Search found 1995 matches

by CAsage
Fri Apr 16, 2021 3:45 pm
Forum: Personal Finance (Not Investing)
Topic: Kiddie Tax Misc 2021
Replies: 10
Views: 751

Re: Kiddie Tax Misc 2021

I am trying to say, if a parent wants to fund a child's UTMA account with the parent's appreciated long-term stocks, then the gift tax limitations would also apply to the UTMA if they go above the gift tax limits -- $150k for 2 parents, is this correct? Does a child tax return need to be filed (sin...
by CAsage
Wed Apr 14, 2021 1:11 pm
Forum: Personal Finance (Not Investing)
Topic: Tax implications
Replies: 8
Views: 631

Re: Tax implications

Are you sure the reverse mortgage was actually paid off? Are you planning on selling soon (i.e. Dad doesn't live there anymore). It looks like he "sold" you the house for the amount of the debt, but you don't have any paperwork documenting that amount. Dad would be potentially liable for a...
by CAsage
Mon Apr 12, 2021 5:50 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA Distributions - are they income tax-free if ... ?
Replies: 7
Views: 854

Re: Roth IRA Distributions - are they income tax-free if ... ?

Your aunt is fine, it's all hers. The rule requires the Roth to be open at least 5 years and for the owner to be over 59.5. There is nothing relevant in whether she did/didn't contribute..... Look under Roth Qualified Withdrawal rules in IRS Pub 590-B. https://www.investopedia.com/roth-ira-withdrawa...
by CAsage
Sun Apr 11, 2021 5:56 pm
Forum: Personal Investments
Topic: Trying to use TurboTax to amend 2019 return due to excess Roth contribution. Ugh.
Replies: 5
Views: 461

Re: Trying to use TurboTax to amend 2019 return due to excess Roth contribution. Ugh.

Perhaps amending the return is the wrong solution, because the Roth contribution would not actually change your taxes. Try form 5329 instead. And claim the earnings in the year it was received (not an expert). https://www.taxact.com/support/1280/2020/ira-or-roth-ira-excess-contributions https://www....
by CAsage
Sun Apr 11, 2021 4:38 pm
Forum: Personal Investments
Topic: Trying to use TurboTax to amend 2019 return due to excess Roth contribution. Ugh.
Replies: 5
Views: 461

Re: Trying to use TurboTax to amend 2019 return due to excess Roth contribution. Ugh.

The trick to an amended return is to create the "fixed" return as though you were filling it out correctly, and the 1040-X simply shows the difference. So you should not be showing that $7K in income (plus possibly annoying increase...) which would be for a different year anyway. Perhaps (...
by CAsage
Sun Apr 11, 2021 1:22 pm
Forum: Personal Consumer Issues
Topic: Would (did) you preemptively replace your Roof Shingles
Replies: 51
Views: 3475

Re: Would you preemptively replace your Roof

Another option to consider is how many times you are really gonna need to do this. If you expect to stay in the house forever, is that realistically longer than the warranty on a new roof? If you are gonna sell, a decent roof is mandatory, though it will add zip to your sale price. So, if the roof i...
by CAsage
Wed Apr 07, 2021 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: how to avoid probate
Replies: 9
Views: 984

Re: how to avoid probate

Probate for a simple estate is 100% avoidable. My Parent died 2016, left a Vanguard brokerage account POD to me and a sibling. Trivial transfer - we sent in the death cert, they split the funds. Small BigBank checking account, left POD to me. I transferred that cash into my personal account, to pay ...
by CAsage
Tue Apr 06, 2021 10:55 am
Forum: Personal Finance (Not Investing)
Topic: College Student Tax Status
Replies: 8
Views: 611

Re: College Student Tax Status

With $500 earned income, they are absolutely your dependent, so likely no stimulus. Maybe the AOTC refundable part since they have no tax liability. And then you would lose the $500 credit for other dependents, so at most $500 back to your daughter. Could be worth it. https://www.irs.gov/pub/irs-pd...
by CAsage
Mon Apr 05, 2021 6:01 pm
Forum: Personal Finance (Not Investing)
Topic: College Student Tax Status
Replies: 8
Views: 611

Re: College Student Tax Status

With $500 earned income, they are absolutely your dependent, so likely no stimulus. Maybe the AOTC refundable part since they have no tax liability. And then you would lose the $500 credit for other dependents, so at most $500 back to your daughter. Could be worth it. https://www.irs.gov/pub/irs-pdf...
by CAsage
Fri Apr 02, 2021 12:30 pm
Forum: Personal Consumer Issues
Topic: Question - Raised Garden Bed next to the house
Replies: 7
Views: 594

