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My understanding is that the determination of ordinary vs qualified dividends can be relatively complex in some situations usually involving mutual funds. In addition bond premium amortization and original issue discount require additional calculations. Some of those items won't affect most people but I guess the brokerages don't want to send forms piecemeal.-OZ- said:
Online, download. But I do want to see their numbers.
Proof?
I'd be pretty happy getting between 0-$500 back.
Nope.
I'm not Oz, but I had us set it up that way to curb my wife's discretionary spending. The account balance is suppressed during the year and we agreed on a floor years ago - she sees it getting near there late in the month and the spending magically stops. Then when the refund comes in funnel the money to appropriate buckets immediately so it's only reflected in the checking account for a day or two.
I claim the maximum exemptions allowed by HR for my job and have no taxes taken out of my pension.
Makes sense, Although in your case I'd find ways to contribute to investments before she sees the money in checking.
Ok, good, congrats on that. Many times when I see folks that overpay, it's more due to things like the previous response where it is about curbing irresponsible spending. Glad to see it isn't the case for you.
That's pretty much it. 5 kids and I think this is our last year we'll get some back from the adoption credits.@-OZ- has so many kids it's almost impossible not to get a refund. Assuming his income is under $400,000 he would receive a $2,000 credit per child under 16, up to $1,400 of which is refundable even if his income tax liability is zero. I'm pretty sure he has like 20 kids
That's one thing my wife definitely gets right. She's not a total tight wad, but her tastes are reasonable. ( Other than wanting her fiefdom)
Mine is totally not a shopper. One of the things I loved about her right off the bat. Always looks great, but without paying to do so. Once I introduced her to savings, she got the bug bad! Loved when she saw the benefit of maxing her 401k (TSP) and IRA. She loves the monthly finance updates.
Your right where I was last year. Right on the line to itemize or not. Worst place to be. For 2019 I prepaid my charity stuff. It will save me 2k this tax year and 2k next by being away from the line. If you can engineer it aim for being over one year and under the next.
If you have consistent pay checks, it’s pretty easy to track yourself and have an accurate estimate.
Talk to a CPA because it's a bit more complex than that. The answer is yes but it's likely not the smart thing to do. If you're single you'd be losing out on the $12,200 standard deduction if you take the full $100K this year. Plus the next $9,875 is in the 10% bracket. While if you depreciate say over 5 years you'd be saving 22% on $20,000 each year based on your tax bracket of $100K - the standard deduction. Self Employment taxes come into play as well. On the surface I'd section 179 (expense) enough to drop you from the 22% to 12% bracket and depreciate the rest. Of course your other income/deductions come into play so I'd spend a couple hundred dollars and consult a tax professional if I were you.
This is a much more complicated question than how you've posed it, and is dependent on your personal situation. You should seek a CPA.
Pretty sure I have over 20 allowances and then add a specific dollar amount to withhold each pp to get it to where I want it.
Allowance dont exist anymore so if you change you’re supposed to fill out a new W-4 which does awat with allowances. Something else must be going on because in the past the more allowance you have the less taxes are taken out. Do you get bonuses or commission? Usually those have more taxes taken out than normal wages
Nope...but I got a 30% raise halfway through the year. That was the only significant change.
More specifically, this is for 2020. Definitely going to have a professional do our 2020 taxes, but trying to understand the possibilities we'll have this year. My wife started a business (single-member LLC) and we will be filing jointly. Guessing that for this year I'll have all the income (24% bracket) and she'll have plenty of deductions and minimal income the first year (mainly truck/SUV for the business, and acquiring all the assets (rather than inventory, since it's an event rental business.))Pipes said:
Yeah I'd talk with a CPA sometime in the spring. You'll likely need to pay estimates 1st one due April 15th. SE taxes are a ##### but there are things you can do to offset them like setting up a SEP (retirement) plan. A CPA can guide you through that but it's easier cash flow wise to set up stuff like that earlier in the year as opposed to later.
Yes, it was extended as part of the TCJA. Same old rules though - can't give you a loss, multiple layers of limitations at entity level and individual level, etc.
Why do people count on deductions? It is so much easier to just have a specific amount taken out of the paycheck. Or do some places not have that capability?
Because my w4 is single 0 and I used to be able to deduct 20ishk and would get about 1k but can't deduct 20k anymore because of the new laws
These things are much more confusing. I haven't done a new form yet. Kind of worried how the numbers will come out so I've just left mine alone. Seems like what I have now should be on a good pace for 2020, but I probably should go ahead and do a new W4 soon so I can figure out how to manipulate it to get the numbers to be what I want.
I just changed mine using the new form. I will see how it works out and readjust if needed.
I just helped my wife fill one out for a new job. So confusing. I have no idea how hers will come out but I'll just adjust mine as needed if it doesn't do a good job on hers.
Correction - last year was our last year getting the credit :(
