New answers tagged

2

Stocks and bonds that you own are your property, so you selling stocks and bonds is the disposition of your property. The instructions are consistent.


1

I'm very appreciative of everyone who pitched in, and wish to reassure everyone that I too don't find this avenue of "forcing" my EIP 3 to be a particularly attractive one, if not just because it causes logistical headaches. To my question, though, I think the IRS wouldn't assess a penalty on my strategy. Here's what I found from researching the ...


2

If you are unsure of your income, you could pay an estimate or overestimate on Tax Day and use Form 4868 to request an automatic extension to file your return. The IRS does not want people to file knowingly incorrect/incomplete tax returns, so they offer this convenient, automatic extension.


6

We don’t know yet what any future stimulus payment will be based on. Even if we assume that it will be based on the 2019 return, there may or may not be a backup plan of using the 2018 or 2020 information if 2019 is unavailable. (That is how previous payments worked.) You also don’t know when your 2019 return will be processed; it could be today. We just don’...


2

If it was me, I would probably wait to file another 2019 return. In early December 2020, the IRS commissioner announced that they were still sitting on 1 million unprocessed 2019 paper tax returns, and 3 million pieces of unopened correspondence. Most likely, your tax return is in that stack. As you noted, the IRS notes on a webpage about COVID-related ...


0

Absolutely refile the return: accounting software needs to know where money came from. they know you needed to file a return, so at some point will come looking for it. And do it electronically, since this is the 21st century.


1

Whether your wife has a Social Security Number is irrelevant to whether she is a resident alien. Anyone who passes either the Green Card Test or the Substantial Presence Test is a resident alien. You are a resident alien for all of 2020 because you pass the Substantial Presence Test for 2020. Assuming that your wife has not been in the US in previous years, ...


4

It is already too late to do anything to receive either of the two 2020 stimulus payments. If you are eligible for the stimulus payments based on your 2020 status, and did not receive the payments in 2020 (or did not receive everything that your 2020 status makes you eligible for), then you will get the appropriate amount as a tax credit on your 2020 tax ...


6

The IRS page you linked is under "Credits&Deductions" -- it applies to AOTC and LLC, and they indeed do not include room&board. 529 plans, formally Qualified Tuition Programs, are covered instead in pub 970 chapter 8 (note link is for 2020 version and may break in future; if so look in the ToC at top left under Qualified Tuition Programs ...


3

According to Merrill Lynch, on-campus room and board are qualified, while off-campus room and board are only qualified up to the cost of on-campus room and board. Certain room and board expenses, which may include food purchased directly through the college or university (for the stipulations of off-campus living — see below) For students living off campus,...


3

If done intentionally, it would be fraudulent (regardless of how readily intent could be proved). Moreover, the amended 2020 return with increased income would involve recalculating the Recovery Rebate Credit -- line 30 of the 2020 Form 1040. So the excess stimulus would become additional tax due. The stimulus had a phase-out at a 5% rate rather than a ...


0

You can monitor your business credit like your consumer credit. Unlike with www.AnnualCreditReport.com for consumers, though, business credit monitoring is not a free service. Experian wants $189/yr for their "Business Credit Advantage" service.


0

In fact you can go around asking for social security numbers if you paid someone more than $600. Then you would file 1099-MISC. If someone paid you more than $600: they should ask you for form W-9 and give you a copy of 1099-MISC they filed with the IRS. But when you're doing your tax return, the forms hardly matter. You just add up your total income and ...


0

Yes, rental property owners must report payments of over $600 to independent contractors, limited liability corporations (LLC's) and some C corporations. That includes plumbers, electricians, gardeners, housekeepers and more. All you need is their address and tax ID number, or a W-9 form. There are strict reporting guidelines, and you are not allowed to ...


1

The arrows on Form 1040 signify two things: They are used to highlight important, named summary lines that you may need to find later. For example, on the 2020 Form 1040, you'll find it for things like "Total income" (Line 9), "Adjusted gross income" (Line 11), "Total tax" (Line 24), "Total payments" (Line 33), "...


1

The two checks were issued based on the data on the 2018 or 2019 tax forms, but the final decision on the amount of the tax cut is based on the 2020 tax forms. Therefore some didn't get checks and will now be made whole; some got checks but they were too small and will now be made whole; some were overpaid and are not required to pay back the government; ...


3

Yes, you could be eligible for the Recovery Rebate Credit even though you did not receive stimulus payments because you were not eligible. The payments were sent out based on your situation during tax year 2018 or 2019. During that time, you were a dependent of your parents, so you did not receive either of the stimulus payments. However, the 2020 Recovery ...


0

I don't think there's any way to know about accounts that are (only) opened, or only used for non-income purposes. If there are accounts that produce potentially taxable income above a threshold, those will be reported to IRS on 1099-series forms shortly after the end of the calendar year -- e.g. for 2021 in February or March 2022. After those 1099's are ...


-3

If you were a dependent in 2019 (and you were if your parents provided housing for free the entire year), then you do not qualify for the stimulus check. This recovery rebate is only for if you qualify for the stimulus check but didn't receive one. You don't qualify, so you can't use it. You may be able to use it next year since you moved out this year, ...


3

You’ll be forced into bankruptcy and lose most of your assets. Never invest money that you will need to pay taxes in anything riskier than a money-market fund or AAA-rated government bonds, in the currency in which you’ll be paying your taxes.


3

The address information would only be important if the employer was mailing them to you. But if you will be downloading the documents, then the address on the W-2 form is of zero importance. The thing that links the data to you is your social security number or tax id number, it isn't the mailing address. If this is your current employer you do want to ...


2

The simple answer is "no". A recipient of a bona-fide gift isn't obligated to pay tax on that gift. In the US, a gifter might have some obligation. I am only permitted to gift $15,000 per year per recipient with no reporting obligation. My wife can gift the same amount, so we can give our daughter, friend, sister in law, etc. up to $30,000 per year ...


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