Search found 156 matches

by Flora
Thu Apr 22, 2021 7:52 am
Forum: Personal Investments
Topic: Dad Dying, Son POA to become Executor, Bond Fund to Cash Now?
Replies: 25
Views: 3322

Re: Dad Dying, Son POA to become Executor, Bond Fund to Cash Now?

As mentioned previously consider converting the IRA to a Roth IRA if the tax effect for FIL while living (and incurring $10k+/month deductible medical expenses) is less than the tax effect on the eventual beneficiaries.
by Flora
Sat Apr 17, 2021 11:08 am
Forum: Personal Finance (Not Investing)
Topic: Tax implications for child filing as an indendant
Replies: 12
Views: 604

Re: Tax implications for child filing as an indendant

I have read that 529 plan withdrawals (see below), which are from a gift to the child completed in a prior year, are considered to be support that the student provides to himself or herself and NOT parental support. Thus if you add the 529 withdrawals plus W-2 earnings it is possible that the child ...
by Flora
Sat Apr 17, 2021 9:37 am
Forum: Personal Consumer Issues
Topic: Anyone buy a Toyota Rav4 Hybrid recently?
Replies: 23
Views: 2411

Re: Anyone buy a Toyota Rav4 Hybrid recently?

Has the gas tank fill problem been corrected for the newest Rav4 Hybrid model year?
by Flora
Fri Apr 16, 2021 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: desperately seeking help understanding Form 8606 on 2020 tax filing (Roth recharacterization/conversion issues)
Replies: 80
Views: 2857

Re: desperately seeking help understanding Form 8606 on 2020 tax filing (Roth recharacterization/conversion issues)

Are you sure you don't have to pay tax on the 1099R amount less basis which is 9300 - 7000 = $2300?

Then you converted $8300 and have $1000 of basis 'stuck' on Form 8606 to carryforward.
by Flora
Fri Apr 16, 2021 8:43 am
Forum: Personal Consumer Issues
Topic: Painting Vinyl Siding
Replies: 13
Views: 770

Re: Painting Vinyl Siding

I've not tried it but I see that Benjamin Moore makes a selection of 'handpicked', 'curated' and 'carefully edited palette' of 75 paint colors specifically for vinyl siding.
by Flora
Wed Apr 14, 2021 8:36 am
Forum: Personal Finance (Not Investing)
Topic: Loaning $15K / IRS form implications
Replies: 10
Views: 517

Re: Loaning $15K / IRS form implications

There's no IRS 'form' for lending someone $15,000.
by Flora
Tue Apr 13, 2021 7:40 pm
Forum: Personal Finance (Not Investing)
Topic: Calling all CPA's
Replies: 22
Views: 1883

Re: Calling all CPA's

Clarification: you are describing conversion from tIRA to Roth which is not the same thing as a backdoor Roth.
by Flora
Mon Apr 12, 2021 2:57 pm
Forum: Personal Consumer Issues
Topic: Laser Printer: Buy a New One?
Replies: 54
Views: 3899

Re: Laser Printer: Buy a New One?

I've never had a part replaced or had any service on my 27 year old HP Laser Jet 4 Plus.

Meanwhile I have other assorted dead printers around the house that came free or very cheap in bundle deals with computers for the kids.
by Flora
Fri Apr 09, 2021 8:32 am
Forum: Personal Consumer Issues
Topic: Laser Printer: Buy a New One?
Replies: 54
Views: 3899

Re: Laser Printer: Buy a New One?

I have an HP LaserJet 4 Plus that I purchased new in 1994 for about $1500 that is still in relatively good working order.
by Flora
Tue Apr 06, 2021 7:47 am
Forum: Personal Finance (Not Investing)
Topic: High income yet received 3rd stimulus check
Replies: 7
Views: 1294

Re: High income yet received 3rd stimulus check

Perhaps a fraudulent (2019? 2020 ?) return was filed with your SSN and AGI below $150k.
by Flora
Sun Apr 04, 2021 9:05 am
Forum: Personal Finance (Not Investing)
Topic: Odd -(probably boneheaded) Tax question
Replies: 22
Views: 2227

Re: Odd -(probably boneheaded) Tax question

I noticed you referred to the money you got back as your 'return'.

The tax return is what you filed (Form 1040, etc.).

The money you got back is a tax REFUND.
by Flora
Sat Apr 03, 2021 10:13 pm
Forum: Personal Finance (Not Investing)
Topic: Any reason to file taxes before May 17?
Replies: 34
Views: 3642

Re: Any reason to file taxes before May 17?

