I received a distribution from my Roth 401k in November 2021 that was labeled as an "excess deferral correction" for 2020. What's confusing me is that I didn't exceed the published contribution limits for 2020 (I'm not even close to maxing out), but apparently their plan audit determined I went over some limit I wasn't aware of. I'm in my 40s and definitely not a highly compensated employee. Now I have two different 1099-R forms for 2021 with different distribution codes: First form has distribution code BP: - About $520 gross distribution (Box 1) - $0 taxable amount (Box 2a) - Box 5 (employee contributions) shows same amount as Box 1 - $0 for state distribution (Box 16) - $0 for local distribution (Box 19) Second form has distribution code 8B: - About $630 gross distribution (Box 1) - Taxable amount equals gross distribution (Box 2a) - Box 5 shows $0 - State distribution matches gross amount - $0 for local distribution The paperwork that came with the check mentioned that for Roth deferrals, the corrective distributions and allocable income are only taxable in the distribution year. From everything I've read online, I believe I don't need to amend my 2020 return since this was Roth 401k money, and I already paid tax on the BP-coded amount in 2020. But now TurboTax is ignoring the "$0 taxable amount" on the BP-coded 1099-R and adding it to my taxable income for 2021. It's also suggesting I might need to amend my 2020 return. Am I right that my 2020 tax return doesn't need amending? And can I somehow exclude the BP-coded 1099-R from my 2021 filing since the taxable amount is clearly marked as $0?

So my employer just informed me they're converting me from W2 to 1099 status. No benefits change since I don't get any to begin with - it's just affecting my tax situation. My annual pay is $105,000. I understand that as a 1099 contractor I'll be responsible for the full Social Security and Medicare taxes, instead of splitting it with my employer like I did as a W2 employee. Are there other taxes I need to worry about too? I might be able to deduct some business expenses, but honestly it won't amount to much. I was thinking maybe I could contribute to a solo 401(k) to help offset the increased tax burden. I've been messing around with some online tax calculators to figure this out. Looks like if I put $105,000 as my W2 salary, I'd owe about $13,400 in taxes. But as a 1099 contractor with the same income, it jumps to around $23,500. I don't get why it's not exactly double the self-employment tax portion, but whatever. From what I can tell, to take home the same amount as I did as a W2 employee, I'd need to effectively reduce my taxable income to like $65,000. That seems really hard to do. So I'm wondering - if I had business expenses of maybe $7,000 and then contributed like $60,000 to a solo 401(k), would that get me close to even? Is it even possible to contribute that much to a solo 401(k)? This whole situation feels overwhelming.

I'm a Texas resident and really struggling with my tax situation this year. I normally use one of those tax places in the mall, but last year they charged me almost $400 just to file because I had some investment documents from Fidelity. I'm about to start a 4-month contract on an offshore oil rig next week, and I'm seriously strapped for cash right now. I know I'll owe taxes since I sold some stocks and took an early distribution from my 401k to pay for some certification courses (to qualify for this offshore position). When I return from the rig in late August, I'll be in a much better financial position. Dropping $80 on tax prep today would be really painful, but paying $1300 when I get back wouldn't be a big deal. So I'm trying to figure out: 1- What's the simplest way to file an extension when I know I'll owe the IRS at least $1300? I've seen something about making a partial payment, but realistically I won't be able to pay the full amount until September. 2- How severe are the penalties for filing and/or paying late? If they're not too bad, I might just accept the penalties and pay everything when I get my check from the oil company. For reference, I have my W2 from my previous job, a consolidated 1099 from Fidelity, and a 1099-R from my 401k distribution. Any advice would be greatly appreciated!

I've recently started a pop up retail business where I rent spaces in different shopping malls for short periods - usually 2-4 weeks at a time. I've been doing pretty well with it (selling handmade jewelry and accessories), but now I'm confused about the tax reporting requirements. I'm paying anywhere from $800-$2500 per location depending on the mall and time of year. If I pay more than $600 to a specific mall location during the year, am I required to issue a 1099-MISC to that mall for the rent payments? I'm pretty sure I need to, but wanted to double check before I start gathering all the tax info from these malls. Some of the mall management companies seem annoyed when I ask about tax forms. This is my first year doing this business and I want to make sure I'm handling everything correctly for next year's taxes. Thanks in advance for any help!

So I'm trying to figure out this whole tax situation after the First Republic Bank collapse. I had about $15,000 in First Republic Bank shares that completely tanked when they went under earlier this year. The problem is all these shares were in my Roth IRA account that I've had for about 7 years. I keep hearing mixed information about whether I can claim this as a tax loss or not. My brother-in-law (who thinks he knows everything about taxes) says I definitely can't claim losses in retirement accounts, but my coworker swears his accountant let him write off similar losses last year. I really need to know for sure before I file my taxes next year. Has anyone dealt with investment losses specifically in a Roth IRA? And if I can't claim the loss, is there anything else I can do to offset this huge hit to my retirement savings? Any advice would be super appreciated!