Tax Season

willeyeam
Posts: 39523
Joined: Wed Mar 25, 2015 12:49 pm
Location: hodgepodge of nothingness

Tax Season

Postby willeyeam » Mon Jan 24, 2022 2:53 pm

mac i will loan you some cash at 8% if you want so you can deduct some interest

mac5155
Posts: 13813
Joined: Wed Mar 25, 2015 12:47 pm

Tax Season

Postby mac5155 » Mon Jan 24, 2022 4:11 pm

I LIKE DEDUCTIONS ALRIGHT

MrKennethTKangaroo
Posts: 12368
Joined: Sat Mar 28, 2015 3:50 pm

Tax Season

Postby MrKennethTKangaroo » Mon Jan 24, 2022 4:21 pm

Mac you are missing out on like $600 of deductions. I'm that lack of student loan deduction is eating into your spending on half hog purchases/redneck toy purchases/daycare. Thoughts and prayers

mac5155
Posts: 13813
Joined: Wed Mar 25, 2015 12:47 pm

Tax Season

Postby mac5155 » Mon Jan 24, 2022 4:51 pm

I mean that's like a month's supply of Miller lite 30 racks idk about you but I feel like that's a better way to spend it than uncle Sammy can come up with

mac5155
Posts: 13813
Joined: Wed Mar 25, 2015 12:47 pm

Tax Season

Postby mac5155 » Mon Jan 24, 2022 4:52 pm

That new gig of yours come with a signing bonus? Maybe you can cushion my fall

King Colby
Posts: 17786
Joined: Wed Mar 25, 2015 6:35 pm

Tax Season

Postby King Colby » Mon Jan 24, 2022 5:56 pm

2 questions for the tax nerds:

1. Can someone dumb down the new child care refundable credit (or deduction)? Like... really dumb

2. Is it true that I can deposit funds into my HSA during Q1 2022 and take the deduction in 2021?

3. There is no three, just 2. Remember I'm dumb.

Beveridge
Posts: 5336
Joined: Wed Mar 25, 2015 6:17 pm
Location: 8-8-1

Tax Season

Postby Beveridge » Mon Jan 24, 2022 9:26 pm

1. Child under 6: 3,600 (otherwise 3,000) minus any payments you got July through December for each kid. Partial phase-out begins at 150k MFJ.

2. Yes, just like an IRA.

King Colby
Posts: 17786
Joined: Wed Mar 25, 2015 6:35 pm

Tax Season

Postby King Colby » Mon Jan 24, 2022 11:24 pm

1. Child under 6: 3,600 (otherwise 3,000) minus any payments you got July through December for each kid. Partial phase-out begins at 150k MFJ.

2. Yes, just like an IRA.
For #1 I mean more specifically this:

https://www.irs.gov/newsroom/child-and- ... redit-faqs

Beveridge
Posts: 5336
Joined: Wed Mar 25, 2015 6:17 pm
Location: 8-8-1

Tax Season

Postby Beveridge » Tue Jan 25, 2022 6:49 am

I'm sorry, I misread your question.

If you have 2 kids, you could potentially get 8,000 back. You are eligible to up to 50% back on 8,000 for one and 50% back on 16,000 for multiple.

There are phase outs.

Under 125k, no phase out.
125 to 183, you lose a % point every 2k. https://www.irs.gov/pub/irs-pdf/i2441.pdf (see page 8)
Over 183 to 400, 20% of expenses
400-433 starts to phase out again
Over 433, no credit

Based on other thread, you are way over the 16k mark for prince and duke.

So find your AGI on the table, take the % and multiply by 16k and that should be your amount. This is assuming you don't have dependent care FSA option, which I'm sorry if you don't.

King Colby
Posts: 17786
Joined: Wed Mar 25, 2015 6:35 pm

Tax Season

Postby King Colby » Tue Jan 25, 2022 7:40 am

Thanks bev! You can send the invoice directly to my inbox :D

mac5155
Posts: 13813
Joined: Wed Mar 25, 2015 12:47 pm

Tax Season

Postby mac5155 » Tue Jan 25, 2022 8:26 am

I always wonder what box 10 on the W2 has to do with dependent care. I have a DC FSA but that box is always empty.

Beveridge
Posts: 5336
Joined: Wed Mar 25, 2015 6:17 pm
Location: 8-8-1

Tax Season

Postby Beveridge » Tue Jan 25, 2022 9:41 am

It's just a reporting box. If there was a number there, it would flow automatically to the child care form. If you have a DC FSA at work that you're using and they aren't filling it out, they are doing it wrong. Grats on double dipping if not audited, haha.

mac5155
Posts: 13813
Joined: Wed Mar 25, 2015 12:47 pm

Tax Season

Postby mac5155 » Tue Jan 25, 2022 9:50 am

:pop:

King Colby
Posts: 17786
Joined: Wed Mar 25, 2015 6:35 pm

Tax Season

Postby King Colby » Wed Jan 26, 2022 9:53 am

Bev, as my accountant I think I should share with you that my 2021 daycare expense was $16,030...

