Personal Finance Tax Thursday Thread for the week of April 04, 2019 |
- Tax Thursday Thread for the week of April 04, 2019
- Should I cash out my whole life insurance policy
- Budgeting for low income family, who is very financially illiterate and overwhelmed
- Am I overreacting on how much I'm going to be spending on a wedding?
- [Retirement] Is there a consensus on which funds belong in a Roth IRA vs. Brokerage vs. 401k/IRA?
- Parents ran up Credit Card Debt at 18. 24 and being sued.
- My employer is going to try to make me pay taxes on a course I took voluntarily.
- Increasing your Emergency Fund over the long term
- Know your rights when working with home contractors...
- I'm on dialysis. Is it too late to get life insurance?
- Can I put my subsidized Stafford loan in a high-interest savings account?
- Taking a $17k pay-cut for dream job.
- Today I sat down and decided to aggressively fight my +$13k debt.
- I’m 31, wife is 25, we have 100k savings, should we buy a house or wait?
- 457b (no match). How do i allocate and what am i even doing? Details below
- Paying my balance on my credit card
- Short term (1 year) investment ideas
- I make 1,600 per month. How much should I spend on rent?
- Multiple $0 fraudulent transactions
- 11-month old business; too much debt? x-post r/smallbusiness
- Looking for a new bank. Is a high savings rate (2%) + brokerage account + good credit card all possible at the same place?
- A dear friend is considering student loan forgiveness, then ‘offer in compromise.’
- I screwed up my backdoor roth IRA in TurboTax, how do I fix my mistake?
- First full time job/becoming truly independent- what to plan for?
- Estranged father has a brokerage account under my name, using my SSN
| Tax Thursday Thread for the week of April 04, 2019 Posted: 04 Apr 2019 04:06 AM PDT Please read the PF tax wiki page to see if your question is answered there before posting.This weekly cross-sub thread will be posted through mid-April to give subscribers a chance to ask basic tax-related questions in a consolidated thread. We are also very lucky to have some folks from /r/accounting and /r/tax joining us here to help out. Since taxes can be a very complex topic, the main goal is to point people in the right direction, provide helpful information, and answer questions. (Please note that there is no protection under §7525 or attorney-client relationship when discussing matters in posts on a message board. Consult a reputable tax advisor in person if your situation demands it.) Make a top-level comment if you want to ask a tax-related question! If you have not received your answer within 24 hours, please feel free to start a discussion. For all of the Tax Thursday threads from this year, check out the Weekly Archive. [link] [comments]  | ||||||||||||||||||||
| Should I cash out my whole life insurance policy Posted: 04 Apr 2019 07:11 AM PDT My parents took out a whole life insurance policy for me when I was a child with $25,000 coverage. the cash value is $4200. I'm paying $18 a month for the current premiums. is it worth keeping the policy or should I cash it out and put the money in another investment account? I'm 36, married and have two children. Edit: do only men post on here? Surprising to see that most assumed I was a man. Wife here! Who runs the financial household! I should have added that my husband and I both have term life insurance although it's probably not nearly what it should be. ($200k for each). [link] [comments]  | ||||||||||||||||||||
| Budgeting for low income family, who is very financially illiterate and overwhelmed Posted: 04 Apr 2019 03:39 PM PDT I'm not sure where to start and kind of overwhelmed to tears... It's really embarrassing and i made a throw away account just to talk about this. I'm 27, my husband is 31. Our kid is 2. Together we make 45k a year. He works 50 hours at a labor job i work 20 in fast food. We have no education beyond GEDs, not because we're unintelligent, but unfortunate life circumstances and our own poor and rash decisions. 