Our RU-vid channel strives to help regular people better understand financial matters as they relate to the federal government, specifically taxes and Social Security.
So on mine it says I won a lot of money but that’s from gambling on roulette on my phone. And it was 55 transactions. But I ended up losing it all. I never withdrew it from my FanDuel account so how does that work?
So say it says reportable winnings 100k but I lost 100k. I think I only net like 5k in winnings overall that year. So will I owe taxes federally and state?
This video while I appreciate it doesn’t offer any advice whatsoever we all know how to do the math and fill out a form bottom line I think with this guy is trying to say, which is why I was tuning in is should I have tax withheld or not? that should be the name of this video. Should I have tax withheld or not, if you are already paying a shit load of taxes because you’re still working and collecting a pension, bypass those sections altogether just bypass, the sections just fill out the top portion with your Social Security and name and sign it. That’s it.
In my case a financial institution is requesting this form to be filled and mail it to them. So will they mail this form to IRS, will they recieve the tax transcripts ? Any idea how does it work ?
Thank you! I am curious, if I received a bonus at the beginning of the year, should this be included in both the wages/salary YTD *and* the "I got a bonus" question, or just one of the two?
Are there any resources to help better understand the section titled “FOR IRS USE ONLY”?. For example, I have the RSI 6 and AI2 fields checked on my agreement. TKU
I'm not 100% sure, since I'm not an employee, and I cannot find specific instructions on this. However, I believe that the RSI 6 means that your business management file (BMF) will be flagged for review in 2 years. The AI2 portion (I believe) indicates that this was a partial payment installment agreement (PPIA) that was not originated by a field examination. I believe the IRS codes these agreements so they can determine whether they can extend the statutory collection expiration date, known as a CSED: How to find out your IRS CSED: www.teachmepersonalfinance.com/how-to-find-out-your-irs-csed/
I don't know enough about your situation to determine whether you are exempt from having to file Form 8966. Even if you are a Model 2 PFFI without a US client, there may be situations or accounts that you could still be required to report.
If you want to have a copy of your Form 1040 transcript, then you should enter 1040 in the space provided, and select Return Transcript. However, this won't give any information about changes to your account after you filed your tax return. For that, you would select Account Transcript. And if you want both, select Record of Account.
The instructions tell you to divide Line 4 (net profit and other earned income from business under which insurance is covered) by Line 5 (net profit and other earned income reported on Schedule C) to come up with the percentage on Line 6. In my example, John Doe only had one business directly reporting to Schedule C, so Lines 4 and 5 were identical. Which is why Line 6 reported 1. I apologize for the confusion..this should be considered 100%.
Thank you so much for this video. My question is, if a bought a going business and I don't plan on using their tax id anymore do I have to file this form also? I want to apply for a new tax id. Can you refer me what forms I need to fill?
You *may* need to complete Form SS-4 (see links below), based on your situation. This IRS page gives further guidance based upon the nuances of your situation: www.irs.gov/businesses/small-businesses-self-employed/do-you-need-a-new-ein IRS Form SS-4, Application for Employer Identification Number Article: www.teachmepersonalfinance.com/form-ss-4-instructions/ Video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-eILewlSy9OU.html
If I'm changing my business name does the new name go in box 4A? I'm assuming they would know the previous business name by using the EIN in box 4B correct?
If the only purpose of completing this form is to change your business name, I don't believe you need to complete this form. If you're completing this form to update the address or responsible party, then I believe your new business name would be appropriate. However, I'm not positive, since there isn't really any clear guidance on this question. You may want to contact the IRS to be sure.
How would I fill out if my financial institution is over-withholding by $11,000 per year on my Federal taxes. The only income is pre-tax IRA distribution and maybe $18,500 in CDs. No pensions and no Social Security at this time.
I'm not sure what to recommend here, because I don't know what your current W-4P says. I would start by asking your financial institution whether your need to complete this form to adjust your withholdings, or whether you can do this through an online portal (some institutions, such as Charles Schwab, allow clients to make manual adjustments in their account). If that doesn't work, then you can complete this form, leave all the lines blank, then compare your new withholdings to your old ones to determine whether you need to make further adjustments.
@@teachmepersonalfinance2169 They are using 20%, their default withholding. The company provided me with a blank paper form to upload back to TIAA. Would it work to simply reduce the income so that the withholding is reduced by $11,000? If so, which W4-P line should that income amount be entered?
