** UNOFFICIAL 2019 TAX THREAD **

shortylickens

No Lifer
Jul 15, 2003
80,287
17,079
136
(I cant find the official 2019 tax thread, and I looked.)

A number of sources are now saying we have until July to FILE our taxes.
Anyone think they will be getting a fat refund this year?
 

highland145

Lifer
Oct 12, 2009
43,931
6,308
136
The fed will probably delay but the states need to, too. And probably will but check.

$3600, fed/state.

Don't try and get ahead, make more $$, make a better life for your family. $11K in rental losses (depreciation/hvac, etc) can't take. Make too much $$. Student tuition credits can't have. Make too much $$. May not have gotten the state 529 contribution deduction either. I'll have to check. "Looks like" we make too much to get the possible govt. giveaway. Make too much $$. And I'm not the typical ATOT baller making 3, 4, 5x over the limit either. Perk lets me stay because I pay my membership dues.
 
Nov 8, 2012
20,828
4,777
146
The fed will probably delay but the states need to, too. And probably will but check.

$3600, fed/state.

Don't try and get ahead, make more $$, make a better life for your family. $11K in rental losses (depreciation/hvac, etc) can't take. Make too much $$. Student tuition credits can't have. Make too much $$. May not have gotten the state 529 contribution deduction either. I'll have to check. "Looks like" we make too much to get the possible govt. giveaway. Make too much $$. And I'm not the typical ATOT baller making 3, 4, 5x over the limit either. Perk lets me stay because I pay my membership dues.

Still up in the air as far as who qualifies for the "govt. giveaway" - but I think as long as you make < $200k combined (married filing joint) you will likely get SOMETHING since it phases out. Also my understanding is that it will based on how much money you made in 2018 - because that is the last tax records that they officially have for everyone to go by...

Anyhow, I filed my taxes back in February, owed about $500. Even with an expensive house I still don't qualify for anything outside of the standard deduction.
 

ponyo

Lifer
Feb 14, 2002
19,688
2,810
126
Maybe the IRS will shutdown forever. We can only dream. I can only dream of refund. That must feel really nice.
 

bbhaag

Diamond Member
Jul 2, 2011
6,892
2,258
146
We just paid our estimated Federal and State quarterlies for 2020 and it came out at roughly $6800. On the personal side we paid $6600 to the Feds and $21 to the State. We also paid $6600 in property this year.
So this year in taxes we owed a little over $20,000. Not bad all things considered.....
 

brianmanahan

Lifer
Sep 2, 2006
24,417
5,851
136
We just paid our estimated Federal and State quarterlies for 2020 and it came out at roughly $6800. On the personal side we paid $6600 to the Feds and $21 to the State. We also paid $6600 in property this year.
So this year in taxes we owed a little over $20,000. Not bad all things considered.....

do you do quarterlies or just pay it all at filing time?

Q2 payments due over the next couple of weeks
 
Nov 8, 2012
20,828
4,777
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do you do quarterlies or just pay it all at filing time?

Q2 payments due over the next couple of weeks

Pretty sure if you make over certain amounts you have to pay estimates on a quarterly basis.

Though I'm not in that boat, so I can't say with certainty.
 

brianmanahan

Lifer
Sep 2, 2006
24,417
5,851
136
Pretty sure if you make over certain amounts you have to pay estimates on a quarterly basis.

Though I'm not in that boat, so I can't say with certainty.

yah i think there's a penalty if you don't and owe too much

Q2 always sneaks up on me because it's only 2 months long, which is weird
 

Dr. Detroit

Diamond Member
Sep 25, 2004
8,257
713
126
Pretty sure if you make over certain amounts you have to pay estimates on a quarterly basis.

Though I'm not in that boat, so I can't say with certainty.

You don't have to pay quarterly, no matter the income - you just get a penalty at the end of the year. I owe almost $200K on top of what was pulled from my W-2 and got hit with about $2,500 of penalties.
 

bbhaag

Diamond Member
Jul 2, 2011
6,892
2,258
146
do you do quarterlies or just pay it all at filing time?

Q2 payments due over the next couple of weeks
We pay all our estimated quarterlies at one time. It's better that way because we have the cash on hand.
Pretty sure if you make over certain amounts you have to pay estimates on a quarterly basis.

Though I'm not in that boat, so I can't say with certainty.
I thought you worked for the big three?.....Estimated quarterlies can be paid all at once or quarterly I guess.....hence the term "Quarterly". Anyway, we always pay them all at one time.
 
Nov 8, 2012
20,828
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I thought you worked for the big three?.....Estimated quarterlies can be paid all at once or quarterly I guess.....hence the term "Quarterly". Anyway, we always pay them all at one time.

Big 4 you mean? Haha, yeah - I come from there.

Yeah, I do - but the one caveat I'll say is that taxation is... well... complex. It's complex to the point where in the Big 4 (and in anyone who CLAIMS to know taxation) that they are split between expertise. Anyone who claims to be an expert in all taxation is a moron who is trying to fool you. They don't exist. Someone might have a good idea of taxation in general, but there is no one who is an expert in overall taxation. It's simply too complex. Hell, when it comes to State/Local taxes (SALT) it is so complex that expertise is down to the state level here in the US. So if we ever had a question on something of a tax in IL, someone would tell you "Yeah, Bob knows IL - give him a call and he can talk to you about that".