0 savings, 0 assets, 1 crappy old car. We have very poor credit (student loans, hospital debt, 1 or 2 unpaid bills and who knows what else. No credit card debt or loans) i don't know how to find out how much debt we're actually in. We live paycheck to paycheck and today i had to borrow 300$ from my 21 year old college student brother to make rent. I feel like we've hit rock bottom. Truly we are the epitome of failure. How do I start to turn this around? Looking for tools, calculators, apps, search terms, books, a saint who will look at our budget, anything at all. I'm not trying to throw a pity party I'm just looking for some direction because trying to analyze this on my own when i don't even know where to start is driving me into a panic attack. Thank you anyone for any words you may have. Update: Thank you everyone for your responses, this has been a HUGE help! Im headed to bed as i work in less than 7 hours but my homework for tomorrow: Call Comcast and try to renegotiate. If not, then cancel and use our phones. Call Sprint and talk to them about hubby and i downgrading to save on those phones and phone insurance. We'll finish the rest of the leases for my brother and mother in law but cancel after those are through (in 4 months) Come up with a cheaper meal plan for a month. Figure out the exact total of my debts (not sure where) Start tracking spending on Mint and EveryDollar Look into David Ramsey! Long term, I'll be looking for cheaper rent near my husband's job. Thank you everyone! [link] [comments]  | ||||||||||||||||||||
| Am I overreacting on how much I'm going to be spending on a wedding? Posted: 04 Apr 2019 06:51 AM PDT So after posting in a previous about wedding costs being ~25K, I started to read the posts on spending as minimal as possible...which I'm trying but it doesn't seem to be working out that way... Asian wedding costs breakdown estimate: 120 people @ 1000$ per table that sits 10 ppl (10 seafood/meat dishes ) = $12000 2 Photo Shoots, Fitting for groomens/bridesmaids, us, 2 photographers/1 videographer on wedding day, make-up, limo = $5000 Cake, Flowers, Alcohol (supply our own)/Bartender = 2000$ MC,2 DJ for wedding day = 1500$ Decorations = $2500 Gifts, Tips, Misc., etc. = $3000 Granted it's an chinese party wedding and typically guests bring cash gifts (which will hopefully offset the food/table costs) but I'm still overthinking it? From my experience at other relatives weddings, usually relatives give >1000$ (some in the order of $10,000+ as well as gold jewerly) as gifts, so actually in the end I'm "guessing" we might actually make money. However, PF mentions never "expect" any gift from anyone, but it's hard to avoid this kind of traditional asian wedding ceremony. I just feel guilty for kind of allowing these kind of costs to be that way and would rather much prefer to just go to a nice restaurant and call it a day. No need for everyone to waste $$$ for a single day EDIT: Thank you for all your advice everyone! I've read through alot of them, I'll see if I can "lower" the decoration price, it's hard to cut the "limo" out since it's part of a photoshoot "package" [link] [comments]  | ||||||||||||||||||||
| [Retirement] Is there a consensus on which funds belong in a Roth IRA vs. Brokerage vs. 401k/IRA? Posted: 04 Apr 2019 06:58 AM PDT I've been focusing lately on getting my finances more in order, and I've started to look up the idea of tax efficient investing. I want to start taking advantage of my Roth IRA by moving some of my brokerage account assets there, but honestly I'm not sure which ones belong there better. I also want to rebalance my IRA/Brokerage (I have a bunch of ETFs in my IRA, which I've read isn't really great), but was just looking for some guidance as to which things belong where. Edit: Jesus this really blew up, thank you for the insight. To make it easier, I get about ~10k in distributions a year and the Fidelity person told me that it would be advantageous if I started shifting assets around in a more tax friendly situation. Over the years I've gotten a lot of drops across a lot of different buckets (got a little out of control with mutual funds, focusing on dividend investing) and I think it's time to start slimming down. [link] [comments]  | ||||||||||||||||||||
| Parents ran up Credit Card Debt at 18. 24 and being sued. Posted: 04 Apr 2019 11:21 AM PDT I grew up in an emotionally and otherwise abusive household. I was 18 and stupid, and my parents opened up several credit cards in my name. When I found out about it when I was 18-19, they told me they would pay them off and when I threatened to report it, they said they would throw me out of the house. I was 18 with no job, they had prevented me from getting any form of ID so I could get one, and I was not able to go to college at that time. I was scared and wanted to trust that they wouldnt ruin my life. Fast forward to 24. They not only didnt pay them off, but they let two close with high balances. I have already been sued by one for over 4000 and now another for over 3000. I dont have any proof or way to prove that I didnt open these cards, and they made themselves authorized users. I need a fresh start and the ability to start repairing my credit score. Help? [link] [comments]  | ||||||||||||||||||||
