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KOTEX GOD OF BLOOD posted:I'm planning to just send the check on Monday if I don't get the pin by then, but I assume with the holidays and the backlog at the IRS they won't process it right away and I should expect nasty letters about how I owe interest and fees and poo poo. Will those fees, etc go away once they realize I paid them before the new year? But generally speaking, as long as the payment comes out on time you should be okay. Once you see the payment come out of your bank, give it two weeks (that's how long it can take those payments to fully post to your account, though it will be credited as having been received on the day the funds were taken out of the bank once the processing has fully finished), then check the Balance Online tool under the Pay tab of the IRS.gov website and it should give you the actual correct balance if you do owe anything. MadDogMike posted:Also, we rant about the IRS a lot here, but I’d like to take some time out to rant about the states too. Because man they’re driving me nuts lately. Maryland just dinged one client because they claim he somehow did not pay $1.70 in tax, which A. apparently results in $40 of interest somehow and B. is an amount I can’t actually arrive at even if I don’t round off my tax calculations (the instructions officially say “round to the nearest dollar” also). And Delaware is trying to claim a client had an additional several thousand dollars in income in 2017 due to a CP2000 notice, which the IRS never actually issued as far as we could tell, and they probably would have followed up with more letters/collection activity if we had missed the first letter. I’m not sure what the hell kind of proof I need to send them for that one. I don't know Maryland's specific procedures, but I do recall other states accepting an account transcript as proof that a CP2000 issue has been resolved since there should be transaction codes including a closure without an adjustment if that was the case (which happens sometimes if the discrepancy on the CP2000 turns out to simply be missing forms or info and no actual additional income is in play). Peyote Panda fucked around with this message at 09:57 on Dec 20, 2021 |
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Dec 20, 2021 05:54
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I'm a non-citizen who was a resident alien in the US in 2019. Since 2020, I no longer live in the US nor pay taxes there. A few months ago I received some late letters indicating that I've apparently been given the stimulus checks as direct deposits to my BofA account. I'd like to return the checks to avoid any future trouble with entry, immigration, whatever. I've been procrastinating with this because I'm traumatized from your taxes already and wouldn't want to touch this with a ten foot pole. Plus I'm sort of pissed off that I have to jump through hoops because your authorities don't know who lives in their country and who doesn't. But maybe I should try to deal with it before the new year (or do you think?) The IRS website instructs to send a "personal check, money order, etc." by mail.* These are not something we use here in Europe. Is there some reliable way to make such a payment by credit card or international wire transfer to IRS or something? Any hints in general about how to deal with this mess, or interfacing with IRS from abroad? * https://www.irs.gov/newsroom/returning-an-economic-impact-payment sinc fucked around with this message at 10:59 on Dec 20, 2021 |
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Dec 20, 2021 10:08
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sinc posted:I'm a non-citizen who was a resident alien in the US in 2019. Since 2020, I no longer live in the US nor pay taxes there. A few months ago I received some late letters indicating that I've apparently been given the stimulus checks as direct deposits to my BofA account. I'd like to return the checks to avoid any future trouble with entry, immigration, whatever. I've been procrastinating with this because I'm traumatized from your taxes already and wouldn't want to touch this with a ten foot pole. Plus I'm sort of pissed off that I have to jump through hoops because your authorities don't know who lives in their country and who doesn't. But maybe I should try to deal with it before the new year (or do you think?) That phone line is specifically intended to assist people in foreign countries with US tax issues, so they might have some guidance for you.
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Dec 20, 2021 15:40
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Thanks, I went this way and after a couple of hours queuing to different places I ended up calling the EIP info line at 800-919-9835. To my great surprise, they told me that I am eligible to the $2000 simply for having been a resident alien in 2019. Even though I haven't set foot in the US for more than two years. I'm still skeptical but... won't argue with free money then, I guess. At least I can cite this phone call if they arrest me at the airport one of these years.
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Dec 20, 2021 17:52
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sinc posted:Thanks, I went this way and after a couple of hours queuing to different places I ended up calling the EIP info line at 800-919-9835. FWIW, you can review the eligibility rules here, though based on your description you do seem to qualify: https://www.irs.gov/newsroom/questions-and-answers-about-the-first-economic-impact-payment-topic-a-eligibility Also, as part of issuing those payments your IRS account would be noted to indicate you were eligible and what the basis for that eligibility was so there shouldn't be any issues later on.
