Search found 586 matches

by Penguin
Sun Apr 05, 2020 5:07 am
Forum: Personal Investments
Topic: Treasuries - No state tax - How to do when filing taxes
Replies: 5
Views: 470

Re: Treasuries - No state tax - How to do when filing taxes

Treasuries - No state tax - How to do when filing taxes Not sure how this is accomplished when using Turbo tax, is there a Line to deduct the returns from the treasury for the state tax ? When we get the 1099 INT or 1099 DIV, turbo tax imports from the brokerage, will this have the information for ...
by Penguin
Sat Mar 21, 2020 6:08 pm
Forum: Personal Finance (Not Investing)
Topic: Easiest way to file child's taxes
Replies: 11
Views: 608

Re: Easiest way to file child's taxes

The IRS has rejected my son's taxes produced in Turbo Tax twice already. Looking at them, we can't figure out why, and TT just says to refile. He's using TaxAct to do them now, there are a few calculations that are very different in TA than TT, we'll see what happens. I don't know the answer. Howev...
by Penguin
Tue Mar 10, 2020 3:58 pm
Forum: Personal Investments
Topic: Moms retirement question, strapped
Replies: 12
Views: 1846

Re: Moms retirement question, strapped

Look into local and state programs for low income seniors and see what she is eligible today and in the future. She will meet the income restrictions for most of the ones I am aware of but the assets ones are very state/program specific. Things like buying a house or getting a SPIA can affect them ...
by Penguin
Tue Mar 10, 2020 2:48 pm
Forum: Personal Investments
Topic: Moms retirement question, strapped
Replies: 12
Views: 1846

Re: Moms retirement question, strapped

Just for a very rough ballpark, 4% of $240,000 gives a spending rate of $800/mo plus Social Security adds to $1600/mo. For withdrawals from a portfolio at that idealized rate the asset allocation doesn't matter very much and anything 40/60 to 60/40 is probably fine, maybe shaded to the more conserv...
by Penguin
Tue Mar 10, 2020 6:22 am
Forum: Personal Investments
Topic: Moms retirement question, strapped
Replies: 12
Views: 1846

Re: Moms retirement question, strapped

Thoughts and advice appreciated. My advice is to pay attention to expenses. Start with the most expensive category and work down. Can she save on housing? Can she share housing expenses? Can she save on transportation? Cheaper car? No car? Can she save on food? Can she save on entertainment? Cable?...
by Penguin
Mon Mar 09, 2020 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: Does my MIL have to file taxes?
Replies: 23
Views: 885

Re: Does my MIL have to file taxes?

The IRS has a web page which will ask you a series of questions, and then based on your answers, tell you if you need to file. You will find it here: https://www.irs.gov/help/ita/do-i-need-to-file-a-tax-return . I tried this interactive tax assistant with numbers in the range that I guessed OP was ...
by Penguin
Sat Mar 07, 2020 5:36 pm
Forum: Personal Consumer Issues
Topic: Reimbursement after meeting annual gift maximum
Replies: 13
Views: 814

Re: Reimbursement after meeting annual gift maximum

I don't see a problem. Perhaps I am missing something. The children are Jim, Jon, Ann, Jane. Mom writes check for $15,000 each to Jim, Jon, Ann and Jane. Each child pays with their own credit card. No IRS form is required. It appears she also is giving each child $15,000 in cash at another time so ...
by Penguin
Sat Mar 07, 2020 5:21 pm
Forum: Personal Consumer Issues
Topic: Reimbursement after meeting annual gift maximum
Replies: 13
Views: 814

Re: Reimbursement after meeting annual gift maximum

I don't see a problem. Perhaps I am missing something.
The children are Jim, Jon, Ann, Jane.
Mom writes check for $15,000 each to Jim, Jon, Ann and Jane.
Each child pays with their own credit card.
No IRS form is required.
by Penguin
Thu Feb 27, 2020 3:43 pm
Forum: Personal Investments
Topic: 529 tax question death of administrator
Replies: 3
Views: 269

