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I've lived in Texas my entire adult life, except for December of this year (and forever, moving forward) where I am now in California. Texas does not have state income tax. California does. I am freaking out about this. My salary mostly doubled and I made as much in December 2015 as I made in the first quarter of 2015 at my old job. Lots of new rules do/don't apply to me. And state income taxes are a thing now. My old job in Texas ended on ~Nov 15th and my new job in CA began on Dec 1st. First, I don't owe CA state income tax on the income I earned in Texas Jan-Nov, right? I owe CA state income tax on my December California earnings though. I think. Also, my old company cashed out my 6 weeks vacation as a lump sum bonus and taxed it as such (@ 39%?) - can I claim this as wages owed and have them taxed at the appropriate income tax rate, rather than as a bonus? This would move my tax rate on those funds ($6500 or so) from 39% down to about 25% Furthermore, I have relocation expenses (I am going to pick a round number) of about $7,000. This represents about 12% of my annual income. I believe I can write this off. I take public transit and I think you can write that off, but only if your employer takes it out of your pre-tax paycheck? Or can I just adjust my gross income down by $130/mo for Dec. http://www.bart.gov/tickets/benefits Finally, I have about $14,000 that was "earned in California" in 2015 and taxed at a rate for someone who makes about $100,000. Would I fall in to the minimum income tax bracket for state income (income earned in CA was $14K), which is something like $75 + 2% over $7500. My total federal taxable income for 2015 was probably in the $65K range. Hadlock fucked around with this message at 07:45 on Jan 13, 2016 |
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Jan 13, 2016 07:37
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If we start a business, using it as a pass through, you get to write off the first $5000 worth of organization stuff, legal zoom etc, and then 5000 of start up costs immediately, and then $50,000 after that, but you have to amortize that over 6 years on a monthly schedule? So if I make $100,000 personal income from my day job and I'm in the imaginary 25.0% tax bracket, and I buy $5000 business gadget, I can effectively reclaim $1,250 of that $5000 in my pass through taxes? And then if I buy four $10,000 business widgets, I get to claim $1,666 each year on my pass through business taxes? And I guess we can deduct state and federal taxes on the business gadgets and widgets? So in year 1 after spending 45,000 on start up costs I should expect from the business alone a return of $2916? And then in year two though six, $1,666? Hadlock fucked around with this message at 01:21 on Feb 23, 2021 |
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Feb 23, 2021 01:19
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Epi Lepi posted:If you're asking questions like this you're better off getting your own accountant to advise you instead of just asking the internet. Ah, here it is, furushotakeru posted:I asked a question and was told to go hire a professional to help me! I just wanted you to answer my question for free and not have to pay someone. You guys are all jerks! But this pass through taxes thing is sort of the key pillar of the 2017 tax cuts and jobs act right? We are mega hosed as a country if tax law designed to help small business owners is too complex to discuss on the internet I guess at the core of my question is, am I understanding how the pass through business tax break works, in relation to start up cost deductions I'm not expecting an answer at this point, just complaining that us personal income tax law is ridiculous enough that the reply to my question would be "pound sand, pay me bitch" rather than "yep, that's roughly how it's supposed to work" for a pretty foundational small business start up question We're supposed to be one of the easier countries to start a business too right? We're number six on the "ease of doing business index" most other people must be completely hosed Hadlock fucked around with this message at 03:49 on Feb 23, 2021 |
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Feb 23, 2021 03:29
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Can you efile an amendment to his birth certificate
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Mar 9, 2021 18:31
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In your scenario are you leaving the money in the brokerage account, or parking it in a savings account between trades
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Mar 9, 2021 22:29
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What do you guys use for tax planning etc Just a spreadsheet, or do you plug stuff into TurboTax and see what number pops out etc? Turbo tax is very streamlined towards doing your actual taxes for that year, rather than as a planning tool We're trying to figure out/model tax implications for renting out our current house while my wife pursues a new career opportunity, vs starting a business locally
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Oct 30, 2021 14:06
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Unfortunately my wife makes too much drat money so we sit just outside of the 199a so I've given up on that on the short term. For business tax modeling I was looking at agriculture, where there's (assuming price stability! Good luck with that) pretty good how-to models on dollars in vs dollars out. Kind of looking at getting 20 acres and 11 cows. The economics on this are pretty well understood so tax planning on a 7-10 year horizon seems possible Previously I was looking at developing some land as vineyard and then using the tax advantaged infrastructure (power, well) to much later turn the property into a ranchette/vacation home/Airbnb. Since we sit just outside of the 199a we wouldn't be able to reap much benefit for probably 10 years or more Micro cattle ranching seems like a less risky business? Hard to know without penciling out the numbers/tax law more than a year out. Farms can do crazy things like retroactively apply losses to past tax returns, plus if you're in a disaster zone farms get preferential (forgivable) government loans etc I can model my W2 income on a spreadsheet, but short of writing a bunch of custom python I can't think of how to model all this stuff and see if any of it qualifies as better than a pipe dream
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Nov 2, 2021 00:14
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Epitope posted:put in the effort to create an app that does the calculations, you can sell that too (and further complicate your taxes, and get sued when it screws up someones return). Aww yiss, this is some next level trolling right here, fraudulent business planning software
