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money:taxes [2020/02/14 07:41]
admin
money:taxes [2020/08/25 09:21]
admin
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 {{:everyday:pasted:20171125-101113.png?600}} {{:everyday:pasted:20171125-101113.png?600}}
 +
 +===== RIPC to Roth IRA Conversion =====
 +Doing a manual conversion June 23 of 8K. Should be no tax consequences.
 +
 +Need to write down Roth IRA number in memo field on check when you get it.
 +
 +Unsure about how the contributions will get tracked. Might need to do that manually, or just keep updating the spreadsheet with details.
 +
 +===== 0% APR Credit Cards and Floating Your Tax Payment =====
 +Noodled around on this one back and forth. Most cards have a promotional APR of 0% for 15 months. It's what Warren Buffett / insurance companies do!
 +
 +^ Scenario ^ Outcome ^ Dealbreaker? ^
 +| Normal month | Pay 1% of balance, auto-transfer | I feel like no |
 +| $10K in 0% debt, normal scenario | Make average of 8% on it, so $800 in taxable income a year | Too little money for my sanity |
 +| $50K in 0% debt, normal scenario | Make average of 8% on it, so $4000 in taxable income a year \\ Monthly min payment of $500 | Now we're talking :-D \\ So easily I am swayed... \\ //Yet the amount of work/headache is X 5. Hmm...// |
 +| Lose job with $10K of debt coming due in next 3 months | Sell stocks to cover balance after unemployment | Not so bad with savings |
  
 ===== Solo 401k ===== ===== Solo 401k =====
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   * https://wealthyaccountant.com/2018/11/05/micro-business-and-side-gig-tax-guide/   * https://wealthyaccountant.com/2018/11/05/micro-business-and-side-gig-tax-guide/
   * https://wealthyaccountant.com/2017/04/12/it-pays-to-have-a-hobby/   * https://wealthyaccountant.com/2017/04/12/it-pays-to-have-a-hobby/
 +  * 2018 Tax Cuts and Jobs Act made **hobby** expenses non-deductible. That changes a lot...spend away!
 +<blockquote>Are you a Hobby or business? It makes a difference. A hobby is by far the easiest way to report income. But no expenses are allowed while SE tax is avoided.</blockquote>
 ===== Trust and stuff ===== ===== Trust and stuff =====
 Living Trust lets you avoid probate fees. Need a piece of paper, with community property agreement. Living Trust lets you avoid probate fees. Need a piece of paper, with community property agreement.
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 ===== Messing with Tax Payment Timing ===== ===== Messing with Tax Payment Timing =====
  
-Side Note:  * You can also pay tax via withholdings at the end of the year and keep your money invested all year. It's considered equally spread out throughout the year, apparently! See https://wealthyaccountant.com/2017/03/22/stop-paying-your-quarterly-estimated-taxes/  +Side Note:   
 +  * You can also pay tax via withholdings at the end of the year and keep your money invested all year. It's considered equally spread out throughout the year, apparently! See https://wealthyaccountant.com/2017/03/22/stop-paying-your-quarterly-estimated-taxes/  
     * Withholdings spread out all year: https://www.irs.gov/instructions/i2210#idm140349202906368     * Withholdings spread out all year: https://www.irs.gov/instructions/i2210#idm140349202906368
 <blockquote>When figuring your payment dates and the amounts to enter on line 19 of each column, apply the following rules.  <blockquote>When figuring your payment dates and the amounts to enter on line 19 of each column, apply the following rules. 
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 "Cool spreadsheet man" "Cool spreadsheet man"
  
-2% max fee. Have to spread it out among vendorshttps://frequentmiler.boardingarea.com/2018/02/19/pay-taxes-via-credit-card-2018-edition/+2% max fee. **Can** spread it out among vendorshttps://frequentmiler.boardingarea.com/2018/02/19/pay-taxes-via-credit-card-2018-edition/ 
 + 
 +=== Debit Cards === 
 +Also an option. Flat ~$2.50 fee, and some cards give you 1% or more back. 
 + 
 +Buying debit gift cards probably not so much, since the limit is $500 and they have a $5 fee to open, etc. Unless you can buy them for 5% off at a grocery store. Not willing to do the work :)
  
 === Allowances === === Allowances ===
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   * IRS questions, based on https://money.stackexchange.com/questions/7714/how-can-i-make-four-equal-quarterly-tax-payments-when-i-dont-know-what-my-inc:   * IRS questions, based on https://money.stackexchange.com/questions/7714/how-can-i-make-four-equal-quarterly-tax-payments-when-i-dont-know-what-my-inc:
     * <del>Can I pre-pay the next quarter? Or do I have to do schedule AI, etc?</del> Don't worry about it! Just pay in March 15 and after April 15 (next quarter). Still counts for paying each month and fits in CC 3 month window. Done.      * <del>Can I pre-pay the next quarter? Or do I have to do schedule AI, etc?</del> Don't worry about it! Just pay in March 15 and after April 15 (next quarter). Still counts for paying each month and fits in CC 3 month window. Done. 
 +
 +=== Via Debit Card ===
 +For when you don't have a credit card bonus to use...Can pay Federal for $2.59 on a debit card, and some debit cards (M1 Finance in particular) give you 1% back! Awesome.
 +
 +Oregon says it's $2.59, but they charge you 1.8% or whatever, so can't do it that way.
  
