Search found 1824 matches

by trueblueky
Tue Sep 22, 2020 5:57 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Question regarding wife's inheritance
Replies: 20
Views: 1314

Re: Tax Question regarding wife's inheritance

It doesn't appear you have received a complete or accurate answer to your question. Who sold the property? Was it the estate or did your wife inherit the house and furnishings and then sell it herself? If the estate sold it the estate would normally report it on the estate's income tax return and t...
by trueblueky
Mon Sep 21, 2020 8:21 pm
Forum: Personal Finance (Not Investing)
Topic: Amended return hasn't been processed in ~2 months.
Replies: 27
Views: 1836

Re: Amended return hasn't been processed in ~2 months.

Grt2bOutdoors wrote: Mon Sep 21, 2020 4:45 pm I filed an amended return before the July deadline, I owed some money. They still have not cashed the check. Guess they don’t want my money!
Have not cashed the check = have not opened the envelope.
by trueblueky
Mon Sep 21, 2020 8:13 pm
Forum: Personal Finance (Not Investing)
Topic: Divorce - Need Help, California
Replies: 40
Views: 4044

Re: Divorce - Need Help, California

Strictly from a tax standpoint, look at a solution where each of you can file as Head of Household and claim one of the children. Under current law, alimony is not deductible to the payer nor taxable to the recipient. This is not what the law was for divorces finalized before 2019. Child support is ...
by trueblueky
Mon Sep 21, 2020 8:01 pm
Forum: Personal Finance (Not Investing)
Topic: made a tax mistake on my 2018 tax return, now filing 2019
Replies: 2
Views: 209

Re: made a tax mistake on my 2018 tax return, now filing 2019

The IRS may include interest from April 15 in your refund. That interest is taxable in the year received. Sounds like you are receiving it in 2020, so it goes on the taxes you file in 2021.
by trueblueky
Sun Sep 13, 2020 7:46 am
Forum: Personal Investments
Topic: 1099 and W2 Income - account & investment options
Replies: 3
Views: 329

Re: 1099 and W2 Income - account & investment options

Hi All - expecting a $50k/$50k split of 1099 Independent Contractor Income and W2 Income this year and can invest 100%. I wont need to touch it until after retirement (15+ years) so assume maximizing tax-deferred retirement accounts is the way to go. I am 50 this year so there may be higher limits ...
by trueblueky
Wed Sep 09, 2020 8:00 am
Forum: Personal Investments
Topic: DCA a windfall until tax season, then lump sum the rest?
Replies: 3
Views: 371

Re: DCA a windfall until tax season, then lump sum the rest?

If you expect to owe $100,000 or more in taxes, you need to make quarterly estimated payments. The next deadline is 15 September.
by trueblueky
Sat Sep 05, 2020 6:45 pm
Forum: Personal Investments
Topic: Gifting Shares -- which ones?
Replies: 10
Views: 607

Re: Gifting Shares -- which ones?

See IRS Pub 551, Basis of Assets (page 9) https://www.irs.gov/pub/irs-pdf/p551.pdf The donee's basis of a winner is the donor's basis, with some adjustment for gift tax. The donee's basis for a loser is FMV. Thus, you don't eliminate taxable capital gain by giving it to your children. For gifts to a...
by trueblueky
Fri Sep 04, 2020 4:20 pm
Forum: Personal Investments
Topic: Looking to invest 1% of NW into high risk/high reward. QQQ? VGT? IGM?
Replies: 20
Views: 1385

Re: Looking to invest 1% of NW into high risk/high reward. QQQ? VGT? IGM?