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Dec 20, 2021 18:34
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Just tried to pay through EFTPS over the phone via the EFTPS customer service line, and had the most Kafkaesque experience of my life. They just read out questions to you from the form they have to fill and have no idea what any of it means. The guy kept asking me "year and the month that the tax payment is for." This is a payment for the employer deferred portion of the social security tax I owe on my 2020 taxes (I'm self-employed.) When I asked him to clarify, he just kept repeating "year and the month that the tax payment is for." I settled on May 2021, since that's when I filed my taxes, and then he just told me that's invalid, so I hung up. Any idea what the right answer would be to that question? Or should I just call back and try to get my EFTPS pin? Or should I nail my balls to my desk?
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Dec 22, 2021 15:56
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KOTEX GOD OF BLOOD posted:Just tried to pay through EFTPS over the phone via the EFTPS customer service line, and had the most Kafkaesque experience of my life. They just read out questions to you from the form they have to fill and have no idea what any of it means. Was there something in this deferral program that stated your payment had to acknowledge it's for an amount deferred through this relief program, that is, it's not just being treated as a regular balance on your tax account? If not, can't you just tell them you're paying self-employment taxes (this assumes you don't have some corporate structure for your self-employment) for 2020, which is probably a way more routine keyword these phone center people are listening for than something about deferred Social Security tax from COVID relief.
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Dec 22, 2021 16:20
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Ancillary Character posted:Was there something in this deferral program that stated your payment had to acknowledge it's for an amount deferred through this relief program, that is, it's not just being treated as a regular balance on your tax account? If not, can't you just tell them you're paying self-employment taxes (this assumes you don't have some corporate structure for your self-employment) for 2020, which is probably a way more routine keyword these phone center people are listening for than something about deferred Social Security tax from COVID relief. "What is the year and the month that the tax payment is for?" "What is the year and the month that the tax payment is for?" "What is the year and the month that the tax payment is for?" "What is the year and the month that the tax payment is for?" "What is the year and the month that the tax payment is for?"
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Dec 22, 2021 16:27
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KOTEX GOD OF BLOOD posted:EFTPS is the only way for me to pay this, and there are only two ways to pay through EFTPS: 1. online, with a PIN (which they never sent me); or 2. over the phone. The only way to pay over the phone is with this guy, and anytime you try to clarify or ask a question, he will just repeat the same thing back at you verbatim. Sounds like you have 12 tries! 11 really. I would go with the months quarterlies are due to narrow it down.
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Dec 22, 2021 18:40
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Starting to sound like "nail my balls to my desk" is the best option here
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Dec 22, 2021 18:51
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If it's for 2020 why didn't you say December 2020?
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Dec 22, 2021 20:37
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Epi Lepi posted:If it's for 2020 why didn't you say December 2020? I did find an item squirreled away on IRS.GOV that indicates you can make payment through Direct Pay or the credit/debit card options even though business payments normally go through EFTPS: https://www.irs.gov/newsroom/how-self-employed-individuals-and-household-employers-repay-deferred-social-security-tax
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Dec 22, 2021 22:58
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Peyote Panda posted:I'd suggest getting an IRS account transcript and a wage & income transcript for 2017. The former would show any activity such as an Automated Underreporter transaction code if a CP2000 was issued and adjustments if AUR actually changed something. The wage & income transcript would show what the IRS had on file for your client's income for that year. If a CP2000 is issued, it's based on a discrepancy between the tax return that was filed and the income as reported to the IRS through W2s, etc, as compiled on the W&I transcript. Well, the IRS confirmed on the phone they never sent any notices to my clients ever except for one saying they owed them additional refund once, so obviously the state is way wrong here. God knows if I'll reach anybody there about it given the holidays though. Ah well, at least the lady did a great job helping me with that one and the other one I called about, I swear letter follow up is the longest and most annoying part of non-tax season work. Thanks for the advice!
