All Debt management posts

Re: How or what can I do to lower my debts?

nelliskev — Tue, 06 May 2025 04:58:03 GMT

Use the debt stacking/debt snowballing method!

Re: medicare part b premium

VolvoGirl — Mon, 28 Apr 2025 18:45:33 GMT

To enter Medical expenses just start typing Medical in the search box at the top of your return and pick "medical expenses, sch a" from the drop down list. Then click on Jump To at the top of the list.

OR
Enter Medical under
Federal Taxes Tab or Personal (for H&B)
Deductions and Credits
Then scroll way down to Medical
Then Medical Expenses - click Start or Update

medicare part b premium

awilson0711 — Mon, 28 Apr 2025 18:40:36 GMT

where do I enter my 2024 medicare part b premiums not being deducted from SSA?

Re: Paying off debt

MindyB — Sat, 08 Mar 2025 15:24:32 GMT

If there are loans that are not yours and you know nothing about on your credit report, it sounds like you have had your identity stolen. You should file a police report and dispute the information with the credit bureaus.

As far as protecting your tax information, you can elect to receive an identity protection PIN(IP PIN). This is a six-digit number that prevents someone else from filing a tax return using your Social Security number.

Here is an article regarding the PIN you may find helpful: How do I get my 6-digit IP PIN?

Paying off debt

defusco66 — Sat, 08 Mar 2025 11:50:23 GMT

Identity theft has become a major concern I have more loans and credit cards in my name that i am not responsible for my credit score is in the 400s no one will ever offer me a loan or credit card to pay off my debt . I don’t know what to do about this situation and I never receive answers from anyone. Please advise me or help me in anyway possible please

Re: Using 401k funds to pay down debt, tax bracket concerns. R A. Miller

gxt1 — Wed, 16 Oct 2024 22:25:42 GMT

Age is a factor beyond just 59 1/2 for the no penalty on withdrawal. If you're drawing SS, or have Medicare, income thresholds apply to taxation on those

At least yours is not credit card debt with the associated incredibly high interest rates!!

Snce money market funds are currently paying about 4 1/2 to 4 3/4% your equity line is probably not costing you a bundle. There's a good chance your investments are doing better than what the interest rate on your credit line is. You would have to make that determination.

If you itemize and spent your home equity line on home improvements the interest may be tax deductible. If so then the loss of the tax deduction has to be considered into the equation.

On the chance you don't know, while the extra income may place you in a higher income tax bracket, it's only the taxable income that is above the bracket level that gets taxed at the rate.

As already said the big jump for married filing jointly is above 94,300. Any taxable income above that level breaches the 22% bracket (instead of 12% and lower below that) and stays there until you get above 201,050.

Here's the best Dave Ramsey part of me coming out and it's kind of dumb since I don't know your circumstances. I'm blue skying thoughts and none of them may apply to you.The things that come to my mind are;

Do you have enough cash to not get caught if something comes up. No reason to pay down the home equity line if you end up having to use a credit card in an emergency and carry a balance.

Do you have any debt with a higher interest rate than your equity line? Without knowing, any credit card debt would probably be a better first choice to pay down / off.

Is there anyway to increase free cash flow without drawing on the 401k.

I.E.

If there is any significant savings that is sitting in a brick and mortar bank? Unless it's one of the very few that actually pays some interest, moving money to get a actual return could be an option; but if you're talking a few thousand instead many thousands it won't make much of a difference.

Is there a reasonable life style change that might free up some cash (to apply to the credit line)? If push came to shove for me, I'd be dumping some of my Comcast services, though I will say I get super cheap cell phone service through them (a plan I'm grandfathered into). Even without push come to shove it's on my list to investigate alternatives.

Do you take advantage of an FSA if work offers it to you?. It has to be planned from a contribution vs. need standpoint but FSA dollars come out of a pay check tax free are used tax free.The contributions to the FSA account reduce your taxable income.

And that's the end of my thoughts, good luck and good planning!