Re: 529 tax question death of administrator

Your answers are probably here: https://www.savingforcollege.com/article/reporting-529-plan-withdrawals-on-your-federal-tax-return Will my son owe taxes on this as he took a distribution that was not for higher education? Yes 529 plan distributions used to pay for non-qualified expenses are subject ...
by Penguin
Sun Jan 12, 2020 1:33 pm
Forum: Personal Finance (Not Investing)
Topic: Spouse diagnosed with cancer. Financial steps?
Replies: 38
Views: 6130

Re: Spouse diagnosed with cancer. Financial steps?

Although your wife is a stay at home spouse, it is possible that she worked at some time in her life and may qualify for social security benefits. It may be worth a call or visit to the social security office to find out if she may be eligible for disability benefits now and if she succumbs whether ...
by Penguin
Sun Jan 05, 2020 6:55 am
Forum: Personal Finance (Not Investing)
Topic: Estate Planning
Replies: 22
Views: 3093

Re: Estate Planning

I don't know the answer to your question.
Vanguard says:
In accordance with federal banking laws, VNTC is authorized to perform fiduciary activities, including accepting trustee appointments, in any state.
by Penguin
Tue Dec 31, 2019 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Tax Questions
Replies: 7
Views: 888

Re: Social Security Tax Questions

You can ask us to withhold federal taxes from your Social Security benefit payment when you first apply. If you are already receiving benefits or if you want to change or stop your withholding, you'll need a Form W-4V from the Internal Revenue Service (IRS). You can download the form or call the IR...
by Penguin
Thu Nov 14, 2019 8:29 am
Forum: Personal Finance (Not Investing)
Topic: Gift to granddaughter
Replies: 11
Views: 1061

Re: Gift to granddaughter

You cannot deduct the gift, but your granddaughter may be able to deduct the interest on the loan. Student loan interest is interest you paid during the year on a qualified student loan. It includes both required and voluntarily pre-paid interest payments. You may deduct the lesser of $2,500 or the ...
by Penguin
Sun Oct 27, 2019 12:53 pm
Forum: Personal Finance (Not Investing)
Topic: Inheritance question
Replies: 18
Views: 2497

Re: Inheritance question

Use Schedule K-1 to report a beneficiary's share of the estate’s or trust’s income, credits, deductions, etc. on your Form 1040, U.S. Individual Income Tax Return.
Thus if the estate had an asset and earned interest (or other income) it would be reported on K-1.
by Penguin
Sun Sep 01, 2019 9:15 am
Forum: Investing - Theory, News & General
Topic: Child tax credit (CTC)
Replies: 4
Views: 448

Re: Child tax credit (CTC)

https://www.irs.gov/faqs/earned-income-tax-credit/qualifying-child-rules/qualifying-child-rules-1 This CTC is for a qualifying child...seems like one of the qualifications is that the child must have lived with you for >6 months...my grandchild was just born (August 27) so seems like she will not qu...
by Penguin
Mon Aug 19, 2019 1:41 pm
Forum: Personal Finance (Not Investing)
Topic: 529 beneficiary change
Replies: 41
Views: 1909

Re: 529 beneficiary change

The new beneficiary is the same generation as the former beneficiary and is a Member of the Family of the former beneficiary (e.g. beneficiary change from parent’s niece to parent’s child). There are no federal gift or generation-skipping transfer tax consequences. If the new beneficiary were a lat...
by Penguin
Mon May 27, 2019 8:11 am
Forum: Personal Finance (Not Investing)
Topic: Estimated Tax Question
Replies: 4
Views: 411

Re: Estimated Tax Question

I didn't pay any 2018 tax when I filed for an extension for my 1040 in April. I did make a 20 thousand dollar estimated tax payment for 2019 and paid that by April 15. I now get the information that I owe 11 thousand in taxes from 2018 and about 9 thousand in estimated taxes for 2019. How would I g...
by Penguin
Mon May 13, 2019 10:16 am
Forum: Personal Investments
Topic: 0% LT Capital Gain Tax Question
Replies: 12
Views: 1321

