Search found 7127 matches

by Wagnerjb
Mon Feb 26, 2018 8:52 am
Forum: Personal Finance (Not Investing)
Topic: Tax question: Foreign Tax Credit
Replies: 33
Views: 2947

Re: Tax question: Foreign Tax Credit

1116 is a monster form. As I understand it, the credit can only be used to reduce past or future returns to the extent that U.S. taxes on foreign income exceed foreign taxes paid on that income. To start, you’d have to segregate income by source and category. Using form 1116 to carry over unused fo...
by Wagnerjb
Sun Feb 25, 2018 8:13 pm
Forum: Personal Finance (Not Investing)
Topic: HSA Contributions Tax Question (premium pass through)
Replies: 15
Views: 1131

Re: HSA Contributions Tax Question

Thanks for the response! I don't want to mistakenly deduct the $1500 twice from my income. Since it was included in box 12 code DD, it was already deducted from my income in my W2 and so I didn't pay taxes on it. If I list it under box 2 in form 8889, I believe I'll deduct it from my income again ....
by Wagnerjb
Sun Feb 25, 2018 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: HSA Contributions Tax Question (premium pass through)
Replies: 15
Views: 1131

Re: HSA Contributions Tax Question

If you paid the $1500 in insurance premiums yourself (to the insurance company), then you can deduct those amounts from your income. I believe both the $1500 and the $219 need to be reflected on line 2 of your form 8889. That way, you can deduct the combined $1719 from your income. If you trick or f...
by Wagnerjb
Sun Feb 25, 2018 1:49 pm
Forum: Personal Finance (Not Investing)
Topic: Training courses and Lifetime Learning Credit for 2017 Taxes
Replies: 4
Views: 288

Re: Training courses and Lifetime Learning Credit for 2017 Taxes

I have taken several courses from Certstaff training center last year and paid a total of $2500. Can I claim them as LLC? I have all the receipts and certifications. I spoke with my accountant and he said I need 1098-T. Called training company and I am getting bumped around and not getting anywhere...
by Wagnerjb
Sun Feb 25, 2018 10:55 am
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion Push with Tax Law Changes (Money Mag Article)
Replies: 23
Views: 2450

Re: Roth Conversion Push with Tax Law Changes (Money Mag Article)

So my parents read an article in Money Magazine ( http://time.com/money/5097654/make-this-one-change-to-your-retirement-account-now-tax-experts-say/ ) suggesting now is somehow particularly ideal to make Roth conversions. I just am not seeing how a ~3% marginal change makes conversions magically mo...
by Wagnerjb
Sun Feb 25, 2018 10:43 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard 1099 question
Replies: 4
Views: 316

Re: Vanguard 1099 question

I am trying to understand the Vanguard 1099 The 1099-int and div are straightforward However instead of a section labeled 1099-b "I have a section labeled Summary of 2017 Proceeds From Broker and Barter Exchange Transactions" It is not labeled as a 1099-b which confuses me. There is a proceeds and ...
by Wagnerjb
Thu Feb 22, 2018 4:04 pm
Forum: Investing - Help with Personal Investments
Topic: AMT in Turbo Tax for Mortgage Interest
Replies: 6
Views: 728

Re: AMT in Turbo Tax for Mortgage Interest

If you paid any AMT, the amount would be reflected on line 45. You say that you didn't pay any AMT, but the number on line 45 was updated. Which is it?

Did TurboTax generate a form 6251?
by Wagnerjb
Wed Feb 21, 2018 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: Child's tax return question / parents form 8615
Replies: 23
Views: 1246

Re: Child's tax return question / parents form 8615

If the 1099B shows both gross sales proceeds and "basis reported to IRS", it is wishful thinking to believe the IRS will calculate the net gains or losses from all such reported sales, and add that net income or loss to the interest and dividend income in order to determine if the taxpayer meets th...
by Wagnerjb
Wed Feb 21, 2018 5:40 pm
Forum: Personal Finance (Not Investing)
Topic: Child's tax return question / parents form 8615
Replies: 23
Views: 1246

