Octopus Overlords

Scuzz wrote: Thu Jul 16, 2020 3:16 pm

Kraken wrote: Wed Jul 15, 2020 9:46 pm I mailed in -- yes, on paper -- my late BIL's final tax return. You'd think it would be simple...I thought it would...because he had zero real income, just premature withdrawals from his IRA. But no. In addition to the 1040, I had to fill out Schedules 1-3 and four forms to support them. Fortunately, I had his previous year's return to use as a guide. I didn't have enough of his financial records to itemize deductions, but I managed to finagle a $2,200 refund for the estate. Which is us.

I mailed his state and city returns last week. I'm hoping to get the federal refund before his property taxes are due at the end of August, because we still haven't unloaded his house.

I also filed and paid my own Q2 payroll taxes today, and our own property taxes are due in two weeks.

Taxes are never done.

I hate to burst your bubble but currently the IRS (my employer) is working on tax returns from March. I was home from March 19th to June 29th and so was almost everyone in the building I work in. I do think with the new July 15th date refunds are supposed to be out by the end of August, so it may happen, but it will probably be really hard to meet that. But we are working over time already.

Well, do me a solid and move his to the top of the pile. TIA.

My sister wants her refund done first.

Kraken wrote: Wed Jul 15, 2020 9:46 pm we still haven't unloaded his house.

would it be at all worth it to convert that into a rental property, or is it too much expense and (ongoing) effort?

coopasonic wrote: Thu Jul 16, 2020 2:54 pm

Smoove_B wrote: Thu Jul 16, 2020 2:16 pm

El Guapo wrote: Thu Jul 16, 2020 2:12 pm An automatic transfer into a 401(k), for example.

For retirement? Nobody is ever retiring again.

A friend sent me a text last week that he was 998 days from retirement (when he'll turn 67.5). Just for fun, I did the math. 7077 days.

If I could commit to living on a LordMortis type budget I can probably retire the day my youngest graduates from college (we're planning to pay for 4 years and if you graduate in that time, congrats, if not, suck it). Assuming that is still a thing. It would be 12 years from now, pretty close to the day I turn 60. House is paid off in 4 years which is when the oldest would start college and the kids are perfectly spaced at 4 school years. If I can survive the next big stock market implosion, I should be good to go.

7192 for me to hit 67. My plan, though, has me retiring at 64. My last kid is scheduled to graduate college when I'm 58, so might be possible sooner if I get better paying jobs. But that would mean more responsibility and who wants that??

stessier wrote: Thu Jul 16, 2020 4:40 pm But that would mean more responsibility and who wants that??

People that want more money?

hitbyambulance wrote: Thu Jul 16, 2020 4:18 pm

Kraken wrote: Wed Jul 15, 2020 9:46 pm we still haven't unloaded his house.

would it be at all worth it to convert that into a rental property, or is it too much expense and (ongoing) effort?

The hurdle is making a trip to Lansing to trash the place out. Myself, I'd just hire a crew to empty it. But it's Wife's childhood home. There are some objectively valuable things among all the junk, and some things with emotional value. She needs to go through it herself (with helpers).

I haven't been there since Paul died, but she describes it as uninhabitable. It should sell if we can only empty it out and give it a good cleaning.

stessier wrote: Thu Jul 16, 2020 4:40 pm 7192 for me to hit 67. My plan, though, has me retiring at 64. My last kid is scheduled to graduate college when I'm 58, so might be possible sooner if I get better paying jobs. But that would mean more responsibility and who wants that??

Me! Me! If my daughter finishes college in the normal minimum I'll be 77. Can't even think of retiring before then, although my wife likes to fantasize about me retiring more than a decade earlier.

I applied for several jobs today and they asked for my salary expectations. I had an interview last week and it was suggested by the interviewer that my last salary was on the low side (not surprised). So I increased it 10%, which is still on the low end of the salary survey he sent me.

I intend to retire the day I reach 66.5, 1183 days from now, where "retire" just means start drawing SS. I don't intend to stop working until my body decides that I should. Right now I'm betting my eyes will be the first to buckle.

Did everything remotely with my tax man this year, filled out a quick questionnaire online. Took pictures of my forms and forwarded them to him. Already got my refunds by auto deposit = $432 state, $682 fed. Already bought a 72" TV for the family in anticipation.

My accountant finally acknowledged receiving my stuff. No word on when it might be done.

Wife is hoping otherwise, but I'm anticipating a major fisting. We would have been hammered last year if we weren't able to write off expenses several times more than the income from Google. Last year she had no Google income, although there was still expense that now can't be written off.