Re: 0% LT Capital Gain Tax Question

Is my understanding correct that for 2019, I will be paying 0% in capital gains up to $39,375, which is the case here?
That is $39,375 of taxable income. That is after deductions. The standard deduction is $12,200.
by Penguin
Mon Apr 22, 2019 3:59 pm
Forum: Personal Investments
Topic: Exchange Vanguard Admiral for Investor- capital gains?
Replies: 16
Views: 1064

Re: Exchange Vanguard Admiral for Investor- capital gains?

One solution is to convert Admiral shares to Healthcare ETF. This is not a sale but a conversion, so no Capital Gain. Then you can transfer to new broker.
by Penguin
Sun Apr 14, 2019 8:28 am
Forum: Personal Investments
Topic: Living Trust, how did you structure distributions.
Replies: 15
Views: 1447

Re: Living Trust, how did you structure distributions.

I have a "Living Trust" question as well. How to deal with an adult child who is the sole beneficiary, and is totally incompetent about financial issues. She is mid 30s, single, no children. Has dug herself deeply in debt. I have refused to give her any money because past "loans" have disappeared a...
by Penguin
Tue Apr 09, 2019 2:21 pm
Forum: Personal Finance (Not Investing)
Topic: IRS tax rules on personal loan to friend
Replies: 5
Views: 586

Re: IRS tax rules on personal loan to friend

Loan interest income taxable by the federal government is always reported on the “Taxable interest” line of your return. But if your total interest income for the year – not just the interest collected on the loan – is more than $1,500, you'll need to report it on a Schedule B attachment to your re...
by Penguin
Sun Apr 07, 2019 6:03 am
Forum: Personal Finance (Not Investing)
Topic: How Much Term Life Insurance?
Replies: 56
Views: 4161

Re: How Much Term Life Insurance?

It may help you decide if you estimate your annual family expenses after you die. You may wish to consider the social security survivor benefits which may be $50,000 per year until your children reach age 18.
by Penguin
Thu Apr 04, 2019 9:31 am
Forum: Personal Finance (Not Investing)
Topic: Scholarship trigger Kiddie tax and AMT for kid?
Replies: 14
Views: 1162

Re: Scholarship trigger Kiddie tax and AMT for kid?

Thank you maywood for your correction. Thank you snowman. It appears that kacang's son may want to make at least $4000 of his scholarship to be taxable and use this money for qualified expenses so he can claim the full AOTC. However, only 40% of the AOTC is refundable, so if the income is low, he ma...
by Penguin
Thu Apr 04, 2019 8:08 am
Forum: Personal Finance (Not Investing)
Topic: Scholarship trigger Kiddie tax and AMT for kid?
Replies: 14
Views: 1162

Re: Scholarship trigger Kiddie tax and AMT for kid?

- He can be claimed as our dependent in 2019. Thus his standard deduction will be his measly earned income + $350. He cannot claim AOTC as a dependent. We cannot claim AOTC due to MAGI limit. Don't claim him as a dependent. You are not required to do so. The IRS says this in pub 970 If you don't cl...
by Penguin
Thu Apr 04, 2019 7:34 am
Forum: Personal Finance (Not Investing)
Topic: Scholarship trigger Kiddie tax and AMT for kid?
Replies: 14
Views: 1162

Re: Scholarship trigger Kiddie tax and AMT for kid?

unearned taxable income I don't think this is unearned income. The IRS says this: Generally, you report any portion of a scholarship, a fellowship grant, or other grant that you must include in gross income as follows: If filing Form 1040.pdf, include the taxable portion in the total amount reporte...
by Penguin
Mon Apr 01, 2019 12:52 pm
Forum: Personal Finance (Not Investing)
Topic: CA tax - Can parent pay using their check
Replies: 21
Views: 1173

