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Asyouwish

Yes I have evidence that the money is taken out of the account. What I want to know is, is there some official tax form that gets submitted proving this? Like, I get all these other statements showing interest earned, taxes paid, that kind of form! The IRS does not send thank you notes. When you ma...

Asyouwish

Look at line 30. If line 30 is zero, then you successfully removed it. Then check the math in your refund, if you are getting one. Or check the math for your bal due.

Asyouwish

https://thehill.com/policy/finance/5352 ... approaches

So apparently millions of paper returns are still in process. The envelopes have been opened, so he says.

Asyouwish

People need to understand the difference between “accepted” and “processed”. Two completely different things. Accepted means your transmitted return was acceptable as far as your basic name and SSN and dependent SSN and no major math errors. That is all. Then the IRS reviews the return through their...

Asyouwish

CMBB wrote: ↑Fri Feb 19, 2021 1:51 pm If I take $50k out of my Vanguard IRA, can I pay the taxes over 3 years?

Not that it matters, but the money would be used to purchase real estate.

Thank you

Did you take a CARES Act distribution in 2020? If yes, you can split over three years.

For 2021, no such option is available.

Asyouwish

If anyone is having trouble with the prior year AGI, here is a FAQ that describes three scenarios. Real AGI if return fully processed. Take from line 8b Use $1 if a non filer form was used last year to get the first stimulus. Use zero if you did not file or the 2019 is still unprocessed. See QA5 htt...

Asyouwish

I recommend you create an IRS account and look at your account transcript for 2020. This is where the stimulus payments are posted. There are some checks still being issued by mail. There were a lot of problems with TurboTax and others where the refund goes to a third party bank so TurboTax can take...

Asyouwish

I retired last year from the federal gov. I will turn 65 this May. I have a hard time deciding whether I should get Part B of Medicare. Wife (59) works in the private sector and will continue working for a couple more years. Currently we have United Healthcare under FEHB. Should I get Medicare Part...

Asyouwish

https://www.federalretirement.net/survivorconcerns.htm. The 25% doesn’t get advertised, but it is an option for FERS. I think the “full” option is for CSRS only. Please do your research. My understanding is that FERS offers 50% or 25% or zero.

Asyouwish

I think you did not break the rule. Yes, you may get one or more 1099-R. But it should have the code for a direct rollover. https://www.irs.gov/retirement-plans/plan-participant-employee/rollovers-of-retirement-plan-and-ira-distributions Read the once per year rule. The one-per year limit does not a...

Asyouwish

My husband and I applied for Part B in early November and it was effective by December 1st. Cards came in the mail timely. So one month before should be fine. If you apply too early, then you have to request a specific start date. Otherwise the SSA processes it effective the following month.

Asyouwish

Yes, code 4 is correct for any inherited (or due to death) distributions. It has an automatic exception to the 10% tax for early distribution. So yes, it does matter if you are under age 59 1/2.

Asyouwish

The magic language would be tax year, tax increase, penalty amount (if any) name, address and SSN. Something like “I agree with the CP2000 for tax year xxxx for a tax increase of $xxxx” signed and dated.

Asyouwish

I suppose if your POA is for her (surviving spouse) then you can sign. Is it a “durable” POA? If so include a copy. Otherwise the IRS wants their own Form 2848 POA which gets input into their files database. A durable POA is not an IRS form and must be submitted with the response. Yes, payment is ki...

Asyouwish

The surviving spouse can and should sign the response form. Under spouse signature area just put “deceased”. You can include a copy of the death certificate if you want. But the IRS gets the DOD from social security eventually. They may already have it in their data base but the CP2000 may not have ...

Asyouwish

1) ask the IRA custodian. 2) yes, all distributions are qualified and tax free. You meet the rules for 5 years and beneficiary. See Publication 590-B What Are Qualified Distributions? A qualified distribution is any payment or distribution from your Roth IRA that meets the following requirements. It...

