Search found 60 matches

by newacct
Fri Feb 19, 2021 11:10 pm
Forum: Personal Finance (Not Investing)
Topic: Fixing Backdoor Roth Conversion not performed in the same year
Replies: 12
Views: 775

Re: Fixing Backdoor Roth Conversion not performed in the same year

haranoth wrote: Fri Feb 19, 2021 9:11 pm
newacct wrote: Fri Feb 19, 2021 6:48 pm So did you *convert* the money from Traditional IRA to Roth IRA in 2020? If you did a conversion in 2020, you should receive a 2020 1099-G.
You mean 1099-R right?
Yes. Sorry, typo.
by newacct
Fri Feb 19, 2021 6:53 pm
Forum: Personal Finance (Not Investing)
Topic: Pros and Cons of uneven quarterly estimated tax payments
Replies: 11
Views: 1071

Re: Pros and Cons of uneven quarterly estimated tax payments

The easiest approach is to be sure your withholding and estimated payments are at least as much as you paid the previous year. 110% of previous if your income is over $150k. You should also make those payments evenly or frontloaded as you've apparently done. Then timing of income and payments won't...
by newacct
Fri Feb 19, 2021 6:48 pm
Forum: Personal Finance (Not Investing)
Topic: Fixing Backdoor Roth Conversion not performed in the same year
Replies: 12
Views: 775

Re: Fixing Backdoor Roth Conversion not performed in the same year

There is nothing unusual about doing a conversion in a different year than the contribution. It works the same way. So did you *convert* the money from Traditional IRA to Roth IRA in 2020? If you did a conversion in 2020, you should receive a 2020 1099-R. If you instead did a rechacterization turnin...
by newacct
Fri Feb 19, 2021 6:43 pm
Forum: Personal Finance (Not Investing)
Topic: Paid too much estimated state tax. Is there a way out?
Replies: 13
Views: 1483

Re: Paid too much estimated state tax. Is there a way out?

Thanks for all the answers to my questions above. I won't be itemized my deduction, so I guess I won't have to pay extra taxes on the state refund. Does anyone know if TurboTax will understand this? I believe TT asks for input on State tax refund. Thanks again for all previous replies. I do feel mu...
by newacct
Sun Feb 14, 2021 3:26 am
Forum: Personal Finance (Not Investing)
Topic: COVID stimulus payments and tax returns . . .
Replies: 12
Views: 1382

Re: COVID stimulus payments and tax returns . . .

I heard that if you didn’t qualify for a stimulus payment based on your 2018 or 2019 income (probably because you were fully employed) but will on your 2020 return you may want to expedite filing ASAP so as to qualify for the proposed 3rd payment. Otherwise you may have to wait till next tax season...
by newacct
Tue Feb 09, 2021 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: Another backdoor Roth mistake
Replies: 7
Views: 799

Re: Another backdoor Roth mistake

If this is taxes only, since I did this contribution last month (January 2021) do I file this with my 2021 taxes? Or the filing that I've yet to do this year for 2020 taxes? Well you did not say whether it was a 2020 contribution or 2021 contribution. (Between January 1, 2021 and April 15, 2021, yo...
by newacct
Tue Feb 09, 2021 1:41 pm
Forum: Personal Finance (Not Investing)
Topic: Qualifying Child Age--economic impact payments
Replies: 5
Views: 474

Re: Qualifying Child Age--economic impact payments

Eligibility for the EIP and eligibility for the RRC are separate. According to the law, eligibility for EIP 1 was based on 2019 or 2018 tax year, and eligibility for EIP 2 was based on 2019 tax year, but eligibility for the RRC is based on the 2020 tax year.
by newacct
Fri Jan 22, 2021 6:59 pm
Forum: Personal Finance (Not Investing)
Topic: Indiana income living in Oregon
Replies: 4
Views: 545

Re: Indiana income living in Oregon

Live in Oregon, Work Out of State? If you are an Oregon resident but worked outside of Oregon, you are required to pay taxes in Oregon on that income. Oregon takes state income tax on any and all income that you made, even if it was out of state. You might also get taxed by the state in which you e...
by newacct
Fri Jan 22, 2021 6:49 pm
Forum: Personal Finance (Not Investing)
Topic: Indiana income living in Oregon
Replies: 4
Views: 545

Re: Indiana income living in Oregon

fabdog wrote: Fri Jan 22, 2021 6:04 pm Check Indiana's state tax website for what their filing thresholds are. If your wife's earnings are less than that, you can skip filing

Mike
According to this page, nonresidents must file IN tax return with any IN income.
by newacct
Thu Jan 21, 2021 11:55 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor ROTH IRA and 1099-R from 401k and 8606 form
Replies: 10
Views: 525

Re: Backdoor ROTH IRA and 1099-R from 401k and 8606 form

Did she get a 2020 or 2021 1099-R? If it was a 2020 1099-R, then code 8 means it was taxable in 2020.
by newacct
Thu Jan 21, 2021 7:25 pm
Forum: Personal Finance (Not Investing)
Topic: Green card but no social number, how to get stimulus checks?
Replies: 8
Views: 1443

Re: Green card but no social number, how to get stimulus checks?

