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Chip

abuss368 wrote: ↑Sun Apr 11, 2021 2:28 pm What states tax Roth IRA withdrawals? I am not aware of any.

There aren't any. I was trying to point out the futility of speculating on future tax law changes.

Chip

I find it hard to believe states will exempt retirees from millions in social security benefits 30 years from now when social security benefits grow due to inflation. There will be a labor shortage for states trying to shift the tax burden to the workers Then you should also find it hard to believe...

Chip

Don’t forget about state taxes. Many will be living in other states like Cali. Want it or not California doesn't tax social security. Neither does my state. Not currently but who knows in the future Currently there is only ONE state (Utah) that taxes Social Security benefits in exactly the same way...

Chip

Ed 2 wrote: ↑Sun Apr 11, 2021 8:32 am Don’t forget about state taxes. Many will be living in other states like Cali. Want it or not

California doesn't tax social security. Neither does my state.

Chip

Braje wrote: ↑Sat Apr 10, 2021 12:52 pm I ran the numbers in https://turbotax.intuit.com/tax-tools/c ... taxcaster/ and come up with a much higher tax saving with the Traditional 401k

Right. OP forgot about the 37% taxes on the 19,500 of ordinary income.

Chip

Let's also not forget about the potential safe harbors involving 2020 tax liability.

Chip

It appears that our DAF is funded richly enough that there will still be funds in it when we reach RMD age. In hindsight, I wish that we had funded the DAF a little less richly, so that we could make full use of QCDs at age 72 and later. I go back and forth on this. The DAF is so convenient for sma...

Chip

grabiner wrote: ↑Tue Apr 06, 2021 8:22 pm Only if your credit is limited on Form 1116, which is not that common for investors.

Is there any data to support the assertion that it isn't common for investors?

Chip

Fidelity: 1% FTF. 2% cash back. Earn 1% using fidelity internationally. Money is fungible. I think you're talking about the credit card, not the debit card. This just adds to the confusion. As mentioned many times above, the Fidelity DEBIT card does NOT have a FTF when used to make ATM withdrawals....

Chip

If I understand Form 1116 correctly (hmmm), for line 1a I should scale the foreign-qualified-dividend value by the appropriate magic number (0.4054 or 0.5405) for my capital-gains tax bracket, but for line 3d (Gross foreign source income) I should show the whole foreign-qualified-dividend value (wi...

Chip

I’ve sent the form asking them not to deduct taxes, so hopefully they will do as I ask. I have not found a way to reach them about changing the way the check is made out, so I will research the indirect rollover method and hope my tax accountant can sort out the 1099R. You should be able to roll it...

Chip

I understand theoretically how to do TLH on my own, but it seems like for 25 basis points Betterment’s algorithms will be a value-add, unless I am looking at my Fidelity dashboard every single day for loss opportunities. I agree with everything nolesrule said. You will know when major loss harvesti...

Chip

Other intangible benefits of converting/ withdrawing everything from tax-deferred are that you don't have to worry about RMDs in your later years, when you are more likely to have some cognitive decline. (The penalty for not withdrawing enough is severe--50% of the amount that should have been remo...

Chip

Hi, and welcome! You have excellent fund choices in the 401k/403b/457b. No need to go to brokerage link. If you are considering the 3 fund portfolio , then these are the funds to use: Fidelity® 500 Index Fund (FXAIX, 0.015%) Fidelity® Mid Cap Index Fund (FSMDX, 0.025%) Fidelity® U.S. Bond Index Fund...

Chip

So I do think it's different. A variation on the most dangerous words to long term investing success: "This time is different". There were quite a few people here saying the same thing a year ago, opining that things were different and that people should get out of the stock market for a ...

Chip

I'd look back at your 2019 1099-R as well. It's likely you had VA tax taken out then, too. So also file a paper NR return for that year. What returns did you file in 2018? While I have no special knowledge of the two states, it's usually the case that you would file part-year resident returns in eac...

