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vtMaps

I've done a bit more research. I had it all backwards... I was thinking of it as a way to decrease my wife's SE taxes. I think it's meant to be a way that one can increase their SE tax :oops: The reason one would one want to do this is to "buy in" to SS benefits. It's meant for bona fide s...

vtMaps

I am trying to understand the Optional Method (part of Schedule SE). My wife almost (but not quite) qualified to use the optional method this year. There are a number of restrictions: Net income under $6,107 Net/Gross less than 72.189% Net income of at least $400 in 2 of 3 past years Can only be use...

vtMaps

Am I reading your comment correctly: the surviving spouse will not receive the high-income spouse’s full benefit amount at time the high-income spouses dies, if the surviving spouse had originally claimed before their NRA (while high-income spouse was living)? If so, does the amount of reduction tu...

vtMaps

jebmke wrote: ↑Mon Mar 29, 2021 9:19 am It is also shown in the transcript I think (you should be able to get online).

Did the OP efile or paper file? If OP paper filed, the paper tax return may not have been transcribed correctly and the online transcript will not match the paper tax return.

--vtMaps

vtMaps

At 22% I don't think it is worth it for me to do conversions. I could be wrong, but I cannot see what my income will be in 20+ years and what tax rates will be. After one of you dies, 22% may look very attractive to the survivor. The amount of your RMDs as married will (more or less) be the same af...

vtMaps

You said your wife is unemployed. Is she getting unemployment compensation?

--vtMaps

vtMaps

I am running into the same exact issue in H&R Block today for my 2020. Did you figure out how to resolve this issue in H&R Block? Do you have more than one 1095-A ? A couple of years ago we got caught up in a HR Block bug affecting the self-employed health care premium deduction. Basically,...

vtMaps

I logged onto our joint account via my phone and used mobile deposit on a business check made out to my wife. It showed as accepted, then was reversed the next day. I called and discussed it with Fido. They considered the check a rhird-party item since it was in my wife's name and I was logged on a...

vtMaps

So, if all of my self-employment earnings are going to my health insurance, which makes my net extremely low (if anything), I should be able to collect my social security at the normal amount for age 62. That is not quite right... The self-employed healthcare premium deduction does NOT lower your s...

vtMaps

So, if all of my self-employment earnings are going to my health insurance, which makes my net extremely low (if anything), I should be able to collect my social security at the normal amount for age 62. That is not quite right... The self-employed healthcare premium deduction does NOT lower your s...

vtMaps

I file by mail for one reason - I like to know exactly what is being reported to the IRS. Yes, the program allows me to print out forms but it takes a leap of faith to assume that what is transmitted with efile matches what is on the forms. That is exactly the reason I use tax software, but then pa...

vtMaps

I am off-grid. I agree with vtMaps, being on-grid is usually the better option, though $78k could get you a lot of electricity system, so it might be cheaper to off-grid it. I am also off grid. Yes, $78k will buy a fairly robust off grid system. Maybe even large enough for microwave, air conditioni...

vtMaps

In looking at a new building project the costs to run electric in is crazy. Is anyone here totally off the grid for electric? How big of home and any issues? Or what company? Thanks in advance!! The cost of an off grid kilowatt-hour is vastly more expensive than what you would pay a utility. The on...

vtMaps

It's almost certainly the assumptions about ages of death that account for the different recommendations between the tools. That may be true, but there is another factor... When you claim benefits, it means that you have to spend less of your retirement savings for your living expenses. Most SS cal...

vtMaps

More importantly ...if you may benifit from Roth conversions waiting untill later may (might) make the decision much clearer. This may be very important. OP, once you begin collecting any SS benefits, your tax brackets will have a SS tax hump. If you do Roth conversions while you delay SS benefits,...

vtMaps

I am genuinely curious what causes good companies to take something that's working well and make it a lot worse. What am I missing? I don't know if it applies here, but many companies dumb down their web site so that it resembles the mobile app. Makes for a more uniformly dumb experience for those ...

vtMaps

I do large estimated tax payments throughout the year on a credit card to earn sign-up or spending bonuses. That in itself is typically not an overpayment, but it's enough to meet a safe harbor. Then, I'll typically throw in one last payment in shortly before filing to earn another bonus, if there ...