If one spouse has an SSN and the other doesn't, they qualify for the money of one person ($1800). If both of them has SSNs, they qualify for $3600. They can claim the Recovery Rebate Credit on their 2020 tax return for any amount they did not receive as a check. What determines whether one of them h...
by newacct
Mon Jan 18, 2021 3:45 pm
Forum: Personal Finance (Not Investing)
Topic: ACA Insurance question regarding poverty level
Replies: 24
Views: 1831

Re: ACA Insurance question regarding poverty level

the state may also reject Medicaid application. snowman, Yes, this happens and whenever this happens, people are eligible to sign up on healthcare.gov. And Marketplace lets them sign up while below 100% poverty line. Klangfool & Mp123, As I was saying above, " If you have a marketplace pol...
by newacct
Thu Jan 14, 2021 3:25 am
Forum: Personal Finance (Not Investing)
Topic: Over-contributed in Roth IRA in 2019, options?
Replies: 1
Views: 164

Re: Over-contributed in Roth IRA in 2019, options?

You can't recharacterize 2019 contributions anymore. You can only recharacterize up to the tax filing deadline (including extensions). You also can't withdraw it to avoid the penalty anymore, as that can only be done up to the tax filing deadline. See Publication 590-A section "What if You Cont...
by newacct
Wed Jan 13, 2021 8:45 pm
Forum: Personal Finance (Not Investing)
Topic: Same year Rollover conversion & Backdoor Roth?
Replies: 9
Views: 395

Re: Same year Rollover conversion & Backdoor Roth?

Thanks for the responses, very helpful. A bit of clarifying information/questions. On 31Dec20, my Rollover IRA had a balance of $100K+ and my tIRA did not exist. On 7Jan21, my Rollover IRA had a balance of $0 and my tIRA started with $0. First of all, so-called "Rollover IRA" is Tradition...
by newacct
Tue Jan 12, 2021 5:03 pm
Forum: Personal Finance (Not Investing)
Topic: IRA Accident - how to handle/tax implications?
Replies: 7
Views: 731

Re: IRA Accident - how to handle/tax implications?

A recharacterization makes sense here, since it treats it as having been a Roth IRA contribution all along, which is what the OP wanted anyway. With a conversion, they would have to deal with the pro-rata rule if there was any money in Traditional/SIMPLE/SEP IRAs. Furthermore, they would either have...
by newacct
Sun Jan 10, 2021 3:42 am
Forum: Personal Finance (Not Investing)
Topic: Roth IRA now with potential recharacterization later, or tIRA now?
Replies: 8
Views: 484

Re: Roth IRA now with potential recharacterization later, or tIRA now?

We could always open a second tIRA for the wife with Fidelity or something if that's allowed. We have the check from her old 401k in the mail to us right now, and so her tIRA at Vanguard actually has a zero balance, but once we deposit the check it'll be 15k, and again, that will be here any day no...
by newacct
Sun Jan 10, 2021 1:41 am
Forum: Personal Finance (Not Investing)
Topic: Roth IRA now with potential recharacterization later, or tIRA now?
Replies: 8
Views: 484

Re: Roth IRA now with potential recharacterization later, or tIRA now?

I have a tIRA at Vanguard that has 4k in it. Are you saying to contribute to the tIRA and then covert it to Roth immediately? If you have existing pre-tax money in Traditional IRA then it won't work. If you make a nondeductible contribution to Traditional IRA, the after-tax money will get mixed wit...
by newacct
Sat Jan 09, 2021 8:11 pm
Forum: Personal Finance (Not Investing)
Topic: Mega backdoor after-tax conversion to personal ROTH IRA
Replies: 22
Views: 1454

Re: Mega backdoor after-tax conversion to personal ROTH IRA

I should have included this in the earlier post. https://www.irs.gov/retirement-plans/plan-participant-employee/rollovers-of-retirement-plan-and-ira-distributions Also, you only get to do one 60 day rollover in a year...and the year is measured in days, not a by calendar year. So you will need to b...
by newacct
Sat Jan 09, 2021 8:09 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA now with potential recharacterization later, or tIRA now?
Replies: 8
Views: 484

Re: Roth IRA now with potential recharacterization later, or tIRA now?