Re: CA tax - Can parent pay using their check

Gill answered a similar question "yes".
viewtopic.php?f=2&t=275668&p=4434715#p4434715

You can sell or gift a check to your daugther for the amount due.
by Penguin
Fri Mar 22, 2019 8:33 am
Forum: Personal Finance (Not Investing)
Topic: Anyone Get a Transfer Bonus on an Inherited IRA
Replies: 4
Views: 348

Re: Anyone Get a Transfer Bonus on an Inherited IRA

I asked Merrill Edge. Hi!: Thank you for using Merrill Edge! What questions can I answer about opening an account? You: Can I get a transfer bonus for transferring an inherited IRA to Merrill Leslie S: Good morning! Leslie S: I would be happy to assist you today! Leslie S: Yes, you can certainly qua...
by Penguin
Sat Mar 02, 2019 12:26 pm
Forum: Personal Finance (Not Investing)
Topic: Charitable Contributions and state taxes
Replies: 3
Views: 251

Re: Charitable Contributions and state taxes

ddition to marginal tax brackets, one of the major features of the New York income tax is deductions. The three most common deductions encountered by taxpayers are the New York Standard Deduction, the New York Personal Exemption, and the New York Dependent Deduction. The current values of these ded...
by Penguin
Sat Mar 02, 2019 8:54 am
Forum: Personal Finance (Not Investing)
Topic: Charitable Contributions and state taxes
Replies: 3
Views: 251

Re: Charitable Contributions and state taxes

Complete form IT-196.
Beginning with tax year 2018, you can choose to itemize your deductions for New York State income tax purposes whether or not you itemized your deductions on your federal income tax return. For more information, see our 2018 New York itemized deduction webpage.
by Penguin
Wed Feb 27, 2019 9:02 pm
Forum: Personal Finance (Not Investing)
Topic: IRA, am I covered by a retirement plan
Replies: 5
Views: 528

Re: IRA, am I covered by a retirement plan

You can contribute and deduct up to the amount of your work earnings such as salary or self employment income. You are not eligible to contribute if you turned age 70 1/2 in 2018.
by Penguin
Thu Feb 21, 2019 4:08 pm
Forum: Personal Investments
Topic: Should I keep money in TSP long term?
Replies: 66
Views: 3419

Re: Should I keep money in TSP long term?

Hello everyone! I was wondering if I should keep money is my TSP for the long term. I think the funds are pretty well diversified and the costs are low. In speaking with my financial adviser, he was not a big fan of the TSP and thinks that I should consolidate my account outside of the TSP. I have ...
by Penguin
Thu Feb 21, 2019 6:13 am
Forum: Personal Finance (Not Investing)
Topic: Long term care premiums and tax deductions
Replies: 5
Views: 446

Re: Long term care premiums and tax deductions

This is from the IRS Eligible Long-Term Care Premium Limits For 2018, the maximum amount of qualified long-term care premiums includible as medical expenses has increased. Qualified long-term care premiums, up to the amounts shown below, can be included as medical expenses on Form 1040, Schedule A, ...
by Penguin
Sun Feb 17, 2019 5:29 am
Forum: Personal Finance (Not Investing)
Topic: Tax Reporting for House titled to Revocable Living Trust (after grantor's death - Form 1041)
Replies: 16
Views: 994

Re: Tax Reporting for House titled to Revocable Living Trust

From the 1041 instructions
Line 4—Capital Gain or (Loss)
Enter the gain from Schedule D (Form 1041), Part III, line 19, column (3) or the loss from Part IV, line 20.
by Penguin
Tue Jan 22, 2019 1:20 pm
Forum: Personal Investments
Topic: Shifting funds from National to California munis
Replies: 14
Views: 1501

