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k371
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- Posted Re: When deduct 4th quarter payroll taxes on Get your taxes done using TurboTax. December 22, 2019 12:02 PM
- Posted Thanks again! on Retirement tax questions. June 6, 2019 6:58 AM
- Posted Thank you for the detailed and quick answer. Seems two a... on Retirement tax questions. June 6, 2019 6:58 AM
- Posted For a solo 401k (no employees), with less than 18,000 total to contribute, is there a benefit to classify it as elective, profit sharing or split between two types? on Retirement tax questions. June 6, 2019 6:58 AM
- Posted Thanks! this fixed it. I had not realized that "State Ta... on Get your taxes done using TurboTax. June 6, 2019 1:11 AM
- Posted TT Home and Business filled more than 7000 for wages subject to FUTA for nanny tax on Get your taxes done using TurboTax. June 6, 2019 1:11 AM
- Posted I lost earnest money deposit on a home purchase and seems that is a Schedule D loss IF THE HOME WAS FOR RENTAL. Do I need to prove it was for rental? on Investors & landlords. June 5, 2019 11:36 PM
- Posted which version of TT? I am on TT Home and Business - the f... on After you file. June 4, 2019 12:35 PM
- Posted The IRS worksheet itself does not account for estimated t... on After you file. June 4, 2019 12:35 PM
- Posted Dependent care credit: does earned income need to be in same month as dependent care expense? on Deductions & credits. June 3, 2019 12:47 PM
December 22, 2019
12:02 PM
However if the accrued payroll expense had salary paid to the business owner (S-Corp shareholder or related party, or equivalent in a partnership etc.) then the salary cannot be deducted from what I know. Not sure if the associated payroll taxes can be deduced in that case.
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June 6, 2019
6:58 AM
Thank you for the detailed and quick answer. Seems two advantages for using the elective deferral first and the profit sharing later. 1. If one has a Roth provision, elective portion is the only way to use the Roth advantages. 2. It seems from the answer above that contributing first to elective portion helps maximize the available limit. Do net earnings depend on the amount contributed to the elective portion? If not, it is not clear to me why the total allowed limit will change with contributing first to the elective portion. Regardless, there seems to be no disadvantage to first using the elective portion. Another advantage I can think of: Since exact profit sharing limit may not be calculated until actual tax filing, one can safely contribute the elective portion before Dec 31 (assuming income is well above the 18,000 IRS limit for 2017). Follow up question: Seems I will be paying medicare tax on the solo-401k contribution regardless of whether it is classified as elective or profit sharing, is that right? Or can medicare tax be avoided in one of the classifications?
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June 6, 2019
6:58 AM
My total contribution this year to my solo 401k is less than either the elective limit (18k) and also less than the profit sharing based limit. Also, even if I decide to contribute more, it may not exhaust the total of my full limits. Should I first use the elective limit or the profit sharing limit? Is there a benefit to using one classification vs. the other if I am not using the full extent of both contributions? Either is tax implications or paperwork overheads. From what I understand, I can make a single lumpsum contribution. DO I have to do some extra paperwork to show a monthly slaary if using the elective contribution limit? (I do not run a payroll since I just keep the net proceeds from my sole proprietorship as income.
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June 6, 2019
1:11 AM
Thanks! this fixed it. I had not realized that "State Taxable Wages" on Screenshot 1 refer to 'wages subject to state UNEMPLOYMENT tax' since the phrase state taxable wages typically (for W2 etc.) refers to wages subject to state income tax.
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June 6, 2019
1:11 AM
I am completing the section for Nanny Tax under Other Tax Situations in TT Home and Business 2017. TT asks me for wages subject to social security tax and medicate tax. The ampunt is about 30,000. I filled that. I am in CA so I checked the boxes accordingly on subsequent screens. However when I look at the "forms View", TT shows a FUTA tax of about $1500 on Schedule H. This looked high and the issue I found is that on line 20 of schedule H, TT has filled in the entire 30k as wages subject to FUTA instead of 7000. Seems from IRS that only 7000 should be filled for FUTA tax wages. https://www.irs.gov/taxtopics/tc759. Where do I fix my entries in TT Home and Business to get correct schedule H calculations?
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June 5, 2019
11:36 PM
From previous answers to similar questions, it seems that it could be a Schedule D loss for acquiring a new venture that turned out to be not viable. Also, if we do deduct it, will the entire loss be deductible from other income (my other income is W2 wages income) or only 3000, the passive loss limit?
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June 4, 2019
12:35 PM
which version of TT? I am on TT Home and Business - the form still appears. The latest installed update shows from Feb 27: <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/3169946-turbotax-2018-release-notes-for-windows-personal-tax-software">https://ttlc.intuit.com/questions/3169946-turbotax-2018-release-notes-for-windows-personal-tax-software</a>
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June 4, 2019
12:35 PM
The IRS worksheet itself does not account for estimated taxes in credits - maybe the bug is because of that. In any case, need a fix. Any update on this: was the fix released? I still see the 2210 being generated...will the fix automatically remove it or do I need to follow some steps after fix?
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June 3, 2019
12:47 PM
We paid a nanny for Jan through May 2018. For the whole year I worked on a new business where I do not have profits yet and hence no earned income from it. For some months (after May) I did have W2 income from a different source. My spouse was working full time for the entire year and has earned income from her work. Can we claim dependent care credit? The rule only says I need to have earned income and the nanny should have been hired to allow me to work. But my earned income was not in the same months as we paid the nanny. Does that prevent me from claiming dependent care credit? I ask because if I did not have W2 income, just working on my business is not enough to claim the credit even though the nanny was hired to let me work on my business.
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