New answers tagged

0

No, there is a penalty on withdrawing money from a Roth IRA that came from a conversion (according to the ordering rules for Roth IRA withdrawals) within 5 years of the conversion, but only on the part of the conversion that was taxable. See the section Distributions of conversion and certain rollover contributions within 5-year period in Publication 590-B. ...


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As others have said, it sounds like a capital gains distribution, so it would most accurately be categorized as a capital gain. However, this would probably mean you should fill out a California version of Schedule D, whereas you don't need to if it's identical to your federal version. So I personally would just label it a dividend (as far as I know, mutual ...


2

Social security is taxable in most cases. The rules are complicated, but if your total combined income is above a certain amount, your social security payments are taxable. The reason this is not double taxation is that there is no direct correlation between the taxes you pay and the benefits you get. When you pay Social Security tax, it is not going into ...


0

As a person who is nearing retirement, but well under the age to qualify for medicare, I am beginning to think that the answer to the "How much should I put in a an HSA?" question should be "all you can". After the match on 401K plans HSAs seem superior given similar investment choices. With 401K dollars, you have to pay tax on them and then use them for ...


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The visa Api is limited to ten digits so $10b is the largest single transaction. With 1000 transactions per second capacity on the network.


1

There are many factors that affect the price of an option. Even if the price of the underlying moves the option more out of the money (or less in the money), the price of an option can still go up if the market's expectation of the future market volatility rises enough. It's simple when you think about it: Lets say you own a call option that is deep out ...


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There are few different things to consider: Deductible : Since you have an HSA you are probably on a High Deductible insurance plan. Take a look at your HSA balance and divide by your max out of pocket deductible. That's the number of years you are covered for the "worst case" scenario. I'd say you want at least ten, but 100 years would be excessive. ...


1

The National Association of Realtors has published guidance for its members at https://www.nar.realtor/coronavirus. That's probably the nearest you'll get to a set of national guidelines. The rules and regulation for real estate transactions vary from state to state


1

what are the implications of having more or less of one's income in publicly traded shares? Stock-based compensation is taxed in several parts. First it's taxed as ordinary income when it's vested, which can be immediately or in groups over several years. Typically, this tax is automatically deducted from the shares that you get, meaning if you are ...


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I've found some alternative options. Unfortunately, though, it seems like most of them won't work most of the time. In-kind transfer to another custodian This is where your investments are just transfered to another custodian without being sold, so they don't change at all. This is the best possible outcome IMO, because you'd be able to choose a reputable ...


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Paying one creditor and not paying another is called "avoidable preference" and it means the trustee can unfo the payment. According to NOLO, the trustee can undo the transaction and distribute it among your creditors, if... you paid the creditor more than $600 within 90 days before your bankruptcy filing; however, actual practices can vary depending on ...


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As said in the other answer, your credit will NOT go to 0. A decrease "between 100 to 200 points is expected". But, "hose with good credit should expect a huge drop in their score immediately after filing for bankruptcy" (NOLO) You credit cards will most likely be cancelled once your credit card providers are served with the notice of your filing. How the ...


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Please refer to my answer in the question you referenced for some background on my personal choice. Now on to your questions: The first is should they close? My first question would be how much earnest money do they stand to lose? I would assume this is somewhere between $500 and $5,000 depending on whether its based on a flat rate of $500-$1,500 or 1% of ...


0

It depends on the tax laws in your jurisdiction and your company type - in many cases accumulated corporate losses can be applied in future years against earnings. There may also be specific tax credits if the losses are incurred in some type of government-favored activity such as R&D.


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Per the 1040 instructions (also downloadable in PDF, if you want to have or keep a copy or for anyone who finds this in the future, use the nav link at the top of the page to go up one level): Scholarship or fellowship income, if taxable, goes on line 1 with a notation SCH (sixth bullet). For details on whether and to what extent your grant is taxable, see ...


3

Spousal IRA Roth is just the term for the logic that allows you to contribute - you use spousal's income. The Roth IRA is not in any way different, and you can make a new one or use the same for your contributions, as you like. Basically, you are contributing to your Roth IRA. The money is from income from your spouse, but that doesn't matter to the ...


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No. IRAs are individual. The sum of contributions to your Traditional and Roth IRAs for a given year is at most $6,000 ($7,000 if you are 50 or older), and the sum of contributions to your wife's Traditional and Roth IRAs for a given year is also at most $6,000 ($7,000 if she is 50 or older). You cannot contribute $12,000 to your IRAs for a given year just ...


