Bogleheads.org

The first page of the pdf has the filing info... if it says you are paying by check, that's what went in when you filed . If you were paying by EFT it would list the bank routing/account numbers. Depending on your state you can check the bottom of your main return form, which may indicate as well how you are paying

Mike

yes, that's incorrect. The Taxes-production go on line 16 of the Schedule E entry to reduce your income. The taxes withheld are separate and go towards your refund. And don't forget your depletion as well to reduce the royalty income.

Mike

Did this last year with my Dad Financials- ask for latest audited, look at reserves. Wait list for various apartments/cottages. Where are the units located vis a vis the central area (at my Dad's place he picked an apartment so he doesn't have to go out if the weathers bad... cottages are separate buildings What's the cost delta as you move from one level to the next (IL to AL to skilled nursing) What have been the last 3 years increases (realizing that this year will be higher) As noted, eat in the facility... the fancy and the snack bar. What's covered in the monthly? cleaning, etc Buying terms (how much refundable/when) See if you can find any online reviews for the facility What really helped for us is he knew several couples/individual...

My concern is this will trigger an audit. Now that being said, it likely won't trigger an audit from federal as box 14 is "informational only." So maybe the thing to do is just enter it as if it was on box 14 and let them call me out on it.

Federal won't care. IF MA sends you a letter about it, just document that you have the paystub proof. and reply back to them

Mike

you need earned income to match whatever amount you put in a Roth... so for $6500 ($7500 if eligible) you'd need that much earned income

Mike

For the case where folks choose to remain on the mutual fund platform.
--Is each 1099B adjusted so the transaction results in a $20 loss, since it all went to Vanguard?

No. you had a sale of shares to generate the $20 to pay Vanguard's fee. So you have a capital gain/loss on that transaction. Where the funds went or what they paid for is not relevant

Mike

if the TIN matches, I would not worry

Mike

You can use the search box and see previous threads where this was discussed.

example below

viewtopic.php?t=302845

Mike

It will only be $4 in tax (rounds down) and yes, as long as you leave room in your 2023 contributions, your tax program will ask you if you have any carryover, and use it up for you

Mike

And if you can't get it removed (or it costs too much) you can pay the 6% penalty this year, and then adjust your contributions for 2023 to make room for the excess and take it as a deduction next year.

I had this once and the $25 the HSA provider wanted to remove the excess was way more than the $7 tax. I just used the excess in the next year

Mike

1099C does not have to be issued till Feb 28th, so allowing for mailing it may be early March. So they should wait to receive it. If they don't have in hand by March 10th reach out to the creditor From general instructions for Form 1099 Except as indicated below, file Forms 1097, 1098, 1099, 3921, 3922, or W-2G on paper by February 28, 2023, or March 31, 2023, if filing electronically. File Forms 5498, 5498-ESA, 5498-QA, and 5498-SA by May 31, 2023. Form 1096 must accompany all paper submissions. See part E for paper and part F for electronic filing requirements. The following are exceptions to the filing deadlines shown above. • File and furnish a copy of Form 1099-NEC on paper or electronically by January 31, 2023. • Form 1099-SB is gener...

and also review entries where you indicated income/expenses belonged to both of you or one or the other. Having different data entry will cause different results, esp when doing a MFS comparison

Mike

Should be? Or must be?

Unless you have language in the trust documents that specifies otherwise.

So in your case, you'd need 2 things. One, that the trust document actually says you can distribute capital gains income to a beneficiary (note that this is not the same as saying capital/principal/corpus can be distributed, that's commonly allowed. It's the cap gains income that stays in and is taxed in the trust, unless a final year)

And then you'd need language saying that cap gains income always goes to A, and other income always goes to B.

So if you have that language, off you go. If not, follow the advice and documentation from above

Mike

2) If (1) is yes, since Company 1 did not put pfml in box 14 on my W2, in order to get my tax software to accept it, I have to manually add it into box 14. I can get the amount from my last paycheck. Will this get me an audit? My guess is that is almost certainly will.