Mine are done but not turned in. We took a hit from pulling money from a 403B when my wife retired, as she didn't trust the company managing it. We also took a big hit on the child tax credit expiring for my daughter who turned 17 last year. Holding for the pandemic relief bill, which may enable tax credit again for 17 year olds, which would save me a lot of money. Still probably paying out if that happens, but nowhere near as much.

Unless you are e-filing I wouldn't expect a refund for quite awhile.

Make sure you include everything. Even copies of w-2's which are technically not required. Anything that could possibly delay a return will add months.

Malificent wrote:We also took a big hit on the child tax credit expiring for my daughter who turned 17 last year. Holding for the pandemic relief bill, which may enable tax credit again for 17 year olds, which would save me a lot of money.

Wat? They might do that? I filed this morning, disappointed in losing that sweet $2500 tax credit. But given that it’s March and they are still debating this crap, how would they handle that for people that already filed?

RunningMn9 wrote: Fri Mar 05, 2021 4:34 pm

Malificent wrote:We also took a big hit on the child tax credit expiring for my daughter who turned 17 last year. Holding for the pandemic relief bill, which may enable tax credit again for 17 year olds, which would save me a lot of money.

Wat? They might do that? I filed this morning, disappointed in losing that sweet $2500 tax credit. But given that it’s March and they are still debating this crap, how would they handle that for people that already filed?

Don't they send you check (or a bill) if it is wrong?

RunningMn9 wrote: Fri Mar 05, 2021 4:34 pm

Malificent wrote:We also took a big hit on the child tax credit expiring for my daughter who turned 17 last year. Holding for the pandemic relief bill, which may enable tax credit again for 17 year olds, which would save me a lot of money.

Wat? They might do that? I filed this morning, disappointed in losing that sweet $2500 tax credit. But given that it’s March and they are still debating this crap, how would they handle that for people that already filed?

You can always file an amended return.

Which must be mailed.

We got our info packet to the CPA before the end of February and I sent him my corporate QB file before that. Haven't heard anything from him, but we seldom do until 4/15. Wife had $9k in teaching income with no federal tax withheld, and my business loss was very small this year, so those two things bode ill. However, we got a hefty refund last year, so maybe they will put us closer to break-even this year.

Last July I filed the 2019 return for my late BIL's estate. My first pass came up owing $2400 because he didn't make his required quarterly estimated payments -- he had zero real income and was living off a rapidly dwindling IRA, but because he was only 60 he owed a 10% early withdrawal penalty on top of his taxes. Well, I got creative and turned that loss into a $800 refund by diving deep into some obscure schedules and worksheets on a second pass. Crickets, until we got a bill for $2400 a few weeks ago. I was right the first time. Oh well, can't blame a guy for trying. If the IRS sends us a $2800 stimulus next month we'll be just about back where we started.

Kraken wrote: Fri Mar 05, 2021 5:21 pm We got our info packet to the CPA before the end of February and I sent him my corporate QB file before that. Haven't heard anything from him, but we seldom do until 4/15. Wife had $9k in teaching income with no federal tax withheld, and my business loss was very small this year, so those two things bode ill. However, we got a hefty refund last year, so maybe they will put us closer to break-even this year.

Last July I filed the 2019 return for my late BIL's estate. My first pass came up owing $2400 because he didn't make his required quarterly estimated payments -- he had zero real income and was living off a rapidly dwindling IRA, but because he was only 60 he owed a 10% early withdrawal penalty on top of his taxes. Well, I got creative and turned that loss into a $800 refund by diving deep into some obscure schedules and worksheets on a second pass. Crickets, until we got a bill for $2400 a few weeks ago. I was right the first time. Oh well, can't blame a guy for trying. If the IRS sends us a $2800 stimulus next month we'll be just about back where we started.

His estate still exists? If not, why not let the IRS do their worst. What are they going do, put a lien on his grave site?

They’ll put alien on the assets passing to family. And once you take responsibility, you’re in charge of filing the taxes too. So the IRS gets to hunt Kraken if they choose.

Jeff V wrote: Fri Mar 05, 2021 10:35 pm

Kraken wrote: Fri Mar 05, 2021 5:21 pm We got our info packet to the CPA before the end of February and I sent him my corporate QB file before that. Haven't heard anything from him, but we seldom do until 4/15. Wife had $9k in teaching income with no federal tax withheld, and my business loss was very small this year, so those two things bode ill. However, we got a hefty refund last year, so maybe they will put us closer to break-even this year.