Re: Child's tax return question / parents form 8615

Thank you. To confirm, I thought that if someone (i.e. my daughter) has a 1099 B, that they have to file their own return (regardless of the amount). I could be totally wrong here. If I don't need to file a return for her, would I instead report her dividends and cap gains on my return? And even if...
by Wagnerjb
Wed Feb 21, 2018 5:36 pm
Forum: Personal Finance (Not Investing)
Topic: Child's tax return question / parents form 8615
Replies: 23
Views: 1246

Re: Child's tax return question / parents form 8615

If the 1099B shows both gross sales proceeds and "basis reported to IRS", it is wishful thinking to believe the IRS will calculate the net gains or losses from all such reported sales, and add that net income or loss to the interest and dividend income in order to determine if the taxpayer meets th...
by Wagnerjb
Wed Feb 21, 2018 5:32 pm
Forum: Personal Finance (Not Investing)
Topic: Child's tax return question / parents form 8615
Replies: 23
Views: 1246

Re: Child's tax return question / parents form 8615

The daughter does not need to file Form 8615, but she may need to file a tax return depending on the amount of the 1099B proceeds that generated the $200 capital loss. For example, if she sold a stock or fund for $15,000 for a $200 loss, the IRS will assume a $15,000 short term gain unless a tax re...
by Wagnerjb
Wed Feb 21, 2018 11:49 am
Forum: Personal Finance (Not Investing)
Topic: Child's tax return question / parents form 8615
Replies: 23
Views: 1246

Re: Child's tax return question / parents form 8615

Thank you. To confirm, I thought that if someone (i.e. my daughter) has a 1099 B, that they have to file their own return (regardless of the amount). I could be totally wrong here. If I don't need to file a return for her, would I instead report her dividends and cap gains on my return? And even if...
by Wagnerjb
Wed Feb 21, 2018 11:08 am
Forum: Personal Finance (Not Investing)
Topic: Child's tax return question / parents form 8615
Replies: 23
Views: 1246

Re: Child's tax return question / parents form 8615

First of all, your daughter does not need to file a tax return. And her income is not to be included in the calculations of your son's Kiddie Tax. The forms ask for the income of all of the children that need to file a form 8615 . Your daughter doesn't need to file at all, and thus no 8615 either. Y...
by Wagnerjb
Tue Feb 20, 2018 8:30 am
Forum: Investing - Theory, News & General
Topic: Cap Gain Tax Q 2018 tax year
Replies: 4
Views: 445

Re: Cap Gain Tax Q 2018 tax year

And the capital gains must be long-term, not short-term.
by Wagnerjb
Sun Feb 18, 2018 10:16 pm
Forum: Personal Finance (Not Investing)
Topic: Help! Are we stuck paying the tax/penalty/interest on this 529 withdrawal?
Replies: 23
Views: 2084

Re: Help! Are we stuck paying the tax/penalty/interest on this 529 withdrawal?

I'd disown the tax guy's response, say you're amending back to what you filed originally, and include a simple statement that all 1099-Q distributions were spent on qualified expenses and maybe attach a brief statement of how it was spent (dates and amounts of payments and for what). Three years ag...
by Wagnerjb
Sun Feb 18, 2018 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: Help! Are we stuck paying the tax/penalty/interest on this 529 withdrawal?
Replies: 23
Views: 2084

Re: Help! Are we stuck paying the tax/penalty/interest on this 529 withdrawal?

To my surprise, we've never received IRS letters. But with our income too high for education credits or deductions and my son having a full-tuition scholarship, 529 withdrawals were low and always made to him, not us. My own theory is that when there's a match of both a 1099-Q but no 1098-T for the...
by Wagnerjb
Sun Feb 18, 2018 2:21 pm
Forum: Personal Finance (Not Investing)
Topic: How to qualify wife for ACA subsidy in 2018
Replies: 18
Views: 1540

Re: How to qualify wife for ACA subsidy in 2018

Flora wrote:
Sun Feb 18, 2018 9:51 am
Consider charging less rent by 2k in order to save almost 12k with the subsidy, thereby netting 10k.
How about just asking your tenant to delay the rent payments for the last month or two of 2018 (as many as necessary), paying you the back rent in January 2019.

