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So I'm living with my girlfriend, and I'm providing all of the income. From what I can see, I can claim her as a dependent if: She's lived with me for the entire 2010 calendar year I provide more than 50% of the income She makes less than the standard deduction (none, in fact) She's not claimed as a dependent by anyone else She's a US citizen She has no joint returns with anyone No state or local laws against cohabitation She qualifies for all of these. Two questions: Does she have to file, with no income? I already filed my return, so I'll have to file an amendment...will this complicate anything, especially with the former question?
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Mar 9, 2011 22:48
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| # ¿ Apr 28, 2024 22:32 |
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Taxact only costs 18 to use and file one federal/one state.
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Apr 7, 2011 21:12
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tolerabletariff posted:Yeah that article explains exactly what I'm talking about, actually. We've been closer to the $300k area anyway but earlier this year saw a ~50% increase so I might have to reform my "lower upper middle class" mindset. But tuition for two kids at Ivy/private schools still eats up $100k out of that annually, obviously we don't get a cent in aid. (I'll warn you, people generally see people like those in that article as horrifically snobbish out-of-touch upperclass-people, not middle class struggling to get by)
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Jun 5, 2012 15:53
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AbbiTheDog posted:They can change them whenever they feel like it. Probably can't change them after April, though? "Everyone who paid taxes last year, we want another 100 bucks"?
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Dec 14, 2012 19:11
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Gift tax question time! I forget if I've asked this before. We're looking at houses, and a set of parents are planning on helping us out with money, on the order of 30k+. Now, they can give it to us as a gift, but have to: fill out a form to make sure the bank will know that it's a gift, not a loan, and then it can be used towards the down payment. Or, they can give it to us as a gift, but we don't use it towards the down payment (we can handle it without) and then just use the money towards paying off the mortgage faster. Or, they can structure it in smaller amounts and give it to us over the course of years. Does that sum it up? What are the numbers involved that require structuring, or that form? I'm pretty sure that regardless, there's no tax implications on our end, just on the givers' end. Correct?
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Jan 17, 2013 19:44
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Above 14k a year (each), the gift tax implications kick in. What are those?
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Jan 17, 2013 22:15
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scribe jones posted:The amount over the $14k limit then comes out of the donor's lifetime gift/estate tax exemption, currently sitting at $5.25mm per person. If they then exhaust that exemption, any other gifts will be taxable. That's what I thought. Which is, for all intents and purposes, infinite, for these sorts of purposes. Thanks! They would just note this on their tax return, and it would put a teensy dent into that number, and that's it.
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Jan 17, 2013 22:35
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furushotakeru posted:They would actually need to file a separate gift tax return, but otherwise yes. However, they can potentially give you and your other person up to $56K in 2013 without triggering the need to file a gift tax return. I thought you said it was just 2k for the spouse? Regardless, very helpful, thanks so much!
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Jan 18, 2013 02:57
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furushotakeru posted:You said they were giving you about $30K, so it was $14K to you from Mom and $14K to you from Dad and $2K to spouse = $30K. Aha, gotcha. Thanks!
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Jan 18, 2013 19:38
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ROTH IRA does not reduce your taxable income. Get married.
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Feb 4, 2014 15:34
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DholmbladRU posted:Thanks, what about a traditional? IRA Should, yeah. That'll reduce your taxable income by the 0-5500 you put in.
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Feb 4, 2014 15:43
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DholmbladRU posted:Ah, I think the problem was I did not check 'user did not have company retirement account(or similar wording)'. That flips it and I get a refund. Should be putting into an IRA anyways. Bear in mind, you're just deferring taxes, you're not removing them. You do realize that, right? The pretax retirement dollars, you'll still have to pay taxes on them, just down the road when you're taking money out for retirement. Not saying you shouldn't be putting money away, you definitely should, just don't treat pretax retirement benefits as tax avoidance, just deferral. Plus, of course, your income should be lower so maybe you will pay less tax.
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Feb 4, 2014 15:50
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DholmbladRU posted:Yeah with traditional IRA you will pay tax when that money is pulled out and it will be at the current tax rate that you are at? Yeah. Picture this: your marginal rate right now is probably 25%. So, the last 5500 of your income is being taxed at 25%, or about 1250 bucks. If you put that away into a trad IRA, you don't pay those taxes now, and let's say in 40 years you take out 20000 a year because that's how much you need to live on (random number, you'll need more because of inflation, but we're getting into who knows territory here, maybe they'll raise tax rates too). Then, your marginal rate is 15%, so instead you only have to pay 15% of that 5500, or about 800 bucks. So, does that $550 worth of taxes really matter, over the course of 40 years? Probably not. Save for retirement because you need money for retirement and compound returns, not because of tax reasons. But if you're saving for retirement *anyway*, may as well get some tax benefit for it too. As a note, ROTH IRA means you pay your tax rate now, but *nothing* on it or its gains when you take money out for retirement. So if the government raises tax rates to 30% for your bracket, say, then you'd be saving money that way! Not knowing which way it'll go means you should diversify, i.e. have some in traditional 401k or IRA, and some in ROTH IRA, which is generally the advice for the long term retirement thread which you should probably read all of. 
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Feb 4, 2014 16:09
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Rule of thumb: never, ever, super ever withdraw early from retirement to buy things. Save up more, leave the retirement stuff where it belongs.
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Feb 4, 2014 16:30
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So we executed a bunch of options and restricted stock units this year. We were taxed when it got them through payroll (SS, income, all the normal tax withholdings). But Fidelity just sent us 1099-B's with 0 under tax withheld and the numbers seems to be similar to (but not exactly?) the amounts we received after taxes. Also a Supplemental Information. Which says the Supplemental Information wasn't reported to the IRS (and the 1099-B's were) and on that, the adjusted gains/losses show negative. Whereas the 1099-B's are showing a shitton of gains. How do we report all this? We usually use TaxACT. Are we going to get double-taxed if we just input all the poo poo they said they reported? edit: Looking over all the numbers, it looks like the primary issue we're seeing is that the cost basis on the 1099B is low or 0, whereas the correct number is listed on the supplement. Do we just...put that number in for the cost basis instead of what Fidelity reported to the IRS? Or is there some other way of handling this? silvergoose fucked around with this message at 00:37 on Jan 24, 2015 |
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Jan 23, 2015 22:58
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Hmm. Alright, so need to wait for said statement of taxable income and/or bug my accountant department for it. Do I input the 1099B at all? Input it, but change the cost basis? Or...what? Oh, and thanks *very* much, really appreciate it.
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Jan 24, 2015 02:05
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fordan posted:I believe my Fidelity statement included the taxable income for each transaction in that extra data part of their combined form, so it may be there for yours as well. Right, what I'm asking is what I *do* with that in tax software. Just in whichever W2 box, assuming it's not in my W2 that I have yet to get?
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Jan 24, 2015 02:42
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furushotakeru posted:You can pretty safely just input the basis as $10-20 higher than the sale price (since commissions are excluded from gross proceeds on a 1099-B) for each sale. Or just wait to get a statement of taxable income to be sure. Fantastic, thank you lots. I have the exact numbers for how much it was worth at time of release. My assumption is that tax act will fill out the appropriate form (schedule d) as part of filling out the 1099 so I should be all set and won't have to worry about the IRS giving us crap about the tax return having different numbers than the stuff Fidelity reported. Thanks again!!
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Jan 24, 2015 13:53
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Madbullogna posted:There's nothing for TT, H&R, or some other random online filing software to really ask you about for your Roth IRA. You were taxed on the money already. You're all set, and won't see any tax forms from your provider until you have a distribution event. Pretty sure taxact asks, at least.
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Mar 5, 2015 13:26
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As a not preparer who already did his taxes, any specifics as to why this year sucks balls?
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Mar 13, 2015 05:08
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Bisty Q. posted:Tax software will handle this for you; you need to adjust the basis for your RSU sales to account for the income reported on your W-2. The 1099-Bs used to do this for you and then the IRS made them stop because gently caress you. Yeah I'm still confused why that happened. Is it just because turbotax is genuinely evil?
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Feb 25, 2016 22:50
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Admiral101 posted:Yeah this is an incredibly complicated question and outside the scope of the thread. Would depend on whether the cap account is on tax basis on gaap, whether there's outside basis, among other things. Yeah as a layperson that sounded like "I should really hire a really good accountant and/or lawyer to make sure this is done right".
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Apr 9, 2016 03:29
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Zero VGS posted:Uhhh, so PayPal just sent me 1099-K which I've never gotten from them before. It says I'm receiving it, and they're furnishing it to the IRS, because it meets the criteria of over $20k in sales and over 200 transactions. But it clearly says on the paper that I've only done $16k and 41 transactions. So why the gently caress are they doing it anyway? It's all just yard-sale type poo poo I've sold along the year, such as poo poo I bought on eBay and turned out I didn't need and sold at broke-even, more or less. Do I seriously have to explain 41 stupid things to the IRS now? Do you run a fb financial group lol someone on there was complaining bitterly about it. I'm interested in the answer so I can send it along.
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Feb 5, 2018 22:11
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Get in the game
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Oct 5, 2018 04:31
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Yeah basically the only time MFJ isn't absolutely worth it tax wise is if you have two earners that are kind of right below a bracket increase, so combining makes some of the combined income above that line since it's not a straight 2x. The tax system was written to incentivize women staying home and not earning any income and taking care of the kids.
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Jan 18, 2019 20:09
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How much did you pay in taxes last year vs this year? Strictly speaking, how much your refund/bill is has no actual bearing on that question. (they mucked with the withholdings to make peoples' paychecks look higher, producing this exact effect, which is why I ask)
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Mar 21, 2019 19:28
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black.lion posted:My understanding is that it's legit, but maybe a little janky/effortful - I've not used it but have a few clients who have asked about it and that's their opinion. Intuit hid their free file option from Google despite that being the entire reason the irs was leaving them alone? Pure greed.
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Jan 24, 2020 18:00
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DaveSauce posted:...why do you think the tax system remains complicated, despite massive calls for simplification and politicians promising to help? Oh I know all that. I didn't know that they had agreed to give people free filing with some limits, and then work hard to make sure people didn't even see those options.
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Jan 24, 2020 19:12
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Ciaphas posted:As a software dev and YOSPOS regular I should have remembered the fundamental truth that Computers And Programming Are Terrible, forget Congress' "help". Computers And Programming Terrible Congress's Help Ah I guess that's what it stands for?
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Feb 15, 2020 15:55
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| # ¿ Apr 28, 2024 22:32 |
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H110Hawk posted:Using freetax USA if you have espp stuff is inviting a huge tax liability. TurboTax actually has a workflow for it that gets it all correct, freetaxusa you have to know how to adjust it all yourself and even some paid cpa preparers get that wrong. Must it be TurboTax or it's just this double counting thing? I don't have my tax docs for the year, obviously, but it feels pretty doom and gloom to say that TurboTax is that important. Is the info at https://thefinancebuff.com/espp-sales-adjust-cost-basis-freetaxusa.html sufficient to go on with? I don't want to have that extra tax liability for no reason, but also really, really hate TurboTax a lot.
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Nov 27, 2023 00:12
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