New answers tagged

0

You mentioned you have a bunch of credit cards with no balance, while others have fairly high balances I would not recommend you to close the 0 balance credit cards if they have lower APR. You can transfer the balance to those cards with lower APR. Now, if those 0 balance cards do not have lower APR, closing them will reduce my overall balance and ...


2

Your best bet might be to visit a local IRS office in person. To find your local office, use the IRS office locator page. After you enter your zip code and find your nearest office, click on the "hours and services" link, which will show you a list of every office in your state. For each office, you can click on the "services provided" link to make sure ...


0

I'd say close them if they have fees, if you're worried about fraud or if you're going to be tempted to use them. It may have an affect on your credit rating, but it shouldn't hurt you seriously. Having too many cards gives you the "opportunity" to overspend, which obviously isn't good.


3

Yes, mortgage underwriters will generally take into account all of your assets, including your savings and brokerage accounts. This information will be requested on the mortgage application. The reason is one of risk to the bank. The worst-case scenario to the bank is this: you stop paying your mortgage and the value of the house drops to below the amount ...


4

There is also security aspect. By reducing the number of active credit/debit cards, one significantly reduces the surface of attack. There is smaller chance of getting one of your card information stolen and misused (cf Target data leaks and others).


3

"No financial interest" means that you have signing authority over the account, but you don't own the money in it and aren't allowed to withdraw from it at will. One example would be a business account owned by a company where you're employed as a purchasing manager, and you need to sign checks drawn on that account to pay invoices. FBAR doesn't care about ...


0

Here's an excerpt from the Charles Schwab website which I think will help evaluate your position: The simple answer to your question is no, the value of a gift of stock for gift tax liability is NOT the donor's cost basis, but rather the fair market value of the stock at the time the gift is given. So let's say you purchased 100 shares of XYZ stock ...


2

Assuming that a person has good financial discipline and is generally responsible with spending, I think that having a few hundred or thousand dollars extra of available credit is usually worth more to that person for the choice/flexibility it provides in unforeseen circumstance, versus the relatively minor hit that could be taken to their credit score.


32

Yes, it can be a good idea to close unused credit cards. I am going to give some reasons why it can be a good idea to close unused accounts, and then I will talk about why it is NOT necessarily a bad idea. Why it can be a good idea to close unused accounts "I'd like to close the cards." That is reason enough. Simplifying your financial life is a good ...


5

In your specific case, I would leave them open unless you have a specific reason for wanting to close them - particularly, unless you feel closing them is necessary for you to not misuse them. The impact on the credit score is not why I say this, though. Much more important are the two competing real factors: Ability to control own debt. Having more ...


3

In my own case, my credit score went up drastically after I closed cards. It did go down a bit (like 10 points) in the short term. Within 6 months, however, I did see significant gains. This would include closing the American Express card that I had for like 10 years. According much of what I read, you should never close a AMEX card. I did and it did ...


9

It is an issue of both utilization and average age of accounts. If your cards with $0 balances on them are: A) newer cards than the ones you are carrying balances on and you don't want them B) much lower limit cards than the ones you are carrying balances on then you can raise your score by closing them, as the utilization change won't be a large factor ...


2

There's no harm in keeping them open. Like you said, closing the lines will potentially hurt your utilization. The extent of that impact will depend on your particular situation. There are situations where closing a line will have no actual impact on your utilization. If you have 100k of open credit and a debt load of $2k, if you close a $10k line you ...


1

Most states do have a cooling-off period where the buyer can rescind the purchase as well as a legally allowed limit to how long the dealer has to secure financing when they buyer has opted for dealer-financing. If the dealer did inform you during the allowed window, they will refund your down payment minus mileage fees at a state set cost per mile that you ...


1

Not by you. Your bank might have to fill some reports for the IRS, but for the customer, nothing needs to be done. As long as the money is not income from illegal activity you don't need to worry about it.


4

Why limit yourself to $28K per year? If you pay the tuition directly to the institution, it does not count against your annual or lifetime gift-giving totals. You could pay the entire tuition each year with no tax consequences. The only thing you can't do if you want to go this route is give the money to your children; that's what causes the gift tax to ...


1

If the child is a dependent the question is moot. It is accepted that the parent will pay for some, most, or all of the tuition. There is no tax issue for a current student. The payment of tuition helps them qualify as a dependent. There is no need to transfer the money to the child's account; it can be sent directly to the school. If the money is to be ...