Best wishes.
by Wagnerjb
Sun Feb 18, 2018 9:29 am
Forum: Investing - Help with Personal Investments
Topic: Is a Brokerage "Redemption Fee" tax deductible?
Replies: 14
Views: 828

Re: Is a Brokerage "Redemption Fee" tax deductible?

I see. Thanks, Andy. I suspect part of the reason I've never seen anything like that at TaxAide is that, as you know, few of our clients keep records at that level of detail. That information was at the very back of a 16 page broker 1099 statement, although the fees were summarized in a table at th...
by Wagnerjb
Sun Feb 18, 2018 9:06 am
Forum: Personal Finance (Not Investing)
Topic: Question About The Kiddie Tax (Form 8615)
Replies: 2
Views: 322

Re: Question About The Kiddie Tax (Form 8615)

I looked at Form 8615 and can't quite figure this out. If the parent has dividend and capital gains income, how does 8615 figure that into the "Kiddie Tax"? It appears to just lump the child's unearned income onto the parent's taxable income, with no regard to the nature of the parent's income. I a...
by Wagnerjb
Sun Feb 18, 2018 8:53 am
Forum: Personal Finance (Not Investing)
Topic: Help! Are we stuck paying the tax/penalty/interest on this 529 withdrawal?
Replies: 23
Views: 2084

Re: Help! Are we stuck paying the tax/penalty/interest on this 529 withdrawal?

I paid the school in 2015 for spring 2016 tuition/fees, etc. I have since become more familiar with the 529 rules and realize now that I'm supposed to withdraw and pay in the same calendar year that the expenses are incurred. The crazy thing is that I pre-paid the 2016 tuition and fees on 12/31/15!...
by Wagnerjb
Sun Feb 18, 2018 8:43 am
Forum: Investing - Help with Personal Investments
Topic: Is a Brokerage "Redemption Fee" tax deductible?
Replies: 14
Views: 828

Re: Is a Brokerage "Redemption Fee" tax deductible?

The Scottrade 1099 statement had two "miscellaneous fees" of $20 each for two stocks that my brother owns. One was sold in 2017 and I applied the $20 adjustment just exactly as you mentioned. That sale was a short-term "covered" sale, with cost basis reported to the IRS. The other stock wasn't sold...
by Wagnerjb
Sat Feb 17, 2018 10:49 am
Forum: Investing - Help with Personal Investments
Topic: Is a Brokerage "Redemption Fee" tax deductible?
Replies: 14
Views: 828

Re: Is a Brokerage "Redemption Fee" tax deductible?

welderwannabe is correct, depending on the circumstances. The important issue is that the total sale proceeds reported to the IRS by the broker match what the taxpayer reports to the IRS. If the broker reports GROSS proceeds and doesn't include the redemption fee in cost basis, taxpayer should repo...
by Wagnerjb
Sat Feb 17, 2018 9:31 am
Forum: Investing - Help with Personal Investments
Topic: Is a Brokerage "Redemption Fee" tax deductible?
Replies: 14
Views: 828

Re: Is a Brokerage "Redemption Fee" tax deductible?

welderwannabe wrote:
Sat Feb 17, 2018 7:40 am
The fees would increase your cost basis, reducing your 'profit' if any or increasing your loss.
According to the IRS publication that Livesoft linked, a redemption fee reduces your sales proceeds.
by Wagnerjb
Fri Feb 16, 2018 6:45 pm
Forum: Personal Consumer Issues
Topic: Should I be paying $1300/yr. for under/uninsured motorist protection?
Replies: 99
Views: 7121

Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

What if he had been very, very seriously injured? Our medical insurance would have paid. Suppose you have an HDHP with a $6K deductible - who would pay that? Suppose you needed months in rehab - How much would your health insurance pay. Suppose you suffer a permanent disability as a result of the a...
by Wagnerjb
Fri Feb 16, 2018 6:43 pm
Forum: Personal Consumer Issues
Topic: Should I be paying $1300/yr. for under/uninsured motorist protection?
Replies: 99
Views: 7121

Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

Let's say you have a passenger in your car, and that passenger is permanently disabled in an accident that was not your fault. Your insurance will cover your passenger's medical bills up to a certain point (assuming you pay for that coverage), but it will not cover lost income, pain and suffering, ...
by Wagnerjb
Fri Feb 16, 2018 12:44 pm
Forum: Personal Consumer Issues
Topic: Should I be paying $1300/yr. for under/uninsured motorist protection?
Replies: 99
Views: 7121

Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

dm200 wrote:
Fri Feb 16, 2018 12:21 pm


What if he had been very, very seriously injured?
Our medical insurance would have paid.
by Wagnerjb
Fri Feb 16, 2018 11:19 am
Forum: Personal Consumer Issues
Topic: Should I be paying $1300/yr. for under/uninsured motorist protection?
Replies: 99
Views: 7121

Re: Should I be paying $1300/yr. for under/uninsured motorist protection?

I don't think I need this - any advice on cutting this from our policy? I canceled my under/uninsured motorist coverage quite a few years ago. My logic was that a) I have good medical coverage for my family and b) Comprehensive (or is it Collision?) will cover my car if it is damaged. A few months ...
by Wagnerjb
Thu Feb 15, 2018 9:15 am
Forum: Personal Finance (Not Investing)
Topic: Employer Seems Clueless About HSAs and Taxes
Replies: 4
Views: 520

Re: Employer Seems Clueless About HSAs and Taxes

Keep in mind that the amount withheld from your paycheck is actually referred to as "employer contribution" by the IRS. This was very confusing to me as well. If the amounts withheld from your paycheck are properly excluded from your W2 wages, then I believe you should input the HSA contributions as...
by Wagnerjb
Wed Feb 14, 2018 2:57 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage qualifying when retired
Replies: 6
Views: 745

Re: Mortgage qualifying when retired

Rick: I will share with you my experience and maybe it will help you see what might happen in your case. I built a home right before I retired and I qualified for the mortgage with my income. However, about 18 months after I retired I refinanced the mortgage. It wasn't nearly as easy to qualify at i...
by Wagnerjb
Mon Feb 12, 2018 9:37 pm
Forum: Personal Finance (Not Investing)
Topic: Question for TaxAide Volunteers
Replies: 10
Views: 864

Re: Question for TaxAide Volunteers

I was working at one of our sites on Saturday and was surprised to be able to get carryover data on taxpayers who had been to another site (different SIDN and EFIN) last year. I am pretty sure that happened for a taxpayer I handled last week. My take is that the "global" carryover of data is active...
by Wagnerjb
Sat Feb 10, 2018 3:54 pm
Forum: Investing - Help with Personal Investments
Topic: has anyone here tried to engineer a low-income-generating portfolio?
Replies: 18
Views: 1460

Re: has anyone here tried to engineer a low-income-generating portfolio?

Fred: first of all, the strategy makes sense in general and I see nothing wrong with “managing” one’s income to optimize government benefits. We all do this. As a matter of fact, I am “managing” my 26-year old college student’s income to get the same full ACA subsidy that you are focused on. However...
by Wagnerjb
Sat Feb 10, 2018 1:46 pm
Forum: Investing - Help with Personal Investments
Topic: has anyone here tried to engineer a low-income-generating portfolio?
Replies: 18
Views: 1460

Re: has anyone here tried to engineer a low-income-generating portfolio?

Fred: a few questions for clarification of your situation. Should we assume the $5MM portfolio is entirely in after-tax accounts? Should we assume you and Wilma won't be drawing Social Security during this strategy? Should we assume that you and Wilma are not subject to RMD's from any IRA or 401k du...
by Wagnerjb
Sat Feb 10, 2018 10:59 am
Forum: Investing - Theory, News & General
Topic: Funds without dividends
Replies: 17
Views: 1373

Re: Funds without dividends

Look for funds with the words "tax managed" in the fund name. Vanguard has several of them. I think (but I'm not sure) those are mostly managed through minimizing capital gains (although I assume they probably try to minimize dividends as well). But the yield is still not that much better than your...
by Wagnerjb
Thu Feb 08, 2018 8:56 am
Forum: Investing - Help with Personal Investments
Topic: Previously Incorrect Form 8606
Replies: 2
Views: 267

Re: Previously Incorrect Form 8606

I would amend the 2016 tax return if you determine it was incorrect. I had a similar issue with an incorrect form 8606 a few years ago (prepared by KPMG) and I insisted that they amend the return. Like your situation, there was no bottom line tax impact of the error.....but I did not want this to po...
by Wagnerjb
Wed Feb 07, 2018 11:31 am
Forum: Personal Finance (Not Investing)
Topic: would this be considered a wash sale?
Replies: 6
Views: 351

Re: would this be considered a wash sale?

