CPA/Tax Guys - HELP (1 Viewer)

[sbonomo]

So i started a new job in March.  Part of the departure from my prior firm (Bank of America) entailed repaying a relocation payment they had given me earlier in the year (Nov 2016).  BAC sent me a letter demanding payment letting me know they would send an amended W2 upon receipt of payment (great, i have to file an extension for my taxes). I received $10,000 for the relocation of which $7,000 was actually paid to me with the remaining $3,000 going toward taxes.  The $10,000 is reported as wages on the original 2016 W2 (Box 1).  Fast forward to today (4-months later i finally get the w2).  I have written BAC a check for $10K per the agreement however, the amended W2 that was provided did not change the wages tips and other comp line (box 1).  So by my math i am out $3,000 (or whatever the tax ends up being on the $10K of wages).  This cannot be correct right?  I am so frustrated with BAC, they basically have just stonewalled me (thanks SBonomo for the 9 years of service now go f-yourself).  Any advice would be greatly appreciated and good shtick may help cheer me up.

 

[skol asylum]

Not a CPA or tax guy, but I would ask for an amended W-2. If they refuse, you can still file an amended return as long as you've document everything. I'm not sure if your documentation accompanies your amendment or if you wait for the IRS to call you out on it and then provide. I would probably send copies of everything up front with a letter that explains the situation. When I used to do 1099 reporting I would have occasional complaints from recipients who disagreed with them. I told them we issued on as per our policy and definitions but they were free to file their returns any way they liked and could explain to the IRS why they disagreed with the 1099 treatment. I'm assuming it works the same way here.

 

[IC FBGCav]

Dot

 

[RokNRole]

You worked for BOA. You deserve anything you get.

 

[sbonomo]

You worked for BOA. You deserve anything you get.

Thanks?  

 

[sbonomo]

Not a CPA or tax guy, but I would ask for an amended W-2. If they refuse, you can still file an amended return as long as you've document everything. I'm not sure if your documentation accompanies your amendment or if you wait for the IRS to call you out on it and then provide. I would probably send copies of everything up front with a letter that explains the situation. When I used to do 1099 reporting I would have occasional complaints from recipients who disagreed with them. I told them we issued on as per our policy and definitions but they were free to file their returns any way they liked and could explain to the IRS why they disagreed with the 1099 treatment. I'm assuming it works the same way here.

Thanks, my only problem with this is that the w2 numbers will not match the IRS which is a automatic red flag.  

 

[Steve Tasker]

I'm not sure I understand your facts.

You were paid relocation comp in November 2016 of $10,000, consisting of $7,000 cash and $3,000 withholding.  The entire $10,000 is reported as wages on your 2016 W-2 and the $3,000 is included in the federal tax withheld.  During the beginning of 2017, you paid back the $10,000 relocation.

It sounds to me like you may have a claim of right deduction for 2017 under Section 1341.  You were required to include $10,000 income on your 2016 filing; you were ultimately were not entitled to this income, hence the claim of right.  You had the enjoyment of the income during 2016, and made the payback during 2017.  I have never seen this circumstance result in an amended W-2, though I suppose it's theoretically possible.  If you can have them amend the 2016 W-2, it would make the reporting easier for you, though to be honest I'm not sure they have a requirement to amend the 2016 W-2 if you didn't make payback until 2017....because you still had enjoyment of the $10,000 through the end of 2016.  Not sure the technical requirements for your former employer here.

This is the best I can do for you.  I suggest you consult a CPA to make sure everything is reported properly.  This is not official tax advice and should not be construed as such.  Good luck.

 

[zed2283]

Thought I would use an existing thread to ask my question.

I've lost $20k in a Roth IRA account that I've had for about 19 years.  It's gone up and down, but finally I bought a speculative stock that went belly up and I'm basically left at $0.  Cost basis of what I've contributed over that time is $20k.

I found out I can claim that loss if I close the account (it's the only Roth I have).  At this point, is there a reason for me not to do this?

 

[Chemical X]

Thought I would use an existing thread to ask my question.

I've lost $20k in a Roth IRA account that I've had for about 19 years.  It's gone up and down, but finally I bought a speculative stock that went belly up and I'm basically left at $0.  Cost basis of what I've contributed over that time is $20k.

I found out I can claim that loss if I close the account (it's the only Roth I have).  At this point, is there a reason for me not to do this?

it has to be your only Roth, or all Roth accounts must also be closed.  The only thing to consider is it will be an itemized deduction, so a 20k deduction is nice to have against strong income.  you could wait for a higher income earning year.

 

[Chemical X]

So i started a new job in March.  Part of the departure from my prior firm (Bank of America) entailed repaying a relocation payment they had given me earlier in the year (Nov 2016).  BAC sent me a letter demanding payment letting me know they would send an amended W2 upon receipt of payment (great, i have to file an extension for my taxes). I received $10,000 for the relocation of which $7,000 was actually paid to me with the remaining $3,000 going toward taxes.  The $10,000 is reported as wages on the original 2016 W2 (Box 1).  Fast forward to today (4-months later i finally get the w2).  I have written BAC a check for $10K per the agreement however, the amended W2 that was provided did not change the wages tips and other comp line (box 1).  So by my math i am out $3,000 (or whatever the tax ends up being on the $10K of wages).  This cannot be correct right?  I am so frustrated with BAC, they basically have just stonewalled me (thanks SBonomo for the 9 years of service now go f-yourself).  Any advice would be greatly appreciated and good shtick may help cheer me up.

see page 34 here;

https://www.irs.gov/pub/irs-pdf/p525.pdf

imo there is no amended W2 to receive.  what happened in 2016 happened.  move to 2017 and take the appropriate credit for repayment......................

 

[zed2283]

it has to be your only Roth, or all Roth accounts must also be closed.  The only thing to consider is it will be an itemized deduction, so a 20k deduction is nice to have against strong income.  you could wait for a higher income earning year.

It's my only Roth.  My 2018 return should be similar to 2017, so I'm not sure waiting gives me any advantages.  And I figure the new tax reform bill might make that deduction obsolete in the future...

 

[NutterButter]

I too have a tax question.  I bought the 55 gallon drum of lube from amazon for a work function.   We only used 40 gallons.  I was planning on taking home the remaining 15 gallons for personal use.   Can I deduct the cost of the entire drum or just the 40 gallons that I used for work?

 

[Zegras11]

Okay, I had something happen today.   I always file my taxes on extension 10/15.  For the first time in 25 years, my CPA said I'm getting a refund.   I was told and my page 1 said I was getting back $301.   We got a check today for $3301.    What's the play here?