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I was also a half-time GRA (graduate research assistant, paid from a grant) in 2013 and had insurance reported on my W2 (line DD). However this was the first time it had been reported like that in the 3 years I have been a GRA, I never had anything in the DD box before.
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Feb 8, 2014 23:26
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On my end, this is my seventh year and I've never had anything in Box 5 of the 1098-T up until now, despite having insurance through the university for the past four years.
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Feb 8, 2014 23:57
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Bloody Queef posted:Report all of your income and expenses. Having a loss on your Schedule C doesn't automatically trigger an audit. Why wouldn't you want to use every legal avenue to legitimately reduce your tax liability? I wouldn't but nor would I want to unduly invite hassle. I think these expenses can legitimately be counted, but this "self employment" is kind of a weird thing because it is similar to my W2 work. If my wife is a PhD student, I am correct that she cannot deduct materials she purchased to conduct her dissertation research? They were not "required for a course" but were needed for her to do the work.
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Feb 9, 2014 04:55
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This is a really weird situation, so I'm not sure if it's within the scope of the thread, but I figured I'd ask anyways in case someone knows the answer. For a schedule C, with 1099-MISCs, what do you do if the reported amounts aren't the same as the amounts you received (direct deposited), but it's not a mistake and there's a reason for it? For more context, the company that sent me the 1099-MISC has stated to multiple people involved with this that the discrepancy is based off of currency conversion fees. The amount that I received (and others have received) is lower than what's being reported on our 1099-MISC because of that (they do the currency conversion set up on their end, then deposit the slightly reduced amount to us). Can I claim the difference in amounts as a business deduction for currency conversion fees levied by the company I'm working with? The only "receipt" of this that I would have is the fact that the deposited amounts are different from the 1099-MISC amounts and the company itself said in an email that the discrepancy is from currency conversion fees. Is that enough?
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Feb 9, 2014 17:33
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I work a W2 job. Last year my wife worked part time at her old job (W2), and part time selling goods on Etsy. She brought in close to 10k and kept all of her receipts for business expenses. Is it dumb to try and file on our own? I feel like we can do the Schedule C fine, but I'm nervous since it's the first year she worked from home. About how much would it cost to have it done for us?
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Feb 9, 2014 18:55
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Cerys du Lys posted:This is a really weird situation, so I'm not sure if it's within the scope of the thread, but I figured I'd ask anyways in case someone knows the answer. Report the amount you actually received. I guess you could report the 1099-MISC amount as gross income, then deduct the difference as a business expense, but I wouldn't bother.
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Feb 9, 2014 18:56
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kaishek posted:If my wife is a PhD student, I am correct that she cannot deduct materials she purchased to conduct her dissertation research? They were not "required for a course" but were needed for her to do the work. Grad students can't take the American Opportunity Credit in the first place, and both the Tuition and Fees deduction and the Lifetime Learning Credit have a stricter requirement in that you have to be obligated to purchase the materials from the school itself for the expenses to count. So unless it appears on her 1098-T, I'd say no.
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Feb 9, 2014 19:11
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This partial-resident state tax stuff is even worse than I thought. Hopefully someone can clarify: Let's say my income was $50,000, with $30,000 as a MA resident from MA sources and $20,000 as a NY resident from MA sources. I'm paying taxes to MA on the whole $50,000 because it was all from MA sources. I'm paying taxes to NY on $20,000 because that's what I earned while a NY resident. I already finished my MA taxes and know that I owe a small amount on top of my withholdings. I'm trying to figure out what I can deduct from the NY taxes due to already paying MA. They're asking for the amount I already payed MA, so do I take 40% of my MA tax payment, since 40% of the income was while in NY? Or is there something else I'm missing? Because right now it looks like I have a lot of tax owed to NY even though all of it was taxable to MA.
