Search found 210 matches
- Thu Sep 05, 2019 2:45 pm
- Forum: Personal Consumer Issues
- Topic: Do I need a business license? (California)
- Replies: 11
- Views: 1149
Re: Do I need a business license? (California)
Thank you once again. I filed online for my business license and am awaiting the City's response. The pointers and discussion here were very helpful to me.
- Tue Sep 03, 2019 8:15 pm
- Forum: Personal Consumer Issues
- Topic: Do I need a business license? (California)
- Replies: 11
- Views: 1149
Re: Do I need a business license? (California)
Thank you both. The California (Nolo) links indicates that I could use my name as the business name. Good to know
Also good to know that independent consultants tend to use their own name for the business.
Also good to know that independent consultants tend to use their own name for the business.
- Tue Sep 03, 2019 7:27 pm
- Forum: Personal Consumer Issues
- Topic: Do I need a business license? (California)
- Replies: 11
- Views: 1149
Re: Do I need a business license? (California)
Thank you for the replies. They came in just in time for me - I am about to register for my city's business license.
If I may ask - do you use a business name other than your own name for the business license? Trying to figure out if the name matters to large corporations... I was going to just use my full name as the name of the business so that any checks (or direct deposits) are easy to handle.
I do have a separate bank account that I use (mostly) for business transactions.
If I may ask - do you use a business name other than your own name for the business license? Trying to figure out if the name matters to large corporations... I was going to just use my full name as the name of the business so that any checks (or direct deposits) are easy to handle.
I do have a separate bank account that I use (mostly) for business transactions.
- Tue Sep 03, 2019 5:48 pm
- Forum: Personal Consumer Issues
- Topic: Do I need a business license? (California)
- Replies: 11
- Views: 1149
Do I need a business license? (California)
Hello, I am about to start a consulting business (and leave my W-2 Job). I have a consulting situation lined up with a large company and am in the process of working out the logistics. I have a Federal EIN number already. I do not have a business license from my city (in California). And I do not have business insurance - yet. I am a sole proprietor and there is nobody else in my consulting business (and I do not expect this to change). Question: - Should I get a business license from my city? (The County does not issue one). My assumption is that at least some large employers hiring consultants will require one. - Should I get business insurance? I do business analysis work (desk job, work from home) so there isn't a big liability concern....
- Mon Apr 15, 2019 7:24 pm
- Forum: Personal Finance (Not Investing)
- Topic: Can I semi-retire now?
- Replies: 138
- Views: 16535
Re: Can I semi-retire now?
Thank you all who have participated in this thread. Its been instructive. As one who has three older teens, including one in first year of college, one a high school senior and one a high school sophomore, I would like to offer a perspective on the OP's situation from the view point of the cost of children. We live in a fairly HCOL area on the east coast, with the youngest having and continues to play on one of those expensive soccer teams mentioned by another poster, (don't forget the travel expenses) piano lessons, tennis club memberships and lessons, basketball teams (did I mention travel expenses?) teeth extractions (total of 12 teeth!), braces for one (5k cost total btw), prom, tutoring for ACT/SAT, college planner expenses and finally...
- Sun Apr 14, 2019 4:24 pm
- Forum: Personal Finance (Not Investing)
- Topic: Can I semi-retire now?
- Replies: 138
- Views: 16535
Re: Can I semi-retire now?
Let me re-quote the plan from the OP: “I semi-retire and become a consultant in the fall. Wife gets on a path to returning as a full-time public school teacher.” The way I read it, the OP’s wife has been a stay-at-home mom for a number of years. The OP isn’t planning to send her “to the office in his place” to live a life of leisure. It is a role and career shift/switch for both of them. Assuming both partners are in agreement, what’s wrong with that? It allows dad to spend more time with the kids and the mom to re-focus on her teaching career (and improve her and the family’s financial security by building up her pension). Hi TravelGeek - Your intuition is right. My wife has been a stay-at-home Mom for 8+ years. One our first child was bo...
- Sun Apr 14, 2019 3:45 pm
- Forum: Personal Finance (Not Investing)
- Topic: Can I semi-retire now?
- Replies: 138
- Views: 16535
Re: Can I semi-retire now?
skp - thank you for sharing how the world looked from your point-of-view on the other side of a similar decision. It was very valuable. renue74 - thank you for the question. Following your notes I had a conversation with my wife about her feelings regarding our current plan. As per my wife: She is going to go back to teaching at some point, even if we had the resources to fully retire (which would be the case if we moved to the MCOL Sierra Foothills where she has friends and family) What worries her is the first year of going back to teaching - when she is going to have learn balancing teaching with making time for kids. This is going to be a "transition" pain that she thinks she will have to go through no matter when she goes bac...
- Sun Apr 14, 2019 10:01 am
- Forum: Personal Finance (Not Investing)
- Topic: Can I semi-retire now?
- Replies: 138
- Views: 16535
Re: Can I semi-retire now?