If you have the paystub, save it and enter in the tax software.. If you get a letter from DOR, respond that it was paid and enclose copy of paystub

You've already discovered there is a way to recon this on your state taxes

Mike

But that won’t help me, since I expect I am still banned.

You've gotten advice several times in the thread to confirm if this is actually the case. Many folks on the thread have posited this was an error, and the receptionist/clerk has/had no authority to do any such thing.

I'd sure want to validate I had a problem before I spent this much time working on solutions.

And yes, I understand it's difficult to work thru these issues at a place like this. My Dad lives in a similar community, and on the few occasions things haven't gone well, it's usually been a misunderstanding understanding. In the one case it wasn't, a sit down with the manager quickly dispatched the issue

Mike

Well, first the trust document has to allow for capital gains income to be distributed. Most do not, unless it's the final return for the trust when it wraps up.

This doesn't mean that capital from the trust can't be distributed, just that the capital gains income can't.

But in general, income distribution should be proportional. If cap gain income is not allowed to be distributed, the the 2 beneficiaries split the interest income 80/20

If the cap gains income is allowed, than A would get 80%, B 20%, and asme for the interest

Mike

What does that indicate? Does that indicate what gain or loss I my bonds fetch in the secondary market if I sold them now (or when the market is open)?

Yes, this indicates what gain/loss you'd have if you sold into the secondary market. Irrelevant if you plan to hold to maturity

Mike

. I did check the box stating that we received a 1099 S. It then takes me through a series of questions about the sale, but no where does it allow me to enter in the precise info found on the 1099 S.

Then you should be fine. You do not need to "attach" the 1099S to your return, but you do need to report that you got it, and go thru the steps for amount rec'd, basis, etc.

So if you marked that you got a 1099S and completed the rest of the interview correctly you should be fine. Just check your forms and look for the entry on form 8949... should be zero gain but show your proceeds, etc

Mike

In order for it to still be owned by her, the taxes would have had to be paid each year. Otherwise the county would take it and auction for unpaid taxes.

Most counties have an online registry... if you don't mind burning some time you can go to each county in middle/northern Michigan and search their property register (if they allow that) using last name... that should turn it up if it still belongs to her

These won't show up in a standard Google search.

Mike

I'm confused. In the turbotax interview for sale of your home, once it gets the address, the next question is did you receive a 1099S. So you're saying you did not check that box, and now can't correct it?

Are you using an online version or downloaded to your PC?

You should be able to re enter the interview process from the Your 2022 income items (I'll select what I work on) and it will re enter the interview screens and you can correct it, noting that you had a 1099S

You want to report the 1099S if you got one. YOur taxes won't change, but one less thing for the IRS matching computers to look for

Mike

The IRS knows the trust is closed when you file the final 1041 tax return, with the "Final" indicator checked.

If you actually disbursed the funds in 2022 to your personal account, that's when that distribution gets reported.

Depending on what that final distribution consisted of, all, some, or none may be taxable to you.

The K1 from the trust return will pass along any income, cap gain/loss and leftover expenses to the beneficiary

Mike

We have had HealthEquity directly transfer funds from my wife's HSA to Fidelity the last 3 years. No 1099SA as a direct transfer

Mike

I live in CT and work in NY (my desk in NY) – for years I have paid NY state tax and get a credit on my CT state tax – even through the pandemic when I was 100% work from home in CT. Now that I am on salary continuation (no desk in NY, no access to systems, etc.) do I pay state tax to CT or to NY? Why would you think it would be any different than when you were working? The company had you as working in NY... and I would assume that's how they'll report this When I retired on a package I was in AZ, but moved to VA. All my payments on the package and any trailing earnings or bonus were reported as AZ income even though I was no where near AZ. I would expect you'll need to report NY and get your CT credit as you have previously done Mike

I would ask to meet in person with the manager of the community. Relate your experience, including that you reported it and nothing was followed up on (at least with you)

Ask them to clarify any issues with the clinic. I find it highly unlikely they could bar you from the clinic as it's part of the contract. You likely got an over worked answer from the receptionist who may have had you mixed up with someone else.