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Feb 10, 2014 03:42
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edit: I originally posted here knowing almost nothing about the US tax return process, but I've done a fair bit more reading and now I think I know enough to get started. I've rewritten my original post to reflect this. I have some questions about how to get started filing a US tax return for a US citizen living in the UK. This is not for me, but for my girlfriend, who has dual US/EU nationality. She is planning on doing her own research as well, but I started looking into the process, merely for curiosity's sake. Here's her current situation: Dual US/EU nationality This is her first time filing. Living and working in the UK, full-time for a single employer. Tax, national insurance payments, private pension payments, are all deducted from her paycheck. She has UK and EU savings accounts, with taxes automatically deducted from interest income No student loans, UK/EU or US She has a private UK retirement fund, with contributions being deducted from her paycheck, and matched by her employer, in addition to making national insurance contributions (UK public pension) No other investments or savings Questions: 1. Can she file online/e-file? Most of the free e-filing I've seen don't seem to handle citizens living abroad very well. Are there any recommendations for services or software (including potentially non-free) that would help the process? Or would that be overkill for her situation? In the UK, the HMRC (our IRS) runs their own on-line filing service, which is very easy to use for individuals, and people only require tax software if their affairs are significantly complex. The concept of having such a variety of 3rd party filing services for individuals is pretty alien to me. 2. Will she need to file state taxes? She last lived in the US nearly 10 years ago, and only for a couple of years. 3. What forms will she need? From my research, it looks like forms 1040 and 2555 will get her started. Anything else she might need? 4. I understand that the US tax year is based on the calendar year, but the UK tax year runs from April until March, so all tax statements are dated this way. Would it be worth filing to adjust her tax year to match the UK one, which would allow her to more easily import information from her UK tax statements, rather than adjusting for the calendar year? Or is it too much of a hassle? 5. Should I post this instead in the Dual Citizenship and Taxes (US/UK) thread? I'm not sure if that thread is even still active. She will be filing the return herself, and also doing her own research, but as she is not a goon, I figure I could also ask here to see if anyone does have any additional info or help. Thank you very much for any advice or guidance, this sub-forum as a whole has recently become a favourite of mine to browse as it is full of very useful advice. londonmoose fucked around with this message at 16:32 on Feb 10, 2014 |
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Feb 10, 2014 14:48
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morrisirrom posted:Received a 1099-C for the short sale of my house in Maryland in March 2013. However we had moved to North Carolina in June of 2012 with the sale of the house pending. It took 7 months to close the short sale. I know I am good on the Federal side since they extended the debt relief act through 2013. I know that North Carolina did not extend that portion of the debt relief act (thanks McRory). Our only source of income is from North Carolina currently. From what I have read Maryland still considers it our primary residence since they have a house sale exception and we lived in the house for 5 years consecutively. While in North Carolina we unofficially rented from my parents and did not update our drivers licenses until after the sale. My question is does North Carolina get to claim the debt relief as income or does that get filed in Maryland as a non-resident? If it was acquisition debt it goes on Form 982 (read the instructions) and most states (I'm on west coast, so you'll need to read your state rules) follow the feds on this matter.
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Feb 10, 2014 18:09
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I converted my Roth 401k into a Roth IRA, and according to the 1099 I got, I have to pay tax on all the gains it made while in the 401k. Is this correct or did I/someone do something wrong in the conversion/reporting? Possibly related, can a 1099 from a rollover have two alpha distribution codes at once? The two I have (B and G) seem at odds: B: Use Code B for a distribution from a designated Roth account. G: Use Code G for a direct rollover from a qualified plan, a section 403(b) plan or a governmental section 457(b) plan to an eligible retirement plan (another qualified plan, a section 403(b) plan, a governmental section 457(b) plan, or an IRA) Xenoborg fucked around with this message at 19:49 on Feb 10, 2014 |
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Feb 10, 2014 19:17
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Xenoborg posted:I converted my Roth 401k into a Roth IRA, and according to the 1099 I got, I have to pay tax on all the gains it made while in the 401k. Is this correct or did I/someone do something wrong in the conversion/reporting? None of the rollover should be taxable since you went Roth to Roth. However, if your employer matched any of your contributions those would go into a pre-tax account and would either need to be rolled over separately into another pre-tax account, or it would be taxed as a conversion.
