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Posted
2 hours ago, Not a cat said:

Been doing mega backdoor for a few years.  If you have it set so it immediately converts from after tax to Roth there will be no taxable gains and therefore nothing to report (fidelity does this automatically so if your 401k is with them call and set it up).  If there's a lag in the conversion process you'll inevitably have some income to report on gains, but your 401k custodian will send you a form if that's the case.

You're gonna float one over the middle like that? We deserve better.

Posted (edited)

Any consequence of not filing a gift tax return form 709 in this scenario?

Friend gifted me $750k cash in October 2022.   This was their first time giving gift over annual exclusion.

Their estate will probably be under lifetime exclusion, but all will go to a 501c anyway.

Any consequence of them not filing the information return for the $750k gift?

I know it’s their problem and not on the one receiving the gift, but just trying to understand. 

Edited by UTman
Posted
1 hour ago, UTman said:

Any consequence of not filing a gift tax return form 709 in this scenario?

Friend gifted me $750k cash in October 2022.   This was their first time giving gift over annual exclusion.

Their estate will probably be under lifetime exclusion, but all will go to a 501c anyway.

Any consequence of them not filing the information return for the $750k gift?

I know it’s their problem and not on the one receiving the gift, but just trying to understand. 

There is a penalty, although a small one.  If the failure to file is intentional, it could result in criminal charges.

Nice fucking friend.  They should file.

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Posted

My dad died last year, and all his investment accounts were payable to my stepmom upon death. Per the will, she and I were co-executors and divvied up the proceeds per his exact specifications. I guess technically she had to “gift” them to me in that she had assets transferred from her UBS account to mine, right?

Also fuck UBS and most stockbrokers in general unless you have serious money.

The insurance proceeds all went to the residuary estate per probate, and I wrote checks to the family per his specifications, and left money in the account to settle his final tax return.

Now my sister and I inherited his interests in an LLP which ostensibly serves to pay out various O&G royalties, and now I’ve got to wait on the accountants to prepare that return and produce the 1099s.

This year is going to be a little murky.

Posted

actually let me get some help on that from people who are potentially less stupid than I am about taxes - 

wife earns much less than me, and I think.... 2022 was probably her first year in her new job. She had been full time previously earning something like $30k (non profit grant writing/development) and having earnings withheld and all that kinda stuff, we moved and had a baby and in 2022 she worked part time at a different smaller nonprofit doing similar stuff and earned just about $15k on the nose. One explanation for 0.00 withheld is that she earned so little that she wouldn't really owe taxes as a single income filer, although I think even $15k is above that threshold. Another is that either she or the... batty sounding person who probably would have handled payroll fucked up. I don't believe she is considered a contractor... which of course she isn't so she got a W2. And I suppose at this point I just need to remember to budget the cash for this next year and then figure out if we want to handle it like that or get her to change stuff during open enrollment this year. But is this a normal problem for someone who earns not much but is filing jointly? Is there something else stupid I'm doing (related to this) that I should be doing differently?

Posted

Open enrollment shouldn’t make a difference. She should always be able to work with the payroll person to adjust withholdings.  If she’s going to continue sort of free-lancing, might be just as easy to budget cash for taxes and not have to screw with her withholding. 

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Posted
3 hours ago, Celery Man said:

actually let me get some help on that from people who are potentially less stupid than I am about taxes - 

wife earns much less than me, and I think.... 2022 was probably her first year in her new job. She had been full time previously earning something like $30k (non profit grant writing/development) and having earnings withheld and all that kinda stuff, we moved and had a baby and in 2022 she worked part time at a different smaller nonprofit doing similar stuff and earned just about $15k on the nose. One explanation for 0.00 withheld is that she earned so little that she wouldn't really owe taxes as a single income filer, although I think even $15k is above that threshold. Another is that either she or the... batty sounding person who probably would have handled payroll fucked up. I don't believe she is considered a contractor... which of course she isn't so she got a W2. And I suppose at this point I just need to remember to budget the cash for this next year and then figure out if we want to handle it like that or get her to change stuff during open enrollment this year. But is this a normal problem for someone who earns not much but is filing jointly? Is there something else stupid I'm doing (related to this) that I should be doing differently?

You might also consider quarterly estimates and having your wife withhold $0. 

