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I've been looking ahead at my taxes for 2012 and I'm a little confused about deductions for my HSA contributions, and the maximum amount I can contribute without paying a penalty. Setup: Normal max is $3100 for 2012. Became enrolled in an eligible plan on January 4, 2012, so I'm pretty sure my max is now 11/12th of that, $2841. Contributions: My employer put in $1000. I put in $1000 (50 weeks at $20/week) as pre-tax payroll deductions. I put in $840 from my checking account. My questions: 1) Does my employers contribution count against my yearly limit, am I at it or can I put another $1000 in? 2) On form 1040 line 25, by way of form 8889, I get $1840 as my deduction. The problem is that it looks like part of that $1840 has already been deducted by way of payroll reduction and lowered my wages on my W-2.
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Nov 21, 2012 20:56
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furushotakeru posted:On the 8889 form it gives you instructions to omit these amounts from the amount to be deducted. There are separate lines to account for these other contributions. I'm not seeing this on either the form or the instructions. Line 2 is where you put your contribution in and lines 3-11 are computing your maximum. Line 2's instructions don't say anything about pre or post tax contributions: quote:Include on line 2 only those amounts
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Nov 21, 2012 22:28
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furushotakeru posted:The $1000 is through an employers cafeteria plan. They call them that even though it doesn't have anything to do with food. Oh, it all works out now. I read the Wikipedia page on cafeteria plans and that didn't really sound like what we had. I'll check with HR next Monday and confirm. Thanks furushotakeru.
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Nov 21, 2012 22:51
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Up to what point can congress change the tax rates for 2013? If they don't decide something until after the new year, is 2013 already set, or can the change it anytime?
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Dec 14, 2012 17:23
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AbbiTheDog posted:Congress has the authority to make tax law changes retroactive. So could they even change 2012's taxes still?
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Dec 14, 2012 18:36
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Whats this? 401k, SS, and Medicare should all be separate line items on your paycheck, and have no interaction with each other. SS and medicare taxes are based only on what you actual earned income is not what your taxable income is. You pay the same amount for them no matter what you do with your 401k.
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Dec 15, 2012 08:05
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sapmagic posted:Er, my understanding is that you have to pay SS/Medicare taxes on the employee deferral contribution to your 401(k). So if I choose to defer $17,000 for 2012, then roughly* $960.50 of that gets withheld for SS/Medicare, and only $16039.50 makes it into my 401(k) account. You have to pay SS and Medicare taxes on all your income regardless of how much you put into 401k or any other federal tax advantaged account, its just a flat percentage of your total income (there is a break on SS at high incomes). Either way, it gets taken out of your paycheck before anything else. The amount on the line for 401k should be exactly what goes into your 401k account, are these not matching up? Here is an example paystub, does your add things up differently? http://www.adp.com/mypaycheck/04-1903-085-Paystatement.pdf
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Dec 15, 2012 17:51
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I just look at a few, and while not outright terrible, they seems to mostly just be mimicking form 1040 anyway. I don't really see the point compared to the actual form, with its instructions. At least one didn't seem to have an option to take the standard deduction so that might be throwing things off. If you want to quickly estimate the best way is probably just to quickly fill out a 1040, maybe with last years as reference. Xenoborg fucked around with this message at 01:48 on Dec 19, 2012 |
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Dec 19, 2012 01:43
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I just found out I'm being laid off at the end of year, sucks, but i'll get over it. The issue I have is that I have already sent in my check for my 5.5k deposit for my 2013 Roth IRA. I probably will, but obviously can no longer be sure I'll make the minimum 5.5k in 2013 to be eligible for an IRA. Since it was just send yesterday, it hasn't arrived yet, and hasn't bought anything. I can call the whole thing off if need be and redirect it to a taxable account. My question is: If I let it go into the Roth IRA, and I don't get a new job by the end of 2013, what are the tax implications? Can I just take it back out in December if i don't get a job?
