Search found 2032 matches

by trueblueky
Sat Apr 10, 2021 3:41 pm
Forum: Personal Investments
Topic: "Escrow" held by POA for dad's taxes?
Replies: 15
Views: 735

Re: "Escrow" held by POA for dad's taxes?

Sorry you're going through this without sibling's support. He needs a will and a named executor.
by trueblueky
Sat Apr 10, 2021 1:01 pm
Forum: Personal Finance (Not Investing)
Topic: Inheritance - help me get my head straight
Replies: 11
Views: 1435

Re: Inheritance - help me get my head straight

My brother and I (early 40s, he' single, I'm married with three school age kids) are in the process of inheriting our mom's estate. I am a long time Boglehead and it's served me and my family well, and my brother says he plans to rely on me for advice and guidance on the inheritance. Both of us are...
by trueblueky
Thu Apr 08, 2021 7:52 pm
Forum: Personal Finance (Not Investing)
Topic: Do you LOVE your tax professional?
Replies: 19
Views: 1655

Re: Do you LOVE your tax professional?

Talk to people in your area with a similar number of employees. Ask who they use and their assessment.
by trueblueky
Thu Apr 08, 2021 7:37 pm
Forum: Personal Finance (Not Investing)
Topic: FERS annuitant question
Replies: 11
Views: 1306

Re: FERS annuitant question

Added: you will receive a lump sum payment for accumulated annual leave. My agency put it in the final check. I think some agencies send it separately. I know, that's whopper of a monkey wrench, isn't it. Thanks for the heads up. I've never understood the desire to max out leave. It doesn't make se...
by trueblueky
Thu Apr 08, 2021 4:14 pm
Forum: Personal Finance (Not Investing)
Topic: FERS annuitant question
Replies: 11
Views: 1306

Re: FERS annuitant question

Added: you will receive a lump sum payment for accumulated annual leave. My agency put it in the final check. I think some agencies send it separately. I know, that's whopper of a monkey wrench, isn't it. Thanks for the heads up. I've never understood the desire to max out leave. It doesn't make se...
by trueblueky
Wed Apr 07, 2021 10:27 am
Forum: Personal Finance (Not Investing)
Topic: IRA Beneficiary & Estate Question
Replies: 18
Views: 1141

Re: IRA Beneficiary & Estate Question

Am I reading incorrectly that any amount over $12,500 is taxed (in an estate) as 39.6%? The IRA has about 500k in it. The three beneficiaries most definitely do not have personal income tax rates anywhere near 39.6%. You're not digesting fully what bsteiner and AlanS have told you. Distributions fr...
by trueblueky
Wed Apr 07, 2021 10:04 am
Forum: Personal Finance (Not Investing)
Topic: Possible Job Transfer from LCOL (NE WI) to MHCOL (Reno, NV) - Advice on salary differential expectations?
Replies: 9
Views: 619

Re: Possible Job Transfer from LCOL (NE WI) to MHCOL (Reno, NV) - Advice on salary differential expectations?

Please note that, under current tax law, moving expenses are not deductible. MegaCorp reimbursement of moving expenses is taxable income.
by trueblueky
Tue Apr 06, 2021 4:38 pm
Forum: Personal Finance (Not Investing)
Topic: FERS annuitant question
Replies: 11
Views: 1306

Re: FERS annuitant question

Box 1 will show Gross. ... The first check should come in July, representing the June annuity. Often, it takes a month or two for everything to be right. Very helpful! Sorry I should have stated that the numbers are pseudo, made-up only to illustrate. The purpose of this exercise is to plan for our...
by trueblueky
Mon Apr 05, 2021 3:45 pm
Forum: Personal Finance (Not Investing)
Topic: FERS annuitant question
Replies: 11
Views: 1306

Re: FERS annuitant question

DH will be retiring 5/26/2021 with a FERS annuity. On the annuity document from his HR, it listed two different income numbers: Unreduced Monthly Annuity $1000 (with a $100 survivor bene.) Gross Monthly Annuity $900 Which of these two numbers goes on the 1099-R box 1? Given that his last day is May...
by trueblueky
Mon Apr 05, 2021 3:21 pm
Forum: Personal Finance (Not Investing)
Topic: Amending an amended tax return
Replies: 3
Views: 327