 ===== Tax Loss Harvesting ===== ===== Tax Loss Harvesting =====
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 ===== 529 Plan ===== ===== 529 Plan =====
 Have to pay federal income tax, but don't have to pay Oregon income tax for up to $2330 of it. Have to pay federal income tax, but don't have to pay Oregon income tax for up to $2330 of it.
 +
 +Earnings grow tax-free when used for qualified educational expenses.
 +
 +=== 2020+ ===
 +$150 tax credit, reached when contributing $600 for my tax bracket. Just doing $1K.
  
 === 2018 === === 2018 ===
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 **Payment + Fee = Minimum Spend** --> **Spend/1.02 = Payment (includes fee)** **Payment + Fee = Minimum Spend** --> **Spend/1.02 = Payment (includes fee)**
 +
 +**Should deduct expected W2 tax withholdings too...**. Was over Federal 2019 return by $5K and Oregon by $4k.
 ^ ^ Federal ^ Oregon ^ ^ ^ Federal ^ Oregon ^
 | Total 2019 | $15000 | <del>$7000</del>, $7644? | | Total 2019 | $15000 | <del>$7000</del>, $7644? |
-| Quarterly | $3750 | $1750 |  +| Quarterly | $3750 | <del>$1750</del> $1911 guess |  
-| Apr 15 | $250 w/ Delta Amex on Pay1040 | 62 paid already using alliant CC \\ $171 with work bonus debit| +| Apr 15 \\ Need to pay $2678 w/ cash, rest w/ CC's  | $250 w/ Delta Amex on Pay1040 \\ Due July 15 [[https://www.irs.gov/newsroom/payment-deadline-extended-to-july-15-2020|here]] | 62 paid already using alliant CC \\ $171 with work bonus debit \\ 979 on PNC CC, 699 on BBVA CC \\ [[https://www.oregon.gov/newsroom/Pages/NewsDetail.aspx?newsid=36265|Oregon is not extended]]
-| Jun 15 | | | +| Jun/Jul 15 | [[https://www.irs.gov/newsroom/irs-extends-more-tax-deadlines-to-cover-individuals-trusts-estates-corporations-and-others|Extended to July 15]] \\ Paid $142.50 from Wirecard June 18 on PayUSATax website \\ $2000 off of Sofi Debit on Pay1040 on June 22 \\ $2997.42 via Pay1040 and Discover Card \\ 2850 via PayUSATax and Discover on July 2 | Paid $2000 via checking on June 9 
-| Sep 15 | | | +| Sep 15 | | $1300 paid 8/25 
 | Jan 15 | | | | Jan 15 | | |
 +
 +Better figured and documented on the spreadsheet: https://docs.google.com/spreadsheets/d/1jIZkq4E1rHqPdO0nj6-WUV8bFsqBsg9qdbwU2ENpHQs/edit#gid=2117520066
 +
 +<del>Pay on PNC</del> (2% fee). Rather get a new card, do auto-transfer of minimum payments and get 0% APR? \\ $10K credit limit, 0% until July 2021
  
 === Donations === === Donations ===
 $50 Feb 4 for West Valley trip $50 Feb 4 for West Valley trip
 +$785 Mar 28 for Kickstart.
 +
 +=== TLH ===
 +Sold $18K of VOO ($3K of short term losses) for VTI on April 6. Will increase VTI allocation to ensure incoming money doesn't go into VOO.
 +
 +Turned off auto invest for Roth IRA and taxable account, just in case. Only need to worry about wash sale for VOO.
 +
 +Did a number of stock sales on Robinhood in June in anticipation of buying car and finishing LTCG.
 +
 ==== 2019 ==== ==== 2019 ====
 It's helpful for Mr. Domes to review the numbers with all the forms and individually indicated on the Schedule ... D?  It's helpful for Mr. Domes to review the numbers with all the forms and individually indicated on the Schedule ... D? 
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 ^ Expected ^ Received ^ ^ Expected ^ Received ^
-| Chase checking/savings and brokerage | X, brokerage |+| Chase checking/savings and brokerage | X, brokerage |
 | SoFi Invest (probably under apex) | | | SoFi Invest (probably under apex) | |
 | ETrade | X | | ETrade | X |
-| Ally Bank Trading | |+| Ally Bank Trading | |
 | PNC | | | PNC | |
 | HSBC (200) | X | | HSBC (200) | X |
-| US Bank (300) | | +| US Bank (250) | 
-| Wells Fargo ($400) | |+| Wells Fargo ($400) | |
 | Capital One Savings | X | | Capital One Savings | X |
-| Discover Savings ($200?) | |+| Discover Savings (<del>$200?</del> $150) | |
 What about small interest? :-( -> :-) (less than $10 interest is not reported to IRS!) What about small interest? :-( -> :-) (less than $10 interest is not reported to IRS!)
 | Bank of the West | | | Bank of the West | |
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 ^ Expected ^ Received ^ ^ Expected ^ Received ^
 | Vanguard | X | | Vanguard | X |
-| M1 Finance | |+| M1 Finance | |
 | Robinhood | X | | Robinhood | X |
 | ETrade | X | | ETrade | X |
money/taxes.txt · Last modified: 2020/09/04 12:42 by admin