If they are not responsive, let them know you plan to complain to the state board that regulates them

But before things get carried away.. validate whether or not there is really an issue with your clinic access.

Mike

Yes. The I stands for individual... so you'd be hit by pro rata rule, she won't (as long as she has no IRA balance on 12/31)

Mike

From page 8 of pub 527 on depreciation Separating cost of land and buildings. If you buy buildings and your cost includes the cost of the land on which they stand, you must divide the cost between the land and the build- ings to figure the basis for depreciation of the buildings. The part of the cost that you allocate to each asset is the ratio of the FMV of that as- set to the FMV of the whole property at the time you buy it. If you aren’t certain of the FMVs of the land and the buildings, you can divide the cost be- tween them based on their assessed values for real estate tax purposes. Example. You buy a house and land for $200,000. The purchase contract doesn’t spec- ify how much of the purchase price is for the house and how much is fo...

You could consider a 1031 exchange to a similar property, that would defer the taxes, and you'd still have an investment, not cash.

You could also invest in specific opportunity zone investments, and defer/potentially eliminate down the road the taxes. I haven't spent a lot of time on these, the funds appeared to have relatively high fees, but it may be an option for you. This covers cap gains, not depreciation recapture

https://www.irs.gov/newsroom/opportunity-zones

Mike

Don't you have to go by the amount shown in the donation acknowledgement document from the charity?

When I have been offered and taken the option of paying the charity's CC fee, the resulting charge and my receipt reflect that fact...

for example if giving $100 and they ask to cover 3.25, my CC charge is 103.25 and so is my receipt

If you just give $100, that's what your CC charge and receipt from the charity will show

Mike

I'm not sure if its OCD or what, but I can't stand to see my numbers so far apart.

Sorry, but this just makes no sense to me... you picked an asset allocation, and now you're having issues because the $ amounts are different... so considering adding more funds just so they are closer in value?

On the bright side, if this is your biggest problem... life is good

Mike

Depends on what type of FSA. If a limited purpose FSA (a specific type) then you can also contribute to HSA.

See below from WIKI

https://www.bogleheads.org/wiki/Flexibl ... rrangement

Mike

Here's an HHS link that explains the process. Search for IRMAA appeal for otehr sources

https://www.hhs.gov/about/agencies/omha ... index.html

Mike

The process they outlined is for removing the money. Since you want to do a backdoor Roth, the process is

Re characterize the contribution back to a nontraditional IRA, which you'll make non deductible.

The amount plus earnings will come over to the traditional (you may need to open a traditional to hold this)

then do the backdoor as normal. The earnings you had in the Roth that went back to the Traditional and then came back over in the backdoor process will be taxable

Use this vanguard link instead

https://investor.vanguard.com/investor- ... terization

https://www.bogleheads.org/wiki/IRA_recharacterization

Mike

CA is one of the 2 states (NJ is I believe the other) that actually tax dividends, interest, and cap gains on HSA accounts, so a relevant question

I don't believe they would cancel out, as the $15K capital loss would be recognized on your schedule D for federal purposes (offsetting other cap gains or as a $3k deduction), and flow to your AGI, which is where the CA tax begins.

Then CA would "add back" the $5K capital gain (assuming you realized it) and add that amount to your AGI (along with any other adjustments that are CA specific)

Mike

Use the search box to research changing, and Erie. There was a thread earlier today that included Erie

As noted, only you can decide if $200 is worth it. Both Travelers and Erie are reputable companies

You could also reach out to an independent agent who reps multiple companies and see what they can do for you

Mike

Your annual premium savings with Hanover would come to $581 while at the same time providing additional coverage you do not currently have with Erie.

We use an independent agent as well. When she brings me an opportunity like this, it usually comes with a detailed breakdown of the additional coverage that will be provided. Do you have that breakdown? Are those things you desire?

And as noted, check company reviews on service/claims paying

Mike

Talk to folks you know who are similarly situated and ask for referrals.

