Personal Finance Tax Thursday Thread for the week of January 28, 2021 |
- Tax Thursday Thread for the week of January 28, 2021
- Wife accidentally claimed Exempt on 2020 W4. Will just paying the taxes we owe take care of everything?
- Was told by my healthcare provider that my insurance covered my eye exam 100% and now I have a $552 bill
- Won a fellowship (grant) in Switzerland. They are wire transfering to me. How much is the bank markup?
- 27 year old and have no idea how to get a grip on finances.
- Why the hell does the IRS keep saying theyre closed!?
- Was a naive 18 year old, took a gig at a "startup", now how do i report this money?
- I just learned I have an eight year old tax debt in a state I haven't lived in since 2013... but I never received a bill or any kind of notice.
- Father Committed Suicide, Life Insurance Policy is being paid out to me and my siblings, help(?)
- Buying a used car for $10k. Can pay cash but it would wipe out savings. Should I finance half?
- Can I pay off my parents' mortgage?
- Getting money from a parents death
- Planning to relocate later this year. Will I be able to get a mortgage if I change jobs?
- Sister is now a dependent (tax question)
- I received a letter in the mail from Allstate denying me insurance that I never applied for
- Am I Rothing right? IRA question.
- Will an income difference significantly affect the rates I am offered for a mortgage?
- I think I want to switch banks but I don't know what criteria by which to judge other banks.
- Is Fidelity really that great for a Roth IRA account?
- Progress: 96k loans
- Just opened a Vanguard account - any words of wisdom?
- Follow up to paying down my debt, not sure what to pay off next
- Posting for advice to give my 30yr old daughter.
- Can renting be efficient and cost effective?
- Just paid 500 EUR and almost eliminated one debt
| Tax Thursday Thread for the week of January 28, 2021 Posted: 28 Jan 2021 03:00 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: 28 Jan 2021 10:59 AM PST Hey PF, I started doing my wife's and my taxes yesterday - this is only our second year filing jointly. I noticed her federal income tax withheld was extremely low, and that's when we realized she must have accidentally claimed 'Exempt' for 2020 when filling out her W4 last year. Her company made everyone update their W4s last year online and claiming exempt is just a simple check box, which she must have accidentally clicked. It coincided with us getting married, combining our bank accounts, and her getting a raise, so neither of us really paid attention to her pay stubs during 2020. Anyways, when I entered my W2 info into FreeTaxUSA, it was estimating that we'd get some money back. After I entered her info, it is now estimating we owe $7K. Obviously this was not ideal to see, but luckily we are able to cover that. My question is: After we pay that amount are we good to go? Or should we expect any inquiries or something from the IRS? We are also in the process of closing on a house, so hoping this doesn't slow down our lending or add any complication (we're newer to this stuff, not sure how it affects each other). Thanks for any advice! [link] [comments]  |
| Posted: 28 Jan 2021 05:32 PM PST Edit: I didn't even get glasses! I haven't ordered them from the healthcare provider or from anyone else. And the bill was from my healthcare provider's OPTOMETRY office and the person who did my exam has an OD, not an MD, so was definitely an optometrist and not an ophthalmologist. Called my healthcare provider before Jan 1 to schedule an eye exam. They said I was fully covered for the eye exam even though I didn't have a vision plan (Anthem Blue Cross HMO). On Jan 1 my employer switched me over to an Aetna HMO. On Jan 13 I showed up to my appointment. I asked the receptionist at the eye institute if I would still be fully covered under my new insurance without a vision plan and they said yes. I go ahead with my exam and I'm told I have 20/20 vision but there's some room for correction if I decide to get glasses anyway to reduce eye fatigue (increased eye fatigue in recent months is the only reason I went in). Boom, I now have a bill for $552. I just got off the phone with the billing department and they said that they will call my insurance tomorrow morning but if it doesn't go my way I'll be treated as a cash patient. I asked for an itemized list of charges and the only two items were "PROVIDER VISIT" each with different procedure codes (92004 for $468 and 92015 for $84). I'm upset because I have 20/20 vision and I had an eye exam that I could have paid $75 for out of pocket at Costco. Can I haggle with the billing department and offer a smaller amount, like $150-175 up front to get them to leave me alone? I've never haggled over debt/bills before but I've read here that it's always worth trying with medical bills. [link] [comments]  |