If you don't have existing pre-tax money in Traditional/SEP/SIMPLE IRAs, and thus can do a backdoor Roth IRA contribution (contribute to Traditional IRA and then convert to Roth IRA), and you are not sure whether you will hit the income limit for direct Roth IRA contributions, you should always do a...
by newacct
Sat Jan 09, 2021 2:42 am
Forum: Personal Finance (Not Investing)
Topic: Mega backdoor after-tax conversion to personal ROTH IRA
Replies: 22
Views: 1454

Re: Mega backdoor after-tax conversion to personal ROTH IRA

When rolling over from Traditional 401k to IRA, you are allowed to split it so that after-tax money goes to Roth IRA and pre-tax money (including earnings which are always pre-tax) go to Traditional IRA, resulting in no tax.
by newacct
Thu Jan 07, 2021 7:43 pm
Forum: Personal Finance (Not Investing)
Topic: EIP1 rules change?
Replies: 1
Views: 131

Re: EIP1 rules change?

Yes, the recent law retroactively changed the rules for EIP 1.
by newacct
Wed Jan 06, 2021 5:22 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to understand Economic Impact Payment (EIP)
Replies: 9
Views: 765

Re: Trying to understand Economic Impact Payment (EIP)

Drew31 wrote: Wed Jan 06, 2021 12:58 pm Thanks for this. Where do you find the draft for future reference?
https://apps.irs.gov/app/picklist/list/ ... Forms.html
by newacct
Tue Jan 05, 2021 12:56 pm
Forum: Personal Finance (Not Investing)
Topic: Stimulus Check Question
Replies: 8
Views: 689

Re: Stimulus Check Question

My wife and I make too much to receive CARES stimulus, but we have two children and received stimulus funds for each of them back in May and again this morning (January 4th). Are you sure you made too much with your 2019 AGI (or 2018 AGI for the first stimulus check if you hadn't filed for 2019 at ...
by newacct
Mon Jan 04, 2021 3:39 pm
Forum: Personal Finance (Not Investing)
Topic: Can I recover tax on unemployment benefits repaid in subsequent year of less than $3000?
Replies: 1
Views: 176

Can I recover tax on unemployment benefits repaid in subsequent year of less than $3000?

Suppose I received unemployment benefits of total $2000 in 2020 in error, and repaid all of it in 2021. The unemployment benefits were not repaid in the year received, so they are included as taxable income in the year received (2020). Do I get to somehow recover that tax after I repaid the unemploy...
by newacct
Tue Jul 07, 2020 7:36 pm
Forum: Personal Finance (Not Investing)
Topic: Meaning of columns in California other state tax credit
Replies: 1
Views: 170

Meaning of columns in California other state tax credit

In California Form 540 Schedule S (Other State Tax Credit), in Part 1, you list items of income, and for each, you list a "(b) Double-taxed income taxable by California" and "(c) Double-taxed income taxable by other state". I don't understand what is the difference between (b) an...
by newacct
Sun Apr 12, 2020 1:41 am
Forum: Personal Finance (Not Investing)
Topic: Stimulus Check Question
Replies: 2
Views: 816

Re: Stimulus Check Question

The $500 for the children factor into whether they "make too much" or not. For people who file jointly, the payment starts phasing out at an AGI of $150,000, and the payment reduces $5 for every $100 more of income. So for a couple with no dependent children, their payment of $2400 phases ...
by newacct
Fri Apr 10, 2020 12:10 pm
Forum: Personal Finance (Not Investing)
Topic: Any point in contributing to a nondeductible IRA?
Replies: 16
Views: 810

Re: Any point in contributing to a nondeductible IRA?

One point is as an intermediate step in the "backdoor Roth IRA contribution", where you bypass the Roth IRA contribution income limits by making a non-deductible contribution to a Traditional IRA and then convert it to Roth IRA. If you have no pre-tax money in Traditional IRA, the result i...
by newacct
Thu Apr 09, 2020 10:30 pm
Forum: Personal Finance (Not Investing)
Topic: Increase W4 or pay quarterly tax estimates?
Replies: 21
Views: 1331

Re: Increase W4 or pay quarterly tax estimates?