Re: Amending an amended tax return

I filed my tax returns earlier around the middle of March. At the end of March, I received a corrected 1099-B from Vanguard, so I filed an amended tax return. Today, I received a second corrected 1099-B from Vanguard that apparently reverses the correction from the corrected 1099-B received last mo...
by trueblueky
Mon Apr 05, 2021 8:27 am
Forum: Personal Finance (Not Investing)
Topic: Any reason to file taxes before May 17?
Replies: 34
Views: 3580

Re: Any reason to file taxes before May 17?

Many threads lately about software not updated properly, waiting for updates, etc etc. And other threads about CP2000s and other snafus due to tax software errors. I will wait until at least May before I file as I have been burned before. Hopefully TT will have all the bugs worked out by then. And ...
by trueblueky
Sun Apr 04, 2021 3:13 pm
Forum: Personal Finance (Not Investing)
Topic: RMD(s) for Traditional IRA and Rollover IRA?
Replies: 10
Views: 876

Re: RMD(s) for Traditional IRA and Rollover IRA?

We know that RMDs do not apply across "containers" (using the term used in the WSJ article discussed in today's thread https://www.bogleheads.org/forum/viewtopic.php?f=1&t=345043), eg: RMD for an inherited IRA doesn't cover RMD for a traditional IRA. But what about RMDs for "trad...
by trueblueky
Sat Apr 03, 2021 6:19 pm
Forum: Personal Investments
Topic: Required Minimum Distribution???
Replies: 20
Views: 2900

Re: Required Minimum Distribution???

The IRS is implementing the new RMD tables effective in 2022. There will be no change to the 2021 RMD divisors. 2022 RMDs will therefore be a little lower (~ 6%) which will slightly reduce the cost of deferring all or part of the 2021 RMD to 2022. So if one defers a 2021 RMD to 2022 then one uses t...
by trueblueky
Sat Apr 03, 2021 4:42 pm
Forum: Investing - Theory, News & General
Topic: Impact on taxable account when China eventually moves from EM to DM indices.
Replies: 17
Views: 1270

Re: Impact on taxable account when China eventually moves from EM to DM indices.

While I don't believe this reclassification will happen any time soon (and by soon I mean not in my lifetime), Vanguard has already handled something similar. Late 2000s MSCI reclassed South Korea to developed from emerging. Korea was a large chunk of the emerging markets fund, and Vanguard made th...
by trueblueky
Fri Apr 02, 2021 5:26 pm
Forum: Personal Investments
Topic: Advice on what to do with a "windfall" at age 55
Replies: 19
Views: 3383

Re: Advice on what to do with a "windfall" at age 55

I am new to Bogleheads, and have been lurking here lately, and on the Reddit sub, due to some money I’m about to receive. I’ve respected the advice and comments that are often given here and there. I posted this first on the Reddit sub and was encouraged to bring this here. This is pretty new to me...
by trueblueky
Fri Apr 02, 2021 12:11 pm
Forum: Personal Finance (Not Investing)
Topic: H&R Block: Fixing Names/SSNs for MFJ
Replies: 5
Views: 498

Re: H&R Block: Fixing Names/SSNs for MFJ

Curious.

Knowing which spouse had the income is important information for some state returns:
  • Ohio where MFS can save over MFJ
  • Iowa has married filing separately on a single form
  • Likely others
by trueblueky
Tue Mar 30, 2021 6:01 pm
Forum: Personal Finance (Not Investing)
Topic: Federal E-File rejected due to Duplicate 1099-R
Replies: 31
Views: 2453

Re: Federal E-File rejected due to Duplicate 1099-R

I have the same problem and just received the eFile rejection email. I verified in the "Form view" that the two 1099-R have different SS#. They both showed our names correctly. Unfortunately the dollar amount are identical to the cent on both forms. I went to check my last years filing an...
by trueblueky
Tue Mar 30, 2021 5:44 pm
Forum: Personal Investments
Topic: Optimizing inherited IRA withdrawls
Replies: 11
Views: 998