Asyouwish

You can withdraw your $17,000 contributions at anytime tax and penalty free. The gains may be taxable and subject to the 10% depending on your age. Publication 590-B.

Asyouwish

In 2018 I was the beneficiary of my father’s IRA which was held at a small bank that has since been acquired. I had the bank perform a trustee to trustee transfer directly into an Inherited IRA beneficiary account at a large brokerage house. A 1099-R is not issued for this situation. In late Decemb...

Asyouwish

The notice should have an address on the first page, top left. Send your letter and documentation there. When you got the first notice (CP2000j did you return the response form with your signature of agreement? A CP2000 is only a proposal. You must agree (or disagree) by returning the response form....

Asyouwish

If you made a payment using your SSN, and the joint return has your spouse as the first name and SSN, that is a problem for the IRS computers. On a joint return, the primary SSN is the controlling SSN and an account is created under that SSN for a joint return, the secondary taxpayer doesn’t really ...

Asyouwish

If you wait until electronic filing opens up again in late January, you can efile the 1040X. Much faster. But, you must also have efiled your original 2019 return. I think most tax software companies should support this.

Asyouwish

I’m guessing this started with a CP2000 notice. The 1099-R was not properly input on the Form 8606. You can dispute this with a letter along with the properly completed 8606. The tricky part is getting this documentation into the correct hands. You need to request a Reconsideration. This request mus...

Asyouwish

https://www.irs.gov/forms-pubs/due-date ... ly-15-2020

You may need to appeal their finding.

Asyouwish

I believe you want to get the end of the pay period as close to the end of the month. This maximizes your earnings and the annuity payment which should start the next month. So for example if you retire April 24, 2021 it’s the end of a pay period but your annuity start date is May 1. You essentially...

Asyouwish

Check this for the best dates to retire. https://www.myfederalretirement.com/best-dates-retire/ You can add your spouse onto your FEHB. If she loses health coverage due to her retirement or loss of job, that is considered a life event and she can be added immediately without waiting for open season....

Asyouwish

Why not just do a Roth conversion of the $2500. You pay the tax but save the 10%. So make your nondeductible contribution and convert the whole balance. This will empty the account and pave the way for future back door conversions.

Asyouwish

Can’t predict if they will issue a 1099-R or not. But if they do and it was a direct rollover, then the code should be G. This tells the IRS it was a direct rollover. It is not taxable. But you may still need to report it on your tax return with the gross amount on the gross line and zero on the tax...

Asyouwish

Did your reply disagree and provide supporting documentation? Depends what the CP2000 was about. Normally within 60-90 days you should get a response consisting of either another CP2000, letter asking for more information, closing letter, or certified notice of deficiency. Since it is now November, ...

Asyouwish

From Publication 969. “ For HSA purposes, expenses incurred before you es- tablish your HSA aren’t qualified medical expenses. State law determines when an HSA is established. An HSA that is funded by amounts rolled over from an Archer MSA or another HSA is established on the date the prior account ...

Asyouwish

I just got my refund from an amended 2016 return that I filed in late March. They sent me a huge check in the mail. Not really happy about that. I thought I had given them my checking account info. I'll have to check my records. Amended returns cannot do direct deposit. There is no place on the For...

Asyouwish

I e-filed before the pandemic, in February, and got my refund within a week. I expect next year's refund will be delayed, unless they manage to process the backlog until then, but I doubt it. An e-filed return with no problems should process through the computer with no human intervention. So unles...

Asyouwish

Good day to all. Just need some general information regarding taxes. The scenario is listed below: 1. My wife is a teacher requesting a refund from PEBA (south carolina) which manages the retirement fund. i.e we are trying to pull her retirement funds (not roll over) to our private account so that ...

Asyouwish

Look at Form 8606 in particular Part I. Line 6 is where you would list the FMV of all her IRAs. Follow down through the calculations. Then see how much is taxable. Yes, it will be taxable. If you did the conversion this year, then when you file next year is when you file the 8606 and pay tax. Unfort...

