- Oct 30, 2000
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By them working part-time jobs, their taxable income should be fairly low.
Use either a web based package, and check what each child would be as a stand-alone using the educational credits and then what each child would be filing as a dependant. Then you look at your situtation with the kids as dependants and you getting the educational credits.
Do what is then most benificial for the family unit.
This is about Lifetime Learning Credits ------
I heard that you can claim whatever you withdrew from savings accounts to pay for tuition on Form 8863. Basically, if you wrote a check for $5000 for tuition, then count it as a Qualified Expense. Does it matter where that money comes from (ie from loans)? I don't know if I have been misinformed.
Here is my situation in particular, I attend a private graduate school, so I have high tuition. I sold some stock in order to cover tuition and put the proceeds into my bank account. This would have covered tuition. At the last minute, I decided to go ahead and get some education loans, which was funded directly to my bank account as well. I paid off my tuition. In this case, about $7K.
Can I say that the money I used for tuition was from the sale of the stocks? Does it even matter whether or not I took loans?
I heard that you can claim whatever you withdrew from savings accounts to pay for tuition on Form 8863. Basically, if you wrote a check for $5000 for tuition, then count it as a Qualified Expense. Does it matter where that money comes from (ie from loans)? I don't know if I have been misinformed.
Here is my situation in particular, I attend a private graduate school, so I have high tuition. I sold some stock in order to cover tuition and put the proceeds into my bank account. This would have covered tuition. At the last minute, I decided to go ahead and get some education loans, which was funded directly to my bank account as well. I paid off my tuition. In this case, about $7K.
Can I say that the money I used for tuition was from the sale of the stocks? Does it even matter whether or not I took loans?
- Oct 30, 2000
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Where the money for tutition comes from does not matter.
Only concern is if there is scholarship/grant $$ involved
Jeff7181
Lifer
- Aug 21, 2002
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Last year I cashed out two mutual funds, around $2000 each. I'm using TaxCut to do my taxes and it's asking for the date and amount that was originally invested. I don't have that information because those two particular mutual funds were started for me by my grandfather many years ago. Do I call the mutual funds and have them send me the paperwork? Or is there another way I should fill out the form?
- Oct 30, 2000
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You need to get the price of the funds when they came under your control. That is the only way to know what the capital gain was. Also, most funds may pay out dividends and taxes during the year. That is informatin that you should put on your Schedule B every year when you file.
f you know the date (approx), you can go into the Web site of the mutual fund and should be able to get that info.
How do I determine the taxable amount of a minimum distribution from an inherited IRA?
According to TurboTax, I need to know if my father ever made non-deductible contributions to his IRA in order to figure out its basis. Box 2A of the 1099-R shows the distribution, but Box 2B is checked "Taxable amount not determined."
Do I really have to search through all my father's tax returns, as TurboTax suggests, in order to arrive at the IRA's basis? The two inherited IRAs I'm dealing with were opened in the 80's and I don't have access to all those Federal returns.
Could you give me a quick explanation of a non-deductible contribution? From what I gather, income can reach a threshold at which IRA contributions are no longer deductible. So although you get the advantage of IRA growth without taxation, you don't get to deduct your contributions. Is that it in a nutshell? How then does this affect the basis?
(EDIT): Only one account is an inherited IRA. The other is an inherited 403(b)(7) plan. But I did take an MRD from both plans, as was required. And both 1099-Rs show "Taxable amount not determined."
According to TurboTax, I need to know if my father ever made non-deductible contributions to his IRA in order to figure out its basis. Box 2A of the 1099-R shows the distribution, but Box 2B is checked "Taxable amount not determined."
Do I really have to search through all my father's tax returns, as TurboTax suggests, in order to arrive at the IRA's basis? The two inherited IRAs I'm dealing with were opened in the 80's and I don't have access to all those Federal returns.
Could you give me a quick explanation of a non-deductible contribution? From what I gather, income can reach a threshold at which IRA contributions are no longer deductible. So although you get the advantage of IRA growth without taxation, you don't get to deduct your contributions. Is that it in a nutshell? How then does this affect the basis?
(EDIT): Only one account is an inherited IRA. The other is an inherited 403(b)(7) plan. But I did take an MRD from both plans, as was required. And both 1099-Rs show "Taxable amount not determined."
- Oct 30, 2000
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Best bet is that he never made non-deductible contributions. However, you should do the legwork to make sure as possible.
IF you put more than the max per year into an IRA, the overage is non-deductible against that years income tax.
Also, if one puts funds into an IRA and is covered by a pension plan, those funds are not deductible.
IF you put more than the max per year into an IRA, the overage is non-deductible against that years income tax.
Also, if one puts funds into an IRA and is covered by a pension plan, those funds are not deductible.
Please see the edit for my previous post. Would my father's 403(b)(7) have counted as a pension plan, thus making the IRA contributions non-deductible?
From your reply, it sounds like non-deductible amounts are simply an overage of the contribution allowance. Is there a limiting income threshold at which all IRA contributions become non-deductible?
From your reply, it sounds like non-deductible amounts are simply an overage of the contribution allowance. Is there a limiting income threshold at which all IRA contributions become non-deductible?
