JF_Gophers
2147483647
Re: Stimulus checks
IRS took their payment on time yesterday. Now send me my offset money (stimulus)!
IRS took their payment on time yesterday. Now send me my offset money (stimulus)!
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Stimulus checks
- Thread starter jericho
- Start date
Re: Stimulus checks
I always wonder about that in regard to the "wealth tax," too. If I claim that my original Matisses are worth $5 each, does the government have to audit me and go hire an independent appraiser to get their money? Seems incredibly inefficient (like means testing) and rife with opportunities for fraud.
aparch
Acetaminamerican
Federal, yes. Some states, yes. Other states, no.
JF_Gophers
2147483647
They did. We filed in early February and set the 15th to auto pay.
dxmnkd316
Lucia Apologist
Re: Stimulus checks
I've always wondered that as well. I like the idea but it's almost impossible to enforce. I suppose it's no different than non-W4 earnings. It's always on the honor system. You just risk getting penalties and interest on audit. I would think it's fairly easy to ballpark wealth based on residence(s). (Which would also have issues. Why wouldn't a wealthy person just put their house in an S corp and "rent" from the corp? You aren't going to or can't tax corporations based on wealth I assume?) But say it's possible, I would think that if you own a house in the Hamptons and report your wealth as something substantially less than than the median you'd kind of stick out. Or even number of residences vs. reported wealth.
The stupid thing is, the government already knows how much you owe them for income taxes. Recently I've really questioned the need for even putting the onus on the taxpayer. Isn't it California that sends you out a "You paid X. You owed us X. Here's the difference Z. Do you agree?" So why wouldn't transfers of wealth over say $1,000 just be flagged and "withheld" and reported like any other normal income transaction? We figured it out for income, I have to think it's possible to figure that kind of thing out for wealth in the end.
Either way, you're right initially. It's going to be a fraudulent mess until the first person loses their house(s) because they didn't claim them or undervalued them on their 1040Wealth form.
I've always wondered that as well. I like the idea but it's almost impossible to enforce. I suppose it's no different than non-W4 earnings. It's always on the honor system. You just risk getting penalties and interest on audit. I would think it's fairly easy to ballpark wealth based on residence(s). (Which would also have issues. Why wouldn't a wealthy person just put their house in an S corp and "rent" from the corp? You aren't going to or can't tax corporations based on wealth I assume?) But say it's possible, I would think that if you own a house in the Hamptons and report your wealth as something substantially less than than the median you'd kind of stick out. Or even number of residences vs. reported wealth.
The stupid thing is, the government already knows how much you owe them for income taxes. Recently I've really questioned the need for even putting the onus on the taxpayer. Isn't it California that sends you out a "You paid X. You owed us X. Here's the difference Z. Do you agree?" So why wouldn't transfers of wealth over say $1,000 just be flagged and "withheld" and reported like any other normal income transaction? We figured it out for income, I have to think it's possible to figure that kind of thing out for wealth in the end.
Either way, you're right initially. It's going to be a fraudulent mess until the first person loses their house(s) because they didn't claim them or undervalued them on their 1040Wealth form.
Kepler
Si certus es dubita
Re: Stimulus checks
For some assets the value is a matter of public record. We have a "wealth tax" already -- property tax. That seems to work fine. So, add a federal property tax on net property assets > $10M of, say, I dunno, 99%.
But expense of collection is not in itself a reason not to enforce. The police cost money.
For some assets the value is a matter of public record. We have a "wealth tax" already -- property tax. That seems to work fine. So, add a federal property tax on net property assets > $10M of, say, I dunno, 99%.
But expense of collection is not in itself a reason not to enforce. The police cost money.
Last edited:
unofan
Well-known member
Re: Stimulus checks
You need to run the numbers under both MFS and jointly til you're comfortable with it. You lose out on a lot of other tax benefits by doing MFS (like being able to deduct the student loan interest).
The upside is really only worth it if you're doing PSLF or something else where being on an income-based repayment plan makes sense and you need to keep your incomes separate for those calculations.
Basically, we figured that keeping my wife's payments low were a better deal than the tax deductions we were losing out on.
You need to run the numbers under both MFS and jointly til you're comfortable with it. You lose out on a lot of other tax benefits by doing MFS (like being able to deduct the student loan interest).
The upside is really only worth it if you're doing PSLF or something else where being on an income-based repayment plan makes sense and you need to keep your incomes separate for those calculations.
Basically, we figured that keeping my wife's payments low were a better deal than the tax deductions we were losing out on.
unofan
Well-known member
Re: Stimulus checks
Meh, it'll all come out in a wash in the end, if they claw the $500 back from me it'll just mean they're giving it to my wife instead. And the decision on MFS v. MFJ is going to depend on how certain we are that the Feds won't fark us on the PSLF for her student loans. As the person who does our taxes, I'm absolutely looking forward to doing MFJ, but not if it means my wife's student loan payments double.
Meh, it'll all come out in a wash in the end, if they claw the $500 back from me it'll just mean they're giving it to my wife instead. And the decision on MFS v. MFJ is going to depend on how certain we are that the Feds won't fark us on the PSLF for her student loans. As the person who does our taxes, I'm absolutely looking forward to doing MFJ, but not if it means my wife's student loan payments double.
e.cat
Seasoned Veteran
Hope it works out for ya. I don't get why TurboTax made you claim your daughter when you didn't intend to. I have a lot of tax clients who have sworn off TurboTax.
dxmnkd316
Lucia Apologist
Re: Stimulus checks
Thanks. We'll do that. Didn't know about not being able to deduct interest. Looks neither of us would be able to contribute to a Roth IRA either... That's a tough one to swallow. I'd also probably get dinged for bond interest. What a headache...
