7th Annual Anandtech Tax Time Thread

[Turin39789]

We moved and bought our first home.

1st question - We closed in November and the seller had already paid the taxes up through the end of the year. We had to refund him the amount he paid, but we didn't make an actual payment to the county - when I am asked if I paid property tax, can I claim this small amount?

2nd question - Moving expenses. We moved 80 miles from our previous home, but I'm just now finding a new job. Can I deduct the moving expenses? I expect to be working here for at least 39 weeks after the move, but I didn't have the job at the time we moved.

 

[Turin39789]

State question if I can get away with it, though I think I know the answer. I didn't enter medical expenses on my federal return but it wants me to enter them on state(not including insurance premiums).

We have employer sponsored insurance that is taken out pretax. I paid for all of our medical expenses with an HSA account that was funded with mine and my employers pre-tax money.

I should just leave the medical expenses blank right?

 

[EagleKeeper]

We moved and bought our first home.

1st question - We closed in November and the seller had already paid the taxes up through the end of the year. We had to refund him the amount he paid, but we didn't make an actual payment to the county - when I am asked if I paid property tax, can I claim this small amount? You can claim what you refunded him - That would be the taxes for December and prorated for November

2nd question - Moving expenses. We moved 80 miles from our previous home, but I'm just now finding a new job. Can I deduct the moving expenses? I expect to be working here for at least 39 weeks after the move, but I didn't have the job at the time we moved. You should not file the 3903 until you can state that the move was for work. Where you do not have work yet, you can not safely state the fact. You can claim the move on your 2010 taxes though.

Answers in bold

 

[EagleKeeper]

State question if I can get away with it, though I think I know the answer. I didn't enter medical expenses on my federal return but it wants me to enter them on state(not including insurance premiums).

We have employer sponsored insurance that is taken out pretax. I paid for all of our medical expenses with an HSA account that was funded with mine and my employers pre-tax money.

I should just leave the medical expenses blank right?

Double dipping is not recommended

 

[Turin39789]

You should not file the 3903 until you can state that the move was for work. Where you do not have work yet, you can not safely state the fact. You can claim the move on your 2010 taxes though.

I'm expecting a job offer next week, had interviews today and yesterday. Is it okay to put them on 2009 once I have the offer or will it be right to wait for 2010 since that is when the job started?

 

[EagleKeeper]

I'm expecting a job offer next week, had interviews today and yesterday. Is it okay to put them on 2009 once I have the offer or will it be right to wait for 2010 since that is when the job started?

It will belong on the 2010 form

 

[bigrash]

1st time posting in one of these tax threads!

I filled my taxes a few days ago through my accountant. I tried to call him yesterday but the guy is always busy so I thought I'd ask my question here too.

Basically my question is this. I had a very small 401k with Mercer from a company that I used to work for (I believe it might have been ESOP that they rolled over to 401k, but I'm not sure). Mercer closed the account and made a distribution to Putnam for the full amount in December 09. I never realized it, because I never received a letter.

So I received a 1099 from Mercer saying that I took out the money (it was non-taxed). I went to my accountant, filled my taxes, then realized after a lot of searching that I had a form 5498 from Putnam. So I payed taxes for 401k that I never cashed out.

I guess it's not a big deal, cause it wasn't a big amount, but is there anything I can do, or can I even submit the 5498 form when I do my taxes next year? Thanks for the help!

 

[ViviTheMage]

I did my taxes via turbotax online, but I put in the wrong SSN on accident, mixed up two of the numbers..it was late.

Minnesota accepted my return, federal did not, so I corrected it, and re-e-filed it.

What should I do for the mix up for Minnesota? Is it a big deal I NEED to fix? I assume so, otherwise they will think I never filed...? How do I fix this for Minnesota?

 

[onza]

I did my taxes via turbotax online, but I put in the wrong SSN on accident, mixed up two of the numbers..it was late.

Minnesota accepted my return, federal did not, so I corrected it, and re-e-filed it.

What should I do for the mix up for Minnesota? Is it a big deal I NEED to fix? I assume so, otherwise they will think I never filed...? How do I fix this for Minnesota?

Fix fed only. If MN accepted it, I wouldn't stress it too much.

OR I'd call the govern if it bothers you.

 

[ViviTheMage]

Fix fed only. If MN accepted it, I wouldn't stress it too much.

OR I'd call the govern if it bothers you.

My name was correct, and address, just the two numbers switched on my SSN. How much does MN care that my SSN will not be filing this year? haha ... How CAN I correct it, if needed? Call who?