The quotes below from EnjoyIt, EddyB, HEDGEFUNDIE and mnice capture where we are as a family nicely. In my current job, I have asked myself "if I wasn't getting paid to be in this meeting or working on that project, would I be here?" The answer is often (but not always) no. With kids being old enough to go to school, I am now approaching the point where I can do something about the parts of paid work I don't like. My wife and I are willing to trade less (income) money for more control over our time. We are also willing to barter how much time we spend with the kids: a little less for my wife when she starts working (the kids will be in school during the same hours as her work, but overall she will have a bit less time for the kids...
- Sat Apr 13, 2019 9:42 pm
- Forum: Personal Finance (Not Investing)
- Topic: Can I semi-retire now?
- Replies: 138
- Views: 16535
Re: Can I semi-retire now?
When our first child came 8+ years, my wife and I went through some big changes in life-style. There were many stressful times. With both kids about to be in school, we have an opportunity to re-evaluate how we spend our time and how much to trade time (and whose time) for money. If possible, we want to increase the amount of time that I spend with the kids. The discussion here points to allocating more for expenses for kids. While this can come from more savings, it can also come from raising the income bar for consulting (and/or my small business). The consulting/small-business plan is something that I have to make more concrete for myself - the consulting will be in a subset of the area that I already work in. The small business in turn ...
- Sat Apr 13, 2019 5:54 pm
- Forum: Personal Finance (Not Investing)
- Topic: Can I semi-retire now?
- Replies: 138
- Views: 16535
Re: Can I semi-retire now?
The plan above does not rely on 72(t) as our goal is to break-even against expenses while we have a kid in K-12. That is ~13 years by which time I will be ~60 and can tap into retirement savings if needed.
am wrote: ↑Sat Apr 13, 2019 3:43 pm How do you intend on withdrawing from tax deferred accounts? 72(t)?
I see posts all the time about 1+ mil investments in 40s, early retirement desire but some of money is often tax deferred. Seems like getting to this money is cumbersome and amount forced on you longer than you may need using the 72t.
- Sat Apr 13, 2019 2:07 pm
- Forum: Personal Finance (Not Investing)
- Topic: Can I semi-retire now?
- Replies: 138
- Views: 16535
Re: Can I semi-retire now?
HEDGEFUNDIE - you summarized it well. The plan looks feasible, but also needs a bit of update (wrt expenses) and some things to fall into place (wife's teaching job) renue74 - I will post an update on this thread when we are a little further along. Thank you all for your insights! Do it, do it now. If you have Bogleheads telling you that it is on the edge of working / not working, then you should rest assured that you can absolutely retire. I salute you for being one of the silent majority in the Bay Area not working in tech and making mid-six figures. Yes. Your plan seems quite viable assuming your wife gets a full time teaching position with health benefits. Your consulting income, assuming that is viable, would provide even more assuranc...
- Sat Apr 13, 2019 8:15 am
- Forum: Personal Finance (Not Investing)
- Topic: Can I semi-retire now?
- Replies: 138
- Views: 16535
Re: Can I semi-retire now?
Regarding consulting: I have been trying it out (on the side) but consider myself relatively in-experienced in this area. Last year I made $8K via consulting. In the previous two years, the numbers were approximately $4K and $2K. I have had a couple of inquiries about consulting jobs in 2019. One from a former manager at a different company (although by the time I am available this opportunity may not exist any more). I will attempt to semi-retire with a consulting offer in hand when the time comes, knowing that the consulting can go all-wrong. Your consulting income, assuming that is viable, would provide even more assurance to your plan. How easy will it be to get some consulting gigs? Is this something where you are already quite sure th...
- Sat Apr 13, 2019 7:56 am
- Forum: Personal Finance (Not Investing)
- Topic: Can I semi-retire now?
- Replies: 138
- Views: 16535
Re: Can I semi-retire now?
carolinaman, stan1, renue74, tyrion - thank you for your thoughts on teaching . My wife is in the midst of applying to local school districts. I will not semi-retire till we have a better sense of her viability as a teacher (returning to paid work from an 8 year break to raise kids) and the local job market for teachers. I wanted to get this post out now and collect this community's feedback so that I would be ready if/when my wife's teaching job lands. Your plan seems quite viable assuming your wife gets a full time teaching position with health benefits. Yes, but I think you'd want your wife to have her teaching job with health insurance benefits first and put a little higher priority on the consulting/business ideas. Your expenses are ve...
- Sat Apr 13, 2019 7:43 am
- Forum: Personal Finance (Not Investing)
- Topic: Can I semi-retire now?
- Replies: 138
- Views: 16535
Re: Can I semi-retire now?
VeganBH, Patzer - thanks for your additional comments on social security I used the tool linked to below and discovered that at full retirement age (67), using my earnings record upto 2019, the benefit amount will be $2400. That's a useful number to know! I had similar questions about calculating SS using zero years/early retirement. Someone on the forum recommended this tool: https://socialsecurity.tools/app.html which I found to be fantastic. Just takes a few minutes (cut/paste from SS.gov), and a nice report is generated. Good luck to you. Sure, just want you to know that with a government pension, your wife's Social Security benefit would be reduced by an amount equal to two-thirds of her government pension. So, she would get half of yo...
