Author Topic: any accountants out there that i can ask a question?  (Read 490765 times)

Offline theduke

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Re: any accountants out there that i can ask a question?
« Reply #1200 on: February 01, 2017, 04:31:26 PM »
Any reviews on freetaxusa.com for a normal individual return? I've always used other online software by big box (HRB,  TT) but would not mind saving on the cost. Are they just as good?
been using them for the past few years, they seem to be pretty much the same and way cheaper. use ebates and get 25% back as well. Only tip which I don't know if Turbo Tax picks up wither is that in New Jersey insurance premiums that are deducted by your employer are not pretax in regards to NJ income so when you put in your medical expenses for NJ you should make sure to put in the deductions that were taken out.

Offline churnbabychurn

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Re: any accountants out there that i can ask a question?
« Reply #1201 on: February 01, 2017, 05:01:49 PM »


been using them for the past few years, they seem to be pretty much the same and way cheaper. use ebates and get 25% back as well. Only tip which I don't know if Turbo Tax picks up wither is that in New Jersey insurance premiums that are deducted by your employer are not pretax in regards to NJ income so when you put in your medical expenses for NJ you should make sure to put in the deductions that were taken out.
I would imagine the software does these things..

Offline theduke

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Re: any accountants out there that i can ask a question?
« Reply #1202 on: February 02, 2017, 12:58:01 PM »
I would imagine the software does these things..
thought so too, but after doing more research on the topic I realized that didn't.  The program technically doesn't know what your premiums were but it also doesn't specifically explain. 

Offline ExGingi

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Re: any accountants out there that i can ask a question?
« Reply #1203 on: February 02, 2017, 01:17:18 PM »
To calculate Roth 401k % deduction and employer match... Do I use the percentage from gross wages or net wages?
I'm not an accountant (though I do know a thing or two about qualified plans, IME more so than many CPAs, as that is not their line of business), and your question is not clearly phrased.

BUT, if I understand what you are asking, when you indicate a % of your income to be deferred into a 401k (Roth or regular), that is usually the % of your GROSS wages (though I don't think there is any IRS rule on this, from their standpoint you should be able to allocate any amount, be it dollar amount or percentage, as long as the % does not exceed your maximum allowable percentage of your gross income).

IINM employer matches CANNOT be directed to a ROTH 401k, but will rather go into the regular 401k option.
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Offline skyguy918

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Re: any accountants out there that i can ask a question?
« Reply #1204 on: February 02, 2017, 02:43:11 PM »
IINM employer matches CANNOT be directed to a ROTH 401k, but will rather go into the regular 401k option.
-.5

It can be matched into a Roth 401k, but only on a pre-tax basis. It's a bit of a mess - it basically creates one account that's partially Roth, partially Traditional.

Offline 12HRS

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Re: any accountants out there that i can ask a question?
« Reply #1205 on: February 02, 2017, 03:05:04 PM »
-.5

It can be matched into a Roth 401k, but only on a pre-tax basis. It's a bit of a mess - it basically creates one account that's partially Roth, partially Traditional.

I had that happen. when I left the company they told me which portions were which and I directed some to a roth and some to a traditional

Offline ExGingi

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Re: any accountants out there that i can ask a question?
« Reply #1206 on: February 02, 2017, 04:24:19 PM »
-.5

It can be matched into a Roth 401k, but only on a pre-tax basis. It's a bit of a mess - it basically creates one account that's partially Roth, partially Traditional.
So are we arguing semantics?

If it's part Roth and part Traditional, that's two accounts in my dictionary.

Remember that an "account" is not a physical container, but rather a ledger entry.
I've been waiting over 5 years with bated breath for someone to say that!
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Offline Mountain Man

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Re: any accountants out there that i can ask a question?
« Reply #1207 on: February 02, 2017, 06:06:17 PM »
So are we arguing semantics?

If it's part Roth and part Traditional, that's two accounts in my dictionary.

Remember that an "account" is not a physical container, but rather a ledger entry.
+1 my Roth contributions go into my Roth 401k my employer match goes into a traditional 401k.

https://www.irs.gov/retirement-plans/retirement-plans-faqs-on-designated-roth-accounts#10/

"Can my employer match my designated Roth contributions? Must my employer allocate the matching contributions to a designated Roth account?

Yes, your employer can make matching contributions on your designated Roth contributions. However, your employer can only allocate your designated Roth contributions to your designated Roth account. Your employer must allocate any contributions to match designated Roth contributions into a pre-tax account, just like matching contributions on traditional, pre-tax elective contributions."
Quote from: JTZ link=topic=10531.msg1695873
If you never had to eat crow then you lived one boring life.

Offline skyguy918

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Re: any accountants out there that i can ask a question?
« Reply #1208 on: February 03, 2017, 03:22:37 PM »
So are we arguing semantics?

If it's part Roth and part Traditional, that's two accounts in my dictionary.

Remember that an "account" is not a physical container, but rather a ledger entry.

+1 my Roth contributions go into my Roth 401k my employer match goes into a traditional 401k.

https://www.irs.gov/retirement-plans/retirement-plans-faqs-on-designated-roth-accounts#10/

"Can my employer match my designated Roth contributions? Must my employer allocate the matching contributions to a designated Roth account?

