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I'm an H1B holder. Last September I got a letter from the IRS saying that there was an error in my 2018 filing and I owed them about 2.5k. I will be quitting my job and leaving the US by the end of this year. If there is a similar error in my 2019/2020/2021 filing how is IRS going to let me know? I did not get any emails just a physical letter...
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Feb 11, 2021 00:26
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We got married in May and both make about $60k each, changed both our W-4s to "Married filing jointly" in May. We have one dependent who we claim the child tax credit on. I had one W-2 and she had 3. Up until May we filed as single. I did our taxes today, claimed standard deduction, and at the end of it we owe $1,300. Should have paid $13k in taxes but we paid $9,000 (owing $1300 is after the child tax is used up and my second stimulus payment is used up, because I never got it after changing banks and moving homes). It seems to come from her end, as my W-2 shows ~$5,500 in taxes paid, and her third W-2, which is her current job she accepted in April, is for ~$47k in wages with $1,900 taxes paid. We are hoping that since now our W-4s are starting this year as married filing jointly, we won't run into this again next time. What happened to make us owe this time, though? I thought we were doing everything correctly.
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Feb 11, 2021 00:40
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UnfurledSails posted:I'm an H1B holder. Last September I got a letter from the IRS saying that there was an error in my 2018 filing and I owed them about 2.5k. I will be quitting my job and leaving the US by the end of this year. If there is a similar error in my 2019/2020/2021 filing how is IRS going to let me know? I did not get any emails just a physical letter... There's a form for that: https://www.irs.gov/forms-pubs/about-form-8822
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Feb 11, 2021 00:44
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Thanks everyone, i called someone else who sounded very knowledgeable on the phone and got quoted 400, much better
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Feb 11, 2021 00:56
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Fun Times! posted:We got married in May and both make about $60k each, changed both our W-4s to "Married filing jointly" in May. We have one dependent who we claim the child tax credit on. I had one W-2 and she had 3. Up until May we filed as single. I did our taxes today, claimed standard deduction, and at the end of it we owe $1,300. Should have paid $13k in taxes but we paid $9,000 (owing $1300 is after the child tax is used up and my second stimulus payment is used up, because I never got it after changing banks and moving homes). When you've got multiple W-2s there's always a good chance you'll get hosed because each payroll department is just blindly following the charts which assume you're getting a standard deduction. Which you are, just not 3. So the end goal the tables tell them to shoot for is lower than your actual income will be. If you're stable this year you likely will be closer to where you should be.
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Feb 11, 2021 01:35
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UnfurledSails posted:I'm an H1B holder. Last September I got a letter from the IRS saying that there was an error in my 2018 filing and I owed them about 2.5k. I will be quitting my job and leaving the US by the end of this year. If there is a similar error in my 2019/2020/2021 filing how is IRS going to let me know? I did not get any emails just a physical letter...
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Feb 11, 2021 02:26
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Peyote Panda posted:The IRS only communicates these issues by physical mail for security purposes, so you wouldn't be getting any emails. Was this a CP2000 notice or something else? It was a CP2000. I just wish there was any other way I could have found out, like checking a website or something. It would be more secure to get emails since I'm pretty much constantly on the move now, and probably for the next few years. I switched everything I can think of to paperless systems so I was hoping I can do the same with IRS, especially since I will keep my US bank and brokerage accounts and keep paying capital gains taxes even after I leave.
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Feb 11, 2021 02:37
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UnfurledSails posted:It was a CP2000. So if you're concerned that the same issue with your 2018 return might come up in future years, the first step would be to see what documentation caused the issues on the 2018 return and get your 2019 return forms as well as getting a 2019 Wage & Income transcript from the IRS. The latter should now show all of the income documents that would have been reported under your social security number, so you can compare everything to see if a similar issue could arise and file an amended 2019 return if needed. If you're able to set up an account on IRS.GOV under the "Get Your Tax Record" option, a W&I transcript should be one of the ones available. As far as the address issue goes, there really isn't a paperless option for the IRS. They are working on making more of the notices they send out available through the transcript system, but you'd still have to check it manually. There are two options you can do if you're expecting to move a lot. First is filing regular change-of-addresses with the USPS and form 8822 with the IRS; IRS mail usually gets forwarded if there's a mail-forwarding set up with USPS and sometimes that system will even update your address with the IRS, though the communication is inconsistent on that, while the 8822 form (which can be downloaded at IRS.GOV as well) can be mailed in to directly update your address with the IRS. You can call in to do it as well but expect long hold times. Second is to change the mailing address to something consistent such as a family member's home or something else where the address stays the same and you can trust the people there to let you know if something comes in. The IRS doesn't particularly care if it's your actual current residence or anything for address of record purposes, they just want an address where you can reliably receive any letters or notices.
