Personal Finance Tax Thursday Thread for the week of February 27, 2020 |
- Tax Thursday Thread for the week of February 27, 2020
- Khan Academy has basic explanations on taxes in the U.S. This should help you with understanding tax brackets, deductions, and other related information.
- Just lost my job and I have 4 loans out. All 4 of them said they can’t freeze or stop the loans whatsoever. I have no savings. What are my options?
- Owe 35k to IRS, make $12hr
- Don't time the market
- Buying a home with less than 20% down?
- I’ve used H&R Block’s online tax software for a decade. When is it better to use a CPA for taxes versus doing it yourself?
- Would you take a $10,000 paycut for a shorter commute?
- Move out or buy a car?
- How do Target-date index funds rebalance?
- Accountant's office was burglarized and all of my paperwork was stolen. How to proceed?
- Filed Taxes a Month Ago, IRS Website Says It's Still Processing, when do I do something?
- My plan for my future
- Moving across country. Is it worth it to ship my car, or better to sell it?
- For people buying used cars during income tax time
- Potential employer "verified my identity" using formi9.com instead of a .gov site. Whois lookup is private. Is this a scam website?
- Is it a bad idea cosign a loan to save my kid from a high interest car loan?
- W2 deductions for expenses
- How many credit cards should I have when rebuilding damaged credit?
- Girlfriend moving into my apartment with no job or car
- Received a $4900 hospital bill that I absolutely can't afford
- How much money is too much to put into a high yield savings account?
- Repair or Replace My Courier Vehicle?
- Is it worth it to refinance my mortgage?
- Accepted to accelerated bachelors in nursing program. Looking for some help
| Tax Thursday Thread for the week of February 27, 2020 Posted: 27 Feb 2020 03:06 AM PST 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]  |
| Posted: 26 Feb 2020 11:36 PM PST A reminder that this resource exists. There are some simple explanations of tax law in the U.S. over at Khan Academy. Here are a couple links: And since retirement accounts tie into deductions: As an added bonus: Happy filing! [link] [comments]  |
| Posted: 27 Feb 2020 01:19 PM PST I'm 23, now unemployed and I do not own anything. I live with my parents and my car is under their name. The only thing I have in my name is a small $300 limit credit card. I have one lead on a job but you know how the process goes.. Can I file for bankruptcy? What should I do? I know within the next few weeks I can start making payments again but I need time to figure stuff out. My friends told me to clear out my debit card until I can start making payments but I'm afraid the loans will still take out. Help. [link] [comments]  |
| Posted: 27 Feb 2020 02:33 PM PST My mom is 63 years old, never paid taxes, makes $12/hr, barely makes ends meet, cannot afford a lawyer. The IRS just contacted her demanding $35,000 in back taxes. What are her options? State of WA. [link] [comments]  |
| Posted: 27 Feb 2020 08:18 AM PST Hi all, I will break my usual routine of just replying with the same text every time, because people are panicking more than usual. Don't time the market!
Don't time the market! We have a lot of deadly viruses killing millions already, the world doesn't end. If the world doesn't end, money is still flowing. If the world does end, being out of the market won't help you.
Don't time the market! How do you know if it will go down or up from here? What do you know that Wall Street traders don't? Do you have satellites looking at parking lots of foreign factories? They do!
You are timing the market the other way! Don't do that either! If the market is already down you may want to abandon your house hopes and just ride it out. Otherwise you should get into a savings account.
This is the worst time to be timing the market! But, you should make sure your accounts are using a correct asset allocation with plenty of bonds. Also see what your budgeting situation is, and how much pension or social security you will have coming in.
Don't time the market! Whether that's individual stocks or the whole thing, no.
No, don't stop. Keep doing the same thing.