 

[onza]

My name was correct, and address, just the two numbers switched on my SSN. How much does MN care that my SSN will not be filing this year? haha ... How CAN I correct it, if needed? Call who?

indinctax@state.mn.us

Ironically I live in MN and I had a similar issue while working on a client. Just state your issue with them and they should be able to guide you the rest of the way.

Again - Don't stress it

 

[ViviTheMage]

Thanks , I will shoot them an email

I just don't want to flag myself for an audit! haha

 

[EagleKeeper]

1st time posting in one of these tax threads!

I filled my taxes a few days ago through my accountant. I tried to call him yesterday but the guy is always busy so I thought I'd ask my question here too.

Basically my question is this. I had a very small 401k with Mercer from a company that I used to work for (I believe it might have been ESOP that they rolled over to 401k, but I'm not sure). Mercer closed the account and made a distribution to Putnam for the full amount in December 09. I never realized it, because I never received a letter.

So I received a 1099 from Mercer saying that I took out the money (it was non-taxed). I went to my accountant, filled my taxes, then realized after a lot of searching that I had a form 5498 from Putnam. So I payed taxes for 401k that I never cashed out.

I guess it's not a big deal, cause it wasn't a big amount, but is there anything I can do, or can I even submit the 5498 form when I do my taxes next year? Thanks for the help!

File a 1040X with the proper forms and numbers

 

[xochi]

I have a 401k to Roth IRA conversion question.

In April, 2009 i converted a 401k to a Roth IRA at Vanguard. I've been happy with my decision to convert until i started preparing for the 2009 taxes. I was filling out IRS form 8606 and was not aware of the Adjusted Gross Income limit of $100,000. The wife and i are over that limit.

The instructions for form 8606 say to recharacterize the IRA conversion. My question, In simple terms does it turn my Roth IRA to a Traditional IRA? and would their be tax consequences?

Thanks

*update I called vanguard and they said i could recharacterize the entire amount into a traditional IRA, by doing the paperwork for a Traditional IRA account and filling out an IRS form, with no tax consequences.

 

[sunzt]

First of all thanks to all who are helping answer questions you guys/gals are great.

In 2009 I started a new job on the other side of the US and qualify for moving expenses deductions. I moved into a new apartment and had moving expenses. I know I can deduct travel, storage, and moving services.

My question is:
Can I deduct the apartment deposit and the 1st & last months rent required to secure my new apartment for me to move in?

 

[EagleKeeper]

First of all thanks to all who are helping answer questions you guys/gals are great.

In 2009 I started a new job on the other side of the US and qualify for moving expenses deductions. I moved into a new apartment and had moving expenses. I know I can deduct travel, storage, and moving services.

My question is:
Can I deduct the apartment deposit and the 1st & last months rent required to secure my new apartment for me to move in?

No

 

[sandmanwake]

This question is more of a hypothetical since I'm only considering signing up for telework, but:

I'm a Federal employee and my "official duty station" is in Alexandria, VA. However, my work place allows us to telework from anywhere in the US provided that we show up at the Alexandria campus twice a bi-week for a minimum of one hour per day. The rules are such that what it boils down to is that I can show up in Alexandria, VA for a four day stretch every month in the middle of the month and then leave to go back home, wherever in the US that might be.

This article from the IRS: http://www.irs.gov/taxtopics/tc511.html appears to state that the travel and lodging cost to Alexandria can be deducted since the main place I would do business is the office I set up in my home, but does it still apply since Alexandria is designated as my "official duty station" by my employer?

My employer does not pay the cost of the airline ticket or lodging needed during the four days per month that we are required to show up in Alexandria--can this travel and lodging cost be deducted on my personal income tax.

Since I would be working from home the bulk of the time, obviously my employer won't pay for the cost of the office or furniture for the office. Can I deduct the cost of utility as well as the cost of using a room in my house exclusively as an office for work as well as the cost to furnish the office so work can be done?

Thanks. If the answer to the above questions are yes I can deduct everything, goodbye NoVA and insane housing prices.

 

[EagleKeeper]

This question is more of a hypothetical since I'm only considering signing up for telework, but:

I'm a Federal employee and my "official duty station" is in Alexandria, VA. However, my work place allows us to telework from anywhere in the US provided that we show up at the Alexandria campus twice a bi-week for a minimum of one hour per day. The rules are such that what it boils down to is that I can show up in Alexandria, VA for a four day stretch every month in the middle of the month and then leave to go back home, wherever in the US that might be.

This article from the IRS: http://www.irs.gov/taxtopics/tc511.html appears to state that the travel and lodging cost to Alexandria can be deducted since the main place I would do business is the office I set up in my home, but does it still apply since Alexandria is designated as my "official duty station" by my employer?