Are you applying your 2020 overpayment to 2021 in lieu of a 1st quarter 2021 payment due 4/15/2021?
by Flora
Mon Mar 29, 2021 4:39 pm
Forum: Personal Investments
Topic: Windfall/Inheritance Planning Help Request
Replies: 17
Views: 1473

Re: Windfall/Inheritance Planning Help Request

What do you mean when you say 'take a tax hit' for reallocating beneficiary IRA?
by Flora
Sun Mar 21, 2021 3:31 pm
Forum: Investing - Theory, News & General
Topic: What To Do with $36,000 Extra a Year...?
Replies: 9
Views: 1831

Re: What To Do with $36,000 Extra a Year...?

Are you eligible to make Roth IRA contributions because you are working (i.e. you have earned income from a W-2 job or from self employment income)?
by Flora
Thu Mar 18, 2021 11:09 pm
Forum: Personal Finance (Not Investing)
Topic: Time to fill my taxes... how to claim college tuition for our kid?
Replies: 39
Views: 3302

Re: Time to fill my taxes... how to claim college tuition for our kid?

The AOTC is a credit, not a deduction. Your daughter cannot take the refundable portion of the credit since her earned income is not more than half of her support. Your daughter has no tax liability if her only income is $3500 so the effect of the nonrefundable portion of the credit is zero (i.e. no...
by Flora
Wed Mar 17, 2021 6:40 am
Forum: Personal Finance (Not Investing)
Topic: How do you tell if you should be making charitable contributions to reduce taxes?
Replies: 33
Views: 3335

Re: How do you tell if you should be making charitable contributions to reduce taxes?

OP you say you itemize (Schedule A) due to your rental. What do mean exactly? Aren't you reporting your rental income and expense on Schedule E, page 2?
by Flora
Sun Mar 14, 2021 7:42 pm
Forum: Personal Finance (Not Investing)
Topic: What forms must be included with a 1040-X?
Replies: 7
Views: 444

Re: What forms must be included with a 1040-X?

Did the bonds mature in 2019 but were cashed in 2020?
by Flora
Sun Mar 14, 2021 9:50 am
Forum: Personal Investments
Topic: Max out Roth TSP and Traditional IRAs
Replies: 7
Views: 356

Re: Max out Roth TSP and Traditional IRAs

Form 1099R is issued for withdrawals, not contributions.

You don't need to have received Form 5498 before filing a return that reports an IRA contribution.

Your traditional IRA contributions may or may not be fully deductible:

https://www.irs.gov/retirement-plans/ir ... ion-limits
by Flora
Wed Mar 10, 2021 8:31 am
Forum: Personal Investments
Topic: Windfall, VTSAX, and taxes
Replies: 22
Views: 2776

Re: Windfall, VTSAX, and taxes

A capital loss carryover utilization of $3000 per year doesn't 'offset the taxes due' (i.e. it's a deduction and not a tax credit).
by Flora
Wed Mar 10, 2021 12:40 am
Forum: Personal Finance (Not Investing)
Topic: Stimulus Question - Adult Dependent
Replies: 5
Views: 532

Re: Stimulus Question - Adult Dependent

Consider extending your tax return until after a 3rd EIP has been received.
by Flora
Wed Jan 20, 2021 12:03 am
Forum: Personal Consumer Issues
Topic: Engagement Ring
Replies: 140
Views: 7925

Re: Engagement Ring

This is what I would buy for $21-$24k:


https://www.worthy.com/items/9918525

Tiffany & Company 2.02 carat round center stone, E color, VVS1 (plus 0.67 tcw side pear-shaped diamonds). GIA certified. Custom platinum setting.

This is 33% larger at possibly one-half the price.
by Flora
Tue Jan 19, 2021 9:47 pm
Forum: Personal Consumer Issues
Topic: Engagement Ring
Replies: 140
Views: 7925

Re: Engagement Ring

Choose white gold or platinum with a GIA certified stone (my advice - don't pick rose gold or yellow gold).
by Flora
Sun Jan 17, 2021 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: Worth financing car purchase (temporarily) for incentive?
Replies: 21
Views: 1473

Re: Worth financing car purchase (temporarily) for incentive?

