Author Topic: any accountants out there that i can ask a question?  (Read 490502 times)

Offline Josef.koney

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Nov 2014
  • Posts: 2018
  • Total likes: 19
  • DansDeals.com Hat Tips 0
    • View Profile
Re: any accountants out there that i can ask a question?
« Reply #1580 on: June 06, 2018, 02:48:39 PM »
A scholarship may be counted as income. In your case it sounds like it would. IINM for tax year 2018 you would be required to file if you earned at least $24,000 not from self-employment. (Net SE income above $400 causes filing requirement.) There may additional cases, though, of a filing requirement even if you earned less than 24K.
Thanks so much!  Does requirement to file mean also paying taxes ?  Or just the need to file? 

Offline Jack out of the box

  • Dansdeals Platinum Elite + Lifetime Gold Elite
  • ******
  • Join Date: Oct 2015
  • Posts: 754
  • Total likes: 70
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: ארצינו הקדושה
  • Programs: Chase UR, BA Avios, AAdvantage, UA Mileage Plus, SPG
Re: any accountants out there that i can ask a question?
« Reply #1581 on: June 06, 2018, 04:52:46 PM »
Thanks so much!  Does requirement to file mean also paying taxes ?  Or just the need to file?
Just need to file. Whether or not you'll have to pay tax depends on many factors.

Offline ckmk47

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Aug 2012
  • Posts: 7961
  • Total likes: 1044
  • DansDeals.com Hat Tips 3
  • Gender: Female
    • View Profile
  • Location: brooklyn
Re: any accountants out there that i can ask a question?
« Reply #1582 on: June 07, 2018, 03:22:48 AM »
Thanks so much!  Does requirement to file mean also paying taxes ?  Or just the need to file?
Taxes (for individuals) are due on April 15. You are required to file taxes by that date, too, but for that you can file an extension. (very simple)  So when you file your extension, you need to pay the taxes due.  When you eventually file, if you've over paid, you get a refund.   If you've underpaid, you get to pay interest from April 15 for the shortfall.
My favorite cause: cssy.org

Offline henche

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: May 2011
  • Posts: 4183
  • Total likes: 447
  • DansDeals.com Hat Tips 0
    • View Profile
Re: any accountants out there that i can ask a question?
« Reply #1583 on: June 07, 2018, 11:53:46 AM »
I'm starting to get some money from 'scholarships' (dad giving money to organization to get tax deductible and they give me as a scholarship)
My question is, is that called income?  Do I need to file it? 
Also in general, for me and wife, how much would I need to make to have to pay taxes? TIA

Maybe ask the organization how they think it is reported? I'm not sure why they're calling it a scholarship instead of a charitable grant, but I know nothing about their system or how it works from a tax perspective.

Offline Jack out of the box

  • Dansdeals Platinum Elite + Lifetime Gold Elite
  • ******
  • Join Date: Oct 2015
  • Posts: 754
  • Total likes: 70
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: ארצינו הקדושה
  • Programs: Chase UR, BA Avios, AAdvantage, UA Mileage Plus, SPG
Re: any accountants out there that i can ask a question?
« Reply #1584 on: June 07, 2018, 02:12:10 PM »
Maybe ask the organization how they think it is reported? I'm not sure why they're calling it a scholarship instead of a charitable grant, but I know nothing about their system or how it works from a tax perspective.
You should get your tax information from an accountant who knows your financial picture, not from an employee of some organization who may be unaware of all the fine details of tax law.

Offline schneury

  • Dansdeals Platinum Elite + Lifetime Silver Elite
  • *****
  • Join Date: Feb 2011
  • Posts: 540
  • Total likes: 30
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: Brooklyn
Re: any accountants out there that i can ask a question?
« Reply #1585 on: June 10, 2018, 09:42:55 PM »
When filing sales tax, where do i put in returns?

Offline Josef.koney

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Nov 2014
  • Posts: 2018
  • Total likes: 19
  • DansDeals.com Hat Tips 0
    • View Profile
Re: any accountants out there that i can ask a question?
« Reply #1586 on: June 11, 2018, 11:03:11 AM »
Thanks for everyone's input. It helped lots! 