Chip

This is all so strange. Maybe I should just not report it. Reason 1: The IRS says if I'm meet the exclusion test I don't need to report it https://www.irs.gov/taxtopics/tc701 Reason2: I didn't get a form 1099-S (also mentioned at the link above) https://turbotax.intuit.com/tax-tips/home-ownership/t...

Chip

I think it would be best to go to the source: IRS Pub 523.

It appears to me that you're eligible for the cap gain exclusion but you must recapture depreciation. But it's fairly complex. I suggest you go through the worksheets in Pub 523 (Wksht 3 in particular) to understand the process.

Chip

Hi, and welcome! You're off to a great start. If I'm interpreting correctly, all of your retirement savings are going into your 401k. Your choice of the 2065 target date fund is excellent. Savings for your house aren't part of your retirement, so placing them in a high yield savings account is perfe...

Chip

I think people need to ask themselves why they are freaked out about a US stock market that is just about where it was in Dec 2018. Why not just take what you had back then “off the table”. THINK about this! We are looking to be in far worse shape over the next year than anything that was remotely ...

Chip

The shares you transfer to the DAF (or any other charity) must have been held over a year to get the full tax benefit. You can only deduct your cost basis on shares held for a year or less.

Chip

Don't want to change the subject too much. But, does the existence of bugs of this sort tend to favor buying the online vs. the CD version of Turbotax? I assume that once T-tax acknowledges the bug, that they will be able to fix the online software reasonably quickly. It would appear that updating ...

Chip

Hypothetical: I borrow $10,000 on Margin in an account that holds only FZROX (Fidelity zero total US market) on December 1. FZROX pays its entire annual dividend of $180 (1.8%) on Dec 7. Fidelity pays me this as cash-in-lieu on Dec 10 and I pay off the margin loan on Dec 14. That's 2 weeks of inter...

Chip

One question, though, regarding the use of the M adjustment code on the 8949 (Exception 2). From my reading of the 8949 instructions, it appears that supporting statements must be attached whenever taking Exception 2, even if no additional adjustments were required. Is that indeed the case or is th...

Chip

Maybe I'm a neanderthal, but I'd just put a pipe wrench on it. Maybe a big one. The OP explained that the head is recessed with no access from the side, otherwise a variety of wrenches might work - but not with the security of the proper socket. Sorry, missed that information in the later post.

Chip

My friend panic sold during Covid last year, so has close to 100 transactions on their 1099-B. None of the sales have adjustments, thus it would be really nice just to enter 2 summary transactions and have the totals appear in lines 1a/8a. I use the TaxAide version of TaxSlayer. I'm not sure how or...

Chip

I have a margin account at Fidelity, but I don't think I've ever used the feature. A couple of things of note: 1. You can move specific positions to your "cash" account if you don't want them lent out. Of course they won't be used to calculate available margin. Right now I only have two po...

Chip

Maybe I'm a neanderthal, but I'd just put a pipe wrench on it. Maybe a big one.

Chip

I had a similar issue with a Capital One card and small, fraudulent charges from the Apple App Store. After I reported the first charge it was reversed and I received a new card. Then there was immediately another charge on the new card, perhaps even before I received the card. I complained loudly t...

Chip

You are correct. 1a does show all of the dividends. So in this case $10. 1b shows that portion of 1a that is qualified dividends which is $9. $3 is short term capital gain distribution does not have to be generated by a dividend. I don't think you are understanding the issue. The IRS requires that ...

Chip

1a is ordinary dividends taxed as ordinary income. 1b are qualified dividends taxed as capital gains. It says"total" on 1a but that is total of ordinary dividends and not total of ALL dividends. They are separate amounts and 1b is not a part of 1a. It separates out how the dividends are t...

Chip

illumination wrote: ↑Fri Mar 12, 2021 12:50 pm I would actually recommend not just sending the check back, that can end up just going down some bureaucratic black hole and get lost.

+100

And then the notices start demanding the money back....

Chip

It's company-specific. My wife's Megacorp had a general 75 rule, but dropped it to 70 for a while when they wanted to reduce staff through early retirements.

