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Tagged With "Federal Income Tax"

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Re: Is Your Life Taxing?

Lisa Eichinger ·
I also have been doing my own taxes for well over 20 years. It's a money saver if you know what you are doing. This up coming year will be a bit different due to tax changes but probably simpler for those who know how to do them.
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Re: Is Your Life Taxing?

Briana ·
What tax changes will be different this upcoming year @Lisa Eichinger ?
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Re: Is Your Life Taxing?

Lisa Eichinger ·
There are no more exemptions for each person, the standard deduction has increased, the tax rate has decreased, and W2 employees can no longer deduct unreimbursed work expenses, to name a few.
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Re: Is Your Life Taxing?

Briana ·
Thanks for sharing, I wasn't aware of some of these!
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Re: Is Your Life Taxing?

Lisa Eichinger ·
My pleasure! I prepare taxes as a second job so I have to keep up the changing laws
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Re: Is Your Life Taxing?

Wen Dee ·
In Florida and maybe other states AARP offers free tax prep/filing for anyone in the community. We have used this service for years.
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Re: How Do You Do Your Taxes? Yourself or Someone Else?

Lisa Eichinger ·
Sorry. @Moore income: turbo tax and H&R block are still good places to do taxes on your own cause they will walk you through everything online. It will generally be up to you if you want to pay to get them done and how much you are willing to pay. Credit Karma also offers free tax filing if you have an account with them. Even with the changes in your life in the past year, it won't make things too difficult in the tax aspect if you decide to do them online by yourself.
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Re: How Do You Do Your Taxes? Yourself or Someone Else?

Moore Income ·
@Lisa Eichinger Thanks for the clarification. I was hoping that would be the case but wasn't sure.
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Re: How Do You Do Your Taxes? Yourself or Someone Else?

Jeff ·
I have used H&R Block to do them myself for over a decade, after experiencing the additional fees with Turbo Tax that you mentioned, makes it accurate. Before those programs, I used a CPA for my businesses and he plugged in the numbers and charged a fee, was disappointed with what I got back and double-checked everything. They don't always ask questions as to why you did something and/or how you used it, which cost me a ton of time to redo my tam and get quite a bit back. (Ex: I bought...
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Re: Is Your Life Taxing?

FreebiePharm ·
I have only ever done my own taxes. IRS website has great resources if you need assistance and I pay a minimal fee for Turbotax for extra guidance.
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Re: Is Your Life Taxing?

Bonnie Squires ·
thank you for the info
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Re: Who taught you your most important money lesson and what was it?

Bonnie Squires ·
Once I get my tax return I putting a good amount of money in the bank. Once I get a bill from my old place paid off than that will go into the bank account it wont be much only $10 a week but that an extra $40 a month in the bank.
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Re: How Do You Do Your Taxes? Yourself or Someone Else?

Bonnie Squires ·
Last year my son did mine. This year i did my own with turbo tax. they all so have a free one threw turbo tax that my son did for his brother this year.
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Re: Tax Return and Tax Reform

Moore Income ·
I have been dreading doing my taxes this year... I started doing them on Tax Act and when I filled out the main info for my wages, it calculated a decent return for me. But I chose "married filing jointly" since I got married in July of 2018. When I added my wife's income, my return dropped to $600 owed in taxes. I didn't have health insurance last year and my wife only had it part of the year. Is this the reason it changed to taxes owed? Would you know why it would drop like that? Would it...
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Re: 401k contribution

Moore Income ·
I know for a fact there is a savers credit for contributing to a ROTH IRA. My tax preparer was saying it only was for contributing to a traditional IRA but I did my research and was able to take advantage of it to not have to pay in at all to federal taxes. (I even got a few bucks back!) It depends on your income situation for the savers credit. For a traditional IRA, there is something but I am not well versed on exactly how that works. I would just recommend doing a little research to see...
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Re: What's the best way to teach kids about money?

tg ·
When my son (now 32) was 2 he was constantly asking me to buy things at the checkout (candy and junk at kids eye level.) I solved it and helped him learn about money in one swoop. We gave him an allowance - $0.50 a week. To earn that he had to do one age appropriate chore (which he picked and agreed to do.) Other chores around the house were also done, "because he was part of the family." Each week he received his allowance and had 2 piggy banks, he had to deposit a quarter into each of...
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Re: If you could squash one of your bad financial habits today — without having to work hard at it — which one would you choose?