Re: Using 401k funds to pay down debt, tax bracket concerns. R A. Miller

Opus 17 — Mon, 02 Sep 2024 00:50:19 GMT

@getToit11 wrote:

Thanks for your prompt reply to my query. One follow-up question: My wife & I file our taxes jointly. How do I determine our tax bracket so any extra home equity loan payments we make won't bump us into a higher tax bracket? Last question, I swear!

Thanks alot,

Tony

You can use this, although the numbers are slightly off because it uses 2023 calculations.

TaxCaster tax calculator

The tax brackets are here.

https://taxfoundation.org/data/all/federal/2024-tax-brackets/

For married filing jointly, your first major threshold is $94,000 of taxable income (after accounting for the standard or itemized deductions). It's 12% below that and 22% above that. After that you can go all the way up to $383,000 and pay either 22% or 24%, not that big a difference.

Just be aware that if you are under age 59-1/2, your minimum tax will be 22%, all the way to possibly 42% depending on your income and state tax rates. And you lose all the future growth potential. The only reason to even think about paying off a HELOC with 401k funds under age 59-1/2 is if your interest rate is higher than your investment returns. Even over age 59-1/2 where you won't pay the penalty, you still pay income tax, and it doesn't make sense to pay off the HELOC unless the interest rate is higher than your investment returns in the 401k.

Re: Using 401k funds to pay down debt, tax bracket concerns. R A. Miller

getToit11 — Mon, 26 Aug 2024 11:35:21 GMT

Thanks for your prompt reply to my query. One follow-up question: My wife & I file our taxes jointly. How do I determine our tax bracket so any extra home equity loan payments we make won't bump us into a higher tax bracket? Last question, I swear!

Thanks alot,

Tony

Re: Using 401k funds to pay down debt, tax bracket concerns. R A. Miller

xmasbaby0 — Fri, 23 Aug 2024 15:53:11 GMT

If you are younger than 59 1/2 you will be subject to a 10% early withdrawal penalty for using funds from your 401k, and you will pay ordinary income tax on that money as well---so yes, you may end up in a higher tax bracket, depending on how much money you take out of the retirement account. Using the money from a 401k to pay toward a home equity loan is not an exception to the early withdrawal penalty.

Using 401k funds to pay down debt, tax bracket concerns. R A. Miller

getToit11 — Wed, 11 Feb 2026 10:17:33 GMT

We want to use 401k funds to draw down a home equity line of credit balance. We're concerned that in doing so we will place ourselves in a higher tax bracket. Won't those 401k funds we withdraw to pay debts be counted as income, thus placing us in a higher tax bracket? Our current tax rate is 5.75 percent. Appreciate any advice you can offer.

Thanks,

Long-time Turbo Tax customer

Re: How or what can I do to lower my debts?

jenesis85 — Tue, 07 May 2024 12:09:34 GMT

Dealing with a complex situation, especially as a single mother. First, it's important to gather all the relevant information, including any paperwork or documentation regarding the debts. You may want to consult with a legal advisor or a debt counselor who can help you understand your rights and options. It's also crucial to address any discrepancies or misunderstandings, such as the vacuum purchase with your signature. Taking proactive steps to manage and address the debts, perhaps through negotiation or setting up a payment plan, can help alleviate some of the stress. Remember, you're not alone, and seeking support from professionals or trusted individuals can make a significant difference in navigating through these challenges.

Re: Refund

xmasbaby0 — Thu, 25 Apr 2024 15:24:48 GMT

Yes, they can. Any income tax refund can be seized if you owe delinquent child support.

https://www.irs.gov/uac/tax-refund-offsets-pay-unpaid-debts

IRS Treasury Offset Program Call Center at 1-800-304-3107

https://www.irs.gov/uac/tax-refund-offsets-pay-unpaid-debts

https://ttlc.intuit.com/community/refunds/help/what-is-a-refund-offset/00/26301

Reduced Refund https://www.irs.gov/taxtopics/tc203

NOTE: You can contact the IRS Treasury Offset Program Call Center at 1-800-304-3107 to ask if they have an offset for you on file. TurboTax would not have that information.

https://turbotax.intuit.com/tax-tips/tax-payments/who-can-garnish-an-income-tax-refund/L7cPPzDyc

Refund

stephsmith06 — Wed, 11 Feb 2026 07:08:39 GMT

Can Miami county ohio child support garnish my earned income tax credit on taxes return for back child support they told me to ask a tax person

Re: Dual family taxes

Hal_Al — Thu, 25 Apr 2024 14:14:01 GMT

Q. I suspect my stepson's father keeps claiming him as a dependent even though he lives with me year round. How can I confirm this?