Asyouwish

I’m assuming you can’t do a direct contribution to a Roth because of income limits. So a back door Roth is your option. By definition a back door Roth is taking money in a TIRA and converting it. What happened is that your money is no longer “in” an IRA since you accidentally moved it to a regular a...

Asyouwish

retiredjg wrote: Just taking a wild guess, I think converting to near the top of the 12% bracket is something of an easy choice. It seems unlikely to me that you will ever be in a bracket lower than that. You might want to stay under that bracket limit some in order to maintain your 0% rate on long...

Asyouwish

You should be able to do this however you need to as long as you make the transfer back to the TIRA in 60 days. The conversion does not have a time frame. What will happen is the first transaction is treated like a distribution. You will get a 1099-R. So you must do a 60 day rollover to get that mon...

Asyouwish

At the time the IRS “looked” at your account, if your 2019 was not fully processed, then they looked at 2018. Determined your income was over the limit. No stimulus. No second look. So even though your 2019 appeared to qualify, it wasn’t used due to the timing. So now if your 2020 income is under th...

Asyouwish

Also a life event would allow the spouse to be added on outside of open season. Losing a job and/or health insurance is a life event. My husband was on his own plan in private industry. He was laid off. After his cobra ended I added him to my federal plan before open season. It became effective imme...

Asyouwish

The Form 5498-SA may be the problem if the IRS doesn’t show that in their data base. I would respond to the notice with a copy of your 5498-SA along with the 8889 again. See if you can create an IRS account and check your “wage and income” transcript. Look for the 5498. If the online transcript syst...

Asyouwish

the bucks will magically return when I file the done in 2021 for 2020 return. Yes, you claim it on the Form 1040 which is not finalized. There is a draft version out there. https://www.irs.gov/pub/irs-dft/f1040--dft.pdf Stimulus checks and the Recovery Rebate Credit According to the draft, a new Li...

Asyouwish

Interesting the transcript has cents zeroed out. I wonder if there is automated scanning and that does that. I wonder if rounding error could cause a dollars difference somewhere and get flagged. Dollar rounding is accounted for. The IRS computer allows a tolerance of $1. So if you have $15.88 divi...

Asyouwish

If there was no AGI change, TXI change or tax change what are you expecting to see? Your account transcript should have a TC290 for zero. That means a no change adjustment was made to your account, which is correct. The TC290 code means the paper was received. The 8606 was sent off to storage/files,...

Asyouwish

Here it is. From the IRS under “missing payments” https://www.irs.gov/coronavirus/get-my- ... 5450128602

Asyouwish

There was a problem with the May 22 date. I don’t have the source right now. But do a google search. Something about a glitch and they were being rescheduled.

Asyouwish

You should call the IRS. I believe 5-7 days is more normal. Electronic payments should just post without human intervention. Did the payment come out of the bank? Did you check all tax years to make sure it was directed to the correct year?

Asyouwish

No need to amend. The IRS knows the code G is a non taxable rollover. You will not be contacted about this. Amending your return will be a waste of IRS time and resources.

Asyouwish

Amended returns take 16 weeks to process. That’s in a normal year. This is a pandemic year. All bets are off on processing times. As said earlier, normally an amended return is filed after the original return is processed and done. What will happen to you now is collection notices will arrive every ...

Asyouwish

Usually FIFO unless there is a problem. If your son filed for the first time, his return could have been selected by the ID verify filter. First time filers are scrutinized due to potential fraud or ID theft. He should call the 1040 toll free number and follow up. E-filed returns without any proble...

Asyouwish

[/quote]My son e-filed in mid-march, and his status still say "processing". I e-filed around the same time and got my refund in 3 weeks. Not sure what criteria the IRS uses to prioritize the order of processing returns. [/quote] Usually FIFO unless there is a problem. If your son filed for...

Asyouwish

You can see the changes on the return transcript. Create an account on the IRS website. Retrieve your “tax return transcript”. It will show Per Return figures and Per Computer figures. It should be clear where they made the changes because the per return and per computer will be different. The other...

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