- Fri Apr 12, 2019 10:33 pm
- Forum: Personal Finance (Not Investing)
- Topic: Can I semi-retire now?
- Replies: 138
- Views: 16535
Re: Can I semi-retire now?
Hello csm, Patzer, EnjoyIt, BanquetBeer Thanks for your comments on taxes, subsidies and social security. I edited my original post to indicate that while my wife will be eligible for spousal social security benefits, as a CA public school teacher, she does not pay into the social security system. So she is not eligible for benefits on her own. ACA is indeed a way for us to get healthcare insurance but we will likely only go down that path if my wife is not able to secure employment with benefits. While the kids are still young, for peace-of-mind, we want to make sure that between the two of us we are meeting all expenses without dipping into our savings. If my wife finds work as a public school teacher, we will have the added benefit of in...
- Fri Apr 12, 2019 7:25 pm
- Forum: Personal Finance (Not Investing)
- Topic: Can I semi-retire now?
- Replies: 138
- Views: 16535
Re: Can I semi-retire now?
csm, majiaknight, cowdogman, CurlyDave, Time2Quit, BanquetBeer - thank you for your observations on kids. From the K-12 point of view, we are well situated: Our kids are in a lottery (and alternate) public school for K-5. My wife likes this school a lot and is a part of the school community in a big way. This elementary school extends to middle school (6-8) as well. From what we know now, we will be keeping the kids in the same place for middle school. We do have an option of transferring to the neighborhood middle school (this school is highly rated but wife does not go by ratings). My wife likes the neighborhood high school (although its rating is middle-of-the-road). Because of the location of the current elementary/middle school, our ki...
- Fri Apr 12, 2019 11:16 am
- Forum: Personal Finance (Not Investing)
- Topic: Can I semi-retire now?
- Replies: 138
- Views: 16535
Re: Can I semi-retire now?
I don't see it. Far too much risk. You edited to say the house is in the savings. You can't live off your house. How much is that out of the savings? Being HCOL that must be a good chunk. Are your net investments then closer to $1M? I plan to live to ~90. For you that means 40 years of living off your savings in a HCOL area with teenage kids. Yikes. Hi Miguelito - The house is NOT in the savings number of $1.8M (I just double checked the EDIT to the original post for accuracy). Yes, but there are some "ifs" in your scenario. If you don't move, don't make some supplemental income and your wife doesn't find a job, you will be cutting it close. As others pointed out, property taxes are obviously an expense. How accurate are the othe...
- Fri Apr 12, 2019 8:45 am
- Forum: Personal Finance (Not Investing)
- Topic: Can I semi-retire now?
- Replies: 138
- Views: 16535
Re: Can I semi-retire now?
Does the expense exclusion of $13k apply just to property taxes or to all taxes and health insurance? Your plan seems quite viable assuming your wife gets a full time teaching position with health benefits. Your consulting income, assuming that is viable, would provide even more assurance to your plan. Thanks for taking a look carolinaman. The exclusion applies to all taxes and health insurance premiums. I have edited the original post to be clearer about this. To say this differently, our expenses from Fall onwards will be: $45K + $13K property taxes + state and federal taxes + health insurance premiums The state and federal taxes will likely be small given our families income going forward, but the health insurance premiums may not be, d...
- Fri Apr 12, 2019 7:08 am
- Forum: Personal Finance (Not Investing)
- Topic: Can I semi-retire now?
- Replies: 138
- Views: 16535
Re: Can I semi-retire now?
Yes. You have 40x expenses. You can retire fully now. Add in social security, pension, and possibly 2 sources of income, and you should have semi retired long ago. The wildcards are college if you're paying for that, future increased health expenses, and how much will you invest in the small business idea? But I think you're good to do whatever you want. I think the term is "financial independence." Congrats. Thank you for the validation mega317. For college our plan is to cover 4 years of in-state for both kids (if they choose to go to college or equivalently a trade school or similar). For the small business, I will restrict myself to ideas that are no or very low capital. I.e. I'll invest time but not much capital, unless the ...
- Thu Apr 11, 2019 10:47 pm
- Forum: Personal Finance (Not Investing)
- Topic: Can I semi-retire now?
- Replies: 138
- Views: 16535
Can I semi-retire now?
Howdy, This forum has been a tremendous help in sorting out my finances the past few years. Thank you. I am hoping to benefit from the forum’s wisdom on a specific question: Can I semi-retire in Fall (at the start of the next school year)? Situation: Married with two kids: this fall, the older one will be in 3rd grade, the younger one will start kindergarten (school is a public school) I am 47, wife is 44 Savings: $1.8M (including $280K in two 529s; $650K in taxable), invested 60% stocks, 40% bonds + cash Social security will be ~$3K/mo for me (this is likely an overestimate if I semi-retire); wife will not have any social security (she is a former public school teacher and has a very small pension based on 7 years of work as a public schoo...
