computing tax for child/minor's investment-only income?
Replies: 6
Views: 765

Re: TurboTax desktop 2023 not computing tax for child/minor's investment-only income?

dodecahedron wrote: Thu Feb 29, 2024 7:40 am
neurosphere wrote: Thu Feb 29, 2024 7:31 am What's on form 8615? That's where the tax is computed.
Since child's income is below $2500 (the threshold for kiddie tax), the child's tax is NOT computed on Form 8615. Instead, it is taxed at the child's own bracket rates, either ordinary income or the preferential rate for qualified dividends and capital gains.
Yes, of course. :oops: That's what I get for replying to threads from bed. :D

Because I read that OP was expecting tax to be due, I assumed that they assumed parent income was coming into play and didn't really read the rest of the post closely (or hardly at all in retrospect, ha ha).
by neurosphere
Wed Feb 28, 2024 9:17 am
Forum: Personal Finance (Not Investing)
Topic: Downloadable Social Security Benefit Estimator [Updated for 2024]
Replies: 220
Views: 44781

Re: Downloadable Social Security Benefit Estimator [Updated for 2024]

Downloaded the latest version and the assumptions don't seem to be working for me (tried on Excel Mac, PC and online with same result). Seems that if I set my birth year to 1960 (which it is), the assumptions dropdown doesn't change anything. Likewise for setting it to 1961 or 1962. But when I set my birth year to 1963 or greater, the assumptions dropdown works. Scanned the various threads to see if there is some guidance but not seeing anything. Thanks in advance for any help. The calculator displays results in today's dollars. After age 60, your benefit is affected by only two things 1) price inflation 2) additional earnings if any. But since the benefit is reported in today's dollars, it doesn't matter what inflation assumptions you pro...
by neurosphere
Wed Feb 28, 2024 8:57 am
Forum: Investing - Theory, News & General
Topic: AlphaArchitect launches BOXX: 1-3 Month Box Spread ETF
Replies: 307
Views: 43492

Re: Boxx by Matt Levine

retiringwhen wrote: Wed Feb 28, 2024 8:45 am
muffins14 wrote: Wed Feb 28, 2024 8:33 am But a viable alternative is a state-specific muni, which could be better than both. No federal tax, no state tax
No state muni MM funds actually outperform Treasuries these days. Maybe in the future, but right now they are a losing game even for billionaire Californians.

Treasury yields simply are crushing Muni's these days, even when smoothing out the crazy swings in the muni yields.

It is all about AFTER-tax return, not tax avoidance.
I'm finding that for high-bracket folks in NYC, Vanguard's NY muni fund (and their national fund) has beaten their treasury MMF over the past 6 months to a year (after-tax of course). By very roughly 0.25% to 0.5%.
by neurosphere
Mon Feb 26, 2024 12:26 pm
Forum: Personal Finance (Not Investing)
Topic: preferred tax preparation software? [for tax year 2023]
Replies: 56
Views: 7781

Re: preferred tax preparation software? [for tax year 2023]

Started 'taxact', nice ui, investment portion was able to hoover all my 1099 from fidelity... I skipped back and did rental depreciation and that was very well done. Finally got back to investments and jpmorgan and there's no way to ingest. They have a way to ingest 'csv' file saved from a spreadsheet. I transcribed pdf tables into a viable csv in about an hour, so only 5 more accounts to go. I can do it faster now but it is a lot of cutting and pasting and reformatting, a lot of busy work and then you need to verify everything is correct once the import is complete. My eyes are going cross staring at all the numbers in these awful little boxes, the web ui that looks like a student project from the 90s. Regarding taxact, what info do you n...
by neurosphere
Mon Feb 26, 2024 11:29 am
Forum: Personal Finance (Not Investing)
Topic: Closing a Sole Proprietorship
Replies: 15
Views: 1734

Re: Closing a Sole Proprietorship

If you happened to have bought any equipment that you depreciated, perhaps home office furniture, etc, then you'd want to indicate on your taxes that the depreciated items are no longer in service or became personal use, or have no residual value. Accounting for depreciated assets is about the only thing I can think of that's relevant for your personal taxes. Otherwise you simply stop including Schedule C when you file.
by neurosphere
Sun Feb 25, 2024 5:50 pm
Forum: Personal Finance (Not Investing)
Topic: Bug in Anypia SS calculator 2024.1
Replies: 9
Views: 831

Re: Bug in Anypia SS calculator 2024.1

SkylerBIS wrote: Sun Feb 25, 2024 5:19 pm Thank you, Chip Munk.