Re: Optimizing inherited IRA withdrawls

I have an inherited traditional IRA (inherited before the 10 year rule) worth about 90K and am 34 years old, so my MRDs are about 2% of the total balance, which I know will increase more and more the older I become. Currently, I am making roughly 70K pre-tax and maxing out my Roth IRA, HSA and TSP ...
by trueblueky
Tue Mar 30, 2021 2:29 pm
Forum: Personal Investments
Topic: Early 50's Portfolio/Inheritance Advice Request
Replies: 5
Views: 889

Re: Early 50's Portfolio/Inheritance Advice Request

Inherited IRA Beneficiary Approximate Value: Current: 800k over 10 years 1.2M? Currently planning on taking 10% each year for ten years per requirement to empty in 10 Not 10% per year, but 1/10 the first year, 1/9 the second year, 1/8 the third year, etc. You may want to play with a tax program to ...
by trueblueky
Mon Mar 29, 2021 10:43 pm
Forum: Personal Finance (Not Investing)
Topic: Twenty Four Years of Taxes
Replies: 75
Views: 8535

Re: Twenty Four Years of Taxes

Hello Bogleheads. This post is for anyone who is interested in gaining an awareness of what they really pay in taxes. With the recent increase in my downtime during the covid, I stupidly dug through old archives of documents, tax returns, and others, and I created a spreadsheet to track every tax d...
by trueblueky
Mon Mar 29, 2021 5:47 pm
Forum: Personal Investments
Topic: Windfall/Inheritance Planning Help Request
Replies: 17
Views: 1459

Re: Windfall/Inheritance Planning Help Request

I would use the inherited IRA to fill your retirement funds as much as possible. Your business likely qualifies you and your wife for an SEP IRA, which has much higher limits than an IRA. https://www.bogleheads.org/wiki/SEP The withdrawal from the inherited IRA will be taxed, while the contributions...
by trueblueky
Mon Mar 29, 2021 1:27 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement advice for Mom: Pension or Lump Sum on Inherited Pension?
Replies: 8
Views: 741

Re: Retirement advice for Mom: Pension or Lump Sum on Inherited Pension?

The life annuity options are: Life Annuity: Monthly annuity paid throughout your lifetime, payments will cease upon death, No COLA Life Annuity with 10 year guarantee: Monthly annuity paid throughout your lifetime, if death should occur sooner than 10 years from the effective date, any remaining ba...
by trueblueky
Sat Mar 27, 2021 4:55 pm
Forum: Personal Finance (Not Investing)
Topic: Owned a home, rented it for 2 years, then sold - Still owe tax?
Replies: 39
Views: 2830

Re: Owned a home, rented it for 2 years, then sold - Still owe tax?

Not owing capital gains is one thing. Since you sold for more than the original cost basis, it clearly did not depreciate and you need to pay the depreciation recapture tax on the amount depreciated (I think you do get to subtract unused depreciation from the two years of renting it out in the case...
by trueblueky
Sat Mar 27, 2021 4:48 pm
Forum: Personal Finance (Not Investing)
Topic: Owned a home, rented it for 2 years, then sold - Still owe tax?
Replies: 39
Views: 2830

Re: Owned a home, rented it for 2 years, then sold - Still owe tax?

I think it would be best to go to the source: IRS Pub 523 . It appears to me that you're eligible for the cap gain exclusion but you must recapture depreciation. But it's fairly complex. I suggest you go through the worksheets in Pub 523 (Wksht 3 in particular) to understand the process. ^^ This. T...
by trueblueky
Fri Mar 26, 2021 7:52 am
Forum: Personal Finance (Not Investing)
Topic: Income gone up, IRMAA should go up, do I tell Medicare?
Replies: 14
Views: 1581

Re: Income gone up, IRMAA should go up, do I tell Medicare?