| My employer is going to try to make me pay taxes on a course I took voluntarily. Posted: 04 Apr 2019 05:04 PM PDT I work at a dog daycare as an independent contractor (supposedly) and I took a course voluntarily to get a certificate and paid for it out of pocket, my employer made a verbal agreement that they would reimburse me. The course wasn't required, and the certificate is mine, their company name isn't on it. My employer wants to pay me back in a paycheck. I asked them not to as it's not income, or a business write off and I don't want to end up paying taxes on it. Am I wrong? [link] [comments]  | ||||||||||||||||||||
| Increasing your Emergency Fund over the long term Posted: 04 Apr 2019 08:33 AM PDT I wanted to share my recent experience with an inadequate emergency fund. When I started getting into personal finance, my husband and I were in our early 20s, the recession was in full force, and we made about $75k joint income. We were lucky in that we never lost our jobs, we were never unable to afford our house payment, and we were saving 15% of our income for retirement by the time were about 27, plus another 17% of our income going to savings for other short- and medium-term goals. We had saved up $10k for an emergency fund during that time, 2007-2010, which was more than 4 months' expenses for us back then, even with some small student loan debt. We never increased that emergency fund as our income and expenses have grown in the last 10 years, and now we're regretting it: my husband was laid off a few weeks ago, and then our hot water heater died a couple of days later. Our budget was already precarious because of very expensive childcare for the past 8 months, unpaid maternity leave of 12 weeks last year, medical bills, a recent bathroom renovation at the beginning of 2018 which depleted other savings, and the water heater has ended up costing us almost $6000 because of building code/plumbing inadequacy issues, it being in the crawl space, and choosing to switch to a different type of water heater in the process... The good news is, my husband already had a new job lined up before he was laid off, and my MIL was generous enough to gift us more money to fill the gap for this 6 weeks or so. But that initial $10k emergency fund was essentially gone within a week after he was laid off, spoken for by the water heater and the month of lost income. We chose not to pull our kids from childcare since we knew he'd be starting his new job soon, and it's too hard to find a new spot, plus being very stressful for the kids. It's very difficult to balance all of the expenses that come with adulthood - paying off debt, saving for retirement, having kids, buying a house, health insurance premiums going up every year, and trying to save for your kids' college also. Increasing our emergency fund wasn't as high a priority among all those other increases, but it should have been at least somewhat increased. I just wanted everyone to hopefully learn from our mistake. [link] [comments]  | ||||||||||||||||||||
| Know your rights when working with home contractors... Posted: 04 Apr 2019 10:59 AM PDT Most people who read this sub are financially proficient, and I consider myself to be financially adept as well, but sometimes we all get into situations we wish we hadn't. This is a story about getting into a situation - and quickly resolving the issue with no ultimate negative impact. My wife and I have a ceramic tile floor in our kitchen that is all cracked and terrible, and we have a baby who is just about to start walking. Cracked ceramic tile + toddler = bad times. We'd planned to replace the tile this year, before she starts walking. We initially budgeted $1,200 - with a small kitchen (~120sqft), we figured $10 per square foot was reasonable. We got our first quote, from a national company, and they came in at more than $3,500, even when we were removing the existing tile. It was a bad experience overall, so we gave up for a while. Lately, the need has gotten more urgent as the existing tile cracks more and more, and as our kiddo gets closer and closer to legitimate walking, so we decided to get serious again. We came to realize that our kitchen may be small, but it will require a LOT of labor to install new tile - we only have 120 sqft, but we have 22 corners to contend with, and all of them will require precise cuts. We increased our budget to $1,800, and we were willing to go over by a few hundred if we found the right company. Flash to last night, when we are working with a flooring consultant. She suggests that we explore vinyl plank, instead of tile, and my wife and I are intrigued. We find a plank that we really like, and we do some quick negotiation before agreeing to $2,200. Now, that's more than we wanted, but we've gone through so many consults that we were ready for it all to be over, and it was a