vtMaps

Side note, reading further down the announcement, I am amazed how large the average refund is. Last year's average tax refund was more than $2,500. Are people facing vastly fluctuating income and other tax circumstances, or is this a failure to plan the withholdings correctly? Some bogleheads plan ...

vtMaps

This is from page 3 of this thread: You need a regular brokerage account and have all of your deposits go into there. You can then setup cash manager to automagically pull from that when you need cash in the CMA. Or what I do is use the regular brokerage account for everything except ATM withdrawal...

vtMaps

I buy a new 4-wheel drive Tacoma access cab every 2-3 years with the "work" package. I live on a dirt road, have much winter exposure to salt, and use the truck to haul firewood, manure, hay, etc. Tacomas are reliable, but my use is tough on any truck. Tacomas come with two years (or 25k m...

vtMaps

Dental insurance are just prepaid dental payments, you really don't come out ahead unless your employer pays the premiums. You may come out ahead if you are your own employer. If you have self-employment income, you may deduct "above the line" your healthcare and dental premiums. You may ...

vtMaps

We file as MFJ. We both got our first stimulus payments by direct deposit. Today, my wife got her 2nd payment ($600) as a check in the mail. When I go to the IRS "Get my Payment" site and look for my stimulus payment, it says: Payment #2 Status - Not Available We are unable to provide the ...

vtMaps

I stopped using Fidelity mobile check deposit after two refusals by them to credit a check made out to my wife despite her name on the account with mine. We now do all such through BOA even though Fido is our main bank. I think that is pretty normal... Ally has the same policy. When YOU log in, you...

vtMaps

I am not sure whether the doctrine of "constructive receipt" applies here. Regardless, you will have some issues if Fidelity's 1099 does not match your "constructive receipt".

--vtMaps

vtMaps

Let's use a simple example: Both spouses have the exact same birthday and reach full retirement age on 1/1/27. <snip> higher earning spouse would get $3,000 monthly benefit at full retirement age (1/1/27) and $4,000 monthly benefit at age 70 (1/1/30) You are assuming, in your example that FRA is 67...

vtMaps

[ When I initiated the conversion, I noticed the shares were transferred from the IRA to the Roth immediately even though they were mutual fund shares and it was a mid-day transaction. The shares are converted immediately, but the value of the conversion (and the tax consequences) will be determine...

vtMaps

jwblue wrote: ↑Tue Dec 15, 2020 9:01 pm The gas company then came to light the pilot light on the water heater.

jwblue wrote: ↑Tue Dec 15, 2020 11:27 pm I believe we have an electric ignition.

It's one or the other.
If you have an electric ignition then you do not have a pilot light.
If you have a pilot light, then you do not have electric ignition.
--vtMaps

vtMaps

When we both work, software jobs, our combined income is around 285k. <snip> a 60,000 medical expense out of pocket- that wouldn’t ruin us. <snip> Really it’s only a couple hundred bucks difference, but I wrote this all out to vent, You have too much time on your hands. I tried to coerce wifey to c...

vtMaps

You are expected to pay estimated taxes each quarter, for the amount of conversion in that quarter. If you can pay taxes by having taxes withheld (from salary, pension, SS, or IRA distribution), then it doesn't matter when in the year they are withheld. Do you know about "safe harbor"? As ...

vtMaps

If you are in the 25% tax bracket, a contribution means you are paying with money that has already been taxed at 25%. Bottom line: earn $133.33 then pay $33.33 tax, then contribute $100 to Roth. Net $100 in Roth. If you are in the 25% tax bracket, a conversion means you are paying income tax on mone...

vtMaps

Today I attempted to withdraw $5,000 from my Fidelity traditional IRA and withhold 76% federal and 22% state leaving me a net deposit to my checking account of 2%. The system would not let me do that. Is this part of a strategy to minimize other tax withholding and estimated taxes during the calend...

vtMaps

Thanks for all the comments. Is there a problem with 76%/22.8%? .8% is only an extra $40 in state tax withheld compared to what you wanted. No, it's not a problem, this year. Last year I needed to withhold about 80% federal and 20% state. I was able to do that at Fidelity last year. This year it gen...

vtMaps

The state of VT says: “ If you entered an additional amount to be withheld on the federal W-4, consider entering 30% of that amount on Line 6.” State law requires that I consider withholding more than I will owe. Fine. I considered it for a moment. I don't believe that Fidelity should make that a m...