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Dec 23, 2021 04:12
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Peyote Panda posted:Just to add a little context here, the individual filer tax year ends 12/31, so December would be the appropriate month unless you're making a quarterly ES payment or something like that. I tried researching this and as far as I can tell these particular deferred tax payments don't have to be submitted as quarterlies, so December 2020 should be fine.  It has to be between March and November of 2020. I have no idea which month that would be and obviously they won't tell me either. I filed my 2020 tax year in May of 2021.I decided to just use Direct Pay. Thanks for the heads up about that. They try as hard as possible to make it seem like you can only use EFTPS for this for some reason. Hopefully this will actually work, and if it doesn't and I start to get threatening mail from them despite having already paid, I'll have to go ahead with the nail-balls-to-desk route. KOTEX GOD OF BLOOD fucked around with this message at 23:32 on Dec 23, 2021 |
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Dec 23, 2021 23:24
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KOTEX GOD OF BLOOD posted:They said this is invalid. Jesus, sorry about the hassle you went through with EFTPS. Do you normally get your self-employment income spread fairly evenly through the year? If so, you could probably use one of the quarterly payment months in that range for the second deferred tax payment (March, June, or September 2020). Someone more familiar with quarterly payments might have better guidance. If you do get any letters about lack of payment, you should be able to call the IRS to sort it out. It would likely just be a case of moving the payment to the correct part of your account. Just make sure that you have the date and amount of the payment as well as the Direct Pay confirmation number. If that does come up I'd suggest waiting until the fourth week of January to call; due to system maintenance a fair amount of the IRS's systems are down which makes it difficult/impossible to verify recent payments until that's past. As long as the payment was made on time, even if you initially get charged penalties and interest those should be reversed once the payment is processed and applied correctly. TL,DR, hopefully it won't be an issue but if so it can be fixed.
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Dec 23, 2021 23:56
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I moved to the US this year. Does income earned in Canada prior to becoming a US tax resident count towards my US tax income brackets? As in, if I make 100k in canada and then move to the US. and then earn 100k in the US. Is the 100k I earned in the US going to be in the 100k-200k tax brackets? Ignoring any currency conversion.
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Dec 24, 2021 18:23
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Methanar posted:I moved to the US this year. Does income earned in Canada prior to becoming a US tax resident count towards my US tax income brackets? Good news! Both countries tax your worldwide income! There is a treaty that splits what you send to each. I think Canada gets the higher bracket.
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Dec 24, 2021 19:15
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My company routinely fails the 401k ADP test. Is there any way to go back and harvest the loss from COVID Year 0 for income tax purposes? The timing of the failure really sucked for that year.
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Dec 25, 2021 12:38
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KOTEX GOD OF BLOOD posted:Just tried to pay through EFTPS over the phone via the EFTPS customer service line, and had the most Kafkaesque experience of my life. They just read out questions to you from the form they have to fill and have no idea what any of it means. I have no idea for sure, but I found out last week that the IRS started mailing vouchers to pay the deferred social security tax. So if you haven’t made the payment yet, you might want to look in the mail.
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Dec 27, 2021 16:26
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Missing Donut posted:I have no idea for sure, but I found out last week that the IRS started mailing vouchers to pay the deferred social security tax. So if you haven’t made the payment yet, you might want to look in the mail.
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Dec 27, 2021 16:41
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What is the benefit of after-tax contributions to a 401k opposed to a regular personal brokerage account. Is it just being able to backdoor contribute to a roth IRA if you make too much money? Also, according to this calculator, if you invest the 'savings' you get through income tax deductions, you actually come ahead with the traditional 401k/ira opposed to the roth versions. https://www.bankrate.com/retirement/calculators/401-k-or-roth-ira-calculator/ What am I missing here, why would you ever bother with the roth versions?
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Dec 27, 2021 18:29
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Methanar posted:What is the benefit of after-tax contributions to a 401k opposed to a regular personal brokerage account. Because you’re able to contribute after tax income to the 401k, then immediately convert it to Roth, which means that unlike a brokerage account, your gains will grow tax free. Also because you’re no longer eligible for tax deductions for contributing to an IRA.