A family member just did this in December: paid cash for all but the minimum Honda Financing loan amount of $5000 in order to save $500 with the new college grad incentive, then paid $5018 for the first loan payment (received the title in the mail shortly thereafter). Easy!
by Flora
Fri Jan 08, 2021 10:25 pm
Forum: Personal Investments
Topic: HELP - Inherited IRA strategy
Replies: 20
Views: 1502

Re: HELP - Inherited IRA strategy

If disclaiming to contingent beneficiaries who are children under a certain age then be aware that unearned income (inherited IRA withdrawals) over a certain limit will be taxed at the parents' tax rate (see Form 8615).
by Flora
Fri Jan 08, 2021 7:40 pm
Forum: Personal Finance (Not Investing)
Topic: Student Loan For Son
Replies: 13
Views: 668

Re: Student Loan For Son

Can you get a HELOC loan in order to have a low-cost source of funds to cover the semester shortfalls? You could have a written agreement with your son to repay you (or you could forgive the loans gradually later).
by Flora
Fri Jan 08, 2021 5:59 pm
Forum: Personal Finance (Not Investing)
Topic: Student Loan For Son
Replies: 13
Views: 668

Re: Student Loan For Son

The American Opportunity Tax Credit of up to $2500 per year for up to 4 calendar years of undergraduate education is based on paying up to $4000 of tuition with non-tax-advantaged dollars.

Did the Presidential Scholarship cover tuition completely?
by Flora
Fri Jan 08, 2021 12:31 am
Forum: Personal Finance (Not Investing)
Topic: Donating appreciated securities
Replies: 12
Views: 814

Re: Donating appreciated securities

'Donations' to a gofundme campaign are unlikely to be qualified charitable contributions to an IRC section 501(c)(3) public charity (i.e. not deductible).
by Flora
Sun Jan 03, 2021 1:24 pm
Forum: Personal Consumer Issues
Topic: AAA - American Auto Assn - Service has gone way down
Replies: 103
Views: 9055

Re: AAA - American Auto Assn - Service has gone way down

I have the same question/concern (AAA Member since 1985). One of my kids (included on my AAA card) had a flat tire late at night on a freeway recently (fall season and not bad winter weather) and AAA said it would 2.5 hours until someone might come to help. That was after we both struggled to get th...
by Flora
Sun Jan 03, 2021 12:00 pm
Forum: Personal Investments
Topic: Two questions for my Roth IRA
Replies: 12
Views: 1171

Re: Two questions for my Roth IRA

Do you have a traditional deductible IRA balance as well and that's why you will have tax on the backdoor Roth?
by Flora
Fri Jan 01, 2021 10:45 am
Forum: Personal Finance (Not Investing)
Topic: IRS Direct Pay Payment Returned
Replies: 11
Views: 1592

Re: IRS Direct Pay Payment Returned

Did you make the payment using the primary taxpayer's SSN, etc.?
by Flora
Sun Dec 27, 2020 11:20 am
Forum: Personal Investments
Topic: Plan Review, Recent Windfall
Replies: 27
Views: 2957

Re: Plan Review, Recent Windfall

People have different ideas in providing help to their kids for college costs. Personally, I want to give them the best debt-free start in life after college. You could match your kids earnings, up to a certain amount that they pay toward college, by gifting money for a Roth IRA contribution. You do...
by Flora
Sun Dec 27, 2020 10:34 am
Forum: Personal Investments
Topic: Plan Review, Recent Windfall
Replies: 27
Views: 2957

Re: Plan Review, Recent Windfall

So you plan to have about $10k-$15k per child in a 529 plan but then they are expected to pay for all other college costs by working/loans? The $10k-$15k seems unlikely to even cover 1 semester. Federal loans are currently limited to $5500-$7500 per year for 4 years. Will you co-sign private loans? ...
by Flora
Thu Dec 24, 2020 9:05 am
Forum: Personal Finance (Not Investing)
Topic: Mandatory distribution by year-end but funds not available
Replies: 9
Views: 967

Re: Mandatory distribution by year-end but funds not available

After double checking that the Foundation has an amount on its 2019 Form 990PF, page 9 Part XIII, line 6f (and then subtracting any checks to charities written in 2020 to date) see below: Here is a suggestion to avoid the penalty if your friend absolutely cannot write and mail any Foundation checks ...
by Flora
Thu Dec 24, 2020 8:54 am
Forum: Personal Finance (Not Investing)
Topic: Mandatory distribution by year-end but funds not available
Replies: 9
Views: 967

Re: Mandatory distribution by year-end but funds not available

The penalty on undistributed income is 30% of the amount that should have been paid out to qualified charities by 12/31/2020. First determine the undistributed amount as follows: look at the 2019 Form 990-PF Form 990PF, page 9, Part XIII, line 6f. Next, subtract any amounts that were already paid ou...
by Flora
Wed Dec 23, 2020 12:33 am
Forum: Personal Finance (Not Investing)
Topic: Income tax return submitted for Oct deadline
Replies: 3
Views: 310

Re: Income tax return submitted for Oct deadline

I know someone who paperfiled on October 15 and received the direct-deposited refund on December 8.
by Flora
Tue Dec 15, 2020 6:11 pm
Forum: Personal Investments
Topic: When to adjust TSP contributions to take affect in January?
Replies: 16
Views: 1063

Re: When to adjust TSP contributions to take affect in January?