| Posted: 28 Jan 2021 06:02 AM PST I am the lucky recipient of a Swiss fellowship to do research in the U.S. This will pay for my salary for 1.5 years. It is about 68,500 CHF (swiss francs) per year (approximately 77,078 USD). They will transfer this to me in annual installments via international wire transfer. I have an account at Wells Fargo. I read that Wells Fargo charges a markup at their discretion in converting the currency from CHF to USD. How much will I lose in during this wire transfer? Do you recommend that I ask the Swiss Fund to use a different service or for me to sign on with a different bank so that I don't lose money? edit: I just called the Wells Fargo line for foreign currency wire transfers to inquire about the Wells Fargo's exchange rate at this moment. It's 1CHF = 1.0866USD (74443.1USD) compared to google's reporting of 1CHF = 1.13USD (77405USD). So I would actually lose 2,961.9USD. That kinda sucks. Am I processing this information correctly? edit2: Thanks everyone for your input and advice. I've been reading it all. I may request to the fund to transfer the fellowship to my fiancé's Swiss account. Then transfer this in USD to my account. The foreign exchange rate markup is much less at my fiancé's swiss bank (max ~1.7%). I highly doubt the Swiss Fund would be willing or able to use other services besides a wire transfer. [link] [comments]  |
| 27 year old and have no idea how to get a grip on finances. Posted: 28 Jan 2021 06:37 AM PST 27, engaged, getting married in October, and seeking advice on how to get my finances moving in a positive direction. We just bought a house, both have salaries, and I just don't know where to start with saving, investing, etc. Whether it be pay off credit card debt as fast as possible or chisel away at the debt while saving cash? Or how to pay off debt, while saving cash, and still investing all at the same time? It's all just daunting because of all of the different advice I get. I also happen to be professional procrastinator and wanting to turn it around. Thanks in advance for the advice. [link] [comments]  |
| Why the hell does the IRS keep saying theyre closed!? Posted: 28 Jan 2021 06:23 AM PST The IRS says their office is open on their website but their phone lines say closed. I'm trying to get a hold of someone on the phone because they owe me a lot of money [link] [comments]  |
| Was a naive 18 year old, took a gig at a "startup", now how do i report this money? Posted: 28 Jan 2021 11:02 AM PST Hi! Before I continue I just would like to say YES I should have known better but alas I did not. This is super complicated but I will try to keep the backstory as short as possible. Some guy from my high school got very rich off a tech device several years ago and then moved out to CA. We are friends on FB and he often posted that he was looking to hire. After I was in the area for college and broke, I messaged him and he took me on to run his FB page and do some marketing for a kickstarter he was starting for a new tech device. He was paying me like $1250 a month for very limited works so I was happy. I asked in the beginning about W2s and provided basic information because he said his assistant would help me get all that sorted. Anyway, fast forward several months and I start to realize this "startup" isn't going anywhere. I would ask questions about production and etc but he always had an answer about delays/the pandemic/etc. I was never paid on time for my work until I aggressively pestered and would receive like 3 months worth at once over Venmo or Zelle. I asked about taxes and was promised that his financial guy would be emailing me soon. After I asked too many q's, he pivoted me to another startup, and then I started doing more digging and realized he was linked to OTHER startups that he just had other people "CEO" because he was kicked off indiegogo and kickstarter. Basically raising 100k+ over a few months and then never delivering on a product. I was very scared and confronted an assistant of his and was basically told not to do anything because he had essentially mafia connections in Asia. I was also working as an intern for the US attorneys office and broke down and spoke to my supervisor asking how to handle it because I was complicit in scamming so many people and was essentially told it isn't pursuable b/c those sites don't have a delivery guarantee and the case will probably go nowhere. I quit on bad terms with my boss and another employee put in a complaint with an FTC. I feel very, very guilty that I essentially drove hundreds of people to pay hundreds of dollars for a product they will never receive and regret it very much. All this to say, I made about $8,000 during the 6 months I worked for him (hired Dec 2019, didnt get start getting paid until Feb 2020) but have no idea how to report it or fill out my taxes. I am an undergrad student and a dependent with no other jobs so I am not filing any W2s or anything. There is no way he will fill out a 1099 for me. How do I report this income? What do I file it as? And most importantly, is there anything else I can do to stop this from continuing? [link] [comments]  |
| Posted: 28 Jan 2021 08:02 AM PST I temporarily lived in Philly as a student on and off from 2009 to 2013, my permanent residence being WV. I held a few jobs at my university while there and had taxes taken out of my paychecks, but was exempt from filing because of how little I was making. I permanently moved to WV in 2013. A family member received a notice from the Philadelphia revenue department last week, forwarded from an address that hasn't been mine since 2011, addressed to my maiden name. The letter was just a COVID update about electronic filing options, but I contacted them anyway to ensure their info was updated, since I'm no longer a resident. They emailed me a form to fill out to close my account, and said I had a small balance (about $40) from an 2013 Earning Tax Return that was in collections. Neither of which I had any idea existed. The money itself doesn't concern me because it's not much, but I don't understand I was supposed to know about this when I haven't lived there in nearly eight years and never got any notice about it in the four years I did live there. This is the first time I've received any mail at all from Philly in regard to taxes since 2014. And I have received zero correspondence from any collection agency about it. Additionally, I've been regularly checking my credit report for the past few years, and nothing about this has ever popped up. It says I have nothing in collections. I know credit reports aren't always up to date, but I'd imagine for a supposed debt that is at least 8 years old, something would have been listed on my report by now, right? Is there a way to verify this debt? Should I ask the collection agency to send proof? I'm assuming debt verification won't work since it's clearly been more than 30 days. The whole thing just seems super bizarre to me. I'll pay the $40 if I am responsible for it, no biggie, but I want to understand how this happened before I do. Thanks in advance. [link] [comments]  |
| Father Committed Suicide, Life Insurance Policy is being paid out to me and my siblings, help(?) Posted: 28 Jan 2021 11:53 AM PST It's a sh*tty situation, but the day after I found out that my dad committed suicide, his cousin called me telling me that I'm going to be getting roughly $150k in life insurance money from a life insurance policy that is actually going to payout. I'm 30(m) with a good job in IT ($85k/yr), I don't own a home, and my vehicle is paid off. My Debt: 20k in federal student loans 40k in high interest (15%) personal loan debt/ CC debt I'll admit I'm not great with managing my money and I don't want this money to go to waste. My first thought is to pay off my personal loan & CC debt and to buy a house, but I don't know what to do beyond that. Any advice? [link] [comments]  |
| Buying a used car for $10k. Can pay cash but it would wipe out savings. Should I finance half? Posted: 28 Jan 2021 09:30 AM PST My car is falling apart and I just need a holdover car for a few years until I'm ready to buy my "grownup car". I have 12k cash, homeowner, USAA (bank/ins) and a 759 credit score. I have two scenarios that I could use some help on...