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Dec 27, 2021 18:53
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edit: beaten
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Dec 27, 2021 18:57
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Removes the tax drag even if you don’t convert to Roth afterwards
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Dec 27, 2021 21:52
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Also are shielded from creditors somewhat more then other accounts
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Dec 27, 2021 22:34
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Residency Evil posted:Because you’re able to contribute after tax income to the 401k, then immediately convert it to Roth, which means that unlike a brokerage account, your gains will grow tax free. Ungratek posted:Removes the tax drag even if you don’t convert to Roth afterwards quote:No deduction is available for incomes greater than $76,000 for 2021 ($78,000 for 2022).83 There are no conversion limits for doing a backdoor roth conversion. The annual 401k contribution limit for 2021 is 58.5k. 19.5k for pre-tax contribution. Pretend I have no employer match, that means my after-tax contribution limit is 38.5k. I could convert the full 38.5k after-tax contribution limit of my 401k into a roth IRA. Is that correct? In the end I'm allowed the following. Is this correct? 6k direct contribution to traditional IRA. 19.5k traditional 401k deferral 38.5k roth IRA conversion.
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Dec 27, 2021 22:36
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Methanar posted:lol. Okay so traditional IRAs aren't an upfront tax break at all. What? Traditional IRAs give you a tax break now on what you invest. And traditional IRAs are not garbage. If you're in a part of your life where your income is higher, it's absolutely worthwhile to take a tax break now and pay taxes later when your rate is low. Methanar posted:6k direct contribution to traditional IRA. If you've got the income to do this, my guess is you're above the traditional IRA limit, in which case the 6k would be an additional backdoor IRA. So, if you were to max out everything, assuming your employer matches nothing, you'd get: - $19.5k pre-tax 401k IRA - $38.5k backdoor Roth 401k (possibly rolled into a Roth IRA depending on your preferences or plan) - $6k backdoor IRA Small White Dragon fucked around with this message at 01:13 on Dec 28, 2021 |
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Dec 28, 2021 01:10
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Small White Dragon posted:And traditional IRAs are not garbage. If you're in a part of your life where your income is higher, it's absolutely worthwhile to take a tax break now and pay taxes later when your rate is low. Yes I am. quote:So, if you were to max out everything, assuming your employer matches nothing, you'd get: Is there any general difference or preference between the below two options or is that all going to come down to plan-specific differences. 1) backdooring 401k to a roth 401k 2) backdooring 401k to a roth IRA Methanar fucked around with this message at 01:39 on Dec 28, 2021 |
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Dec 28, 2021 01:37
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I've kind of just noticed that I realized so much (stock) gains this year that I'm falling into a different tax brack when it comes to non-qualified dividends, which I had quite a bunch of. Now I'm wondering whether I should quickly realize more losses before the year ends. I can easily just buy very similar stocks with that money while lowering my tax bill The whole thing seems a bit convoluted, and seems to be dependent on which type of gains are "counted first" Concrete example. Let's say I made: (1) 150k in salary this year (2) 70k in long-term stock gains (3) 25k in qualified dividends (4) 25k in unqualified dividends For (2) and (3) I don't fall into a different tax bracket, as that seems to start at 445k (filing single) For (4) though I fall into the next bracket once over 165k, which I'm obviously crossing. How much of the taxes for (4) will I be paying in the higher bracket? If things were to go in my favor, then I'd pay 15k of (4) in the lower bracket, the remaining 10k in the higher bracket Worst case scenario I'm "crossing" into >165k territory with the other gains from (2) + (3), then have to pay higher tax bracket for the entirety of (4) Which one will it be? (And should I try to realize more losses either way?)
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Dec 29, 2021 00:36
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Methanar posted:lol. Okay so traditional IRAs aren't an upfront tax break at all. Traditional IRA is a tax deferral on the capital gains growth. Roth IRA is a full waiver on capital gains growth. So traditional IRA is mostly garbage, but fill it out anyway through the 6k annual contribution limit. That's not what tax drag is. The dividends, interest and capital gains in an IRA/401k won't be taxed on an annual basis, where they would in a brokerage account. You'll pay ordinary income rates on the growth when distributed, but you'll more than likely still come out (way) ahead. Ungratek fucked around with this message at 18:40 on Dec 29, 2021 |
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Dec 29, 2021 18:30
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When does the IRS start processing returns again? I know they shut down right at the beginning of the year to prepare, but wasn't sure when I should plan to electronically submit my amended return.
