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TomYoung
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Activity Feed for TomYoung
- Posted Re: ESPP/RSU issues on Turbo Tax 2020 on Investors & landlords. Monday
- Posted Re: ESPP/RSU issues on Turbo Tax 2020 on Investors & landlords. Monday
- Got Cheered for I know nothing about APEX Clearing. I do know Schwab han.... Saturday
- Got Cheered for You should be able to do that using the "Stocks, Mutual F.... a week ago
- Got Cheered for Re: I have the same issue where the sold RSUs to pay for taxe.... October 25, 2020 8:45 AM
- Got Cheered for If the 1099-B reports the sale of shares that were for ta.... October 25, 2020 8:44 AM
- Got Cheered for "How do I correctly exclude it? Is there an indicator in.... October 24, 2020 6:46 AM
- Posted Re: It says I can't efile until next year on Get your taxes done using TurboTax. October 18, 2020 5:18 AM
- Got Cheered for You should be able to do that using the "Stocks, Mutual F.... October 17, 2020 12:20 PM
- Got Cheered for Re: I received a 1099-MISC for 2019 that includes income from this year (2020). I use the cash method and have not earned any other money this year (so I would like for it to be counted as 2020 income). How do I do that?. October 16, 2020 8:59 AM
- Got Cheered for Re: In the past I have taken money from a partnership and treated it as income. I have K1 income that was used to repay these loans - where do I report this?. October 16, 2020 8:35 AM
- Got Cheered for Re: I received a 1099-MISC for 2019 that includes income from this year (2020). I use the cash method and have not earned any other money this year (so I would like for it to be counted as 2020 income). How do I do that?. October 16, 2020 7:39 AM
- Posted Re: I received a 1099-MISC for 2019 that includes income from this year (2020). I use the cash method and have not earned any other money this year (so I would like for it to be counted as 2020 income). How do I do that? on Get your taxes done using TurboTax. October 16, 2020 7:37 AM
- Posted Re: In the past I have taken money from a partnership and treated it as income. I have K1 income that was used to repay these loans - where do I report this? on Business & farm. October 15, 2020 1:42 PM
- Posted Re: How do I update Employer Stock Transaction Worksheet (Capital Gain Wks)? I entered wrong info in some columns in line 14 and would like to re-enter, but don't know how. on Get your taxes done using TurboTax. October 15, 2020 7:08 AM
- Posted Re: In the past I have taken money from a partnership and treated it as income. I have K1 income that was used to repay these loans - where do I report this? on Business & farm. October 15, 2020 6:50 AM
- Posted Re: Calculating penalties for underpayment of Estimated Taxes on Business & farm. October 13, 2020 8:11 AM
- Got Cheered for Re: Calculating penalties for underpayment of Estimated Taxes. October 12, 2020 4:56 PM
- Got Cheered for Re: Can I used 1099 income from one type of work to fund another startup business? Will I have to pay taxes on the 1099 income if it is reinvested in another business venture?. October 12, 2020 7:26 AM
- Posted Re: Can I used 1099 income from one type of work to fund another startup business? Will I have to pay taxes on the 1099 income if it is reinvested in another business venture? on Retirement tax questions. October 12, 2020 5:31 AM
Monday
@torchill You may very well be right about the "2020" aspect. For some reason I was thinking that you were really referring to the 2019 tax year, and that's the way I was responding. I haven't even looked at the "tax year 2020" TurboTax program at this point. I expect this might be an "early-season" bug. Sorry for the confusion.