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Nov 3, 2021 01:00
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Build Back Better at this point is going to be a $3,300,000 package to mail every American a Snickers bar and tiny novelty size American flag I really want that thing to pass but an extremely skeptical at this point
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Nov 7, 2021 16:48
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So our income has changed and we no longer count for pretty much everything due to phase outs below our income level (yay?) We also have a very clear idea of what our income will be over the next two years, although it's pretty complex with many line items I want to "pre render" my tax situation, can I just print off the 1040, W2, schedule 1,2,3,A,B,D, 8995, 8814, 4792, 8812, 1099, 8888 Presumably there's no schedule 4 or C, but I guess I'll have to check, they're not mentioned on the 1040 If I plug all that in and follow IRS official guidance, I should come up with the same number as turbo tax etc, right? And then the same with state income tax, looks like for California is the 540 and D-400 for north Carolina? TL;DR Just print off all the irs forms and build up a spreadsheet? I guess I could do this in turbo tax, but the interface freaks out if you back out and adjust numbers and go forward again a lot, and I think we're at the point where we need to intricately understand our taxes for making future decisions
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Dec 14, 2021 01:47
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Looks like credit karma is owned by cash app, which is owned by Lincoln Bank, but is also in cahoots with square/block somehow, looks like a clusterfuck
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Jan 12, 2022 19:38
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US Income Tax Thread: My antivaxxer CPA died of covid and nobody told me till tax season
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Jan 13, 2022 00:05
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What triggers wanting to file "married, filling seperately"? If my wife has an LLC solely owned by her, and I have an LLC solely owned by me, do we want to file separately
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Apr 17, 2022 03:30
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You are not a volunteer fireman who does not own 16 cats?!
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Apr 18, 2022 05:44
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My mom got robbed about the time I was 18 and had to go through the process of getting a new birth certificate. I might have needed my SSN card to get my passport as well those are the only two times I can think of someone wanted to see a physical copy of my SSN card. Mine is probably in our important documents file folder but I'd have to go check to find out. I don't think it's super important unless you need to prove your identity is excruciating circumstances
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May 3, 2022 18:47
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withak posted:Kiting checks is illegal. lol whoops this is basically how I got through my 20s
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May 12, 2022 06:12
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We recently did this Wife paid CA state tax for income made there for most of 2021 Wife paid NC State tax for income made there end of 2021 No credits, at least that I'm aware of If you didn't update your HR info when you move, then it's possible you paid tax to the wrong state I forgot to update my work tax status when I moved from CA to NC in February, so our tax guy will probably have to leverage the tax credit thing you're referencing for ~45 days of taxable income, but in your case won't apply, probably (I'm not a tax nerd like these other guys) Double edit: pretty sure NC taxes are 4.99% now but I could be wrong v either way they're about half that of California Hadlock fucked around with this message at 22:34 on Jun 27, 2022 |
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Jun 27, 2022 22:30
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I can't give away my old laptops and flat screens, what is goodwill going to do with that garbage. I'm surprised that they take it at all The labor to setup the computer and maintain it is far greater than the value of any 5+ year old computer junk
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Jul 18, 2022 23:46
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Laptops were in pretty (extremely) high demand '20, '21 but I think that market has flattened, maybe even declined since it's peak based on the last couple headlines I've read But yeah laptops haven't really improved substantially since like 2014 especially if you didn't buy the absolute cheapest economy model Source: I am the OP of the laptop megathread
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Jul 19, 2022 00:02
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Looking for speculation from people who have watched tax laws change over time What are your thoughts on SALT cap expiring in 2025, vs a permanent change capping it at ~$80k vs the current $10k, or whatever In theory if nothing happens it just expires, but also a republican national government could easily just make it permanent in '25 before it expires which isn't a major election year
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Jul 21, 2022 17:40
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Small White Dragon posted:This is one of those things that's pretty clever -- this deduction primarily only helps the well off which is something the Democrats are supposedly against. Yeah a bunch of people in the NYC/tri-state area are howling about it, Californians have been hit by it pretty hard as well
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Jul 22, 2022 06:53
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Small White Dragon posted:Just from a quick google of who benefits from the SALT deduction. Can't speak to the leanings of these sites (Tax Foundation, Brookings Institute) The thing is, the US is absolutely massive, what makes you a 1%er household in a flyover state, you might be an 11% in the bay area. So you're paying close to 40% income tax federal and then another 10% state in California, as a family living in a 1200sq ft house On paper you're really sticking it to the rich guys, but the rich guys in CA are living cheek to jowel in a tiny house with one car barely saving any money on dual income. Meanwhile their cousin lives in Missouri in a 4500 sq ft house with six jeeps in the front yard, stay at home wife five kids all on $80,000 a year and not maxing out their SALT deduction, very happy they're "not letting those rich fucks get away with it" You can point to the billionaires but as the other guy suggested, look at the total number of people this impacts. Setting the cap to $80-120k would be pretty reasonable imo. $120k would probably allow people making a million a year to participate, but only barely