One consideration is that, if you need to pay estimated taxes, enough estimated taxes need to be paid by each quarter's deadline -- you cannot just pay them all at the end of the year. On the other hand, it doesn't matter where in the year you have tax withheld from your paycheck. Even if you had in...
by newacct
Thu Apr 09, 2020 9:15 pm
Forum: Personal Finance (Not Investing)
Topic: 2020 estimated tax dates
Replies: 30
Views: 2624

Re: 2020 estimated tax dates

It seems that the 2nd quarter estimated tax payment deadline has also been extended to July 15. From this news release : Besides the April 15 estimated tax payment previously extended, today’s notice also extends relief to estimated tax payments due June 15, 2020. This means that any individual or c...
by newacct
Wed Apr 08, 2020 4:06 pm
Forum: Personal Finance (Not Investing)
Topic: 2020 estimated tax dates
Replies: 30
Views: 2624

Re: 2020 estimated tax dates

I believe that the fact that the 2nd quarter due date is before the 1st quarter due date is only relevant if you want to use the "Short Method" for calculating the underpayment penalty on Form 2210, because the Short Method is only applicable if all 4 payments are equal, so you cannot coun...
by newacct
Tue Apr 07, 2020 6:19 pm
Forum: Personal Finance (Not Investing)
Topic: Stimulus check cutoff time
Replies: 14
Views: 1567

Re: Stimulus check cutoff time

There appears to be some debate, Kiplinger says it's still an open question as the law doesn't directly address over-payment so it will be left to the IRS to determine. They also say if they had to guess they don't think the IRS will require a payback, but I don't think you can count on that: https...
by newacct
Tue Apr 07, 2020 6:18 pm
Forum: Personal Finance (Not Investing)
Topic: Stimulus check cutoff time
Replies: 14
Views: 1567

Re: Stimulus check cutoff time

I think this is important for people I am giving a talk to next week. Many have not filed yet, but will be getting a refund. So typically they'd want to file now to get the refund sooner. But many of them also had significantly increased income from 2018 to 2019, so might want to wait. In that case...
by newacct
Tue Apr 07, 2020 6:14 pm
Forum: Personal Finance (Not Investing)
Topic: Question about CARES stimulus checks
Replies: 7
Views: 779

Re: Question about CARES stimulus checks

Though the IRS may use the birth date(s) of ones dependent(s) in determining the dependent adder. I don't see anything in the law that allows them to subtract the $500 from the advance refund because of the dependent's age, if it you correctly claimed the child on your 2019 (or 2018) tax return. Su...
by newacct
Sat Apr 04, 2020 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: Divorced and Stimulus Check
Replies: 3
Views: 647

Re: Divorced and Stimulus Check

Rather than thinking of there being a single $500 that one person gets or the other gets, the more correct way is to consider each of your payments separately. Your check is based upon your 2019 tax return, or if you haven't filed by the time they make the determination, your 2018 tax return. And se...
by newacct
Sat Apr 04, 2020 1:21 pm
Forum: Personal Finance (Not Investing)
Topic: CARES Act 2019 or 2020?
Replies: 17
Views: 1079

Re: CARES Act 2019 or 2020?

Just after the CARES Act was passed I read that, although checks will be distributed in the next month or two, the amount was just an estimate based on 2018 or 2019 taxes, whichever was the most recent filed, and that the final calculation would be based on one's 2020 income. Is that correct? This ...
by newacct
Thu Apr 02, 2020 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: COVID-19 Stimulus Payment Issue
Replies: 86
Views: 8037

Re: COVID-19 Stimulus Payment Issue

I see nothing in the law that allows that. I do. Say Person A claimed Child C (under 16, has SSN) as a dependent in 2018, and Person B claimed Child C as a dependent in 2019. Person B has filed 2019 tax returns. Person A has not filed (and will not file for a while) 2019 tax returns. Then according...
by newacct
Thu Apr 02, 2020 11:16 am
Forum: Personal Finance (Not Investing)
Topic: COVID-19 Stimulus Payment Issue
Replies: 86
Views: 8037

Re: COVID-19 Stimulus Payment Issue

IRS is exceptional at checking Social Security numbers. I see no way the same SSN will be part of two checks. It's not just an issue of "checking"; it's also a question of what the rules are. Where are you getting the idea that there is "no way the same SSN will be part of two checks...
by newacct
Thu Apr 02, 2020 11:08 am
Forum: Personal Finance (Not Investing)
Topic: Must file tax return for stimulus check?
Replies: 28
Views: 2191

Re: Must file tax return for stimulus check?

JonnyB wrote: Thu Apr 02, 2020 9:07 am If the taxpayer does not claim the senior as a dependent, then they lose the ordinary $500 credit, but the senior then gains a $1200 rebate.
But according to the law, the senior in this case shouldn't get the rebate, if they *can be* claimed as a dependent, even if they aren't actually claimed.
by newacct
Thu Apr 02, 2020 1:08 am
Forum: Personal Finance (Not Investing)
Topic: Must file tax return for stimulus check?
Replies: 28
Views: 2191

Re: Must file tax return for stimulus check?