bonus that $2.2k was a few hundred less than the cheapest proposal we had gotten to date. We signed the paperwork, put a deposit on our credit card, and that was that. After the salesperson left, we were talking about how we did OK when it dawned on us that we would've felt good about $2,200 if it were $2,200 for tile, but it wasn't... it was $2,200 - $18.33/sqft for vinyl planks. Out of curiosity, I contacted one of the other vendors we spoke to, and he told us he would ballpark it at $8/sqft, all in, plus a few hundred on quarter round molding. My heart sank: We already put $1,100 down on something that someone else is telling me he could do for around that same price. This brings me to the point of this post: know your rights. I live in Pennsylvania, where consumers are protected by law. In PA, we have a three-business-day cooling off period when we enter into a contract in our homes (as opposed to in a physical store), during which we can cancel without penalty. This morning, I exercised that right, got my $1,100 back, and signed a contract for $1,450 to do the install ($1,100 for the core vinyl + installation, $350 for other materials required for the job, which we'll be getting at a pretty low markup). Instead of kicking myself over making a $750 mistake, the mistake is already rectified! (For reference, I do know that $1,450 is still very expensive for a small space, but with so many cuts required, I am relatively certain that it would take multiple days for me to do myself, and I am certain that, with my existing skill set, the final product would look amateur at best. Future projects? Heck yes I'll take 'em on myself, but not this one.) [link] [comments]  | ||||||||||||||||||||
| I'm on dialysis. Is it too late to get life insurance? Posted: 04 Apr 2019 04:04 PM PDT Hello all. I've been on dialysis almost 2 years due to an auto-immune disease, and will be on dialysis until I receive a kidney transplant. I do have a small life insurance policy through my employer (equivalent to 1 year's salary), but now I have a small family and I'm looking for something more substantial. I've heard the odds of getting insured are better once I get a kidney transplant, but that could be years away... Does anyone have any experience getting life insurance with a major medical condition? Or is it just out of the realm of possibility now? [link] [comments]  | ||||||||||||||||||||
| Can I put my subsidized Stafford loan in a high-interest savings account? Posted: 04 Apr 2019 07:46 PM PDT I will be a freshman in college next year. With the scholarships and grant money I'm going to have, plus in-state tuition, I should be able to easily finance myself with a job, and still have money left over to save. Despite this my family is poor, so I was offered a $2500 subsidized Stafford loan which I understand doesn't accrue interest until I graduate. I don't need the loan, but I currently have a savings account that pays 2.35% APY, so I was thinking if I put my loan into that savings account, it would generate about $225 over my 4 years at college. Then I would pay off the loan in full before it ever accrued interest. $225 isn't a lot, but that would be completely free money. My question is: is this legal, or is there a rule prohibiting this? [link] [comments]  | ||||||||||||||||||||
| Taking a $17k pay-cut for dream job. Posted: 04 Apr 2019 12:06 PM PDT I currently work as an Electrical Engineer making $75k ($69k salary + $6k bonus). I am being considered for a teaching/research job at a University, which is what I've always wanted to do. The pay is only $58k, but they will pay for my to get my PhD while I am working. (I currently have a MS) My current position will also fund my PhD, but I will have to do so on nights/weekends which will be very difficult if not impossible. We have $63k left in student loans and are currently paying $3,300 per month with a projected pay off of December 2020. Taking this job would only allow for a payment of $2,700 per month, pushing that back to April or May 2021. This is the only part of our finances the pay-cut would immediately impact. My current job (which I do not like and is not inline with my long term goals) pays 3% raises yearly and 5% for step raises. The university job only does 2-3% yearly raises, so long term I will never make as much money at the new job. I think being in academia will be much more helpful once I finish my PhD, however. Is taking the new job financially irresponsible, or is it just a lifestyle choice? We have no children and currently live pretty well even with such a large student loan payment. [link] [comments]  | ||||||||||||||||||||