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Jul 22, 2022 18:46
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https://archive.ph/2022.12.01-050848/https://www.washingtonpost.com/business/2022/11/30/paypal-1099-cash-gifts/ How big of an issue is this. We have been using PayPal as a crutch sending each other at bill paying time for years because it's easy
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Dec 1, 2022 20:06
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This is the kicker for us. I regularly paypal my wife every month $600 just for daycare monthly, and she sends me a similar or greater amount later in the month for HOA and mortgagewapo posted:Before the reporting change, the app companies were required to submit a 1099-K only for transactions totaling more than 200 a calendar year with gross payments exceeding $20,000. Now a single transaction or multiple payments that exceed $600 can trigger a 1099-K. fake edit: looks like clickbaiting, here is the disclaimer deep in the article. So only need to worry about this if we accidentally sent it as a "for goods or services". Thanks wapo more wapo posted:If, however, there’s a mistake and personal payments get misclassified, the IRS says to sort it out with the app company.
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Dec 1, 2022 20:55
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Yeah we have a joint account, set it up this year finally, it gets used sparingly. Our life has been.... unusually busy, the past three years and paypal is really convenient. And free. I'm sure our accounts are flagged to the moon and back but everything always goes through and it's all legit and tracible with no hard cash in/out so hasn't been a problem. You can PM me if you want the gritty details but not going to post about it here edit: Pro tip if you're going to set up a joint account, make sure they have physical branches in any states you might end up moving to
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Dec 1, 2022 22:10
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it's more like, wife paypals me $500 for boat expenses, then I go pay the boat mortgage and slip fee, or I paypal her $650 and as soon as that hits her account she pays the daycare $1300 or whatever. in relation to our income it's proportional. I'm sure red klaxon alarms  would be ringing at AML HQ if my paycheck was $500 a week for Domino's pizza or something
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Dec 2, 2022 03:46
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KillHour posted:The solution is to sell your boat. And your kid. Now that you mention it the boat is cheaper than the kid 
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Dec 2, 2022 05:39
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Uhh so fun one We lived in California married filing jointly paying one of the top tax rates, I think near or above 9% We then moved to NC in ~Feb 2022, which has a... 4.99 or 5.00% flat income tax. This was due to my wife's job being in person and in NC. I got, I guess verbal* authorization from my boss to move as I had been full time remote in CA since starting in 2021, as I updated my "address" in ADP. On my ADP "earnings statement" it shows my NC address, but then I see lines "CA State Income Tax" and "CA SDI Tax". Doing napkin math 10% state income vs 5% is a chunk of change. Also need to set the record straight for employment verification on visas, mortgages etc down the road. Now, my office DOES have an office in NC in 2022 so shouldn't be a problem to fix this correctly? Getting push back from payroll because, well I've never had a functionally useful conversation with a payroll analyst and they refuse to escalate. Now, we have a lease, utility bills in our name here at the NC address, vehicle registration, daycare bills, plus a boatload of correspondence and documentation of the cross country move. This wasn't a "I am 'moving' for tax reasons, lol", this was a we are actually moving, moving, will not have any trouble proving this beyond a doubt. So do I claw back the thousands of dollars from the state government in April, or am I screwed or what. Or can I convince the payroll manager & his buddy the CFO to restate my earnings for the correct state. Presumably they're going to lock down 2022 payroll soon for EOY accounting. We have a very good tax guy, and I'll be calling him, but curious what I am in for and what options I have here. *I know it's not in writing, that's why I'm specifying, in case it matters Hadlock fucked around with this message at 20:44 on Dec 12, 2022 |
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Dec 12, 2022 20:41
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With my most recent company I have a meager ~$20k 401k. My wife has the giant half million dollar+ 401k she's been diligently contributing to since college (in addition to other retirement planning) thanks in advance for your concern about my retirement in advance What is the most tax efficient way to liquidate this for a down payment on a house. Assume I'm in a near top tax bracket for this exercise. Pretty sure I'm looking at a 50% penalty for early withdrawal etc
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Mar 17, 2023 05:37
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sullat posted:. According the IRS, purchasing a primary residence is a 'safe harbor' and so the 10% early withdrawal penalty wouldn't apply to that. No such luck if it's a second house or beach house though. This is for primary house Can I claw back that 10% if I did this three years ago spring 2020 and didn't register the 10% penalty on my taxes in 2021 H110Hawk posted:Don't. Stop depositing money into your 401k instead. kind of late for that we pushed our deposit to escrow this afternoon
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Mar 17, 2023 06:36
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I made an early withdrawal, they preemptively withheld We have a tax professional just getting our ducks in a row before we talk to him next week Hadlock fucked around with this message at 08:17 on Mar 17, 2023 |
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Mar 17, 2023 08:12
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H110Hawk posted:If you can, slap it all in a Roth IRA in their names. Pay them back over time if you want them to have the money sooner out of regular dollars. Would it be better to put that money in a 529 college fund they can access at 18, rather than Roth? If they don't need it at 18 they could roll it over into a Roth?