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Feb 11, 2021 03:13
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Regarding the Child Tax Credit, assuming Biden's relief packages passes as proposed, would that mean it makes sense to wait till after it does to file (assuming it happens before April 15th)? I usually get the full refundable amount credited and having it increase to $3,000 would be nice.
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Feb 11, 2021 20:12
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Filed for my 2020 taxes a couple of weeks ago and decided to check my transcripts. Noticed I had two code 290 "Additional tax assessed" but with $0.00 for the amount. Different dates on each. Any idea what this could mean?
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Feb 12, 2021 01:52
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Magic City Monday posted:Regarding the Child Tax Credit, assuming Biden's relief packages passes as proposed, would that mean it makes sense to wait till after it does to file (assuming it happens before April 15th)? I highly doubt any of the tax code changes will be retroactive to 2020. MrMidnight posted:Filed for my 2020 taxes a couple of weeks ago and decided to check my transcripts. Noticed I had two code 290 "Additional tax assessed" but with $0.00 for the amount. Different dates on each. Who knows. You may get a letter eventually. Also the IRS hasn't actually accepted your return yet so I don't know what you expected. E-filing officially opens tomorrow. Some test returns were submitted yesterday and today. Turbotax etc lied to you when they said they submitted it, it's just been hanging in their cloud till the MEF is open.
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Feb 12, 2021 03:15
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MrMidnight posted:Filed for my 2020 taxes a couple of weeks ago and decided to check my transcripts. Noticed I had two code 290 "Additional tax assessed" but with $0.00 for the amount. Different dates on each. (The code 150 would be your tax balance on your tax return. It's probably not there yet since the IRS doesn't even begin processing filed returns until tomorrow except for a few random test cases, and the 290 would normally reflect a subsequent adjustment, but in the specific case described above it would be those stimulus refund releases. We just put them on the 2020 tax year because they were effectively advances on the Recovery Rebate Credit.)
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Feb 12, 2021 03:22
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Epi Lepi posted:Sounds high to me or my office really needs to raise our rates. If she's working out of her home and not a real office run away at that price. Speaking as somebody who does plenty of PA returns, can't agree with that "not too bad" given they have their own little way of doing every drat thing especially with what they consider income, though the local PA returns combine that with being run by a bunch of collection agencies instead of government bureaus, with the inevitable headaches THAT brings. I will admit $700 was kind of on the high end though, the second price is a lot more like what I'd expect. Although maybe the first preparer had a high price because they're just grumpy, God knows getting up before the crack of dawn a lot to shovel snow (and keep straining my hurt back, gah) so I can do another long day is starting to make me tired. Admittedly I'm kind of swamped since the office is down a few preparers thanks to Covid and other health issues. Hope the rest of you preparers are staying healthier and saner! Epi Lepi posted:I highly doubt any of the tax code changes will be retroactive to 2020. It'd be nice to NOT have retroactive crap, think most of the last few tax bills including CARES have had "corrections" to previous screwups in prior bills, some of them retroactive too. Can we please write them right the first time, government folks? EDIT: Anybody get hit with weird "you can't post too soon" messages in the forum/this topic? Got bounced first time I posted this, I hadn't even posted anything else today anywhere on SA. Tired AND gaslit about my posting now, I swear... MadDogMike fucked around with this message at 06:05 on Feb 12, 2021 |
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Feb 12, 2021 05:59
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Peyote Panda posted:Were there amounts listed for your EIP (stimulus) payments and no TC 150? If so, the two 290s for .00 were the transaction codes input to release your stimulus payments. I don't have anything else like what you're describing. Just the two 290 codes with zeros for amount. Thanks for the info!