SS way of applying DRC's is stupid. I guess it's a way to have a relatively small negative effect on individuals, and a huge cumulative positive effect for the Government.
Alternatively, it was the most cost effective solution for everyone involved in the days prior to calculators and computers. Or put another way, they could have just simply reduced the benefits for everybody in all situations rather than mildly reduce benefits for those who claim for their own benefits in months other than December/January or whatever.
by neurosphere
Sun Feb 25, 2024 1:12 pm
Forum: Personal Finance (Not Investing)
Topic: Bug in Anypia SS calculator 2024.1
Replies: 9
Views: 831

Re: Bug in Anypia SS calculator 2024.1

Working off memory and while multitasking, so consider this post just a small prod about how to think about things and where to do additional reading. You've answered your own question I think but didn't realize it when you wrote "Of course, I'm assuming that SSA actually does increase the benefit by 2/3% for every month delay, and does not just increment each January." I think perhaps you are not understanding what the "number of months increment" is, and that anypia is providing you some education. :D Put another way though, the output is what "really" happens, but which doesn't match up with our subjective "for all practical purposes" understanding of how to think about SS when making PLANNING deci...
by neurosphere
Wed Feb 21, 2024 2:49 pm
Forum: Personal Finance (Not Investing)
Topic: Purposely deducting as little tax as possible each paycheck
Replies: 17
Views: 1600

Re: Purposely deducting as little tax as possible each paycheck

Such a strategy can (legally) work in situations where your 2024 wages are substantially higher than 2023 (as an example). You could adjust your withholding for 2024 such that you meet the safe harbor requirements based on prior year tax e.g. minimum required payment in order to avoid underpayment penalties. That's not a lot of work.

You may have a big balance due, but no penalties. In the meantime that money is available to you to earn interest.

Edited to add: As an example, there are many physicians getting out of training where they made X in a previous year and on track to make 2X to 10X the following year. That's not a trivial amount of interest one can earn by only paying enough to avoid penalties/interest.
by neurosphere
Tue Feb 20, 2024 4:07 pm
Forum: Personal Finance (Not Investing)
Topic: What data gets transmitted to the IRS when I e-file (Modernized e-File "MeF")
Replies: 21
Views: 1639

Re: What data gets transmitted to the IRS when I e-file (Modernized e-File "MeF")

So how one can what see what's in the state return? What I'm looking for is a list of ALL data that's in either of the federal or state e-file information. I suspect such a list is buried in code in a technical document, but I'd like to see/find that document. It's surely public. I found such documents for information returns (e.g. 1099s to that go directly to the IRS). But I can't find the MeF instructions (or similar) which outline the REQUIRED elements for every personal income tax e-file and state e-file. The IRS MeF specifications are only available to e-filing companies. The state MeF specifications have only been available to e-filing companies since 2016, when the states decided to implement security by obscurity. You may be able t...
by neurosphere
Tue Feb 20, 2024 4:02 pm
Forum: Personal Finance (Not Investing)
Topic: payroll company, employer or my fault?
Replies: 47
Views: 2395

Re: payroll company, employer or my fault?

Also, lots of people have earned substantially more interest than in years past, and so their taxable income and of course is not reflected in the withholding that otherwise scales with salary.