4

From the IRS' website: How many annual exclusions are available? The annual exclusion applies to gifts to each donee. In other words, if you give each of your children $11,000 in 2002-2005, $12,000 in 2006-2008, $13,000 in 2009-2012 and $14,000 on or after January 1, 2013, the annual exclusion applies to each gift. The annual exclusion for ...


6

I was in a similar situation for 2014->2015. In 2014 we owed a lot of money due to some bad math by myself, and a lot of extra income. The accountant (now fired) gave me quarterly tax chits that were based upon my 2014 income with no regard to the makeup of my 2015 income. We did not use any of those chits. At the end of 2015 we were due a small ...


2

Both of the other answers are correct and good answers, but I think neither directly answers your question. No, you do not need to pay additional taxes on the wedding gifts simply because of the fact that they are going into a Roth IRA. Similarly, if you put them into a traditional IRA, that amount would be deductible (assuming you met the other criteria, ...


7

You are a teacher with income. Presumably, between you and your spouse-to-be, more than $5500. That's all that matters. Unless, of course you make "too much money" (i.e. $184K or over). That's another story. The actual deposit can be from any source. The example we often give is that a teenager with legitimate income can have a Roth, up to the income or ...


0

I agree that the surface explanation is that expenses used to generate income are deducted, however there clearly is a double standard in how is applied. For example I cannot deduct my car even though I use it primarily for commuting to work (I would consider that income generation), yet companies are allowed to deduct corporate jets. I can't deduct meals ...


1

I was wondering if I could make part of the payment here in USD legally? Although not directly illegal ... From an India tax and FMEA point of view this would be a bit complicated. A NRI Seller cannot repatriate the proceeds from sale of house unless he had purchased this from NRE account and repatriation is only possible for original purchase ...


3

You must have $x of taxable income that year in order to make a contribution of $x to IRA for that year. It doesn't matter where the actual "money" that you contribute comes from -- for tax purposes, all that matters is the total amount of taxable income and the total amount of contributions; how you move your money around or divide it up is irrelevant.


0

The big one is to keep you from refinancing it with someone else to get a better rate. There may also be some funny-money reasons having to do with being able to count this as a new sale.


1

1- Wells Fargo does not own our current mortgage. They have bundled it and sold it as an investment. 2- They make their money from 'servicing' the loan. Even if they only get $50 per month to service it (3% of our monthly payment), that adds up to $50,000,000 per month if they have a million homes under management. That is $600 million per year for each ...


0

Fear tactics posted above, likely by IRS agents. Yes, you qualify based on the residence test. You perform your work outside the US. You gather business data in a foreign country. The income is excluded.


8

This is normal. The routing numbers were used once long time ago to actually physically route the checks to your branch (or the main area branch). Then, the correct routing number was necessary for the check to physically reach you (the checks were eventually mailed back to the customers). Now, it is all done electronically, and there's no need in ...


12

You need to understand why it was not covered. It's possible there's an error in the billing. This could be something as simple as a missing tax id number. Earlier this year claims codes changed from ICD9 to ICD10, that has caused some "denials" that were strictly related to an "incorrect" billing code. This could be a requirement for prior ...


1

I would hire an accountant to help set this up, given the sums of money involved. $53,000 would be the minimum amount of compensation needed to maximize the 401k. The total limit of contributions is the lesser of: 100% of the participant's compensation, or $53,000 ($59,000 including catch-up contributions) for 2015 and 2016. and they don't count ...


1

According to the 401K information from the IRS' website, it seems that you could seemingly get away with a salary as low as $53,000. It's tough, and I'd suggest speaking with an Accounting professional to get the clear answers, because as Brick's answer suggests, the IRS isn't super clear about it. An excerpt from a separate page regarding 401K ...


1

My understanding is that to make the $18,000 elective deferral in this case, you need to pay yourself at least $18,000. There will be some tax on that for social security and Medicare, so you'll actually need to pay yourself a bit more to cover that too. The employer contribution is limited to 25% of your total compensation. The $18,000 above counts, but ...


1

I'm not sure if there are nuances between countries and appreciate your question is specifically about the US, but in the UK, mobile phone contracts, including SIM only, as seen by the chat in this experion website chat shows that mobile contracts are included in credit ratings for 6 years.