| Today I sat down and decided to aggressively fight my +$13k debt. Posted: 04 Apr 2019 12:59 PM PDT I'm 24 years old, and make $45K a year. Right now I'm $13,458.88 in debt. $8,719.76 Car Loan $5200 CC Loan @ 19.99% I've become tired of ignoring my debt, making min payments with no plan, and having to live pay to pay. Today I sat down for about 5 hours, and made a 14th month financial plan. I make $2748.9 a month after taxes and decided to put $500 per paycheck towards debt, using the avalanche method. Broke down my plan here: Monthly Salary: 2748.9 Monthly Expenses:
I know that my monthly expenses are outweighing my monthly salary, but right now I have a balance of $1081.17. The balance in my account should give me the float to make it through the negatives if I follow my budget accordingly. (Assuming I go over my $200.00 Bi-Weekly allowance). I'm also thinking I'm going to get a ~$2.2K Tax refund this month - I haven't included it in case I don't get it. (Assuming I do, it's going to all to the CC debt.) If I follow this model correctly, I should have my CC paid off by August 16th. If I keep up with the $500 and $117 biweekly payments towards my car, my vehicle will be paid off by January 17th, 2020. Honestly, I have mixed feelings about my situation. While I'm excited that I have an action plan, I'm frightened that it's going to take me to 2020 to become debt free. I know some of the people on this sub are fighting a longer and tougher battle than me, and I don't dismiss that. After I made this debt plan, I've mad duplicates, playing around with my options. Eg. One option is to lower the $500 of CC payments to $181.33. This option will take me much longer to pay off this debt, with significantly more interest growth, however, I'll have more play-money and quality of life during this summer, and them making a lump sum payment later on this year. If anyone has any suggestions, concerns, or just want to critique my math PLEASE DO. I want to know if this is a realistic plan of attack, and if I can actually pull this off. Being Debt free before 26 would be a BLESSING. TLDR: I made a plan to eliminate my +13K debt in a matter of 9 months. [link] [comments]  | ||||||||||||||||||||
| I’m 31, wife is 25, we have 100k savings, should we buy a house or wait? Posted: 03 Apr 2019 11:41 PM PDT Got married a year ago in a large metropolitan area with expensive real estate. Together we make a little over 100k and our monthly expenses are under $1000, the rest goes to savings. Our rent is less than $500, another $500 is food and leisure. We have no debt because we didn't go to school. Should we wait another year or two, considering our monthly rent is very low? We're thinking we could save another 100k and then buy a house. Are there any advantages in buying a house with 50% down? Does it make sense for us to keep saving just because our circumstances allow us? Our money is parked in our checking accounts, should we consider any safe and smart option where we could invest our savings? Any advice will be appreciated! [link] [comments]  | ||||||||||||||||||||
| 457b (no match). How do i allocate and what am i even doing? Details below Posted: 04 Apr 2019 04:49 PM PDT Hello people! This will be my first post, so i hope everything is within the guidelines that i've read. So, i'm 23 years old and have a very long time before I retire. My job offers a 457 plan that I can use to invest and grow my retirement. So what am i investing in? What are the Mid caps, Large Caps, Small caps, or any of the others like international?? I currently put in 160 a month into the plan. Its set to automatically invest for the type of growth that i chose. I chose "aggressive growth" because i have dang near 40 years to save, and it was recommended for people who have 16+ years till retirement. Even if i have any losses for a year or two the growth may surpass any of that in the coming years after, we never know. Just doing the math alone for savings without a plan comes to 170k-ish. 26 pay's a year (biweekly), 80 per pay of course, 160 a month, 4160 a year. That of course doesn't include any interest i'll get, or losses since we never know what will happen. So, should I sit back and let it automatically invest my money? Should i learn things, how to invest etc... and take the reins to invest how i choose? my overall gains from around October of last year to today is 16%, which sounds fairly great to me. I just prefer to have control over my money, yet is this something i can control? Edit: This isnt my only retirement as well, I'm also in a pension plan which i have 5% taken from me. And if Social Security is still around when i retire, i'll also see that i guess. [link] [comments]  | ||||||||||||||||||||