I'm not aware of any such requirement. Medicare payments are based on your MAGI amount from your prior tax return. Most sources indicate this is from 2 years prior, for example: https://www.medicareresources.org/medicare-eligibility-and-enrollment/what-is-the-income-related-monthly-adjusted-amount-...
by trueblueky
Thu Mar 25, 2021 7:47 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question regarding HOH and itemizing
Replies: 3
Views: 275

Re: Tax question regarding HOH and itemizing

Are you a married couple? One is claiming the child and filing HoH, the other is MFS?
by trueblueky
Tue Mar 23, 2021 3:35 pm
Forum: Personal Finance (Not Investing)
Topic: Schedule C / Section 179
Replies: 6
Views: 535

Re: Schedule C / Section 179

What I want to know is - can I depreciate (MACRS) the equipment over 5 years, and deduct the depreciation amount from my AGI on my personal tax return, or is it just deducted from the business income? You take the depreciation on Schedule C of your return. You cannot deduct it on your Schedule A.
by trueblueky
Tue Mar 23, 2021 2:27 pm
Forum: Personal Finance (Not Investing)
Topic: Which U.S. military bases are the best locations to work as a civilian RN?
Replies: 19
Views: 2360

Re: Changing career paths, not changing professions

Hi, Retired military RN here, with history at both US and overseas bases. It's really not a farfetched notion! It may be a fabulous adventure. I encourage you to keep exploring this idea, but I think if you can talk with people who have done it, and recently, that will be a big help. Also think a l...
by trueblueky
Mon Mar 22, 2021 7:23 pm
Forum: Investing - Theory, News & General
Topic: TCJA 2026 tax increase
Replies: 3
Views: 1011

Re: TCJA 2026 tax increase

What are ways for individuals to improve overall outcome with the 2026 Sunset of the TCJA ? Maybe convert traditional IRA to Roth IRA to take advantage of current lower rates. What are things we should do before the tax rates go up ? In 2025 (after two intervening elections for Congress and another...
by trueblueky
Sun Mar 21, 2021 12:48 pm
Forum: Investing - Theory, News & General
Topic: 25x Income Metric with a Pension
Replies: 14
Views: 1802

Re: 25x Income Metric with a Pension

I think it's best to evaluate what income you need from your portfolio - the amount of money above and beyond your pension. For example, you have a required income of $70k, and a pension of $30k - evaluate your necessary portfolio size based upon the gap of $40k. This is of course assuming that you...
by trueblueky
Sun Mar 21, 2021 10:11 am
Forum: Personal Investments
Topic: Managing investments for an elderly relative
Replies: 61
Views: 4228

Re: Managing investments for an elderly relative

It is important to learn her tax situation. Will you prepare them this year?

A year when she has large medical expenses (enters a memory care unit, for instance) could provide an opportunity to realize the capital gains, because of the offsetting medical deductions.
by trueblueky
Sat Mar 20, 2021 4:08 pm
Forum: Personal Investments
Topic: Inherited IRA, taxes, and gifting to kids
Replies: 9
Views: 678

Re: Inherited IRA, taxes, and gifting to kids

260chrisb wrote: Sat Mar 20, 2021 2:50 pm So if I understand correctly you can't transfer funds from a traditional inherited IRA to your kids or anyone to avoid paying taxes yes?
You can't "transfer" funds from your IRA to anyone else.
by trueblueky
Mon Mar 15, 2021 1:40 pm
Forum: Personal Investments
Topic: Advice to give dad and mom
Replies: 21
Views: 2601

Re: Advice to give dad and mom

One thing they can do that helps both them and their heirs is to take any capital losses that become available in the taxable account.

"Stepped-up" basis at death eliminates the capital loss, so that no one gets the advantage of it.
by trueblueky
Mon Mar 15, 2021 9:15 am
Forum: Personal Finance (Not Investing)
Topic: HELP QUICKLY PLEASE! 1099s to IRS and beneficiaries (Nominee distributions)/Deadlines
Replies: 9
Views: 706

Re: HELP QUICKLY PLEASE! 1099s to IRS and beneficiaries (Nominee distributions)/Deadlines

It would be good for the estate to have income. The estate can deduct some expenses on the 1041 that the heirs can't deduct on their 1040s. For instance, legal fees, such as the newspaper notice to creditors, executor costs, and the xx certified copies of the death certificate, are deductions on 104...
by trueblueky
Sun Mar 14, 2021 9:06 pm
Forum: Personal Finance (Not Investing)
Topic: IRS $10,200 unemployment exclusion instructions are out
Replies: 32
Views: 3443

Re: IRS $10,200 unemployment exclusion instructions are out

Put the full unemployment compensation on line 7 of schedule 1.

