For what it's worth, I itemized deductions as a dependent last year and it was definitely worth it in my case. Had about $14,000 in medical expenses after a major surgery (which easily cleared the 7.5% AGI threshold) plus some charitable donations. The key thing I learned is that you need to be the one who actually paid the expenses if you want to claim them. So I made sure to pay my medical bills directly from my account rather than having my parents pay them, even though they offered. Made documentation much cleaner for tax purposes.

Katherine, you're definitely on the right track asking about this! As a dependent, you can absolutely file your own return and itemize deductions if it benefits you. Looking at your specific situation: Your $2,800 in medical expenses could be partially deductible since they need to exceed 7.5% of your $18,500 AGI (so about $1,388). That means roughly $1,412 of your medical bills would qualify. Your $500 charitable donation to the university is fully deductible since you made it with your own money. However, those job expenses related to your internship likely aren't deductible anymore due to tax law changes in 2018 - unreimbursed employee expenses were eliminated for most people. So you'd potentially have around $1,912 in itemized deductions ($1,412 medical + $500 charitable). As a dependent, your standard deduction would be $18,900 (your earned income plus $400, but capped at the regular standard deduction). In your case, itemizing probably wouldn't be worth it since your itemized amount is much lower than the standard deduction. The good news is you can still claim these on your own return - they don't go to your parents just because you're a dependent. Just make sure you have good documentation showing you personally paid these expenses!

I've been a retirement plan administrator for years and see this confusion all the time. When a 403(b) has both pre-tax and after-tax contributions, the rollover reporting can get messy. The distribution code "BG" is telling you something important. The "B" means qualified plan distribution, and the "G" specifically indicates this includes after-tax contributions. Those after-tax contributions ($12k in your case) should roll into your Roth IRA tax-free since you already paid tax on them. Only the earnings on those after-tax contributions (the $2k difference) would potentially be taxable when moving to a Roth. But if this was a direct transfer between trustees, even that might be reported differently. The blank in box 2a with unchecked box 2b is basically the provider saying "we don't know your tax situation, so we're not specifying the taxable amount.

Has anyone used TurboTax to handle this kind of situation? I'm going through something similar and wondering if the software can handle these complex rollover situations correctly.

Has anyone here used the Retirement Tax Worksheets from IRS Publication 575? I had a similar 1099-R situation and that publication helped me figure out the taxable vs. non-taxable portions. The key is knowing whether you made after-tax contributions (which you'd need records for) or if everything was pre-tax. Also, Box 7 on your 1099-R has a code that can give you clues about the distribution type. What code is in Box 7 of your form?

I went through this exact same situation a few years ago and it's definitely frustrating! When Box 2a is blank with "taxable amount not determined" checked, it usually happens when the plan administrator doesn't have complete records of your contribution history or basis in the account. Here's what I learned: You'll need to determine the taxable amount yourself using your contribution records. Since you mentioned it was a traditional 401k with pre-tax contributions for 8 years, the entire $42,800 is likely taxable as ordinary income. However, I'd strongly recommend double-checking a few things: 1. Pull out all your old 401k statements to verify you never made any after-tax contributions (sometimes called "designated Roth contributions" or "non-deductible contributions") 2. Check if your employer ever made any after-tax contributions on your behalf 3. Look at Box 5 on your 1099-R - if there's an amount there, it represents any after-tax contributions that wouldn't be taxable The good news is that medical expenses and home repairs might qualify you for exceptions to the 10% early withdrawal penalty if you're under 59½. Medical expenses that exceed 7.5% of your adjusted gross income can be an exception. Keep all your receipts and documentation! I'd recommend consulting with a tax professional for your specific situation, but at least now you know what direction to head in.

This is a really common confusion for new independent contractors! You're absolutely right to question it, but here's the deal: when you're self-employed (which is what a 1099 means), ALL payments from your client - including reimbursements - get reported as income on the 1099. This might seem unfair, but it actually works in your favor. Here's why: You get to deduct your actual business mileage on Schedule C at the IRS standard rate (67 cents per mile for 2024). So if you drove 18,000 business miles, that's a $12,060 deduction! Since your reimbursement was only $10,800, you'll actually get to deduct MORE than what was included in your income. Don't ask for a corrected 1099 - that's not how it works for contractors. Just report the full income amount and then claim your mileage deduction. Make sure you have good records of your business trips (dates, destinations, business purpose, and mileage). A simple mileage log or phone app works fine. The key is understanding that as a contractor, you report ALL income and then deduct ALL legitimate business expenses. In your case, this should actually reduce your tax bill compared to what you're expecting!

Great thread everyone! As someone who's been doing contract work for a few years, I want to emphasize something that might not be obvious to newcomers: keep your mileage log updated throughout the year, not just at tax time. I learned this the hard way my first year when I tried to reconstruct 12 months of business driving from memory and old calendar entries. Now I use a simple smartphone app that tracks my trips automatically, but even a basic notebook works fine as long as you're consistent. Also, don't forget that your business mileage includes trips to pick up supplies, meet clients, travel between job sites, and even trips to the bank to deposit checks or the post office to mail invoices. It all adds up! The key is that it has to be for business purposes - your regular commute to a main office location doesn't count, but travel between different client locations during the day does. One last tip: if you're driving a lot for work like the OP, consider setting aside money quarterly for estimated taxes. That 1099 income without withholding can create a big tax bill in April, but the mileage deduction will definitely help reduce what you owe.

I just went through this exact same situation with my Empower rollover! The BG code combination was throwing me off too, but after speaking with a tax professional, here's what I learned: The "B" indicates it's from a designated Roth account (like Roth 401k), and the "G" confirms it was a direct rollover. Since you rolled from one qualified plan to another, this should be completely non-taxable. The blank box 2a with "Taxable amount not determined" checked is actually normal for these situations. Empower is basically saying "we're not calculating the taxable portion because this should be handled as a rollover by the taxpayer." When I entered mine in TurboTax, I just had to make sure to answer "Yes" when it asked if this was a rollover. The software automatically treated it as non-taxable after that. You definitely still need to report the 1099-R on your return though - the IRS needs to see that you received it and properly handled it as a rollover. The different amounts in box 1 vs box 5 just represent your total distribution vs your original contributions. Since it was a proper rollover, you don't need to calculate anything - just report it correctly as a rollover and you should be all set!

I had a very similar situation last year with my 401k rollover and those BG codes on the 1099-R form. What helped me was understanding that you absolutely need to report this on your tax return even though it's not taxable - the IRS cross-references the 1099-R they received from Empower with what you report. The key thing is when your tax software asks about the distribution, make sure you clearly indicate it was a "direct rollover" or "trustee-to-trustee transfer." Most tax software will have a specific question about this. Once you mark it as a rollover, the software should automatically treat the entire amount as non-taxable. One thing to double-check: make sure the rollover was completed within 60 days if it wasn't a direct trustee-to-trustee transfer. If it was done properly between the two Empower accounts, you should be fine. The blank box 2a is actually working in your favor here - it means Empower isn't claiming any portion is taxable, which is correct for a proper rollover. Don't stress too much about calculating the taxable portion yourself - that's exactly why they left box 2a blank and checked the "not determined" box. Just report it accurately as a rollover and you'll be good to go!