Using the example from Scottrade, if you sell both of the lots you bought there would be no wash sale. I am not positive of the answer here, but I wonder if you also sold the shares in your wife's Roth whether there would be no wash sale? Obviously, selling the shares in your wife's Roth has no tax ...
by Wagnerjb
Tue Feb 06, 2018 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: Accelerated RSU vesting, FICA taxes
Replies: 9
Views: 2294

Re: Accelerated RSU vesting, FICA taxes

I am in this predicament. A large number of shares just vested because I recently turned 55(retirement age) Even though they vested they will not actually be distributed. The will distribute over the next 3 years. In addition to paying Medicare and the surtax I have to pay almost 5 % in local taxes...
by Wagnerjb
Sat Feb 03, 2018 3:17 pm
Forum: Personal Finance (Not Investing)
Topic: Help calculating 2018 kiddie tax
Replies: 33
Views: 1785

Re: Help calculating 2018 kiddie tax

The worksheet I linked is the exact same worksheet as in IRS Publication 17 (page 30). It is worksheet 3.1 and it applies to the OP's situation. Best wishes. It does not actually apply to the OP's situation in any meaningful bottom line way, because the taxes calculated on Form 8615 effectively ove...
by Wagnerjb
Sat Feb 03, 2018 2:40 pm
Forum: Personal Finance (Not Investing)
Topic: Help calculating 2018 kiddie tax
Replies: 33
Views: 1785

Re: Help calculating 2018 kiddie tax

I believe if he did qualify as my dependent he would also be unable to claim the AOTC Not true. If he qualified as your dependent, you would have to not claim him on your tax return. In that case, the child may claim the AOT. Note that nobody claims his exemption in that case. You are entitled to i...
by Wagnerjb
Sat Feb 03, 2018 2:09 pm
Forum: Personal Finance (Not Investing)
Topic: Help calculating 2018 kiddie tax
Replies: 33
Views: 1785

Re: Help calculating 2018 kiddie tax

All income(earned and unearned) is used for the support test to determine if the standard deduction can be taken. So for my son, the standard deduction can be used but the kiddie tax will apply. Yes, you are correct that the dependency test does not strictly used earned income. It also uses amounts...
by Wagnerjb
Sat Feb 03, 2018 2:02 pm
Forum: Personal Finance (Not Investing)
Topic: Help calculating 2018 kiddie tax
Replies: 33
Views: 1785

Re: Help calculating 2018 kiddie tax

What you are both missing are the following. From the Form 8615 Instructions on who must file: 3c. Was a full-time student at least age 19 and under age 24 at the end of 2017 and didn’t have earned income that was more than half of the child's support. From Form 1040 Instructions, Standard Deductio...
by Wagnerjb
Sat Feb 03, 2018 12:00 pm
Forum: Personal Finance (Not Investing)
Topic: Help calculating 2018 kiddie tax
Replies: 33
Views: 1785

Re: Help calculating 2018 kiddie tax

All income(earned and unearned) is used for the support test to determine if the standard deduction can be taken. So for my son, the standard deduction can be used but the kiddie tax will apply. Yes, you are correct that the dependency test does not strictly used earned income. It also uses amounts...
by Wagnerjb
Thu Feb 01, 2018 4:00 pm
Forum: Investing - Theory, News & General
Topic: Household Assets 1972-1982
Replies: 10
Views: 1801