My father in-law is paying Federal tax for the first time in a decade, with the identical financial situation apart from increased interest in his savings account. Oh, and increases to SS but without changes in the amount of the flat SS exempt from taxation.
by neurosphere
Tue Feb 20, 2024 3:59 pm
Forum: Personal Finance (Not Investing)
Topic: What data gets transmitted to the IRS when I e-file (Modernized e-File "MeF")
Replies: 21
Views: 1639

Re: What data gets transmitted to the IRS when I e-file (Modernized e-File "MeF")

talzara wrote: Sun Feb 11, 2024 6:00 pm The 1099-NEC is not transmitted to the IRS with a form 1040. It may be transmitted with a state return, but the IRS doesn't look at it.
I did confirm that the 1099-NEC is transmitted to at least one state (NY). Also all driver's license info. And for NY licenses, a control number on the back is required, but ONLY the first three digits. I've always put in all 8 or 10 or whatever and will stop doing so. :D
by neurosphere
Tue Feb 20, 2024 3:34 pm
Forum: Personal Finance (Not Investing)
Topic: What data gets transmitted to the IRS when I e-file (Modernized e-File "MeF")
Replies: 21
Views: 1639

Re: What data gets transmitted to the IRS when I e-file (Modernized e-File "MeF")

The W-2 is e-filed with your return. The 1099-INT, 1099-DIV, 1099-NEC, and 1098 are not. Take a 1099-NEC. Are you saying NONE of the data from the form is transmitted with the 1040. Some? Optional? State vs Federal? The 1099-NEC is not transmitted to the IRS with a form 1040. It may be transmitted with a state return, but the IRS doesn't look at it. So how one can what see what's in the state return? What I'm looking for is a list of ALL data that's in either of the federal or state e-file information. I suspect such a list is buried in code in a technical document, but I'd like to see/find that document. It's surely public. I found such documents for information returns (e.g. 1099s to that go directly to the IRS). But I can't find the MeF...
by neurosphere
Tue Feb 20, 2024 3:26 pm
Forum: Personal Finance (Not Investing)
Topic: payroll company, employer or my fault?
Replies: 47
Views: 2395

Re: payroll company, employer or my fault?

Got it. Any idea why the W-4 was changed in 2018? Yes, because congress eliminated the concept of personal exemptions on the 1040s, and dozens of other changes. So they had to create a new W4 . They also simplified it, and it led to more accurate tax for MOST people. But there are instructions and warnings saying that if there are multiple jobs, and/or married couples with multiple jobs, that the withholding will not be accurate unless you follow additional instructions. E.g. use the multiple job worksheet that's on the W4 (better), or complete the online withholding estimator (best). One needs to read the instructions. I admittedly did not follow the instructions closely when filling out my first few W2s after getting married and learned ...
by neurosphere
Mon Feb 19, 2024 2:51 pm
Forum: Personal Finance (Not Investing)
Topic: Employer HSA contributions not included in W2
Replies: 13
Views: 1135

Re: Employer HSA contributions not included in W2

[deleted]

I missed that the employer contributions was an actual contribution from the employer (akin to a match) rather than simply a contribution the employer deducted from your pay.
by neurosphere
Mon Feb 19, 2024 2:24 pm
Forum: Personal Consumer Issues
Topic: Brown spots on the inside bottom of the kettle
Replies: 24
Views: 1428

Re: Brown spots on the inside bottom of the kettle

It's an electric kettle, right? We've been using those exclusively to boil water for what seems like decades. We've bought them as gifts for our parents, and their guest houses and have owned/bought many of these of different brands and several countries. Every kettle we've owned regardless of location/brand eventually has what looks like rust and/or tarnish at the bottom. Colors vary, pitting sometimes happens, etc. Rarely comes off with cleaning, etc. But my conclusion is that it's an entirely cosmetic issue which doesn't affect the operation of the kettle. And if it indeed is rust and/or mineral deposits, there is zero health issues unless you have a known medical disorder where your body does not have the enzymes necessary to help you e...
by neurosphere
Mon Feb 19, 2024 12:23 pm
Forum: Personal Finance (Not Investing)
Topic: Capital One [is/is considering] buying Discover
Replies: 29
Views: 3469

Re: Capital One [is/is considering] buying Discover

Didn't Capital One formerly absorb ING? ING was my first high-yield savings account almost 20 years ago.

Consolidation can't be great for competitiveness with respect to interest rates, but at least we'll always have our Vanguard MMFs as an alternative. :D
by neurosphere
Sat Feb 17, 2024 9:20 pm
Forum: Personal Finance (Not Investing)
Topic: I don't need renters insurance, do I?
Replies: 72
Views: 6458

Re: I don't need renters insurance, do I?