Posted (edited)

If it makes a difference, she’s not really freelancing - she works 20hr/wk consistently, or that’s her theoretical schedule and that’s what they pay her based on. Her income doesn’t vary month to month.

 

thanks btw - I didn’t realize that you could mess with your withholding outside of enrollment. Getting at least some of it to come out of her paycheck would make things a little easier from a planning persoective and would probably result in a… more equitable share of it coming out of her income.

Edited by Celery Man
Posted
9 hours ago, Celery Man said:

thanks btw - I didn’t realize that you could mess with your withholding outside of enrollment. Getting at least some of it to come out of her paycheck would make things a little easier from a planning persoective and would probably result in a… more equitable share of it coming out of her income.

Definitely can. I had to go thru this for 2 years.  And what a kick in the dick the first one was.  Happened a second time because the lady involved didn’t do it correctly, but I was making considerably less then.  Second one sucked too because I was still doing well, but I still vividly remember the first.  Ugh.  

  • 2 weeks later...
Posted

Finally getting around to doing my taxes.  

My 16YO kid had $13,000 in capital gains from stock sale proceeds.  She has no other income so this amount is well under the threshold for owing any taxes at all on those gains.

Does she need to file a tax return if there's no income other than the capital gains and there are no taxes due?

 

Posted
On 3/19/2023 at 12:30 PM, Kennythetiger said:

You might also consider quarterly estimates and having your wife withhold $0. 

I overestimated our quarterly payments for the past two years (bad at math), so we are getting a total of $14,000 in refunds. 
Shoulda gone with a CPA in the first place.

Posted
if the brokerage sent a 1099 form and reported the sale to the IRS then filing would be the prudent course of action.
might as well get the kid used to this annual butt f..king...

I did get a 1099 in her name so I’ll go ahead fill her first return. ‘Merica!
Posted (edited)
4 hours ago, CooterBrown said:

Finally getting around to doing my taxes.  

My 16YO kid had $13,000 in capital gains from stock sale proceeds.  She has no other income so this amount is well under the threshold for owing any taxes at all on those gains.

Does she need to file a tax return if there's no income other than the capital gains and there are no taxes due?

 

You need to look at the kiddie tax.  If I'm not mistaken, the first $1,150 of the gain will be tax-free, the next $1,150 will be taxed at your kid's tax rate (if the gain is the only income, then this should be 0%), and the gain over $2,300 will be taxed at your marginal rate.  So yes, your kid will need to file a tax return and will need to pay taxes.  The kiddie tax is calculated on Form 8615.

Edited by NeverMarryAStripper
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Posted
You need to look at the kiddie tax.  If I'm not mistaken, the first $1,150 of the gain will be tax-free, the next $1,150 will be taxed at your kid's tax rate (if the gain is the only income, then this should be 0%), and the gain over $2,300 will be taxed at your marginal rate.  So yes, your kid will need to file a tax return and will need to pay taxes.  The kiddie tax is calculated on Form 8615.

That sucks. Skirting taxes isn’t what it used to be.
Posted
Unless you're rich, then it's easy.  I think there might be a way to include the kiddie tax on your return, but I'm not sure.

Looked it up. It’s just a separate form you add to your return.
Posted

Well, I reached the limit of TurboTax with figuring out the kiddie tax.  It says my kid owes $11,341 in taxes on an income of $12,744.  I'm no accountant but I'm pretty confident that is not correct.

 

 

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Posted
9 hours ago, CooterBrown said:

Well, I reached the limit of TurboTax with figuring out the kiddie tax.  It says my kid owes $11,341 in taxes on an income of $12,744.  I'm no accountant but I'm pretty confident that is not correct.

 

 

Sounds upper middle class to me. 

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Posted
22 hours ago, CooterBrown said:

Well, I reached the limit of TurboTax with figuring out the kiddie tax.  It says my kid owes $11,341 in taxes on an income of $12,744.  I'm no accountant but I'm pretty confident that is not correct.

 

 

Yeah that can't be right.  The IRS would never leave you $1,403 in income.

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  • 3 weeks later...
Posted

random question. i received a 1099-MISC for canceled/ refunded flights

H&R wants to treat the 1099 as other income, but it really is non-taxable refund of already paid travel expenses

how do i fix this so I'm not taxed on this shit?

Posted (edited)

If I’m gonna get money returned to me (thanks stonks thread) do I still need to file an extension?

Edited by bluto

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