Posted Monday, February 1, 2010
W-2s and 1099s are filling mailboxes across the country this week. And, this year, as every year, there's lots of opportunity for errors navigating these complex rules and regs. Plus, there are changes to the tax code for 2009 returns regarding investment income for children and medical savings accounts. There are new tax breaks such as the first-time home-buyer tax credit and one-year only deductions for sales tax on new cars. We’ll spend the hour with a pair of tax specialists taking your questions. Is this the year to do your own taxes? We'll get a cost-benefit analysis.
Please follow our community discussion rules when composing your comments.
Please ask the guests to comment on using common tax prep software versus using a professional preparer.
Follow up for when you can have access to monies that are invested for retirement.
I was recently advised that once you reach age 59.5 that anyone can have access to their retirement money without penalties.
Most people, including your guests, fail to consider that when investing in a Roth IRA, you have less to invest because you must use investable money to pay tax. On the other hand, with a Traditional IRA, ALL of your money, including money that you would have paid in tax with a Roth IRA, grows over the years to maybe more than handle the tax in years ahead.
This makes it all much of a mind bender for me....
I am a new attorney who works full-time for a nonprofit. In 2009, I provided legal services for clients who had relatively small matters , like minor personal injury cases, wills and probate for which I have not yet billed/received income. Also, I have done some of this work pro bono. How do I reflect this activity on my taxes? I am not separately incorporated or organized as a private attorney.
I contributed to my HSA in 2009 but I am concerned I may have over contributed. My original trustee, BlueHealth Bank, transferred my account to Bancorp Corp. since they did not want to handle HSAs anymore. How do I withdraw the excess contributions and will I have to pay a penalty if I withdraw it before April 15?
Local public libraries are major distribution points for local, state and federal tax forms....
And if they don’t have the pre-printed form you need in stock, they will help you print them off the Web for free.
I am 63 with an annuity. I am receiving SS. On the 1040, to figure taxable SS, it seems like this value increases depending on how much i might take out of the annuity each year. I am taxed on the amtount that i take out of the annuity and also my taxable income increases due to the higher taxable ss. it seems like i am taxed twice on the amount that i take out of the annuity. am i figuring this correctly? thank you
For 2009 I had W-2 income,taxable pension,and Social Security,I came out OKAY.But for 2010 I will not have W-taxes deducted to off set.At what level of income from Social Security do taxes become an issue?
unless I missed it I didn’t hear mentioned the special rules they adopted for deducting Haiti contributions for 09 even though made in 10 which I bet most people do not know about.
Libraries are permitted to charge for printing the tax forms off the Internet. Your previous caller said that prints from the IRS website are free at “the library”. That is not necessarily so.
is federal tax credit for new home buyers....per person or per house..
in other words can two unrelated buy a house and qualify for $16,000. total..
On Schedule C line 2: Do medical premiums include all even the long term care premiums which are listed under lines d & e?
I’ve refinanced our home with the mortgage in my name only. The original mortgage was in my spouse’s name only. Both are on the deed. Does the new mortgage qualify for the 6500.00 tax credit?
Can you please ask your guests about income on 1099-MISC. I was an executrice for my aunt’s estate last year and received a commission for this. I thought I would be taxed at the same rate as my husband’s income. We usually get money back from the government so I didn’t withhold extra money.
I plugged the numbers into my TurboTax program and it looks like I am taxed at 40% and must pay self employment taxes. Now I am worried about paying fines because we under withheld last year. Is there any other way to declare this income and avoid penalties?
I listened to part of your program this morning and was distressed by two callers, for all accounts and purposes, worked 30 years and received or elected to receive their retirement funds in lump sums and had not thought about managing those funds. Hopefully, you were able to talk with these gentlemen offline to guide them to a knowledgeable source for their non-tax financial issues.
If I extrapolate their situation to other boomers about to retire, their is a whole large population that is underserved re financial education.
Perhaps you need a program on financial planning and tax avoidance.
Watch the Sound of Ideas during the broadcast - view now! Live video stream available during normal broadcast, Mon-Fri, 9-10 AM (EST).