Serendipitous indeed.

(They only went april-may and august-december)

Beveridge
Posts: 5336
Joined: Wed Mar 25, 2015 6:17 pm
Location: 8-8-1

Tax Season

Postby Beveridge » Wed Jan 26, 2022 10:26 am

I can't even wrap my head around that cost, let alone only for 7 months.

AuthorTony
Posts: 8947
Joined: Wed Mar 25, 2015 11:18 am

Tax Season

Postby AuthorTony » Tue Feb 01, 2022 11:44 am

I have a question for people smarter than me, which is pretty much everyone here.

Amazon just changed their tax reporting system in regards to how royalty deals are handled for audiobooks. In the past they simply issued separate 1099s to the author (who received 50% of the net after Amazon took their share) and the producer (who received 50% of the net). This year they're issuing the authors a 1099 for the full 100% and telling us we need to then issue 1099MISCs to the producers even though I, as an author, didn't directly pay the producer, Amazon did.

This feels like a load of ****, but it is what it is. This announcement was just sent via email last night (although they said one was sent in Jan of 21 but I never saw it) so I'm trying to get my ducks in a row asap. Do I need to have every producer I've dealt with (5) complete and send me a W9? One of them lives in Brazil and I have no idea whether he's a US citizen. Once I get their W9s (if that is indeed required) do I need to do anything aside from issue them each their 1099MISCs? Do I need to file any other paperwork?

I know the best answer is "hire an accountant," but until I do, any help is appreciated.

Edit: I've just learned that Amazon is issuing the producers a 1099K. So does this mean I can simply claim the royalties via a Schedule C and not have to deal with obtaining W9s and issuing 1099s on my own?
Last edited by AuthorTony on Tue Feb 01, 2022 3:24 pm, edited 2 times in total.

mac5155
Posts: 13813
Joined: Wed Mar 25, 2015 12:47 pm

Tax Season

Postby mac5155 » Tue Feb 01, 2022 12:54 pm

I received a form 8949 for net proceeds of a sale of non qualified stock options. These were already taxed on my payroll/paystub. Is this just for my records or do I also owe more tax on it?

King Colby
Posts: 17786
Joined: Wed Mar 25, 2015 6:35 pm

Tax Season

Postby King Colby » Tue Feb 01, 2022 1:11 pm

I have like... a stupidly big refund. I'm poring through it because i HAVE to have made a mistake

robbiestoupe
Posts: 11543
Joined: Thu Apr 30, 2015 3:27 pm

Tax Season

Postby robbiestoupe » Tue Feb 01, 2022 1:15 pm

I have like... a stupidly big refund. I'm poring through it because i HAVE to have made a mistake
Did you take the Biden money for your kids last year? Could explain some of it

mac5155
Posts: 13813
Joined: Wed Mar 25, 2015 12:47 pm

Tax Season

Postby mac5155 » Tue Feb 01, 2022 1:17 pm

yeah mine's about 2k bigger because i didnt take the prepaid biden bucks. So if you didnt and have 3 littles you could legitimately have a 5-6k bigger refund than last year. plus didnt the dependent care tax credit rules change also?

King Colby
Posts: 17786
Joined: Wed Mar 25, 2015 6:35 pm

Tax Season

Postby King Colby » Tue Feb 01, 2022 1:29 pm

I have like... a stupidly big refund. I'm poring through it because i HAVE to have made a mistake
Did you take the Biden money for your kids last year? Could explain some of it
I did. I was too lazy to figure out how to opt out so I just set it aside in case I owed it back.

King Colby
Posts: 17786
Joined: Wed Mar 25, 2015 6:35 pm

Tax Season

Postby King Colby » Tue Feb 01, 2022 1:30 pm

yeah mine's about 2k bigger because i didnt take the prepaid biden bucks. So if you didnt and have 3 littles you could legitimately have a 5-6k bigger refund than last year. plus didnt the dependent care tax credit rules change also?
Yes, see me and bev's exchange above. This is a big chunk of it.

I have 2, my 3rd comes in 2022 so she'll pay me next year at this time lol

robbiestoupe
Posts: 11543
Joined: Thu Apr 30, 2015 3:27 pm

Tax Season

Postby robbiestoupe » Tue Feb 01, 2022 1:43 pm

OK, let's say I maxed out my DC FSA at $5000. But I paid $16,000 in DC. I have 3 kids. So my leftover deductible is (16,000-5,000)/2 = $5500?

mac5155
Posts: 13813
Joined: Wed Mar 25, 2015 12:47 pm

Tax Season

Postby mac5155 » Tue Feb 01, 2022 1:46 pm

How I understand it yes. (at least you can only claim the credit on the amount over and above the $5k)

robbiestoupe
Posts: 11543
Joined: Thu Apr 30, 2015 3:27 pm

Tax Season

Postby robbiestoupe » Tue Feb 01, 2022 1:50 pm

Just did the math - only hit $14k in expenses but still good to know.

Who is online

Users browsing this forum: Dickie Dunn and 58 guests