High risk/high reward?
13-14-9 trifecta in tomorrow's race
Not only is it high risk/high reward, but you'll know how you did before the markets open Tuesday.
by trueblueky
Wed Sep 02, 2020 9:35 am
Forum: Personal Investments
Topic: TSP Balance will be close to 1M (hopefully) in a few years
Replies: 19
Views: 2467

Re: TSP Balance will be close to 1M (hopefully) in a few years

Barefoot wrote: Tue Sep 01, 2020 8:16 pm Does a govt salary earned overseas count towards Social Security?
It does if you started with the feds after 1984, or if you elected to change to FERS.
by trueblueky
Tue Sep 01, 2020 3:17 pm
Forum: Investing - Theory, News & General
Topic: What is your age and asset allocation ?
Replies: 246
Views: 15051

Re: What is your age and asset allocation ?

Retired, both 60s
60/40 with 1/3 of stocks international, so
40 US stock index, 20 international index, 40 US bond index

Within TSP, I use C + S about 3:1 to make total US stock index.

No plan to change.
by trueblueky
Mon Aug 31, 2020 11:05 am
Forum: Personal Finance (Not Investing)
Topic: Checking Amazon credit card statements
Replies: 21
Views: 1660

Re: Checking Amazon credit card statements

I scan the monthly statement for reasonableness when I download it to my computer (basically as soon as it becomes available). I do not tick and tie each line item to my orders history on Amazon. Sometimes the bill seems higher than I would have thought, but a quick scan of the charges reminds me o...
by trueblueky
Sun Aug 30, 2020 12:48 pm
Forum: Personal Finance (Not Investing)
Topic: Employers - Will you comply with EO request to defer payroll tax?
Replies: 54
Views: 6666

Re: Employers - Will you comply with EE request to defer payroll tax?

https://www.govexec.com/pay-benefits/2020/08/federal-employees-will-have-payroll-taxes-deferred-next-paychecks-processor-says/168089/ Many federal employees outside Defense are paid thru Agriculture. This story discusses how the new policy will be implemented for them. I cannot find an announcement ...
by trueblueky
Sun Aug 30, 2020 11:34 am
Forum: Personal Investments
Topic: TSP Balance will be close to 1M (hopefully) in a few years
Replies: 19
Views: 2467

Re: TSP Balance will be close to 1M (hopefully) in a few years

Overseas? Do you receive LQA, but not Locality Pay? This hurts your retirement compared to spending your final 3 years in a high Locality Pay area.
by trueblueky
Sat Aug 29, 2020 10:46 am
Forum: Personal Investments
Topic: TSP Balance will be close to 1M (hopefully) in a few years
Replies: 19
Views: 2467

Re: TSP Balance will be close to 1M (hopefully) in a few years

What are your spending needs in retirement? Look at your leave and earnings statement. Which costs disappear when you retire (FERS, TSP, FICA), which stay the same (FEHB), which increase (FSA is no available in retirement to shelter health expenses)? What happens to state and federal income tax? Wil...
by trueblueky
Thu Aug 27, 2020 10:59 pm
Forum: Personal Finance (Not Investing)
Topic: W-2 or 1099?
Replies: 6
Views: 556

Re: W-2 or 1099?

Bogle7 wrote: Wed Aug 26, 2020 12:31 pm Is very simple. If 1099 gross = W2 gross, then W2 wins.
With QBI, it is not simple.
by trueblueky
Thu Aug 27, 2020 12:15 pm
Forum: Personal Finance (Not Investing)
Topic: W-2 or 1099?
Replies: 6
Views: 556

Re: W-2 or 1099?

Is it better (in terms of total income after taxes) to earn an annual salary of $200k all via W-2 ($150k husband, $50k wife), or $150k via W-2 (husband) and $50k via 1099 (wife)? The wife portion would actually either be: 1) $50k via W-2, or 2) $50k via 1099 to her LLC, which has minimal expenses s...
by trueblueky
Thu Aug 20, 2020 7:46 pm
Forum: Investing - Theory, News & General
Topic: When should one share financials with their children?
Replies: 205
Views: 13151

Re: When should one share financials with their children?