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Monday
@torchill I ceased being a SuperUser when when Intuit switched from SUs to the "Champion" program, so I'm not going to take a deep dive here, but I'll mention a few "top of mind" thoughts. The TurboTax 2020 program is completely capable of properly reporting the sales of stock acquired via an ESPP if you enter the sale correctly, a process TurboTax made more tricky a few years back. This isn't a "TurboTax 2020" issue. The page that comes up asking about what's been reported on your W-2 comes up as the very last page of the "Stocks, Mutual Funds, Bonds, Other" interview, it doesn't come up when you enter your last security sale. You have to keep going with the interview, hitting "Continue" or whatever until you come to that page. Some years back TurboTax changed how that page works. The way it used to work was that TT said "here's the ordinary income we've calculated from your ESPP sales, how much of this is already reported on your W-2?" TurboTax had a box on that page where you could enter that number, (most commonly that number reported on the W-2 would be associated with short term sales only), and if you had compensation associated with long term sales, TurboTax would include the difference on your income tax return as compensation income. That box in no longer on that page. Now, when TurboTax tells you how much compensation it's calculated you can only answer "Yes this is on my W-2" or "No this isn't on my W-2." So if your ESPP sales are both long term and short term and both classes of sales created compensation, neither answer is correct. This last issue can be circumvented in about 3 different ways and I posted those workarounds many times since TurboTax changed things. I think if you look around in the forum you should be able to find one of those posts and figure this out. (torchill: I had some problem following your post so maybe posting the details of one problem sale - complete with screenshots - might help somebody grasp the issue in a more tangible way. )
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October 18, 2020
5:18 AM
October 16, 2020
7:37 AM
2 Cheers
Here's something that might or might not help: The detail information you enter about all the 1099-MISCs you receive is not included in the income tax return you send to the IRS. All the IRS sees is a lump sum of "Gross receipts or sales" on line 1 of Schedule C. If you have multiple 1099-MISCs you've entered, and perhaps some revenue not reported on a 1099-MISC, the IRS just has no visibility to the fact that you've entered a dollar amount that's less than the amount on this particular 1099-MISC. So if you have multiple revenue sources beyond this one 1099-MISC I'd say "make a note on the 1099-MISC of exactly why you used a different number on your TurboTax entry than the one shown on the 1099-MISC and save that 1099 - along with all your other 1099's - with your paper copy of your 'as filed' income tax return." Your only obligation as a taxpayer is to report your income correctly, not blindly enter incorrect information that's contained on a 1099-MISC. If this 1099-MISC is your only revenue source then you can do exactly the same thing - enter the correct number, not the one printed on the 1099-MISC. If the IRS ever comes calling you explain the situation and that should be the end of it because you've reported your income correctly. If you don't want to do this, and I assume this is Schedule C income, then make up an expense that gets your net business income correctly stated. What you call it is your choice since it's highly unlikely that any person will actually read what you entered.
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October 15, 2020
1:42 PM
1 Cheer
You say "salary" but partnerships don't pay salaries to partners, they make "Guaranteed Payments" which are ordinary income to you and generally subject to Self Employment taxes. However, payments to you that affect only your capital account with the partnership are typically treated as "draws" - a "return of capital" concept - and would not be taxable until your basis is zeroed out. Partnership law being what it is the reality is that the above two sentences are gross generalizations that aren't always true. And, I can't see anyway the claim of rights angle comes into play here. If the payments made to you were legally guaranteed payments for services performed, (I think that has to be part of the partnership agreement to stand up). then your past reporting makes sense, but the partnership's reporting doesn't. This could be a situation where the partnership has to amend its prior income tax returns, (if "in the past" does refer to prior years), meaning all the partners would also need to amend. Find some competent local help.
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October 15, 2020
7:08 AM
The very best way, the safest way, to fix these errors is to go back to the "Stocks, Mutual Funds, Bonds, Other" interview, find the trade or trades and delete them, then re-enter the trades using the correct information. Trying to work directly on internal worksheets can prevent you from e-filing and can also void TurboTax's accuracy guarantee.
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October 15, 2020
6:50 AM
You have been way too vague here and provided virtually no details in describing your situation. " In the past I have taken money from a partnership and treated it as income." How and why have you "taken money" from the partnership, why did you treat it as income and in what fashion did you report it? Does "in the past" mean "in prior years?" How was this accounted for on the books of the partnership? In the context of what you've posted it sounds like you are a partner in the partnership and took out loans from the partnership so reporting these amounts as some sort of income appears to be just flat out wrong. My guess is that you borrowed from the partnership with the understanding that your share of future income would not be distributed to you but instead would be used to pay off the loan. If that's the case and if "in the past" does refer to prior years then I'd suggest taking all your information to a local tax expert and get help fixing what you've done and getting the current year properly reported.
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October 13, 2020
8:11 AM
@kp79 Since I've been making 4 quarterly estimated tax payments for ages I have opted to use the Electronic Federal Tax Payment System. It's pretty easy to set up a string of future payments and if you decide you need to change a particular payment or payments, it's also pretty easy to modify the payment or payments. The disadvantage is that you loose the "float" but in these days of near zero interest rates that amounts to pennies. If you want to mail in your payments you can simply print out an empty 1040-ES if you're using a desktop product - not sure about the online products. Or you can download the Form 1040-ES booklet and use the empty vouchers at the bottom of the booklet. https://www.irs.gov/forms-pubs/about-form-1040-es
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October 12, 2020
5:31 AM
1 Cheer
Any income you earn can be used for any legal activity. The income reported to you on a 1099-MISC, (replaced by the new 1099-NEC), is taxable income. There is no "rollover" rule in effect for 1099-MISC income that would allow you to defer the tax because you invested that money in another business venture.
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October 12, 2020
5:27 AM
1 Cheer
Because of the Covid-19 changes I know the calculation of all interest rate penalties have changed and the IRS has issued rules in this regard, but I haven't followed along. The 5% rate is correct for the first 2 quarters but changed to 3% for the third quarter. The interest is calculated on a daily basis and compounds daily, and it's based on the cumulative unpaid estimated taxes. It's not going to be a hell of a lot of money in any case, and depending on your situation the $40K estimate might not really be the right number to use because your 10/15 payment might get you into a "safe harbor", (or not). Let the IRS calculate it for you.
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