Stop looking at your balance every week. Save 10-20% for retirement, put it in a target retirement fund, and ignore it until you are 60+. [link] [comments]  |
| Buying a home with less than 20% down? Posted: 27 Feb 2020 11:45 AM PST I (36F), mom of one, am looking to buy a home at the end of the year in Arizona. Without tapping into my 6 month emergency fund, for a home priced $250-280K, I will have about 10-13% to put down. My elderly mother will be coming to live with me and I need a single level home, which is the only reason I'm looking to buy right now. Otherwise I'd probably stay put and wait for the market correction. Also, I can buy and spend less per month than it costs me to rent. $97k Salary $26k e-fund $33k savings acct $140k 401(k) No other debt Is it a good idea to buy with less than 20% down due to PMI? The market here is hot and home values are generally appreciating. What else should I be considering? [link] [comments]  |
| Posted: 27 Feb 2020 04:28 PM PST I have always been self sufficient in managing my finances, never interacting with a financial planner or CPA to understand options for me to minimize taxes or improve the return on my investment capital. I have gradually increased in income, today making over $100k with about $500k invested in stocks. Each year I use H&R Block's tax software. While it goes through the motions sufficiently to avoid IRS audits, I worry that I am missing out on opportunities to reduce my taxes or better investment my assets. Does anyone have advice or expertise on when it's better to involve a financial planner or CPA, either for preparing taxes or just for guidance & advice? [link] [comments]  |
| Would you take a $10,000 paycut for a shorter commute? Posted: 27 Feb 2020 04:19 AM PST I am an attorney and work for a local respectable firm for which I commute an hour each way. I received an offer to work for a national firm that would shorten my commute to 15 minutes each way. My pay would get cut, however, from $140,000 to $128,000. When taking bonuses into consideration, the paycut is even greater because the bonuses at my current firm are better. This is how my thought process has been - If I take the shorter commute, I would be able to spend more time with my kids (4 and 2 year old). Many times I come home and they are asleep. But part of me thinks I'd be kidding myself because I'd likely work long hours at this firm as well (but at least I always know that I am just 20 minutes away if I wanted to leave.) The new firm is also nationally known in their field, and would be a step up in my career because of the cases and clients they work for. My current firm isn't bad either, but not a national firm. Part of me thinks this prestige factor is in my head, but I always feel like if I didn't take the job, I would always say what if. What would you do? UPDATE - Thank you everyone for the resounding response. It is clear that the time saved is worth more than the money lost. I feel that this response coming from a personal finance sub is telling. I think we all should take a moment to appreciate the family around us - time is precious. Thank you everyone. [link] [comments]  |
| Posted: 27 Feb 2020 05:17 PM PST I am 22 and currently live with my parents and work two jobs. One is full time Mon-Fri and the other is overnight Friday and Saturdays as needed. I average around $2,500 a month and both jobs are in the mental health field. I graduated last year and I am trying to pay down my loans. I pay around $1000 a month to cover the interest. I own a 2007 Mazda with 144k miles. My parent's house is around 45 minutes from both my jobs. Due to recent construction in the area my commute has now increased to 1 hour to 1 hour and 15 minutes. I don't have to go to the office everyday for my full time job because I mainly meet with clients in their homes which is around 30 minutes away from me. I drive around 70 miles a day due to the nature of my job, but I do get reimbursed for mileage whime visiting clients (but not my commute to and from work). The commute and constant driving is starting to affect my mental in addition to my relationship with my parents and sister. My sister who is in high school won't talk to me unless neccessary and my dad constantly threatens to kick me out. I started to have panic attacks for the first time at the end of last year and began seeing a counselor who believes my family triggers my anxiety. I may also be diagnosed with depression. My mom wants me to continue to live at home because I plan to go back to school January of 2021. My job will pay for my master's degree and I can move up in my field. My mom would rather have me buy a newer car because she doesn't believe my 2007 Mazda would last that long. I'm leaning towards moving closer to my jobs. The area I'm looking has rentals for around $650-$700 a month (this includes utilities). I would be within walking distance to my overnight job and could pick up evening shifts during the week. I could most likely increase my income to $3000 a month. I could also go to my company's free gym rather than paying $20 a month. What would you do in my situation? At the moment my only expenses are car insurance, my student loans, and gas. Everything else is paid for by my parents. I have around $15,000 in savings. I used to live alone for 3 years while in school and I was a lot happier back then. [link] [comments]  |