Most likely it will be MFS for us because the PSLF will be worth quite a bit and my income is significantly higher than hers. The biggest problem is going to be her private loans. We'll probably refinance those at some point here because of the low rates and our combined income is going to be a ****ing nightmare to repay regardless.
On the plus side, this is going to be a helluva spreadsheet. On the downside, headaches of having to navigate all of the rules for each of the scenarios.
Thanks. We'll do that. Didn't know about not being able to deduct interest. Looks neither of us would be able to contribute to a Roth IRA either... That's a tough one to swallow. I'd also probably get dinged for bond interest. What a headache...
Most likely it will be MFS for us because the PSLF will be worth quite a bit and my income is significantly higher than hers. The biggest problem is going to be her private loans. We'll probably refinance those at some point here because of the low rates and our combined income is going to be a ****ing nightmare to repay regardless.
On the plus side, this is going to be a helluva spreadsheet. On the downside, headaches of having to navigate all of the rules for each of the scenarios.
dxmnkd316
Lucia Apologist
Re: Stimulus checks
Yeah, my dad is the financial guru in the extended family. Borderline savant when it comes to taxes. Over the last 15+ years he has drilled into my head that you need to diversify your individual holdings as well as your tax liabilities. It's potentially a bad idea to put 100% of your retirement into Roth accounts even when you're young. There is no guarantee the government doesn't change the rules between now and the time you retire. So all that tax-free growth might get taxed in the end.
It's obvious you get that concept. I'm just not sure I fully grasp it when it comes to PSLF. Lucky for you that's next year it sounds like. For us it's going to be several years still IIRC. I don't think the House Dems are going to limit PSLF between now and 2021 and I can't foresee a scenario where they do that in 2021 either. If Mrs. 316's PSLF kicks in by the end of 2022, I think we're fairly safe. If it's 2024 or beyond, I'm less confident. I guess we'll find out in November.
Yeah, my dad is the financial guru in the extended family. Borderline savant when it comes to taxes. Over the last 15+ years he has drilled into my head that you need to diversify your individual holdings as well as your tax liabilities. It's potentially a bad idea to put 100% of your retirement into Roth accounts even when you're young. There is no guarantee the government doesn't change the rules between now and the time you retire. So all that tax-free growth might get taxed in the end.
It's obvious you get that concept. I'm just not sure I fully grasp it when it comes to PSLF. Lucky for you that's next year it sounds like. For us it's going to be several years still IIRC. I don't think the House Dems are going to limit PSLF between now and 2021 and I can't foresee a scenario where they do that in 2021 either. If Mrs. 316's PSLF kicks in by the end of 2022, I think we're fairly safe. If it's 2024 or beyond, I'm less confident. I guess we'll find out in November.
D
Deutsche Gopher Fan
Guest
Re: Stimulus checks
Glitches!
“ Several million people who filed their taxes via H&R Block, TurboTax and other popular services were unable to get their payments. Some parents reported they didn’t get the $500 promised for their dependent children.”
https://www.washingtonpost.com/business/2020/04/16/coronavirus-cares-stimulus-check/
Glitches!
“ Several million people who filed their taxes via H&R Block, TurboTax and other popular services were unable to get their payments. Some parents reported they didn’t get the $500 promised for their dependent children.”
https://www.washingtonpost.com/business/2020/04/16/coronavirus-cares-stimulus-check/
unofan
Well-known member
While there's never a guarantee, even the initial plans that have been floated to kill PSLF grandfather in existing borrowers and only kill it for new loans.
rufus
rock and roller
Feature.
Russell Jaslow
Registered User
I’ve known people who live in Southampton. One I consider typical middle class. The other, lower middle class.
There are “normal” people who live in the Hamptons.
Re: Stimulus checks
I read somewhere that there were a number of possible explanations for delays. For instance, if you filed electronically but owed money instead of getting a refund, I don't think the checks are automatically going in unless you go in and specifically sign up for it. Just filing electronically is not enough if you still owed taxes.
Also, and I was unaware of this, but if you use a tax preparer like HR Block or someone like that, they may actually set up a separate bank account into which your refund normally goes. Then they remove your fees before sending you the balance of your refund. If something like that was done, then the stimulus money would be directed to that account. If the account is still open, your tax preparer will be sending it to you but it may take some time. If the account was already closed, then you might have to wait for a check.
The same is true if the bank account you last used happens to be closed because you switched banks, moved, etc...
I read somewhere that there were a number of possible explanations for delays. For instance, if you filed electronically but owed money instead of getting a refund, I don't think the checks are automatically going in unless you go in and specifically sign up for it. Just filing electronically is not enough if you still owed taxes.
Also, and I was unaware of this, but if you use a tax preparer like HR Block or someone like that, they may actually set up a separate bank account into which your refund normally goes. Then they remove your fees before sending you the balance of your refund. If something like that was done, then the stimulus money would be directed to that account. If the account is still open, your tax preparer will be sending it to you but it may take some time. If the account was already closed, then you might have to wait for a check.
The same is true if the bank account you last used happens to be closed because you switched banks, moved, etc...
aparch
Acetaminamerican
Re: Stimulus checks
We've owed in the last few years, so I'll have to have my wife take a look this weekend if the first reason is the issue.
We've owed in the last few years, so I'll have to have my wife take a look this weekend if the first reason is the issue.