Author Topic: any accountants out there that i can ask a question?  (Read 223195 times)

Offline free123cc

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Re: any accountants out there that i can ask a question?
« Reply #1950 on: March 02, 2021, 11:29:56 PM »
where can I run the numbers? I don't know what my income will be in 2 yrs...

Online Shmulie

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Re: any accountants out there that i can ask a question?
« Reply #1951 on: March 02, 2021, 11:34:36 PM »
Hi, need some tax advice. I am ready to file taxes for 2020. My income is between 30-35k. I have 2 kids so my EIC will be quite large. Does it make sense to open a IRA, deposit around 6k, which would then lower my taxable income to about 24-29k and get me about a extra 1k on my EIC? and I could potentially get more refund due to having less of a tax liability and also due to the savers credit?
I don't plan on keeping the money there for a long time. I would wanna buy a house in the next 2 yrs (approx), so I would be able to take out up to 10k penalty free from a IRA for first time home buyer.

The main issue I have is if I would want to get a mortgage I would obviously have to be making a lot more than 35K, so in 2 years from now when I gd willing have a larger income and I pull the money out to buy a house, my tax bracket on the money I put in will be potentially be considerably higher than it is now.

any advice would be appreciated. thanks

At your income level / tax bracket it might make more sense for you to put it into a Roth IRA, IIRC a Roth contribution still qualifies for the savers credit

Offline free123cc

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Re: any accountants out there that i can ask a question?
« Reply #1952 on: March 02, 2021, 11:35:58 PM »
a Roth might qualify for the savers credit, but how would that help me in raising my EIC ?

Online Shmulie

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Re: any accountants out there that i can ask a question?
« Reply #1953 on: March 02, 2021, 11:50:20 PM »
a Roth might qualify for the savers credit, but how would that help me in raising my EIC ?

30-35k is after the 24k standard deductions?

how much more would the EIC come out to if you contributed to your IRA?

Try doing it both ways on one of the free estimators

Offline free123cc

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Re: any accountants out there that i can ask a question?
« Reply #1954 on: March 03, 2021, 12:00:05 AM »
30-35k is before the 24k deductions. difference between ira and no ira is about 1000 gain. only issue is how much I would have to pay in taxes when I pull it out to buy a home

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Re: any accountants out there that i can ask a question?
« Reply #1955 on: March 03, 2021, 12:20:11 AM »
30-35k is before the 24k deductions. difference between ira and no ira is about 1000 gain. only issue is how much I would have to pay in taxes when I pull it out to buy a home
I'm not an accountant so I can't be sure but I think that after the standard deductions you would already be at the max for the EITC

also I tried putting in your info as best as I could on this website https://turbotax.intuit.com/tax-tools/calculators/taxcaster/ and it looks like the refund would be the same with or without a regular IRA contribution, I don't think this website accounts for a savers credit though

Online Shmulie

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Re: any accountants out there that i can ask a question?
« Reply #1956 on: March 03, 2021, 12:27:44 AM »
I'm not an accountant so I can't be sure but I think that after the standard deductions you would already be at the max for the EITC

also I tried putting in your info as best as I could on this website https://turbotax.intuit.com/tax-tools/calculators/taxcaster/ and it looks like the refund would be the same with or without a regular IRA contribution, I don't think this website accounts for a savers credit though

also tried it on this one and got same result https://www.efile.com/tax-service/tax-calculator/

Offline mord1

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Re: any accountants out there that i can ask a question?
« Reply #1957 on: March 03, 2021, 12:51:39 AM »
30-35k is before the 24k deductions. difference between ira and no ira is about 1000 gain. only issue is how much I would have to pay in taxes when I pull it out to buy a home
there is no penalty for taking money out of an ira as a first time home buyer

Online Shmulie

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Re: any accountants out there that i can ask a question?
« Reply #1958 on: March 03, 2021, 12:57:51 AM »
there is no penalty for taking money out of an ira as a first time home buyer
Pretty sure he knows that...
I would wanna buy a house in the next 2 yrs (approx), so I would be able to take out up to 10k penalty free from a IRA for first time home buyer.
I think he's asking if it's worth it to take the tax deduction now if his tax bracket will likely be higher when he takes it out and needs to pay taxes on it

Offline free123cc

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Re: any accountants out there that i can ask a question?
« Reply #1959 on: March 03, 2021, 02:07:19 PM »
I'm not an accountant so I can't be sure but I think that after the standard deductions you would already be at the max for the EITC

also I tried putting in your info as best as I could on this website https://turbotax.intuit.com/tax-tools/calculators/taxcaster/ and it looks like the refund would be the same with or without a regular IRA contribution, I don't think this website accounts for a savers credit though


will check out both those links and put in exact numbers. thank you very much!

Offline lifetimedeals

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Re: any accountants out there that i can ask a question?
« Reply #1960 on: March 04, 2021, 11:27:32 AM »
Anyone know what is the average cost to make a year end corporate tax return? Thanks

Offline YoelFried

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Re: any accountants out there that i can ask a question?
« Reply #1961 on: March 07, 2021, 12:47:49 AM »
Anyone know what is the average cost to make a year end corporate tax return? Thanks
$350 < $5000

Offline good sam

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Re: any accountants out there that i can ask a question?
« Reply #1962 on: March 07, 2021, 07:58:18 PM »
A handyman in NY is charging me sales tax on the entire invoice, including labor (general repairs and painting) and materials. Is that correct?
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Offline lubaby

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Re: any accountants out there that i can ask a question?
« Reply #1963 on: March 07, 2021, 08:03:15 PM »

Offline good sam

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