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Did u check box 12 on ur W-2? Should have a letter code D and the amount u contributed. That's how u know it's already accounted for in ur taxes. U don't report it seperately.
This is the right answer - check Box 12 with code D on your W-2. That shows the amount deferred into a 401k plan. Your Box 1 wages are already reduced by this amount, so the taxes on your contributions are already handled correctly.
As an immigrant myself, I know how confusing US tax system can be! One more thing to know: those 401k statements usually show both contributions and earnings. The earnings (interest/investment gains) aren't taxed now either as long as u keep the money in the account. That's why these accounts r good for retirement saving!
I'm surprised no one has mentioned that you can request your Wage and Income Transcript and Tax Return Transcript directly from the IRS website. Go to IRS.gov and search for "Get Transcript Online." This will show what was actually filed under your SSN for 2022, including the AGI that was reported. This might help you figure out what AGI to use, plus it gives you documentation of what was incorrectly filed in your name. The IRS computer systems often have record of your actual AGI even if your refund situation isn't resolved yet. You might also want to put a freeze on your credit since someone has your SSN and has already committed tax identity theft.
I tried to get my transcript online but couldn't pass the identity verification since I don't have a mortgage, car loan, or credit card in my name yet (I'm pretty young). Is there another way to get this information?
Yes, if you can't verify your identity online, you can use Form 4506-T to request your transcripts by mail. It takes about 10 days to receive them. You can also call the IRS transcript request line at 800-908-9946 to order transcripts by phone. Another option is visiting a local IRS Taxpayer Assistance Center in person - they can provide transcripts on the spot, but you need to schedule an appointment first by calling 844-545-5640. Bring your photo ID if you go this route.
Make sure you contact your state attorney general's office about the tax preparer who filed without your consent! That's actually illegal and they can be prosecuted for it. Tax preparers must have your signature on Form 8879 before e-filing on your behalf. When this happened to my brother, the AG's office got involved and it helped speed up the IRS resolution because now it was a criminal matter. The tax preparer ended up facing charges and had to pay restitution.
This is really good advice! My friend works for the state AG office and says they take tax preparer fraud very seriously. They can also help document the fraud for the IRS which speeds up your refund recovery.
Don't forget to check if your school/university offers free tax advice! I was a research assistant during grad school and my university had free tax workshops specifically for students with stipends and research positions. They even had dedicated sessions for independent contractors vs. employees. Worth checking if yours has something similar!
That's a great idea! I didn't even think to check with my university. Do you know what department typically offers this kind of service? Would it be financial aid or something else?
Usually it's either through the financial aid office or the student services department. Some universities also have it through their business school or accounting program where accounting students (supervised by professors) provide tax help as part of their practical training. The best approach is to just email your university's general help desk or student services and ask if they offer tax assistance. If they don't have an in-house program, they might still know about local resources specifically for students.
One thing nobody mentioned - get a separate bank account for your business income and expenses! I learned this the hard way when I started freelancing. The IRS can be really picky about commingling personal and business finances. Also download a free expense tracking app now and start using it immediately. Take pictures of all receipts. You'll thank yourself next April when you're not trying to remember what every purchase was for.
This is so important! And don't forget to keep track of any home office expenses. If you dedicate a space solely to your research work, you can deduct a portion of your rent and utilities.
One thing nobody's mentioned yet - make sure you have W-9 forms on file for all these medical contractors before sending 1099s. I made this mistake and had to chase down TINs at the last minute. Also, validate the TINs through the IRS TIN matching program if you can - medical professionals sometimes use EINs instead of SSNs and it's easy to get them wrong.
Do you know if there's a penalty for filing 1099s late? I'm in a similar situation and I'm worried we might miss the deadline for some of our medical contractors while we sort out the correct form.
Yes, there are penalties for late filing, and they increase the longer you wait. For 2025 filing season, if you file within 30 days of the deadline, the penalty is $60 per form. If you file after 30 days but by August 1, it increases to $120 per form. After August 1 or if you don't file at all, it's $310 per form. However, if you need more time, you can request an extension using Form 8809. This gives you an automatic 30-day extension for filing 1099s. The good news is there's no penalty for requesting this extension, so if you're cutting it close, definitely file for the extension to give yourself some breathing room.
Has anyone used QuickBooks to generate their 1099-NECs for medical contractors? I'm trying to figure out if it correctly handles the different boxes for 1099-MISC vs. 1099-NEC and I'm getting confused.
I use QuickBooks for our dental practice and it handles both forms well. When you set up a vendor, there's an option to mark them as eligible for 1099. Then when you're ready to file, you go to Vendors menu > Print/E-file 1099s and the system will guide you through selecting the right form and proper boxes. It automatically suggests the right form based on payment type, but you can override if needed.
Thanks for the info! I just went in and checked our QuickBooks setup. You're right about the vendor settings - I hadn't properly flagged all our medical contractors for 1099s. I also found the 1099 wizard under the Vendors menu that lets you verify everything before filing. One other thing I discovered is that QuickBooks lets you e-file the 1099s directly from the software which might save me some time given how close we are to the deadline. Definitely less stressful than trying to print and mail everything last minute.
Manny Lark
3 One thing to consider that hasn't been mentioned - if you sold the car for LESS than you paid, you generally can't deduct that loss if it was a personal vehicle. The IRS considers personal vehicles as personal use property, and losses from selling personal use property aren't deductible.
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Manny Lark
ā¢8 Does that apply even if you occasionally used the car for work and claimed mileage deductions? I'm in a similar situation but I used my car for both personal and some business travel.
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Manny Lark
ā¢3 That's a good question. If you used the car for business and claimed mileage deductions, then it's considered a mixed-use asset. In that case, you might be able to deduct a portion of the loss that corresponds to the business use percentage. For example, if you can document that 30% of your vehicle use was for business (through mileage logs), you might be able to deduct 30% of the loss. However, this gets complicated because you've already received tax benefits through the mileage deductions during ownership. It's definitely one of those situations where having good documentation of your business use percentage is crucial, and you might want to consult with a tax professional for your specific case.
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Manny Lark
21 Does anyone know if there's a minimum profit threshold before you have to report a car sale? Like if I only made $400 on selling my car, do I even need to bother reporting it?
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Manny Lark
ā¢5 There's no minimum threshold for reporting capital gains like this. Technically, any profit should be reported on your tax return, even small amounts.
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