@@samboyster8808 You can't really use Form W-4P to tell your financial institution to lower your annual withholding by $11,000. Not directly, anyway. What I would suggest is that you submit the form as a blank form. If you know about tax credits (Step 3) or itemized deductions (Step 4b), you can enter those, as they might lower your withholdings more. Then I would use the tax estimation worksheet on IRS Form 1040-ES to see whether you're still on track for the year. Odds are that since we're into August, you'll still be overpaid for the year. But I'd start with a blank one to see if that gets you close enough to the ball park so that you don't need to make future adjustments.
I would calculate the credit that you're eligible for regarding the HVAC. After that, I think your options are limited. If this is a Home Depot loan, and *is not secured by your home* (i.e. like a home mortgage or a home equity line of credit), then it doesn't count as a qualified home mortgage. Therefore, you can't deduct the interest on the loan on Schedule A.
@@teachmepersonalfinance2169 Thank you. I did get a heat pump installed and its energy star efficient. I hear you can get a full rebate if you make less that 80% of median household income.
I need to complete this form to receive a pension payment of approximately $150/month. I file jointly, still work and also receive social security. My husband has a monthly pension greater than $150/month and receives social security. Is completing this form stating "no withholding" in section 4 appropriate as this is such a small payment?
I would start with this, then use the estimation worksheet on IRS Form 1040-ES to determine whether you're on track to pay the correct amount of taxes over the course of the year. You can always add additional withholdings if you need to do so. IRS Form 1040-ES, Estimated Tax Voucher Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/ Video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-MqA_0OX9kxI.html
In 2023 and later, clean vehicle credits (which replace several prior tax credits under similar names) are reported on IRS Form 8936. This form then flows through to IRS Form 3800. There is a modified AGI limitation, which you calculate in Part I of Form 8936: Your modified adjusted gross income (AGI) for 2022 or 2023 is not more than: $150,000 (single or married filing separately) $300,000 (married filing jointly or a qualifying surviving spouse) $225,000 (head of household). IRS Form 8936, Clean Vehicle Credits Article: www.teachmepersonalfinance.com/irs-form-8936-instructions/ Video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-7bi4N0Fsbpg.html
Great content, many thanks. If a deceased husband had plenty of debt, does it mean his wife should pay it off? What’s the consequence of not doing that? Thanks.
This question largely borders on legal advice, which I am not allowed to give. When it comes to tax debt, the IRS can place a claim against a deceased husband's estate so that it can be paid against the assets of the estate, before the remainder is distributed to beneficiaries. If there are no assets to distribute, the IRS does have procedures in place on how that debt would be written off. If the debt was jointly held, then the surviving spouse may be responsible for paying the debt. However, the IRS also has procedures to grant leniency when working with taxpayers in special circumstances. If I were to give *any* advice in this situation, it would be to take caution regarding the tax debt (or any other debt) before distributing assets to beneficiaries. If there are no assets to distribute, and the debt was solely in the husband's name (not jointly as husband/wife), then the IRS shouldn't come after the surviving spouse.
And regarding the form 2848- I “think” I can just fill out the information that I can and attach the DPOA- neither one of my parents are competent to handle any of their affairs. Is this correct?
On form 8822-Part ll- would I leave both of my parents signature lines blank since they are unable to sign for themselves and simply put my signature, date and title (POA)?
According to the form instructions: If you are a representative signing on behalf of the taxpayer, you must attach to Form 8822 a copy of your power of attorney. To do this, you can use Form 2848. The Internal Revenue Service will not complete an address change from an “unauthorized” third party. As long as your Form 2848 is attached to the change of address form, the IRS should accept it.
There aren't really any instructions, so here are my thoughts. If you're including a copy of the tax return (i.e. you filed, but the IRS is missing it), then I would include both names if they fit. However, one taxpayer's name and the missing return should be sufficient for the IRS to identify the tax records involved.
The issuer is required to send a copy of this form to each borrower (to the address on file in their records) by January 31 of the year following the year reported. For the 2023 tax year, this would have been January 31, 2024. If you did not receive this in a timely manner, you can always contact the issuer, or contact the IRS so they can assist.