I was just about to link that same Reddit post with the chart!

You need to make the change no later than December 19 so that it is effective for the pay period beginning on December 20 which is the first paycheck of 2021 that is paid on January 8, 2021.
by Flora
Fri Nov 27, 2020 4:19 pm
Forum: Personal Investments
Topic: Kiddie Tax threshold for taxes
Replies: 4
Views: 582

Re: Kiddie Tax threshold for taxes

Note that not all states follow federal treatment so even if you included your child's unearned income on your federal return you may still need to file a separate state return for your child with a proforma federal return attached and adjust the child's income out of your own state return.
by Flora
Sat Nov 21, 2020 11:11 pm
Forum: Personal Finance (Not Investing)
Topic: Child Roth rules
Replies: 12
Views: 930

Re: Child Roth rules

The filing threshold is much lower than $12400 for self-employment income. A 2020 Form 1040 and Schedule C should be filed to report the $700 net self-employment income and pay the self-employment tax liability. A state income tax return may be required as well.
by Flora
Sat Oct 31, 2020 10:18 am
Forum: Personal Investments
Topic: Retired young - what to do with 401k from employer?
Replies: 25
Views: 3599

Re: Retired young - what to do with 401k from employer?

The prorata rule applies to IRA balances and not to 401k balances.

So keeping the money in a 401k prevents that balance from going into a calculation that determines how much of the backdoor Roth is taxable.
by Flora
Wed Oct 28, 2020 10:26 pm
Forum: Personal Investments
Topic: Retired young - what to do with 401k from employer?
Replies: 25
Views: 3599

Re: Retired young - what to do with 401k from employer?

Do you have an existing traditional IRA?

Will you be doing any Roth conversions or backdoor Roth contributions?
by Flora
Wed Oct 21, 2020 9:03 pm
Forum: Investing - Theory, News & General
Topic: Roth IRA for working child?
Replies: 40
Views: 2600

Re: Roth IRA for working child?

It's not "up to the child's 'taxable income' ".

The annual Roth IRA contribution limit for your child is earned income or $6k for 2020, whichever is lower.

(Earned income for an employee is W-2 Box 1 Wages).

Earned income is not the same as taxable income.
by Flora
Thu Oct 01, 2020 10:48 am
Forum: Personal Consumer Issues
Topic: Finishing the basement
Replies: 10
Views: 1067

Re: Finishing the basement

Not all walls can be moved if hiding structural supports.
by Flora
Tue Aug 04, 2020 6:55 am
Forum: Personal Finance (Not Investing)
Topic: Idea to reduce EFC, what am I missing?
Replies: 7
Views: 623

Re: Idea to reduce EFC, what am I missing?

You can't exclude the $200k undeposited check you are holding until FAFSA is complete unless you want to commit financial aid fraud.
by Flora
Sun Aug 02, 2020 10:44 am
Forum: Personal Finance (Not Investing)
Topic: More than $500K profit on sale of primary residence
Replies: 24
Views: 3278

Re: More than $500K profit on sale of primary residence

Invest the $300k gain piece into a Qualified Opportunity Zone to defer the gain and reduce the taxable portion. Consider any state tax implications.
by Flora
Thu Jul 30, 2020 3:02 pm
Forum: Personal Consumer Issues
Topic: Toyota RAV4 Gas vs Hybrid?
Replies: 91
Views: 7104

Re: Toyota RAV4 Gas vs Hybrid?

Are you aware of the issue with the Rav4 Hybrid gas tank? People report that they are not able to fill the tank with more than about 10 gallons of gas due to the saddle-shaped tank design so cannot achieve 550 miles on one tank. https://www.rav4world.com/threads/have-you-had-trouble-filling-your-hyb...
by Flora
Wed Jul 29, 2020 10:27 am
Forum: Personal Investments
Topic: College age children opening 1st Roth IRA Account
Replies: 22
Views: 1146

Re: College age children opening 1st Roth IRA Account

I love Roth IRAs for working kids!

When my oldest was a toddler he contributed his W-2 Box 1 earnings to a traditional IRA and subsequently converted the balance to a Roth in 1998 when Roths were established.