Three cases: I prepare taxes for DD and know where things are. He's 90; I'm to be executor. Much of his assets will transfer to me/sibs TOD. I'll need to sell the cars if he still has them. Sibs can divvy the dishes and such. I prepare taxes for an elderly widowed relative. She has me do them so her...
by trueblueky
Sun Aug 16, 2020 6:58 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement, Trust, Will and term life - potential divorce
Replies: 7
Views: 1118

Re: Retirement, Trust, Will and term life - potential divorce

Taxes: You will likely pay less in combined federal income tax if you can arrange it so each claims one child. Head of Household is not as good as MFJ, but it's better than Single. I don't know CA taxes. Under the old tax law, alimony reduced the income of the payer and added to the income of the re...
by trueblueky
Sat Aug 15, 2020 1:46 pm
Forum: Personal Finance (Not Investing)
Topic: TSP Participant Account Balances
Replies: 72
Views: 19136

Re: TSP Participant Account Balances

Started with the Federal Government in 1979 under CSRS. When the Government offered FERS I ran all the numbers to determine which might be the better choice. Just like fellow CSRS employees at the time, the decision was based on the guaranteed pension (years and months X high-three salary) and TSP ...
by trueblueky
Sat Aug 15, 2020 1:22 pm
Forum: Personal Finance (Not Investing)
Topic: TSP Participant Account Balances
Replies: 72
Views: 19136

Re: TSP Participant Account Balances

Started with the Federal Government in 1979 under CSRS. When the Government offered FERS I ran all the numbers to determine which might be the better choice. Just like fellow CSRS employees at the time, the decision was based on the guaranteed pension (years and months X high-three salary) and TSP ...
by trueblueky
Tue Aug 11, 2020 6:39 am
Forum: Personal Finance (Not Investing)
Topic: Compare the state tax across states - California, Florida
Replies: 69
Views: 5921

Re: Compare the state tax across states - California, Florida

Florida - no state income tax, no local income taxes - 6% sales tax, none on groceries, +1% local, depending on the area - No estate tax - No inheritance tax - Property tax, figure on paying about 1% of the home value if you are a resident (varies by city/county) - Gasoline tax, about 35¢ per gallo...
by trueblueky
Mon Aug 10, 2020 8:49 pm
Forum: Personal Finance (Not Investing)
Topic: Question regarding tax treatment of charity as tIRA beneficiary
Replies: 6
Views: 279

Re: Question regarding tax treatment of charity as tIRA beneficiary

The gross estate includes everything. Then deduct "mortgages and other debts, estate administration expenses, property that passes to a surviving spouse and qualified charities" to arrive at the taxable estate. See the instructions for Form 706. I don't want to read the instructions for Form 706. T...
by trueblueky
Mon Aug 10, 2020 6:38 pm
Forum: Personal Finance (Not Investing)
Topic: Question regarding tax treatment of charity as tIRA beneficiary
Replies: 6
Views: 279

Re: Question regarding tax treatment of charity as tIRA beneficiary

The gross estate includes everything.

Then deduct "mortgages and other debts, estate administration expenses, property that passes to a surviving spouse and qualified charities" to arrive at the taxable estate.

See the instructions for Form 706.
by trueblueky
Mon Aug 10, 2020 6:15 pm
Forum: Personal Finance (Not Investing)
Topic: Compare the state tax across states - California, Florida
Replies: 69
Views: 5921

Re: Compare the state tax across states - California, Florida

Compare the state tax across states - California, Florida When we say one state is higher tax than another state, want to understand how that may impact us personally. What are the taxes we consider Income Tax. - Common across all states so we will leave this out inn the calculation State Tax City ...
by trueblueky
Sun Aug 09, 2020 4:05 pm
Forum: Personal Finance (Not Investing)
Topic: Taxation of Accrued Interest on i-Bonds or After-Tax Annuities at Death
Replies: 4
Views: 326

Re: Taxation of Accrued Interest on i-Bonds or After-Tax Annuities at Death

Your executor has a choice of declaring accrued interest in the decedent's final 1040 or on the estate's 1041 in most cases. See IRS Pub 559 for an extended discussion.

