Economy

NDVirginia19

NDVirginia19

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I think there was bound to be a recession whoever got elected after tons of inflation and hidden/manipulated jobs reports covering up the true state of the economy, but the policies from the Trump administration are certainly exacerbating the crash.
 
TorontoGold

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NDVirginia19 said:
I think there was bound to be a recession whoever got elected after tons of inflation and hidden/manipulated jobs reports covering up the true state of the economy, but the policies from the Trump administration are certainly exacerbating the crash.
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Trump's first term got absolutely gifted with the COVID crash because the fundamentals were blinking red and we were already seeing a recession on the horizon.
 
NDVirginia19

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TorontoGold said:
Trump's first term got absolutely gifted with the COVID crash because the fundamentals were blinking red and we were already seeing a recession on the horizon.
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Right, and while the COVID crash was still very real, it was the shortest recession in US history, and I'm not too sure much structural economic change happened to the economy. The hardest hit sectors really didn't foundationally change given the uniquely short duration of the recession. In all reality, as you say, the stimulus that got the US out of the COVID recession probably just put a bandaid over the much larger recession that was due to rear it's head. If you don't look at the 2020 recession as a true structural recession but a frictional blip from COVID, we are at our longest period of economic growth by far in our country's history
 
TorontoGold

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NDVirginia19 said:
Right, and while the COVID crash was still very real, it was the shortest recession in US history, and I'm not too sure much structural economic change happened to the economy. The hardest hit sectors really didn't foundationally change given the uniquely short duration of the recession. In all reality, as you say, the stimulus that got the US out of the COVID recession probably just put a bandaid over the much larger recession that was due to rear it's head. If you don't look at the 2020 recession as a true structural recession but a frictional blip from COVID, we are at our longest period of economic growth by far in our country's history
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Yep, nothing really changed much and it basically was a "false start on the offense" type recession. The positive for Trump is that the corporate tax breaks that were superheating the economy got pared back with higher wages.
 
Irish#1

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Sea Turtle

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Does anybody on here do taxes? I have a particular question about a 529 non qualified withdrawal that I'm having problems getting the answer to.
 
TorontoGold

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Sea Turtle said:
Does anybody on here do taxes? I have a particular question about a 529 non qualified withdrawal that I'm having problems getting the answer to.
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I don't US personal taxes (just corporate) but I would have the beneficiary of the withdrawal be your child. Their tax rate is going to be lower than yours and you'd be paying taxes on that amount at a much lower rate than if it was allocated to you.

Depending on the State there will likely be an attribution form or some sort of acknowledgement that they will have to sign to change beneficiaries if it isn't already them. If your kid gives you any flack for attributing them income just let them know that YOU were the one who made the contributions so they're lucky they had you helping them with the costs, and it makes more tax sense to have them pay the tax at a low rate.

I think there's likely enough tax credits available that they would be paying very minimal tax on the withdrawal.
 
Sea Turtle

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TorontoGold said:
I don't US personal taxes (just corporate) but I would have the beneficiary of the withdrawal be your child. Their tax rate is going to be lower than yours and you'd be paying taxes on that amount at a much lower rate than if it was allocated to you.

Depending on the State there will likely be an attribution form or some sort of acknowledgement that they will have to sign to change beneficiaries if it isn't already them. If your kid gives you any flack for attributing them income just let them know that YOU were the one who made the contributions so they're lucky they had you helping them with the costs, and it makes more tax sense to have them pay the tax at a low rate.

I think there's likely enough tax credits available that they would be paying very minimal tax on the withdrawal.
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I appreciate the input. I only withdrew about half of it for a car. I left the rest in. On the 1099Q form there are the amounts of the withdrawal from the two funds. There is also the fair market value of the two. BUT the money earned box(taxable since it's for a car)for both funds are blank. I called capital group but they couldn't help me.

Is the difference between the withdrawal amount and the market value the earned amount or do I have to figure that out somehow? Also I have to add a 10% penalty on the earned income.
 
TorontoGold

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Sea Turtle said:
I appreciate the input. I only withdrew about half of it for a car. I left the rest in. On the 1099Q form there are the amounts of the withdrawal from the two funds. There is also the fair market value of the two. BUT the money earned box(taxable since it's for a car)for both funds are blank. I called capital group but they couldn't help me.

Is the difference between the withdrawal amount and the market value the earned amount or do I have to figure that out somehow? Also I have to add a 10% penalty on the earned income.
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I read the link below and my interpretation would be

Box 1 - Total amount taken out of the account
Box 2 - Gain on investment (FMV - ACB)
Box 3 - Book cost of the investment taken out

The 10% penalty appears to only be on the earnings/gain on the investment, so I think you're only going to be paying tax on the excess earnings on the investment amount.

Of course check with a proper US tax person but I don't think your tax burden should be too much, unless you made a killing in the investment account.

turbotax.intuit.com

Guide to IRS Form 1099-Q: Payments from Qualified Education Programs

You'll receive an IRS Form 1099-Q when you withdrawal money from a 529 plan or a Coverdell Education Savings Account (Coverdell ESA). Learn when and how to include it on your tax return.
turbotax.intuit.com turbotax.intuit.com
 
Sea Turtle

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TorontoGold said:
I read the link below and my interpretation would be

Box 1 - Total amount taken out of the account
Box 2 - Gain on investment (FMV - ACB)
Box 3 - Book cost of the investment taken out

The 10% penalty appears to only be on the earnings/gain on the investment, so I think you're only going to be paying tax on the excess earnings on the investment amount.

Of course check with a proper US tax person but I don't think your tax burden should be too much, unless you made a killing in the investment account.

turbotax.intuit.com

Guide to IRS Form 1099-Q: Payments from Qualified Education Programs

You'll receive an IRS Form 1099-Q when you withdrawal money from a 529 plan or a Coverdell Education Savings Account (Coverdell ESA). Learn when and how to include it on your tax return.
turbotax.intuit.com turbotax.intuit.com
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Thank my man. I really appreciate it. I finally found a relatable example.
 
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Bishop2b5

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GATTACA! said:
Sad times to be an American.

Please post some positive articles. It's going to be a long 4 years.
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It's only a sad time or a long four years if you've backed the losing side that got voted out. The rest of us are quite happy to see the wacky, woke, anti-American, anti-commonsense BS getting swept away. We're very glad to enjoy the better times. You can continue on with being mad about it every day. The rest of us are moving forward towards a much better world.
 
BuaConstrictor

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Bishop2b5 said:
It's only a sad time or a long four years if you've backed the losing side that got voted out. The rest of us are quite happy to see the wacky, woke, anti-American, anti-commonsense BS getting swept away. We're very glad to enjoy the better times. You can continue on with being mad about it every day. The rest of us are moving forward towards a much better world.
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So.....this is just rambling with no articles.

Better times for who?

Much better world for who?
 
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