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Dec 20, 2012 21:46
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I would like a clarification of the circumstances regarding the underpayment penalty. In the hypothetical situation below, I convert my pre-tax 401k into a post tax Roth IRA and must pay ~$4000 more in tax because of it. I don't want to take withholding out of the transfer so there is more tax free growth in the long term. In the short term I don't want to burn my emergency fund if I don't need to, but I do set my exemptions to zero so I withhold more from my paycheck. 2012 tax: $3500 2012 withholding: $3600 2013 tax: $7500 2013 withholding: $4500 The form 2210 instructions say the below. Point 2) makes me think that I would be clear of extra fees in this case. code:
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Jan 29, 2013 20:36
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Oops, at the start of this year I misread the conditions for an exception to the underpayment penalty and am facing a fee for 2013 and want to see if there is anything I can do about it while its still 2013. The basics (super round numbers) I lost my job in January and converted my 401k since it would be a low income year and I could do the conversion in the 10 and 15% marginal brackets. Because of a mistake reading I thought I didn't need to pay tax on the conversion until I did my 2013 taxes. I have 3k taxable W2 income and 23k taxable 401k to Roth income all in January 2013. I have about 400 withheld from the paycheck, but did not make an estimated payment for the conversion. All other income and deductions add up to about 1k more AGI. I will owe about 1.7k on my return for 2013. Running through form 2210 Short Method it looks like I will pay a penalty of about $45 if I did nothing but wait until February and filed my taxes like normal. It doesn't seem like I can use the Regular method or Scheduled 1A since I neither made the estimated payment in the correct quarter nor made equal estimated payments in all quarters. I just want to check if there is anything I can do now to avoid the penalty like sending them a late estimated payment. edit: I should reiterate that I had always planned on my tax bill for 2013 to be about 1.7k and have that money ready already, this is just about the underpayment fee. Xenoborg fucked around with this message at 00:17 on Oct 25, 2013 |
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Oct 25, 2013 00:15
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I'm still considering what to do with my Roth IRA that I have over funded by 3k due to low income this year. From Form 5329 it looks like I can pay a 6% fee to leave it in. Some quick math in excel assuming 15% marginal tax and 2% growth shows that leaving it in and eating the fee is better in the long run after only 10 years. With more aggressive growth or higher marginal tax the break point happens even faster. Am I missing something here? Because the implication here is that even if you are not eligible for IRA contributions due to lack of W2 income it is still worth it to do so if you are able.
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Oct 28, 2013 20:14
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Kilty Monroe posted:It looks like what you are missing is that your 3k excess this year will also end up on line 9 of form 5329 next year, and will have to be balanced out on line 10 by contributing 3k less than next year's max to avoid paying the 6% penalty again. Essentially, your excess contribution counts towards next year's maximum and you pay the 6% penalty. Great catch, you just saved me a huge headache.
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Oct 29, 2013 08:55
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In 2013 I lost my old job and rolled my 401k and Roth 401k into a Roth IRA. I received two Form 1099-R's one for the regular 401k and one for the Roth. H&R Block is kicking out my 1099-R for the Roth saying that the numbers are impossible. Specifically that the box 7 distribution code: BG, and the the box 2a Taxable amount:a non-zero value, don't mix. I'm not sure why there should be a taxable amount at all in a Roth 401k to Roth IRA rollover, but the amount is equal to the difference between my contributions and thier value when it was sold off. Did I do something wrong in the rollover, did they? I'm looking for more information before I go in and ask at the job I haven't been at for over a year. If
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Feb 5, 2014 20:27
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Xenoborg posted:H&R Block is kicking out my 1099-R for the Roth saying that the numbers are impossible. Doing some research on this I found the exact process used was a rollover from the traditional and Roth 401k into a traditional IRA, which was then converted to a Roth. Did this mess something up and is why all the realized gains from the Roth 401k are showing up as taxable? I don't really care about paying more, its like $15 more in tax, but I want to make sure its not a mistake and that I report it correctly.
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Feb 7, 2014 16:45
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It sounds like your deductions won't be more than your standard deduction anyway, so just use that.