Nicole ·
I struggle with no being an income earner in the household. Because we have a child with a medical condition, I don't work outside of the home. I do lots to save money & run the household. Tax wise, it isn't worth it for me to do side hustles or work part-time. I do know that I contribute a lot to the household & family.
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Re: If you could squash one of your bad financial habits today — without having to work hard at it — which one would you choose?

Leslie Kay ·
Many side hustles don't report income until you make $500 or they pay in cash or trade. Secret shopping, buy and sell on Marketplace, letgo, Poshmark, Thredup. Waitressing for a few hours that pays tips. I have never found a side hustle to disrupt my disability or tax situation except straight out part time jobs such as taking care of elderly or disabled family or babysitting or I worked for American Greetings and Hallmark stocking cards. Its all a few hours a week. You can negotiate pay.
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Re: January No Spend Challenge

AnnMarie L. ·
Yay Dboothe! That’s great! I’ll do it and will report how much $$ I’m NOT spending. We got hit with a big tax bill and medical insurance costs so I’m motivated. And having the support of this group will help too.
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Re: January No Spend Challenge

dboothe ·
ANNMARIE L, I am so impressed that you made a spreadsheet in October. That was great planning ahead. I am a senior citizen and struggle doing anything but minor computer emails, posting on groups, paying bills. My main problem, that REALLY worsened in December was eating out. I am tired of planning and cooking and the clean up. There are only two of us and occasionally my grandson to feed. I already slipped up slightly. I had a $10 credit at Pizza Johns and yesterday 1/3, I used it to get a...
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Re: Future home and retirement

KellyFromKeene ·
I purchased a condo a few weeks ago. I too, was tired of paying well upwards of $1000 (me and 2 children) for an apartment. I was looking at mobile homes but the park rents are all about $600. I knew I didn't want to buy on my own land because I didn't want that kind of maintenance. I found a condo that, even with the monthly fees, is $300 less than my rent. It's not luxurious, but it is certainly suitable for my family. I had been saving for about 7 years, every tax return, etc, for a down...
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Re: Reloadable pre-paid debit card

JaDawn ·
There are several ways that you can add money to your PayPal Prepaid MasterCard: Direct Deposit: Direct deposit is the easy and free way to add all or part of your pay check or government payment to a PayPal Prepaid Card. You must enroll in direct deposit in order for your card account to receive these electronic deposits. LEARN MORE NetSpend Reload Network: Our reload network is nationwide. There are more than 100,000 convenient locations where you can add money to your card account. It's...
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Re: Inheritance

Gretchen Mann ·
I'm so sorry that these times are so difficult for you and your husband. I have some suggestions. Your credit card debit probably has the highest interest rate. I would pay this first and pay it off entirely. Your home mortgage will qualify tax deductions, so this is the last loan to pay off. The emergency fund is also very important to do at this time. Six to twelve months of emergency funds in a liquid vehicle would be appropriate. In view of this, you might want to beef up your emergency...
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Re: Inheritance

mintjulep ·
I am so sorry to learn your husband is fighting a life-threatening disease. I know your question about taxing the inherited IRA is specific and I think you should discuss your options with a CPA and financial adviser to review some points: Does your health insurance cover cancer treatments and care? Is your IRA inheritance a standard IRA or a Roth? And when did the inheritance become available? The new SECURE act has made some changes to inherited IRAs for beneficiaries effective Jan 1 of...
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Re: Financial Fitness February: Day 10

mintjulep ·
@lismox, you had a great day!! Congratulations and thanks for tips about Craigslist and focus groups. I've barely given Craigslist any attention in the past, but it sounds like I need to do that! I have a quick question for Jeremy and/or Jon about ebay. In the past, I've only sold my own household items in the hopes of getting rid of things while making some money at the same time. I would like to escalate to selling sourced items. I'm not interested in opening a store on ebay. I realize...
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Re: Financial Fitness February: Day 10