Last July I filed the 2019 return for my late BIL's estate. My first pass came up owing $2400 because he didn't make his required quarterly estimated payments -- he had zero real income and was living off a rapidly dwindling IRA, but because he was only 60 he owed a 10% early withdrawal penalty on top of his taxes. Well, I got creative and turned that loss into a $800 refund by diving deep into some obscure schedules and worksheets on a second pass. Crickets, until we got a bill for $2400 a few weeks ago. I was right the first time. Oh well, can't blame a guy for trying. If the IRS sends us a $2800 stimulus next month we'll be just about back where we started.

His estate still exists? If not, why not let the IRS do their worst. What are they going do, put a lien on his grave site?

We haven't been able to go there and deal with it because there's apparently some kind of bug going around. There's no way we're traveling anywhere, and because we're so old we'd be of limited utility if we did. We just paid someone to trash out the house this week. Paul was a hoarder, and this is Wife's childhood home, so it took 2.5 dumpsters. They found some valuables (a diamond, baseball cards going back 50 years, a coin collection) and some sentimental shit that they'll box up and ship to us. Next step is getting a realtor. We want to unload the house before the next property tax bill comes due.

I have absolutely no idea what any of this means for taxes but there's going to be a lot to settle when the house finally goes.

Zarathud wrote: Fri Mar 05, 2021 11:50 pm They’ll put alien on the assets passing to family. And once you take responsibility, you’re in charge of filing the taxes too. So the IRS gets to hunt Kraken if they choose.

I won't file any more returns myself. If all of the stuff I wrote above leads to more taxation, I'll let our CPA sort it out, even if that involves aliens.

$2940 refund. My total tax burden for 2020 is $226 more than in 2012 .

Effective Tax Rate
2020 - 9.87%
2019 - 10.31%
2018 - 11.31%
2017 - 10.16%
2016 - 10.33%
2015 - 11.65%
2014 - 11.03%
2013 - 13.47%
2012 - 15.81%
2011 - 13.10%
2010 - 12.85%
2009 - 12.87%
2008 - 12.35%
2007 - 9.82%
2006 - 9.42%
2005 - 10.66%

I sent our CPA the annual "Yo, wassup?" email today and haven't heard back yet. If we're going to owe money, I need to move some savings to cover it, like, now. I guess I had better do that just in case, because the "Here's wassup dawg" reply usually comes a few hours before the deadline.

I'm hoping we break even, where breakeven = within $1,000 one way or the other.

Just sent my check to uncle sam... I changed things around, and ended up owing over 1k. But hey better than loaning the government my money interest free. Wish it was a little closer, but I always seem to have it swing one way or the other. But hell with all the stimulus money they keep sending me, my debt keeps shrinking, so it was pretty easy to absorb this year.

My taxable income went up by 10%. Pretty sure my gross didn't go up my that much. No significant change in capital losses or gains (most of my 2020 gains are in 401K or on paper). Waiting on explainer from accountant.

LawBeefaroni wrote: Thu May 13, 2021 9:02 am My taxable income went up by 10%. Pretty sure my gross didn't go up my that much. No significant change in capital losses or gains (most of my 2020 gains are in 401K or on paper). Waiting on explainer from accountant.

I had to take a pay cut of about 10% because of Covid. I got it back, but for six months I was making less, so I made some bad adjustments.

LawBeefaroni wrote: Thu May 13, 2021 9:02 am My taxable income went up by 10%. Pretty sure my gross didn't go up my that much.

Still reaping the benefits of Trump's alt-tax cut I see.

Well, I screwed us over by being more honest than I had to be. Our CPA asked about our Schedule C deductions because Wife's business had no income last year, and I volunteered too much information. Those were legit expenses in producing her W-2 teaching income. Sched C is for self-employment income, which W-2 income is not, even though all the work was all done from home. Since I had put that in writing (email), he can't submit Sched C with his name on the return as the preparer. And a few years ago the Republicans nuked deductions for unreimbursed employee expenses, so there's no alternate way to recover any of it. The IRS is of the opinion that employees should ask their employers for reimbursement. Good luck with that. As Wife put it, adjunct professors rank just below furniture in the academic hierarchy.

Thanks to my ignorance of the rules and excessive honesty, our federal return went from a $300 refund to $1,300 owed...and we won't be filing Sched C again in the future unless Wife lands another 1099 job. Even if she does freelance again, which is doubtful, I was planning to run it through Kraken Enterprises. Gonna have to rethink that.

Me and my big mouth.

I haven't downloaded the finished return yet so IDK exactly what our effective tax rate was; I do know it's under 10% of AGI, so comfortably under 10% of actual gross.

What would it have cost to pay the accountant, not file, then pay another account and keep silent? Though I suppose the problem then is that there isn't enough time.