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Feb 8, 2014 05:38
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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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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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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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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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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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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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It's not at all unusual for your state AGI (and thus tax burden compared to withholding) to be much higher than your federal AGI. There are tons of deductions that only effect your federal AGI. For example, I'm not sure about NY, but in some states 401k contributions are still subject to tax.
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Mar 2, 2014 04:47
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Can you claim exemption from state tax the first year you live/have income in that state? Not sure if I technically had zero tax or just N/A for previous year. I just started working in Oklahoma and they have a 5k a year credit for aerospace engineers moving to and working in the state. My state tax would only come to about half the amount of the credit, so I'm confident any withholding will be refunded. Not a huge deal either way, but it would be nice to have that extra 150 a month now rather than in a lump sum a year from now.
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Jul 21, 2015 03:18
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AbbiTheDog posted:You can have your payroll department change your OK withholding only (you can fill out a "state only" w-4). I have the form. I just want to make sure that I qualify for checking that box, since I wasn't in this state last year. code:
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Jul 21, 2015 16:40
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Xenoborg posted:Can you claim exemption from state tax the first year you live/have income in that state? Not sure if I technically had zero tax or just N/A for previous year. I just started working in Oklahoma and they have a 5k a year credit for aerospace engineers moving to and working in the state. My state tax would only come to about half the amount of the credit, so I'm confident any withholding will be refunded. Not a huge deal either way, but it would be nice to have that extra 150 a month now rather than in a lump sum a year from now. Turns out Oklahoma wont let me claim exempt without also doing it on a Federal level. You win this time IRS.
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Jul 24, 2015 23:43
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I'm pre-doing my taxes for 2015 and wanted to get a sanity check on what my plan is. I think I have things right, I just want to make sure. The plan is: I will have an AIG of $25000 after all adjustments/deductions. So I'm in the 15% bracket, with $12450 space left in it. I sell stock so that I have $12450 of gains realized. I pay no long term capital gains since it all falls in the 15% bracket. If I go a little over it doesn't mess everything up though right? I only get taxed the normal 15% LTCG for being in the 25% income tax bracket on the amount over $37450 AGI? I know regular income tax is progressive like this, but want to make sure its the same for capital gains. fake edit: I'm just rebuying the same stock the next day by the way. This is just to re basis it and save ~$1800 in the process.
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Nov 5, 2015 22:07
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AbbiTheDog posted:A) Watch for state taxes State taxes should be fine as I have a 5k credit that I wont be able to use up anyway. Insurance is from work so no issues there either. Thanks.
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Nov 6, 2015 01:47
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I get paid two weeks behind. The check I got on 12/31/2015 was for work on 12/4-12/17. I will be getting a check on 1/14/2016 for work done on 12/18-12/31. Only the first goes into my totals for 2015 right? I know I could wait a few weeks for my W2 and see, but I want to plan now.
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Jan 4, 2016 16:53
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I feel like I'm missing something with the withholding calculator at https://apps.irs.gov/app/withholdingcalculator/index.jsp. I thought I made a data entry mistake last year that lead to an underpayment of about $800, but now I think something else is messed up or I'm fundamentally misunderstanding the calculator somehow. Simplifying things to just whats on my paycheck, I've got 57500 income, 17250 401k, 2500 HSA. Putting these into the calculator it tells me to use "1" withholding allowance which is $158 every 2 weeks. My paycheck which came today with "1" withholding only took $138. Also, it tells me I'll have a tax bill of $3,650. With a taxable income of $31450 (57500-17259-2500-6300), I should expect a tax bill more like $4250 right? The IRS number seems to indicate a taxable income in the $27500 range 2 questions: 1) Why is the IRS withholding calculator 15% off from whats actually being withheld 2) Why is the IRS withholding calculator predicting a significantly lower tax bill than form 1040. The takeaway here for me might just be to do my planning on the actual 1040 instead of calculators and set withholding allowances at like 5 with a flat extra that I calculate. Xenoborg fucked around with this message at 04:55 on Jan 14, 2016 |
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Jan 14, 2016 04:51
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Ancillary Character posted:You forgot to subtract your personal exemption ($4000 for 2015, $4050 for 2016), unless you're someone's dependent and they're claiming your exemption, in which case, you didn't input that correctly into the withholding calculator. You're right I glossed over the exemption section of the 1040 thinking it didn't not apply, forgot about personal exemption. The calculator was taking it into account. There is still the lingering question of why a withholding of one produced a different amount on my paycheck and the calculator though. I can just fix that with a flat addition though.
