Death and... Taxes.

a c i d.f l y · May 4, 2019

Personal exemption cap courtesy of Trump ruins exemptions unless you file everything under a business. Thinking of registering an LLC just to take advantage of the benefits of filing as a business vs single/married. I felt very copped out filing this year with over $13,000 in exemptions with the cap being $10k, and standard deduction being $24k for my income... Still net a $1k gain, though was half as much as last year. Though we also spent like $7k less in taxes overall so I can't complain too much.

If I relied on child tax credits, I'd be super fucked compared to previous years. Fortunately I pay out of pocket, unclaimed, for my mom to care for my child. Childcare is highway robbery, so the loss of deductions there is pretty fucked.

Noodleface · May 5, 2019

It's $1200-2000 for ONE KID PER MONTH here. With two I don't see how having my wife work would even be remotely worth it.

a c i d.f l y · May 6, 2019

Noodleface said:
It's $1200-2000 for ONE KID PER MONTH here. With two I don't see how having my wife work would even be remotely worth it.

Yeah, when I was looking at it being $25k/year/kid I honestly didn't know what to think. Back in the day, moms stayed home because "my oppression" or whatever, though honestly it was just easier and folks had litters, families tended to live in close proximity and had large support structures. These days having 1-2 kids is obscene when all of your family lives in different states, and more than that fundamentally requires a parent to stay home unless one parent makes an amount not realistic to 99% of us. Had a coworker opt to stay at home because they had three kids and even though she made $80k was still too close to the cost of childcare, and she also gets to spend every day with her kids now.

OneofOne · May 8, 2019

Lendarios said:
Open a legitimate business. Like xyz, and expense the full value of the car provided you use it for business purposes at least 51%. It doesn't matter if you fail horrible at businessing.

Do you have any idea how many faulty assumptions you have made? You have zero understanding of any of this, and your prior 5k side business example shouts that out.

You have (at least) 3 ex tax professionals on this board. It would be best for you to just stick to things you understand. Like making rafts out of milk jugs.

Captain Suave · May 8, 2019

a c i d.f l y said:
$25k/year/kid

Where do you guys live? I pay $800/mo for my daughter to go full-time to a well-regarded local Montessori preschool in LA.

OU Ariakas · May 8, 2019

Noodleface said:
It's $1200-2000 for ONE KID PER MONTH here. With two I don't see how having my wife work would even be remotely worth it.

Live in Au Pair, try a service (we used EurAupair) and see how much they cost. You will be very happy.

Noodleface · May 8, 2019

My house isn't big enough to support a live in au pair nor am I of the social status where having an au pair is a thing

Vinen · May 8, 2019

Noodleface said:
It's $1200-2000 for ONE KID PER MONTH here. With two I don't see how having my wife work would even be remotely worth it.

2500 to 3000 / month here for a centre.

Frenzied Wombat · May 8, 2019

Frenzied Wombat said:
I'm single with no kids in Texas, but I got absolutely raped this year having to write a check for 26K to the IRS and pay a $700 withholding penalty. I'm employed and get deductions at source, but my company only taxes 22% on bonuses and my effective rate for the year was 27%. In my case, the cap on State deductions screwed me because my biggest deduction is property taxes and sales tax, effectively limiting what should have been like 22K in deductions to 12k.

Lmao so after writing a check for 26K plus $700 withholding penalty, the IRS sends me a letter that I owe them an additional $426 because a large bonus I put down as receiving on the 1st of the month in that quarter, was actually deposited a day earlier on the 31st of the previous quarter. FML.

OU Ariakas · May 8, 2019

Noodleface said:
My house isn't big enough to support a live in au pair nor am I of the social status where having an au pair is a thing

The house thing I get, although if you have a room and can double up the kids that is easy. The social status thing is a meaningless comment. If money is the issue, Au Pair's are cheaper than two kids but more expensive than one. The biggest benefit is that they are with the kids all day so you don't have to worry about to and from daycare every day.