TheMix wrote: Fri May 14, 2021 9:31 pm What would it have cost to pay the accountant, not file, then pay another account and keep silent? Though I suppose the problem then is that there isn't enough time.

That, and I'd be knowingly cheating. Not going to go there.

My accountant just called to let me know that the W2 from my former employer has an error and is incomplete. That was a first from him with an ADP W2. Nice. Luckily they owe me a refund and we had to file an extension because two of my business partnerships had issues getting K-1s done on time. Just an oddball year where my tax prep has been more expensive than usual since it is so error laden. If only I could get ADP to pay for the time I'm getting charged for.

i e-filed and i got this message:

Form 8453 - Once the IRS has accepted your tax return, we'll provide Form 8453 for you to mail with your supporting documents.

er, what...???

because i did the stock sales summary, i have to mail in the actual transactions? i had no idea.

Just filed my taxes 30 minutes ago. Given I didn't work the most of 2020 and subsisted on Unemployment, things are pretty simple. Did wait till the last moment though.

Kasey Chang wrote: Mon May 17, 2021 1:43 am Just filed my taxes 30 minutes ago. Given I didn't work the most of 2020 and subsisted on Unemployment, things are pretty simple. Did wait till the last moment though.

I did Federal last week, just filed State today, had to pay them as well. It wasn't much, so there is that.

As a question for everyone, does anyone understand what the heck is going on with children tax credits and sending my money every month starting in July.

Because of my pay cut we are under the 150k this year, and I think I read if you are under 150k (Married filing jointly), starting in July the government is sending you 250/each for kids 6-17. Is that right?

Just wondering how that impacts the 2021 tax filing year, because I have never gotten a refund of that amount...ever.. I have three kids in that age rate so that's 750/month for 6 months is $4,500. So is that going to mean that I will take that away from my refund and that will cause me to owe more taxes at the end of the year? Just need to know what I need to know to adjust for this.. Or is this an additional tax credit for my kids, so it is a budget neutral tax impact? Or if I hit an income above 150k this year, but they used my 2020 income will I end up oweing all of the $4,500 credit advance, and then also my normal taxes owed.

Anyway, still doing lots of research, and have a few months, but want to make sure I am not doing anything silly and end up owing a ton of money because I crossed over a line.

RMC wrote: Mon May 17, 2021 9:09 am

Kasey Chang wrote: Mon May 17, 2021 1:43 am Just filed my taxes 30 minutes ago. Given I didn't work the most of 2020 and subsisted on Unemployment, things are pretty simple. Did wait till the last moment though.

I did Federal last week, just filed State today, had to pay them as well. It wasn't much, so there is that.

As a question for everyone, does anyone understand what the heck is going on with children tax credits and sending my money every month starting in July.

Because of my pay cut we are under the 150k this year, and I think I read if you are under 150k (Married filing jointly), starting in July the government is sending you 250/each for kids 6-17. Is that right?

Just wondering how that impacts the 2021 tax filing year, because I have never gotten a refund of that amount...ever.. I have three kids in that age rate so that's 750/month for 6 months is $4,500. So is that going to mean that I will take that away from my refund and that will cause me to owe more taxes at the end of the year? Just need to know what I need to know to adjust for this.. Or is this an additional tax credit for my kids, so it is a budget neutral tax impact? Or if I hit an income above 150k this year, but they used my 2020 income will I end up oweing all of the $4,500 credit advance, and then also my normal taxes owed.

Anyway, still doing lots of research, and have a few months, but want to make sure I am not doing anything silly and end up owing a ton of money because I crossed over a line.

There is supposed to be a way to opt out of receiving the checks, but I think the IRS said it wouldn't be active until June.

The tax credit for kids changed. It used to be $2k/kid and is now $3k/kid in the age range you mention. Yes, they are giving you an advance - it's not like the stimulus checks. You might have to pay this one back depending on how your taxes actually play out.

RMC wrote: Mon May 17, 2021 9:09 am Just wondering how that impacts the 2021 tax filing year, because I have never gotten a refund of that amount...ever.. I have three kids in that age rate so that's 750/month for 6 months is $4,500. So is that going to mean that I will take that away from my refund and that will cause me to owe more taxes at the end of the year? Just need to know what I need to know to adjust for this.. Or is this an additional tax credit for my kids, so it is a budget neutral tax impact? Or if I hit an income above 150k this year, but they used my 2020 income will I end up oweing all of the $4,500 credit advance, and then also my normal taxes owed.

Anyway, still doing lots of research, and have a few months, but want to make sure I am not doing anything silly and end up owing a ton of money because I crossed over a line.