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Feb 10, 2014 20:09
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furushotakeru posted:None of the rollover should be taxable since you went Roth to Roth. However, if your employer matched any of your contributions those would go into a pre-tax account and would either need to be rolled over separately into another pre-tax account, or it would be taxed as a conversion. My company had no vesting for three years so no matches. A possible aberration is that I rolled over both my traditional 401k and Roth 401k together into an IRA, which was then converted to a Roth IRA. I did this because the trustee to trustee transfer only had the option to send both to a single account. edit: I just spoke with a friend whos a CPA and he thinks that the trustee that sent out the rollover made a mistake on the 1099, and that I should just list the taxable amount as 0 on my taxes. I wouldn't be that surprised if they made a mistake since they already had to send out corrected W2 for a mistake in HSA reporting. Xenoborg fucked around with this message at 20:35 on Feb 10, 2014 |
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Feb 10, 2014 20:20
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Xenoborg posted:My company had no vesting for three years so no matches. A possible aberration is that I rolled over both my traditional 401k and Roth 401k together into an IRA, which was then converted to a Roth IRA. I did this because the trustee to trustee transfer only had the option to send both to a single account. Not sure I'd agree with that. I'd probably prepare Form 8606 http://www.irs.gov/pub/irs-pdf/f8606.pdf With your 2013 return. Rolling the roth and regular 401(k) together into the same IRA is going to create headaches for you, unless you converted the whole IRA out in 2013 to a roth, at which point it should "wash out."
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Feb 10, 2014 21:10
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AbbiTheDog posted:Not sure I'd agree with that. I'd probably prepare Form 8606 I did convert the whole thing to a Roth. I was using H&R Block's free online version, and the error I'm getting when I enter in my 1099 is "Code G in box 7 indicates a direct transfer; therefore, box 2a should be zero. If there is an entry greater than zero in box 2a, please verify the code entered." Doing it by hand, the rollover from both 401k into a traditional IRA is one event, reported on line 16. The conversion from traditional IRA to Roth IRA is another separate event, reported on line 15. My form 8606 for line 15 looks fine, and I think is irrelevant to my problem. The question is the 1099 from the sending trustee saying I should have a taxable amount on line 16b, and I don't understand why. The CPA's informal advice was to just enter 0 there. The difference in my tax bill will be basically nothing so I'll err on the side of overpaying, I just want to be sure this doesn't happen again in the future. edit: H&R Block won't let me Efile with what it says is an error though, which is annoying. Xenoborg fucked around with this message at 02:58 on Feb 11, 2014 |
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Feb 10, 2014 23:27
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Xenoborg posted:I did convert the whole thing to a Roth. Split the 1099 input to two items. One roth, one regular IRA. The IRS computers are not that specific, they tie out line totals, not individual items.
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Feb 10, 2014 23:35
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AbbiTheDog posted:Split the 1099 input to two items. One roth, one regular IRA. The IRS computers are not that specific, they tie out line totals, not individual items. I have two 1099s, and two entries for them. The 1099 for the traditional 401k to traditional IRA rollover has code "G" and no taxable income as expected. The 1099 for the Roth 401k to traditional IRA rollover has code "BG" and does have taxable income, which H&R reports as impossible and seems wrong to me as well. The taxable income is the same amount as the gains the account made over the amount contributed, which can't be a coincidence.
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Feb 10, 2014 23:47
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I feel like I'm taking crazy pills here. I'm helping my sister-in-law with her taxes again this year, and she has to file a non-resident return for Rhode Island. Since she earned income in both RI and MA, she must complete 1040 Sch 2. There are two columns, but I don't anything that would lead me to believe you do anything to one column that you wouldn't do to the other. Here's the H&R Block snippet of this from when I used the software last year. Why did the software not put the Federal AGI in the top of both columns when the instructions appear to say to do so?