Chip

grabiner wrote: ↑Wed Mar 10, 2021 8:21 pm Most investors with foreign stock get 100% of the credit, because the foreign tax is usually about 8% of the dividend, and people with enough foreign income to need to file Form 1116 pay much more than 8% of their income in tax.

You've said this in many threads here, but how do you know this?

Chip

In the MICR code at the bottom, do your Fidelity checks have the check number field at the very left, or on the right? My Vanguard checks have the check number field first (leftmost). i.e., my Vanguard checks look like this: ⑈ <other numbers><check number><check digit> ⑈ ⑆ <routing number> ⑆ accoun...

Chip

jebmke wrote: ↑Mon Mar 08, 2021 12:46 pm What happens to the $3,000 if you have no tax liability even without the deduction?

Evil trick question that I have asked my TaxAide students, especially if you tell them that the 1040 shows a 3K capital loss.

Chip

There is a third group of four digit numbers on the Vanguard checks/drafts right after the account number but the same is true of our regular bank checks. That number is just the check number - 1015,1016, etc. There are no other numbers on the checks. They are virtually identical to any bank’s chec...

Chip

Please note, that quote from ASU doesn't say checks issued from VANGUARD can't be converted because Vanguard is incompentent, it said checks from ANYONE'S money market account can't be converted. It's not Vanguard' fault the recipients of these payments aren't processing them correctly. Hmmm. I did...

Chip

It's easy to pick stocks that look good in hindsight and over two years. Try doing it in the future and over 40 or 50 years. Highlighting Boglehead investing principals saves people money over the long term, which is good. Highlighting individual stocks that have done well over the past two years t...

Chip

I learned in another thread here that there are alternatives to the wax rings. The main attraction for me is that they don't require that the toilet base be set perfectly on the first try. I used this one on a recent toilet installation. So far, so good. By the way, we had a wax ring leak with no sm...

Chip

Is there enough info in a 1099 to accurately determine foreign sourced income? Up until this year I would have agreed with grabiner that you have to go to the fund company's website. And I see from your other thread that you dug up the information from Schwab. But HueyLD has pointed out to me that ...

Chip

Cause any power outage/blurp requires a electric timer set/setup, it regens on a fixed schedule whether need or not(waste/salt usage), and Electric timer gear driven valves mechanisms anywhere a BrineTank has limited life (especially those timers on top the the fliptop brinetank lid![a formula for ...

Chip

squirm wrote: ↑Fri Mar 05, 2021 11:45 am Get one that doesn't rely on an external power source.

Why? I have power available at the install location.

Chip

Our home and auto liability coverage protects 100% of our assets that are not protected by federal and/or state law. I would word this differently: Your home and auto liability coverage protects you against judgements of an amount that happens to equal your non-exempt assets. Judgements in excess o...

Chip

[...]It's a 2 tank, No timer, no electricity, No Problems[...] That was quite a sales pitch. Why would I need 2 tanks with 14 gpg water and a 2 person household? I already have electricity at my install location so a mechanical timer is not a requirement. I would prefer regeneration at night so som...

Chip

Ours has the electronic head unit. We've never heard a sound from it, even during regeneration, though it's in a closet in our garage along with our furnace and electric water heater. It's been 100% trouble-free, and Ohio Pure Water was fantastic at every stage of the process. Thanks. I had electro...

Chip

I got the Fleck water softener system today. The cost of the system including shipping was $746. Though it took me three trips to the big box hardware stores to get the adapters and pipe, I finished installing it myself this afternoon, reportedly saving myself at least $800 in labor. It looks like ...

Chip

Ooooh that's fascinating. Definitely on my list of books to read. Would you mind expanding on that a little as it pertains to investing? I was thinking of the things that 000 mentioned. Buying/holding bonds right now has a negative expected real return. Essentially an almost guaranteed small loss. ...

Chip

To add just a little to lakpr's post, if you get to step 4, the offset against income comes out of your short term losses until you've used them up, then your LT losses.

Chip

Nice detective work. Schwab certainly manages to make things difficult.

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