- Sun Feb 24, 2019 10:31 pm
- Forum: Personal Finance (Not Investing)
- Topic: State Tax Refund, AMT and New Tax Law
- Replies: 5
- Views: 1109
Re: State Tax Refund, AMT and New Tax Law
A state tax refund is taxable to the extent that you received a tax benefit from the overpayment. Thank you for your reply David. I spent the whole day, after my initial post, discovering the above in various forum posts and linked articles. Only now am I internalizing it. In 2017, you paid AMT, and you received a $3500 state tax refund. Would you still have paid AMT if you did not receive that state tax refund? If so, then you got no tax benefit from it, and your refund is not taxable. If reducing your state tax deduction by $2000 would have eliminated the AMT, then you received a benefit from $1500 of the refund, and only $1500 is taxable. (That is, if you had paid $2000 less in state tax in 2017, and received a $1500 refund, your tax wo...
- Sun Feb 24, 2019 12:12 pm
- Forum: Personal Finance (Not Investing)
- Topic: State Tax Refund, AMT and New Tax Law
- Replies: 5
- Views: 1109
State Tax Refund, AMT and New Tax Law
Hello, I started doing my own taxes in 2016 using Turbo Tax (TT, Desktop version). In 2016 and 2017 I was subject to AMT and in both years I had a CA State Tax refund. Approximately a year ago when I finalized my 2017 tax returns, I recall that TT 2017 (also Desktop version) asked me if I wanted to calculate how much of my 2016 CA state tax refund was taxable using TT 2016. I went through this exercise and the result was that there was no difference in my 2017 Tax return (i.e. doing the calculations using TT 2016 made no difference to the taxability status of my 2016 CA State refund in 2017 and my tax refunds remained the same). I just finished (but have not yet filed) my 2018 tax returns. I had ~$3500 in CA state tax refund for Tax year 20...
- Sun Apr 15, 2018 10:37 pm
- Forum: Personal Consumer Issues
- Topic: Mid-40s in tech - how to pass off as acceptably young
- Replies: 111
- Views: 17280
Re: Mid-40s in tech - how to pass off as acceptably young
Another solid experience report. Thank you!mtbouchard wrote: ↑Sat Apr 14, 2018 5:21 pm I'm also mid-40 in tech and find this interesting. Ive been a hiring manager at a big-tech, but now an IC at a FANG.
- Sat Apr 14, 2018 11:13 am
- Forum: Personal Consumer Issues
- Topic: Mid-40s in tech - how to pass off as acceptably young
- Replies: 111
- Views: 17280
Re: Mid-40s in tech - how to pass off as acceptably young
Thanks for the "Real life" experience report. Several points there that I need to think about.sunny_socal wrote: ↑Sat Apr 14, 2018 10:03 am This thread is very relevant for me, same age and also facing cuts at my Megacorp. I'm looking for work to stay ahead of the inevitable cut. Don't know if it will affect me but I'll be leaving regardless.
- Sat Apr 14, 2018 11:06 am
- Forum: Personal Consumer Issues
- Topic: Mid-40s in tech - how to pass off as acceptably young
- Replies: 111
- Views: 17280
Re: Mid-40s in tech - how to pass off as acceptably young
I think you misunderstand the intent of my original post. Lots of actionable input from many on this thread. Not just for me but for others as well. And I am using it "update and improve"quantAndHold wrote: ↑Sat Apr 14, 2018 10:45 am Stop trying to play games, and spend your time and effort figuring out how to sell yourself to them as a leader.
Further your perception above (of me) is inaccurate (relative to my goals/situation).
Nevertheless I wish you the best
[edited for clarity]
- Sat Apr 14, 2018 11:02 am
- Forum: Personal Consumer Issues
- Topic: Mid-40s in tech - how to pass off as acceptably young
- Replies: 111
- Views: 17280
Re: Mid-40s in tech - how to pass off as acceptably young
I think you are misreading the tone. Not demoralized and not desperate. Just evaluating and updating how I present myself and interview.
Thanks for the rest of your post. Some good points there.
- Fri Apr 13, 2018 10:47 pm
- Forum: Personal Consumer Issues
- Topic: Mid-40s in tech - how to pass off as acceptably young
- Replies: 111
- Views: 17280
Re: Mid-40s in tech - how to pass off as acceptably young
OP here. Some more comments and clarifications. Great input btw. Why only 18 mos : That's the minimum I want to spend in a place. If the role has more legs, I'll stay on and work with my wife to push out her return to teaching. Drift : There is no drift in my case. I had a ~10 year tech career (mostly outside the bay area and mostly software development and system design for hardware appliances). I consciously used a master's business degree to switch to the business side of tech companies. This second career has lasted ~10 years. Entrepreneurship : I want to make my next job, the last job on the corporate ladder. I won't be done working at that point - will launch a 3rd career, the details of which I am still figuring out, but that will li...
