Author Topic: any accountants out there that i can ask a question?  (Read 319531 times)

Offline yeshivabucher

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Re: any accountants out there that i can ask a question?
« Reply #2120 on: December 19, 2021, 08:29:56 AM »
If that were not the case, the only thing that matters is AGI. Contributing to a 529 doesn't reduce one's  AGI
besides for Roth IRA what are other ways to lower AGI

Offline gozalim

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Re: any accountants out there that i can ask a question?
« Reply #2121 on: December 19, 2021, 08:34:17 AM »
besides for Roth IRA what are other ways to lower AGI
not Roth IRA. Regular ira is what does it

Offline ckmk47

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Re: any accountants out there that i can ask a question?
« Reply #2122 on: December 19, 2021, 09:01:20 AM »
besides for Roth IRA what are other ways to lower AGI
Ifyou can defer some compensation into next year, this year’s Income will be lower. 
That is, get your last owed paychecks PAID OUT in 2022

Offline ae123

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Re: any accountants out there that i can ask a question?
« Reply #2123 on: December 20, 2021, 08:11:28 PM »
not Roth IRA. Regular ira is what does it
Yes, important distinction.

Offline ae123

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Re: any accountants out there that i can ask a question?
« Reply #2124 on: December 20, 2021, 08:12:33 PM »
Anyone know the criteria for getting approved for financial aid for TTI?
Income, assets, family size, etc.

Offline bubkiz

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Re: any accountants out there that i can ask a question?
« Reply #2125 on: December 20, 2021, 08:38:00 PM »
Anyone know the criteria for getting approved for financial aid for TTI?
Income, assets, family size, etc.
If "financial aid" means a Pell grant, you can check at https://studentaid.gov/aid-estimator/  which is fairly accurate.
A few pointers:
Its based off your tax return from 2 years ago- meaning for 2021-2022 school year uses your 2019 return.
Assets are as of day of filing. Student assets reduce the award by 20% of assets held. You may want to gift or otherwise dispose of student assets before filing. Note: if your AGI is under $50K (soon to be raised to $60) and are on certain federal programs (including free/reduced lunch) they do not look at assets.
Retirement accounts are not reported on the FAFSA, 529 plans are. You can make tuition payments before you file to reduce the amount in your account.

Offline ae123

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Re: any accountants out there that i can ask a question?
« Reply #2126 on: December 20, 2021, 10:03:18 PM »
If "financial aid" means a Pell grant, you can check at https://studentaid.gov/aid-estimator/  which is fairly accurate.
A few pointers:
Its based off your tax return from 2 years ago- meaning for 2021-2022 school year uses your 2019 return.
Assets are as of day of filing. Student assets reduce the award by 20% of assets held. You may want to gift or otherwise dispose of student assets before filing. Note: if your AGI is under $50K (soon to be raised to $60) and are on certain federal programs (including free/reduced lunch) they do not look at assets.
Retirement accounts are not reported on the FAFSA, 529 plans are. You can make tuition payments before you file to reduce the amount in your account.
Thank you.
Very informative.

1 - Don't 529 accounts have less of an impact on FAFSA eligibility than UTMA accounts?

2 - We were told that Yeshivos often will do a Professional Judgement (like asking for tuition payments to be deducted from AGI) to try to get someone approved, but TTI (used by many girls' seminaries) will not.
Why would that be?

Offline bubkiz

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Re: any accountants out there that i can ask a question?
« Reply #2127 on: December 20, 2021, 10:27:52 PM »
Thank you.
Very informative.

1 - Don't 529 accounts have less of an impact on FAFSA eligibility than UTMA accounts? Correct, but it still does count. If your kids are eligible to open a Roth IRS that can be a great place to move those funds too.

2 - We were told that Yeshivos often will do a Professional Judgement (like asking for tuition payments to be deducted from AGI) to try to get someone approved, but TTI (used by many girls' seminaries) will not.
Why would that be?
Professional Judgement is a document-heavy process that is open to scrutiny during an audit so everything must be rock-solid. Yeshivos do it because it helps their bottom line- an increased Pell grant is additional revenue. Seminaries/TTI don't need to do that- the parents need to come up with the difference.

Offline ae123

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Re: any accountants out there that i can ask a question?
« Reply #2128 on: December 21, 2021, 12:11:13 AM »

Thanks.
How much income does a child need to earn to qualify for a Roth IRA?

Offline ae123

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Re: any accountants out there that i can ask a question?
« Reply #2129 on: December 21, 2021, 12:27:41 AM »
Thanks.
How much income does a child need to earn to qualify for a Roth IRA?
Never mind.
Found the info here:
https://www.nerdwallet.com/article/investing/why-your-kid-needs-a-roth-ira

Offline eli1571

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Re: any accountants out there that i can ask a question?
« Reply #2130 on: December 21, 2021, 11:46:46 AM »
Is the new child credit only for those residing in the USA or for all us citizens ?

