Comments on: Ask Me (Almost) Anything: Your Tax Questions

By: ARLnow.com

ARLnow.com — Thu, 07 Mar 2013 21:34:00 +0000

Thank you for a great discussion. We are closing the comments at this time.

By: rlgrohs

rlgrohs — Thu, 07 Mar 2013 21:30:00 +0000

yes because the entire amount was excluded from your taxable wages

By: Carmen

Carmen — Thu, 07 Mar 2013 21:26:00 +0000

Sorry this is long. I got a letter from a previous employer about an excess contribution to my 401k. Since I had already moved the 401k to another provider, I had to contact the new provider about the excess contribution. Part of the money had to be returned to me, part back to the previous employer. My new provider sent me a check for the total amount and I sent a certified check for the amount that was supposed to go back to the employer. Now I have a 1099-R for the total excess contribution amount and no one will send me anything saying I sent part of that back to tha previous employer. Will I just have go ahead taxes on the total amount, including the part sent back to previous employer?

By: rlgrohs

rlgrohs — Thu, 07 Mar 2013 21:23:00 +0000

You are surely welcome to try.

By: DIY taxes maybe

DIY taxes maybe — Thu, 07 Mar 2013 21:13:00 +0000

If your taxes are simple and you do not itemize nor own a business yes software will work. Good to have a human eye on the more advanced tax returns though. If done improperly it can cost you a lot in the long term.

By: DIY taxes

DIY taxes — Thu, 07 Mar 2013 21:04:00 +0000

Aren’t you just typing numbers into a software program? Can’t I do the same with turbotax and get the same result at less cost?

By: rlgrohs

rlgrohs — Thu, 07 Mar 2013 20:56:00 +0000

This is hard to answer without actually preparing the tax return or preparing a tax projection first. A powerful tax software can easily determine which filing status is most beneficial.

By: FedEx

FedEx — Thu, 07 Mar 2013 20:48:00 +0000

My husband makes about $700K per year, and I make around $120K per year (I fully fund 401k and pay for family insurance). We have always filed jointly as married. He pays the expenses for just about everything. With future tax rates going up so much, would it make sense for me to file 2013 taxes as married filing separately? We own a house together, and have 4 kids, rental property in a trust LLC, and lots of stock market investments (we invest similarly but separately). Will he still benefit from filing jointly with me? or can I take advantage of some of the Roth IRAs, etc… if I file separately next year without hurting his deductions?

By: rlgrohs

rlgrohs — Thu, 07 Mar 2013 20:42:00 +0000

You will not owe tax on converting a non-deductible IRA to a Roth.

By: Humbly22201

Humbly22201 — Thu, 07 Mar 2013 20:38:00 +0000

Yes, income is too high to directly contribute to a Roth. The ~$4,000 is the tax I think we would pay in 2013 for doing funding both and converting both in 2013 – 39.5% tax rate and paying for the taxes outside of the Roth. Just wondering that if we’re in our early 40s the payoff is there for the amount of taxes we’re paying now for the benefit.