Why give Roth to charity if you are trying to minimize the tax impact to heirs?
by trueblueky
Sat Aug 01, 2020 2:58 pm
Forum: Personal Finance (Not Investing)
Topic: Dealing with deceased BIL estate?
Replies: 22
Views: 2108

Re: Dealing with deceased BIL estate? Dealing with the debt.

We are still in the throes of dealing with the estate. My personal opinion is that the attorney recommended by one of the siblings does not have the right background (he is more of a personal injury/workers comp type whom the sibling used prior) and has not handled this very well. The BIL owned a c...
by trueblueky
Thu Jul 30, 2020 9:12 am
Forum: Investing - Theory, News & General
Topic: Why isn't Social Security like a deferred annuity?
Replies: 30
Views: 2633

Re: Why isn't Social Security like a deferred annuity?

I have a COLA'd pension. DW will receive SS. I have the option of annuitizing some or all of my TSP. However, adding another annuity does not make sense to me. It would decrease flexibility, resilience, and legacy gifts.

I think OP is in a similar position of having annuitized enough.
by trueblueky
Tue Jul 28, 2020 10:12 am
Forum: Personal Finance (Not Investing)
Topic: Bank interest accrued before death, but posted after death. Decedent reports? Or IRD?
Replies: 32
Views: 1608

Re: Bank interest accrued before death, but posted after death. Decedent reports? Or IRD?

I'm sure one of us has cited this before but here it is again, from publication 550 : When To Report Interest Income When to report your interest income depends on whether you use the cash method or an accrual method to report income. Cash method. Most individual taxpayers use the cash method. If y...
by trueblueky
Thu Jul 09, 2020 12:57 pm
Forum: Personal Finance (Not Investing)
Topic: tax for self employment
Replies: 26
Views: 1019

Re: tax for self employment

It is expected unfortunately. Welcome to self employment. W2 income is subject to the same taxes on first dollar. It just comes out differently. True but you pay double as self employed since the employer doesn't pay half. It is a big chunk. yes; but that is just a framing issue and a pricing issue...
by trueblueky
Wed Jul 08, 2020 11:23 am
Forum: Investing - Theory, News & General
Topic: Does it really matter when you claim Social Security
Replies: 109
Views: 9370

Re: Does it really matter when you claim Social Security

I have a COLA'd pension and will never receive SS on my own or as a spouse thanks to GPO (government pension offset) and WEP (windfall elimination provision). DW will receive SS. Using i-orp, RPM, and various SS calculators, the result is the same: Delay until she reaches 70. Because of GPO/WEP, the...
by trueblueky
Sun Jul 05, 2020 6:46 pm
Forum: Personal Finance (Not Investing)
Topic: Actions at end of life to benefit heirs
Replies: 101
Views: 6837

Re: Actions at end of life to benefit heirs

Note that expenses after the date of death are the estate's responsibility. One huge exception to that is that medical expenses paid for the deceased within one year of death may be claimed on the deceased's final return. This could require an amended return, but is worth it in some circumstances.
by trueblueky
Fri Jul 03, 2020 11:28 am
Forum: Personal Finance (Not Investing)
Topic: Schedule C tax brackets - QBI
Replies: 6
Views: 448

Re: Schedule C tax brackets - QBI

For someone who qualified for QBI deduction as a 1099 employee or self-employed, the tax brackets are larger. I haven't seen this discussed.... The tax brackets are the same, because the tax brackets are for taxable income not AGI. Yes, the QBI deduction is added to the standard deduction so for a ...
by trueblueky
Thu Jul 02, 2020 7:35 pm
Forum: Personal Finance (Not Investing)
Topic: Schedule C tax brackets - QBI
Replies: 6
Views: 448

Re: Schedule C tax brackets - QBI

The self-employed or 1099 employee pays $8478 (the SS adjustment is half of that) on $60,000 while the W-2 employee pays 7.65% * 60,000 = $4590. Form SE does the computation for the self-employed taxpayer. It is involved.
by trueblueky
Thu Jul 02, 2020 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: Schedule C tax brackets - QBI
Replies: 6
Views: 448