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Feb 11, 2014 01:04
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Xenoborg posted:I have two 1099s, and two entries for them. I don't use that software, but I'm leaning towards the Form 8606 input might be your issue.
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Feb 11, 2014 01:38
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londonmoose posted:edit: I originally posted here knowing almost nothing about the US tax return process, but I've done a fair bit more reading and now I think I know enough to get started. I've rewritten my original post to reflect this. 1. There are free fillable forms on the IRS website that you may use to e-file if you do not want to pay someone to prepare for you. http://www.irs.gov/uac/Free-File:-Do-Your-Federal-Taxes-for-Free. Otherwise, I think the efile services are all more or less the same. Another option would be an actual accountant. 2. No; probably not, unless she managed to earn income sourced in a state that requires non-residents to file. Why is this her first year filing? Is this her first job? 3. 1040 is the correct form. 2555 for the FEIE. If she needs to take tax credits for taxes paid in the UK, she will need form 1116. Whether she will need any other schedules will depend on her deductions/credits. Read the instructions to the 1040. 4. Use the calendar year. The UK information will need to be adjusted to a calendar year basis. 5. I'm pretty sure that thread is abandoned. I'll repost one of my posts from that thread, as the information will also apply to your girlfriend: quote:Well, from the U.S. side, its essentially the same. You are probably a tax resident of the U.K., but even if you're tax resident in another E.U. country the requirements don't really change. For 2013, you may exclude up to $97,600 of wages under the foreign earned income exclusion. If you earn more, you will probably qualify for credits against U.S. tax for taxes paid in the U.K. or in your country of tax residence. You may also qualify for certain housing cost exclusions or deductions.
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Feb 11, 2014 01:43
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AbbiTheDog posted:I don't use that software, but I'm leaning towards the Form 8606 input might be your issue. Form 8606 address the conversion of the traditional IRA to a Roth IRA and outputs to line 15, IRA distributions, of form 1040. My problem is with a form 1099 and its output to line 16, Pensions and annuities. I'm not using any software at this point, just looking at the forms directly.
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Feb 11, 2014 02:57
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How does the taxing of retirement (401k) withdrawals/disbursements work if you retire in a foreign country and give up your citizenship?
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Feb 11, 2014 03:58
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Rurutia posted:How does the taxing of retirement (401k) withdrawals/disbursements work if you retire in a foreign country and give up your citizenship? Your 401(K) withdrawals will always be taxable no matter what. I have never dealt with someone giving up citizenship, but I did handle someone giving up their green card the other year and part of the process was them having to sign off that the US retains full rights to tax distributions from US retirement accounts and that no income tax treaties or other laws that might suggest otherwise apply. This makes sense since the money going into those accounts was earned in the US and was tax deferred. However, the early withdrawal penalties no longer apply after you give up your green card, so you can take the money out any time you wish.
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Feb 11, 2014 08:20
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PatMarshall posted:1. There are free fillable forms on the IRS website that you may use to e-file if you do not want to pay someone to prepare for you. http://www.irs.gov/uac/Free-File:-Do-Your-Federal-Taxes-for-Free. Otherwise, I think the efile services are all more or less the same. Another option would be an actual accountant. This is really useful, thank you very much! Yes, 2013 was her first year earning above the filing threshold. I'm assuming once she's done it once, it will get a lot easier to file from then on. I'm sure she's got enough info now to get her started, but if we have any more specific questions, I'll come back to this thread. Cheers!
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Feb 11, 2014 08:27
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I just spoke with the sending trustee of my 401k rollover, and they said they have no ability to split the traditional and Roth parts and had to send them as a single transfer. As a result I'm unsure on how I was supposed to have done the rollover in the first place, having them send the rollover directly into my Roth IRA I guess? The trustee also claims that the 1099 was correct and there is nothing they can do to change things now. I still don't get why moving money from a post tax account into a pre tax account means you have to pay tax on it again, but whatever this is too much of a headache for too little money and I'll just pay it.
