Ok, time for income tax questions

Discussion in 'Archived Threads 2001-2004' started by Jared_B, Feb 17, 2003.

  1. Jared_B

    Jared_B Supporting Actor

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    This year I owe $1000 in taxes. I've already made an adjustment to my W4 to have more taken out (plus for 2003, I'll be divorced, so claiming fewer deductions for that as well).

    TurboTax automatically printed out quarterly payment vouchers for me, but made no mention as to whether or not these payments are "required" or only a suggestion for 2003. Everyone I've talked to so far (none were experts) seems to think they are only suggested.

    If I changed my W4 to have more withheld, do I even need to bother with the quarterly payments?

    (Feel free to post other tax questions here too - maybe we could have one thread for tax issues)
    Thanks
     
  2. Todd Hochard

    Todd Hochard Cinematographer

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    If you've already made a W-4 adjustment to bring increase your withholdings, then the quarterly payments should be unnecessary. Just make sure enough is being taken out of your check (you may have to deduct additional, beyond even S-0 withholding, depending on your income level).

    Here's my tax issue- Roth IRA losses.

    I have a Roth IRA that has been obliterated by stock market losses. I'd like to close it out, pull the money and take the loss in 2003. IRS pub 590 tells me I can do this, but the account has to be closed.

    Can I then open a new Roth IRA, put in my $3000 for TY2002 (which I can do until April 15), without running into problems deducting the "old" Roth losses?

    I've stumped a few with this one. I can't find anything wrong with doing this, according to the pub 590.

    Todd
     
  3. Jared_B

    Jared_B Supporting Actor

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    Thanks for the quick response, Todd.
    Anyone have a link to the tax bracket breakdown? A quick search of the IRS site didn't get me much. I think my recent raise really wasn't a raise at all because of a bracket jump. [​IMG]
     
  4. Todd Hochard

    Todd Hochard Cinematographer

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    The only place I've ever been able to reliably get tax tables, is from the payroll department at work.
    And, in the realm of the "respectable Joe" levels of income, brackets are 10%, then 15%, then 27%, then 30%. You pay 10% on the first $6000 of income (yearly), then 15% on the amount from $6000 up to xx,xxx(I forget the amount), and so on. So, a raise is always a raise (and something no one in my entire company has seen since Spring of 2000 [​IMG]).

    I think I've decided to keep my Roths, suck up the loss as penance for my idiotic investing style, and continue the contributions. I'm concerned about hitting AMT limits, and losing the deduction anyway.

    EDIT- http://www.americanpayroll.org/pdfs/...s/n1036-02.pdf

    Todd
     
  5. MarcVH

    MarcVH Second Unit

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    Fairmark's tax reference room may prove useful as a resource. The site has a lot of other good information too.
     
  6. Bill Griffith

    Bill Griffith Supporting Actor

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    Todd, concerning your IRA Problem.

    There's a rule in trading stocks (Not sure how this is effected by IRA but it gives you aplace to start looking). Basically it says that you can claim any realized losses that you might have incurred up to a certain limit for the year. Anything left over can be claimed on the next years next form, and so on. HOWEVER, you can not claim this stock loss if within a givin period of time You sold the stock for a loss then put it back into the same thing or something similar. For instance

    I buy 2000 shares of Worldcom @ $2 ($4000)
    it takes a dive and I sell it at $1 ($2000)
    I lost $2000.
    The next week I put that money back in Worldcom @ .50 (4000 shares)
    I then sell it a few months later at $1.75 ($7000)

    I now have to pay taxes on $3000 of realized gain (7000-4000). I can't claim the $2000 loss and subtract that from my gain because I stuck it back into the stock to soon. Its been awhile but I think you have to wait 90 days. And i can't remember what this rule is called either.

    I'm not sure if this effects IRA's or not but if your really concerned you might want to ask a CPA.
     
  7. Brian Perry

    Brian Perry Cinematographer

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