| How do Target-date index funds rebalance? Posted: 27 Feb 2020 06:56 PM PST After the last few days' big drops, do shares of, say, SWYMX, automatically sell some bonds, metals, or cash to buy some stocks? How does this work? Does it happen daily or what? [link] [comments]  |
| Accountant's office was burglarized and all of my paperwork was stolen. How to proceed? Posted: 27 Feb 2020 03:53 PM PST Basically what the title says. I received a call on Tuesday from my accountant stating that my paperwork had been stolen in the burglary. Apparently my debit card details were written down and there has been a fraudulent charge made on it. I cancelled the card. They also got my SSN. I've put a freeze on my credit on all three credit companies. It seems this burglary was specifically going after people's SSN and other personal sensitive info. I'm worried my identity is going to be stolen next. How do I proceed? My accountant said I would be reimbursed for LifeLock but gave no info on how many months of it would be paid. [link] [comments]  |
| Filed Taxes a Month Ago, IRS Website Says It's Still Processing, when do I do something? Posted: 27 Feb 2020 07:55 PM PST Filed back in late January and when i go to track my refund on the IRS website it says its still processing. I don't have a permanent address atm so not sure if I have gotten any thing by snail mail. At what point do I start subjecting myself to a mess and start reaching out by phone? [link] [comments]  |
| Posted: 27 Feb 2020 05:07 PM PST I'm 15 (M) turning 16 on March 6. My plans for the future is to work at my local Burger King until I get out of high school. Then become a construction worker, electrician, carpenter or jobs similar to those. I'm open for question or advice. [link] [comments]  |
| Moving across country. Is it worth it to ship my car, or better to sell it? Posted: 27 Feb 2020 08:35 PM PST It's a 2009 corolla with 80k miles. While it is in excellent shape, never had an accident, and has sentimental value to me, it's only worth $4k for trade in or $5-5.5k by private sale per KBB. Moving it cross country looks like it's gonna cost at least $1k. I have friends and family giving lots of different advice, but it seems hard to justify paying 25% of the car's worth to ship it? [link] [comments]  |
| For people buying used cars during income tax time Posted: 27 Feb 2020 05:43 PM PST With income tax rolling around everyone's buying new and used cars. Me and my wife were going around the past few days going to dealerships and personal sellers looking for a car. Mind you our budget is $3000 for a vehicle which isn't a lot to some people but you can get a decent car for that price. Today we went to 2 personal sellers to look at their car. 08 4 door G6 130k miles and a 1999 Grand Prix 90k miles. The G6 looked brand new, motor was clean and the interior was spotless, took it for a test drive and luckily I know to go through all the gears because once it was shifting from 3-4th at 40ish mph it bogged down and shook really bad. 99 Grand Prix, clean car, clean interior, 1 owner and had all paperwork for everything that's been done to it. Checked the engine bay for any leaks and radiator was cracked. If we bought that we couldn't blown a headgasket and we're out of a car. Even at dealerships check the cars. If they're too lazy to change a windshield wiper because it's missing then they don't take pride in their vehicles. Always look at the cars and go through all the gears. Check engine oil for cleanliness, make sure it doesn't smell sweet or like chocolate milk which are both head gasket problems, intake gasket or messed up radiator. Check transmission fluid, radiator fluid, check for rust under the car, check engine lights (AutoZone and O'Reillys will check codes for free), make sure gauges work properly, ac/heat, check tires, brakes and rotors. My mom got $500 off her $5000 car because I noticed it shook a little when it brakes (warped rotors). If you don't know what you're looking for, have a garage look it over or pay someone to look at the cars with you. I almost bought a car with a cracked radiator but luckily I seen it. Could've blown the motor just driving it home [link] [comments]  |
| Posted: 27 Feb 2020 09:10 AM PST Title says it all. Information from my paper I-9 was submitted to a private website instead of a government site. Is my information safe, or should I be concerned? [link] [comments]  |