I am the POA for both of my parents and the IRS said I have to do form 8822 and 2848. I am not sure if I am filling out the forms correctly! On form 8822 would I put both of my parents names and SS#’s and old address and my address and sign, date etc.?
You can use IRS Form 2848 to authorize you (as the POA holder) to sign IRS Form 8822 on your parents' behalf. But if your Form 2848 is not already on file, then they will have to sign the Form 2848. If they're already doing that, then it's easier and simpler to ask them for one more signature. If your Form 2848 is already on file with the IRS, then you can file IRS Form 8822 (accompanied by a copy of your Form 2848). You would put both parents' name, SSN, and their old address. If you wish to have the IRS send correspondence to your address, that's acceptable. You would sign as the POA for both parents in the signature block. Keep in mind that when you file their tax return, the IRS will update your parents' records with the address on the tax return. So, if you've filing Form 8822 to route IRS correspondence to your house while they're still living separately, and you file their tax return with their current address, the IRS record will revert back to the address listed on the tax return.
You can't really get forgiveness by filing an amended tax return. Filing an amended return allows you to fix a mistake that was on your original return. Sometimes, when you correct the mistake, it results in owing less taxes (or receiving a refund because you paid too much in taxes on your original return). In that sense, you can recoup the money that you shouldn't have made. If you owe back taxes, you can request abatement of the penalties associated with those back taxes. And the IRS offers a first-time abate program for most taxpayers, as long as you have a payment plan in place or you've paid your taxes in full. You can request abatement on IRS Form 843 (see links below). If you need to set up a payment plan, you can do so through the IRS website or by filing IRS Form 9465, Installment Agreement Request (links below). IRS Form 843, Claim for Refund and Request for Abatement Article: www.teachmepersonalfinance.com/irs-form-843-instructions/ Video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-beGwgBS1YYI.html IRS Form 9465, Installment Agreement Request Article: www.teachmepersonalfinance.com/irs-form-9465-instructions/ Video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-NeWpCH_IYHs.html Set up IRS payment plan: www.irs.gov/payments/online-payment-agreement-application
Someone filed an application using my information and SSA wanted me to fill out this form. Is that appropriate for a situation like that? I still dont know who or what all was provided and SSA would not say. Can you offer any advise about how to handle this?
If someone filed for benefits using your information, it makes sense that the SSA would ask you to fill out this form, which would withdraw the application. I would not be in a good position to offer specific advice, but I would suggest that you communicate frequently with the SSA office. Also, keep detailed records of all of your conversations. Finally, if you can, set up an appointment to turn in your completed form in person (you have to submit it in person anyway). But you should go over the form to make sure you've covered everything.
Please tell me what you think I should do next. SSA has told me over the phone, to expect an overpayment and has started an investigation of my case. While the investigation is pending, my SSDI benefits have been SUSPENDED as of July 3rd 2024. My situation is I was still working over SGA while my SSDI application was PENDING in 2020. I stopped working above SGA in November of 2020. SSA now says I was overpaid for the first 10 months of 2020 (which was given to me in a one lump sum retroactive payment in November 2020) 1) SSA has access to my income via information sharing with the IRS and they have internal records of deductions taken out of my pay towards Medicare etc. in 2020. Why was my onset date of January 1st. 2020 approved without inquiring about my most recent income from January 1st. through date of approval? 2) I did go over SGA most of 2020 which should count toward a Trial Work Period a/k/a "TWP" rule that allows a recipient to have unlimited earnings for up to 9 months, (not necessarily consecutive) and then reevaluate my eligibility to continue to receive SSDI benefits. I consider my 2020 income as a TWP failed attempt to be able to continue working full time. 3) I applied for SSDI benefits about a week or so into a month in 2020 (I don't remember exactly what month) when my disability prevented me from working above SGA for that month. I then had a slight improvement of my disability for a few more months and finally stopped working all together on November 1st 2020. The reason I applied during that month is I could see my disability was getting worse and my ability to work full time was coming to an end. Am I not allowed to plan for my future? My strongest argument is the abandonment of the "Trial Work Period" rule. I declare I was not at fault for an overpayment. I request that any benefits suspended beginning July 3rd 2024 and going forward be released asap. My most recent benefit amount was $1,563. My $1,500 monthly rent deducts 96% of my benefit. I can't afford to repay an overpayment. Sincerly, Bob Dailey Bobcatzz@aol.com
My multimember LLC is becoming a single member LLC. This conversion will take place in alignment with the tax year, so no partial year tax returns will be required. The multimember LLC has been taxed by default as a partnership. I want the single member LLC to be taxed by default as a disregarded entity. Do I need to file form 8832, even if both entities will have the default tax status?