- Thu Apr 12, 2018 6:41 pm
- Forum: Personal Consumer Issues
- Topic: Mid-40s in tech - how to pass off as acceptably young
- Replies: 111
- Views: 17280
Re: Mid-40s in tech - how to pass off as acceptably young
OP here again. More good input. Keep it coming. Here are some more aggregated responses/comments/clarifications. Some of these will come off as funny or ridiculous. I am not aiming for either effect. Just looking to give some more detail so that I can act on responses (and hopefully help other posters in a similar situation). Apologies for the long post. Role: I have a business role in the tech sector. I do a little scripting with a statistics tool when Excel is too cumbersome. But I am not a practicing coder. I do as much powerpoint as excel. (I was a coder in an earlier lifetime and have an engineering undergraduate degree. I also have graduate level business degree). Technology: I keep up with technology news and try to understand why so...
- Thu Apr 12, 2018 10:16 am
- Forum: Personal Consumer Issues
- Topic: Mid-40s in tech - how to pass off as acceptably young
- Replies: 111
- Views: 17280
Re: Mid-40s in tech - how to pass off as acceptably young
OP here. Many useful responses upthread. Keep them coming. I am learning from each one. I am collecting my comments to the points above in one (long) post: Haircut and hair coloring: I am going to take care of this in the next couple of days by going to a somewhat more upscale place than I usually go to for a hair cut. I know that this matters. I have had some gray hair since I was 15 and the density has increased significantly since. Enough that when I was interviewing a few years ago at a place where I knew a few people, one acquaintance met me informally after my interviews and remarked "man you look old". A different acquaintance at my previous job remarked one day over lunch "I am as old as you but I don't look it becaus...
- Thu Apr 12, 2018 12:02 am
- Forum: Personal Consumer Issues
- Topic: Mid-40s in tech - how to pass off as acceptably young
- Replies: 111
- Views: 17280
Re: Mid-40s in tech - how to pass off as acceptably young
I am actually ok with the job not being fun for the next 18 months. I know that after that I will have a choice - of not working such a job as my wife will head back to work and that will be enough for us to meet expenses.quantAndHold wrote: ↑Wed Apr 11, 2018 11:51 pm Not every job is right for everyone. If you have to be something you aren’t to get the job, actually doing that job for months and years isn’t going to be very much fun.
The above said, I think a part of my problem is that I don't consciously thinking of "looking good" or "looking young" or "keeping up with what's new". If I need to do a bit more work on this front to look more current, I won't mind it.
- Wed Apr 11, 2018 11:35 pm
- Forum: Personal Consumer Issues
- Topic: Mid-40s in tech - how to pass off as acceptably young
- Replies: 111
- Views: 17280
Re: Mid-40s in tech - how to pass off as acceptably young
Thanks for the replies thus far
- I owe meetings to a couple of former directs (younger folk) that I informally mentor. I will be getting back to them!
- I don't have graduation dates on my resume, but a couple jobs go back before 2008. I will be dropping them from the resume.
- Unfortunately I do look mid-40s. I am in ok shape, but not awesome shape. I returned to running a few weeks. Will be stepping up the time/distance/frequency.
- Will not be discussing family in any of the interviews.
- I owe meetings to a couple of former directs (younger folk) that I informally mentor. I will be getting back to them!
- I don't have graduation dates on my resume, but a couple jobs go back before 2008. I will be dropping them from the resume.
- Unfortunately I do look mid-40s. I am in ok shape, but not awesome shape. I returned to running a few weeks. Will be stepping up the time/distance/frequency.
- Will not be discussing family in any of the interviews.
- Wed Apr 11, 2018 11:06 pm
- Forum: Personal Consumer Issues
- Topic: Mid-40s in tech - how to pass off as acceptably young
- Replies: 111
- Views: 17280
Mid-40s in tech - how to pass off as acceptably young
Hi All, I find myself back in the job market a year after I started my current role. I am 46 and in a business (middle-management) role at micro-cap tech company in Silicon Valley. Unfortunately my company hasn't been doing well lately and has had two large rounds of layoffs. New management has come into the company and are evaluating their options. Best I can tell, my role was valued higher by the previous management (most of whom are no longer around) than the new management. So it is time for me to proactively look for a job before the axe falls. I interviewed with one mega-corp over the phone and got rejected. I thought that I had done quite well in the phone screen and was looking forward to going onsite. The younger sounding interview...
- Sun Dec 17, 2017 10:17 pm
- Forum: Personal Finance (Not Investing)
- Topic: Fed Income and Social security taxes with two jobs
- Replies: 5
- Views: 1290
Re: Fed Income and Social security taxes with two jobs
Ok - so I went back and redid all the input into H&R Block 2017. I was still getting a penalty amount. In investigating why, I realized that I had set the Fed (W4) exemptions incorrectly when I took on the new job - my exemptions overcompensated for the duplicate payment of social security taxes
I was fortunate to catch the error in time to adjust my last paycheck to bring my Fed tax withholdings in line with my expected taxes.
Thank you again!