Offline davidd75

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Jan 2012
  • Posts: 3875
  • Total likes: 120
  • DansDeals.com Hat Tips 3
    • View Profile
  • Location: new jersey
Re: any accountants out there that i can ask a question?
« Reply #1587 on: June 12, 2018, 12:28:06 PM »
any suggestions on w/d funds from a mutual fund if i need some cash.  only other option of getting funds is through HELOC 4.5 interest rate

In other words If I have multiple funds from which one should I w/d 3K? 

any other tips I should keep in mind when w/d from mutual funds

Online aygart

  • Dansdeals Lifetime 10K Presidential Platinum Elite
  • *******
  • Join Date: May 2008
  • Posts: 17396
  • Total likes: 14333
  • DansDeals.com Hat Tips 14
    • View Profile
    • Lower Watt Energy Brokers
  • Programs: www.lowerwatt.com
Re: any accountants out there that i can ask a question?
« Reply #1588 on: June 12, 2018, 12:44:12 PM »
any suggestions on w/d funds from a mutual fund if i need some cash.  only other option of getting funds is through HELOC 4.5 interest rate

In other words If I have multiple funds from which one should I w/d 3K? 

any other tips I should keep in mind when w/d from mutual funds
Each fund will have different tax ramifications based on when you invested, how much they grew or dropped, how much they distributed, whether their gains are long or short term etc
Feelings don't care about your facts

Offline davidd75

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Jan 2012
  • Posts: 3875
  • Total likes: 120
  • DansDeals.com Hat Tips 3
    • View Profile
  • Location: new jersey
Re: any accountants out there that i can ask a question?
« Reply #1589 on: June 12, 2018, 05:35:17 PM »
Each fund will have different tax ramifications based on when you invested, how much they grew or dropped, how much they distributed, whether their gains are long or short term etc

Is using money from Heloc better at 4.5% for about 3k w/d?

Offline churnbabychurn

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Jul 2012
  • Posts: 7355
  • Total likes: 301
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: Lakewood
Re: any accountants out there that i can ask a question?
« Reply #1590 on: June 12, 2018, 08:30:37 PM »
Is using money from Heloc better at 4.5% for about 3k w/d?
Hard to imagine that your tax rate on the gains is so high

Offline gozalim

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Oct 2008
  • Posts: 4255
  • Total likes: 812
  • DansDeals.com Hat Tips 0
  • Gender: Male
    • View Profile
Re: any accountants out there that i can ask a question?
« Reply #1591 on: June 12, 2018, 08:57:14 PM »
Hard to imagine that your tax rate on the gains is so high
no, but the funds are also earning apy, so if they're earning close to 4%, plus whatever tax ramifications, might be worth borrowing

Offline davidd75

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Jan 2012
  • Posts: 3875
  • Total likes: 120
  • DansDeals.com Hat Tips 3
    • View Profile
  • Location: new jersey
Re: any accountants out there that i can ask a question?
« Reply #1592 on: June 13, 2018, 05:18:38 PM »
looks like as per accountant its 15% tax rate on w/d from investments for most of us in the middle brackets

Offline davidd75

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Jan 2012
  • Posts: 3875
  • Total likes: 120
  • DansDeals.com Hat Tips 3
    • View Profile
  • Location: new jersey
Re: any accountants out there that i can ask a question?
« Reply #1593 on: June 19, 2018, 09:32:39 AM »
here are the details.

Hi I need to w/d 3K. Is it better to use me HELOC at 4.5% or w/d from my Fidelity mutual fund that has approx 21K which consists of 14k principal and 7k in earnings. My tax bracket is 22%.

Offline churnbabychurn

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Jul 2012
  • Posts: 7355
  • Total likes: 301
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: Lakewood
Re: any accountants out there that i can ask a question?
« Reply #1594 on: June 19, 2018, 10:29:15 AM »
looks like as per accountant its 15% tax rate on w/d from investments for most of us in the middle brackets
Right

Offline ckmk47

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Aug 2012
  • Posts: 7961
  • Total likes: 1044
  • DansDeals.com Hat Tips 3
  • Gender: Female
    • View Profile
  • Location: brooklyn
Re: any accountants out there that i can ask a question?
« Reply #1595 on: June 19, 2018, 12:08:44 PM »
here are the details.