It's also a good idea to pay a little extra to ensure that you are covered at replacement value so that if you make a claim, you won't get a depreciated amount for your things. It's not very much extra, since it's really pretty inexpensive yearly for renter's insurance. If someone with $75K content coverage has a house fire, and everything is burned/destroyed, how do they prove to the insurance company that they had $75K worth of contents? Are people actually documenting the value of their possessions? How would they do this? I have no idea if this would be useful, but I took a video walk through of my apartment. Pointed out every piece of furniture, the tv, the two desktop computers, my camera, my guitar, luggage, mattresses, opened up ev...
by neurosphere
Sat Feb 17, 2024 12:54 pm
Forum: Personal Finance (Not Investing)
Topic: PSLF or pay off?
Replies: 15
Views: 825

Re: PSLF or pay off?

For what it's worth, if you file separately and choose the SAVE plan, you'll get an interest rate subsidy that will drop your rate to about 5.5%. Also, if you have access to 401k, HSA, etc you may be able to lower your AGI further. E.g. perhaps with your spouses income you can afford to make contributions you otherwise can't make? I would keep paying the minimum in order to give yourself some flexibility. Remember, even if you get married in 2025, you don't have to file taxes until October 2026, and if for example your income recertification date is in the summer, your spouse's income doesn't increase your payment until mid 2027. Federal student loans have protections that you may need one day. Disability/death (no loan payments or no loan)...
by neurosphere
Fri Feb 16, 2024 11:12 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Form 1116 rejected by IRS
Replies: 25
Views: 3453

Re: Tax Form 1116 rejected by IRS

If still not working tell him to use a different software to file (since Turbo Tax works) or give you your money back (can't perform). Not sure whether asking for error codes is productive, you hired this guy to do your taxes you should not have to baby sit him. That's not how paid tax preparers work, and that's not how tax software works. First off, I've never heard of anyone using more than one software package. It can be VERY expensive to use even a single pro package. Next EVERY software company is possibly subject to similar issues. If not for 1116, then for some other form. Two years ago, Turbo Tax users couldn't file until mid-MARCH if they had certain foreign tax credit situations. There are at least two major software packages use...
by neurosphere
Fri Feb 16, 2024 9:17 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Form 1116 rejected by IRS
Replies: 25
Views: 3453

Re: Tax Form 1116 rejected by IRS

It may not be the 1116 form itself, but could be 1116 Schedule B. Does your return have Schedule B? Also, ask your accountant for the specific wording on the rejection. Rejections are commonly emailed to the preparer, similar to acceptances. It won't change anything but you may be curious and/or others may have some additional information. But typically, yes, you have to wait to file. Here's an example: Neurospheres’s Federal return has been rejected by the IRS on 01/01/9999 due to the following error(s): Rule Number: R0000-932-02 Rule Number Description: Primary taxpayer SSN must not be the same as the SSN on a previously accepted electronic return. Review and correct your SSN entries in Basic Info. If you previously filed an electronic re...
by neurosphere
Thu Feb 15, 2024 5:31 pm
Forum: Personal Consumer Issues
Topic: Color or Black & White Printer
Replies: 32
Views: 2321

Re: Color or Black & White Printer

I LOVE my BW Brother laser printer, now going on close to 15 years? Hmm...

But I covet a color one, only because the one time a year I wish I can print in color, I REALLY wish I could print in color. Dealbreaker? No. But as Nisi wrote, sometimes there is a map or other chart that doesn't reproduce all that well in greyscale. We used to gift savings bonds and print "Happy Birthday" gift certificate type announcements and I would have printed those in color too if able.

But alas, my brother printer is in a cabinet and it JUST fits. The color one is a tad bigger and would need to go on a surface we don't have. Our 600 sq ft NYC apartment cannot "fit" a color printer. ;)
by neurosphere
Thu Feb 15, 2024 3:25 pm
Forum: Personal Finance (Not Investing)
Topic: What's the best way to have federal taxes withheld so I don't have to pay the dreaded estimated taxes?
Replies: 70
Views: 9272

Re: What's the best way to have federal taxes withheld so I don't have to pay the dreaded estimated taxes?