USAA signature rates are 7.24%. $5k stretched over 24mos would be $224.41 monthly with a total loan cost of $5,385.84. I can live with that no problem. Which way should I go? Straight cash homie or cash and finance? Thanks all. EDIT: You guys/gals are great. The best move seems to be straight cash (homie) so that's what I'll so. I can use the monthly loan payments to pay myself back and even add more to it when possible. My head is clearer and I have direction. THANK YOU ALL SOOOO MUCH! [link] [comments]  |
| Can I pay off my parents' mortgage? Posted: 28 Jan 2021 04:17 PM PST Due to some changes in finance while investing in Dogecoin, I am looking to help my parents out and pay off the last chunk off their mortgage. I believe that it is $150,000 left. I live in Australia and so do they and the more I read into it the less I seem to know. I was wondering what the tax implications might be if I did this? And what details I would need to do it for them without them knowing that I have done it? Any advice or helpful links would be great. Or if anyone has done this before I would love to know how you went ahead and did it. [link] [comments]  |
| Getting money from a parents death Posted: 28 Jan 2021 06:56 PM PST Hello, I am writing today because I am overwhelmed by some news I got. My mother was hit by a drunk driver and we sued and I'm getting over 100,000. This is big money for me as I'm poor and It's not something I ever thought possible. I'm going to talk to a financial advisor soon but I just wanted to see what you guys had to say. I'm curious about good savings accounts to accrue Interest and paying off loans and down payments on houses. I'm just not knowledgeable on anything and I'd like to get a base plan together soon. Thank you and have a wonderful night. [link] [comments]  |
| Planning to relocate later this year. Will I be able to get a mortgage if I change jobs? Posted: 28 Jan 2021 06:06 AM PST My husband and I are planning to relocate later this year. We have been talking through this transition trying to make it as smooth as possible. We had initially decided that the best order of events would be: Find new jobs in new area, sell current house, purchase new house (need cash from the first house for the down payment on the second house). However, I've been thinking lately this might be problematic for getting a new mortgage. I remember when we purchased our current home, they wanted 2 years of work history at the same job for each of us (specially at the same job for 2 years, not just 2 years total work history). If we both get new jobs prior to purchasing the next house, is that going to become an issue when we try to get our next mortgage? My husband will be staying in the same industry as he's currently in, but moving to a higher position. I will be making a move to a new industry that I have been working towards for several years, and my salary will likely increase a small amount. We have made all of the payments on our current house on time, and typically pay a bit extra on top each month. With the money from the sale of our current home, we will have a 20% down payment for the next one, plus quite a bit left over. Both of us have good credit scores and have never missed any payments. I don't want to end up in a position where we've purchased a new house and are scrambling to find jobs to pay the mortgage, but I also don't want to be in a position where we've found new jobs in the new area, but are unable to secure a loan because of lack of work history. Renting for a bit isn't really an option. We've looked at apartments and houses for rent in the new area, but most of them don't allow the breed of dog that we have (German shepherd), and are close to 2x more expensive a month as owning a home, which would be quite difficult for us to make payments. [link] [comments]  |
| Sister is now a dependent (tax question) Posted: 28 Jan 2021 08:03 PM PST Had to take my 14 yr old sister from my Dad and her mother. Ill let your imagination run wild as to why. I took her around the 10th of December and I have guardianship now. What are the rules on claiming her on my taxes? Neither one of her parents made any money last year and neither will likely file their taxes. [link] [comments]  |
| I received a letter in the mail from Allstate denying me insurance that I never applied for Posted: 28 Jan 2021 04:34 PM PST I'm not exactly sure what happened here. I wonder if someone has used my information to apply for car insurance. Has anyone had that happened to them? if so, what did you end up doing? [link] [comments]  |
| Am I Rothing right? IRA question. Posted: 28 Jan 2021 06:52 AM PST Thanks to this subreddit(!) I set up a Roth IRA through Charles Schwab in early 2019 and deposited the $5,500 max for 2018. I split the money between three "Schwab Target Index" mutual funds with the dates of 2050, 2055, and 2060 which would put me at 60, 65, and 70 years old. In early 2020 I deposited the $6,000 maximum for 2019 and again divided the money between the same three Schwab Target Index mutual funds. Besides depositing the maximum each year, am I doing this right? Should I be investing in something else (through my Roth IRA) in addition to the three mutual funds? Should I only be investing in ONE of the mutual funds? I always hear about how important diversity is in investing and retirement but I am not much of a risk taker and anything unknown feels risky. I want to know I am doing this wisely. Thank you! [link] [comments]  |