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Jan 14, 2016 14:38
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If I know I won't have enough deductions to itemize, do I have to wait for things like my 1098 for mortgage interest to arrive before I file?
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Jan 23, 2016 15:49
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Anyone familar with H&R Block's filing of state returns? I have a form for a credit it says to attach, but I don't see any way to. Their help has so far been no help, but I'll try again not in the middle of the night.
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Jan 27, 2016 05:56
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Bah, Vanguard apparently sends out ETF 1099s over a month after its other ones so now I have to amend my taxes. I have to pay $142 more, but am more annoyed about having to physically mail them in.
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Feb 29, 2016 18:08
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Ethereal posted:Does anyone here have tips on the best way to calculate the number of ISOs to purchase to stay under the AMT crossover point? It seems like I basically have to figure out what our household income will be for the year, run through all the deductions we would take, and then calculate the spread of the FMV and strike price and see what pushes things over? Not for AMT, but to calculate how much cap gains I could get at 0% I make a rough copy of form 1040 in excel and played with the starting numbers. You could probably do the same thing with the AMT form.
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Jul 4, 2016 00:35
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Oops, I think I haven't been getting my foreign tax credit correctly applied for the past several years: For the last 3 years, my 1099-DIV from Vanguard has $20-$50 in the "Foreign Tax Paid (Box 6)" Column. I've input the 1099s into H&R Block including that amount. Shouldn't that amount then show up as a credit on From 1040 Line 48 "Foreign tax credit"?
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Jan 27, 2017 02:06
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So I was going to use Credit Karma, but they are missing it too, as well as one of my state credit I have no way to input. I'm thinking I should just use the IRS forms directly, I have a template from last year... Is there any way to e-file the forms myself, or do I have to mail them if I'm manually filling them out? freefilefillableforms.com is linked from irs.gov, but other than that looks and sounds super sketchy.
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Jan 27, 2017 02:54
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Are companies normally allowed to under withhold bonuses? My friend got 2 bonus in 2016: $2681 bonus, $129 federal withheld, or 4.8%. $14 withheld for OK state, or 0.4%. $7062 bonus, $707 federal withheld, or 10%. $215 withheld for OK state, or 3% Shes firmly in the 25% bracket and normally has around 14% withheld from her regular paychecks with 1 allowance. OK state has a pretty much flat 5% tax. I've got no idea where they might have gotten their withholding numbers from, but its a surprise $1,600 increase in taxes owed.
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Feb 4, 2017 02:51
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What form do I report income from a rollover from after tax 401k to Roth 401k? The rollover was in service and entirely within my 401k. I have a letter from my 401k company (not a 1099-R) telling me the converted amount and the taxable portion where it calls the taxable amount "ordinary income". edit: Found the related 1099-R buired in my HR website. I have a taxable amount in 2a and a distribution code of G. Form 5329 seems like it should be where this would go, but none of the categories sound right. Xenoborg fucked around with this message at 01:54 on Feb 12, 2017 |
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Feb 12, 2017 01:27
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State tax question, but you might be help anyway: Oklahoma gives a tax credit for aerospace engineers, per this form https://www.ok.gov/tax/documents/564-16.pdf The instructions for the form are : quote:Line 1. Enter $5,000 if you are in your first five years of employment in Oklahoma with a qualified employer. The credit is allowed each year for up to five taxable years. My question is about carrying forward the unused portion. Does it carry over until the end of your first 5 years because that the date the credit in general was established. Or does it carry over until the end of the first 10 years because that is 5 years after the date when the last set of the credit was established at the end of year 5?
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Feb 17, 2017 22:42
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