Yes, your employer can make matching contributions on your designated Roth contributions. However, your employer can only allocate your designated Roth contributions to your designated Roth account. Your employer must allocate any contributions to match designated Roth contributions into a pre-tax account, just like matching contributions on traditional, pre-tax elective contributions."
I always thought it was 1 account. I stand corrected.

Offline googwallet

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Re: any accountants out there that i can ask a question?
« Reply #1209 on: February 13, 2017, 05:50:53 AM »
Anyway for an s-corp with one employee (just the owner) to avoid paying NYS unemployment insurance on wages?

Offline aryeh1

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Re: any accountants out there that i can ask a question?
« Reply #1210 on: February 15, 2017, 08:12:10 PM »
Any accountants i can pm my question to?

Offline AtallD

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Re: any accountants out there that i can ask a question?
« Reply #1211 on: February 15, 2017, 09:51:28 PM »
Any accountants i can pm my question to?

You can PM me.

Offline Work-for-ur-muny

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Re: any accountants out there that i can ask a question?
« Reply #1212 on: February 16, 2017, 08:37:40 PM »
Are there any accountants who can chime in on this?

I was told that to change payroll from a self-employed status (for which one would receive a 1099) to a W2 from the same employer would raise a red flag and trigger an audit by the IRS. Is this true?

Offline googwallet

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Re: any accountants out there that i can ask a question?
« Reply #1213 on: February 16, 2017, 09:14:28 PM »
Are there any accountants who can chime in on this?

I was told that to change payroll from a self-employed status (for which one would receive a 1099) to a W2 from the same employer would raise a red flag and trigger an audit by the IRS. Is this true?

Very common for people to start out as a contractor and then switch to W2. I did that myself. Maybe there are specific situations where it can be a red flag, but not across the board.

Then again I'm no accountant.

Offline Work-for-ur-muny

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Re: any accountants out there that i can ask a question?
« Reply #1214 on: February 16, 2017, 09:17:40 PM »
Very common for people to start out as a contractor and then switch to W2. I did that myself. Maybe there are specific situations where it can be a red flag, but not across the board.

Then again I'm no accountant.
Thanks for your input. Just a question, did you discuss the switch with an accountant before doing it?

I would appreciate if any accountants can answer this too.

Offline ExGingi

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Re: any accountants out there that i can ask a question?
« Reply #1215 on: February 16, 2017, 10:15:45 PM »
Thanks for your input. Just a question, did you discuss the switch with an accountant before doing it?

I would appreciate if any accountants can answer this too.
My assistant started off working for me on a 1099, and then I hired him full time and put him on a W-2. My CPA also said it was a red flag (especially if both were issued in the same year), but I wasn't concerned one bit, as I could back it up with facts.

I am not an accountant, and mean no offense to those that are, but I find that most accountants stick to their way of doing things, and are apprehensive about doing things differently. Avoiding an audit is a high priority with CPAs IME.

Also remember that the IRS is just like bank robbers, they go where the money is. How much resources do you think they will allocate to audit a return, if their best outcome won't end up gaining them much?

IINM the 1099 vs W2 is more of a DOL issue than it is an IRS issue.

Full disclosure: I have never been audited, and might change my tune if I ever am.

I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline A3

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Re: any accountants out there that i can ask a question?
« Reply #1216 on: February 16, 2017, 10:19:03 PM »
Thanks for your input. Just a question, did you discuss the switch with an accountant before doing it?

I would appreciate if any accountants can answer this too.
They don't have to issue a 1099... Well how much is it?

Can just say they forgot, and have you sign a letter that states you reported the income. In the event that they are audited. At the end, that's all the IRS cares about. Everyone reporting their income.

Offline Bh101

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Re: any accountants out there that i can ask a question?
« Reply #1217 on: February 19, 2017, 09:46:27 AM »
My assistant started off working for me on a 1099, and then I hired him full time and put him on a W-2. My CPA also said it was a red flag (especially if both were issued in the same year), but I wasn't concerned one bit, as I could back it up with facts.

I am not an accountant, and mean no offense to those that are, but I find that most accountants stick to their way of doing things, and are apprehensive about doing things differently. Avoiding an audit is a high priority with CPAs IME.

Also remember that the IRS is just like bank robbers, they go where the money is. How much resources do you think they will allocate to audit a return, if their best outcome won't end up gaining them much?

IINM the 1099 vs W2 is more of a DOL issue than it is an IRS issue.

Full disclosure: I have never been audited, and might change my tune if I ever am.
as an accountant i have to say that im not sure where all this came from? your own personal experience that the IRS goes where the money is or any of it actually. (and no offense taken just curious where all the advice is coming from)

Offline ExGingi

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Re: any accountants out there that i can ask a question?
« Reply #1218 on: February 19, 2017, 10:12:02 AM »
as an accountant i have to say that im not sure where all this came from? your own personal experience that the IRS goes where the money is or any of it actually. (and no offense taken just curious where all the advice is coming from)
No advice whatsoever, just personal opinion. Whatever is based on experience was disclosed as such.
« Last Edit: February 19, 2017, 10:15:43 AM by ExGingi »
I've been waiting over 5 years with bated breath for someone to say that!
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Offline aryeh1

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Re: any accountants out there that i can ask a question?
« Reply #1219 on: February 19, 2017, 11:32:52 AM »
Anyone know if tuition paid reduces adjusted gross income?
« Last Edit: February 19, 2017, 11:39:10 AM by aryeh1 »