2013 Annual Anandtech Tax Time Thread!

[Schfifty Five]

Adding another couple questions:

1. How long does it take for the IRS to withdraw from my bank account if it's an ACH?

2. While submitting my bank account info to send the amount I owed, I accidentally forgot to put the two leading 0's for my bank account (BoA), will that make a difference? The routing # was correct. Example: I put 123456789 instead of 00123456789.

Thanks.

Edit: Got these two answered. Payment still went through w/o the 00's and it only took about 3 days.

 

[Red Squirrel]

Just got my results! I get $1,115 back. I was hoping for a better return but hey, it's better than paying. Going to go sign tomorrow. That money will at least help me build my new server.

 

[JEDI]

lets say I made $150k in 2013:
$100k profit from long term stock
$50k annual salary

the $100k is taxed at 15% because it's long term stock.
whats the $50k taxed at?

and am I still eligible for a Roth deposit?

 

[Xcobra]

lets say I made $150k in 2013:
$100k profit from long term stock
$50k annual salary

the $100k is taxed at 15% because it's long term stock.
whats the $50k taxed at?

and am I still eligible for a Roth deposit?

Depends. If you are filing married filing joint, you can contribute if your MAGI is below 178K. Between 178K and 188K, it is reduced and any dollar above 188K, you cannot.

If you are single, you cannot. You are above the maximum amount (127K).

 

[JEDI]

Depends. If you are filing married filing joint, you can contribute if your MAGI is below 178K. Between 178K and 188K, it is reduced and any dollar above 188K, you cannot.

If you are single, you cannot. You are above the maximum amount (127K).

thx for answering the Roth.

whats the federal tax bracket of the $50k?
25%? or taxed at $150k bracket?

 

[jaedaliu]

thx for answering the Roth.

whats the federal tax bracket of the $50k?
25%? or taxed at $150k bracket?

If you do your taxes manually, you can see the effects. The worksheet procedure is:
1) Calculate taxes on your taxable income.
2) Calculate taxes with your long term investment income considered.
3) the lower of the 2 is your income tax.

You'll discover that you'll pay your normal taxes on the $50k, and then the $100k investment income is taxed at its rate (assuming that the investment income qualifies). (this is not accurate because you'll have deductions, so you're probably calculating your taxes against less income)

 

[Yossarian]

Easy one--is it necessary to file two 2106s if I have unreimbursed expenses from two jobs, or can I combine them on one?

 

[LightRider]

http://www.irs.gov/pub/irs-drop/n-14-21.pdf

IRS on bitcoin, FYI.

 

[MustISO]

Question about SEP IRA and Traditional IRA. My wife is a sole proprietor (LLC) and has a traditional IRA. Turbo Tax recommended she setup a SEP to be able to make larger contributions and reduce taxable income. Can she have both a traditional IRA and a SEP? From what I read the answer is yes but I wanted to be sure.

 

[ultimatebob]

http://www.irs.gov/pub/irs-drop/n-14-21.pdf

IRS on bitcoin, FYI.

Umm... Is it normal for the IRS to change tax rules like that after many so people have filed? I'll bet that a lot of the cryptominers in the Video card forum are pissed right now.

 

[Imp]

Finished mine last last weekend. First time ever owing a balance to the gubment... FML.

 

[Xcobra]

Question about SEP IRA and Traditional IRA. My wife is a sole proprietor (LLC) and has a traditional IRA. Turbo Tax recommended she setup a SEP to be able to make larger contributions and reduce taxable income. Can she have both a traditional IRA and a SEP? From what I read the answer is yes but I wanted to be sure.

I don't see why not. SEPs are usually for self-employed individuals and Traditional IRAs (whether deductible or not) are ok to set up as long as you have earned income. I will have to check but I think you're right.

 

[Sho'Nuff]

Did ok this year. Getting ~$700 back from the feds and ~$300 back from MA.

 

[RockinZ28]

Did better than I thought. Owe $266 to the feds, CA owes me $146, and IN owes me $46. Just hope it was done right. Took it somewhere this year because of this partial year resident BS.

 

[CPA]

Finished mine last last weekend. First time ever owing a balance to the gubment... FML.

You did good actually. You should applaud yourself. I would rather use the money over the course of the year and owe the gov't than pay too much in and let the government use it over the course of the year.

 

[Mxylplyx]

Do you have an example of a form 709 gift tax form covering a simple large cash gift from a parent to child? My MIL turned gave us a life insurance payout and I told her id get her the form she needs to send, but this form is very confusing.

Thanks

 

[fuzzybabybunny]

I own my own business and I'm in Hong Kong for 3 months taking a web development course that is directly related to my business. It is not from any officially accredited college though.

What things are deductible in this scenario? Housing, tuition, food, etc?

 

[jaedaliu]

I own my own business and I'm in Hong Kong for 3 months taking a web development course that is directly related to my business. It is not from any officially accredited college though.

What things are deductible in this scenario? Housing, tuition, food, etc?

Your company is paying for everything, right? So your plane tickets, housing, food, and course fees should all be business expenses. I don't know how it works for IRS purposes, but all corporate travel I've been on required that I book a hotel at (or below) the GSA rate, and depending on the company, I could spend whatever I wanted on food, or up to the GSA rate.

