Questions, completing income return by hand

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Questions, completing income return by hand

Postby Gardener » Sun Feb 10, 2013 12:26 pm

I am doing my own taxes this year manually to get a better feel as to what exactly is driving my income tax bill. If the material in this post is too granular and the post is removed, I will understand.

For the income part of Form 1040

1. Is box 7 on the 1040 (wages, salaries, etc) computed by simply adding up box 1 of me and my wife's W-2's?

2. Regarding box 15a and 15b on form 1040...I have added up the gross distributions and they come out to $40,777, however only $17 were taxable. Would I simply put the 40,777 in box 15a and $17 in box 15b?

Thanks for helping to verify if I am on the right track or if any corrections are needed.
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Re: Questions, completing income return by hand

Postby cheese_breath » Sun Feb 10, 2013 12:31 pm

Do it by hand first as you are doing, and you should learn a lot. Then run it through one of the tax programs as a double check before submitting it.
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Re: Questions, completing income return by hand

Postby runner9 » Sun Feb 10, 2013 12:32 pm

Or, do the reverse: save a lot of time and use a computer program, then study the printed return to see what lines drive what numbers. Of course it will already be submitted so it will only be knowledge for 2013.....
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Re: Questions, completing income return by hand

Postby livesoft » Sun Feb 10, 2013 12:36 pm

1. Yes, unless you have a corrective distribution to a 401(k).
2. Yes, but do not confuse line 15 and line 16. Also isn't there an associated form where these numbers get transfered from (Form 5329?).
It's all about short-term opportunistic rebalancing due to a short-term change in one's asset allocation, uh, I mean opportunistic rebalancing, uh I mean rebalancing, uh I mean market timing.
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Re: Questions, completing income return by hand

Postby Sidney » Sun Feb 10, 2013 12:38 pm

The IRS Publication i1040 is helpful. For most people, Line 7 is typically W2 income. There are exceptions like 1099R income for someone who is disabled and receiving a distribution from a retirement program prior to reaching the normal retirement age. I think unreported Tips are also included on Line 7 but I haven't looked at the instructions recently.
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Re: Questions, completing income return by hand

Postby Toons » Sun Feb 10, 2013 12:45 pm

Gardener wrote:I am doing my own taxes this year manually to get a better feel as to what exactly is driving my income tax bill. If the material in this post is too granular and the post is removed, I will understand.

For the income part of Form 1040

1. Is box 7 on the 1040 (wages, salaries, etc) computed by simply adding up box 1 of me and my wife's W-2's?

2. Regarding box 15a and 15b on form 1040...I have added up the gross distributions and they come out to $40,777, however only $17 were taxable. Would I simply put the 40,777 in box 15a and $17 in box 15b?

Thanks for helping to verify if I am on the right track or if any corrections are needed.


Regarding Question 1.
Page 20(Line7) in attached link

Question 2
Page 24/25 15a 15b

http://www.irs.gov/pub/irs-pdf/i1040.pdf
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Re: Questions, completing income return by hand

Postby Gardener » Sun Feb 10, 2013 12:52 pm

This is helpful.

Thank you for the link and the reference to the i1040. I will use them.

I am going to see if I can order the pub 17 from IRS. Its kind of nice just to have the guidance right in front of you.

Ill probably come back and ask additional questions when I get to the Adjustable Income section of the 1040 in a few days or so.
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Re: Questions, completing income return by hand

Postby Toons » Sun Feb 10, 2013 12:55 pm

Gardener wrote:This is helpful.

Thank you for the link and the reference to the i1040. I will use them.

I am going to see if I can order the pub 17 from IRS. Its kind of nice just to have the guidance right in front of you.

Ill probably come back and ask additional questions when I get to the Adjustable Income section of the 1040 in a few days or so.


At your service

http://www.irs.gov/publications/p17/index.html

:thumbsup
Last edited by Toons on Sun Feb 10, 2013 12:57 pm, edited 1 time in total.
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Re: Questions, completing income return by hand

Postby livesoft » Sun Feb 10, 2013 12:56 pm

Gardener wrote:I am going to see if I can order the pub 17 from IRS. Its kind of nice just to have the guidance right in front of you.

Save paper and get it online. Simply type "pub 17" into your browser and its search should get you right there.
It's all about short-term opportunistic rebalancing due to a short-term change in one's asset allocation, uh, I mean opportunistic rebalancing, uh I mean rebalancing, uh I mean market timing.
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Re: Questions, completing income return by hand

Postby kaneohe » Sun Feb 10, 2013 1:22 pm

how did you determine the amount for 15b? what happened to the rest of the funds in 15a?
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