2019 taxes

[maxwelhse]

Do you guys have any accountants you can recommend?

I’m in Huntington and would drive to Fort Wayne or even Indianapolis

TIA


Sent from my iPhone using Tapatalk

Yes. I use these guys, and specifically I deal with Mark Westerhausen. My parent's started using Mark for tax services back the '80s and over the years he's been promoted to their director of tax services.

I doubt Markis the guy doing my taxes himself, but I've got nothing but good to say about him. When I bought my house and used some tax credits, and then when I was selling it to relocate for a job, and when I was working out of state while maintaining my IN residence, he was an absolute asset to have in my pocket to ask all sorts of random questions.

FWIW, this year I didn't even send any actual paper to their offices. I scanned all my stuff, zipped up with a password, emailed, called and gave them the password. So... Once you establish a relationship, you may never actually have to go to Fort Wayne if you don't want to.

---

Can't say I disagree with looking over your tax stuff even if a pro does them, but after over 30 years of family history, including my Dad's business dealings and my mom transitioning to retirement, and 0 audits or hassles, I'm pretty confident at this point. I will say that Mark has bailed me out of several stupid things that my employers were doing. NEVER trust that HR got your stuff right...

 

[dfcrane]

Tax filing date has been extended to July 15th

https://www.forbes.com/sites/sarahhansen/2020/03/20/its-official-irs-delays-tax-deadline-to-july-15-mnuchin-says/#399b661ebd34

 

[doddg]

Tax filing date has been extended to July 15th

https://www.forbes.com/sites/sarahhansen/2020/03/20/its-official-irs-delays-tax-deadline-to-july-15-mnuchin-says/#399b661ebd34

I just heard it on TV as well.

 

[JettaKnight]

Tax filing date has been extended to July 15th

https://www.forbes.com/sites/sarahhansen/2020/03/20/its-official-irs-delays-tax-deadline-to-july-15-mnuchin-says/#399b661ebd34

Huh... this will be interesting for me.

Wow! Now you are really maximizing the options.

I see clients that only put in $1000 into their HSA, I have the fight the urge to yell out, "Do you know how much money you're loosing?!" Even if you just want to use it to buy OTC medical supplies, run that money through your HSA.

 

[doddg]

Huh... this will be interesting for me.
I see clients that only put in $1000 into their HSA, I have the fight the urge to yell out, "Do you know how much money you're loosing?!" Even if you just want to use it to buy OTC medical supplies, run that money through your HSA.

I loved it when I went on Medicare in 2019 but I still had $2000ish left in my HSA account even though I wasn't able to contribute anymore.
It certainly made meeting deductibles for everything in 2019 painless.
I would have loved to have had $10K in it, but we used it up nearly as fast as as we put it in at the rate of $5k/yr. with the family plan and over 3 grand/yr. when it was just me b/c the wife went on Medicare.
I have an account through work that can only be used for medical after I retired, about 12 grand that I set aside, so I take my saving in medical seriously.

 

[doddg]

NO![/B]
Which is frustrating for me. I do 1040's for low income and elderly, but right now we can't sit at a table together.

As to HSAs, the key thing is if you used the fund to pay for qualified expenses(i.e. medical bills) you have to enter that amount on the form. When that number matches the number shown as the disbursement, there's no income tax.

Bonus tip: You can reimburse yourself for past medical payments from your HSA. Example: If I started my HSA in 2006, paid $400 cash for a root canal in 2012, I can transfer $400 into my personal account, tax free. Of course, you better have good receipts.
It's worth repeating:
Always, always, always fund you HSA to max first. It's incredibly versatile and has much better tax benefits than any retirement account.
I've got my HSA invested in stocks, and a stack of receipts. So, if I ever need it in an emergency, I can withdraw all that with no taxes or penalties at any time. You can't do that with any retirement account.

A question about HSA, since you are knowledgeable on these things.
People at Turbo Tax have not been knowledgeable in the past few years about HSAs when I've called.

I spent $785 from my HSA account in 2019 on Medical from my Old HSA account I had in 2018 with funds left over that I hadn't used yet.
By Turbo's input, they had me check that I had an HSA account in 2019, but I wonder since I didn't pay into an HSA in 2019, just took my funds from the account that had been paid into in 2018.

Turbo Tax says I have to report that, but it then shows up as income, and taxable?!
But I thought HSA funds are not taxable???

If reported and taxable, I don't see the advantage of "parking/storing up" funds in an HSA for future medical expenses to use in retirement (other than your income is less).

 

[JettaKnight]

A question about HSA, since you are knowledgeable on these things.
People at Turbo Tax have not been knowledgeable in the past few years about HSAs when I've called.

I spent $785 from my HSA account in 2019 on Medical from my Old HSA account I had in 2018 with funds left over that I hadn't used yet.
By Turbo's input, they had me check that I had an HSA account in 2019, but I wonder since I didn't pay into an HSA in 2019, just took my funds from the account that had been paid into in 2018.

Turbo Tax says I have to report that, but it then shows up as income, and taxable?!
But I thought HSA funds are not taxable???

If reported and taxable, I don't see the advantage of "parking/storing up" funds in an HSA for future medical expenses to use in retirement (other than your income is less).

I've never used TurboTax (I use Tax Slayer), so I don't know the details.


But, it doesn't matter which account you took funds from, or how they got into there.*




On Form 8889, line 14a will show $785, this number was reported by your bank.

Line 15, Qualified medical expenses, needs to also show $785 (this probably needs to be done manually), which will make line 16 (Taxable HSA distributions) $0.




My only thought was that in order to spend that money, you must be currently under a high deductible heathcare plan, but that doesn't make sense because you can use your HSA funds to pay for your wife's bill, even if she has her own low deductible plan.