Schedule C tax brackets - QBI

For someone who qualified for QBI deduction as a 1099 employee or self-employed, the tax brackets are larger. I haven't seen this discussed, so ran a number of returns thru the 2019 tax year program. A single taxpayer with $60,000 regular income from a salary would have $60,000 - $12,200 standard de...
by trueblueky
Fri Jun 26, 2020 6:48 pm
Forum: Personal Investments
Topic: Capital gain Taxes
Replies: 10
Views: 622

Re: Capital gain Taxes

https://engaging-data.com/tax-brackets/

Play with this to visualize how LTCG taxes work.
by trueblueky
Fri Jun 26, 2020 7:28 am
Forum: Personal Finance (Not Investing)
Topic: Fence issue
Replies: 5
Views: 674

Fence issue

DD moved into new home, which has backyard fence one foot inside the property line. Backyard neighbor has just installed fencing along the sides of his property, using DD's fence as the connector. This seems to be taking one-stop strip of her land without compensation. What are possible issues? (Tit...
by trueblueky
Sat Jun 20, 2020 6:39 pm
Forum: Personal Finance (Not Investing)
Topic: Some tax questions--three 1099 MISCs for 2019
Replies: 5
Views: 447

Re: Some tax questions--three 1099 MISCs for 2019

You can deduct your health/dental insurance (and LTC) premiums from your self employment up to the amount you have left after 1/2 S/E tax and any Solo 401(k) contributions the sales commissions in box 3 are not your self employed income.. they are, as noted on the 1099, other income, and you out th...
by trueblueky
Fri Jun 12, 2020 1:25 pm
Forum: Personal Investments
Topic: Unknown cost basis
Replies: 4
Views: 527

Re: Unknown cost basis

I have approx. 3000 shares of a highly appreciated Janus mutual fund purchased in 1996 which I am trying to liquidate over time to reinvest in S&P 500 Index fund. I have been on the phone with Janus and they have been unable to locate any information on the original purchase date and cost basis. I ...
by trueblueky
Thu Jun 11, 2020 10:18 am
Forum: Personal Investments
Topic: Advise To Maximize Taxes When I Pass(Have Cancer)
Replies: 43
Views: 4288

Re: Advise To Maximize Taxes When I Pass(Have Cancer)

The 5-year window for Roth IRA goes by tax year. If you start a Roth IRA by the day taxes are due (July 15th in 2020) and tell your custodian you are making a contribution for 2019, it counts as if made on January 1, 2019.

Rules for other types of Roth may vary.
by trueblueky
Tue Jun 09, 2020 7:29 pm
Forum: Investing - Theory, News & General
Topic: Why does doing Roth conversions early yield higher disposable income?
Replies: 61
Views: 3865

Re: Why does doing Roth conversions early yield higher disposable income?

Also a single person and I don't think I will ever be in the 12 percent bracket. In that case would you not convert up to the top of the 22% bracket?
IRMAA kicks in at $86,000 or so MAGI for Single. Top of 22% bracket is higher than that, so if you are 63 or older, that is a consideration.
by trueblueky
Tue Jun 09, 2020 12:40 pm
Forum: Investing - Theory, News & General
Topic: Why does doing Roth conversions early yield higher disposable income?
Replies: 61
Views: 3865

Re: Why does doing Roth conversions early yield higher disposable income?

There are many ways to approach this. Here's a simplified one: 1) Estimate your marginal tax rate for RMDs. Remember to include SS benefits, IRMAA, etc. See Estimating future marginal tax rate . Call that X%. 2) Prior to RMDs, do conversions at least to the top of your X% marginal rate. See Calcula...
by trueblueky
Tue Jun 09, 2020 9:43 am
Forum: Investing - Theory, News & General
Topic: Why does doing Roth conversions early yield higher disposable income?
Replies: 61
Views: 3865

Re: Why does doing Roth conversions early yield higher disposable income?