It doesn't seem that would have to. Here are two things I saw in the form instructions that would make it appear that you don't need to file: 1. An eligible entity is classified for federal tax purposes under the default rules described below *unless* it files Form 8832 or Form 2553, Election by a Small Business Corporation. 2. An eligible entity classified as a partnership will become a disregarded entity when the entity’s membership is reduced to one member and a disregarded entity will be classified as a partnership when the entity has more than one member.
Is this the same form for filing a change of address for a deceased person as an executor? Of course how can a dead person receive a mail right, so it must be the address of the executor. Why is it asking for spouse information if filing for someone?
You can list a decedent if filing a gift tax return or estate tax return. But if an executor were to file, it would be the executor's address information. In this situation, you would leave spouse info blank, if not applicable.
My tax advocate contacted me saying I needed to do an amended return that my gross distribution needs to be under taxable pension? What column or block is taxable pension inputted in? Please advise
I'm really disappointed! You said you were going to show how Mary fills out her W4 for her lower paying job, and this is the part I needed to know. It's not covered in the blog you cite either.
My husband makes 10x what I make because he's a full-timer high school teacher and I'm a less than part-time substitute preschool teacher. He's trying to tell me that all that extra should come off my W4 when I don't even get a paycheck regularly and I make barely over minimum wage per hour too. :/
I did not go over how to complete Steps 3 through 4c for the lower-paying job because the IRS instructions state that you should only complete these steps for *one* job. And the recommendation is that your tax withholdings will be more accurate if you and your husband agree to do this for the *higher paying job.* That was the focus of my video, so I apologize if I did not make that clear up front. Please feel free to pass this recommendation (from the IRS) on to your husband. You can always leave Steps 3 through 4c blank if you don't know what information to put there. I've recommended this as a default for many people without complaint. You and your husband can use the IRS website estimator tool to determine whether your withholdings are sufficient. However, I usually recommend that people use the worksheet located in the instructions for IRS Form 1040-ES, where you can see everything in front of you. IRS Form 1040-ES, Estimated Tax Voucher Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/ Video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-MqA_0OX9kxI.html
im so confused on this topic because according to IRS I need to apply for new EIN if I took over a business, but this form says change of responsible party. do I apply for new EIN or submit this form?
I'm not sure that I've seen anyone encounter this problem before. From what I've read, if a business changes its responsible party, then the business must file IRS Form 8822-B within 60 days, but it keeps the existing EIN. The EIN stays with the business, and is not attached to any individual. It might be worth checking on this with the IRS again before filing this form, but I'd probably submit the form with the business' current EIN so that I did not violate the 60-day timeline.
My FIL passed in 2022 we filed his last tax return he was old a refund we filled out form 1310 but irs has not released the refund. There was no will left my husband is his only child. IRS said we need to fill out form 56 even tho your video is very explanatory I still don’t know what we should choose for any of the sections.
If your FIL passed without a will, then he would be considered to have died intestate. Your husband (I would recommend that your husband signs as the fiduciary, since he's technically the next of kin) should check Box 1d, enter the date of death in line 2a, then complete the rest of the form.
Okay I have no idea whose name do we put down there do we put our name down there or do we put the person that was passing away that we're getting the benefits from?
You might have answered this already somewhere but I heard your comment in the video about checking the details of this form online. Did I hear that right? If so, how do you do that? Do we create an IRS account associated with the EIN, etc.?
You can check your tax transcript on the IRS website, if you've set up an account, which would be tied to your EIN: www.irs.gov/individuals/get-transcript If you don't want an account, you can request a copy of your tax transcript by filing IRS Form 4506-T (see links below on the form and how to complete it). IRS Form 4506-T, Request for Transcript of Tax Return Article: www.teachmepersonalfinance.com/irs-form-4506-t-instructions/ Video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-szu6_cH5QpY.html
Thanks for the clear and complete explanation. I think there is an option to ID yourself with two pieces of ID over a video chat with a rep before you send this form.