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Jan 5, 2022 17:46
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So my 2019 amended return that I mailed last March finally showed up in the "Where's My Amended Return?" website after ~9 months. Both that and my amended 2020 return (electronically sent last April) have yet to be processed though.  At least I can look forward to a small amount of interest due to the delay...
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Jan 5, 2022 18:10
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KOTEX GOD OF BLOOD posted:When does the IRS start processing returns again? I know they shut down right at the beginning of the year to prepare, but wasn't sure when I should plan to electronically submit my amended return. Like February
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Jan 5, 2022 18:16
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AtomicSX posted:So my 2019 amended return that I mailed last March finally showed up in the "Where's My Amended Return?" website after ~9 months.
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Jan 6, 2022 00:51
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Something that I have been curious for awhile: If a youtuber buys a car and uses it solely for traveling to / from filming places, etc, are the expenses/ the car able to be written off on the persons personal taxes if it was bought using income from another job? For example, say I buy a car to use as transportation for my ultra hipster coffee review channel using my personal money. I fully intend to make my bean water reviews my full time job but my mom is my only subscriber and I need to source funds from my other job, can I write off the costs of the car and the expenses required to use the car from my personal taxes or only the income that comes from my hipster bean water reviews?
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Jan 8, 2022 21:01
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Tenchrono posted:Something that I have been curious for awhile: That sounds more like a hobby to me.
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Jan 8, 2022 21:17
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Hey look, it's a thing of questionable accuracy that my inlaws are using as an excuse to get mad at those drat democrats trying to rob us of our hard earned money.
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Jan 9, 2022 00:29
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My response to that is more "how have they gotten away with NOT doing this for so long?" And yes, it's a pain in the rear end when I'm unloading my flyers season tickets at a loss (because I "missed the cancellation deadline" some time during the pandemic when they literally couldn't provide the product I bought and buried the notification in all of the loving spam and marketing emails they send out) but like, it's an extra couple of things to do at tax time. It's not a huge deal. Motronic fucked around with this message at 00:37 on Jan 9, 2022 |
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Jan 9, 2022 00:35
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Motronic posted:My response to that is more "how have they gotten away with NOT doing this for so long?" Snopes has more details: https://www.snopes.com/fact-check/cash-app-irs/ quote:As of this writing, the current threshold for such reporting is $20,000 and 200 payments in goods and services. Come Jan. 1, 2022, that reporting threshold will drop down to $600. But PayPal notes: quote:According to PayPal, which owns Venmo, the change doesn’t affect people who use the apps for personal transactions, like paying a friend back for your share of dinner, gifts, or chipping in for trips. PayPal also states that its app allows users to categorize their own transactions as personal versus rendering payment for “goods and services.” So yeah, it will only affect people who specifically say that money is payment for goods or services, which literally nobody does unless they run a business. Though, honestly, the old reporting thresholds were probably fine. Motronic posted:And yes, it's a pain in the rear end when I'm unloading my flyers season tickets at a loss (because I "missed the cancellation deadline" some time during the pandemic when they literally couldn't provide the product I bought and buried the notification in all of the loving spam and marketing emails they send out) but like, it's an extra couple of things to do at tax time. It's not a huge deal. This is actually a huge deal to a large number of people who are tax illiterate and rely on following the prompts on turbotax and not itemizing. However, they will get around it by lying and saying it's a personal payment and not one for goods or services like before. KillHour fucked around with this message at 00:40 on Jan 9, 2022 |
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Jan 9, 2022 00:37
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KillHour posted:So yeah, it will only affect people who specifically say that money is payment for goods or services, which literally nobody does unless they run a business. Oh even worse. Yeah.....nobody pays paypal fees if they don't have to (no fees for an irreversible "friends and family" transaction). Hell, I even send F&F to vendors I've used before that I trust because gently caress giving paypal money.
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Jan 9, 2022 00:39
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