Vinen · May 8, 2019

OU Ariakas said:
The house thing I get, although if you have a room and can double up the kids that is easy. The social status thing is a meaningless comment. If money is the issue, Au Pair's are cheaper than two kids but more expensive than one. The biggest benefit is that they are with the kids all day so you don't have to worry about to and from daycare every day.

I'd rather my kid get educated and get used to schooling while young. Even if it is play based education at his age.

OU Ariakas · May 8, 2019

Vinen said:
I'd rather my kid get educated and get used to schooling while young. Even if it is play based education at his age.

That is a completely acceptable answer. I have 3, about to be 4. We do a few days a week for socialization but the cost would destroy us and the two of us are both paid very well.

Noodleface · May 8, 2019

OU Ariakas said:
The house thing I get, although if you have a room and can double up the kids that is easy. The social status thing is a meaningless comment. If money is the issue, Au Pair's are cheaper than two kids but more expensive than one. The biggest benefit is that they are with the kids all day so you don't have to worry about to and from daycare every day.

It's not a money thing. I have never in my life met a person with a. Au pair outside of this forum

OU Ariakas · May 9, 2019

Noodleface said:
It's not a money thing. I have never in my life met a person with a. Au pair outside of this forum

Neither had I until I looked into the cost when we found out we were having twins and the cost (time and money) for daycare.

Khane · May 14, 2019

Anyone have any experience with back taxes and penalties?

I just got a letter from the IRS that I owe ~11.5k in back taxes from 2017 and another ~3.5k in penalties and interest. I checked my return against my W2 where the IRS is showing discrepancies and everything on my return matches my W2. What I am guessing happened is there was a corrected W2 that my company never sent me and I just asked the people in finance to take a look and send me all tax forms from 2016 and 2017 so I can figure this out.

I figure I'm going to need to pay the back taxes because I actually owe those taxes, but I'm hoping I can get the penalties and interest dropped somehow.

Burnesto · May 14, 2019

Khane said:
Anyone have any experience with back taxes and penalties?

I just got a letter from the IRS that I owe ~11.5k in back taxes from 2017 and another ~3.5k in penalties and interest. I checked my return against my W2 where the IRS is showing discrepancies and everything on my return matches my W2. What I am guessing happened is there was a corrected W2 that my company never sent me and I just asked the people in finance to take a look and send me all tax forms from 2016 and 2017 so I can figure this out.

I figure I'm going to need to pay the back taxes because I actually owe those taxes, but I'm hoping I can get the penalties and interest dropped somehow.

You can write a letter requesting an abatement of the penalty and interest. If it's your first time they'll sometimes reduce it.

Captain Suave · May 14, 2019

Khane said:
I just got a letter from the IRS that I owe ~11.5k in back taxes from 2017 ... I actually owe those taxes, but I'm hoping I can get the penalties and interest dropped somehow.

Is your 2017 W-2 ~$30k short of what they actually paid you? That seems like a big oversight.

If it's legit, you might be able to get the fines reduced if you pay promptly and spin a good story. However, it's generally on you to report your income correctly regardless of whether your employer does so or not.

Khane · May 14, 2019

Was able to get the corrected W2 from my employer and yes, the original W2 was ~33k short for the "taxable income" line. I am going to try to write a letter like Burnesto suggested and already called and asked for an extension on payment because of the circumstances which was granted.

Picasso3 · May 15, 2019

OU Ariakas said:
The house thing I get, although if you have a room and can double up the kids that is easy. The social status thing is a meaningless comment. If money is the issue, Au Pair's are cheaper than two kids but more expensive than one. The biggest benefit is that they are with the kids all day so you don't have to worry about to and from daycare every day.

And if they get sick a daycare sends them home whereas au pair covers.

Noodleface · May 16, 2019

Question on my tax liability

My new job I'm at 125k for the year. Single income household with two kids. According to the worksheet, I should claim 7. 1 for me, 1 for my wife, 2 for each kid, and 1 for something else I cant remember.

I feel like I've never claimed that much before. Does that seem realistic or should I lower it?

Death and... Taxes.

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