Order TurboTax Now: How to forecast W-2?

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ddoubleu
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Joined: Sun Mar 02, 2014 6:17 pm

Order TurboTax Now: How to forecast W-2?

Post by ddoubleu » Fri Oct 10, 2014 10:02 pm

I'm thinking about purchasing TurboTax now instead of after the new year like I always do. Reason being is that I want to figure out how much more I need to save to my 401k in order to lower my MAGI enough so that I can contribute to a Roth IRA. But I'm stumped as to how to forecast what my W-2 will look like. Is it possible? If I don't change anything as far as my pay goes, what math do I need to do based on pay stubs to get a W-2 that will be in the same ball park as the W-2 I get from my employer?

livesoft
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Re: Order TurboTax Now: How to forecast W-2?

Post by livesoft » Fri Oct 10, 2014 10:14 pm

Take most recent pay stub. How many more pay stubs like it will you get 5? 6?

Look at the YTD on the pay stub. Add in what the upcoming pay stubs will contribute to the YTD numbers. Almost done. Some things may be different: Did you reach a FICA tax limit? Did you reach a 401(k) contribution limit? Will you get a Christmas bonus? Adjust for things like that. Done.
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plannerman
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Re: Order TurboTax Now: How to forecast W-2?

Post by plannerman » Sat Oct 11, 2014 6:31 am

ddoubleu wrote:I'm thinking about purchasing TurboTax now instead of after the new year like I always do. Reason being is that I want to figure out how much more I need to save to my 401k in order to lower my MAGI enough so that I can contribute to a Roth IRA.
If you have the 2013 desktop version of Turbotax it has a "What-if"" worksheet that will help you do this. You do not need to purchase the 2014 version unless you want to. I'm not familiar with the online version of TurboTax and don't know if it has this worksheet or not but I suspect it does.

plannerman

Sagenick48
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Joined: Sat Nov 02, 2013 8:22 am

Re: Order TurboTax Now: How to forecast W-2?

Post by Sagenick48 » Sat Oct 11, 2014 1:21 pm

Assuming you have a copy of last years turbotax all you have to do is make up a dummy tax return using a new name and input basic data to get a detailed draft of what your tax return will look like. it appears that there will be no significant tax law changes this year so you will get an accurate estimate of what next year will look like. I do this each year and then buy it when it comes out in December to check again. However my K-1s and 109s never quite match my estimates so you are alway at risk of that.
The market goes up, the market goes down.

Sagenick48
Posts: 338
Joined: Sat Nov 02, 2013 8:22 am

Re: Order TurboTax Now: How to forecast W-2?

Post by Sagenick48 » Sat Oct 11, 2014 1:21 pm

Assuming you have a copy of last years turbotax all you have to do is make up a dummy tax return using a new name and input basic data to get a detailed draft of what your tax return will look like. it appears that there will be no significant tax law changes this year so you will get an accurate estimate of what next year will look like. I do this each year and then buy it when it comes out in December to check again. However my K-1s and 109s never quite match my estimates so you are alway at risk of that.
The market goes up, the market goes down.

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