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Feb 11, 2014 17:27
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Question about digital versus paper documents, pre-filing: I've scanned, encrypted, and double-backed-up all the paper tax forms I've received so far (W2 and 1099-INT). I haven't filed yet. Do I need to keep the paper copies at all, or are the scans good enough? I don't like keeping sensitive documents around for too long. Last year was the first year I filed my own (fairly simple) taxes. I did it electronically with TaxAct. I think I recall not needing to send the little physical W2 stubs, but I'm not 100% sure if I remember right, and wanted to ask. I live in PA, if that's relevant.
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Feb 11, 2014 18:21
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alnilam posted:Question about digital versus paper documents, pre-filing: Scanned copies are fine as long as they are legible. I don't keep paper anything for myself or my clients.
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Feb 11, 2014 19:22
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That reminds me. I filed my taxes online on February 1, then received a late 1098-E (I didn't realize I had paid any interest on my student loans or I would have waited). Today I mailed the 1040-X, but I didn't think to actually include the 1098-E because (a) I've always done things online and never mailed anything and (b) it was just a form on the loan agency's website anyway. Did I screw it up?
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Feb 11, 2014 20:02
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So last year (2013) I only worked like two weeks. I got married in December, and recently got a job (a year after I lost my old one" We filled our taxes a week or so ago, and are expecting it back this week. We filled jointly. Today I got my w2 from the old job, saying I made a whopping $230. When we filed, I said I didn't make anything, cause I forgot I worked a bit. What are my options?
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Feb 11, 2014 20:09
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SurgicalOntologist posted:That reminds me. I filed my taxes online on February 1, then received a late 1098-E (I didn't realize I had paid any interest on my student loans or I would have waited). Today I mailed the 1040-X, but I didn't think to actually include the 1098-E because (a) I've always done things online and never mailed anything and (b) it was just a form on the loan agency's website anyway. It wouldn't have hurt to include it, but it isn't strictly necessary. The IRS only requires copies of forms that show federal withholding be sent in with a paper return.
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Feb 11, 2014 20:21
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Deep Winter posted:So last year (2013) I only worked like two weeks. I got married in December, and recently got a job (a year after I lost my old one" You can file a corrected 1040 to include it, but if you owe anything you could also just wait for the IRS to send you a matching notice which will say "you failed to include this W2, you owe us $35" and mail them a check. Personally it would bother me not to have it corrected but with that low amount of money it is really not a big deal because you likely had withholding already so you either a little overpaid or slightly underpaid.
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Feb 11, 2014 23:28
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furushotakeru posted:Scanned copies are fine as long as they are legible. I don't keep paper anything for myself or my clients. I keep signed copies of the efile forms and engagement letters, and our internal guide sheets. Rest is scanned.
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Feb 11, 2014 23:59
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Dead Pressed posted:Okay, I confused myself reading some stuff online and am looking for clarification. Cross post from investing thread...prob more appropriate here.
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Feb 12, 2014 02:45
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AbbiTheDog posted:I keep signed copies of the efile forms and engagement letters, and our internal guide sheets. Rest is scanned. What a luddite 
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Feb 12, 2014 07:37
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Thanks for the information earlier! My wife co-signed for a car loan for a then friend. Said friend then defaulted without notifying us and by the time we started getting copies of the repossession notice we couldn't get a hold of her to take over payments and take control of the car. Car ends up repossessed. We are then pursued by a collection agent since they cannot get a hold of the other girl. We try to work through it reasonably but they do some inappropriate stuff and we end up taking them to court and winning, paying a lot less. We think it's done. Today we find out the amount we didn't pay is now considered forgiven debt and the collection agent files a 1099-C for a past year's taxes. The amount they "forgave" was the full amount of the loan. When we talked to the collection company they said they filed the full amount for both parties and said "it's up to the IRS to figure out who owes how much." The IRS basically told me they don't care and only work off of what the 1099-C says. We've repeatedly tried to get copies of the original loan contract or the 1099-C filed, but so far neither the lender nor the collection agent has given us anything, and the IRS (while sympathetic) is apparently incapable of doing anything. My questions are: 1) What kind of person would I even talk to about this? I realize it's complicated enough that I should work with a professional but the CPAs and other Tax groups I've called locally have at best said they might be able to maybe do something. 2) If the debt forgiven was 5,000 wouldn't they need to assign a total of 5,000 among all issues 1099-Cs? 3) I thought a co-signer was only liable for covering the loan if it went into default, not actually considered to be benefiting from the loan. (I've seen arguments for and against this but it comes down to the contract which we can't obtain.) We got a certified letter today and apparently have until May to file any contest to the adjusted taxes.