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Mar 20, 2023 20:22
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If I know my salary + bonus && my wife's salary + bonus && I know my property tax bill can I use tax brackets to reliably forecast my annual taxes owed My wife's income fucks up the tax brackets and the income witholding calculators never do it right and we've ended up owing money two years in a row now At one point before I was married I found a website that could calculate/forecast this for federal and state within a couple of hundred dollars, but I can't find it anymore Do I... do I just go pick up long form 1040 long form tax forms from the post office and use it as a worksheet?
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Nov 10, 2023 00:55
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H110Hawk posted:Add it all up. Subtract standard deduction and traditional 401k deposits. Look up number in tax tables. Is there a table for this specifically? Like down to the $1000? I can find the obvious tax brackets, but I want to actually calculate this and model our tax liability, and I don't want to do the spreadsheet to do it I found it!  https://smartasset.com/taxes/income-taxes https://smartasset.com/taxes/california-tax-calculator Those are using the "old" tax brackets though. I guess I can use this information to cross-check my own spreadsheet for the old tax bracket, and should update for the new bracket when I put in the values? Seems like this should exist somewhere already though 
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Nov 10, 2023 22:30
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Yeah I don't (or didn't) even know what question to ask this has been very informative  the 1040tt only goes to 99k which isn't going to work for me; but looks like I can use "publication 505" to calculate the tax liability*, or build a template to do so https://www.irs.gov/pub/irs-pdf/p505.pdf *referenced by name but not linked, of course The IRS does have a "Calculate XYZ" stuff but you need to plug in stuff like date of last paycheck, pay date, pay period etc.. I just want to know the big round number of tax due, given a big round number of income so I can make a bunch of
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Nov 10, 2023 23:24
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Subvisual Haze posted:https://www.morganstanley.com/content/dam/msdotcom/en/themes/tax/2023-income-tax-tables.pdf  this is probably as close as I'm going to get thanksThe thing on page 15 looks like it goes into greater detail and also helpful. I think I got distracted by the thing on page 16 that says "THIS IS NOT A TAX TABLE" and went back to the top of the document
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Nov 11, 2023 00:22
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If I know my effective tax rate is 11% should I aim to make sure my paycheck withholding is 12% Both my wife and I have enough that it pushes us into the next tier and I think since we got married a couple years ago we've always owed mid four figure money because the default withholding thing just assumes you're a single earner family from 1952 How do I tell HR to withhold more money from my paycheck 
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Apr 7, 2024 00:30
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If I make $100k per year and I'm in the 20% effective tax bracket, I pay $20k in federal taxes and $0 in charitable donations for a total of $20k paid out If I donate $10k per year to valid charities, do I make $90k per year for federal tax purposes? That puts me in the 18% effective tax bracket and I pay $16.2k in taxes for a total of $26.2k paid out, but I got to decide where $10k got spent instead of the government? But it cost me $6k to do that. I'm using very wrong/round numbers here Is there a tax bracket/income level where donating to charity has a neglible cost compared to paying federal taxes? Like, if it costs me $600 to donate $10k to a charity that pays out education scholarships, I'd much rather send my money there than to bomb people in another country, but not if it costs me $6000
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Apr 16, 2024 02:26
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Yeah I wasn't even trying to use anything close to real numbers in my exampleH110Hawk posted:And you don't get a single cent back until you itemize. It always costs you (1-marginal%) to donate money to charity. Yeah I guess I'm trying to figure out, is $marginal% a single digit number or what are they targeting as the cost? Does $marginal% go up or down as your effective tax rate goes up
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Apr 16, 2024 03:22
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So if I'm donating land to be included in a national park or something, got it. I've been wondering what to do with the northern tip of the grand canyon
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Apr 19, 2024 17:45
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