1

An actual conversion to a different holding would not be a taxable event. For example VFIAX to VOO, if converted by the fund provider. (I'm using Vanguard funds as an example both because one appeared in the question and because they are somewhat unique in making ETFs a share class of their mutual fund. They specifically support this non-taxable ...


0

Is that really accurate? What are my options? The only people who can definitively answer both of these question are the IRS. You should look up the nearest office at https://www.irs.gov/help/contact-your-local-irs-office They will have copies of all the documents so you can double check their work on your own. I'd HIGHLY RECOMMEND paying this. File an ...


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Unfortunately it sounds like you won't be getting anything, even if you file a return with no income. You said in a comment that your father pays more than 50% of your living expenses. This means he can claim you as a dependent, which means you are ineligible for the stimulus check. Note that even if he does not claim you, you still can't get the check. The ...


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I filed electronically on March 22 and received the refund (direct deposit) 7 days later.


1

You first need to determine if you are somebody's tax dependent. The rules for that are outlined in the IRS Publication 501 and you can ask your family to run the Interactive Tax Assistant decision engine relative to the question to double-check. Based upon the facts and circumstances you have presented there is insufficient information to give you a ...


1

According to AARP’s 2016 Family Caregiving and Out-of-Pocket Costs Report, family caregivers roughly spend an average of $6,954 annually. They count 40 million caregivers, so only 20% of adults are paying for caregiving at any one time. According to Genworth’s Cost of Care Survey 2019, the median cost for supporting a parent in assisted living or in-home ...


1

Looking around other places and taking from what D Stanely and Bob Baerker said... S will become TMUS1 as of 4/2/20 Until the cash in lieu amount is determined, the underlying price for TMUS1 will be determined as follows: TMUS1 = 0.10256 (TMUS) this above is stating that every Sprint share, now known as TMUS1, will be worth whatever T-Mobile is at ...


1

The text of the provision (subsection (c) of new section 6428) says: (c) Limitation based on adjusted gross income.—The amount of the credit allowed by subsection (a) (determined without regard to this subsection and subsection (e)) shall be reduced (but not below zero) by 5 percent of so much of the taxpayer’s adjusted gross income as exceeds— (1) $...


0

The answer that @ksernow provided is incorrect. You can consult the official IRS answer here. In the Conclusions section you will find: Nonresident alien students and scholars and alien employees of foreign governments and international organizations who, at the time of their arrival in the United States, intend to reside in the United States for longer ...


4

Generally, if you sell an asset in a non-tax-sheltered account for more than you paid for it, that's a capital gain, and you have to pay capital gains tax. There are exceptions, but I don't believe any exceptions apply here. The wash sale rule says that if you sell a security at a loss and buy a "substantially identical" security shortly before or after, ...


0

would I be making some absurd amount of money because the price dropped from ~$8 per share to $0.10? No - the terms of your S option contract would be changed to create an equivalent option contract on TMUS. So you'd have a new strike price based on the new share price, and you'd have a new quantity to reflect the exchange ratio. Those two effects cancel ...


3

So, can I sell my SPY and then buy the equivalent VOO? Absolutely - nothing prevents you from doing so. And if you have a gain then wash sale rules are irrelevant. You would then owe capital gains tax on the gain in value. But the cost basis for VOO would be higher, so your gains on that fund would be lower. So your choice is to pay, say $1,000 in tax now (...


2

The numbers reference sections in the U.S. Employee Retirement Income Security Act of 1974, or ERISA, which is the major law governing the operation of employee benefit plans. They appear in the definitions section of subchapter I, the text is hosted here, and describe responsibilities to employee welfare/benefit plans. Section 3(21) - Fiduciary for plan ...


15

Generally the IRS processes your return as soon as they can. So unless there is an issue that causes them to have to stop processing returns you will get your refund in a few weeks. It does depend on direct deposit vs paper check. Usually each year they set a date in January or February when they will start processing returns, but if you file after that ...


10

The sooner you file your tax return, the sooner you’ll get your refund. This has not changed, and there has been no talk of delaying tax refund payments.


1

In broad strokes you are correct. You don’t owe taxes on gifts you make until you exceed the exclusion amount. But you do have to file the gift tax return in the year following the gift. Review the instructions for Form 709 to determine your obligation to file.


2

The other answers have addressed whether and how "is that [tax] really accurate". As to "what are my options" and more concretely "Can I make the payment online?": YES -- the IRS makes it as easy as they can for you to pay them. (Gee, I wonder why they would want that.) The nav bar at the top of every page on their website has a prominent link to https://...


