Search found 76 matches

by newacct
Thu Apr 15, 2021 10:59 pm
Forum: Personal Finance (Not Investing)
Topic: Filing an extension and stimmy checks and child tax credits
Replies: 11
Views: 615

Re: Filing an extension and stimmy checks and child tax credits

For the two payments last year, they used 2018 or 2019. There was pretty much a one-to-one correspondence between "did not file a 2019 return" and "did not receive EIP #2" in the VITA/Tax-Aide clientele we saw. Make of that what you will.... That is a good point. EIP #2 happened...
by newacct
Mon Apr 05, 2021 1:06 am
Forum: Personal Finance (Not Investing)
Topic: Can I open a spousal IRA for my non-citizen wife?
Replies: 8
Views: 853

Re: Can I open a spousal IRA for my non-citizen wife?

First, it is not true that she is not a resident alien just because she doesn't have a green card. Anyone who passes the Substantial Presence Test (the days of presence in the US that year + 1/3 the days of presence in the US the previous year + 1/6 the days of presence in the US the year before tha...
by newacct
Sun Mar 28, 2021 8:55 pm
Forum: Personal Finance (Not Investing)
Topic: Question regarding college age dependents and Covid relief checks
Replies: 5
Views: 496

Re: Question regarding college age dependents and Covid relief checks

From what I can see, the rule changed for the new 2021 payments this year. As long as you don't declare the child as a dependent, they are eligible. It doesn't matter if you can declare them as a dependent, just if you actually do https://www.congress.gov/bill/117th-congress/house-bill/1319/text#to...
by newacct
Fri Mar 26, 2021 4:14 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth Question: reporting of loss during conversion process
Replies: 7
Views: 399

Re: Backdoor Roth Question: reporting of loss during conversion process

There is some debate over whether you should have leftover basis in a Traditional IRA that was completely converted, but there doesn't seem to be a clear answer. See this thread.
by newacct
Thu Mar 25, 2021 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: Which deadlines have been extended till May 17th?
Replies: 9
Views: 1220

Re: Which deadlines have been extended till May 17th?

If the tax deadline is extended, does that mean the tax extension deadline is extended as well, or does that remain the same? No, that remains the same. Even for 2019 tax returns, when the regular deadline was extended to July 15, 2020, an extension would still have only gotten you to October 15, 2...
by newacct
Wed Mar 24, 2021 2:07 pm
Forum: Personal Finance (Not Investing)
Topic: Amending 2020 tax return with traditional IRA contribution to qualify for full stimulus #3
Replies: 20
Views: 1093

Re: Amending 2020 tax return with traditional IRA contribution to qualify for full stimulus #3

Thanks to all for their replies. To clarify, let's say the IRS sends me a stimulus based on my already-filed, non-amended 2020 taxes, in which AGI is $157,000. The amount sent would be $1,680. Now let's say that between now and April 15, I contribute $6,000 to my wife's traditional IRA, making my 2...
by newacct
Sat Mar 20, 2021 10:47 pm
Forum: Personal Finance (Not Investing)
Topic: Did not received 1099-INT from IRS
Replies: 3
Views: 651

Did not received 1099-INT from IRS

I filed my 2019 federal taxes just before the tax return deadline of July 15, 2020, and in addition to my tax refund, I received a separate additional payment of about $14 from the IRS, which I believe is the interest (because the refund was paid to me more than 45 days after April 15). I know that ...
by newacct
Sat Mar 20, 2021 6:15 pm
Forum: Personal Finance (Not Investing)
Topic: Deceased 3rd Stimulus Payment Question
Replies: 8
Views: 721

Re: Deceased 3rd Stimulus Payment Question

So last week we received a direct deposit of $1400 in our account for MIL who passed away 2-09-2020. I assume this 3rd payment would need to be returned. Correct? Yes. The text of the law says a person deceased before January 1, 2021 is not eligible for the 3rd stimulus advance payment (unless they...
by newacct
Sat Mar 20, 2021 12:36 am
Forum: Personal Finance (Not Investing)
Topic: Is this the correct way to determine my quarterly taxes?
Replies: 9
Views: 1454

Re: Is this the correct way to determine my quarterly taxes?