JeremyM ·
Hi @mintjulep You absolutely don't need a store. eBay gives you 50 free listings per month. However, eBay recently added a Starter level store that is very inexpensive ($8 month) for 100 listings. As for sales tax, eBay takes care of all states that have passed the Marketplace Facilitator Law. The only tax you would have to worry about is your in state sales. There are still states that haven't passed or started the MFL, you do not need to worry about those and when you do, eBay is the one...
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Re: Financial Fitness February: Day 10

mintjulep ·
Ok, I must be confusing Amazon with ebay on the gating. Thanks Jeremy and Jon for setting me straight on that! I was getting all my ducks in a row to reopen my etsy shops and my ebay account last Fall, when I stumbled into the new sales tax mess. I realize ebay and etsy are collecting the sales tax now, but there are still some major issues.......the 1099s (which I won't likely qualify to receive due to slow sales when I restart my shops) are lumping all kinds of fees and taxes together...
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Re: Financial Fitness February: Day 21

redcatcec ·
It was a slow day for us too, just stayed home and hung out, at least we did not randomly spend money. The property tax was overdue, we finally got that straightened out by a earlier trip to the courthouse. My husband is retired and a veteran, also 100% disabled. Because he served so long and is disabled, we are eligible for a property tax exemption, because of when we filed with the county we had to pay a fraction of the tax due $418 ( usually over $1,000 and rising each year), next year it...
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Re: 401k loans - a bad idea?

Dear Penny ·
Hi @Theodora ! Such a great question! The coronavirus relief bill that the Senate is currently voting on would make 401(k) loans a way better option than they usually are. Basically, it would give you an extra year to pay back the loan and let you borrow double what you usually can ($100K max instead of the usual $50K max), provided that the loan is related to COVID-19 income loss or illness. The bill would also waive the 10% penalty you usually pay if you withdraw the money outright instead...
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Re: Stimulus check

M Naeger ·
That is great news! I thought I would have to report it on my 2020 taxes, similar to a tax refund check.
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Re: Stimulus check

Shannon H ·
If you collect unemployment and receive the additional $600 weekly, that is taxable. If you collect for the full 4 months, the approximately $10,000 will put you into a higher tax bracket next year come tax season.
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Re: Stimulus check

Lynette Carothers ·
The question is good, but with one caveat, what if your SSD is below the threshold to file an income tax return? Many actually, most of us who are on SSD have not filed. I have even taken names and ID numbers of the IRS employees who have told me there is no reason to file. Is this practice going to cause a delay? Unfortunately, being disabled and in the "high risk" group the cost of every day things have put a strain on my budget. For example, just to have someone stop and get my garbage...
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Re: Stock strategies

Dear Penny ·
Good afternoon @Lily ! Both Appian and Zoom are publicly traded, so you don't have to wait to cash out. However, it's usually best to think long term when you're investing. For most of us, the taxes and fees eat up returns from frequent trading, plus you usually make the real money from letting your money grow over a long horizon and holding on even when the market takes a dip. One thing to keep in mind is that the taxes are lower when you hold onto an investment for at least a year. When...
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Re: Stimulus check

Jenny Waldensi ·
The last income tax filed will be their guiding light as to who gets the stimulus check. Go to mysocialsecurity.gov site, you can check and make sure they have your latest address, etc. If they have all your current information (and they deposit your SSDI into your bank automatically) then the gov't will be able to do that with the stimulus check. Call you local IRS office to make sure they have what is needed to make sure you get that check! I hope it goes well - and quickly! - for you.
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Re: Stimulus Check

Leslie Kay ·
There will be a Treasury website that will allow you to register yourself hopefully by the end of April and those checks are an eta of September. I do not think that you can get the stimulus for your grandchildren unless you file a 2019/2020 tax return and claim them as dependants. Which is free and should be done immediately. If you choose that route. If you are depending on the registry to get your check you will not get paid for dependents. This info is a compilation of articles I have...
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Re: Stimulus Check

Dear Penny ·
Hi @Amelia Denetchiley , yes, you should be eligible. But you don't want to wait for your Social Security to be sorted out to apply. The best solution is to file a 2018 or 2019 simple tax return. I promise: It really is painless and should only take a few minutes. I just wrote a quick guide on how to file a simple return: https://www.thepennyhoarder.co...e-simple-tax-return/ And @Leslie Kay is right! Even if you were receiving Social Security benefits, you'd need to file a tax return to get...
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Re: Stimulus

A Penny Pincher's Guide ·
Teresa, BLUF - you should. There has been a lot of conflicting guidance from the IRS on whether you will need to file a tax return from 2018/2019 to get if. The latest info from the IRS stated that you should not have to file a return in order to be eligible. If the IRS does not have your bank account information on file, they stated they were going to come up with a system for your to input the relevant deposit information so you can get the check sooner. Unfortunately, that hasn't...
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Re: Stimulus