A group of 40 Senators has written a letter requesting that payments be made to social security recipients without requiring a return to be filed. I would wait a few days and see the final instructions. The Treasury announced that Social Security recipients do not need to file an abbreviated return...
by newacct
Thu Apr 02, 2020 1:06 am
Forum: Personal Finance (Not Investing)
Topic: Must file tax return for stimulus check?
Replies: 28
Views: 2191

Re: Must file tax return for stimulus check?

But again, they might not if the IRS cross checks their SSN and finds it on the children's return as a dependent. But the law says they are not eligible for the payment if they *can be* claimed by someone else as a dependent, even if they are not actually claimed. So how can the IRS "cross-che...
by newacct
Wed Apr 01, 2020 3:01 pm
Forum: Personal Finance (Not Investing)
Topic: Must file tax return for stimulus check?
Replies: 28
Views: 2191

Re: Must file tax return for stimulus check?

livesoft wrote: Wed Apr 01, 2020 2:54 pm So if one paid less than $1200 in taxes in 2018, 2019, and 2020, then will they still get $1200 in the final accounting?
yes
by newacct
Tue Mar 31, 2020 11:46 am
Forum: Personal Finance (Not Investing)
Topic: 2019 Tax Filing & HSA/Roth IRA timelines
Replies: 1
Views: 142

Re: 2019 Tax Filing & HSA/Roth IRA timelines

Yes for both IRA and HSA. See this FAQ.
by newacct
Mon Mar 30, 2020 6:20 pm
Forum: Personal Finance (Not Investing)
Topic: underpayment of tax penalty waiver for 2020?
Replies: 8
Views: 649

Re: underpayment of tax penalty waiver for 2020?

If you get the check now, that's an advance tax credit that will be subtracted from the tax credit you get for 2020 tax year for the stimulus (though it will not be reduced below 0), so if you get the full $1200 now, you will not have a tax credit for 2020. If you do not get the check because you do...
by newacct
Mon Mar 30, 2020 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: underpayment of tax penalty waiver for 2020?
Replies: 8
Views: 649

Re: underpayment of tax penalty waiver for 2020?

I am not sure why you think the $1200 payment has anything to do with the underpayment penalty. The tax filing and payment deadline for 2019 federal income tax was postponed to July 15, 2020. The deadline to pay 2020 first quarter federal estimated taxes has also been postponed to July 15, 2020. (Bu...
by newacct
Mon Mar 30, 2020 2:07 pm
Forum: Personal Finance (Not Investing)
Topic: Do children need a social security number in order to receive a child payment under the recently passed stimuls package?
Replies: 16
Views: 1336

Re: Do children need a social security number in order to receive a child payment under the recently passed stimuls pack

The stimulus checks are based on recent tax returns. The only only way the IRS will know about the child is if they had been claimed as a dependent, and the only way to claim a dependent child is with their SSN. So, yes they need a SSN. Dependents without SSNs who are not eligible for SSNs can be c...
by newacct
Sun Mar 29, 2020 11:31 am
Forum: Personal Finance (Not Investing)
Topic: CARES act Stimulus for 17-year-old question
Replies: 5
Views: 778

Re: CARES act Stimulus for 17-year-old question

If you are already 17 at the end of 2019 (i.e. you did not qualify for the child tax credit for 2019), your parents should not get the $500 in the check. You cannot get the $1200 as long as you can be claimed as a dependent. If you meet the conditions in the law for someone to claim you as a depende...
by newacct
Sat Mar 28, 2020 10:32 pm
Forum: Personal Finance (Not Investing)
Topic: CARES act Stimulus for 17-year-old question
Replies: 5
Views: 778

Re: CARES act Stimulus for 17-year-old question

My understanding is that there are two parts of the recovery rebate. There is a tax credit that applies to 2020 taxes, and the eligibility and amounts of that tax credit would be based on the situation for 2020 tax year. Your parents would not qualify for the $500 credit if you have turned 17 as of ...
by newacct
Wed Feb 12, 2020 12:45 am
Forum: Personal Finance (Not Investing)
Topic: Taxation of RSUs vested but not delivered
Replies: 10
Views: 1040

Re: Taxation of RSUs vested but not delivered

Assuming that the stocks are considered constructively received in the later year, would FICA taxes still have to be withheld for RSUs in the year of vesting due to the rules in Treasury Regulation 31.3121(v)(2), due to it being considered a nonqualified deferred compensation plan? Or would it not b...