Re: Household Assets 1972-1982

sjwoo wrote:
Thu Feb 01, 2018 10:26 am

What did investors do in the 1970s to make money? Were there any asset classes that did make money?
Luckily, most investors invest for 4 or 5 decades, so one lousy decade doesn't derail their retirement.
by Wagnerjb
Wed Jan 31, 2018 11:12 pm
Forum: Investing - Theory, News & General
Topic: Quantifying diversification benefit
Replies: 6
Views: 716

Re: Quantifying diversification benefit

Here is how I have done the analysis, in the context of higher risk in a portfolio of stocks. I used the standard deviations ("SD") from this article by Surz and Price on small portfolios. http://ppca-inc.com/pdf/DiversByNumbers.pdf In your situation, maybe your single stock has a SD of 45%. A mutua...
by Wagnerjb
Wed Jan 31, 2018 9:00 am
Forum: Investing - Theory, News & General
Topic: Household Assets 1972-1982
Replies: 10
Views: 1801

Re: Household Assets 1972-1982

Keep in mind, treasuries were yielding more than 14% in 1982. On the face of it, your comment makes it sound like a 14% rate on Treasuries was an outstanding deal. But you left out inflation and taxes. Inflation was in the 10-11% range at that time and taxes were higher than today. Buying a 14% Tre...
by Wagnerjb
Tue Jan 30, 2018 11:36 am
Forum: Investing - Help with Personal Investments
Topic: Divesting Company Stock Options
Replies: 9
Views: 604

Re: Divesting Company Stock Options

1) I am thinking about cashing a larger portion so that they are worth no more than 5% of portfolio. Does that make sense to do all at once (resulting in a sale with 100k gain before taxes)? I read some of your earlier posts and noted that you are in your 30's. And I also note that a gain of $100k ...
by Wagnerjb
Tue Jan 30, 2018 10:38 am
Forum: Personal Finance (Not Investing)
Topic: Comparing two job offers
Replies: 7
Views: 566

Re: Comparing two job offers

There is a HUGE difference in total compensation between the two employers. How much do you hate the longer commute? How much do you love the prospective location? Another factor is my decision would be my age. If you are 55 and going to work another 5 years, the commute and location mean a whole lo...
by Wagnerjb
Tue Jan 30, 2018 10:33 am
Forum: Personal Finance (Not Investing)
Topic: Opportunity to buy company stock at a discount
Replies: 30
Views: 1723

Re: Opportunity to buy company stock at a discount

At this particular company, I could defer up to $6,000 a year to purchase shares of the company stock at a 15% discount. I would be required to keep the stock for a minimum of 6 months, and then could sell at list prices. It sounds like an easy $900 a year, with minimal risk if you sell repeatedly ...
by Wagnerjb
Mon Jan 29, 2018 12:09 pm
Forum: Investing - Theory, News & General
Topic: Foreign Tax-Please check my math
Replies: 18
Views: 1670

Re: Foreign Tax-Please check my math

Calculating US taxes(used new 22% tax rate): and Subtracting Foreign tax credit: ............. 15% ... 22%... total ..%total ..net tax/Div FPMAX ... . 310 ... 292 ... 602 .. ... 19% ... 8.59% IEUR ... .. 1193 ... 117 ... 1310 ...... 8% ... 1.38% IPAC ........ 539 ... 402 ... 941 ...... 26% ... 7.41...
by Wagnerjb
Sat Jan 27, 2018 11:11 am
Forum: Investing - Help with Personal Investments
Topic: Suggestions to Improve My Portfolio?
Replies: 6
Views: 419

Re: Suggestions to Improve My Portfolio?

Welcome to the Boglehead forum. Here are a few thoughts in response to your questions: 1. In your shoes, I would consider selling the tax inefficient funds as long as I could pay only 15% on the long term gains. At some point, your AGI will reach $250k and you will start paying 18.8% - which I would...
by Wagnerjb
Wed Jan 24, 2018 12:14 pm
Forum: Personal Finance (Not Investing)
Topic: Support test for college student filing Indepently
Replies: 32
Views: 1057

Re: Support test for college student filing Indepently

I believe another poster in this thread has mentioned that the AOT can only be taken 4 times, and has also highlighted that a typical college student will be in school for parts of 5 tax/calendar years. I used a strategy similar to that discussed here (gifting highly appreciated shares to child, not...