Leslie Kay ·
yes, I read that they are due around the 23rd. Right now they are paying people that filed income tax returns thru Wednesday direct deposit. Now if you have dependents you need to go on the Treasury website and enter this info otherwise it will be direct deposited into the same account as your benefits. I have not seen mine yet and I do not file taxes each year.
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Re: Stimulus check

Dear Penny ·
@glenn Britt I think she should be able to. She doesn't even need to file a tax return now. The IRS created a Non-Filer tool that allows people who don't normally file taxes to submit a few pieces of basic info: https://www.irs.gov/coronaviru...er-payment-info-here If your mother is receiving Social Security, the IRS should be able to take information from her benefits statement to process her payment... but honestly, we're all confused about how a lot of scenarios like these will work when...
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Re: Stimulus pmt

Dear Penny ·
@Charlene s Braden Yes, as long as your grandson wasn't claimed on anyone's tax return in 2019, he should qualify for a $1,200 payment! The reason so many people his age aren't getting stimulus payments is that their parents claimed them as dependents. Tell him to go to the IRS Non-Filer tool here: https://www.irs.gov/coronaviru...er-payment-info-here He'll need to submit a few basic pieces of info, like DOB, Social Security number and driver's license or state ID if he has one. It should...
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Re: Stimulus pmt

Charlene s Braden ·
Ty so much Penny. I will help him to do that. I have another grandson who had just returned to his seasonal (tourist) job & got laid off due to the virus but when he filed for unemployment he was denied. If it weren't for being shut down he would be working & he did file his income tax. He's truly struggling because he hasn't gotten his return yet nor unemployment & of course no stimulus check. I told him to re-apply because I think it's illegal to deny him unemployment under...
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Re: IRS stimulus payment

Marjorie Ferrini ·
According to Forbes, the stimulus checks are tax-free.
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Re: IRS stimulus payment

Leslie Kay ·
You will NOT have to pay taxes on the stimulus check. SSI recipients do NOT have to claim it as income. People that filed 2018/2019 taxes had in the majority received their check unless there is a problem with your banking info and you need to go to the IRS website and update your DD info and wait 10 days before receiving an update on when your credit will be sent to you. SSI/SSDI recipients will start receiving their DD's for $1200 starting next week. I have read the 19th, 20th and 25th.
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Re: Ready for your questions!

Carolinagrl ·
I receive SSI thru DD and I file taxes direct, not thru a tax company. I receive a very small refund via direct deposit. I checked the IRS tracking site yesterday and it said my check was mailed Friday. Mailed. That was a surprise! You just never know with the government!!
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Re: Economic Stimulus Check

E Nelson ·
"-Issue: Business Rule R0000-902-01 - Taxpayer TIN in the Return Header must not be the same as a TIN of a previously accepted electronic return for the return type and tax period indicated in the tax return.-" I'm Not a tax person WhatSoEver but I'd interpet this as it saying that someone previously used the same tax TIN on these forms. I'm thinking she used the info from the 2018 return. Maybe your wife used the tax return your trying to use to file these forms. Did you in 2019 or 18 file...
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Re: Economic Stimulus Check

E Nelson ·
I went to the links you and the IRS gave you. Last year did someone claim you as a dependent? The year before? Your error code and what it means is R0000-902-01 The taxpayer's social security number was claimed on a tax return previously accepted by the IRS. Review the entries on the 'STEP 1. Fill Out Your Tax Forms' tab and make sure the question on whether the taxpayer can be claimed as a dependent is correct.
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Re: stimulus check confusion

maria rose ·
If you receive SSDI through DD and have not changed bank account numbers, then you will get it through DD. My question to you did you file your 2019 taxes yet or have waited to file until July 15, 2020 extension? If you didn't you can update your address with IRS on the tax form, but I am quite sure IRS has all your income information attached to your SS# already. The stimulus check was based on the current income level received by IRS attached to your SS#. I believe they sent out the...
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Re: When will social security recipients get stimulus payments

Leslie Kay ·
@Lorenda Wilson From the sources that I have read SSI non-tax filers are due to receive their payments via DD starting 4/29 thru the first week of May. No one that I have seen in multiple forums that receive SSI and did not file taxes has yet to receive their stimulus check as of today. We are all waiting at this point and the IRS has just been very general by saying end of April or first week of May. Hang tough!
 
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