Put up to $10,200 of unemployment compensation exclusion as a negative on line 8 (unless you had $150,000+ in income, in which case complete the worksheet that should be available soon) noted as UCE.

Or wait for TT, HRB to catch up.
by trueblueky
Sun Mar 14, 2021 8:08 pm
Forum: Personal Finance (Not Investing)
Topic: 1040 Income Tax form [taxation of SS benefits]
Replies: 12
Views: 1127

Re: 1040 Income Tax form

Last year I waded through doing the social security computation page, and it said 85% of my social security was taxable. (last years income 2019 was over 159k plus another 7,000 of non taxable bond income). Did I make a mistake this year by not doing the tax computation worksheet and just assuming ...
by trueblueky
Sun Mar 14, 2021 6:21 pm
Forum: Personal Investments
Topic: Making sure I understand certain age related 10% penalty exceptions
Replies: 11
Views: 965

Re: Making sure I understand certain age related 10% penalty exceptions

You can transfer funds from MegaCorp 401k where you used to work to GigaCorp 401k where you work now IF the plan allows it. Ditto traditional IRA to 401k. (Not Roth IRA to Roth 401k however.)

This simplifies your life and makes better use of the 55 rule.
by trueblueky
Sun Mar 14, 2021 10:13 am
Forum: Personal Investments
Topic: Inherited IRA's
Replies: 20
Views: 2097

Re: Inherited IRA's

So sorry for your loss. The SECURE act has changed things a bit so this info is out of date for those who passed away after Jan 1, 2020: Inherited IRA RMD information from IRS: https://www.irs.gov/retirement-plans/required-minimum-distributions-for-ira-beneficiaries and from Vanguard: https://inves...
by trueblueky
Thu Mar 11, 2021 11:48 pm
Forum: Personal Finance (Not Investing)
Topic: Has anyone see an inheritance not go as planned? I would like to hear stories from others of what can go wrong.
Replies: 405
Views: 46015

Re: Has anyone see an inheritance not go as planned? I would like to hear stories from others of what can go wrong.

Imagine a large illiquid asset that cannot be divided up among beneficiaries, but each own an equal share of it. This asset requires significant management, creating political rifts among family. One party becomes impatient and greedy, involving all sorts of legal rigamarole. Relationships which co...
by trueblueky
Thu Mar 11, 2021 10:38 pm
Forum: Investing - Theory, News & General
Topic: American Rescue Plan Act of 2021 Signed
Replies: 72
Views: 8088

Re: American Rescue Plan Act of 2021 Signed

The first $10,200 of unemployment is not taxed for Tax Year 2020 for AGI under $150,000. (section 9042)

I checked. Four of our TaxAide clients qualify. Waiting on instructions and software update so we can help them file amendments.
by trueblueky
Wed Mar 10, 2021 9:35 pm
Forum: Personal Finance (Not Investing)
Topic: PSA: Free tax preparation (VITA) available entire remotely at GetYourRefund.org hub.
Replies: 13
Views: 934

Re: PSA: Free tax preparation (VITA) available entire remotely at GetYourRefund.org hub.

I'm curious if the VITA program is less important now with TurboTax and the virtual interview system. Filing personal income taxes is way easier today than it was when one had to fill out all of the forms by hand. If you meet the income and filing status (not married filing separately) the service ...
by trueblueky
Mon Mar 08, 2021 1:04 pm
Forum: Personal Finance (Not Investing)
Topic: Giving Retirement Notice - how did it go?
Replies: 133
Views: 13398

Re: Giving Retirement Notice - how did it go?

Federal retiree.
My boss asked that I give him four months notice, which I did. I sat on the hiring panel for my replacement. All went smoothly at work.