| Paying my balance on my credit card Posted: 04 Apr 2019 07:46 PM PDT So I got my first credit card in March and I have a few questions because my balance is due soon. I am able to pay it off with the chase app rather quickly. I notice that right after I buy something it is "pending" and so it won't show up as a balance until it goes all the way through and sometimes it takes hours, other times days. My question is that if I'm supposed to pay by the 5th of each month, and I buy something on the 4th but it doesn't finish pending until the 6th so I'm not able to pay the balance until the 6th...is there a penalty? I figured there wasn't but I've been kind of worried about it all month. I got my first credit card and am not going crazy, just building my credit and I'm worried I may screw up hard here. Thanks in advance. [link] [comments]  | ||||||||||||||||||||
| Short term (1 year) investment ideas Posted: 04 Apr 2019 07:41 PM PDT I'm helping my younger sister with $4,000 she has recently inherited. She's in college now and will need the money in approximately 12-18 months to start her post-college life. What would be the best investment vehicle to put this money in? Thanks in advance! [link] [comments]  | ||||||||||||||||||||
| I make 1,600 per month. How much should I spend on rent? Posted: 04 Apr 2019 07:28 PM PDT Hello, I work two jobs and make roughly 1,600 a month after taxes. My bills come to 900 (car, food, gas, ect). How much should I use to spend on rent? [link] [comments]  | ||||||||||||||||||||
| Multiple $0 fraudulent transactions Posted: 04 Apr 2019 05:00 AM PDT I received approximately 60 transactions like these on my card? What is the purpose of doing so many $0 transactions instead of going for one big score if they have equal chance of being declined anyway? TRANSACTION DATE TIME TRANSACTION AMT MERCHANT NAME 4/4/2019 5:29 0 WARNER MUSIC GROUP 4/4/2019 5:29 0 WARNER MUSIC GROUP 4/4/2019 5:30 0 WARNER MUSIC GROUP [link] [comments]  | ||||||||||||||||||||
| 11-month old business; too much debt? x-post r/smallbusiness Posted: 04 Apr 2019 07:23 PM PDT I tried posting this to r/entrepreneur but I apparently don't have enough karma with a throwaway... can anyone here help? Using a throwaway for privacy. I own a retail store in a small city. I have been open for 11mo and did about 60k in sales my first 7 months (May-Dec). I currently have 23k in inventory and almost 30k in debt. I was very conservative in my startup costs originally, doing a lot of painting, building shelves, and other cost saving efforts; I only spent 5k to get the small space started back in May of 2018. After 5 months of good business, I moved to a larger location, nearer to an already established shopping center. At that time, because business was going well, I invested in new retail furniture, new lighting, and other needs to grow my business. I spent about 15k on leasehold improvements and furniture. I also took on 3 very part-time employees to help grow different areas of my business (opportunities to expand into product development that aligns with the brand, online sales, in-store programming, etc.) but these areas have not yet started generating revenue. I am located in an area that has had a pretty harsh winter, and I'm told by fellow retailers in the area, that sales have been down for everyone this year. It's my first winter in business, so I have no frame of reference. I did 3k in sales January, 6k in February, and 5k in March. But I feel like I'm scraping by. Also, as mentioned above, my investment into the new location and inventory has left me with almost 30k in debt. I'm tightening up procedures and asking more of staff, reducing their hours a bit (they don't mind), and trying to also reduce my costs. I recognize we'll need to tighten up or we could get ourselves into trouble. I guess what I'm wondering from other business owners is... is 30k debt with 23k inventory (a retail value 46k...) just completely insane? Will I ever dig myself out of this? I have no frame of reference because it doesn't feel like these are questions you can ask of fellow business owners. Even so, different industries and specialties have different pricing and investment cost. Please be kind... I'm pretty freaked out about all of the debt and responsibility. I feel mentally and professionally equipped to handle what's ahead, but I hope I haven't gotten myself in too deep. Is my debt/income/inventory ratio concerning? Thanks [link] [comments]  | ||||||||||||||||||||
| Posted: 04 Apr 2019 07:16 PM PDT I'm currently with Bank of America and am getting next to nothing. I have a checking, savings, credit card and Merylinch account with them. Everything at the same place. I've seen savings accounts with 2%+ but I wonder if any of those banks offer the other things I'm looking for. Basically I have 200k and need to find a better place for it. Any suggestions? [link] [comments]  | ||||||||||||||||||||
