2013 Annual Anandtech Tax Time Thread!

[mwtgg]

Thank you so much! That's the ballpark so I think I'm good. Thanks for all the great advice!

I'm going to assume he's permanently disabled and he's less than 65 years old. -Yes.

Also, was this a Roth IRA? - After a little research it looks like they rolled him over to a Traditional IRA because on his account page he has the option to convert to a Roth. Would this be a good idea since it appears there are less taxes with a Roth?


Did he receive any unemployment income? - No.

It would appear that this withdrawal isn't subject to an early distribution penalty, so just make sure that it isn't calculating.

It also seems like his AGI isn't going to be high in the future, so converting to a Roth doesn't make much sense.

 

[mwtgg]

My niece is a student and has nothing more than passbook savings income of a few dollars for the year, but she gets a 1099 form from her bank. Is she required to file a return?

Technically it depends on the amount, but I'm guessing it's not excess of $1,000 (assuming she's being claimed as a dependent), so no. I'm sure her resident state has its own filing requirement, but I'm also going to guess that she won't have to file there either.

 

[dullard]

I donated stocks from a taxable account to charity. The charity took well over a month to actually file the paperwork and collect the stocks. In the mean time, the stock value rose significantly. Is the tax deduction the value of the stocks when I gave the paperwork to the charity? Or is the tax deduction the value of the stocks when they were removed from my account?

When I realized how much better it was to donate stocks than cash, I'll never donate cash again.

Thanks.

 

[bradly1101]

It would appear that this withdrawal isn't subject to an early distribution penalty, so just make sure that it isn't calculating.

It also seems like his AGI isn't going to be high in the future, so converting to a Roth doesn't make much sense.

Thanks! Yeah it was a disability distribution, so no penalty.

I was reading up on the Roth, but it was never spelled out as easily as you put it. Thanks again!

 

[CPA]

I donated stocks from a taxable account to charity. The charity took well over a month to actually file the paperwork and collect the stocks. In the mean time, the stock value rose significantly. Is the tax deduction the value of the stocks when I gave the paperwork to the charity? Or is the tax deduction the value of the stocks when they were removed from my account?

When I realized how much better it was to donate stocks than cash, I'll never donate cash again.

Thanks.

Here's the IRS rule.

Stock certificate. A properly endorsed stock certificate is considered delivered on the date of mailing or other delivery to the charity or to the charity's agent. However, if you give a stock certificate to your agent or to the issuing corporation for transfer to the name of the charity, your contribution is not delivered until the date the stock is transferred on the books of the corporation.

 

[dullard]

Here's the IRS rule.

Stock certificate. A properly endorsed stock certificate is considered delivered on the date of mailing or other delivery to the charity or to the charity's agent. However, if you give a stock certificate to your agent or to the issuing corporation for transfer to the name of the charity, your contribution is not delivered until the date the stock is transferred on the books of the corporation.

I did not give endorsed stock certificates. I gave the charity paperwork requesting them to withdraw a certain number of stocks once they have filed out their portion of the paperwork. Thus am I going with the latter half of that statement "your contribution is not delivered until the date the stock is transferred on the books of the corporation".

Thank you.

 

[CPA]

I did not give endorsed stock certificates. I gave the charity paperwork requesting them to withdraw a certain number of stocks once they have filed out their portion of the paperwork. Thus am I going with the latter half of that statement "your contribution is not delivered until the date the stock is transferred on the books of the corporation".

Thank you.

I would do the same.

 

[fjmeat]

Has anyone ever heard of and/or used Ultra Tax CS (by Thomson Reuters)? Just wondering.

 

[raildogg]

I am trying to get a 1099-Misc so I can give to my contractor. What is a good way to obtain one? I can't just print the one from the IRS website since one of the pages is in red and won't be able to scan (according to the IRS instructions). Do I just ask my payroll provider for it? Is there anywhere else?

I would appreciate any response.

Thank you for providing this thread.

 

[mwtgg]

I am trying to get a 1099-Misc so I can give to my contractor. What is a good way to obtain one? I can't just print the one from the IRS website since one of the pages is in red and won't be able to scan (according to the IRS instructions). Do I just ask my payroll provider for it? Is there anywhere else?

I would appreciate any response.

Thank you for providing this thread.

I'm sure your payroll company will do them for you. However, you can purchase blank 1099 stock from an office supply store, or Amazon.

 

[CPA]

I'm sure your payroll company will do them for you. However, you can purchase blank 1099 stock from an office supply store, or Amazon.

Yep office Depot carries them along with the corresponding 1096 which he will need to send to the irs

 

[mwtgg]

Yep office Depot carries them along with the corresponding 1098 which he will need to send to the irs

I don't understand why the IRS won't allow 1096/1099/etc to be printed off their website. Or even produce a software which allows for it to be uploaded directly to them for free. It just makes for a complicated system with all of these middlemen.

