Taxes 
8
comments

Form 8606: Non-deductible IRA Contributions

I know tax day is less than a week away but this is a last minute reminder for everyone who made a nondeductible contribution to an IRA – don’t for Form 8606. Form 8606 covers contributions to Nondeductible IRAs and is important because it will tell the IRS how much you’ve contributed, on a nondeductible basis, to an IRA. When you go to take disbursements or perhaps convert it to a Roth IRA, the Form 8606 will make sure you don’t pay taxes twice.

It’s crucial.

What if you forgot to file it for past years? Oops. Fortunately, you can still file it for past years but there’s a $50 penalty that can be waived if you have a good reason. You can file a Form 8606 beyond the normal three years (which is how long you have to amend a tax return) and it doesn’t require a Form 1040X (the amended tax return form).

You will need to file one for each year that you made a non-deductible contribution and there isn’t really a list of “good reasons” why you forgot, so good luck with that (it’s a good idea to talk to a tax professional about this).


 Taxes 
12
comments

What is Form 6251: Alternative Minimum Tax

Form 6251 AMTForm 6251: Alternative Minimum Tax (Individuals) is the form taxpayers must fill out to determine whether or not they are subject to the dreaded Alternative Minimum Tax (AMT). The AMT is another way of calculating your tax liability and those subject to its wrath will see their tax liability increase, as certain deductions are disallowed under AMT.

As scary as the AMT itself is, the form is only two pages with 54 “questions.”

Simple, right?

(Click to continue reading…)


 Taxes 
8
comments

What is a Form W-2?

Form W-2The Form W-2 Wage and Tax Statement is a form that your employer sends you near the beginning of the calendar year. By law, they are required to mail it by January 31st, barring any special extensions, so that you have ample time to meet the April 15th income tax filing deadline.

When your employer sends you a copy of your W-2, they will also send a copy to the IRS. It’s important that, when you’re filling out your taxes, you enter this information correctly. You will be audited if the information on your return doesn’t match the information the IRS received from your employer.

(Click to continue reading…)


 Taxes 
10
comments

What is the Tax Form 1040?

Form 1040Welcome to the inaugural post in our Tax Form series, a new, somewhat dry, tax series in which we take a look at all the various tax forms the IRS uses. I know it sometimes isn’t the most exciting of topics but understanding the various tax forms is absolutely crucial if you want to do your taxes. Many of you will probably be filing electronically, so software will help you decide which forms to use and how to fill it out, but there are still a few hold-outs out there who insist on filing by paper.

If you are one of them, then this new series is designed for you! (cue applause!)

The Tax Form 1040 is the cornerstone of your tax return. There are two alternatives in the Form 1040A and the Form 1040EZ, which are available to a subset of taxpayers, but the Form 1040 is the long form that many people think of when you talk about your federal personal income tax return. Form 1040A is basically Form 1040-Lite and Form 1040EZ is Form 1040-SuperLite.

(Click to continue reading…)


Advertising Disclosure: Bargaineering may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website.
About | Contact Me | Privacy Policy/Your California Privacy Rights | Terms of Use | Press
Copyright © 2014 by www.Bargaineering.com. All rights reserved.