- Sun Dec 10, 2017 9:42 am
- Forum: Personal Finance (Not Investing)
- Topic: Fed Income and Social security taxes with two jobs
- Replies: 5
- Views: 1290
Re: Fed Income and Social security taxes with two jobs
Do the TT and H&RB forms have the correct amount on line 71? Building on FiveK's response, did you put your expected 2017 numbers in an one employer or two? Hi FiveK and istone19 I had input information into TT as two different employers. However I was overwriting information from my 2016 returns to do so and it is entirely possible that I did this in a way that confused TT. For H&R block I started fresh (since I have the 2017 version of the software), but it looks likely that I made some mistakes along the way since I am new to H&R block. Now that I know that penalties are based on a single pool (SS and Fed Income taxes taken together), I am going do redo my estimates from a clean slate and with some additional diligence to en...
- Sun Dec 10, 2017 12:31 am
- Forum: Personal Finance (Not Investing)
- Topic: Fed Income and Social security taxes with two jobs
- Replies: 5
- Views: 1290
Fed Income and Social security taxes with two jobs
Hello, I am hoping that someone can help me with a tax withholding question. Background: I had two jobs in 2017. The nature of my compensation for the two jobs was such that I was just above the social security cut-off of $127,200 in both jobs I am married and file taxes jointly with my wife My wife does not work currently but she will have a very small income in 2017 (perhaps $100) Our total income in 2017 is similar to that in 2016 When I started my second job in 2017 (I am still employed here), I had assumed that all my federal taxes (Federal Income tax, Social security tax and Medicare tax) go into a single pool. Thus I managed the taxes withholding through my second employer such that my total Federal taxes in 2017 would slightly excee...
- Wed Nov 01, 2017 6:08 pm
- Forum: Personal Finance (Not Investing)
- Topic: IRS Form 709 help; 529 super-funding mistake
- Replies: 11
- Views: 1868
Re: IRS Form 709 help; 529 super-funding mistake
Indeed I am/was in a community property state (California) and all funds came out of a bank account that we jointly owned. I have good records to back this up. The funding was via ACH transfer so (un) fortunately there was no check to sign.kaneohe wrote: ↑Wed Nov 01, 2017 5:52 pm There may be a difference between community and non-community states since the IRS form instructions only mention community property states
which I believe you are (were) in. Your link talks about separate checks for H/W which I'm hoping you don't have to do in community property states.
btw........are you using the special 5 yr rule for the 529 contributions when over 28K?
I am using the 5 year rule for DS2 in 2016 as he is the one who was over the 28K limit.
- Wed Nov 01, 2017 5:30 pm
- Forum: Personal Finance (Not Investing)
- Topic: IRS Form 709 help; 529 super-funding mistake
- Replies: 11
- Views: 1868
Re: IRS Form 709 help; 529 super-funding mistake
Hi fnmix, I believe that if you file a 709 for the 2016 gift to DS2 you will also have to include 2016 gifts to DS1. The 709 reports all gifts from you (and/or wife) to all recipients even though they may have been below the limits. I think I would just file a 2016 709 reporting all gifts to DS1 and DS2 with gift splitting with your wife. I believe that you and your wife each will ultimately be using $16,750 of your lifetime exclusions. Gift to DS1 is less than annual exclusion after gift splitting, but still needs to be reported. Gift to DS2 is $30,750 each less $14,000 (annual exclusion). Hopefully this is helpful… LL Hi LL - Thank you for alerting me to this point. I.e. that if you file a 709, all gifts made in the calendar year have to...
- Wed Nov 01, 2017 5:22 pm
- Forum: Personal Finance (Not Investing)
- Topic: IRS Form 709 help; 529 super-funding mistake
- Replies: 11
- Views: 1868
Re: IRS Form 709 help; 529 super-funding mistake
Thank you very much for this Buffetologist. I found a copy of the former president's 2008 700 (filed in 2009) at http://i2.cdn.turner.com/cnn/2009/image ... 09revd.pdf and it does provide a good example.Buffetologist wrote: ↑Wed Nov 01, 2017 1:23 pm Google "Obama Form 709" and download the former president's professionally prepared Form 709 as an exemplar. This helped me tremendously.
- Wed Nov 01, 2017 5:05 pm
- Forum: Personal Finance (Not Investing)
- Topic: IRS Form 709 help; 529 super-funding mistake
- Replies: 11
- Views: 1868
Re: IRS Form 709 help; 529 super-funding mistake
From the instruction for F709: If a gift is of community property, it is considered made one-half by each spouse. For example, a gift of $100,000 of community property is considered a gift of $50,000 made by each spouse, and each spouse must file a gift tax return *********************************************************** I'm not sure what the real meaning of that is but some believe that if you make a gift of community property to an individual between 14K and 28K, then because it is considered made 50-50 with your spouse, you do not need to file F709. Hope they're right. Hi Kanehoe - I found your note consistent with point #5 of this (https://www.irs.com/articles/7-things-you-should-know-about-gift-tax) IRS article. So it does look like...