Re: Question - Raised Garden Bed next to the house

How is the boundary between the two houses marked? While in a 3.5' space you can fit a 2' wide bed... that presumes you will be walking over your neighbor's property every time you access the 8' sides of the planter. What direction does that wall face, and how close is the next structure or wall? Ve...
by CAsage
Wed Mar 31, 2021 1:51 pm
Forum: Personal Investments
Topic: Optimizing inherited IRA withdrawls
Replies: 11
Views: 1019

Re: Optimizing inherited IRA withdrawls

Personally, I would draw it down faster at the lower tax brackets, and then invest it in a nice low-turnover, tax efficient stock index fund forever. You can open a separate account to mentally thank the giver, and it's still there when you need it. I now regret having maxed out my 401k for so many ...
by CAsage
Tue Mar 30, 2021 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: AOTC question
Replies: 11
Views: 862

Re: AOTC question

What I meant is I could choose to not claim him as a dependent. https://hawkinsashcpas.com/why-you-might-want-to-not-claim-your-child-as-a-dependent/ So this is clearly some guy fishing to get business; it's not a solid recommendation. If your child earned $7K, you can certainly claim him as a depe...
by CAsage
Mon Mar 29, 2021 5:55 pm
Forum: Personal Finance (Not Investing)
Topic: AOTC question
Replies: 11
Views: 862

Re: AOTC question

Your son is a dependent according to the IRS unless he provides more than 1/2 his support, generally by earning it, for the whole year. If he started as a freshman in 2020, does that mean he lived at home (possibly as a High School student and over the summer) on your nickel? Who paid for college? R...
by CAsage
Mon Mar 29, 2021 4:54 pm
Forum: Personal Investments
Topic: Helping out Mom
Replies: 10
Views: 1037

Re: Helping out Mom

Moving to a lower expense ratio provider is a good thing in general, but one cannot assess the "tax hit" without knowing the current "Cost Basis" is. Get online and find out! Are all those funds in after tax (i.e. non-IRA) accounts? Once you find out the cost basis, you can deter...
by CAsage
Fri Mar 26, 2021 5:01 pm
Forum: Personal Investments
Topic: Any reasons to not convert tIRA to Roth?
Replies: 40
Views: 2614

Re: Any reasons to not convert tIRA to Roth?

Each year, if your income appears to be under the top of the 24% bracket, convert that amount. The goal overall is to minimize taxes over your lifetime, so you "level" the income by filling up the lower tax brackets. Note the 401k will result in taxable income when withdrawn, as well. I pe...
by CAsage
Sun Mar 21, 2021 6:05 pm
Forum: Personal Finance (Not Investing)
Topic: Is this the correct way to determine my quarterly taxes?
Replies: 9
Views: 1455

Re: Is this the correct way to determine my quarterly taxes?

But if you do it through estimated taxes, the estimated payments should be distributed evenly through the year. You cannot just wait until the 4th quarter to do all the estimated payments for the whole year, and expect to avoid the penalty. Good to know! I had seen another post somewhere saying tha...
by CAsage
Thu Mar 18, 2021 7:05 pm
Forum: Personal Finance (Not Investing)
Topic: H&R Block - software issue
Replies: 10
Views: 527

Re: H&R Block - software issue

Just another random thought - in HRB Taxcut, sometimes you can click on a cell and find "related to" or "comes from" info. I hate those secret hidden worksheets .... Delighted you found it!
by CAsage
Thu Mar 18, 2021 4:58 pm
Forum: Personal Finance (Not Investing)
Topic: H&R Block - software issue
Replies: 10
Views: 527

Re: H&R Block - software issue

Have you tried deleting the form 1099 completely? Or changing the numbers in it to a wild value, then save and correct? I swear sometimes software just gets stuck.... Or if the return is simple, start over with a fresh file. I'm just guessing.
by CAsage
Thu Mar 18, 2021 4:13 pm
Forum: Personal Finance (Not Investing)
Topic: Estimated "quarterly" tax payments deduction
Replies: 14
Views: 1204

Re: Estimated "quarterly" tax payments deduction

Federal tax payments are not deductible anywhere (federal or state return), but you should enter (apply) them on each tax return for the year you designated when you made the payment. State taxes are deductible on your federal return in the year you parted with the cash - if you itemize, and with th...
by CAsage
Wed Mar 17, 2021 12:13 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need to pay estimated tax (1040-ES)?
Replies: 16
Views: 1227

Re: Do I need to pay estimated tax (1040-ES)?

