New answers tagged

2

You can also transfer assets from Company A's HSA to another one as often as you want. Looks like the proper one is called "Trustee-To-Trustee" transfer. https://medium.com/@livelyme/hsa-rollovers-and-transfers-demystified-a757c9d7fc4e. Since it involved a physical letter for me (HealthEquity -> Fidelity), I only did it twice a year.


3

Because Company A is willing to contribute to Account A, that's a great reason to set up Account A. Because you can invest in Account B, that's a great reason to keep Account B (assuming the fees are low). If you can stay organized and keep track of two accounts, the best option may be to use both accounts while you are employed by Company A.


7

You have to consider a couple of things: Money taken from your pay check and put into the HSA is tax free, and also skips Social security and Medicare. Money you put into the old account from your bank account will save you income tax, but not FICA. Sometimes you current company pays a monthly fee to the company running the plan, you will have to pay that ...


0

A few paragraphs earlier it says Reasonable method allocations. To the extent that you have a properly allocable deduction that’s allocable to both net investment income and excluded income, you may use any reasonable method to determine that portion of the deduction that’s properly allocable to net investment income. The three items that may be allocated ...


0

I recommend dissolving your company and creating a new one in the future if you need it. You don't need to worry about 26 U.S. Code § 1362 (g). That applies to the same corporation and it doesn't apply to a brand new corporation. Also, I'm pretty sure that law doesn't apply to LLCs. An LLC is a company but is not a corporation (despite the fact that it ...


0

I found an article on businesses taking a hiatus. To quote the article, "you must be able to present a set of facts indicating that you're sincerely looking for business." If you are not interested in doing that, your option #3 should work: Filing an S-corp tax return as required without deducting business expenses.


-1

You can check this yourself on your pay stub. You have various items on your stub that are deducted from your gross pay. The result is your net pay. You will find that some items reduce your taxable income. Some companies delineate the two by making separate lists, or putting a code or an asterisk next to the items that reduce your taxable income. They ...


14

Yes, all of the deductions you mentioned are outside of the itemized deductions, so participation reduces your taxes even if you elect to take the standard deduction. Items that are deducted from your paycheck by your employer, such as 401(k) contributions, payroll HSA contributions, or FSA deductions do not show up on your tax return at all. Your employer ...


7

Yes to all 4. Assuming you contribute through your employer's payroll, Traditional 401(k), Health Savings Account (HSA), and Flexible Spending Account (FSA) contributions are deducted from federal wages on your W-2. Traditional IRA is an above-the-line deduction, which means you don't have to itemize to benefit. In practice, it works out the same as a ...


1

Yes, but no... The core point is that the total of the two is limited to 6000 (or 7000 if older than 50). Within this limit, you can spread your contributions between any number of IRAs and Roth IRAs. Also: You can always contribute to an IRA, there is no upper income limit. The income limit is for being able to deduct the contribution from your taxable ...


3

No, if you max out the Roth you cannot also contribute to a Traditional IRA, neither pretax nor after-tax. The max amount you can contribute to an IRA is the total of all contributions you make to any kind of IRA. In 2021, the total contribution limit is $6000 if you are under age 50, and $7000 if you are 50 or older. You could theoretically contribute less ...


1

You are right that amount of interest that is deductible shouldn't have gone down. If you entered them in that order, I am not sure how it dropped. Nevertheless I would look at the information related to the 1098. What I mean is that every time I enter information from a W-2, 1099, or 1098; Turbo Tax always have a series of questions related to that new ...


0

I recall, the year I had 2 banks, I double clicked the cell to enter mortgage interest and a small form came up letting me itemize. The total flowed back to the cell for the interest deduction. I could have entered as many as I wanted there.


1

I read somewhere that marrying someone does not make you responsible for their student loans, but in the above case seems like you will be responsible, and forced to pay for your spouse's loan. Your spouse is responsible for those loans. But you married the person with (hopefully; if not, shame on you!) open eyes, knowing that the spouse's debts must come ...


5

As someone who's spouse has a very large amount of student debt, I can verify that I am not responsible for my spouse's student debt. That being said, The IBR plan does take my individual income into account, so she owes more per month when I earn money (and, conversely, when I was unemployed for 3 months her payment dropped below where it was when she was ...


4

Some employers have waived some open enrollment deadlines for applying for a Dependent Care Inflexible Savings Account (a "DC FSA"). This is implemented as a deduction from your income, that can be spent using pre-tax dollars. For 2020 and 2021 the limit is $5000. For more see https://www.investopedia.com/articles/pf/09/dependent-care-fsa.asp If ...


0

The length of time money is in Traditional IRA before you convert it to Roth IRA has no relevance to the taxes. What matters for taxes is the amount that is converted and the year it was converted in, and also how much after-tax contributions there were in the Traditional IRA compared to the total value in Traditional IRA. If your Traditional IRA funds are ...


0

You are entering it as an 'expense', because intuitively it is a deduction-esque thing on your tax return. However, you are conflating two concepts: Your GNUcash reports are recording accounting income. Your tax return records taxable income. It is like a 2nd set of books. This is normal, because tax authorities often require things to be reported ...


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