Don't even get me started on the payroll reporting side of things.

 

[CPA]

I don't understand why the IRS won't allow 1096/1099/etc to be printed off their website. Or even produce a software which allows for it to be uploaded directly to them for free. It just makes for a complicated system with all of these middlemen.

Don't even get me started on the payroll reporting side of things.

lol, I just noticed I put 1098 instead of 1096. That's for the subtle correction.

As for the IRS, well, they are a government agency and it doesn't help they use Assembler and COBOL still. The recent upgrades have been a disaster.http://www.nytimes.com/2003/12/11/business/at-irs-a-systems-update-gone-awry.html

 

[highland145]

I don't understand why the IRS won't allow 1096/1099/etc to be printed off their website. Or even produce a software which allows for it to be uploaded directly to them for free. It just makes for a complicated system with all of these middlemen.

Don't even get me started on the payroll reporting side of things.

It is amazing the amount of reporting/payments/stuff that has to be done for a business. Quite the deterrent.

Pay fed/state tax monthly
file fed/state quarterly/annual reports
state unemployment, quarterly
federal unemployment, yearly
w-2/w-3/w-4/1099/1096
i-9/e-verify
pay the cpa to rape me for the tax return
S.C. new hire(looking for child support deadbeats)
city/county ffe tax
city business license
secretary of state, yearly

business specific, for me,
credit grantor
maximum rate filing
agency/individual insurance licenses
board of financial institution license
consumer finance annual report


plus whatever I've forgotten from above and the associated penalties.🙁

Edit: track all the passwords to log into sites for the above.

 

[Axon]

Has there been any change to the income threshold for crediting student loan interest? I pay enough on my loan that would be eligible for a max student loan interest credit, but I made too much income last year.

 

[bradly1101]

I forgot one question about deducting medical bills. For receipt purposes he has all the cancelled check images to the providers, but did not save all the pharmacy receipts. I copied all the debit transaction records to the pharmacy from his bank just by copying from his online account records. Would those suffice as receipts if he ever got audited?

 

[mwtgg]

Has there been any change to the income threshold for crediting student loan interest? I pay enough on my loan that would be eligible for a max student loan interest credit, but I made too much income last year.

Student loan interest is deductible the lesser of actual interest paid or $2,500. For a taxpayer filing single, it is fully deductible up to $60k and fully phases out at $75k. For MFJ, it is up to $125k and fully phases out at $155k.

 

[mwtgg]

I forgot one question about deducting medical bills. For receipt purposes he has all the cancelled check images to the providers, but did not save all the pharmacy receipts. I copied all the debit transaction records to the pharmacy from his bank just by copying from his online account records. Would those suffice as receipts if he ever got audited?

Generally, a cancelled check or bank statement would be sufficient in this instance, but to be safe the national pharmacies will provide a tax statement if requested. If you use a local pharmacy, I'm not sure but it can't hurt to ask.

 

[bradly1101]

Generally, a cancelled check or bank statement would be sufficient in this instance, but to be safe the national pharmacies will provide a tax statement if requested. If you use a local pharmacy, I'm not sure but it can't hurt to ask.

Thanks! I hadn't thought of that. It's Rite-Aid and Costco, so I'll check it out.

 

[highland145]

When is the last day for a personal tax deposit for 2013? I sold the daycare 12/31/1013, corp sub s, and I'm going to owe on the profit on the k-1.

Thanks.

If my damn cpa would call me back....

 

[Axon]

Student loan interest is deductible the lesser of actual interest paid or $2,500. For a taxpayer filing single, it is fully deductible up to $60k and fully phases out at $75k. For MFJ, it is up to $125k and fully phases out at $155k.

MFJ?

 

[highland145]

MFJ?

married filing joint

 

[CPA]

When is the last day for a personal tax deposit for 2013? I sold the daycare 12/31/1013, corp sub s, and I'm going to owe on the profit on the k-1.

Thanks.

If my damn cpa would call me back....

Tomorrow, January 15th

 

[highland145]

Tomorrow, January 15th

Thanks. Still haven't heard from her.

I fired the last one for this. Started looking last year because of the same thing and one of the cpa's I called must have called her because she contacted me within 30 minutes. My brother fired his last one for the same crap and his new one has started it even after he warned her. It's not like we call at the busiest filing time of the year or even once every couple of months. But when I paid $2K+ for the 2 corps and personal filings last year, you'd better effing return my call.😡

 

[ultimatebob]

The folks in the Video Cards and Graphics forum are probably wondering how to properly account for their capital gains or losses that they made mining Litecoin last year.

That said, the US government probably doesn't even consider Litecoin to be a real asset yet, so they might be off the hook. Wadda you think?