Re: Shifting funds from National to California munis

I guess what I'm asking is if one has $1mill in munis, how much tax do you pay (federal and state) if it's in CA interm. munis vs. National interm munis? Assume top tax bracket and CA state tax 10.5%. The SEC yield on Vanguard Intermediate-Term Tax-Exempt Fund Admiral Shares (VWIUX) is 2.45%. (fund...
by Penguin
Sat Jan 12, 2019 9:07 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 18169
Views: 2563429

Re: U.S. stocks in free fall

Will 800,000 furloughed federal workers be factored in to the unemployment rate? Probably not. https://www.calculatedriskblog.com/2019/01/update-on-shutdown-impact-on-january.html For the January employment report, this means that the BLS will count all Federal employees as employed in the establis...
by Penguin
Wed Dec 26, 2018 2:31 pm
Forum: Personal Investments
Topic: help with estate issue - cost basis for treasury direct notes
Replies: 3
Views: 262

Re: help with estate issue - cost basis for treasury direct notes

Google gives an answer for Dec 24.
Maturity/// Coupon/ Bid//// Asked/ Chg Asked Yield

6/30/202 2.125 98.4922 98.5078 0.2031 2.572

You can change the date at the top of the page.

http://www.wsj.com/mdc/public/page/2_3020-treasury.html
by Penguin
Sat Nov 10, 2018 3:18 pm
Forum: Personal Finance (Not Investing)
Topic: State Income Tax Question on IRA Distributions
Replies: 5
Views: 444

Re: State Income Tax Question on IRA Distributions

I would consider converting the IRA to a Roth before moving to Arizona. That would save the state income tax on the amount converted, but still give you the flexibility of deferring the distribution as long as you live.
by Penguin
Sun Sep 30, 2018 9:28 pm
Forum: Personal Finance (Not Investing)
Topic: Not claiming children as dependents or not? Tax implications
Replies: 11
Views: 1308

Re: Not claiming children as dependents or not? Tax implications

In order to pay for more than half his/support --- can then be gotten from a 529 distribution? Here is the IRS worksheet to determine support: https://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf On line 1 it says: 1. Enter the total funds belonging t...
by Penguin
Sun Sep 30, 2018 5:55 pm
Forum: Personal Finance (Not Investing)
Topic: Not claiming children as dependents or not? Tax implications
Replies: 11
Views: 1308

Re: Not claiming children as dependents or not? Tax implications

Does it make sense to claim them as dependents for 2018 or 2019? If you claim them as dependents you can claim child tax credit. This is for children under age 17 so your children do not qualify. If you claim them as dependents you can claim education tax credits for amounts that you pay for educat...
by Penguin
Sat Aug 04, 2018 7:16 am
Forum: Investing - Theory, News & General
Topic: Using 529 Like a 401k (not for education!)
Replies: 8
Views: 1455

Re: Using 529 Like a 401k (not for education!)

AndroAsc wrote:
Fri Aug 03, 2018 9:26 am


Apart from tax comparisons, 529 plans are also better sheltered from creditors correct?

Thoughts? Let's discuss.
I don't think this is correct. It varies from state to state.
http://advisor.morningstar.com/uploaded ... _Table.pdf
by Penguin
Sun Jun 24, 2018 12:52 pm
Forum: Investing - Theory, News & General
Topic: some rethinking on taxable and retirement accounts with 2018 tax law
Replies: 8
Views: 1315

Re: some rethinking on taxable and retirement accounts with 2018 tax law

CODE: SELECT ALL Tax Single Filers Joint Filers Head of Household 0% $0 - $38,600 $0 - $77,200 $0 - $51,700 15% $38,601 - $425,800 $77,201 - $479,000 $51,701 - $452,400 20% > $425,800 > $479,000 > $452,400 I believe this chart is based on taxable income, not AGI. Please correct me if I am wrong. Th...
by Penguin
Sun Jun 03, 2018 8:33 am
Forum: Personal Finance (Not Investing)
Topic: Tax software for 2018
Replies: 20
Views: 2202