1) If I realize in June, December etc, that I need to make estimated tax payments, or increase my tax withholding on my W-4, would this trigger a late payment penalty for not paying sooner in Q1, Q2,...? 2) How are capital gains treated from stock sells late in the year? Does the IRS hit you with a...
by CAsage
Tue Mar 16, 2021 7:00 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need to pay estimated tax (1040-ES)?
Replies: 16
Views: 1227

Re: Do I need to pay estimated tax (1040-ES)?

What is my tax liability for 2020? Is it the $4k I owe for my 2020 tax return? Or is it the total tax paid in 2020 (eg, through pay check withholdings) + what I pay in my 2020 tax return? I'm guessing the former, since the estimated tax payments for 2021 from TurboTax add up to $7656. I can pay the...
by CAsage
Tue Mar 16, 2021 5:43 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need to pay estimated tax (1040-ES)?
Replies: 16
Views: 1227

Re: Do I need to pay estimated tax (1040-ES)?

Research "safe harbor rules". The IRS wants you to pay as you earn, so I would carefully calculate your 2021 taxes and adjust your W-4 withholding to try and break even for the year. You are safe if : If you expect to owe less than $1,000 after subtracting your withholding, you’re safe. If...
by CAsage
Wed Mar 10, 2021 4:19 pm
Forum: Personal Finance (Not Investing)
Topic: when do I need to taxes for child's income?
Replies: 17
Views: 960

Re: when do I need to taxes for child's income?

So, if my college student's stipend had been below $2200, the Fed tax would have been 10% but because unearned was more than $2200, it was taxed at my rate? (I feel that I have barely mastered my specific tax situation, but just want to know in case I face this in the future.) I think (as in, my in...
by CAsage
Wed Mar 10, 2021 2:41 pm
Forum: Personal Finance (Not Investing)
Topic: when do I need to taxes for child's income?
Replies: 17
Views: 960

Re: when do I need to taxes for child's income?

(CAsage wrote: 3) Yup, the unearned income below $1100 is tax free for the child. Oh Happy Day! Re: #3 above-- I am mixing different types of children's unearned income, but while recently working on my college student's taxes for his unearned stipend/fellowship, I have found a different explanatio...
by CAsage
Wed Mar 10, 2021 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: PSA: Free tax preparation (VITA) available entire remotely at GetYourRefund.org hub.
Replies: 13
Views: 934

Re: PSA: Free tax preparation (VITA) available entire remotely at GetYourRefund.org hub.

I'm curious if the VITA program is less important now with TurboTax and the virtual interview system. Filing personal income taxes is way easier today than it was when one had to fill out all of the forms by hand. Nope. Lots of people are still tech challenged, lack computers, and there's a surpris...
by CAsage
Wed Mar 10, 2021 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: when do I need to taxes for child's income?
Replies: 17
Views: 960

Re: when do I need to taxes for child's income?

Thoughts on several issues raised above, based on actual filing of my child's 2020 IRS & CA FTB returns: 1) You don't need to buy separate tax software for an additional return; most allow up to 5 free federal returns. 2) Yes, you can file a return for your child even though they are a dependent...
by CAsage
Fri Mar 05, 2021 10:34 am
Forum: Personal Finance (Not Investing)
Topic: Advice regarding Promissory Notes
Replies: 2
Views: 189

Re: Advice regarding Promissory Notes

What kind of documentation and what are the terms of the Note?
by CAsage
Sun Feb 28, 2021 6:57 pm
Forum: Personal Finance (Not Investing)
Topic: When Credit Card Fraud Happens Stay on Top of It!
Replies: 52
Views: 4998

Re: When Credit Card Fraud Happens Stay on Top of It!

Following avidly. I think I'm in about to be hit with fraud on our Costco Citi card - got a text that my purchase of Costco Gas in Northern Ca (not us!) was declined, and I have the strangest $10 charge and credit from a FedEx store in some other city I've never been to.... The Costco Gas purchase w...
by CAsage
Thu Feb 25, 2021 5:54 pm
Forum: Personal Investments
Topic: Roth IRA for kids.
Replies: 6
Views: 695

Re: Roth IRA for kids.