| Will an income difference significantly affect the rates I am offered for a mortgage? Posted: 28 Jan 2021 05:39 PM PST I'm going to buy this old house for 60K. Today I just got promoted and my annual income went from 55K to 75K. There's a bit of an urgency to close this deal, but is it in my best interest to wait for that first paystub before applying for a mortgage? This would be my first home. [link] [comments]  |
| I think I want to switch banks but I don't know what criteria by which to judge other banks. Posted: 28 Jan 2021 04:17 PM PST So I'm not in love with my bank. I've been with them for, like, 10 years because they were the only bank that would give me a credit card after my previous bank dropped me. I've stuck with them mostly because it's comfortable. After a couple of years I got a better credit card through them and they bought my mortgage a few years later, so now all of my finances are in one place and it's just so easy that way. But I rolled some 401ks over into IRAs with them and after way too long, I'd like to invest that money. I'd also like to transfer my savings (like my emergency fund) to an account where it might get some interest (current savings account is 0.01%). I've heard it's not a good idea to close a credit account (and my credit score nowadays is incredible), which is fine because it's a free card through my current bank and I kinda like it (decent points back and stuff) but what about my checking account? Is there really a reason to have an interest free checking account or is it good enough to have a credit card and a savings account? I've heard about (and looked a little into) Wealthfront as a possible option but I'm not used to what seems like a 100% digital bank. [link] [comments]  |
| Is Fidelity really that great for a Roth IRA account? Posted: 28 Jan 2021 02:15 PM PST Hi all! I'm looking to start saving for retirement (I'm 23 and fresh out of college and want to start ASAP.) I've been looking into opening an account with Fidelity and it really seems like a great place, but I'm worried that my inexperience is clouding my vision and maybe I'm over looking something. Is Fidelity really all that great? The no fees, no minimums, max of $6k a year sounds great for someone who is low-income as a recent grad. For anyone with experience in opening/maintaining a Roth IRA through Fidelity, what do you like and dislike about it? Thanks! [link] [comments]  |
| Posted: 28 Jan 2021 07:44 PM PST I had 96k in loans. CC: 1550.27 Car: 16,999.57 SL: 77,769.57 I paid of approximately 39k in 1.5 years living at home. Car, CC paid off. Some SL paid. I first saved 1000k and then started paying my debt. I make 62k a year. About 90% of my income goes to loans. 96k to 57k. Question? Is this progress? How am I doing? 27 M, CA. [link] [comments]  |
| Just opened a Vanguard account - any words of wisdom? Posted: 28 Jan 2021 01:38 PM PST Hello, amazing community! I just opened my first taxable brokerage account with Vanguard and deposited $3000. Based on my reading of many posts on this forum, I plan to invest this in VTSAX to start off. I also plan to deposit 2000 every month. Do you suggest splitting my future deposits between VTSAX and VFIAX or just stick to one? I also have a separate 401k 2055 target date account with 80-20 stock to bond mix at the moment. Any advice is appreciated! [link] [comments]  |
| Follow up to paying down my debt, not sure what to pay off next Posted: 28 Jan 2021 08:38 PM PST I have my student loans with no interest on them for now sitting about 4K, CC debt at about 5k, and my car at 12k. What should I attack next? Minimum payment on CC? I have no intrest on it till October. And attack my student loans ? [link] [comments]  |
| Posting for advice to give my 30yr old daughter. Posted: 28 Jan 2021 03:36 PM PST Here's the facts: She's 30, with a 10 yr old son. Had been living with boyfriends and family the past 10 yrs. Family member is kicking her out in few weeks. She has no credit , no car. She's a hard worker when she does have a job but having a son she's had to be home to keep him on track with school. As well as recently been caring for grandmother who is wheel chair bound. What can she do to move out. How can she get a place on no credit? She has enough $ from stimulus to move out but no job until she gets a place and can look nearby. [link] [comments]  |
| Can renting be efficient and cost effective? Posted: 27 Jan 2021 10:47 PM PST I have a house but, to be honest, I just don't wanna deal with being tied down anywhere so I was considering selling it and renting a smaller space in a more convenient location My main concern is, is this a poor financial decision? [link] [comments]  |
| Just paid 500 EUR and almost eliminated one debt Posted: 28 Jan 2021 03:21 PM PST Back in October, I borrowed 3,500 EUR from person A and 2,000 EUR from person B. Today I paid 500 EUR to person B, bringing my debt to them to 200. Almost done! I have given 1,000 EUR to person A so 2,000 EUR more to go for them. In total 2,200 EUR and I am done! With my salary of 2,000 EUR per month and monthly expenses of 1,000 EUR per month within two months I am done! [link] [comments]  |
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