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money:taxes [2019/05/14 12:52]
admin
money:taxes [2019/08/09 13:56] (current)
admin [Messing with Tax Payment Timing]
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 ===== Tax Rates ===== ===== Tax Rates =====
-Wow, excellent example. Up to $75K is TAX-FREE from investment income. ​+Wow, excellent example. Up to $75K is TAX-FREE from investment income
 + 
 +Note: Data is for **joint** taxpayers.
  
 {{:​everyday:​pasted:​20171125-101113.png?​600}} {{:​everyday:​pasted:​20171125-101113.png?​600}}
  
 +===== Small business =====
 +  * 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/​
 ===== 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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 As a way to shield your investments from taxes? Probably not as much? IDK As a way to shield your investments from taxes? Probably not as much? IDK
  
-===== Not-Quarterly Taxes with Credit Card =====+===== 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/ ​  
 +    * 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.  
 + 
 +For withheld federal income tax and excess social security or tier 1 railroad retirement tax (RRTA), you are considered to have paid one-fourth of these amounts on each payment due date unless you can show otherwise. </​blockquote>​ 
 +    * Thankfully overpayment of earlier quarters carries forward to next quarters. From form 2210:  
 + 
 +{{:​money:​pasted:​20190715-170516.png}} 
 + 
 +  * Also, if you don't have a large tax bill every 2 quarters and need a large amount of spending, you can make an extra payment for the 4th quarter of the previous year for **whatever amount you want**. File your taxes right away and ask for a direct deposit refund. Then you pay off the cards a few days later when you get your refund. Interesting. https://​wealthyaccountant.com/​2017/​05/​05/​the-ultimate-credit-card-rewards-hack/​ 
 +  * Personally I will probably continue with quarterly payments if I need to get credit card bonuses at that time. 
 + 
 +One more thing, you need records of this transaction. Pay1040.com makes it really annoying to get receipts after the fact (must enter credit card number), but thankfully the IRS keeps payment history. 
 + 
 +{{:​money:​pasted:​20190809-135534.png?​800}} 
 + 
 + 
 +==== Almost ​-Quarterly Taxes with Credit Card ==== 
 {{:​money:​pasted:​20180812-233142.png}} {{:​money:​pasted:​20180812-233142.png}}
   * **It's not every quarter!"​ Spring is 2 months and winter is 4 months. Odd **   * **It's not every quarter!"​ Spring is 2 months and winter is 4 months. Odd **
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 ===== Tax Loss Harvesting ===== ===== Tax Loss Harvesting =====
  
-Want to avoid wash sale, which is when you buy substantially identical (same base index) funds within 30 days in:+Want to avoid wash sale, which is when you buy substantially identical (same base index) funds/​stocks ​within 30 days of a sale in:
   * Same account   * Same account
   * **IRA** accounts, Roth and Traditional!   * **IRA** accounts, Roth and Traditional!
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 More to do here...what is the benefit of an IRA if you're just going to pay taxes on principal and interest later? ​ More to do here...what is the benefit of an IRA if you're just going to pay taxes on principal and interest later? ​
-^ ^  401K  ^  IRA  ^  Roth IRA  ^ Normal ^ +^ ^  401K  ^  IRA  ^  Roth IRA  ^ Normal ​^ Cash Balance ​
-| Features | Tax-deferred \\ Employer often matches | Tax-deferred \\ If employer non-matching,​ deductible? ​ | Pay taxes on principal only | Can tax-loss/​gain harvest \\ Ordinary dividends (held 90 days) and long-term gains are tax-free up to a joint income of 75K (as of 2017) | +| Features | Tax-deferred \\ Employer often matches | Tax-deferred \\ If employer non-matching,​ deductible? ​ | Pay taxes on principal only | Can tax-loss/​gain harvest \\ Ordinary dividends (held 90 days) and long-term gains are tax-free up to a joint income of 75K (as of 2017) | Can put a bunch of money into it 
-| Max Yearly Contribution |  $18,000 \\ [[https://​www.madfientist.com/​after-tax-contributions/​|~$60K with after-tax]] ​  ​| ​ $5,500 total  || | +| Max Yearly Contribution |  $18,000 \\ [[https://​www.madfientist.com/​after-tax-contributions/​|~$60K with after-tax]] ​  ​| ​ $5,500 total  || | Lots (>$100K per year) \\ **But has to be the same every year, despite downturns** ​
-| Early Withdrawal (particularly required minimum) | Can rollover to IRA when leaving company. So look at IRA rules. | 10% penalty on early withdrawal of principal and interest, on top of ordinary income tax. Have to do RMD | Can withdraw principal at any time with no penalty. No RMD's, cool!| Can take out at any time. |  +| Early Withdrawal (particularly required minimum) | Can rollover to IRA when leaving company. So look at IRA rules. | 10% penalty on early withdrawal of principal and interest, on top of ordinary income tax. Have to do RMD | Can withdraw principal at any time with no penalty. No RMD's, cool!| Can take out at any time. | Not sure|  
-| Retirement Withdrawal | | Everything taxed as ordinary income | No taxes on everything | | +| Retirement Withdrawal | | Everything taxed as ordinary income | No taxes on everything | | Not sure 
-| On death | | Unless your spouse is alive, you can't directly gift an IRA. However, it looks like you can do a trustee-to-trustee transfer that you maintain for the deceased and you can pull from it. https://​www.irs.gov/​publications/​p590b#​en_US_2016_publink1000230542. Weird! Also, stuff about withdrawing over a lifetime. Ehh, I'll get to it later. ​ || | +| On death | | Unless your spouse is alive, you can't directly gift an IRA. However, it looks like you can do a trustee-to-trustee transfer that you maintain for the deceased and you can pull from it. https://​www.irs.gov/​publications/​p590b#​en_US_2016_publink1000230542. Weird! Also, stuff about withdrawing over a lifetime. Ehh, I'll get to it later. ​ || | Not sure 
-| Can loan money from | Yes, up to 50K | No || |+| Can loan money from | Yes, up to 50K | No || | |
  
 Go curry cracker on how roth burns your money... :-) https://​gocurrycracker.com/​roth-sucks/​ Go curry cracker on how roth burns your money... :-) https://​gocurrycracker.com/​roth-sucks/​
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 $750 to Liberty Robotics for payments for Houston robotics trip. I will attempt to work the whole time. $750 to Liberty Robotics for payments for Houston robotics trip. I will attempt to work the whole time.
 +
 +$200 to Elevate Oregon for Chromebook. More soon
  
  
 === Estimated Payments === === Estimated Payments ===
 ^ ^ Federal ^ Oregon ^ ^ ^ Federal ^ Oregon ^
-| Total 2018 | $15000 | $7000 |+| Total 2018 | $15000 | <del>$7000</​del>,​ $7644? ​|
 | Quarterly | $3750 | $1750 |  | Quarterly | $3750 | $1750 | 
 | Mar. 27 | Done (Pay1040)| Done | | Mar. 27 | Done (Pay1040)| Done |
-| Jun 15 | //​Don'​t need a different processor, I don't think// ​| |+| Jun 15 | Done (Pay1040) 1.87% | Done June 7 | 
 +| Sep 15 | 696 out of $3750 Jul 8. \\ Paid 4418 on Aug. 6 \\ for travel expenses | Done Jul 8. 1792 total.|  
 +| Jan 15 | | |
  
  
money/taxes.1557863551.txt.gz · Last modified: 2019/05/14 12:52 by admin