If you have kids you need to make sure that's all covered... not clear you need a trust at this point, but you might later... and having someone who's done the original work and can update as your situation changes is valuable

Mike

I'm confused. Depending on type (simple/Complex) the exemption amount ($600/$300) is much higher than the $12 in dividends reported, so no tax would be owed.

Have you actually run this thru a 1041, or just used $12 as income vs the trust tax rate table at 10% and getting $1 as balance due?

Unless there is other income, what you have described will have zero balance due

Mike

TD sent me an email a couple of days back letting me know it was ready

Mike

Our friend Google says

Run your finger over the skin to feel its texture. The surface of ripe limes is smooth instead of rough. Wrinkled, rough skin indicates a dry, overripe fruit.

https://homeguides.sfgate.com/tell-lime ... 72820.html

Mike

Here's the TD page for dealing with paper bonds after owner passes away

https://www.treasurydirect.gov/savings- ... -of-owner/

Mike

When your wife cashes them in 2023, she'll get a 1099 for the total interest on the bonds. That said, 2 choices. You can just report all that interest on your 2023 joint return, or For your FIL's 2022 return you can make a section 454 election to report all interest accrued to that point (thru 12/31/22) on his 2022 tax return. Then for your 2023 return, you'll report the 1099 with the full interest that TD or the bank gives you, and then an offsetting entry for the interest already reported on your FIL's SSN Which choice is better depends on the tax rates for each TP. If his rate is lower than your joint rate, do option 2. If your rate is lower, do option 1. The only hitch is that the 454 election is made by attaching a statement to the ret...

Ok, I think I see the confusion. Box 5 (REIT dividends qualifying for 199A) are not treasury income, and do not have to be allocated. They are not state tax exempt

I understand what you are having to do for any MM or bond funds that held treasury obligations and you've got to go fund by fund to get the right answer.
you can then take that total amount/the amount of dividends in total, to get the % you need to give HRB as you enter the consolidated info

But the 199A dividends have nothing to do with that. This is reflecting REIT dividends on funds you held (anything from a REIT fund to Total Stock Market Index)

Mike

you don't need to allocate the Box 5 (199A) dividends by funds. Just enter the number in your tax software, or if doing by hand, line 6 of form 8995 (that's where the software will put it)

The REIT dividends that qualify for 199A will generate a 20% deduction for you

Mike

Have you asked your CPA for help/advice?

Mike

I'd ask your accountant where exactly they will deduct these expenses for your PA return? there are only 4 deductions, and a number of specific credits, but I don't see anything that jumps out as a place to take a deduction for commuting, food on road, etc.

It's your choice to live in a different locality

PA income tax guide below... you can also get the docs that talk about deductions and credits

https://www.revenue.pa.gov/FormsandPubl ... fault.aspx

Mike

Did you download the CT return (selecting it as your free state, or buying it, depending on how you purchased TT?)

It may be that CT has not finalized their forms and you can't file yet

Mike

you'll have to offset this years profits with last years carryforward loss in the QBI calculations

see line 3 on form 8995

https://www.irs.gov/pub/irs-pdf/f8995.pdf

Mike

From Pub 529 Generally, a child is responsible for filing his or her own tax return and for paying any tax, penalties, or interest on that return. If a child can’t file his or her own return for any reason, such as age, the child's parent, guardian, or other legally responsible person must file it for the child. Signing the child's return. If the child can’t sign his or her return, a parent or guardian must sign the child's name followed by the words “By (signature), parent (or guardian) for minor child.” Authority of parent or guardian. A parent or guardian who signs a return on a child's behalf can deal with the IRS on all matters connected with the return. In general, a parent or guardian who doesn’t sign the child's return can only prov...

TurboTax deluxe (CD/Download version) supports that form. I have not used it so can't comment on how easy to enter your transactions.. I assume they could come across as downloads

Mike

Your relative most likely got a W-9 to fill out... so that the administrator has their social security number and address... which they'll need to correctly fill out the K1 form(s) (depends on how long to close the estate or trust takes to wrap up) that are generated from the estate 1041 and sent to each beneficiary showing any income, capital gain/loss, and any final expenses

Mike