My employer does not pay the cost of the airline ticket or lodging needed during the four days per month that we are required to show up in Alexandria--can this travel and lodging cost be deducted on my personal income tax.

Since I would be working from home the bulk of the time, obviously my employer won't pay for the cost of the office or furniture for the office. Can I deduct the cost of utility as well as the cost of using a room in my house exclusively as an office for work as well as the cost to furnish the office so work can be done?

Thanks. If the answer to the above questions are yes I can deduct everything, goodbye NoVA and insane housing prices.

Sorry to burst your bubble.

Unless you are required by your employer to work from home; a home office can not be justified and/or written off.

And because you have to present yourself; the cost of travel would be treated as the required commute into the office due to the fact you are not being required to work from home.

 

[sandmanwake]

Sorry to burst your bubble.

Unless you are required by your employer to work from home; a home office can not be justified and/or written off.

And because you have to present yourself; the cost of travel would be treated as the required commute into the office due to the fact you are not being required to work from home.

Are you sure about the office deduction thing? The telework program is optional, but I seem to pass the tests set forth here: http://www.irs.gov/publications/p587/ar02.html#en_US_publink1000226292

If I sign up for telework, I no longer have an office in Alexandria, the office is for the convenience of my employer, it will be used exclusively and regularly for business for my employer.

 

[onza]

Do you get a W-2 or a 1099?

 

[EagleKeeper]

Are you sure about the office deduction thing? The telework program is optional, but I seem to pass the tests set forth here: http://www.irs.gov/publications/p587/ar02.html#en_US_publink1000226292

If I sign up for telework, I no longer have an office in Alexandria, the office is for the convenience of my employer, it will be used exclusively and regularly for business for my employer.

Additional tests for employee use.
If you are an employee and you use a part of your home for business, you may qualify for a deduction for its business use. You must meet the tests discussed above plus:

• Your business use must be for the convenience of your employer, and
  
• You must not rent any part of your home to your employer and use the rented portion to perform services as an employee for that employer.

If the use of the home office is merely appropriate and helpful, you cannot deduct expenses for the business use of your home.

You would have to look at how this telework program is setup.
If the government sets it up for the convience of the employee ,then then answer is still no.
If they have set it up for their convienence - yes. Make sure that you have documentation from the administrator indicating that it is for their convience - you WILL trigger an audit for the first few years that you try this.

 

[sandmanwake]

Do you get a W-2 or a 1099?

If this question is directed at me: w-2.



Crap, tax rules suck at clarity. So apparently if my research is correct, a home office is considered for the convenience of the employer if any one of three tests is met:

1) Having the home office is a required condition of employment.

2) Having a home office is necessary for the proper functioning of the business.

3) Having a home office is necessary to allow the employee to properly perform his duties.

I think I pass test 3 since I would be giving up my office in the Alexandria location if I sign up for telework and would then need a home office to properly allow me to perform my duties. However, the telework program is voluntary--I don't need to sign up for it and give up my office to properly perform my duty. So do I pass test 3 or not?

 

[Xcobra]

If this question is directed at me: w-2.



Crap, tax rules suck at clarity. So apparently if my research is correct, a home office is considered for the convenience of the employer if any one of three tests is met:

1) Having the home office is a required condition of employment.

2) Having a home office is necessary for the proper functioning of the business.

3) Having a home office is necessary to allow the employee to properly perform his duties.

I think I pass test 3 since I would be giving up my office in the Alexandria location if I sign up for telework and would then need a home office to properly allow me to perform my duties. However, the telework program is voluntary--I don't need to sign up for it and give up my office to properly perform my duty. So do I pass test 3 or not?

Thus, it is not necessary or for the convenience of your employer for you to have a home office. Answer is still no.

EDIT: I guess it's kind of a gray area because sure, it is voluntary, but once you sign up, you have to have a home office, but the question still remains, is it for the convenience of your employer or yours?

 

[alfa147x]

Quick question my girlfriend got her W-2 with the wrong name. Can she still file taxes? She's contacted her employer and the payroll department forwarded to their 'people' (ADP) and they sent he an email saying they will not be re-doing W-2's

Thanks guys!

 

[alkemyst]

Thus, it is not necessary or for the convenience of your employer for you to have a home office. Answer is still no.

EDIT: I guess it's kind of a gray area because sure, it is voluntary, but once you sign up, you have to have a home office, but the question still remains, is it for the convenience of your employer or yours?

It's pretty clear it does NOT qualify based on the explanation given.