vtMaps

Heads up! Things have changed for the worse at Fidelity. Each year in December I take an IRA distribution, and have most or all of it withheld for federal and state taxes. (We are younger than 72, so no RMDs yet) In years past, I have been able to choose a custom percentage for both federal and stat...

vtMaps

I do not carry an ATM/Debit card unless the Debit limit is set to zero (thus it is an ATM only card). Both Ally and my local bank allow me to do that. Fidelity does not allow you to set the ATM and Debit limits independently... if you set the limit to zero it affects both ATM and Debit. Why would yo...

vtMaps

Interesting but how was your emergency fund taxable? For me, my brokerage account is all after tax money. A taxable account means not a retirement (tax deferred) account. Your brokerage account is a taxable account. My emergency fund was a high yield savings account, thus a taxable account. --vtMaps

vtMaps

Any creative ideas Here is a (partial) solution that my wife & I used for the two years before we were both on medicare: Debt. In order to keep our income low while still spending money on living expenses, we ran down our emergency fund and took a number of 0% interest loans (car financing and ...

vtMaps

I haven't seen intermittent leaks mentioned. The gold standard for finding a leak is the dunk test, but an intermittent leak may not be revealed by the dunk test. An intermittent leak typically occurs when a small nail seals the hole it made. When the tire is parked in a position that flexes the rub...

vtMaps

At some point the IRS will run a computer checkup on your return. That's when they compare, for example, your 1099s to what you actually reported on your return. My point is that at some point they MAY realize that your ages do not match the deduction you took. (actually, you did not take the extra ...

vtMaps

One problem with filing a paper return is that some IRS employee has to manually enter your tax data into their tax software. It is prone to mistakes. My guess is that the age/blindness box for OP’s husband was checked by the data input person in error. The OP can get a tax transcript to see what’s...

vtMaps

I think inherited basis means that there had been non-deductible contributions to the IRA. --vtMaps

vtMaps

Your healthcare premiums that are deductible are not what you paid during the year... You won't know what SE healthcare premium deduction you can take until you know what you paid (after subsidies) for your healthcare insurance. You won't know that until you do your taxes. It's a complicated RECURSI...

vtMaps

apropos: https://www.newyorker.com/cartoons/dail ... casablanca?

"Of all the gin joints in all the towns in all the world, she walks into mine after 10 P.M."

--vtMaps

vtMaps

Barr Hill Gin is made with honey (and the cork is sealed with beeswax). About $35 for 750 ml. Regarding tonic water, I recommend Fever Tree LIGHT tonic water. Regular Fever Tree tonic water is sweetened with sugar, costs about 4 times the price of the national brands, and IMO is not worth the premiu...

vtMaps

Are there any tax implications here? There MAY be tax implications. If you have a taxable brokerage account and do a TLH (tax loss harvest), the transactions in your IRA could create a wash sale. --vtMaps Thanks for the message. I am fairly new to this so please forgive me... but a taxable brokerag...

vtMaps

Noob Investor wrote: ↑Tue Nov 03, 2020 11:59 am Are there any tax implications here?

There MAY be tax implications.

If you have a taxable brokerage account and do a TLH (tax loss harvest), the transactions in your IRA could create a wash sale.

--vtMaps

vtMaps

My Company was acquired and the existing 401k plan terminated. I was given a severance package as a part of the acquisition so could not keep my assets in old plan (terminated) and could not roll to new employer plan (no new employer yet). ah ok. well, when you find your new job you can roll your I...

vtMaps

Can I use the Deluxe version of H&R Block 2020 or TurboTax 2020? Or is it the Premium version? In past years Deluxe could do all the same forms as Premium. The difference was that Premium had better and more complete interview questions. As LadyGeek mentioned, they will soon publish which forms...

vtMaps

Are you running your cost through the business and getting the self employed tax deduction? That should lower federal, and state taxes and possibly SE / FICA tax. The Self employed health care premium deduction does not lower the business net income, and thus does not lower the SE/FICA tax. The Sel...

vtMaps

stoptothink wrote: ↑Fri Oct 30, 2020 11:39 am
radiowave wrote: ↑Wed Oct 28, 2020 8:49 pm Don't forget a good pair of poles
Hiking or snowshoeing, I virtually never use poles; almost every time I bring them I regret carrying around the extra weight.

I never bring poles. If I did, I would probably only use them to knock snow off the drooping tree branches ahead of me.

--vtMaps

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