Re: Tax software for 2018

H R Block worked for me. It says 2017 but it estimates 2017 and 2018.
https://www.hrblock.com/tax-calculator/#/en/te/aboutYou
by Penguin
Sun Jun 03, 2018 5:48 am
Forum: Personal Finance (Not Investing)
Topic: Ca. state tax question
Replies: 10
Views: 1152

Re: Ca. state tax question

California does not tax dividends paid by a fund attributable to interest received from U.S. obligations or California state or municipal obligations IF at least 50% of the fund’s assets would be exempt from California tax when held by an individual. California taxes dividends derived from mutual f...
by Penguin
Mon May 21, 2018 8:08 am
Forum: Personal Investments
Topic: Newly widowed, how do I invest 1.5 million life ins. proceeds
Replies: 72
Views: 9579

Re: Newly widowed, how do I invest 1.5 million life ins. proceeds

Please accept my condolences on your loss. You are getting excellent advice. There is one thing you must consider quickly. Health insurance is very expensive. Death is a qualifying event to allow you apply for insurance under the affordable care act, but only for 60 days after the death. If you need...
by Penguin
Thu Mar 15, 2018 7:02 am
Forum: Personal Finance (Not Investing)
Topic: Gift tax
Replies: 18
Views: 1409

Re: Gift tax

A credit card company does not qualify. But are you married? If so, then your spouse can also gift to your daughter. Otherwise, I think there a simple form you can fill out and no gift tax will be due. The form to fill out is form 709. In my opinion it is not that simple of a form. According to Nat...
by Penguin
Fri Mar 02, 2018 12:19 pm
Forum: Personal Finance (Not Investing)
Topic: when to file restricted application
Replies: 2
Views: 368

Re: when to file restricted application

There is a reason that you should file a restricted application now. If you do you will receive spouse benefits for two additional years, from age 66 to 68. In order for you to qualify, you wife must have already claimed her retirement benefit. If you wait until your wife is 66 you will not get any ...
by Penguin
Tue Feb 20, 2018 7:49 am
Forum: Personal Finance (Not Investing)
Topic: Social Security and late life marriage
Replies: 10
Views: 1266

Re: Social Security and late life marriage

What if she retires at age 66, still single, starts collecting her own SS, then we marry a few years later but before I start SS, and then I die. Would she still get my larger SS benefit? You have to be married for 9 months prior to your death. If we marry on my deathbed the day before I die, she g...
by Penguin
Sun Dec 10, 2017 7:45 am
Forum: Personal Investments
Topic: Fraud/401k sales and the elderly parent
Replies: 15
Views: 2470

Re: Fraud/401k sales and the elderly parent

This is a frightening story. I can imagine that it could happen to me or my family.
Perhaps this could help a little. You can deduct theft losses on your income taxes. There are some limits.
https://www.irs.gov/taxtopics/tc515
by Penguin
Thu Nov 23, 2017 8:37 am
Forum: Personal Finance (Not Investing)
Topic: Does anyone file form 5329 just to establish statute of limitations?
Replies: 8
Views: 1940

Re: Does anyone file form 5329 just to establish statute of limitations?

Natalie Choate, who is a responsible tax advisor for retirement plans thinks that filing 5329 every year is one of the BEST things you can do. C. BEST: File form 5329 every year. Form 5329 must be filed for any year that you owe an IRA-related penalty. That’s the form you use to report missed requir...
by Penguin
Thu Nov 23, 2017 7:36 am
Forum: Investing - Theory, News & General
Topic: Dropping Term Life Insurance When Hitting Your Number
Replies: 30
Views: 4751

Re: Dropping Term Life Insurance When Hitting Your Number

Thanks for the replies. I just hit my number recently and I am not much beyond my number. My wife and I have retired, no other streams of income other another dividends and spending down of savings. I have enough in cash and short term instruments to reach my delayed SS at age 70 in 3 1/2 years. Wh...