Here is a question, my wife is an american who lives and worked in canada for awhile. She has no US income in 2004. She will file a canadian tax return. What does she have to file in the US?
- Oct 30, 2000
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Me and my gf bought a co-op apartment november and we received this 1098 form from the management office. Its only for 200 dollars of interest but my question is, we took a 15 year mortgage worth 100k and we pay the bank every month for the mortgage, should I not be receiving something from the bank instead of the mgmt board? I am also confused that nowhere in turbotax they allow me to fill the 1098 form data...
and we purchased the apartment as co-owners. We're not married but on the mortgage both our names are on it and we are filing taxes separately (NY State, NYC). How can the mortgage interest be split equally? I know this year I probably can't write anything off but what about next tax year 2005?
TIA
and we purchased the apartment as co-owners. We're not married but on the mortgage both our names are on it and we are filing taxes separately (NY State, NYC). How can the mortgage interest be split equally? I know this year I probably can't write anything off but what about next tax year 2005?
TIA
- Nov 19, 2001
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Not exactly why the apartment management would send you a 1098. Probably should ask them directly.
As for splitting the interest, you can do this easily. From the IRS website:
More than one borrower. If you and at least one other person (other than your spouse if you file a joint return) were liable for and paid interest on a mortgage that was for your home, and the other person received a Form 1098 showing the interest that was paid during the year, attach a statement to your return explaining this. Show how much of the interest each of you paid, and give the name and address of the person who received the form. Deduct your share of the interest on Schedule A (Form 1040), line 11, and print ?See attached? next to the line.
Similarly, if you are the payer of record on a mortgage on which there are other borrowers entitled to a deduction for the interest shown on the Form 1098 you received, deduct only your share of the interest on Schedule A (Form 1040), line 10. You should let each of the other borrowers know what his or her share is.
Jeff7181
Lifer
- Aug 21, 2002
- 18,368
- 11
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I tried getting the info from the mutual funds and they don't have it on their website. Some of my statements show that it's been around since 1992. Should I check the price in '92, and figure out about how much was originally invested based on the number of shares I had and just use that figure?
I'm not really sure what is considered "under my control." It's been a joint account since it was started... in my mother's name and mine. TaxCut is asking for the date acquired and the date sold... I'm not sure what date and cost to put for when it was acquired.
All the paperwork I have on the fund doesn't show any taxes withheld, and I don't think any taxes have been paid on the gains since it was started cause it didn't increase in value enough, so I guess that means I have to pay tax on all the money minus the original investment?
- Oct 30, 2000
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Best bet is to contact the fund and ask what the value was on some date in 1992.
Use that as the cost basis and date.
The differencebetween then and now is what you will have to pay capital gains on.
Just checking - only the interest and points are tax-deductable on the mortgage, correct? I went through TurboTax and only these two made a difference on the amount that I owe.
- Oct 30, 2000
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Property taxes are deductible.
If this is the year that you purchased the property, there are some government imposed fees that are deductible. They show up on the closing statement.
A guide to identify these items was previously posted.
alkemyst
No Lifer
- Feb 13, 2001
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Luk...I would root around www.irs.gov on the forms and publications portions.
For my small business I was able to find alot of useful information not mentioned anywhere else.
For my small business I was able to find alot of useful information not mentioned anywhere else.
- Oct 30, 2000
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On 2/24, Twofootputt echoed a post of mine that contains those guidelines.
If you want more than that, see alkemyst's advice above.
I've got a question. I graduated from college in May of 2004. I was a dependent on my parents till then. What would my dad have to do to claim me as a dependant for only half the year?
- Oct 30, 2000
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Check the box that claims you as an dependant.
Take advantage of the educational tax credits from your education.
Make sure that you do not file as single.
Hi I have a question
During 2004, my status changed, for the first half of the year i was on a student visa (F1) working using OPT (optional practical training), when one is on his OPT he doesnt pay any medicare/social security tax, just the federal and state tax, for the 2nd half of the year i was on an H1b (currently am too), h1b is from a tax perspective similar to permanent resident I beleive, so i was paying, social security, medicare, federal, etc.
Can i just use 1040 form to file my returns, in 2003 when I was a student for the whole year, i used 1040NR (NR being non resident), so it was straight forward, but I am not sure what I need to file for 2004 since i maintained 2 different statuses
THanks
During 2004, my status changed, for the first half of the year i was on a student visa (F1) working using OPT (optional practical training), when one is on his OPT he doesnt pay any medicare/social security tax, just the federal and state tax, for the 2nd half of the year i was on an H1b (currently am too), h1b is from a tax perspective similar to permanent resident I beleive, so i was paying, social security, medicare, federal, etc.
Can i just use 1040 form to file my returns, in 2003 when I was a student for the whole year, i used 1040NR (NR being non resident), so it was straight forward, but I am not sure what I need to file for 2004 since i maintained 2 different statuses
THanks
- Oct 30, 2000
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The key would seem to be what options/codes are indicated on your W2(s).
Did you receive 2 different statements, one for each part of the year, or are there codes that have an amount next to it that shows/explains what the differences are between the SS taxable and Fed taxable numbers.
The last status that you have, is what you will file under. You will need to ensure that the proper numbers/codes are in place to avoid the responsiblity of the medicare/SS tax (~8%) on your total wages for the year.
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