A. By filing a competing return (presumably a joint return with the child's mother), claiming the child as a dependent.

If someone else claimed your child inappropriately, and if they file first, your return will be rejected if e-filed. You would then need to file a return on paper, claiming the child as appropriate. The IRS will process your return and send you your refund, in the normal time. Shortly (up to a year) thereafter, you'll receive a letter from the IRS, stating that your child was claimed on another return. It will tell you that if you made a mistake to file an amended return and if you didn't make a mistake to do nothing. The other party will get the same letter you did. If one of you doesn't file an amended return, unclaiming the child, the next letter, from the IRS, will require you to provide proof. Be sure to reply in a timely manner.

Winner gets the tax benefits; loser gets to pay the IRS back with penalties and interest. The custodial parent almost always wins. The IRS goes by physical custody, not legal custody. The non-custodial parent can only claim the child as a dependent if the custodial parent gives permission (on form 8332) or if it's spelled out in a pre 2009 divorce decree.

Re: Featured Discussion: Common Reasons You May Be in Debt

shehriar1 — Mon, 25 Mar 2024 12:57:16 GMT

"Explore our latest Turbo blog post where we uncover the top reasons individuals fall into debt, providing actionable solutions and next steps to help you regain financial stability."

Re: Dual family taxes

Wadeeli — Wed, 20 Mar 2024 19:30:42 GMT

The other answers are correct. Besides, his tax return does not affect you, so let it be.

Re: Deducting IRA contribution when also having 401k

Wadeeli — Wed, 20 Mar 2024 19:25:24 GMT

Do NOT listen to other people regarding this sort of thing. When you're dealing with something like this, talk to the people who would know, like an HR person or an accountant. If neither one seems satisfactory, keep trying for advice, but not from a co-worker or a brother-in-law or a casual friend.

One good place: An insurance agent, especially one with a CFP or a CLU designation. Try your insurance guy, and he can always check with home office, and you better believe they'll know what to do in your situation.

Re: How or what can I do to lower my debts?

Wadeeli — Wed, 20 Mar 2024 19:21:37 GMT

If you signed for the vacuum, it's your vacuum, sweetie. You're responsible, and if it means you're done with that louse of a husband, you're getting off cheap.

Little kids, eh? Ever think of having their friends stay with you as an informal day-care center? It won't bring in much, but there are many at-home employments available if you cannot get out.

Don't blame it all on him. Don't blame it all on yourself, either. Neither process reduces your vacuum debt by a penny. Work on solutions, and let his girlfriend keep the vacuum and the person who brought it over.

Re: Featured Discussion: Common Reasons You May Be in Debt

Wadeeli — Wed, 20 Mar 2024 19:17:37 GMT

the advice is sound, and effective if you have the means to do so.

An old talk show recommended a second job, with the attitude: "You spent yourself into this mess, not earn your way out." Even if it is, say, a $10 /hour part-time job, $200/week eventually earns $10,000/year, and that will make a big dent if you devote 100% of your pay towards the bill.

Cutting back on phone contracts and television subscriptions can help a lot, also. Those bills kind of grow and grow and grow and grow without you noticing.

Finally, visit my writings at Wadeeli.substack.com. You may like some of the money-saving ideas there. It starts with your automobile.

Re: Form 8582 1a input with net section 1231 gain

PatriciaV — Wed, 24 Jan 2024 17:16:09 GMT

According to the IRS Instructions for Form 8582, Net Income (box 1a) "is the excess of current year income over current year deductions from the activity. This includes any current year gains or losses from the disposition of assets or an interest in the activity."

The passive activity loss limitations do not separate ordinary income/loss from capital gains/losses for Part I of Form 8582.