Follow up...not good The employee with the excess contribution due to two jobs was told by the plan administrator that they can't help him and that he needs to contact his employer. His employer sai...
See more...
Follow up...not good The employee with the excess contribution due to two jobs was told by the plan administrator that they can't help him and that he needs to contact his employer. His employer said they can't help. My advise to him is to call Fidelity back and get another rep who is willing to put some traction into resolving his issue. If he can't get it resolved by the 4/15 deadline it looks like a double taxable situation on the excess. And I thought I had this issue solved.😣
Thank you! If the excess deferrals are not corrected timely: The excess amount is taxable to you in the year you made the contributions. That is the big question I have, how to report the excess...
See more...
Thank you! If the excess deferrals are not corrected timely: The excess amount is taxable to you in the year you made the contributions. That is the big question I have, how to report the excess distribution on the 2023 tax return if not timely? The client is contacting the plan admin for the corrective distribution but that form won't appear until 2025. I would think that is a timely correction (if it happens) and I would file the return as is and then report the 2024 1099-R with the correction next year? A corrected W-2 is not an option...that is a quote from the employer. I will reseach the links once I get caught up. Thank you.
Oh shoot, I forgot that is a 2024 distribution. I'm going to go with the line 1h and a 1099r code8 and double taxation with but avoid pentaly for over contribution. The amount is approx 5K. This is ...
See more...
Oh shoot, I forgot that is a 2024 distribution. I'm going to go with the line 1h and a 1099r code8 and double taxation with but avoid pentaly for over contribution. The amount is approx 5K. This is really messing with my productivity, I can't imagine WWJD.....What would Jim do with the disruption to his production
Going to plan on an extension but pushing client so we can file by the deadline. TP is contacting Plan administrator B to withdraw excess contributions and get a 1099-R with a code 8. If that doesn't...
See more...
Going to plan on an extension but pushing client so we can file by the deadline. TP is contacting Plan administrator B to withdraw excess contributions and get a 1099-R with a code 8. If that doesn't happen in a timely manner I will attemp the fake 1099-R, just not sure how to create it, I do who the administrator is and the EIN, just doesn't see right. I have had excess contribution issues before, but with one employer and plan was considered discrimantory for highly compensated employees and the administrator issued 1099-R and the amount us to flow right to line 1. Putting this aside again, thank you all for the input.
I really want to avoid an extension since this TP has 6 state returns. I'm trying to avoid the "fake1099R" so drilling down on line 1h brings me return of contributions and requires a 1099-R and c...
See more...
I really want to avoid an extension since this TP has 6 state returns. I'm trying to avoid the "fake1099R" so drilling down on line 1h brings me return of contributions and requires a 1099-R and code 8 as @dascpa posted. I'm considering other earned income but I really don't feel that route. I'm going to sleep on it...so tired today. Thank you for the late evining response.@rbynaker & @dascpa Who would issue the "fake" 1099-R, the employer or the administrator if I go that route so I can efile the return on time?
TP had 2 employers and contributed excess 401-K contributions. Too late to get a corrected W-2 c plus the administrators said that they withheld correctly. I have read the excesss 401-k contribution...
See more...
TP had 2 employers and contributed excess 401-K contributions. Too late to get a corrected W-2 c plus the administrators said that they withheld correctly. I have read the excesss 401-k contribution discussions and I still can't figure out how to add the excess contributions to his wages for 2023. The corrective distributions will have to be initiated by the TP at a later date. Bottom line: How do I add the excess to Wages? Thank you
Excerpt from VA instructions. Spouses of Military Personnel: For Taxable Year 2018 and after, the Servicemember Civil Relief Act (SCRA), as amended by Veterans Benefits and Transition Act, provide...
See more...
Excerpt from VA instructions. Spouses of Military Personnel: For Taxable Year 2018 and after, the Servicemember Civil Relief Act (SCRA), as amended by Veterans Benefits and Transition Act, provides that the spouse of a servicemember may to elect to use the same residence for state tax purposes as that of the servicemember. Under the SCRA, an electing spouse of a military servicemember may be exempt from Virginia income tax on wages if the servicemember is present in Virginia in compliance with military orders. More information is available in Tax Bulletin 19-2 available at www.tax.virginia.gov. There should be a spot on the VA information worksheet to indicate that the spouse elects to choose the same residency has the Military TP. There shoudl also be a question for the TP. The question is on the states that I have filed for military AZ, AL & KY with all the TP electing to be resident of TN where they firs entered the military or changed to be a resident of the state.
Piggy backing onto @sjrcpa answer. Spouse can claim same state of residence as military TP and will not pay VA taxes on wages earned in VA, The state form should have an election box for the MSRRA e...
See more...
Piggy backing onto @sjrcpa answer. Spouse can claim same state of residence as military TP and will not pay VA taxes on wages earned in VA, The state form should have an election box for the MSRRA election
I missed the word ..heat pump. @TaxGuyBill has the answer, a heat pump is one unit, just runs the opposit way depending on the temparture differential you ask for at the thermostat.
I have a few clients who send their tax documents via USPS without any forwarning, or too even check that I am alive to prepare their return! I just shake my head when I see that in the mail box.