| A dear friend is considering student loan forgiveness, then ‘offer in compromise.’ Posted: 04 Apr 2019 04:28 PM PDT He has over $300K in student loan debt (medical school - he deferred payments right after graduation for years through a particularly nasty divorce). His current $1,500/month payment barely pays principal. He says with the current rates, he can:
I know absolutely nothing when it comes to Offer in Compromise. Looking at the IRS website, his idea seems plausible. [link] [comments]  | ||||||||||||||||||||
| I screwed up my backdoor roth IRA in TurboTax, how do I fix my mistake? Posted: 04 Apr 2019 05:14 PM PDT I started doing backdoor Roth IRA contributions for 2015 until now. Well, I screwed up. I followed this tutorial but I made my contributions before the tax deadline rather than in the same year of the taxes. For example, I contributed to the Traditional IRA in April 2017 for the 2016 tax year. I've done this every year using my tax return money. My fault is not when I made the contribution to the Traditional IRA, but rather that I reported it as in the same year that I'm filing instead of the start of the year after. Also, I didn't realize but somehow didn't submit an 8606 at all in 2016. I got a letter from the IRS saying I owe since Vanguard sent a 1099-R showing the $5,500 but there's no corresponding 8606 showing it was a non-deductible Traditional IRA conversion to a Roth IRA. I wrote up the 8606 for 2016 by hand and a letter saying as such with attaching it. Then I realized my others don't have the line saying I made the contribution between Jan-Apr18 of the following year. How can I fix this? Amend every year with a new 8606? What should be on my 1040 and 8606 for the first year 2015 and the second year 2016 when I contributed in April 2016 and 2017 respectively? [link] [comments]  | ||||||||||||||||||||
| First full time job/becoming truly independent- what to plan for? Posted: 04 Apr 2019 05:11 PM PDT I'm 25 and in May am graduating with my masters. I just signed a full time offer from my current employer (from 18hrs/wk). Here's my current situation: Emergency fund: $1,000 Roth IRA: ~$12,000 Own my car outright No student debt. Simplified Monthly expenses: Rent: $700 Utilities: $100ish Food: $300-500 My offer is for 45k, with full benefits. I'm on my parents health insurance through the end of the year. My employer has offered the cost of health insurance (7,500/yr) in cash. They also have 100% match up to 9% for their pension plan. My plan is to take the cash for this year, then shop for insurance on my own. Current long term goals are retirement and eventual home ownership. I plan on getting my emergency fund up to $5,000 as the first priority. I'm thinking I will contribute 9%, then max out my IRA, which puts me at about 21% for retirement. What costs should I be budgeting for in the future, besides insurance? Any other advice for a young professional starting out? [link] [comments]  | ||||||||||||||||||||
| Estranged father has a brokerage account under my name, using my SSN Posted: 04 Apr 2019 06:39 PM PDT Title pretty much says it all. I have no communication with my father and have zero desire to initiate any form of communication with him. I only just remembered that I might have an account under my name because when I was younger (around 7 years old), and I remember seeing envelopes come in with my name on it, but I didn't think anything of it. So I checked the website, put in my info under account recovery and lo and behold it asked me to text/call the number on the account to verify my identity. I don't know what type of account it is, but I do want to know how will it effect me? It doesn't come up on my credit report - but if for some reason he fails to pay taxes on his trades that would cause the IRS to come after me, right? I just want the account closed, I don't care what's in it. I don't want it impacting me later down the line, and I definitely don't want anyone using my SSN for their benefit. What steps can I take legally? I haven't reached out to the brokerage company as I wanted to get some form of legal opinion first before I take action. I don't know much about trading, but he's always been heavy in trading stocks/options. I see there are Guardian accounts, but I really don't know what kind of account he opened because he never talked about it. I'll reach out to the company later to try and validate my identity. I haven't spoken with my father in 4 years. Last time I saw an envelope with my name was about ~10 years ago. [link] [comments]  |
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