Jump to content

2023 (for 2022) Income Tax Thread

Parliament

By Parliament
in Can You Help Me With This?

 Share

Recommended Posts

Parliament

Parliament 14272

Posted
  • Author
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.

Link to comment
Share on other sites
UTman

UTman 0

Posted
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
Link to comment
Share on other sites
TwiceHorn

TwiceHorn 31512

Posted
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.

  • Hook 'Em 1
Link to comment
Share on other sites
BearSchlong

BearSchlong 8104

Posted
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.

Link to comment
Share on other sites
Celery Man

Celery Man 20981

Posted
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?

Link to comment
Share on other sites
Kennythetiger

Kennythetiger 9411

Posted
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. 

Link to comment
Share on other sites
Celery Man

Celery Man 20981

Posted
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
Link to comment
Share on other sites
fattyflattie

fattyflattie 4639

Posted
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.  

Link to comment
Share on other sites
  • 2 weeks later...
CooterBrown

CooterBrown 18015

Posted
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?

 

Link to comment
Share on other sites
Armybrat

Armybrat 40856

Posted
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.

Link to comment
Share on other sites
NeverMarryAStripper

NeverMarryAStripper 21912

Posted
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
  • Hook 'Em 1
  • Like 2
Link to comment
Share on other sites
CooterBrown

CooterBrown 18015

Posted
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.
Link to comment
Share on other sites
NeverMarryAStripper

NeverMarryAStripper 21912

Posted
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.

  • Hook 'Em 1
  • Haha 2
Link to comment
Share on other sites
  • 3 weeks later...

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
 Share
Go to topic listing


Football ... Basketball ... Baseball ... Other Sports ... Futbol ... 🤫995🤫 ... Gambling ... Movies & TV ... Music ... Hobbies ... Lulz ... Food & Travel ... Daily Texan ... Business and Markets ... Cloak Room ... Help ... For Sale ... Board Discussion ... Subscribe!... Donate!... Advertise... COOKIE MONSTER!

×
×
  • Create New...