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Hey, I'm a retard when it comes to federal income taxes and tax brackets, etc. I recently got around a 10% raise at work and after taxes, I'm noticing my paycheck is definitely not as much as I thought it would be. If I calculate my federal income tax withheld on my older paychecks, it is about 14.2 - 14.7% of my pay. After my raise, it's now 16% of my pay. FICA is about the same, no state tax here. I went from about 51.5k to 57.2k. I'm reading something about now being over the alternative minimum tax threshold, but no idea how to understand what that is or means. I'm withholding at single 0, no dependent a if that makes a difference.
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Oct 16, 2014 17:35
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Bisty Q. posted:Also, you are nowhere near anywhere where AMT is a 'thing' for you, so don't worry about that. The amount you mentioned was probably the AMT Exemption level that you're now over, but you have to hit a very high amount of income before AMT takes effect. Thank you to both of you for the info. That does explain it better and makes it easier for me to understand.
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Oct 16, 2014 20:03
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I live in Florida and bought a new car last year. A coworker also did the same and apparently his tax guy deducted the sales tax on "line 7 of state as local general sales tax deduction worksheet line 5b". I have no idea what the hell he's talking about, but if I can, I'd like to take advantage of it. My dad (an accountant, but no tax guru) already did my taxes, so I'd guess I'd have to do an amendment? Also, AFAIK, Florida has no state income tax.
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Mar 15, 2015 18:27
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I am tax stupid and this is the first year I've had to deal with this, but if I work for a company as a full time employee, but my home is my office (ie I have no 'business income') can I use the home office deduction? I don't mind paying a tax pro to do my taxes, but I want to know if I really need someone for the home office portion, or if I can't get it, I'll just file the 1040EZ free turbotax. Also, if I rolled over my 403b (old job, non-profit hospital retirement account) to a 401k (new job, private company retirement account) is that considered a gross distribution?
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Mar 5, 2016 23:56
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MadDogMike posted:Any sort of home office must be used regularly and exclusively for business only, nothing else. If you do anything else in that space, no dice. Also, home business expenses are part of itemized deductions (so if you don't have more than your standard deduction in those, generally due to mortgage interest, don't bother), and only the amount above 2% of your AGI counts for said itemized deductions. If these things aren't an issue, then you can do it; look up Schedule A and/or Form 2106 for more details if you want to try yourself, or just bring the total square footage of the office, the square footage of your home proper, and all your home associated expenses that could also apply to the office area (utilities and such) to a preparer and they should be able to handle it. Thanks, this is the advice I needed. I'll double check the form I got about from my previous 403b, I thought it said gross distribution, but I may have made a mistake.
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Mar 6, 2016 17:19
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I am salaried and I paid about $50 less in combined federal tax/SS/Medicare for my first 2018 paycheck than on all my 2017 paychecks. Is this as a result of the new tax law? Everything else stayed the same. Is there any other reason for a drop like that?
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Jan 9, 2018 16:20
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My wife’s sister was in desperate need for another car. She is somewhat special needs and while she can support herself, she doesn’t have much money. We gifted her our used 2010 Honda CRV in December. Can we deduct this at all? We were planning on gifting it to her regardless, but if we can deduct it, we may as well try. Before we gifted it to her, we were looking at new cars and carmax offered us $10,000 and KBB values it around $10k as well.
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Jan 30, 2018 15:47
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SlapActionJackson posted:Your sister in law isn't a 501c3, so it's not deductible. Didn’t think so, thanks!
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Jan 30, 2018 16:08
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“Married, but withhold at single rate”. You were getting way more in each paycheck and unfortunately it sounds like you owe that back to the IRS.
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Mar 24, 2018 22:44
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I currently work as a salaried employee. I recently took a second, (10-12 hrs/wk) 1099 contract based, remote position that will bring in an additional $10-15,000 next year. My wife and I file jointly. Do I need to worry about filing taxes quarterly, or can we just file like normal and pay whatever we owe?
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Nov 29, 2018 01:07
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Hoodwinker posted:My understanding is you don't need to file quarterly if your W2 withholding will: equal at least 90% of your tax liability for the year, or 100% of your prior year tax, whichever is less. If you want to make sure you don't need to file quarterly, adjust your W4 so you withhold enough to cover the anticipated 1099 income. Excellent, that’s what I needed to know. Thank you!
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Nov 29, 2018 02:47
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These may sound like dumb questions, but I'm an idiot when it comes to taxes. I'm trying to look for a good CPA and wondering what to expect for next year's taxes. Previously, we've always done our own, but there are some considerations for next year that I don't know how to file/what to ask a CPA about regarding deductions. I did the taxes this year and took the standard deduction. We just bought a second house to rent to family for below market rent. We put 20% down and the mortgage is ~$900/mo, but they (in-laws) are paying us $500/mo. I've always partially worked from home, but since COVID, my wife now works 100% from home. We expect to have about $50,000 this year on a 1099-NEC and I'm at about $8,000 in short term cap gains for the year. I'd like to ask a CPA if we should be paying quarterly now, or with WFH and the second property if that will be necessary. And then to retain their services in the future. Is it appropriate to start looking for a CPA for next year to ask them all the stuff above and whether I even filed appropriately this year? I know I don't owe anything extra, but it's possible I overpaid the IRS for 2020.