There are many ways to approach this. Here's a simplified one: 1) Estimate your marginal tax rate for RMDs. Remember to include SS benefits, IRMAA, etc. See Estimating future marginal tax rate . Call that X%. 2) Prior to RMDs, do conversions at least to the top of your X% marginal rate. See Calcula...
by trueblueky
Sun Jun 07, 2020 3:30 pm
Forum: Personal Finance (Not Investing)
Topic: Federal Retirees - Two questions, please?
Replies: 20
Views: 2017

Re: Federal Retirees - Two questions, please?

Annual leave payout was in my final paycheck. First monthly check from OPM was less than the full amount. Second month was final amount. Then I received "back pay" for the first one. I planned way ahead. I asked for an estimate two years out so I would know if the records were correct. (My agency al...
by trueblueky
Sun Jun 07, 2020 3:15 pm
Forum: Personal Investments
Topic: Advise To Maximize Taxes When I Pass(Have Cancer)
Replies: 43
Views: 4288

Re: Advise To Maximize Taxes When I Pass(Have Cancer)

macher wrote: Sun Jun 07, 2020 2:26 pm
Income
Me $55k
Wife $39k(permanent part time)

Tax Filing Status:
Married Filing Jointly

Tax Rate:
24% Federal
3% State

State of Residence:
PA

Age:
Me 53
Wife 56
$94,000 MFJ is not 24% federal tax bracket.
by trueblueky
Sun Jun 07, 2020 3:03 pm
Forum: Investing - Theory, News & General
Topic: Any credible projections out on broad, long-term changes to the economy?
Replies: 12
Views: 1131

Re: Any credible projections out on broad, long-term changes to the economy?

This seems to be accelerating some existing trends: Legacy retail (Sears, Macy's, JC Penny's) were losing market share to Amazon. Casual dining (TGIFriday, Applebees, Chili's) were losing market to fast casual. Small retailers and groceries were losing to Wal-Mart. Movie theaters were losing to stre...
by trueblueky
Sun Jun 07, 2020 2:41 pm
Forum: Investing - Theory, News & General
Topic: Why does doing Roth conversions early yield higher disposable income?
Replies: 61
Views: 3865

Re: Why does doing Roth conversions early yield higher disposable income?

Yep, looks that way, so the typical plan would be to spread it out as much as possible between early retirement and before the year when turning 63 (as I gather that is used by Medicare two years later when at 65). What is that used by Medicare for? IRMAA. As far as I know Medicare has a two year l...
by trueblueky
Fri Jun 05, 2020 7:02 pm
Forum: Personal Investments
Topic: TSP Investor: Timed the drop - getting back to normal AA
Replies: 9
Views: 728

Re: TSP Investor: Timed the drop - getting back to normal AA

I am the wrong person to ask. Watched it go down. Watched it go back up. Stay the course.
by trueblueky
Thu Jun 04, 2020 6:39 pm
Forum: Personal Finance (Not Investing)
Topic: Fraudulent Tax Return using our Dependent's SSN
Replies: 17
Views: 1618

Re: Fraudulent Tax Return using our Dependent's SSN

We have just been notified by our tax guy that our electronically filed tax return has been rejected by the IRS because the Dependent SSN on our tax return (ie. my 17 yr old step child) was "used as a Dependent SSN on a previously filed tax filing for the same period". Does anyone have any experien...
by trueblueky
Wed Jun 03, 2020 3:49 pm
Forum: Personal Investments
Topic: Does every one here only have 3 funds in their portfolios?
Replies: 131
Views: 8193

Re: Does every one here only have 3 funds in their portfolios?

Sort of. In TSP, I hold C and S (which equals total US stock market), I (which follows an international index that excludes China and Canada), and G (which is unique). Outside it, I follow three-fund philosophy. Sort of. Some of my fixed income consists of I bonds and CDs. I don't have sector funds,...