A 401(k) must be sponsored by an employer, and the only way to make contributions is via payroll deduction.
An IRA is a private account you set up with a bank, stock broker or investment advisor.
A Roth IRA and a "Roth" 401(k) (a post-tax 401(k)) are similar in that you contribute money after taxes--you pay taxes on the money now and don't take a tax deduction for contributions. When you retire, you withdraw the money tax-free.
However, a Roth IRA and a post-tax 401(k) have different contribution rules, different contribution limits, and different withdrawal rules.
Do you have a specific question?
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The answer to the other part of the question is that you may contribute to an HSA in your own name as long as you have qualifying coverage and no other disqualifying coverage, even if your spouse is on Medicare. The amount is pro-rated month by month.
For 2020, the maximum you can contribute to an HSA if you are covered by a family HDHP is $7100, plus a $1000 catch-up provision. That works out to $675 per month. Eligibility is determined on the first day of the month. So if you join Medicare on September 1, 2020, you could make 8 months x $675 = $5400 of contributions into your HSA for 2020.
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CYC had the money $166 with them all these years, not accounted for. UMB reported what they actually received i.e. $6333.xx and my W2 Box 12 code W shows the same amount. I can ask my payroll whether they input value in Box 12 based on UMB input or whether they do their own calculation. From what it appears, it seems like they went with what UMB would've reported.
It doesn't really matter at this point. What is curious to me is that your employer withheld $6500 from your pay, but put $6333 on your W-2 in box 12. Somehow the bank provided the correct contribution amount and that overrode the employer's own records and the CYC records when it came to preparing the W-2. It's very curious.
Pay tax on the interest and bonus payment and forget about the rest. I wouldn't even consider it needed to prove you spent that $166 for medical expenses since (a) you probably paid income tax on it already in box 1 of your 2016 W-2, and (b) even if you didn't, it's past the statute of limitations.
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I don't have two SSN. However, when I click on the "Transmit Returns Now" button it informs me that "... a tax return with the same ssn has already been submitted..." I have NOT submitted my taxes yet... Where do i go from here??
If you did not submit a tax return with another company, AND you did not submit a non-filer information to get your refund faster, you might be the victim of identity theft. You need to print and sign and mail your tax returns. You should check your credit reports for signs of fraud.
If you did submit a non-filer form to try and get your stimulus payment faster, then that counts as a tax return and you can't e-file twice in one year, so print and mail your tax return now.
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This happened to me also using Turbotax. I tried to update my info with the IRS last month using their new "Non-filers site in order to attain my stimulus check. But recently when i went to efile my taxes using TurboTax my taxes were rejected do to a "duplicate filing error". My question is,what can i do to fix this and file my taxes?
Is there a way to let the IRS know what has transpired and lift the error code. Do you thin the IRS realizes this is becoming a problem and may fix it intenrally?
Here is the Turbotax Help site that allowed me to figure out what had happened to me.
https://ttlc.intuit.com/community/rejections/help/e-file-rejections-related-to-incorrect-or-duplic[product key removed]-dates-or-social-security-numbers/00/26208
A "non-filer" return is an official statement to the IRS that you will not file a tax return this year. So of course they will block anyone who tries to e-file a tax return in your name, since you already swore you wouldn't, so in their eyes is it likely to be fraud by someone else. In fact, the IRS web site says right at the top of the page,
The IRS never handles secure matters over the phone, and they don't take phone calls now anyway. You need to print your return, sign it, and mail it in.
There is no procedure now to undo this, to allow you to e-file, and there probably never will be such a procedure. Just mail your return.
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Correct. Since the amount shown with code W in box 12 of your W-2 is only $6,333.18, the $166.66 that did not get deposited into the HSA would not have been excluded from the amount in box 1 of your W-2, so the $166.66 has already been taxed properly on your 2016 tax return. The only amount that needs to be included in income on your 2019 tax return is the roughly $86 that is the sum of the interest and the compensation for lost tax savings.
There is still something very odd here unless I missed it from reading too fast.
UMB only credited you with $6333, and your W-2 says you contributed $6333, but CYC thinks you contributed $6500?
My next question is what happened on your paychecks? And box 1 of your W-2? Were you really out $166 in 2016?
