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I think they are actually using the W2 as proof of your withholding, not income.
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Oct 15, 2016 15:45
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I figured I'd wait for tax season to calm down before asking my question, but I've got an interesting one. Over the last few years, I received tax-free tuition benefits from my now ex-employer. The benefits did not appear as income on my W-2 and I did not use the tuition expenses as a deduction or credit on my taxes. However, I switched jobs recently, triggering a claw-back clause for some of the benefits which I am repaying with post-tax money. Can I go back and refile past years and take credit for the tuition expenses? Likely using the Lifetime Learning Credit.
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May 8, 2017 02:03
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Jan posted:Just to make sure I'm not doing a dumb mistake: If I don't have a 401k from my employer, and I am filing single, I can contribute 5500$ to my IRA for 2018 and deduct the full amount? Contributing non-deductibly to a traditional IRA and then converting to a Roth IRA is called a "Backdoor" Roth IRA. It's used to still get money into a Roth IRA if your income exceeds the Roth limit.
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Mar 26, 2019 05:37
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You could also increase withholding on any W2 income to cover what you think you'll owe.
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May 16, 2020 15:35
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Your basis is going to be almost nothing (14% of shares sold, so like 14 dollars?). So, assume roughly 10000 of long term capital gains. These are taxed at 0% if your total taxable income is less than 40400 (single filers). Not sure what happens if you end up over taxable income limit, but it all happens on the "Qualified Dividends and Capital Gain Worksheet" Edit: Didn't refresh first. If you think you'll have more income in the future, can sell more of the stock each year now (up to that 40k total income limit) to lock in 0% tax rate vs paying 15% later on Jobert fucked around with this message at 17:48 on Jan 21, 2022 |
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Jan 21, 2022 17:44
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Per Illinois state website on who must file: A part-year resident, you must file Form IL-1040 and Schedule NR, Nonresident and Part-Year Resident Computation of Illinois Tax, if:
My read on this is that, no, you do not need to file since no income was earned while living in Illinois (income is usually earned when paid) Source: https://www2.illinois.gov/rev/individuals/filingrequirements/Pages/default.aspx
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Feb 28, 2022 05:12
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Usually money in a traditional IRA is "pre-tax" money because it was rolled over from a 401k or a deduction was taken for the contribution. Converting that to Roth is a taxable event and the amount is treated as income. There can also be "post-tax" money in a traditional IRA which, if rolled over, wouldn't be income. Usually this would be for a backdoor Roth.
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May 20, 2022 23:01
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https://youtu.be/X-EWSTH_224
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Jan 17, 2023 12:42
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wyoak posted:I over contributed to a Roth IRA in 2022. I've kicked off the withdrawal process for the over contributed amount with Vanguard here in the last few days, will the 1099-R that's generated be for tax year 2022 (so I'll need to wait on it to finish filing), or would it be for 2023 and I'll use it next year? I can't find clear documentation on it, from things I've read it sounds like it's next year, but if that's the case I'm not sure how the IRS knows that I've withdrawn the extra contribution so it feels like they'd charge me for it Form 5329, line 23 is where you report excess Roth contributions. The instructions say to not include withdraws made by tax due date. Then, you should get a 1099-R next year with the code 8 in box 7 since the distribution was made in 2023.
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Mar 27, 2023 12:22
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1099-MISC was used for non employment income as well as other income not subject to SE tax until 2020 I think. These days you should be getting 1099-NEC which software will automatically put on Schedule C and Schedule SE. If you got a 1099-MISC in the past it should have been treated as above, but could have been put as Other Income which doesn't get SE taxed? As a W2 employee, the advice I've heard for evaluating 1099 job offers is to double your hourly wage to cover taxes/benefits/etc
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Jul 5, 2023 04:43
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Deviant posted:Not in the grand land of Florida, baybee! Property Tax or Sales Tax can count towards that deduction
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Jan 8, 2024 22:47
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Can you compare line by line the 1040 from last year to this year? If you have the same AGI, taxable income, and withholding; tax owed should be pretty much the same, if not a little less because of standard deduction increasing.
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Feb 6, 2024 22:50
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Xenoborg posted:Somewhere between 10% and 20% as non wage. By 20% you are almost certainly failing the tests for owning an underpayment penalty unless your wage income is also increasing rapidly year over year. On the new W4 form there is line 4c for just "Extra Withholding". Could you theoretically use that to withhold all W2 income?
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Mar 8, 2024 13:06
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| # ¿ May 12, 2024 08:58 |
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Do you have the 1099-R from the traditional IRA? It will have the total amount listed on 2a as taxable amount, but then will also have 2b "taxable amount not determined checked". So what did the preparer put on 1040 line 4a? That should have the total distribution and then 4b should be 0. Unless you had an existing balance in Traditional IRAs before the backdoor. That would create taxable income also but would be on form 8606.
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Mar 22, 2024 03:41
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