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Apr 26, 2021 15:49
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H110Hawk posted:I would ask them about the particulars of if they understand how to handle the complicated part of your taxes (non-arms-length below market rental income.) If you like their answers, give them your 2020 return and ask them to review it after may 15th. June is perhaps the perfect time to engage them, then you have them ready to go for 2021 and they can sort your quarterly payments and such, and set you up for the future. Exactly what I was looking for, thank you!
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Apr 26, 2021 19:17
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Yours won't be this expensive in all likelihood unless you want them to do some bookkeeping on your behalf. The more organized you are the less it costs.
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Elephanthead posted:City tax rates are public information so I don’t think they have a duty to inform you. I am not a tax attorney anywhere but especially not in philly. My brother ran the county collections dept for a large county in PA. They would attempt to get people to pay for long thought forgotten debts. I believe they were mostly fines/parking tickets/etc but they did work with people to resolve them. Their thought was if we get anything back, that’s better than nothing. Couldn’t hurt to call and ask.
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May 25, 2021 22:36
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Anyone have a suggestion on how to hire a CPA? I’ve emailed 2 local CPAs a couple times each over the last 45 days that were recommended by friends and have not heard back. Am I doing something wrong? Should I just look a different one up and try to contact them?
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Sep 7, 2021 02:30
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H110Hawk posted:Call the front desk. Seriously. These folks are good at math, not computers. I'm sure if Peachtree or excel could dictate their email it would be a more reliable way to contact them. Got it, will do, thanks!
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Sep 7, 2021 13:56
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Marxism posted:I'm work in loving sales, and so in addition to being too stupid to develop any real skills I also get to be paid in a weird complex way that my pea brain can't figure out. I guess it's true, pimpin' ain't easy.
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Oct 1, 2021 01:39
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I thought they got rid of the “work from home” deductions? At least according to my brother, who is an accountant, but not a CPA, so he may be incorrect.
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Oct 2, 2021 02:13
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Epi Lepi posted:Only as an itemized deduction. Meaning if you're a W-2 employee your work from home expenses are not deductible*, if you're an independent contractor filling out a Schedule C you can still deduct those expenses. Ahh ok, thank you. I work from home and have a primary W2 job, but I also have a side contract gig (1099-NEC), which will be half of my primary salary (a third of my total pay for the year), so I don’t if I would still have that ability, or if it would even matter. I’m still in the process of finding a CPA, so I’ll make sure to ask.
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Oct 2, 2021 13:32
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qirex posted:I posted this in the chat thread but this is probably a better place: I looked around on Nextdoor and picked a good option there after 2 personal recommendations never answered my email requests.
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Oct 28, 2021 19:47
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I started a new job 12/6. I had already maxed my 401k at the previous job. When I completed the new job 401k paperwork, I selected 15% contribution because it stated it would take 1-2 pay periods to go into effect, which I figured would be in 2022. The first paycheck for my new job is tomorrow and they've taken 15% out of my pay for the 401k. This means that I'm now over the $19,500 max. Both old job and new job 401ks are with Fidelity. What happens? Is there any way I can fix that? Can I just get in contact with Fidelity to have them return it or something?
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Dec 16, 2021 19:57
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raminasi posted:Yeah but the process might take a few weeks and involve annoying steps like snail-mailing a signed letter, depending on the specifics of how Fidelity does it. Just get a customer service rep on the phone, say you have a 401k overcontribution, and do what they tell you. You have until you file your 2021 taxes to sort it out. Perfect, thank you! E: I’m also going to ask if there any way to keep the match that my new employer puts in there and send back my portion of the overcontribution.
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Dec 16, 2021 20:30
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I spoke to a CPA recently. He calculated my estimated tax ($~8500) and told me I should pay it using the 1040-ES slips I had gotten when I paid my taxes last year. Having never done anything like that before, I had no idea what he was talking about, but I followed the instructions on the slip to go to the IRS website and create an account to pay the estimated tax. To do so, I had to upload my passport, drivers license and social security card by going through ID.me website. It then told me that my photos weren't acceptable and that I need to do a video phone call with them to show them the same documents on video. The queue was too long last week, so I tried it today, waited 45 minutes only to have my webcam/mic not work. It works on every Zoom/webex/etc I do for work, but whatever. I'm now trying again on an ipad, but I've been sent to the back of the line again with another 1+ hour wait. Is this a normal process to pay estimated taxes or setup an account with the IRS?
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Jan 10, 2022 17:57
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H110Hawk posted:hxxps://directpay.irs.gov/directpay/payment?execution=e1s1 Thank you, I appreciate the info. I'm going to do that now.
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Jan 10, 2022 18:16
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I collected all my tax docs and provided them to my accountant on Monday. They told me that they’d need to file an extension because he’s overwhelmed and that I’d need to prepay the IRS by 4/15 an approximate amount based on last years taxes. Is that correct? Last year was the first time I actually had someone prepare my taxes and I got him everything relatively quickly, so there was no need for an extension. This year, I was on vacation until 3/9 and didn’t get him the docs until after. I’ve never been in this situation, so I’m just checking to confirm this is somewhat normal.
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Mar 23, 2023 18:52
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Ungratek posted:Extremely normal Thank you both!
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Mar 24, 2023 16:35
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