- Tue Oct 31, 2017 4:38 pm
- Forum: Personal Finance (Not Investing)
- Topic: IRS Form 709 help; 529 super-funding mistake
- Replies: 11
- Views: 1868
Re: IRS Form 709 help; 529 super-funding mistake
This might be a good time to consult with a CPA. However, I don't think a 709 is required for 2013. It looks to me like you and your wife each gave DS1 $9,625 each. Possible in the form of one check for convenience. You may need to file a 709 for 2016. LL Hi Lucky Lemon Thanks for taking a look. I actually have enough information to fill out Form 709 for 2016 for DS2. It is the 2013 form which is causing difficulties - if I file a 709 for 2013 for DS1 then some information from that has to be carried over to the 2016 form 709. If the conclusion ends up being that the 2013 form is not needed, then the 2016 form form for DS1 will also not be needed (both 2013 and 2016 contributions for DS1 are between $14K and $28K). And I will just fill and...
- Tue Oct 31, 2017 3:33 pm
- Forum: Personal Finance (Not Investing)
- Topic: IRS Form 709 help; 529 super-funding mistake
- Replies: 11
- Views: 1868
Re: IRS Form 709 help; 529 super-funding mistake
Hello,
Perhaps my original question was too long-winded. Let me ask a simpler Form 709 question:
If all I am doing is putting away between $14K and $28K in a 529 for a single beneficiary, what sections of Form 709 do I need to fill out in order to record this "gift" as a "gift split" between myself and DW?
DS1 (from my original post) is in this situation - both in 2013 and 2016. Once I have the From 709 entries for DS1 figured out, I think I will have an easier time getting DS2's entries done.
Help badly needed and greatly appreciated!
Perhaps my original question was too long-winded. Let me ask a simpler Form 709 question:
If all I am doing is putting away between $14K and $28K in a 529 for a single beneficiary, what sections of Form 709 do I need to fill out in order to record this "gift" as a "gift split" between myself and DW?
DS1 (from my original post) is in this situation - both in 2013 and 2016. Once I have the From 709 entries for DS1 figured out, I think I will have an easier time getting DS2's entries done.
Help badly needed and greatly appreciated!
- Fri Oct 27, 2017 4:41 pm
- Forum: Personal Finance (Not Investing)
- Topic: IRS Form 709 help; 529 super-funding mistake
- Replies: 11
- Views: 1868
IRS Form 709 help; 529 super-funding mistake
Hello All, Due to forgetfulness, lack of proper attention and variable income through the past few years, I have messed up super-funding 529s for my sons :oops: . I would appreciate your review of my mitigation plan below Situation: DS1 529 contributions: 2011 - $12,000, 2012 - $13,000, 2013 - $19,250 , 2014 - $0, 2015 - $14,000, 2016 - $25,750 , 2017 - $9,000. DS2 529 contributions: 2013 – $14,000, 2014 - $3,500, 2015 - $14,000, 2016 - $61,500 , 2017 - $0. Married throughout the years above and currently, and filing tax returns jointly. I should have filed form 709 for 2013 and for 2016. Deadlines for both forms are in the past. Mitigation plan: For 2013, file a single 709 (for me), since the total contribution was between $14,000 and $28,...
- Wed Oct 25, 2017 2:26 pm
- Forum: Personal Investments
- Topic: Backdoor Roth IRA at Vanguard throwing an error
- Replies: 5
- Views: 2389
Re: Backdoor Roth IRA at Vanguard throwing an error
Explains my perception and connects the dots!nolesrule wrote: ↑Wed Oct 25, 2017 1:12 pm When you first add a bank account to an investment account at Vanguard, the funds take longer to settle. You can buy with the new funds from a new bank account within the investment account right away, but you cannot transfer money or funds to a different account until the funds have settled.
A bit surprised though that Vanguard dropped the bank account that was connected back in 2014 - perhaps they have an inactivity timer. Since 2014 (i.e. last 3 years) the only transactions in DW's Vanguard account were rebalances. We have just two bank accounts and the other one a backup - so I am sure that I am not mistaken about Vanguard's previous knowledge of the bank account.
- Wed Oct 25, 2017 12:49 pm
- Forum: Personal Investments
- Topic: Backdoor Roth IRA at Vanguard throwing an error
- Replies: 5
- Views: 2389
Re: Backdoor Roth IRA at Vanguard throwing an error
Cherijoh, Celia - thanks for your responses.
I would have sworn the whole process went faster back when I did it in 2013 - 2014. Perhaps my memory is failing
I would have sworn the whole process went faster back when I did it in 2013 - 2014. Perhaps my memory is failing
- Wed Oct 25, 2017 12:12 pm
- Forum: Personal Investments
- Topic: Backdoor Roth IRA at Vanguard throwing an error
- Replies: 5
- Views: 2389
Backdoor Roth IRA at Vanguard throwing an error
Hi All, Anybody see the error “ The amount you entered exceeds the fund’s balance ” on Vanguard? Background: It’s been three years since (DW and) I did a Backdoor Roth IRA and admittedly I am out of practice. In the meantime, some of Vanguard’s screens and processes may have changed. To do a backdoor Roth IRA, I opened a new Traditional IRA brokerage account on 10/23/2017 (during east coast business hours). I funded it via an ACH (EBT) transfer as I opened the account, to the tune of $5500 On 10/24/2017, my bank account showed a transfer of $5500 On 10/25/2017 (during east coast business hours) I logged onto Vanguard to do the Conversion. The process that I followed was as documented in https://www.physicianonfire.com/backdoor/ Having chose...