In terms of taxation - below are ENTIRE DEPARTMENTS that I can think of when I was going through Big 4
Direct Tax - Deals with tax that directly impacts a company... So Income tax mostly.
Indirect Tax - Any tax that does NOT directly impact a company... So Sales/Use, Excise, etc... It's very broad, so typically people specialize.
Excise Tax - A division of Indirect Tax - but it still gets into more complex topics such as Oil/Gas tax which is based on gallons of fuel, not based on a percentage of goods sold.
Legal Tax Advice - More of a lawyer department instead of an tax department
Tax Audit

Then you get into more niche things like Estate taxes, Inheritance taxes, payroll taxes, property taxes, VAT.... Then you get into global trade with the likes of tariffs... The list just goes on and on. On top of that - there is the concept of collecting the taxes, vs. reporting the taxes (compliance).

Personally, I am well versed in Indirect Tax. That means, Sales/Use Tax, Excise Tax, VAT, etc... These are referred to as Indirect Tax because the people reporting the tax (Companies) are not the ones the tax is imposed on. It's typically imposed on the general consumer, and the companies remit the taxes to the jurisdiction.

I have a very mid-level grade of knowledge on personal income taxes because a little bit flows over since I file a return every year.... So when it comes to things like Income returns for businesses I legitimately have very little knowledge there.


Since @Dr. Detroit comes from this type of background as well he can probably clarify better than I can.
 
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snoopy7548

Diamond Member
Jan 1, 2005
8,126
5,151
146
Did my taxes back in February. I think I got around $1-1.5k back; been itemizing since I bought my house almost eight years ago.
 
Nov 8, 2012
20,828
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Did my taxes back in February. I think I got around $1-1.5k back; been itemizing since I bought my house almost eight years ago.

Even with the doubling of the standard deduction?

Damn you're either single - or you're paying an epic fuckton in mortgage interest.
 

zinfamous

No Lifer
Jul 12, 2006
111,131
30,082
146
yep, I was about $1.5k over the standardized deduction, so I itemized again this year. I also only pay ~1/2 of the annual real estate tax because of MD income-based rebate.
 
Nov 8, 2012
20,828
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Figured I might as well confirm here:

Is there any limitations to the number of months I can pre-pay on my mortgage? For the mortgage interest deduction, I know it's typical for people to pre-pay their mortgage by 1-month, so tehjy can effectively pay the mortgage interest on it for 13-months and be able to use that on their tax return.

But my question is specifically can I continue and just do.... say... an addition 6 months of payments in December and have all that mortgage interest stack up?



I'm used to filing standard deduction these days or I would probably know this.
 

zinfamous

No Lifer
Jul 12, 2006
111,131
30,082
146
Figured I might as well confirm here:

Is there any limitations to the number of months I can pre-pay on my mortgage? For the mortgage interest deduction, I know it's typical for people to pre-pay their mortgage by 1-month, so tehjy can effectively pay the mortgage interest on it for 13-months and be able to use that on their tax return.

But my question is specifically can I continue and just do.... say... an addition 6 months of payments in December and have all that mortgage interest stack up?



I'm used to filing standard deduction these days or I would probably know this.

I seem to recall there being a timed limit on that, and I thought it was limited specifically to that gap period when the GOP billionaire bailout went into effect, so I don't think it had an annual allowance? Also, do you have to specifically earmark funds being paid into interest and not directly into principal? I guess you would. ...but that doesn't make as much sense to me, as just going all in on principle seems to be the better real savings, regardless of annual liability.

Anyway, I always thought there was a hard limit to number of months. Otherwise, you could just pay off the mortgage and all interest at once--I guess you can't then spread that deduction out over several tax years like you can with real losses, can you?
 
Nov 8, 2012
20,828
4,777
146
I seem to recall there being a timed limit on that, and I thought it was limited specifically to that gap period when the GOP billionaire bailout went into effect, so I don't think it had an annual allowance? Also, do you have to specifically earmark funds being paid into interest and not directly into principal? I guess you would. ...but that doesn't make as much sense to me, as just going all in on principle seems to be the better real savings, regardless of annual liability.

Anyway, I always thought there was a hard limit to number of months. Otherwise, you could just pay off the mortgage and all interest at once--I guess you can't then spread that deduction out over several tax years like you can with real losses, can you?

No timed limit that I'm aware of (but also why I'm asking). Some googling doesn't seem to indicate there is, but I'm guessing this question doesn't get asked all that often.

Basically on my mortgage website I can designate my payments to be towards the next monthly payment, additional principal, or next monthly payment + additional principal.

But yeah, I'm going to be fairly close to the standard deduction this year, so I'm contemplating paying 6 or even up to 12 months of my mortgage off just to stack the mortgage interest for this year.
 

iRONic

Diamond Member
Jan 28, 2006
7,467
2,738
136
Bumping to ask;

Will there be a
** UNOFFICIAL 2020 TAX THREAD **
thread?
 

Mermaidman

Diamond Member
Sep 4, 2003
7,987
93
91
I can't find a more recent tax thread...Basically I'm wondering are contributions to traditional IRA and SEP IRA all deductible.

Sole proprietor in 2022
Hypothetical income $50,000
Contribute $6,000 to a traditional IRA
Contribute $9,000 to SEP IRA
Question: Are the total contributions of $15,000 all tax deductible?
 
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