Might be the right year to get a tax professional. One month of 1 child credit should pay for it and they may even be able to shake out a few extra bucks for you.

LawBeefaroni wrote: Mon May 17, 2021 9:23 am

RMC wrote: Mon May 17, 2021 9:09 am Just wondering how that impacts the 2021 tax filing year, because I have never gotten a refund of that amount...ever.. I have three kids in that age rate so that's 750/month for 6 months is $4,500. So is that going to mean that I will take that away from my refund and that will cause me to owe more taxes at the end of the year? Just need to know what I need to know to adjust for this.. Or is this an additional tax credit for my kids, so it is a budget neutral tax impact? Or if I hit an income above 150k this year, but they used my 2020 income will I end up oweing all of the $4,500 credit advance, and then also my normal taxes owed.

Anyway, still doing lots of research, and have a few months, but want to make sure I am not doing anything silly and end up owing a ton of money because I crossed over a line.

Might be the right year to get a tax professional. One month of 1 child credit should pay for it and they may even be able to shake out a few extra bucks for you.

Yeah, but I hate spending money on it, if all I have to do is read some of the rules and stuff. But I think you might be right..Sigh.. Thanks for the information everyone, it's always nice to come here for the group knowledge.

hitbyambulance wrote: Mon May 17, 2021 1:03 am i e-filed and i got this message:

Form 8453 - Once the IRS has accepted your tax return, we'll provide Form 8453 for you to mail with your supporting documents.

er, what...???

because i did the stock sales summary, i have to mail in the actual transactions? i had no idea.

Yep. That's how it works, unfortunately. I don't do stock sale summaries when I file my taxes for that reason.

RMC wrote: Mon May 17, 2021 9:29 am

LawBeefaroni wrote: Mon May 17, 2021 9:23 am

RMC wrote: Mon May 17, 2021 9:09 am Just wondering how that impacts the 2021 tax filing year, because I have never gotten a refund of that amount...ever.. I have three kids in that age rate so that's 750/month for 6 months is $4,500. So is that going to mean that I will take that away from my refund and that will cause me to owe more taxes at the end of the year? Just need to know what I need to know to adjust for this.. Or is this an additional tax credit for my kids, so it is a budget neutral tax impact? Or if I hit an income above 150k this year, but they used my 2020 income will I end up oweing all of the $4,500 credit advance, and then also my normal taxes owed.

Anyway, still doing lots of research, and have a few months, but want to make sure I am not doing anything silly and end up owing a ton of money because I crossed over a line.

Might be the right year to get a tax professional. One month of 1 child credit should pay for it and they may even be able to shake out a few extra bucks for you.

Yeah, but I hate spending money on it, if all I have to do is read some of the rules and stuff. But I think you might be right..Sigh.. Thanks for the information everyone, it's always nice to come here for the group knowledge.

Speak of the devil - updated info from an article today.

The Internal Revenue Service will send the payments on the 15th of the month, unless it falls on a holiday or weekend, through December. Eligible parents will receive $300 a month for each child under age 6 and $250 for each one ages 6 to 17.

Payments will be based on taxpayers' 2020 tax returns or their 2019 returns if the 2020 returns are not filed and processed yet.

To reach low-income households that don't typically file taxes, the agency is setting up a portal to allow them to submit their information. This will allow them to claim both the enhanced child tax credit and stimulus payments they might have missed. A similar online form existed last year to allow low-income Americans to receive the first round of stimulus checks from the March 2020 relief package.

Meanwhile, the IRS will also launch a separate portal to allow parents to update their address, bank account information and family size, as well as opt out of the monthly payments in favor of receiving the tax credit as a lump sum next year when they file their return. If a family's situation changes during the year, the IRS can adjust the payment when they file their 2021 tax return to claim the second half of the credit. Lower income taxpayers will not be required to return any overpayments, a senior administration official said.

Because people don't know how to withhold taxes anymore I ended up owing 1,800 this year. Normally that would suck balls but I knew it was coming and just put the money on the side. I also got so many stimulus checks that it really made it not matter all that much.

Octavious wrote: Mon May 17, 2021 4:15 pm Because people don't know how to withhold taxes anymore I ended up owing 1,800 this year. Normally that would suck balls but I knew it was coming and just put the money on the side. I also got so many stimulus checks that it really made it not matter all that much.

It boggles the mind. There's an amazing amount of wasted effort pushing money back and forth. I basically got, in terms of stimulus money, the same amount that I owed after taxes. I get that the idea is to get money to people "now dammit now", but for me it doesn't make a bit of difference other than having to do an extra worksheet on my tax form.