Because if, during one pay period in 2016 the money was not withheld from your paycheck, and you got a larger check that week, then you already received the money so the $166 in 2019 is new taxable money. (That's the simplest way that UMB and the W-2 would match, if the withholding was just missed all around.) If the money was withheld from your paycheck, then I don't understand how box 12 from your employer matches the bank instead of CYC. I just can't wrap my head around how UMB and your employer have the right figure in box 12 if your employer withheld the money from all your checks. The employer should have been tracking your paychecks and I would expect they would make their W-2s up using their own figures rather than the bank's figures.
You don't have access to your final pay stub from 2016 do you? If your employer withheld the money from your check as planned, I would expect that your final pay stub of the year would show cumulative $6500 in contributions and be different from the W-2.
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Hi @Opus 17 , all.
So, I'm reading in some websites that " You should also take a moving deduction if your employer included your reimbursement with wages in box 1 of Form W-2 ". Is this true, and does it apply to my case?
That is, can I report any/some/all of: (a) the total moving expense reported under box 1; (b) the actual moving expense reported in box 14; and/or (c) the tax assistance; as a deductible moving expense in my tax return?
Also, is there a difference between the federal tax vs. state tax (California, where my new company is) for this deduction, if applicable at all?
It doesn't really matter how your employer accounts for the payment internally. If they call it $5000 moving assistance and $3000 tax assistance, or just an $8000 bonus, it is all taxable and should be included in your W-2 box 1 taxable wages.
The federal deduction for moving expenses was eliminated in 2018 tax reform. You may be looking at older articles. (Also note, the contents of this forum were migrated from the old platform to the new one in 2019 and many older posts got re-dated, so unfortunately there are posts here with old info and new dates.)
You can list your moving expenses in turbotax, turbotax will apply them to your state tax return if that is still allowed in your state and if you would actually receive a tax benefit. The amount of moving expenses you report is the actual amount you spent, regardless of whether it was more, less or the same as the employer payment. If audited, the state will come looking to you to prove your expenses with receipts. This web page has the old IRS rules for what moving expenses can be deducted. Remember this deduction will not be allowed on your federal return even if you entered it, but it will carry over to state if allowed.
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The timing of receiving my partner's SSN and Green Card was unknown when we filed in Feb as we were in a long queue as our visas were being processed - we weren't expecting to receive them until Oct 2020 but they got fast-tracked. Unfortunate, as would have been preferable to file with SSNs
Do you know what happens if I do not receive the ITINs before the 6-month extension? That's my main concern. Additionally, when I filed my federal taxes at the local office they wouldn't accept my state so I have to initially file federal get the ITINs then file State - was that the correct advice as I thought I could file both at the same time?
In a normal customer driven organization I would think this could be handled by a phone call. Unfortunately, the IRS is not taking phone calls and even when they were, they were not really customer driven and probably would not take a phone call for this issue.
I think you just have to wait for the ITINs to be issued. If there is a phone number on the W-7 instructions, you can try that.
You were correct to wait to file the state tax returns. At this point, you will either have to wait for the ITINs for your children, or remove the children as dependents and file with your spouse only. I don't know the state tax laws so I don't know whether you would get any dependent benefits by filing an amended state tax return later when the children have ITINs.
In any case, before you file the state tax return, I would use the spouse's SSN, not ITIN, if you have both at that time.
If your state tax deadline is not yet passed, you should request an extension, that will generally give you until October 15 to file.
I think I would just keep waiting. The IRS already has your tax return so you can't file another federal return. You could file a state return with your spouse and no dependents using your spouse's SSN, but making those changes to your tax file in Turbotax could create other confusion down the road.
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Yes, they were aware, I have always used the same person. The profit was just enough to put down on a larger home for our growing family and was far below 250k.
I pulled my previous returns and it looks like the Tax Preparer has just continued to add the 500 repayment every year since we sold the property. This is making me very nervous.
Your preparer is simply wrong, and they should fix it.
Now, for the amended 2015 when you will include form 5405, the form asks how much have you repaid so far. @Critter is suggesting that you include the 2015-2018 repayments, as a way to get credit for them without having to amend 2016-2018 returns. That may work, the worst the can happen is the IRS disagrees and they send you a letter and you file the amended returns.
If you aren't confident in your preparer, you may need to change preparers, that's up to you.
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