| Is it a bad idea cosign a loan to save my kid from a high interest car loan? Posted: 27 Feb 2020 03:00 PM PST My kid is newly 18 and while I'm quite proud of his initiative in getting a car by himself, he was taken by the dealership, a bit. The loan is 23% interest for $8500, which includes gap coverage and a service plan. The car itself was $5875. I am on his account at our credit union and they offered to refinance, and I was approved. Somehow. I don't make very much money but my credit is decent. I don't yet know the interest rate they are offering, but it surely must be lower. He has until Monday to cancel the gap insurance for a refund, so I'm having him do that. I'm not knowledgeable in any way in regards to this stuff, so any input is appreciated. [link] [comments]  |
| Posted: 27 Feb 2020 07:34 PM PST Are deductions under W2 pretty limited compared to in the past? I just put in about 3k worth and didn't see my refund move any in my favor. Wondering how much it's worth my time to keep tracking everything down. [link] [comments]  |
| How many credit cards should I have when rebuilding damaged credit? Posted: 27 Feb 2020 12:50 PM PST I made some poor credit choices a few years back. I've had one credit card for about 5 years now (59 months, to be exact). I missed 4 payments back in the first year and now I'm trying to rebuild my poor score. The main thing I'm focusing on is payment history. I've gotten approved for one secured credit card, which I don't plan on using much if at all. My question is should I stick with that or apply for one or two more? Over the next year or so, will having more recently opened accounts outweigh having an extra 12-24 months of on-time payment history? [link] [comments]  |
| Girlfriend moving into my apartment with no job or car Posted: 27 Feb 2020 05:08 PM PST My girlfriend just graduated college and we've been planning for her to move in with me. She's been trying to find a job with absolutely no luck. She also doesn't have a car and there's no telling when she'll get one. Once she moves out of her college dorm she has nowhere else to go unless she went back to live with her parents 3+ hours away. There'd be no way she could interview for jobs around here if she went back there. It would also suck for our relationship. What do I do? I'm getting stressed over the idea of her just being here and not being able to do anything for herself. She's consistently trying to find a job in her field (robotics engineering) but who knows how long that could take. How is she supposed to sustain herself with 0 income for however many months? I don't want to abandon her but I also don't want to be a lifeboat. Should we just try, stay positive and hope for the best? [link] [comments]  |
| Received a $4900 hospital bill that I absolutely can't afford Posted: 27 Feb 2020 08:40 PM PST I checked into the ER December 30th 2019 for some intense abdominal pain that I suspected was gallbladder related. It was 10pm and all the usual clinics were closed, so the ER was the only choice. I spent the next 20+ hours WAITING. They ran some basic tests, gave me morphine for the pain, and made me wait until morning so they could run special tests. Turns out it was a minor attack and they sent me home. I JUST received a bill for $4800 in the mail today. Originally the bill was $13k before my insurance kicked in. My first payment of $200 is due March 6th. They gave me a week to just magically make money appear. I'm just wondering about my options here. I can absolutely not afford a bill this large, or a payment this large. I make about 18k a year. [link] [comments]  |
| How much money is too much to put into a high yield savings account? Posted: 27 Feb 2020 12:49 PM PST Hi all, I have a high yield savings account with Discover with around 40,000 in it but I can up it to around 100,000. Is this a wise place to store all this money? Is there a better place to not let it sit around? Thanks [link] [comments]  |
| Repair or Replace My Courier Vehicle? Posted: 27 Feb 2020 07:48 PM PST Hi everyone. I've got a couple other income streams going on, but IC courier work is my main source of income. I've never actually had to go through the process of buying a vehicle, as the car I drive was inherited from a relative. It's a 2002 Honda Accord that only has 75000 miles on it. Front brakes were replaced a few months ago and are under warranty, as are my tires. The check engine light came on, and turns out it has multiple codes all relating to the transmission, which is going to need to be rebuilt. The shop I took it to quoted me $2300. My initial reaction was that of course I couldn't justify putting that kind of money into this car, it's had a couple minor accidents and sports a few dents, and probably wouldn't sell for that much even without a bad transmission. But the more I've been looking at the used car market, the more I'm having second thoughts. I'm a single woman who will probably end up going to any dealer or private seller by herself and doesn't completely know what she's doing, and I'm not confident in my ability to get an especially good deal, or that