Generally, you have to work to have earned income, which is required to fund a Roth. A formal W-2 job is not required. The other alternative is to have someone die and leave your their 401k, which you could pay taxes on and convert to a Roth. Lots of posts on this site about Roth for kids.
by CAsage
Wed Feb 24, 2021 4:19 pm
Forum: Personal Consumer Issues
Topic: Contractor Issues with Remodel
Replies: 64
Views: 3763

Re: Contractor Issues with Remodel

Also check the list of owner vs contactor supplied parts. I would expect "can lights" to include the number (2 vs 12?) and possibly a description, like type and air tightness. There are also various types of can inserts (the part you see, with the actual light) that can vary quite a bit in...
by CAsage
Wed Feb 24, 2021 1:10 pm
Forum: Personal Finance (Not Investing)
Topic: What IRA distributions to report on Form 1040 line 4a
Replies: 3
Views: 301

Re: What IRA distributions to report on Form 1040 line 4a

Never mind.... I just let the software figure it out.
by CAsage
Tue Feb 23, 2021 4:36 pm
Forum: Personal Finance (Not Investing)
Topic: When to payoff mortgage (before or at house sale)
Replies: 9
Views: 679

Re: When to payoff mortgage (before or at house sale)

Looking at (old, dusty, 1998) actual closing escrow paperwork from the house I sold.. I think it would save you a few bucks, maybe $100 (inflation from 1998). There were escrow charges to request the payoff amount and then forward the balance. I will note that the escrow company charged for both the...
by CAsage
Sun Feb 21, 2021 5:23 pm
Forum: Personal Consumer Issues
Topic: Cost to build a southern home like you are in Minnesota with pipe protection for freezes
Replies: 95
Views: 6712

Re: Cost to build a southern home like you are in Minnesota with pipe protection for freezes

This recent weather event in the south got me wondering about this topic. I understand this is a once in a lifetime event for most people in Texas, etc. so many people would say it would be foolish to build a house in Texas in the same way it would be built in Minneapolis. Once in a lifetime, but t...
by CAsage
Sat Feb 20, 2021 5:32 pm
Forum: Personal Investments
Topic: Why do I never see a 50/50 split on this site or other sites?
Replies: 45
Views: 4276

Re: Why do I never see a 50/50 split on this site or other sites?

I see lots of 60/40. 70/30, 90/10 discussions as well. One can do lots worse than 50/50, if you have no other interest or time. For a really fun menu of variable portfolios, check out the "couch potato" portfolios by Scott Burns. Basic is 50/50, but the Margarita is 3-way 33/33/34 and he g...
by CAsage
Sat Feb 20, 2021 1:38 pm
Forum: Personal Finance (Not Investing)
Topic: Simple List of Income Threshold Considerations
Replies: 10
Views: 963

Re: Simple List of Income Threshold Considerations

Estate taxes? For example, converting to a Roth IRA "shrinks" your net worth on paper, but might duck you under an estate tax limit. Ok, it's not actually income but some states have cliffs.
by CAsage
Sat Feb 20, 2021 1:11 pm
Forum: Investing - Theory, News & General
Topic: Got Hit With Wash Sale?
Replies: 18
Views: 1287

Re: Got Hit With Wash Sale?

I learned painfully to watch those wash sale dates on selling shares when dividends were recently invested - but I thought the only pain was making that 1099-B much uglier and therefore making me suffer when entering all that bilge in tax software. Is there a penalty other than bookkeeping? I won't ...
by CAsage
Sat Feb 20, 2021 1:05 pm
Forum: Personal Investments
Topic: Investment to pay for college
Replies: 14
Views: 1067

Re: Investment to pay for college

The real advantage is time - as in, if you had accumulated that $130K in a 529s you might have saved on taxes. At this point, it's a tax-shelter bucket and you could use the same investments as you would outside a 529s. Also, keep in mind that your timeframe for 25% of the cash is the first year 202...
by CAsage
Sat Feb 20, 2021 12:57 pm
Forum: Personal Finance (Not Investing)
Topic: Do you need to remove credit freeze to open brokerage accounts?
Replies: 18
Views: 1188

Re: Do you need to remove credit freeze to open brokerage accounts?

