Tax question

eddy
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Tax question

Postby eddy » Sat Feb 16, 2019 10:43 am

I'm trying to file my PA state return and I have a 1099-R form this year. I took out some money from my IRA and the form to file is asking me for

E- total federal amount ( that's obvious, I'm good with that)
F- adjusted plan basis
G- PA state compensation
H- PA tax withheld

When I took the money out, I elected to pay the federal tax at that time too, but had no options for state. What is F and G?

I didn't have PA tax withheld when I took the money out, so that (H) would be $0.

Any ideas?

eddy
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Tax question

Postby eddy » Mon Feb 18, 2019 7:28 am

Anyone know anything about this?

mamaemeritus
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Tax question

Postby mamaemeritus » Mon Feb 18, 2019 7:39 am

I'm trying to file my PA state return and I have a 1099-R form this year. I took out some money from my IRA and the form to file is asking me for

E- total federal amount ( that's obvious, I'm good with that)
F- adjusted plan basis
G- PA state compensation
H- PA tax withheld

When I took the money out, I elected to pay the federal tax at that time too, but had no options for state. What is F and G?

I didn't have PA tax withheld when I took the money out, so that (H) would be $0.

Any ideas?
I assume you are not over age 59 1/2 and this is not a normal distribution? If so, the entire amount is taxable in PA. So the PA state compensation would be the full amount of the distribution (item G is determining what amount in taxable in PA.)

I'm not sure which program you're using to do your taxes, but I assume item F either wants to know what was in your account when you took the distribution (aka was it a full distribution) or what is in your account after the distribution (do you have anything left in there). Without seeing it, I really can't be sure. I doubt that whatever you put in that box will affect your tax return. But you could test it and see.

Let me know if you have any other questions, I can try to help as best I can!

eddy
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Tax question

Postby eddy » Mon Feb 18, 2019 8:19 am

I'm trying to file my PA state return and I have a 1099-R form this year. I took out some money from my IRA and the form to file is asking me for

E- total federal amount ( that's obvious, I'm good with that)
F- adjusted plan basis
G- PA state compensation
H- PA tax withheld

When I took the money out, I elected to pay the federal tax at that time too, but had no options for state. What is F and G?

I didn't have PA tax withheld when I took the money out, so that (H) would be $0.

Any ideas?
I assume you are not over age 59 1/2 and this is not a normal distribution? If so, the entire amount is taxable in PA. So the PA state compensation would be the full amount of the distribution (item G is determining what amount in taxable in PA.)

I'm not sure which program you're using to do your taxes, but I assume item F either wants to know what was in your account when you took the distribution (aka was it a full distribution) or what is in your account after the distribution (do you have anything left in there). Without seeing it, I really can't be sure. I doubt that whatever you put in that box will affect your tax return. But you could test it and see.

Let me know if you have any other questions, I can try to help as best I can!
Thanks, that's starting to make sense. I'm using the PA Direct online filing system. Their website says (which I still don't understand):
What is the adjusted plan basis?
The adjusted plan basis is the nontaxable portion of the distribution. It is that portion of the distribution that was contributed by the taxpayer, in which PA Personal Income Tax has already been paid.
https://www.doreservices.state.pa.us/eS ... _part2.htm

I still have money left in there, but I took out about 80%. This was originally a retirement plan from an old job that I eventually rolled over to an IRA when the company folded.

mamaemeritus
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Tax question

Postby mamaemeritus » Mon Feb 18, 2019 8:22 am

On your 1099-R, in box 2a, what does it say? (This should be the "taxable amount" box.)

Edit: not the exact $ amount, but is it different than box 1?

mamaemeritus
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Tax question

Postby mamaemeritus » Mon Feb 18, 2019 8:23 am

Essentially, PA says that what YOU contributed to your plan is not taxable, since tax has already been paid. You would only be paying tax on your earnings.

eddy
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Tax question

Postby eddy » Mon Feb 18, 2019 8:29 am

On your 1099-R, in box 2a, what does it say? (This should be the "taxable amount" box.)

Edit: not the exact $ amount, but is it different than box 1?
Box 1 and 2a are the same amount.

eddy
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Tax question

Postby eddy » Mon Feb 18, 2019 8:31 am

Essentially, PA says that what YOU contributed to your plan is not taxable, since tax has already been paid. You would only be paying tax on your earnings.
so would that Adjusted Plan Basis be the beginning value when I first rolled this over to the IRA?

MrKennethTKangaroo
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Tax question

Postby MrKennethTKangaroo » Mon Feb 18, 2019 9:09 am

Essentially, PA says that what YOU contributed to your plan is not taxable, since tax has already been paid. You would only be paying tax on your earnings.
so would that Adjusted Plan Basis be the beginning value when I first rolled this over to the IRA?
NO not really it would be the amounts you contributed to the accounts from your paycheck throughout the life of the account

eddy
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Tax question

Postby eddy » Mon Feb 18, 2019 9:21 am

Essentially, PA says that what YOU contributed to your plan is not taxable, since tax has already been paid. You would only be paying tax on your earnings.
so would that Adjusted Plan Basis be the beginning value when I first rolled this over to the IRA?
NO not really it would be the amounts you contributed to the accounts from your paycheck throughout the life of the account
oh. well that was 12 years ago and I have no idea what that would be since I put everything from that 401k to this IRA. Oh well, when i put in different numbers, it doesn't seem to change my return amount.

Thanks for all the help!

dodint
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Tax question

Postby dodint » Wed Dec 09, 2020 9:55 am

I'll co-opt this since it was resolved, rather than starting a new thread for a small inquiry.

My sister still has not received her tax return for this year. She's a tax accountant so it's safe to say she's somewhat savvy in this area. She got through to the IRS on the phone today and they told her there is nothing she could do and hiring a tax attorney will not do anything for her.

Is this true? Would it be a waste of money to hire an attorney in this area? I learned very, very little tax law for the bar exam so I am useless to her.

MrKennethTKangaroo
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Tax question

Postby MrKennethTKangaroo » Wed Dec 09, 2020 9:59 am

What do you mean by “she hasn’t received a tax return” like she filed but hasn’t heard from the IRS?

dodint
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Tax question

Postby dodint » Wed Dec 09, 2020 10:01 am

We were chatting in text, this is the gist of it: "Called the IRS today and they finally said they have no idea when they'll process our return... and that calling for updates or getting a tax advocate would be pointless because they won't be able to provide answers."

willeyeam
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Tax question

Postby willeyeam » Wed Dec 09, 2020 10:07 am

when did she file? did she paper file or efile?

MrKennethTKangaroo
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Tax question

Postby MrKennethTKangaroo » Wed Dec 09, 2020 10:12 am

And did she do it herself? Through turbo tax?

dodint
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Tax question

Postby dodint » Wed Dec 09, 2020 10:14 am

She filed in March and she worked for a tax accounting firm and self-prepared. She had to provide additional information in June via fax.

willeyeam
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Tax question

Postby willeyeam » Wed Dec 09, 2020 10:17 am

I know of paper returns that sat at IRS offices from March until July or August because they were understaffed. They are paying interest on refunds for the length of time that they sat there. If it's truly that they just haven't gotten around to it, then an attorney isn't going to help. They'll process it when they process it and then pay interest to make her whole. If there's some other issue, then possibly help may be needed.. It seems abnormal that they've just sat on it since June.

mikey
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Tax question

Postby mikey » Wed Dec 09, 2020 10:24 am

Those fax/lettering games seem to be a lock for 60-120 days of extension time right there in my experience...their pretty fruitful with some creative math and some plausible deniability...

mamaemeritus
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Tax question

Postby mamaemeritus » Wed Dec 09, 2020 10:31 am

I am in tax. This is totally normal for what happened w/COVID. The IRS is beyond antiquated with systems/processing. They essentially had a full shutdown for COVID and no processing took place for months. And they aren't wrong - paying for a tax attorney won't do anything for her except cost her money at this point. There are metric ****tons of people in this same situation. She needs to just sit on her proof of timely filing and wait, unfortunately.

dodint
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Tax question

Postby dodint » Wed Dec 09, 2020 10:37 am

Thanks. I didn't want to compound her problem by telling her to get a tax attorney. There are some local tax attorneys that do free consultations, but I told her if she's looking to get money back from the IRS most likely the attorney will take 25-35% of it. That's the model for unemployment, disability, SSI, etc. They advocate for you and take a set fee. Which is fine if they have the ability to pump up the dollar amount or get it much quicker. Sounds like that isn't the case here.

Thanks!

MrKennethTKangaroo
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Tax question

Postby MrKennethTKangaroo » Wed Dec 09, 2020 10:37 am

Yeah, weren't there stories about there *LITERALLY* being a pile of unopened 1st Q estimated tax payment checks just piling up at one of the IRS offices that was closed in March and April?

willeyeam
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Tax question

Postby willeyeam » Wed Dec 09, 2020 10:39 am

Yeah, weren't there stories about there *LITERALLY* being a pile of unopened 1st Q estimated tax payment checks just piling up at one of the IRS offices that was closed in March and April?
They actually mailed some returns back at one point.

I think you're thinking of the Trump ballots

MalkinIsMyHomeboy
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Tax question

Postby MalkinIsMyHomeboy » Wed Dec 09, 2020 10:46 am

lol I was thinking about asking a tax question too dodint but was going to revive another thread

anyway, I **** up and exercised a lot of my company's options (we IPOed this year) without realizing that I would trigger AMT (alternative minimum tax). I will owe like ~$86k in taxes

I have a ton of options so it's not that worrisome but I am annoyed because I'll have to sell the options sooner than I wanted to and will lose ~9% because I'll need to pay short term cap gains on the options I'll be selling to pay my taxes rather than long term gains

long term gains for those options will start in August and I was wondering if there was a low interest loan or something similar I could take out to pay my taxes in April and then pay back the loan in August. Or maybe defer my tax payment until I can sell

dodint
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Tax question

Postby dodint » Wed Dec 09, 2020 10:48 am

Unrelated to MiMH, but I wonder if the 2020 tax returns will be delayed as well given they haven't even finished 2019s yet. Hmm.

mamaemeritus
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Tax question

Postby mamaemeritus » Wed Dec 09, 2020 11:03 am

Unrelated to MiMH, but I wonder if the 2020 tax returns will be delayed as well given they haven't even finished 2019s yet. Hmm.
Wouldn't shock me. Plus another shutdown is looming and Congress is scheduled to break for the holidays. Any IRS downtime is like 10x the downtime of a "normal" business. They still use magnetic tapes for storage, for God's sake.

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