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#41

And make sure you’ve got receipts for those items you’re expensing. :slight_smile:


#42

Hi,
Any idea about 11 digit tax id. How do we enter into tax system? It only accepts 9 digit for any dependent care expenses.

Thanks


#43

I’m thinking you report a bug to “tax system” vendor?


#44

Thanks for the information. Is it ok to get a receipt with 11 digit tax id. I am not sure if we got a wrong tax id.


#45

https://www.google.com/search?q=11+digit+tax+id


#46

Due to the tax reform, I prepaid Mortgage, Property Taxes and Medical & Dental Ins for Jan 2018
in December. For the insurance I charged them on 12/29 as well as a medical bill I got in the mail that day, so its showing as paid on 1/2/18.

  1. Can I deduct the Insurance payments for 2018 that I charged on 12/29?
  2. I believe I can deduct the Property Tax, right?
  3. I refinanced so I paid interest at closing(close on the 10th, payments started 2 months later) but the loan was sold immediately to another Servicing Company. Am I supposed to still be getting a 1098 from the Bank that refinance my mortgage or do I just write it in and keep records?

#47

Regarding your prepaid mortgage: prepaid unaccrued interest is not deductible – only interest accrued and paid in 2017 is deductible. If you prepaid the mortgage payment that was due on or after 2/1/2018, that interest portion is not deductible on your 2017 taxes, because it includes interest that would have accrued in January of 2018. You should/could have only prepaid the mortgage that was due 1/1/2018, because that bill includes interest accrued in December of 2017. If you paid more than that, I’d guess the interest would be deductible in 2018 (if you still manage to itemize under the new law).

  1. If the insurance bill did not cover any days in 2017 and was not due by 12/31/2017, then I would think it’s not deductible. Things are deductible not only because they are paid in 2017 tax year, but also because they accrued in 2017, like property tax and mortgage interest. Also I don’t actually know if medical or dental insurance is deductible, I’m assuming that it is because you asked.
  2. Yes, if the property tax was for all or part of 2017 (even if part of it was for 2018).
  3. You should receive a 1098 for any prepaid interest. It’s deductible in the year you paid it. If you closed on the 10th of November, the prepaid interest was for 10th-31st of November. There’s no payment due in December. The first payment is due January 1st (there’s usually a 2 week grace period) and it includes interest accrued during the month of December.

You didn’t ask about your medical bill. I’m guessing since you charged your card on the 29th it’s probably deductible, but I’m not sure. And medical deductions must exceed 7.5% of AGI before they become deductible. Normally it’s 10%, but it was reduced to 7.5% for 2017-2018 tax years.


#48

Hi scritpa.

Thank you so much for the reply, I shouldn’t be shy about posting more. I spent days researching and wasn’t 100% sure and here you covered everything in a matter of mins.

Mortgage : Yes, I just paid the 01/01/18 payment, which means Interest accrued for December.

  1. Insurance : It was for Jan 2018, so I won’t add this.
  2. Property Tax : The Chicagoland area bills in arrears, so even though the bill was due 3/1/18, it was for 1st installment of 2017 Taxes. So the 2017 bill (already paid as normal) is for 2016 taxes and then paid 1st installment(bill provided online as its just a % of previous bill) due 3/1/18 in Dec which is for 2017 taxes…so I can deduct right?
  3. I closed on August 2017, so the prepaid interest was for 10th-31st of August, 1st payment due in October. The bank didn’t send me a 1098,so I should contact them tomorrow?
  4. Medical bill was for Nov(emergency room) & Dec visits, I will exceed 7.5% AGI since I have the highest ACA plan which is ~$600 per month + Medical expenses…wait…let me add a one more
  5. Medical and Dental insurance payments are deductible, right?

Edited to add one more, 2 banks did not send 1099-INT for bank bonus. Lots of Comments on DOC confirmed the same for Well Fargo and the data-point is that it was dependent on how you qualified for the bonus(DD or 10 transactions), so the expectation is that I will not be receiving it. Should still add a 1099-INT for them? Both account were closed before December.


#49

Yes.

If you owed any income taxes, you should have filed your return in April and itemized the prepaid interest. You can call and ask, but I think you can deduct it on your taxes even if they don’t send you the 1098. Your closing documents should mention the amount and serve as proof.

It matters when you paid. Your credit card statement will probably only show the 1/2 date. If I were you, I would save some proof that your card was authorized 12/29 (or a receipt showing the bill was paid 12/29).

It depends, google it. I found this: https://www.irs.gov/taxtopics/tc502

You could have provided a link to save me some time :slight_smile:. I don’t think it’s similar to a credit card bonus, because those require a certain amount spent, while this one just required a certain number of transactions. I’d say this depends on how honest you want to be / where you draw the line. On the one hand it’s most likely taxable, on the other you didn’t get a 1099.


#50

Thanks again!

So Mortgage, Insurance for Jan 2018 and Property taxes are resolved.

  1. Pre-paid Interest : I don’t owe, so I can file after April. These ?s and another issue with closing an old s-corp is why I held off but I’m working on it now. I’ll contact the bank, but proceed with adding it in & filing a copy of closing statement with the other 2017 tax documents.
  2. Medical bill : Got you, I don’t think there is a way to prove this but I can ask Citi. I know that Chase cc statements shows Trans & Posted Date.
  3. Medical Insurance deduction : I already read it but wanted confirmation from an expert :slight_smile: Reading the site again, I think that’s a yes. I’m paying 100% of the premium, no subsidies (employer doesn’t provide insurance)
  4. 1099-INT : Sorry, I didn’t know if I could add a link. If I assume a 25% tax rate, I would be saving $100…so I have to decide if its worth it not to report.

I think that’s all on the taxes ?s.


#51

Good news, Citi cc statements show Trans & Posted Date as same Dec date, all 3 Medical expenses show on the same statement. I’ll proceed with claiming these.


#52

Not sure if this is the right place to ask but does anyone know if applying for a brokeage account with no margin at TD Ameritrade trigger a hard pull? How about with margin (I suspect this would)?

I called a got a “umm I think so”, called again another rep put me on hold to check, which doesn’t mean 100% certainty to me :slight_smile:.

I already have an account with them, this will be another one, if that helps.


#53

I don’t know specifically about TDA, but in general a brokerage account without margin does not let you borrow money, so there should be no credit inquiry at all. I would expect a hard inquiry for a margin account. Either way, the application should tell you if they intend to pull your credit and ask for permission (or tell you that you are giving them permission by submitting the request).


#54

Schwab is known for doing a hard pull regardless of margin, while I think TDA should be fine.


#55

Thanks scripta and xerty. I just finished applying and so far, no notifications from CreditKarma & Experian. Also I didn’t get a “we will be pulling your credit” warning/request for permission.

I did skip applying margin for now.


#56

xerty, Are you saying that TDA will pull credit for margin only? Just wanted to be sure…I will be adding margin much later.


#57

I don’t think TDA pulls for margin at all, but it’s been a while since I opened my account there.


#58

Got it. Thanks.


#59

Curious if anyone knows why this is…

I was rolling over a 0% BT using an offer from Citi. When I went to deposit to a BOA checking account, I received a message that the account was not usable. I previously received this message when trying to deposit to a credit union. I thought it was due to being a CU.

Anyone know why Citi won’t direct deposit a balance transfer to Bank of America?


#60

Can you clarify? Were you trying to deposit a CC check – the kind we get in the mail all the time? If so, I’ve never had a bank or CU not accept the check, but I certainly have had them put a hold on it – depends on the bank and it can depend on how much history you have with the FI and what your typical balance is & typical deposits / withdrawals.

If you are talking about something else, please explain.