Hi I need to w/d 3K. Is it better to use me HELOC at 4.5% or w/d from my Fidelity mutual fund that has approx 21K which consists of 14k principal and 7k in earnings. My tax bracket is 22%.
Do I understand correctly?
You need $3,000 now.
You can borrow it at 4.5% each year, resulting in paying ~ 9% of principal over 2 years, 13.5% over 3 years, 18% over 4 years (of course you'll be paying it back, so you''l be spending less on the interest over time.)
You can take it out of your mutual fund, with an up front hit of ~ 15% in taxes AND a loss of the income you would be making on that $3000 in the mutual fund.


If you can repay the HELOC quickly, go that route. A payback time of even 2 years will be more cost effective.
My favorite cause: cssy.org

Offline davidd75

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Jan 2012
  • Posts: 3875
  • Total likes: 120
  • DansDeals.com Hat Tips 3
    • View Profile
  • Location: new jersey
Re: any accountants out there that i can ask a question?
« Reply #1596 on: June 19, 2018, 01:42:50 PM »
Do I understand correctly?
You need $3,000 now.
You can borrow it at 4.5% each year, resulting in paying ~ 9% of principal over 2 years, 13.5% over 3 years, 18% over 4 years (of course you'll be paying it back, so you''l be spending less on the interest over time.)
You can take it out of your mutual fund, with an up front hit of ~ 15% in taxes AND a loss of the income you would be making on that $3000 in the mutual fund.


If you can repay the HELOC quickly, go that route. A payback time of even 2 years will be more cost effective.

yes w/d $3000 but from what I understand only $1000 will be taxed as that will be the approx earnings portion as  1/3 of total balance is earnings

Offline ckmk47

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Aug 2012
  • Posts: 7961
  • Total likes: 1044
  • DansDeals.com Hat Tips 3
  • Gender: Female
    • View Profile
  • Location: brooklyn
Re: any accountants out there that i can ask a question?
« Reply #1597 on: June 19, 2018, 02:04:14 PM »
yes w/d $3000 but from what I understand only $1000 will be taxed as that will be the approx earnings portion as  1/3 of total balance is earnings
So:
Heloc - 4.5% of $3000 = $135 each year
Mutual fund withdrawal = 15% of $1000 = $150  once - but lose the long term earnings.
I really hate for you to give up future eanings.  And most people don't pay themselves back.  So if it's taken from savings, that amount, and it's furture earnings are lost.
Compound interest is practically magic for long term earnings.

« Last Edit: June 19, 2018, 02:11:08 PM by ckmk47 »
My favorite cause: cssy.org

Offline mgarfin

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Dec 2012
  • Posts: 2566
  • Total likes: 294
  • DansDeals.com Hat Tips 2
    • View Profile
Re: any accountants out there that i can ask a question?
« Reply #1598 on: June 20, 2018, 12:44:21 PM »
When filing an NYS sales tax return.
It asks for your Gross sales and non-taxable sales.
Is that for NYS only or is it for the business?

Online ExGingi

  • Dansdeals Lifetime 10K Presidential Platinum Elite
  • *******
  • Join Date: Nov 2015
  • Posts: 15618
  • Total likes: 7712
  • DansDeals.com Hat Tips 19
    • View Profile
  • Location: 770
  • Programs: בשורת הגאולה. From Exile to Redemption. GIYF. AAdvantage Executive PlatinumŽ
Re: any accountants out there that i can ask a question?
« Reply #1599 on: June 28, 2018, 06:52:22 PM »
1. If I have a ROTH IRA that is more than 5 years old, and I take a regular IRA that came from a 401(k) rollover, and do a ROTH conversion into the same IRA, can I withdraw my entire basis (including the conversion on which I paid tax) penalty free right away?

2. If I have a ROTH IRA into which I rolled over a ROTH 401(k), but at the time of the rollover, the value of the 401(k) is lower than its original basis. Do I use the ROTH 401(k) original basis in determining the basis which I can withdraw tax and penalty free prior to age 59 1/2?

3. Is taking a withdrawal of basis from a ROTH IRA considered an audit trigger?
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan