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Old 03-15-2017, 01:51 PM   #201
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So I just finished my tax. I Still need to go back and check on a few things. But it's 95% done. I have a question if anybody can answer me here. In the past when I had a rollover, trustee to trustee transfer, but I still received a 1099-R form. But I did nothing as in nothing need to be filled out, but the IRS still sent me an electronic audit and I had to send papers proving I rolled my IRA to another institution.
Is it better to send the rollover with my tax return to avoid this kind of audit. It was a large sum of money so I'm sure it will perk the IRS interest. I just want to avoid this kind of audit just in case I'm on long vacation and don't get the notice in time.
If you're using a tax program, make sure to enter the 1099-R, with the gross distribution from box 1 and the distribution code G in box 7.

If you're filling out a form 1040, put the total from box 1 in box 16a, put zero or leave blank box 16b, and write "ROLLOVER" between "b Taxable amount" and box 16b.
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Old 03-15-2017, 02:03 PM   #202
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Originally Posted by SecondCor521 View Post
If you're using a tax program, make sure to enter the 1099-R, with the gross distribution from box 1 and the distribution code G in box 7.

If you're filling out a form 1040, put the total from box 1 in box 16a, put zero or leave blank box 16b, and write "ROLLOVER" between "b Taxable amount" and box 16b.
Thank you. I didn't even do that.
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Old 03-15-2017, 02:19 PM   #203
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I called the only broker I didn't have a 1099 for yet, they said mailed this week. I'll file end of March / early April like always.
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Old 03-15-2017, 02:28 PM   #204
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Did my taxes on March 3rd, the day after getting my last tax form. Low income so paid almost nothing for federal or state tax but self employment tax is a killer. I went back to W2 income this year. Taxes will be far less complicated now and my employer can pay half the FICA.
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Old 03-15-2017, 02:36 PM   #205
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Just did 2016 with Turbotax Deluxe ($40 Walmart). The return included stock sales which got imported from the broker. Also a very small Roth conversion. Deluxe works Premier was not needed.

Fed taxes owed $0 thanks to qualified dividends.
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Old 03-15-2017, 03:09 PM   #206
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Finished my taxes today using TT Premier(thanks Fidelity for a free copy). Small refunds due and will apply to first qtr estimated taxes. Will sit on it a couple of weeks as I have received corrected forms in the past. I always feel better when getting the grunt work done. Might have to pop a top on a cold one.
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Old 03-15-2017, 04:16 PM   #207
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Thank you. I didn't even do that.
Well, if you do, I hope you don't get audited this time! I'm doing exactly the same on my taxes for 2016, so my hope is also for myself as well!
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Old 03-15-2017, 04:28 PM   #208
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went back to W2 income this year.
Dull, boring and conventional.

But definitely simpler and less stressful. Here's hoping you made a good move.
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Old 03-15-2017, 05:03 PM   #209
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Dammit! Fidelity still hasn't posted their foreign tax info for individual investors for their mutual funds! Only, the corporate version has been posted for a while.

We're all checked, reviewed, etc. just waiting on this one last document.
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Old 03-15-2017, 05:43 PM   #210
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Originally Posted by SecondCor521 View Post
If you're using a tax program, make sure to enter the 1099-R, with the gross distribution from box 1 and the distribution code G in box 7.

If you're filling out a form 1040, put the total from box 1 in box 16a, put zero or leave blank box 16b, and write "ROLLOVER" between "b Taxable amount" and box 16b.
Forgot about mentioning the "ROLLOVER" note on the tax form. Thanks.
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Old 03-15-2017, 09:43 PM   #211
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Well, if you do, I hope you don't get audited this time! I'm doing exactly the same on my taxes for 2016, so my hope is also for myself as well!
I just input the two 1099-Rs into TurboTax and the word ROLLOVER is filled by TT below line 16a. It's a great feeling. I didn't know I had to do that, now I know.
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Old 03-15-2017, 11:03 PM   #212
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I just input the two 1099-Rs into TurboTax and the word ROLLOVER is filled by TT below line 16a. It's a great feeling. I didn't know I had to do that, now I know.
The rule of thumb I use is "if I get a 1099, I enter it". Else when IRS system does its automatic match against all the tax documents filed by the payers for my SSN, it will trigger red flags/audit notices.
Tax software (for the most part) is good enough to figure out what part is taxable and where it should end up on the 1040.

This is also how we have been trained as IRS certified taxaide volunteers.
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Old 03-15-2017, 11:11 PM   #213
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That brings me to another question....... 2 actually.

1) Are distributions from IRAs considered Earned income or passive?
2) Are SS Payments Earned or Passive?
In IRS termilogy IRA distributions are not earned income. SS payments are also not earned income. But maybe you don't want IRS definition?

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1) earned
2) AFAIK neither, I'd term them "active"
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Old 03-16-2017, 04:43 AM   #214
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Yes, IRA distribution is not earned income in IRS book. It gets treated differently than wages, for example. But it is income.

My state return was accepted, a few days after Fed return.
So far, glad we e-filed state this year.

Now to complete in-laws returns.
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Old 03-16-2017, 06:58 AM   #215
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Taxes done. AARP volunteers at the local library does them for free. Simple enough for them to do on their program with SS, pensions, dividends, and interest with standard deduction. I used to do it myself on the free program from Vanguard to compare but I'm tired of that so I just bring in may paperwork and they file for me after we review. Nice freebie.

Cheers!
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Old 03-16-2017, 07:37 AM   #216
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After receiving all the 1099s and other forms, and discovering a few small things specific to my return, I will end up owing a lot less than I thought back in January. To better balance my cash flows, I usually wait until I receive my April dividend payments before sending out my tax returns. But because I will owe far less than usual (less than $200 between both returns), I have printed out my tax forms this week and will mail them out today at the post office.


I also finished up my friend's returns. He, too, ended up owing very little on his state return and decided to roll over into his 2017 return the small amount he'd be receiving as a refund on his 2016 return. I'll be mailing out his returns from the post office, too.


My LF told me she wants to get her taxes done, so I will finish up hers this week and she will mail them out within a week. She owes a small bundle to the feds because she is intentionally underwithholding taxes on her paycheck and doesn't wish to change it. (She is not anywhere near owing penalties.) She is due a tiny refund from the state, so she has also chosen to roll over that small amount into her 2017 state tax return.
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Old 03-16-2017, 08:39 AM   #217
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In IRS termilogy IRA distributions are not earned income. SS payments are also not earned income. But maybe you don't want IRS definition?
+1

I would think earned income is subject to FICA and Medicare taxes. Pensions, IRA distributions, SS benefits, and other passive income is not subject to those "payroll" taxes.
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Old 03-16-2017, 01:47 PM   #218
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I have another tax question regarding overseas pension distribution. Pension is like an IRA or 401k, except I didn't receive a form like 1099-R. Tax was withheld. Should I create a 1099-R, TT has this option. Or should I just put them in 1040 and then claim foreign tax credit. The last option is what I have, but with the 1099-R option, I get more money back, plus there is an official record or paper trail for that money. Any comment or experience in dealing with this type of situation is greatly appreciated.
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Old 03-16-2017, 02:50 PM   #219
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Filed my Federal taxes on 2/23 and received my refund in my account on 3/3. Used TT ($25 @ USAA). EZ PZ.
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Old 03-16-2017, 03:20 PM   #220
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I have another tax question regarding overseas pension distribution. Pension is like an IRA or 401k, except I didn't receive a form like 1099-R. Tax was withheld. Should I create a 1099-R, TT has this option. Or should I just put them in 1040 and then claim foreign tax credit. The last option is what I have, but with the 1099-R option, I get more money back, plus there is an official record or paper trail for that money. Any comment or experience in dealing with this type of situation is greatly appreciated.
I've been in receipt of an overseas pension for 10 years and the first few years I created a substitute 1099-R with associated form 4852. However this is really aimed at US firms that haven't issued a 1099-R (on the form you have to explain what steps you've taken to obtain a 1099-R and the fields don't support a foreign address etc.) A few years back I heard that it is much simpler and acceptable to add it to line 21 on the 1040 as other income. The tax is identical whichever method you choose and the IRS don't seem to care as I've never been questioned on it whichever way I choose to report it.
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