Offline Dawie

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Re: any accountants out there that i can ask a question?
« Reply #2131 on: December 21, 2021, 12:13:31 PM »
Is the new child credit only for those residing in the USA or for all us citizens ?
Lived in a main home in the United States for more than half the year (the 50 states and the District of Columbia) or filed a joint return with a spouse who has a main home in the United States for more than half the year;

Offline ae123

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Re: any accountants out there that i can ask a question?
« Reply #2132 on: December 22, 2021, 11:33:31 AM »
If "financial aid" means a Pell grant, you can check at https://studentaid.gov/aid-estimator/  which is fairly accurate.
According to that calculator, the maximum Pell Grant is $6495.
However, the schools say they get more.
How is that?

Offline bubkiz

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Re: any accountants out there that i can ask a question?
« Reply #2133 on: December 22, 2021, 01:00:21 PM »
According to that calculator, the maximum Pell Grant is $6495.
However, the schools say they get more.
How is that?
That is for 2 semesters. There is "Summer Pell" which basically allows Pell for another semester in the year (half of $6495 if full time, 12 credits, less if 3/4 time 9 credit, etc). There may be state grants as well.

Offline eli1571

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Re: any accountants out there that i can ask a question?
« Reply #2134 on: December 23, 2021, 09:47:49 AM »
Lived in a main home in the United States for more than half the year (the 50 states and the District of Columbia) or filed a joint return with a spouse who has a main home in the United States for more than half the year;
if one if the parents lived there, are they eligible to claim the child credit (300 per month)

Offline ae123

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Re: any accountants out there that i can ask a question?
« Reply #2135 on: December 23, 2021, 10:39:00 AM »
1 - Don't 529 accounts have less of an impact on FAFSA eligibility than UTMA accounts?
Correct, but it still does count.

While using the calculator you linked to, I don't see them making any distinction between 529 or UTMA accounts.
It just asks for total assets of parents and total assets of student.
@bubkiz or anyone else knowledgeable.
« Last Edit: December 23, 2021, 10:47:24 AM by ae123 »

Offline ae123

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Re: any accountants out there that i can ask a question?
« Reply #2136 on: December 23, 2021, 10:46:11 AM »
That is for 2 semesters. There is "Summer Pell" which basically allows Pell for another semester in the year (half of $6495 if full time, 12 credits, less if 3/4 time 9 credit, etc). There may be state grants as well.
If we, to save time & paperwork, have the student's assets in a UTMA account rolled over into a 529 account, will that have the same tax ramifications as liquidating/selling the UTMA account, receiving & depositing a check in a bank account, and then sending a check from the bank to fund the 529 account?
In other words, does rolling over from UTMA to 529 count as selling an investment, with the possible need (depending on amount & tax bracket of parents') to pay capital gains tax?
Thanks.
@bubkiz or anyone else knowledgeable.

Offline Dawie

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Re: any accountants out there that i can ask a question?
« Reply #2137 on: December 23, 2021, 12:42:21 PM »
if one if the parents lived there, are they eligible to claim the child credit (300 per month)
https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021

Who Qualifies for Advance Payments
To qualify for advance payments of the Child Tax Credit, you (and your spouse, if you filed a joint return) must have:

Filed a 2019 or 2020 tax return and claimed the Child Tax Credit on the return or
Given us your information in 2020 to receive the Economic Impact Payment with the Non-Filers: Enter Payment Info Here tool or
Given us your information in 2021 with the Non-Filer: Submit Your Information tool; and
Lived in a main home in the United States for more than half the year (the 50 states and the District of Columbia) or filed a joint return with a spouse who has a main home in the United States for more than half the year; and
A qualifying child who is under age 18 at the end of 2021 and who has a valid Social Security number; and
Made less than certain income limits.

Offline Definitions

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Re: any accountants out there that i can ask a question?
« Reply #2138 on: December 23, 2021, 11:43:46 PM »
I have seen people saying that they want to spend business money before the end of the year. What are the possible reasons for this? Is there some sort of tax credit that they get?

Offline ae123

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Re: any accountants out there that i can ask a question?
« Reply #2139 on: December 24, 2021, 02:55:40 PM »
While using the calculator you linked to, I don't see them making any distinction between 529 or UTMA accounts.
It just asks for total assets of parents and total assets of student.
@bubkiz or anyone else knowledgeable.
This calculator does make the distinction.
Strange that the other one doesn't.
https://www.savingforcollege.com/calculators/financial-aid-calculator