Author Topic: any accountants out there that i can ask a question?  (Read 143270 times)

Offline yungermanchik

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Re: any accountants out there that i can ask a question?
« Reply #1740 on: October 25, 2019, 01:35:09 PM »
Any other creative (legal) workaround ideas welcome.
If you have a brother who's way over the limit anyway, designate him as intended recipient. You fill out a special form and get it notarized. than pay him the tax that he's paying (essentially on your money) in cash.

Offline gozalim

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Re: any accountants out there that i can ask a question?
« Reply #1741 on: October 25, 2019, 01:45:21 PM »
If you have a brother who's way over the limit anyway, designate him as intended recipient. You fill out a special form and get it notarized. than pay him the tax that he's paying (essentially on your money) in cash.
does that need to be done before year's end?

Offline yungermanchik

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Re: any accountants out there that i can ask a question?
« Reply #1742 on: October 25, 2019, 02:10:32 PM »
does that need to be done before year's end?
not sure but even if it does work you might both have to do an amended return. so, definitely better to do it earlier.

Offline gozalim

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Re: any accountants out there that i can ask a question?
« Reply #1743 on: October 25, 2019, 02:17:10 PM »
I meant to do it in the Jan - Mar window, dated to the previous tax year, along the lines of ira contribution

Offline gozalim

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Re: any accountants out there that i can ask a question?
« Reply #1744 on: November 12, 2019, 12:33:19 PM »
The investment income limit in order to receive the EITC is $3600 for 2019.

Does investments held in children's names count towards the $3600 investment income limit?

Any other creative (legal) workaround ideas welcome.


also, does 'tax-free income' (IRA, Muni accounts) count towards this, practically?

Offline Dawie

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Re: any accountants out there that i can ask a question?
« Reply #1745 on: November 12, 2019, 02:02:07 PM »
The investment income limit in order to receive the EITC is $3600 for 2019.

Does investments held in children's names count towards the $3600 investment income limit?

Any other creative (legal) workaround ideas welcome.
also, does 'tax-free income' (IRA, Muni accounts) count towards this, practically?

IRA income isn't reported on 1040 so it for sure isn't included in Unearned Income
Investments in childrens name don't count towards Unearned Income


Offline est

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Re: any accountants out there that i can ask a question?
« Reply #1746 on: November 12, 2019, 09:21:56 PM »
For income checks written out in one year (dec) but deposited the next year (feb) - which year do you file it as income?

Offline churnbabychurn

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Re: any accountants out there that i can ask a question?
« Reply #1747 on: November 13, 2019, 06:18:12 AM »
Are there any free ways to do NJ ethics courses online? What is the cheapest?

Offline Dawie

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Re: any accountants out there that i can ask a question?
« Reply #1748 on: November 13, 2019, 09:29:58 AM »
For income checks written out in one year (dec) but deposited the next year (feb) - which year do you file it as income?
Cash or Accrual ?
taxpayer is usually cash, if you get a 1099 though you could have issues
and you cant really get it and not deposited, because of constructive receipt

Offline Dawie

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Re: any accountants out there that i can ask a question?
« Reply #1749 on: November 13, 2019, 09:33:19 AM »
Are there any free ways to do NJ ethics courses online? What is the cheapest?
not online, generally ADP or some other provider will offer accounting firms who refer to them free seminars
Ethics is a very closely guarded subject that the NJ Accounting Board guards zealously, Firms that can give their own CPE cant give ethics

Offline Dawie

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Re: any accountants out there that i can ask a question?
« Reply #1750 on: November 13, 2019, 07:24:24 PM »
also, does 'tax-free income' (IRA, Muni accounts) count towards this, practically?
Muni Interest is Unearned Income and will count against the EITC

Offline gozalim

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Re: any accountants out there that i can ask a question?
« Reply #1751 on: November 13, 2019, 07:43:58 PM »
Muni Interest is Unearned Income and will count against the EITC
so the bank holding it will issue a 1099 of some sort for it, labeling it as 'unearned (tax-free) income'?

Offline Dawie

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Re: any accountants out there that i can ask a question?
« Reply #1752 on: November 13, 2019, 08:11:54 PM »
so the bank holding it will issue a 1099 of some sort for it, labeling it as 'unearned (tax-free) income'?
It's always on the 1099-int

Offline est

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Re: any accountants out there that i can ask a question?
« Reply #1753 on: November 14, 2019, 11:20:09 PM »
Cash or Accrual ?
taxpayer is usually cash, if you get a 1099 though you could have issues
and you cant really get it and not deposited, because of constructive receipt

thanx - it was a check written out to business so there's no 1099, and wasn't deposited til a while later. Which year was it supposed to be filed as income? Since the payer was counting it as an expense from the previous year I filed it for that year as well even though I only deposited the next year. correct or not?

Offline AtallD

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Re: any accountants out there that i can ask a question?
« Reply #1754 on: November 15, 2019, 09:39:50 AM »
thanx - it was a check written out to business so there's no 1099, and wasn't deposited til a while later. Which year was it supposed to be filed as income? Since the payer was counting it as an expense from the previous year I filed it for that year as well even though I only deposited the next year. correct or not?

It is income when the check is received - the date of the check and the date deposited are not relevant.