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Feb 12, 2021 14:17
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MrMidnight posted:Filed for my 2020 taxes a couple of weeks ago and decided to check my transcripts. Noticed I had two code 290 "Additional tax assessed" but with $0.00 for the amount. Different dates on each. Who knows? I know! Those are the stimulus payments.
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Feb 12, 2021 16:12
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MrMidnight posted:I don't have anything else like what you're describing. Just the two 290 codes with zeros for amount.
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Feb 12, 2021 16:25
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MadDogMike posted:Can we please write them right the first time, government folks? lol, just.... lmao
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Feb 12, 2021 17:53
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Peyote Panda posted:Just as a final verification, is one of the dates back around April or May of 2020 and the second date around December 2020 or January 2021 (or otherwise around the dates you received your stimulus payments)? That would also be consistent with the stimulus payments. Yep, April 27, 2020 & Jan. 18, 2021. Thanks again!
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Feb 12, 2021 18:14
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black.lion posted:lol, just.... lmao I can dream! Especially when the menthol fumes from all the muscle rubs I've put on my back are melting my brain!
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Feb 12, 2021 22:47
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Anyone else having problems logging into Free Fillable Forms? I guess I forgot to add my SSN to my W2 but now when try to log in to fix it the 'Sign In' button changes to 'Signing In' for a fraction of a second then back to 'Sign In' and nothing happens. Same thing if I try to go through the 'forgot my password' route.
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Feb 15, 2021 23:27
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Working fine for me, trying clearing cookies. Now if only they would add Form 8995 so I could submit.
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Feb 15, 2021 23:38
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Xenoborg posted:Working fine for me, trying clearing cookies. Now if only they would add Form 8995 so I could submit. Just tried a private browser without luck  Maybe I'll just fill it all out again. E: Tried safari and it worked. How loving dumb. Boot and Rally fucked around with this message at 23:47 on Feb 15, 2021 |
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Feb 15, 2021 23:44
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If I did a cashless exchange of ISOs during a secondary offer last year it should show on my W-2 correct? Or should I be looking for a 1099 of some sort? Asking because I got a 3921 in the mail but not a 3922. TurboTax is showing I owe the feds a small sum which seems correct.
cheese eats mouse fucked around with this message at 19:24 on Feb 16, 2021 |
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Feb 16, 2021 19:21
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Stupid H&R Block, I entered my both wife's and my W2 in under my name at first, realized my mistake, corrected it, moved on. Turns out that didn't actually make it realize they were two people, so it gave me a massive "Excess Social Security" credit making me think I was getting a huge return. Ran the numbers through Credit Karma, got that I owed thousands instead. Deleted and re-entered the W2s correctly in H&R Block and now the two services match. Uggghhhhh
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Feb 17, 2021 19:21
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Academician Nomad posted:my both wife's Married Filing Poly
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Feb 17, 2021 22:54
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black.lion posted:Married Filing Poly This is the future liberals want
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Feb 18, 2021 04:53
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So I started doing a backdoor Roth in 2018, 2019, 2021. Apparently I've done this wrong every year on Turbotax because my cost basis is always 0. Do I have to amend each year's return, or can I adjust the cost basis this year with an explanation of why its different from last year?
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Feb 19, 2021 14:26
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IIRC, your basis would be 0 unless you're an idiot like me and you wait until after the end of the calendar year to do it, at which point it becomes an annoying clusterfuck.
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Feb 19, 2021 14:32
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FateFree posted:So I started doing a backdoor Roth in 2018, 2019, 2021. Apparently I've done this wrong every year on Turbotax because my cost basis is always 0. Do I have to amend each year's return, or can I adjust the cost basis this year with an explanation of why its different from last year? Pretty sure as long as you’ve been reporting the backdoor Roth correctly on Form 8606, you can change the Roth basis to the correct number. I assume TurboTax is storing the basis information for if you take an early distribution from the Roth so it knows how much is taxable. Take with a grain of salt, I don’t use TurboTax myself obviously but in general there’s no filing your Roth basis directly with the IRS, they get that reported by the account manager on 5498.
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Feb 19, 2021 23:01
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Trying to figure out what tax software to use, if anyone has any advice. Have the following in 2019: -Income (W2) -Mutual fund Investment income (did not sell stocks) -Form 3921 (exercise of an incentive stock option) -Paid house mortgage Mainly, just trying to figure out what I need from either Turbo Tax (Deluxe or Premier), H&R (Deluxe or Premier), or otherwise, that works with Form 3921. In the past few years, I used H&R Block Deluxe, but I am not sure this year what is sufficient. Thoughts?
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Feb 21, 2021 00:32
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Not sure you'd need anything, those are all pretty straightforward. edit: on second thought disregard that, I have a screwed up perspective on individual tax issues. Someone else will be able to provide better guidance. Discendo Vox fucked around with this message at 03:37 on Feb 21, 2021 |
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Feb 21, 2021 03:21
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logis posted:Trying to figure out what tax software to use, if anyone has any advice. Have the following in 2019: Form 3921 is the most unusual part but its an informational form only so who cares unless you sold the stock this year. Keep it, remember that its what will tell you your correct basis, though a lot of the financial companies are pretty good about that nowadays so you may not even need it. Rest of the stuff is easy peasy you probably won't gently caress it up.
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Feb 21, 2021 03:59
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logis posted:Trying to figure out what tax software to use, if anyone has any advice. Have the following in 2019: Pretty sure when I checked for someone else recently the Deluxe for H&R did include all those items (W-2, dividends/interest, possible itemized deductions) so I think your usual choice will work, not sure if TurboTax is similar naming but if you use that one just check it covers the items I listed. As mentioned, the 3921 is important when the stock is sold.
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Feb 21, 2021 15:27
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Hey all, finally getting around to doing my taxes. In 2019 I had about $1000 short-term capital loss from stock gambling. I had no long-term capital losses or gains because I didn't sell any LT holdings. My understanding was that I could carry over my 2019 losses and compensate short term losses against short term gains, however if I'm reading the instructions right then if I had no long term capital gains in 2019 it is impossible for me to carry over short term losses because the way the instructions work, you end up canceling out the losses against themselves. I don't know if that makes any sense.
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Feb 21, 2021 21:34
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Ur Getting Fatter posted:Hey all, finally getting around to doing my taxes. Are you sure you didn't deduct it all in 2019? https://www.irs.gov/newsroom/capital-gains-and-losses-10-helpful-facts-to-know-0
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Feb 21, 2021 21:36
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H110Hawk posted:Are you sure you didn't deduct it all in 2019? This is probably it, I don't know why I didn't consider the possibility of my 2019 losses being applied against my 2019 income  Thanks! dpkg chopra fucked around with this message at 23:46 on Feb 21, 2021 |
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Feb 21, 2021 23:43
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How did we end up that the first real line on the 1040 after personal info is this:quote:At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?
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Feb 22, 2021 00:00
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Another dumb tax instructions questions: Schedule 3, line 12e, says "Deferral for certain Schedule H or SE filers (see instructions)". The instructions say "If you qualify, the amount you may defer is figured in the following worksheet." Line 11 of the the worksheet says: "11. Enter the amount you reported on Schedule 3, line 12e".  Any ideas on how to figure this out?
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Feb 22, 2021 04:31
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smackfu posted:How did we end up that the first real line on the 1040 after personal info is this: The IRS heard about this whole 'bitcoin' thing and wants a piece of it.
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Feb 22, 2021 04:54
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sullat posted:The IRS heard about this whole 'bitcoin' thing and wants a piece of it. In theory even barter transactions are supposed to pay income tax, so using a virtual currency doesn’t get you out of it either. Yet people weren’t reporting virtual currency stuff for taxes (almost like there’s a bunch of libertarians who don’t want to pay taxes that use the stuff a lot...) so the IRS started getting more pushy about chasing it down, including a required question so nobody can claim ignorance. Ur Getting Fatter posted:Another dumb tax instructions questions: That’s if you want to avoid paying your Social Security/Medicare taxes until next year, you can put that amount there. Mind you, it’s kind of a dumb idea so I can’t recommend it unless you really can’t afford that stuff now but will this time next year along with that year’s taxes.
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Feb 22, 2021 16:50
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