Notifying HR early and getting the OPM estimates early made retirement transition smooth as well.
by trueblueky
Mon Mar 08, 2021 12:57 pm
Forum: Personal Finance (Not Investing)
Topic: Has anyone see an inheritance not go as planned? I would like to hear stories from others of what can go wrong.
Replies: 405
Views: 46015

Re: Has anyone see an inheritance not go as planned? I would like to hear stories from others of what can go wrong.

If a couple has all of their assets in IRAs and taxable accounts with named beneficiaries (adult kids), is the will still necessary? What can go wrong if there isn't any? Is it possible to name beneficiaries to the family home in your state? If not, how does it pass without a will or trust? How do ...
by trueblueky
Mon Mar 08, 2021 12:42 pm
Forum: Personal Finance (Not Investing)
Topic: How to determine capital loss carryover?
Replies: 15
Views: 632

Re: How to determine capital loss carryover?

Does this mean I have a carryover of $4k heading into 2021? Line 7 (net short term gain/loss) = (4,000) Line 14 (net long term gain/loss): = (3,000) Line 16 (combine lines 7 and 15): = (7,000) Line 21 (lesser of line 16 or $3,000) = ($3,000). Yes, a LTCL carryover. Gill Why not $1000 ST loss and $3...
by trueblueky
Sun Mar 07, 2021 4:04 pm
Forum: Personal Investments
Topic: Bonds? No bonds? TSP
Replies: 42
Views: 3330

Re: Bonds? No bonds? TSP

Gubmints blog shows the advantage of G Fund in rebalancing. When equities (C,S,I funds) are up, G is up. When equities are down, G is up. You'll never rebalance when G is down. He shows that this let the L funds beat VG, Fido equivalents (comparing like asset allocations, not like target dates). Is...
by trueblueky
Sun Mar 07, 2021 1:53 pm
Forum: Personal Investments
Topic: Bonds? No bonds? TSP
Replies: 42
Views: 3330

Re: Bonds? No bonds? TSP

Gubmints blog shows the advantage of G Fund in rebalancing.
When equities (C,S,I funds) are up, G is up. When equities are down, G is up. You'll never rebalance when G is down.

He shows that this let the L funds beat VG, Fido equivalents (comparing like asset allocations, not like target dates).
by trueblueky
Sat Mar 06, 2021 7:19 pm
Forum: Personal Finance (Not Investing)
Topic: Tax reporting for sale of second home
Replies: 2
Views: 223

Re: Tax reporting for sale of second home

Thanks for your past help! This past year, I sold my old condo which was my prior primary home and which I owned jointly (50/50) with my father (when I purchased it I had no income so he was a co-purchaser). Although my gain on the condo is excluded per primary residence rules, my parents' is not. ...
by trueblueky
Sat Mar 06, 2021 5:22 pm
Forum: Personal Finance (Not Investing)
Topic: RMD and taxes
Replies: 19
Views: 1603

Re: RMD and taxes

I was reading through some old threads and it gets a bit confusing and over complicated. We will start next year. Please correct me if I am wrong. Just to make it simple.... SS payments 60,000 RMD 30,000 Other taxable 10,000 We take our RMD’s monthly with no withholding directly to our bank account...
by trueblueky
Sat Mar 06, 2021 5:18 pm
Forum: Personal Finance (Not Investing)
Topic: RMD and taxes
Replies: 19
Views: 1603

Re: RMD and taxes

I was reading through some old threads and it gets a bit confusing and over complicated. We will start next year. Please correct me if I am wrong. Just to make it simple.... SS payments 60,000 RMD 30,000 Other taxable 10,000 We take our RMD’s monthly with no withholding directly to our bank account...
by trueblueky
Thu Mar 04, 2021 2:07 pm
Forum: Personal Investments
Topic: TSP Allocations Out Of "L" Fund
Replies: 23
Views: 1075

Re: TSP Allocations Out Of "L" Fund

http://gubmints.com/2019/01/21/4-reasons-tsp-has-the-best-target-date-funds/#.YEEu6WhOk1I Takeaway: L does better than comparable lifecycle funds because of G. F fund may move the same direction as C,S,I. So all may be down at the same time. G fund never has a bad day. It always goes up, making it u...