I had to temporarily thaw my credit at Experian and Chexsystems to open new accounts at a new-to-me CU. Note that this is MUCH easier than it used to be and free (used to cost $$ in some states to thaw or freeze, which was highway robbery.) Keep your PINS safe, and the answer here is to TEMPORARILY ...
by CAsage
Fri Feb 19, 2021 7:11 pm
Forum: Personal Consumer Issues
Topic: Personal finance program recommendation
Replies: 29
Views: 2100

Re: Personal finance program recommendation

what about Google Sheets on a shared drive? Then you could store it somehow (and here I lose the details... ask a student not an old codger) and both update it. What problem are you trying to solve? I use Quicken for fun, keep the bills paid on time and run reports, but no inventory. I use Excel to ...
by CAsage
Fri Feb 19, 2021 12:54 pm
Forum: Personal Finance (Not Investing)
Topic: Has anyone had a TurboTax return that included a form 1116 accepted?
Replies: 207
Views: 10729

Re: How long is the IRS taking to accept returns

My HRB Taxcut 1040 return was accepted in 3 minutes. The CA 540 took 12 hours.... 1099-R, 1099-B, 1099-Div, nothing exotic.
by CAsage
Thu Feb 18, 2021 3:58 pm
Forum: Personal Investments
Topic: mortgage payment
Replies: 18
Views: 1427

Re: mortgage payment

My Depression-bred father would not buy my long suffering Mom a house unless he could get a mortgage at 6% or less, just like his Dad did. My first house had a variable at 10.375, and I was lucky to get it. Mortgage rates are at an incredible lifetime low, and the difference between your (more or le...
by CAsage
Wed Feb 17, 2021 2:30 pm
Forum: Personal Finance (Not Investing)
Topic: FYI - State income tax excluding the $300 CARES deduction.
Replies: 12
Views: 1236

Re: FYI - State income tax excluding the $300 CARES deduction.

California does not recognize that $300 CARES deduction either; it gets added back to income at Line 22 of Schedule CA-540. I did not itemize in 2020, so it was just a bonus charitable donation I specifically made.
by CAsage
Wed Feb 17, 2021 2:12 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Aide
Replies: 13
Views: 713

Re: Tax Aide

Locally, we started with a scan model, but that got nixed by AARP national... I'm curious about what aspect of the scan model got your local model rejected by the national organization. Are you able to elaborate? Per our local (multi-city) lead, AARP: "We are no longer permitted to have any in...
by CAsage
Wed Feb 17, 2021 12:54 pm
Forum: Personal Investments
Topic: how can I sell my mutual funds by selecting the dollar amount?
Replies: 5
Views: 412

Re: how can I sell my mutual funds by selecting the dollar amount?

I definitely have that issue when doing Roth conversions - which are done specifically in shares. I can only suggest a minor workaround = if the options seem to indicate shares, estimate a little low, then after it clears "top off" in exact dollars from your settlement account. Note I'm in...
by CAsage
Tue Feb 16, 2021 6:13 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Aide
Replies: 13
Views: 713

Re: Tax Aide

Locally, we started with a scan model, but that got nixed by AARP national. So we are implementing a virtual email and scan system, which is just rolling out. Considerably more overhead/complexity for the clients, and of course a good number of them simply don't have the email, internet, printing an...
by CAsage
Sun Feb 14, 2021 4:58 pm
Forum: Personal Consumer Issues
Topic: Using postage from pre-printed postcard
Replies: 10
Views: 595

Re: Using postage from pre-printed postcard

The USPS does not do exchanges of stamps glued to envelopes (I asked once). You can remove (soak off) and re-glue uncancelled, unused regular stamps, but I'm not 100% sure about the printed on cardboard postcard stamps... I would try it, but take in person to a counter as they might need to hand can...
by CAsage
Wed Feb 10, 2021 3:54 pm
Forum: Personal Finance (Not Investing)
Topic: What is creditor and divorce protection in an irrevocable trust?
Replies: 11
Views: 649

Re: What is creditor and divorce protection in an irrevocable trust?

i would be amazed if any divorce court would condone anyone placing joint or community assets in an irrevocable trust, with the intention of depriving their spouse of their legally entitled assets. I would guess/suppose that the long arm of justice would weigh in on this. I do not think a spouse co...
by CAsage
Wed Feb 10, 2021 3:45 pm
Forum: Personal Finance (Not Investing)
Topic: What is creditor and divorce protection in an irrevocable trust?
Replies: 11
Views: 649

Re: What is creditor and divorce protection in an irrevocable trust?

i would be amazed if any divorce court would condone anyone placing joint or community assets in an irrevocable trust, with the intention of depriving their spouse of their legally entitled assets. I would guess/suppose that the long arm of justice would weigh in on this.
by CAsage
Sat Feb 06, 2021 8:19 pm
Forum: Personal Investments
Topic: Lost money changing Custodians.
Replies: 8
Views: 892

Re: Lost money changing Custodians.

My advisor infomed me while the roths started out with them had been broken off to another company ( capitol group). He asked that we have them brought back to Nwm so he could better manage and oversee all my investments. Another way to interpret this, is for him to say "transfer them back so ...