I know it costs me money in terms of lost interest, but I like to make one estimated tax payment at the beginning of the year that I know will likely get me to safe harbor zone.

Although, that strategy was before many online payment methods. Now that rates are up, I'm nearly certain I can pre-schedule all 4 payments, right? I haven't checked but it is likely to be so (and I can learn the answer in 2 minutes).

I just have to remember to have the money in my checking account and not forget that an automated withdrawal is about to hit. :D
by neurosphere
Wed Feb 14, 2024 9:44 pm
Forum: Personal Finance (Not Investing)
Topic: How to handle income with no 1099 issued?
Replies: 3
Views: 767

Re: How to handle income with no 1099 issued?

You simply place $1000 in the appropriate place on you tax forms, in the same place it would otherwise go had you gotten the 1099. 😁
by neurosphere
Wed Feb 14, 2024 11:49 am
Forum: Personal Consumer Issues
Topic: Authy Desktop End of Life in Aug 2024
Replies: 37
Views: 5235

Re: Authy Desktop End of Life in Aug 2024

Would an android emulator for windows, e.g. bluestacks, work? It may be more trouble that it's worth.
by neurosphere
Sun Feb 11, 2024 5:27 pm
Forum: Personal Finance (Not Investing)
Topic: What data gets transmitted to the IRS when I e-file (Modernized e-File "MeF")
Replies: 21
Views: 1639

Re: What data gets transmitted to the IRS when I e-file (Modernized e-File "MeF")

talzara wrote: Sun Feb 11, 2024 5:01 pm
neurosphere wrote: Sun Feb 11, 2024 10:47 am Actually, I just did a test in taxact. The software requires an EIN and address on W2s received. But does NOT on 1099-INTs, DIVs, NECs, and 1098s. So maybe that answers part of my question.
The W-2 is e-filed with your return. The 1099-INT, 1099-DIV, 1099-NEC, and 1098 are not.
Take a 1099-NEC. Are you saying NONE of the data from the form is transmitted with the 1040. Some? Optional? State vs Federal?

How do you explain cowdogman's post above regarding inquiries from the IRS about missing data?
by neurosphere
Sun Feb 11, 2024 1:50 pm
Forum: Personal Consumer Issues
Topic: Window Unit A/C Compressor won't shut off. AGAIN.
Replies: 15
Views: 1383

Re: Window Unit A/C Compressor won't shut off. AGAIN.

ralph124cf wrote: Sun Feb 11, 2024 1:30 pm As a landlord, I would have considered 10 years on an AC to be normal wear and tear.
I guess it's strange that this is the THIRD unit to fail within 10 years. We moved in 11 years ago, two units in the apartment.

The bedroom unit failed a year after moving it. I don't know how old it was but the landlord's had only bought the place 2 years before we moved it. It was replaced. The replacement has now failed. The living room unit failed 6 years after moving in.

With each of the previous two failures, our landlord asked "are you using it correctly?" "Did you read the instructions?" "Are you cleaning the filters?" "Are you SURE you are cleaning the filters?!?" :D
by neurosphere
Sun Feb 11, 2024 1:43 pm
Forum: Personal Finance (Not Investing)
Topic: What data gets transmitted to the IRS when I e-file (Modernized e-File "MeF")
Replies: 21
Views: 1639

Re: What data gets transmitted to the IRS when I e-file (Modernized e-File "MeF")

I have a theory.... So, my theory is that a lot more than the "filing copy" is sent to the IRS. If so, I don't care, but I will be careful from now on what goes in the "non filed" documents in TT. Your examples are clear evidence that some supporting information entered into a retail e-file program DO get transmitted with the return. And maybe worksheets too? All of that is what I'm trying to learn, mostly for curiosity but also because some things really BUG me. Again, the triggering example was that when I entered a Vanguard EIN this year for a form, taxact auto-filled the address with the version stored in the software (from last year) but the address on the new document I received was a new address. Is the address f...