1

I have never seen any of my mobile phone providers report any data to any credit agency. They tend to only do that if you don't pay on time. Maybe sometimes it helps, but from my experience over the last decade - it must be some very rare times.


3

There's no difference between citizens/resident aliens and nonresident aliens with respect to the rules for IRAs. However, if you are a nonresident alien and you have no income connected to the US, and thus have no income taxable in the US, and that has some practical consequences: You cannot contribute more than your US-taxable income for a given year. ...


1

According to this page on the IRS site, assuming that you are residing in the US during your time at college, and this appears to be the case by the nature of your scholarship, then no, the scholarship income is not reportable to the IRS.


6

Is this just appealing to potential sellers' need for instant gratification, or am I missing something here? Timing matters for some people. If you are moving cross country, it's important to be able to sell your house quickly if you want to sell. This can also matter if the seller is interested in buying another home. If their existing home takes ...


4

In a hot market, aka a "sellers market", rates are low, money readily available, housing inventory low, and demand high. It's not rocket science, and in fact, the only thing the buyer is likely to need from his agent is advice on price. Is it possible the fair price attracts a buyer on day one? Sure. But it's far more likely the house should have been listed ...


1

The interest on a loan secured by a rental property is not deductible at all. The interest on a loan used to buy (or improve) the rental property is deductible, regardless of where you got it from (you can take money from your credit card to buy a rental - it will be deductible). The deductability is per the use of the money, not the source, with the ...


1

Technically, no. Only if used for improvement or expansion to the original property.


6

All the fees are added to the amount you actually spend, but they only occur when you do these kind of transactions. They do not happen for any other reason. Balance Transfer If you transfer a balance from another credit card this fee is added to your balance. Since this is your first credit card you don't have to transfer any balance. Convenience ...


-1

Bottom line is our system is broken. For three years running I am 0% return with over 600k in. Yet, the 401k admin institution charges us all enormous fees that most aren't even aware exist. A helpful tip is to also check out your expense ratios and learn how those work as well so you know how much you are paying in hidden fees.


1

According to your actual job mentioned in the comments: low-paying job (retail, $13.50/hr at around 20-30 hours a week) And to your credit history: no credit history (in US) I would strongly suggest to NOT apply for any (unsecured) credit card, the chance to get your applications denied is extremely high. As you mentioned, I would start with a ...


3

Sometime ago, I wrote the following in response to a different question: Once upon a time (not all that long ago), British cheques used to say something like "Pay to the order of ..,,,, or bearer the sum of ...,.." (emphasis added) and could be cashed by anyone unless the cheque-writer drew two parallel lines in the upper left corner of the cheque. These ...


-1

They can go to an ATM and deposit it in to their account. The ATM does not care to read the name, and the bank does not care to verify anything if the check goes through (meaning the bank it is drawn on pays). So if nobody complains, that's it, he has your money. You would need to go to the check-writer's bank and ask for help, or look at the check-writer's ...


1

After some research and reading others people situations I concluded that I should be filling the form as a resident alien (since the W-4 should reflect my state for end of the year) Resident Aliens If you are a resident alien, the rules for filing income, estate, and gift tax returns and paying estimated tax are generally the same whether you are ...


1

As check depositing can be done on an ATM, I assume it will have zero implication. I remember that the exact same concept was used in Germany in the seventies (when I saw the last time checks there), but it was basically an urban legend - most people believed that's what it meant, but in reality it had no binding meaning at all for banks.


4

Crossed Checks don't mean anything over here. As you mentioned, For Deposit Only has the same effect, and that's what banks/retailers look for. Source: Wife is a former bank teller.


0

Each state defines residency on their own. While Colorado says you are a resident when you get a job in CO or live in the state for 90 consecutive days; Ohio says you are when you establish a domicile, or if you spend 7 months (just changed last year from 6 months) of nights in Ohio (called contact periods). That is when you will be taxed in that state. If ...


0

Thanks to everyone for your kind answers and advice. I actually do not have a spending problem. I didn't get into great detail on my credit card use because I was just seeking an answer on IRA withdrawal vs. credit card interest. I can honestly say I did not use the cards for anything but necessity. During the time of my unemployment I had a accident and ...



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