- Sat Oct 14, 2017 7:52 am
- Forum: Personal Investments
- Topic: Pay-off Car Loan or Pay-down Mortgage?
- Replies: 21
- Views: 4037
Re: Pay-off Car Loan or Pay-down Mortgage?
Thank you again JuipterJones
Thank you ze233. I found that the combination of LBYM while shooting for a goal is very powerful. Strange as it may sound, I never totaled up the total savings required. I did however (indefinitely) postpone some optional home improvement projects and converted (nice) vacation plans to modest outings in the local area It didn't feel right to do either (more) expensive thing while carrying debt. Finally, modest bonus payouts over the two years put me over the top.
- Thu Oct 12, 2017 5:06 pm
- Forum: Personal Investments
- Topic: Pay-off Car Loan or Pay-down Mortgage?
- Replies: 21
- Views: 4037
Re: Pay-off Car Loan or Pay-down Mortgage?
It's been ~2 years since the original post on this thread and ~1 years since I paid off the car - based on the discussion on this thread. I am happy to report that I have now paid off the house as well.
I am debt free, with the exception of credit cards that I pay off at the end of each month. It is a bit of a relief to not owe money to anybody.
In closing on the this topic, I wanted to thank all the folks who engaged in the original discussion. peterinjapan, watty, harrys, dharrythomas, grettman, knpstr, Nova Lurker, JupiterJones, quantandhold, BolderBoy, Dulocracy, grabiner, we'll see - THANK YOU!
I am debt free, with the exception of credit cards that I pay off at the end of each month. It is a bit of a relief to not owe money to anybody.
In closing on the this topic, I wanted to thank all the folks who engaged in the original discussion. peterinjapan, watty, harrys, dharrythomas, grettman, knpstr, Nova Lurker, JupiterJones, quantandhold, BolderBoy, Dulocracy, grabiner, we'll see - THANK YOU!
- Sun Oct 08, 2017 7:29 pm
- Forum: Personal Consumer Issues
- Topic: What to do with unused paint?
- Replies: 38
- Views: 4526
Re: What to do with unused paint?
Tim - is it legal to do this where (State, county) you live?
States/Counties have various guidelines for paint. In California, putting paint in household trash is illegal - at least as I understand the rule (http://www.calrecycle.ca.gov/homehazwaste/info/). In Maryland, at least in some counties, there are special handling provisions (http://www2.montgomerycountymd.gov/DepH ... ial_key=31)
States/Counties have various guidelines for paint. In California, putting paint in household trash is illegal - at least as I understand the rule (http://www.calrecycle.ca.gov/homehazwaste/info/). In Maryland, at least in some counties, there are special handling provisions (http://www2.montgomerycountymd.gov/DepH ... ial_key=31)
- Fri Oct 06, 2017 12:54 pm
- Forum: Personal Finance (Not Investing)
- Topic: Bay Area Real Estate
- Replies: 154
- Views: 22611
Re: Bay Area Real Estate
<SNIP> The Bay Area is home to a high % of cutting edge tech jobs & companies, but a lower % of super-smart 18 or 22 year olds. For discussion's sake, let's say the first number is 30%, and the second number is 3%. So for the Bay Area to maintain its dominance, long term, then a lot of those ~97% of super-smart young folks who don't start in the Bay Area need to end up their - either with their fledgling companies or working for other more established companies. I don't think the bay area as a whole is too different from other metro areas. San Francisco/Oakland/Hayward Metro Area: median age 38, age 20-29 18% (https://censusreporter.org/profiles/16000US0667000-san-francisco-ca/) San Jose/Sunnyvale/Santa Clara Metro area: median age 36....
- Fri Oct 06, 2017 8:07 am
- Forum: Personal Finance (Not Investing)
- Topic: Bay Area Real Estate
- Replies: 154
- Views: 22611
Re: Bay Area Real Estate
Yeah people rationalize. But that is not unique to the bay area. Back when I worked on the east coast more than a decade ago, my colleagues and friends rationalized that they should stay in the area and not pursue a (seemingly) more exciting career in silicon valley because California was expensive and they already had a nice house in a good school district and they had a social circle they were comfortable with etc. The commutes on the NJ Turnpike, the DC beltway and MA Route 128 are not necessarily better. Long term residents of the bay area (myself included - I've lived here since 1989), suffer from recency bias and confirmation bias. We've also lived in the reality distortion field for too long. First, we have lived through (and profite...