Form W-2

W-2 - Dependent Care benefits, Box 10

Asked Tuesday, January 17, 2012 by an anonymous user

CPA Answer:

Reimbursements from your employer and the value of employer care services are included in Box 10
Generally, amounts up to $5,000 are tax free and the excess over $5,000 are included on Form 1040 line 7 as taxable wages.
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Form W-2

W-2 - Box 12 Codes

Asked Tuesday, January 17, 2012 by an anonymous user

CPA Answer:

Elective deferrals from retirement plans and adjustments or deductions are listed with a code and an amount in Box 12.
CODES:
A = Uncollected SS or RRTA tax on tips
B = Uncollected Medicare tax on tips
C = Taxable cost of group life insurance over 50K
D through H,S,AA,BB,EE = Elective Deferrals and Roth contributions
J = Nontaxable sick pay
K = 20% excise tax on golden paachute payments
L = Employee business expense reimbursements
M = Uncollected SS or RRTA tax on life insurance
N = Uncollected Medicare tax on life insurance
P =excludable moving expense reimbursements
Q =Nontaxable combat pay
R = Employer contributions to Archer MSA
S = salary reduction under 408(p) Simple
T = Adoption benefits
V= income from stock option
W = HSA employer contribution
Y = 409A deferral
Z = 409A income
AA = Roth contribution under 401(k)
BB =Roth contribution under 403(b)
DD = employer health coverage
EE =Roth contribution under 457(b)
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Form W-2

W-2 - Box 13 checkbox's

Asked Tuesday, January 17, 2012 by an anonymous user

CPA Answer:

If the recipient is a statutory employee, wage income and expenses are reportable on Schedule C. Earnings are not subject to income tax withholding but are subject to SS and Medicare taxes.
Covered by a retirement plan box being X'd means the recipient is subject to the phase-out rules for IRA deductions.
Income reportable as 3rd party sick pay has this checkbox X'd.
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Form W-2

W-2 - Box 14, Other information

Asked Tuesday, January 17, 2012 by an anonymous user

CPA Answer:

Taxable fringe benefits and miscellaneous payments are listed in box 14.
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Capital Gain Rates

Short Term Capital Gains ( less than a year)

Asked Sunday, January 15, 2012 by an anonymous user

CPA Answer:

Short term capital gains are taxed at ordinary income rates.
However, you can offset short term capital gains with long term and short term capital losses and any capital losses carried over from previous years that you did not use.
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Exemptions Personal 2016

Personal Exemptions 2016

Asked Sunday, January 15, 2012 by an anonymous user

CPA Answer:

Every taxpayer is entitled to this deduction for themselves, spouse and each of their dependents. For the year 2016 there is a phase-out of this deduction.
The Phase-outs are:Single $259,400 to $381,900
MFJ and surviving spouses $311,300 to $433,800
MFS $155,650 to $216,900
Head of Households $285,350 to 407,850.
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Capital Gain Rates

Dividends & Long Term Capital Gains - Qualified Tax Rate for 2016

Asked Sunday, January 15, 2012 by an anonymous user

CPA Answer:

The rate for Individuals whose other taxable income is in the 10% or 15% bracket pay no tax on their qualified dividend’s in 2013. The rate is 15% for Individuals whose other taxable income exceeds the 15% bracket and are in the 25% or 28% or 33% or 35% bracket. The rate is 20% for Individuals whose other taxable income is in the 39.6% bracket.
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Mileage Rate Deductions

Standard Mileage Rates - 2013

Asked Sunday, January 15, 2012 by an anonymous user

CPA Answer:

Business       56.5 cents per mile
Charitable       14 cents per mile
Medical and Moving     24 cents per mile
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Roth IRAs

Roth IRA Phaseout of Deduction for 2013 and 2014

Asked Sunday, January 15, 2012 by an anonymous user

CPA Answer:

In 2016, the AGI phase-out range for taxpayers making contributions to a Roth IRA is $184,000 to $194,000 for married couples filing jointly, up from $183,000 to $193,000 in 2015.
For singles and heads of household, the income phase-out range is $117,000 to $132,000, up from $116,000 to $131,000.
For a married individual filing a separate return, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
In 2015, the AGI phase-out range for taxpayers making contributions to a Roth IRA is $183,000 to $193,000 for married couples filing jointly, up from $181,000 to $191,000 in 2014.
For singles and heads of household, the income phase-out range is $116,000 to $131,000, up from $114,000 to $129,000.
For a married individual filing a separate return, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
In 2014, For the filing status of: Married Filing Jointly AGI Phase-out range = $181,000 - $191,000
For the filing status of: Single AGI Phase-out range = $114,000 - $129,000
For the filing status of: Married filing Separately AGI Phase-out range = 0 - $10,000
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Capital Gain Rates

Long Term Capital Gains (greater than a year) Rates

Asked Sunday, January 15, 2012 by an anonymous user

CPA Answer:

Long term rates apply to gains from the sale of capital assets such as stock that you held for MORE than one year.
Long-term gains and qualified dividends are taxed at;
0% if taxable income falls in the 10% or 15% marginal tax brackets 15% if taxable income falls in the 25%, 28%, 33%, or 35% marginal tax brackets 20% if taxable income falls in the 39.6% marginal tax bracket 25% on Depreciation Recapture 28% on Collectibles 28% on qualified small business stock after exclusion
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