4

You choosing to remove her as your dependent, or you choosing to not have claimed her as your dependent in the first place when you filed, will not allow her to get the stimulus payment. The restriction is that she cannot get the stimulus payment if she can be claimed by somebody else as a dependent, not that she actually was claimed by somebody else as a ...


15

Its important to note that the minimum threshold of income to be required to file your taxes ($12,200 for a single filer under 65) is just that, a minimum to be required to file, not the minimum where filing is an option. If you so choose, you can file your taxes with $0 in reported income (or some small amount of money from your odd jobs in your specific ...


5

The texts I have seen (Senate bill and House bill) carve out some exceptions in the definitions section (emphasis mine): (3) ELIGIBLE INDIVIDUAL.—The term ‘eligible individual’ means any individual other than— “(A) any nonresident alien individual, “(B) any individual with respect to whom a deduction under section 151 is allowable to another ...


3

Is that really accurate? Your sheet shows an income that would put you in the 24% marginal tax bracket in 2018 The tax is $1668 on almost $7000 of taxable income, not $6000. That is 24%. The extra $89 interest. So yes, it is accurate. You seem to not be disputing the unemployment payment amount. Is the interest income accurate, about $1000?


22

If you have not (and will not) file your taxes for 2018 or 2019 then the only way to receive the check is to file for 2020 next spring. The check is actually an advance on a 2020 tax credit, so you can take it now or later. However, for this year you have until July 15 to file your 2019 taxes. Even if you have $200 in income for the year, might as well file ...


10

Is that really accurate? You need to find the 1099-G forms that you should have received from the state. It is possible that it didn't get to you because in another question from a year ago you mentioned that you worked in several states. The IRS did get a copy of the 1099-G and are now reconciling all the forms they received with the SSN numbers to make ...


3

Yes, unemployment is taxable. You didn't specify a state, so here's what Maryland says: Are unemployment insurance payments taxable? Yes. Any unemployment insurance benefits that you receive must be reported as part of your gross income for both state and federal tax purposes. To assist you in filing your tax returns, we will send you an IRS Form ...


0

I am not familiar with US tax system but my general advice is to call IRS using number from a reliable source and ask them. The interest penalty is usually non negotiable but it makes no harm to just ask. If the notice is real I suggest you pay the amount within the due date to avoid additional interest.


5

You cannot attach documents; but you don't need to. The IRS assumes all data entered in the forms is correct, and you have the respective documents; your tax is decided on that basis. Only if they select you for an audit, they will contact you, and then you need the recipts, W2s, etc. So keep all orignals secure (for 6 years), and file your taxes without ...


3

You can't go back in the past and change it, it is limited to the six months. Apply for the better amount now, before she loses more time.


4

You cannot attach documents on free fillable forms, except those which are built into the program. From the website: General Program Limitations Attaching Statements- This program does not allow you to attach any documents to your return, except those available through the Add/View Forms menu. If you need to attach any such documents, you will ...


3

Unless you get Social Security benefits, you will need to have filed a 2019 or 2018 tax return in order to get the check now. Yes, you can file a tax return with no income. If you do not get the check, you can still get the tax credit when you file your 2020 tax return in 2021.


4

There are two parts to the recovery rebate: the tax credit for the 2020 tax year, and the advance tax credit as a check, determined by your 2019 tax return (or 2018 if you haven't filed for 2019). Since you put on your 2019 tax return that you can be claimed by someone else as a dependent, you will not get the check. However, if you cannot be claimed by ...


0

The routing number for checks drawn from a Canadian bank (as Benjamin observed 9 years ago) is indeed in the format 5-dash-3 in stead of the 9 digits for U.S. banks. So you can easily find out if a check was from a U.S. or Canadian bank. Determining the currency of the check is much trickier. The "MICR" (Magnetic Ink line at bottom of check) has a "...


3

Now, I am not a lawyer/CPA but the text of the bill states: In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by subtitle A for the first taxable year beginning in 2020 ... I would interpret this to mean that the check is actually a tax credit for 2020. This CNBC article seems to agree: ... money ...


1

I assume that on your 2019 tax return, you checked the box that said "Someone can claim: You as a dependent". (If not, then either you or your parents filed incorrectly.) In this case, you cannot receive the stimulus check. If nobody can claim you as a dependent (i.e. nobody meets the conditions to claim you, not just that they choose not to claim you) for ...


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