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Feb 12, 2014 16:31
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More of a legal question, but what were the terms of your court case. I've sued some collection agencies before due to illegal tactics, but that money wasn't taxable. If they reduced the amount of debt (forgive) then that can come on the 1099-C, but if they had to reduce the amount based on a judgement (your award went to repayment), then that amount is not techinically considered "forgiven" and should not be on the 1099-c. Your proof should be the court disposition documents. They should spell out your settlement, or whatever the conclusion was.
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Feb 12, 2014 16:36
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The terms essentially came down to the collection company had to pay some money to us, and then agreed to a settlement out of court on the remaining balance. Basically they paid us for the court case and agreed to an amount roughly even to what they lost in court which left about $5,000 of the original debt unpaid, so there is a forgiveness of debt that actually occurred. I just have no idea why both my wife and the main signatory got a 1099C for the full amount. The collection company says it's standard practice, the IRS says it's double billing but they can't do anything to change it, and I have no idea how to formally contest this since I can't get any of the documentation.
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Feb 12, 2014 17:36
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Mulloy posted:The terms essentially came down to the collection company had to pay some money to us, and then agreed to a settlement out of court on the remaining balance. Basically they paid us for the court case and agreed to an amount roughly even to what they lost in court which left about $5,000 of the original debt unpaid, so there is a forgiveness of debt that actually occurred. I just have no idea why both my wife and the main signatory got a 1099C for the full amount. The collection company says it's standard practice, the IRS says it's double billing but they can't do anything to change it, and I have no idea how to formally contest this since I can't get any of the documentation. Might not be relevent, but check out this article: http://consumerist.com/2013/04/25/loan-co-signers-should-not-be-on-the-hook-with-the-irs-if-the-debt-is-forgiven/ that references this link: http://www.law.cornell.edu/cfr/text/26/1.6050P-1 Implying that co-signers to loans shouldn't be getting a 1099-c. quote:(7) Guarantors and sureties. Solely for purposes of the reporting requirements of this section, a guarantor is not a debtor. Thus, in the case of guaranteed indebtedness, reporting under this section is not required with respect to a guarantor, whether or not there has been a default and demand for payment made upon the guarantor. IANAL, but the quote in the article states that a co-borrower is not a debtor, but a guarantor, and as such, shouldn't get a 1099-c.
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Feb 12, 2014 18:23
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LorneReams posted:
Yeah, I just need to get a copy of the contract to prove this. Which I can't. And I have no idea to compel the lender to fork it over other than calling once a week begging and pleading with managers. I don't even know what kind of legal person to talk to about making it official that they denied giving it to me so I can send that to the IRS.
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Feb 12, 2014 18:29
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Hoping someone can help me wrap my head around this. Scenario: Wife and I moved for her job last year and were provided moving assistance from her company of $9000. As part of the move, the company paid "tax assistance" on that sum. So I am looking at the sheet provided by Cartus to explain what was paid to whom and it shows the $9000 paid to us and then has a breakdown of the $3560 paid to Federal Income Tax, FICA - OASDI, FICA Medicare and State. At this point, I understand it. However, then it shows $12,560 will be add on her W2 as wages. Why would that be? The $3560 her employer paid to tax agencies is considered income for her and is then taxed again? Why would it not only be the $9000 which is added as wages? Is this correct?
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Feb 12, 2014 21:27
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