* Another tip: If your aunt Sally puts $1000 into your HSA account, you get the tax deduction, not her.


Also peeps, you have until April 15th (maybe later this year) to make your 2019 contributions. So, if you didn't max it out, go do so, and look to see how it affects your 2019 taxes.

 

[doddg]

I've never used TurboTax (I use Tax Slayer), so I don't know the details.
But, it doesn't matter which account you took funds from, or how they got into there.*
On Form 8889, line 14a will show $785, this number was reported by your bank.
Line 15, Qualified medical expenses, needs to also show $785 (this probably needs to be done manually), which will make line 16 (Taxable HSA distributions) $0.

That's part of my problem in using Turbo tax: I can't see the actual federal (or state) tax form, I'm only inputting figures into their "boxes."
After I pay & submit, then I can see everything inputted on all the actual Federal tax forms with the numbered lines & boxes.
I didn't even bother to list all my $$$ of medical deductions b/c I only qualify for the standard deduction, but there was $2220 list from Medicare premiums already.
So, since my Distribution was $785, and my medical expenses reported were $2220, IRS will probably realize that the $785 in not taxable.
I think I'll go back and enter all my medical expenses of $13k for the year, IRS should not waste their time just b/c I didn't know how to enter the HSA properly.

My only thought was that in order to spend that money, you must be currently under a high deductible heathcare plan, but that doesn't make sense because you can use your HSA funds to pay for your wife's bill, even if she has her own low deductible plan.

I think that's what I'm running into.
My Retirement adviser also said that the HSA should not be taxable, but I'll have to figure out how to input it so as not to be.

* Another tip: If your aunt Sally puts $1000 into your HSA account, you get the tax deduction, not her.
Also peeps, you have until April 15th (maybe later this year) to make your 2019 contributions. So, if you didn't max it out, go do so, and look to see how it affects your 2019 taxes.

.

 

[JettaKnight]

Did you fill all you medical expenses as a deduction? The software may think you're trying to deduct those, therefore not allow them to be used as HSA qualified expenses.

 

[Sigblitz]

Do you guys have any accountants you can recommend?

I’m in Huntington and would drive to Fort Wayne or even Indianapolis

TIA


Sent from my iPhone using Tapatalk

Dutton Legal Group. He's a tax attorney on the north side of Indianapolis.

 

[Sigblitz]

Just to clarify, federal has to be filed April 15 and paid July 15. If filing by mail, it may be wise to get confirmation delivery. The penalties for not filing are steep.

State has to be filed and paid July 15, the way I saw it worded.

 

[JettaKnight]

WRONG.


The filing deadline is now July 15.


https://www.irs.gov/newsroom/tax-da...ederal-tax-payments-regardless-of-amount-owed

 

[AtTheMurph]

The fact that we as citizens have to endure the atrocity of filing income tax returns every amazes me.

The amount of time, effort and expense we incur to render money unto the federal and state governments when many simpler and easier forms of tribute exist befuddles me.

We already pay sales taxes so how about we just increase those and call it day? We could stop paying all the tax accountants, all the tax attorneys, shut down the IRS (or reduce it's size by 99%), stop 99% of tax fraud and everyone would know they are paying the correct amount of tax and there would be no ambiguity.

And before you chime in, sales taxes are progressive. They are also avoidable. They don't punish work and encourage savings. What they do do is remove power from the hands of politicians and bureaucrats who use the tax code to screw some and enrich others.

I cannot think of anything more unAmerican than an income tax.

 

[JettaKnight]

The fact that we as citizens have to endure the atrocity of filing income tax returns every amazes me.

The amount of time, effort and expense we incur to render money unto the federal and state governments when many simpler and easier forms of tribute exist befuddles me.

It's not the first time, and won't be the last time I say it, but you can thank the makers of TurboTax for this perpetual mess.

We already pay sales taxes so how about we just increase those and call it day? We could stop paying all the tax accountants, all the tax attorneys, shut down the IRS (or reduce it's size by 99%), stop 99% of tax fraud and everyone would know they are paying the correct amount of tax and there would be no ambiguity.

And before you chime in, sales taxes are progressive. They are also avoidable. They don't punish work and encourage savings. What they do do is remove power from the hands of politicians and bureaucrats who use the tax code to screw some and enrich others.

If you increase sales tax dramatically, then you create a big incentive to create an underground economy to avoid that tax.

I cannot think of anything more unAmerican than an income tax.

Gene Autry (and Iriving Berlin) disagrees with this.

[video=youtube;CsOCifTKsLI]http://www.youtube.com/watch?v=CsOCifTKsLI[/video]

 

[flyingsquirrel]

I have not filed for 10 years per disability until this year. Went to H&R block and filed for 2018 & 2019. I'm 66 and can do. No other income. $20.00 after about $200.00 discount for senior and came out with a $200.00 tax refund. Not asking why just passing on info.

 

[JettaKnight]

I have not filed for 10 years per disability until this year. Went to H&R block and filed for 2018 & 2019. I'm 66 and can do. No other income. $20.00 after about $200.00 discount for senior and came out with a $200.00 tax refund. Not asking why just passing on info.

I'll make a shameless plug, but there's a completely free service for seniors and those with income under $56K, where volunteers (like me) will file your taxes.

https://www.irs.gov/individuals/free-tax-return-preparation-for-you-by-volunteers

 

[doddg]

Got my IN state tax refund in 8 days.

Retirement pay for 5 months of 2019, but I got about the same back in State.
With federal taxes, instead of getting some back, I ended up owing about half of what I usually get refunded.

Must not having enough taken out enough when my financial guy estimated my retirement tax rate.
Before I change what I have taken out for taxes I'll wait and see what happens next year when the whole year is retirement pay.