comfortable with the idea of going alone to meet any rando on Craigslist. I can pay for the repair or for a modest used car in cash without hurting that much, but from what I'm seeing I'll almost certainly end up spending more than the cost of the repair just going by sticker price, for a car that's maybe a few years newer but with probably at least 50000 more miles, and that will also be at elevated risk for major failures, whereas if I get a rebuilt transmission on my Honda, I'd be through the worst of it and could potentially get quite a few years more use out of my car. And of course, while I could theoretically swing spending more on a newer/better car, that also doesn't seem like a good decision to me, considering how fast I would end up depreciating it. I'm well aware that the repair does not make sense in terms of my car's Kelley Blue Book value, but considering what I use it for and all the considerations I've listed, could it actually be a better decision for me to just go ahead and get the repair? [link] [comments]  |
| Is it worth it to refinance my mortgage? Posted: 27 Feb 2020 05:33 PM PST I purchased a home in May of 2019 with a 4.375% interest rate. My bank is currently offering mortgage rates at 3.25%. Is it worth it? I haven't even made a year of payments. [link] [comments]  |
| Accepted to accelerated bachelors in nursing program. Looking for some help Posted: 27 Feb 2020 07:36 PM PST I just found out I have been accepted to a nursing program that costs 43k for the 18month program. I am looking for some advice on how to proceed as I will have to quit my job to attend the program. There is a possibility that I could work part time at some point, but I really want to be successful and just get the 18 months over and done with. My current situation: I am a 31 year old married mother to a 7 year old and expecting a baby at the end of June (I'll have about 6 weeks between the birth and starting the program) I'm also a unionized state employee making about 63k a year in the human services field. I have contributed about 45k to the state pension program and have a small deferred comp plan at $5,500 right now. A few thousand in savings and already have 34k of student loan debt for my first bachelor. My husband is also going to school to finish up his bachelors degree and has about 24k in loans so far and has about another year left. He works per-diem but typically works 32-40 hours a week at $20 an hour Our monthly bills currently are about $3353 a month including mortgage, car note, student loans payment groceries utilities etc. no credit card debt and we've trimmed everything down except the cell phone bill which we are in the process of getting down from $150 to $80 a month. We also expect to have the added expense of daycare. I am unaware of how much care we will need, but for full time it will be $1200 a month! So, I am planning on leaving my job to be in this program as it is a full time accelerated program. Since we will be losing my income and I am the one that makes a higher steady paycheck, I'm trying to figure out how to manage this the best way. I want to avoid taking out any refund checks from financial aid to use toward my cost of living. I need help in figuring out the best course of action When I leave state service I can take what I've contributed to the pension program and cash it out. I will be taxed 20% right away and then 10% when I file. This isn't ideal at all as I will have to either start from scratch or pay "an arm and leg" as it was described to me by the retirement board rep to get credited back the number of service years to ensure I retire "on time" IF i got back to state service and also giving 30% to the government is gut wrenching to me. My plan would be to use the money to pay for 18 months worth of mortgage payments, pay the car off and use the rest for other fixed bills. We would live off my husbands income for everything else The other option is to sell my home and use the profits to pay toward renting a small apartment preferably with utilities included for the 18 months, pay off the car, live off my husbands income etc. We owe 136k and according to realtor.com its valued at 189k. I'm unsure of the tax situation for this scenario. In all of this I would also like for my husband to not have to work so much so he focus on his program but i understand our situation and both scenarios aren't ideal. We've got a lot on our plate life wise and debt wise. It would certainly be ideal to pay school out of pocket and start a program when we can afford to manage our bills with one income, but I've got to take this opportunity that I have slowly worked so hard for. I feel that i will have a higher earning potential once i am done. Any advice would be appreciated Edit: added some things Edit 2: forgot to mention that my husbands education is cut in half thanks to the state employee tuition remission program [link] [comments]  |
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