Just be sure you pay at least as much as you paid last year (and you know that amount, obviously), you can do that through withholding and/or estimated payments. But if you do it through estimated taxes, the estimated payments should be distributed evenly through the year. You cannot just wait unti...
by newacct
Sat Mar 20, 2021 12:26 am
Forum: Personal Finance (Not Investing)
Topic: How to report selling expenses when 1099-B reports gross proceeds and no basis
Replies: 2
Views: 393

Re: How to report selling expenses when 1099-B reports gross proceeds and no basis

Looks like choice #1 based on what I've bolded in your post. I've read some more, and form 8949 instructions for column (d), Proceeds, says, If you received a Form 1099-B or 1099-S (or substitute statement) for a transaction, enter in column (d) the proceeds shown on the form or statement you recei...
by newacct
Thu Mar 18, 2021 9:16 pm
Forum: Personal Finance (Not Investing)
Topic: Employer refusing to report state taxable income on W-2 after move
Replies: 10
Views: 1342

Re: Employer refusing to report state taxable income on W-2 after move

(even more complicated than your case since technically all of your pay was from CA No, technically, not all of their pay was from CA. The source of income for work income is where the work was performed. Their pay for work performed while physically in VA are from VA. See California Publication 10...
by newacct
Thu Mar 18, 2021 12:40 am
Forum: Personal Finance (Not Investing)
Topic: Filed 2020 taxes earlier than I should have
Replies: 2
Views: 488

Re: Filed 2020 taxes earlier than I should have

Yes, that's basically right, assuming that your 2020 return was processed before they determined eligibility for the third stimulus check.

If you qualify for any 3rd stimulus amount based on your 2021 taxes, you can still claim that on your 2021 tax return you file next year.
by newacct
Wed Mar 17, 2021 10:14 pm
Forum: Personal Finance (Not Investing)
Topic: Late 2020 baby how to get stimulus #3
Replies: 10
Views: 1191

Re: Late 2020 baby how to get stimulus #3

According to the American Rescue Plan Act, if your 3rd stimulus check was based on your 2019 tax returns, and you qualify for more based on your 2020 tax returns, and you file your 2020 tax returns by the "additional payment determination date" (which is 90 days after the due date of 2020 ...
by newacct
Wed Mar 17, 2021 12:11 am
Forum: Personal Finance (Not Investing)
Topic: How to report selling expenses when 1099-B reports gross proceeds and no basis
Replies: 2
Views: 393

How to report selling expenses when 1099-B reports gross proceeds and no basis

I have a 1099-B. In the "Proceeds", it has the gross proceeds from the sale of the stock, and the "gross proceeds" checkbox is checked in box 6. The "basis reported to IRS" checkbox in box 12 is not checked, and box 1e (cost or other basis) is blank. Various things were...
by newacct
Tue Mar 16, 2021 7:35 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need to pay estimated tax (1040-ES)?
Replies: 16
Views: 1223

Re: Do I need to pay estimated tax (1040-ES)?

If I realize in June, December etc, that I need to make estimated tax payments, or increase my tax withholding on my W-4, would this trigger a late payment penalty for not paying sooner in Q1, Q2,...? Yes. As long as you ensure that at the end of the year, your withholding alone (not including any ...
by newacct
Sun Mar 14, 2021 10:56 pm
Forum: Personal Finance (Not Investing)
Topic: Yet another backdoor IRA tax question...
Replies: 9
Views: 689

Re: Yet another backdoor IRA tax question...

You had $12000 of nondeductible contributions and $3 of earnings in your Traditional IRA, so 12000/12003 = about 99.975% of it is after-tax and about 0.025% of it is pre-tax (earnings in Traditional IRA are always pre-tax). So your $12000 conversion in 2020 consists of 12000 * 99.975% = $11997 after...
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: 16
Views: 1007

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: 1089

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: 16
Views: 1007

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: 15
Views: 1911

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: 1435

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: 806

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: 479

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: 547

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: 547

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: 526

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: 1451

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: 1850

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: 175

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: 403

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: 738

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: 488

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: 488

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: 1460

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: 488

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: 1460

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: 135

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: 807

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: 720

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: 187

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: 172

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: 812

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: 1354

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: 2690

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: 2690

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: 1568

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: 1568

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...