For Hong Kong, GSA allows daily expenditures of $358 for housing and $139 for meals and incidentals with no more than a total of $497 total. But that's the government rate. You can probably spend more if you want, you're authorizing your own travel.

 

[Aharami]

say i have $20K sitting in a savings acct, and I want to move it to a retirement fund to maximize my 2013 tax refund, what are some options? IRA? Roth IRA? What else? Also hadmy first child born in Jan 2014. I want to open up a 529 acct. Is that tax deductible? If so, can it be applied toward my 2013 return?

 

[Pandamonium]

What filing status should I use? (Married, both working in different states. Using TurboTax)

Married, both graduated in 5/2013 in LA. No wages from Jan 1-May 31. Wife moves to MO and starts working ~7/2013 (~23k on W2). I stay in LA and start working ~7/2013 (~23k on W2). I'll be moving to MO in ~7/2014 and our wages will remain nearly identical.

Since we're effectively paying for two households with separate finances that are effectively 23k/yr, my expectation was that we'd be refunded almost the full amount of state income tax. For some reason, TurboTax MO forces me to file as "partial resident filing as nonresident" or "partial resident filing as resident". Hell- I had to put down being a "resident" in MO from 12/31/13 to 12/31/13. Either way, this includes both our incomes but doesn't allow me to exclude my non-MO income from MO income tax. So instead of refunding the ~900, we're refunded ~400. LA allows me to exclude my wife's income from LA, so I'm being refunded ~900.

What am I doing wrong here?

 

[harobikes333]

Got advise from tax professional. I figured someone would have known the answer to my question by now.
Removed question.
Sincerely,
Procrastinating Tax Payer

 

[Muse]

I'm using Turbotax. In the past I have paid the property taxes on my home (house) in 2 separate installments. The bills I get from the county are for fiscal year July 1 - June 30. So, I usually pay 1/2 the total bill in November and the other 1/2 in April.

Thus, I paid amount X in April 2013, 1/2 of the fiscal year 2012-2013 tax bill, the first 1/2 of which I paid in Nov. 2012. This year, however, I paid the entire house property tax amount for fiscal year 2013-2014 in November 2013, instead of paying the 2nd 1/2 in April 2014. It wasn't due until April 2014, but I paid it in Nov. 2013. What should I enter for taxes paid on my house for tax year 2013? I figure it can be either the amount I paid in April 2013 plus 1/2 the amount I paid in November 2013 or I could enter the amount I paid in April 2013 plus the total amount I paid in November 2013. I tried calling the IRS but evidently they don't have live agent help anymore (I couldn't get any and a message said they weren't doing it). Thanks for the help.

Edit: Heck, I hope I didn't blow it. I'm about to transmit (efiling) my return to the IRS. I have only included 1/2 of what I paid in Nov. 2013 for fiscal 2013-2014 on my 2013 taxes. Seems reasonable, but the tax code, well, I suppose it's not always reasonable. I have to make a decision, no IRS person was available to me, I'm filing....

 

[Muse]

I'm using Turbotax. In the past I have paid the property taxes on my home (house) in 2 separate installments. The bills I get from the county are for fiscal year July 1 - June 30. So, I usually pay 1/2 the total bill in November and the other 1/2 in April.

Thus, I paid amount X in April 2013, 1/2 of the fiscal year 2012-2013 tax bill, the first 1/2 of which I paid in Nov. 2012. This year, however, I paid the entire house property tax amount for fiscal year 2013-2014 in November 2013, instead of paying the 2nd 1/2 in April 2014. It wasn't due until April 2014, but I paid it in Nov. 2013. What should I enter for taxes paid on my house for tax year 2013? I figure it can be either the amount I paid in April 2013 plus 1/2 the amount I paid in November 2013 or I could enter the amount I paid in April 2013 plus the total amount I paid in November 2013. I tried calling the IRS but evidently they don't have live agent help anymore (I couldn't get any and a message said they weren't doing it). Thanks for the help.

Edit: Heck, I hope I didn't blow it. I'm about to transmit (efiling) my return to the IRS. I have only included 1/2 of what I paid in Nov. 2013 for fiscal 2013-2014 on my 2013 taxes. Seems reasonable, but the tax code, well, I suppose it's not always reasonable. I have to make a decision, no IRS person was available to me, I'm filing....

Well, it may not matter very much because after all the rigamarole of entering in my deductions down to the last penny, Turbotax Premier decided to give me the Standard Deduction. It was a surprise to me because the last year or two it did not. I really am a tax idiot for the most part. I suppose it might be worth it to hire a tax pro, it might have saved me some money with the decisions I've made. But I've never done so, it kind of scares me how people get tangled up in the often convoluted complexities of the tax systems, which are in some degree a reflection of the quagmire of American society. Soul survival is paramount, not beating the system.

 

[SunnyD]

Having to figure out that I have to do forms for capital gains on $3 worth of nonqualified distributions is "fun".

 

[Leros]

I'm a bit confused about max IRA contributions. I was told to contribute the max of $17,500 to my IRAs, but it now seems like I was given bad advice. According to TurboTax, I can contribute a maximum of $5,500 to my IRAs. Seems like the 17,500 limit is for 401ks and the 5,500 limit is for IRAs. I'm a bit confused about the difference.

According to TurboTax, I'll be penalized every year for the excess contributions that I made this year unless I withdraw those contributions. My Fidelity plan apparently doesn't support withdrawals. What do I do here?