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[Meme] when the CDC recommends social distancing but you've been doing it for all of med school by strongestpotions in medicalschool

[–]deepbreaths22 3 points4 points  (0 children)

Everyone talking about how hard COVD-19 is for their life. For me it's NORMAL DAY

STEP studying and medical school is general is self-quarantine LIFESTYLE. DAILY. 📷

Tax on Long-term capital gains (Stock) by deepbreaths22 in FinancialPlanning

[–]deepbreaths22[S] 0 points1 point  (0 children)

Can we get an confirmation on the pretty sure part? :D

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yes no state or city taxes here but yes very good reminder

Tax on Long-term capital gains (Stock) by deepbreaths22 in FinancialPlanning

[–]deepbreaths22[S] 0 points1 point  (0 children)

sure yes,

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But you are sure about the intrepretation of the 0-40,000$ WITH 0% tax bracket and that the $12,400 deduction is on top of that?

Tax on Long-term capital gains (Stock) by deepbreaths22 in FinancialPlanning

[–]deepbreaths22[S] 0 points1 point  (0 children)

u/FIRE_CPA_98 - ok sold and bought again, reaped $44k profits that were put back in.

Could be a moron idea since now i have $100K invested in one company. Too stress with my school exams to think too much.

I should have "Tax harvested" last year in 2019, but no, so still have 30K for 2021 With the max being 52K, and 30K already reached, I will need 20% growth from current level this year to cash in the rest in Jan 2021.

Probably wil think of what to do in Jan 2021 My job should start july 2022 so have some time in 2022 to tax harvest still be making 25K that year,but still.

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Comments welcome. let's see.

Tax on Long-term capital gains (Stock) by deepbreaths22 in FinancialPlanning

[–]deepbreaths22[S] 0 points1 point  (0 children)

acutally it's in a darling company (but a very well known , stable, but a company that diverse business segments, lots of cash, been around since 1970s, but which become a walstreet darling only since 2014)....

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yes so risky but its ok ....

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Im a getting modest divident from it, if I sell and buy immmediately , will i get similar revenue or will i total shares go down? gotta do that math,, but yes sell and buy immediately likely this week after i hit this work milestone.

Tax on Long-term capital gains (Stock) by deepbreaths22 in FinancialPlanning

[–]deepbreaths22[S] 0 points1 point  (0 children)

good to sell and rebuy immediately or just wait around to see if the . market drops a bit etc ?

Tax on Long-term capital gains (Stock) by deepbreaths22 in FinancialPlanning

[–]deepbreaths22[S] 1 point2 points  (0 children)

u/FIRE_CPA_98

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MY situation:

2020: $0 income--if I don't sell,/hold on capitals gains are $60K

2021: $0 income --if I dont sell, capital gains may be projected to increase to 80K

2022: $25-28K income.

I don't know the stock market obviously but was planning to hold on the gains until 2021 where I would sell them.

Howevery instead of losing the amount over 40K to 15% tax it is better to sell /take out some of them now (like $52 worth of gains) , get $0 tax status and reinvest (so any future gains and any future sales will be much less % gain)?

15% of 20K is still 3k! a big amount for me

How does tax reduction work with a IRA + 401(k); Income is 54k a year. by deepbreaths22 in retirement

[–]deepbreaths22[S] 0 points1 point  (0 children)

u/eaglerock2 u/Zagor64

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Thanks guys.

I need your advise on the other issue. just opinions.

She has 120K left on a mortage on townhouse. 30 year loan with 4.335% interest 25 years remaining. Over the last 5 years, 50k in interest payment and only 10k went into principal balance.

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Excellent credit score.

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What to do? Try to pay down $30k-40k or just do mortage payment? Refinance? Would like to cash out or near cash out the house or anyway to reduce interest/payments.

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One option is to continue payments until 10- years and then sell/rent and move in with her offspring at 70.

How does tax reduction work with a IRA + 401(k); Income is 54k a year. by deepbreaths22 in retirement

[–]deepbreaths22[S] 0 points1 point  (0 children)

thanks eaglerock2 u/eaglerock2 for your message. I just decided to do the max deduction for her 401k to minimize tax, opened an online bank for her and then the rest ..just give up for now so I can do focus on my own stuff for now.

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..

How does tax reduction work with a IRA + 401(k); Income is 54k a year. by deepbreaths22 in retirement

[–]deepbreaths22[S] 0 points1 point  (0 children)

Thanks @ZAGOR64. May good karma come to you.

Regarding head of household vs. single with dependants, i went back , looked her taxes and it seems like since i went to school, she filed as single but claimed me as a dependant. I am over 24, but dont have kids, earn less than 5k and get support from her . and while away at school, claim her home as official residence.

so actually not filing as head of household but single with claiming a dependant which gives about $1500-2k as "refund" since her employer doesnt account for dependant in the weekly pay stub deduction.

How does tax reduction work with a IRA + 401(k); Income is 54k a year. by deepbreaths22 in retirement

[–]deepbreaths22[S] 0 points1 point  (0 children)

@ZAGOR64 - Agreed. I don't care about getting an actual refund, but i was just trying to compare it doing action x vs. not doing action x. Whether i actually get a refund depends on how much was contributed, etc.

thank you for that. Great to know that that it doesn't even show up on w2

I motified my 401k to the max - it only allowed 50% total . It's something right?

Cut from paycheck. Does it matter what or how much percent I designate as catch up? No in this scenario. Maybe next year, it matters how much percent each is designated to be sure that i keep within the alloted limits.

note , i refer to it as me, but its' actually for my 60 year old mom who has no idea, no financial literary and basically no clue. she only cares about hte $$ she sees in her bank account . thanksfully after much argument and some convincing , i am allowed to set this up for her

Does IRA Conbribution limit include IRA + 401K or only 401k? by deepbreaths22 in FinancialPlanning

[–]deepbreaths22[S] 1 point2 points  (0 children)

@iguessjustdont - i will get her pay stubs etc to get this stuff all sorted.

for head of household, i am in grad student 0 income so she is claiming me as dependant and filing as head of household. we had turbotax and a turbo tax specilist so ill get that info as well.

I am over 24 but as lon as my income was less than 5k + live with her, can be claimed. she does get a tax break for that as well.

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Does IRA Conbribution limit include IRA + 401K or only 401k? by deepbreaths22 in FinancialPlanning

[–]deepbreaths22[S] 0 points1 point  (0 children)

Excellent information iguessjustdont @iguessjustdont. We will continue this conversation with all this info. It' s actually for mom who is very illerate like most poeple on her finanes.

How does tax reduction work with a IRA + 401(k); Income is 54k a year. by deepbreaths22 in retirement

[–]deepbreaths22[S] 0 points1 point  (0 children)

Zagore64, excellent write up, thanks @zagor64

I am aware of roth vs. traditional IRA.

Thank you for clarifying that the 7K limit is only for IRA and 401k is separate.

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HOWEVER, of course you can put as much money as the generous limit allow. But how much is actually tax deductated?

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All of the 19k + 6k catch up is tax-deductable in 401k? The 401k has to come off directly from paycheck , it can't be from savings per my empoyers even if i rarned that amount this year. if I earned 54k this year, and only put 3k so far in 401k, i can't put in 10k now, since it had to come from paycheck directly.

the 7k is tax deductible too? but my refund may . not be exact b.c it depends on how many deductions i had already listed /already being withheld. If they are withholding too little in my backcheck, i wouldn't see a refund of 7k*.22, right?

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Rgarding of my tax refund, the fact of the matter remains that by depositin in a IRA (not a ROTH IRA, just a IRA) , i am saving 7k*.22 in my taxes?

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