State of Confusion
There Will Be Math
Grab Bag
Backdoor Roth to Riches
100
These TWO states disallow the Federal HSA deduction.
What are California and New Jersey?
https://hsaforamerica.com/state-income-tax/
100
THIS is the Federal tax liability for a 40yo Single filer with $50,000 in wage income, no dependents.
Hint hint - use Taxcaster.
What is $4,016?
100
The general navigation area, such as Wages and Income, where the in-product W-4 generator can be found.
What is Other Tax Situations?
100
The areas of TurboTax where you report the CONTRIBUTION and the DISTRIBUTION, respectively.
What are
DEDUCTIONS AND CREDITS
and
WAGES AND INCOME?
200
If you are a Nebraska resident working from home for a Connecticut employer, Connecticut will tax your wages under this rule.
What is the "convenience of the employer" rule?
https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-w-2/employer-withholding-state-taxes-work-home/L9222TxH0_US_en_US?uid=m9aus4j3
200
Your client is a Single filer with $101,000 in AGI, standard deduction. For her net self-employment income, her combined quick rule-of-thumb "ceiling" Federal rate is THIS.
What is 27%?
22% marginal* + 15.3% SE (rounded)
It's 22% bracket because the taxable income is about $85,000 and the 24% bracket doesn't start till $100,526 in taxable.
Actual marginal will be more like 85% of 27% because of benefits arising from the SE taxes paid and the net SE income.
200
The discount ALL Lyft drivers get on TurboTax Federal Products.
What is 25%?
https://www.lyft.com/driver/taxes/us
200
The typical Box 7 code on the 1099-R for a well-executed Roth conversion, client under age 59 and 1/2.
What is 2?
300
If you work in Kentucky but live in Indiana, you can fill out THIS form to have only Indiana withhold state income taxes.
300
Your joint client in the 32% bracket, with young children, has always heard a credit is better than a deduction and takes the childcare credit every year. THIS would be their basic Federal income tax benefit if they enrolled in their company's Dependent Care FSA and maxed out their contribution to $5,000.
What is $600?
(32% - 20%) x $5,000
12% x $5,000 = $600
300
The general navigation area, such as Wages and Income, where the in-product W-4 generator can be found.
What is Other Tax Situations?
300
This IRS rule dictates how much of a Roth conversion is taxable if you have existing pre-tax IRA balances.
What is the Pro Rata rule?
(Thank you, Gemini)
"Aggregation Rule" also acceptable.
https://www.kitces.com/blog/the-impact-of-the-ira-aggregation-rule-on-after-tax-distributions-roth-conversions-60-day-rollovers-rmds-and-72t-payments/
400
There are THIS MANY states which have instituted the "convenience of employer" rule.
(Don't count the two states which apply this rule only in response.)
What is FOUR?
- Delaware
- Nebraska
- New York
- Pennsylvania
Additionally, Connecticut and New Jersey tax the income of nonresidents working from home only when that taxpayer’s home state applies a similar tax.
https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-w-2/employer-withholding-state-taxes-work-home/L9222TxH0_US_en_US?uid=m9aufkcg
400
Your client is in the 32% marginal bracket and only contributed $500 to their Single HSA in 2024. The basic Federal income tax savings he could still achieve by maxing out his deduction now, before April 15th, is THIS.
What is $1,168?
32% x ($4,150 - $500)
32% x ($3,650)
$1,168
400
The feature which allows a TTLA paid customer to access ALL worksheets and forms included in the tax return, not just those required for filing.
What is PRINT CENTER?
400
The IRS penalty for failure to file the Form 8606, Nondeductible IRAs.
500
For TY24 this was the sole state which imposed an income tax but did NOT tax overtime pay.
Alabama
Several states have proposed legislation eliminating OT pay tax.
https://www.thehrdigest.com/states-with-no-tax-on-overtime-pay-who-is-leading-in-tax-exemption/
https://www.kiplinger.com/taxes/states-no-tax-on-overtime
500
The approximate amount you can save your $101,000 AGI, standard deduction HoH client in Federal taxes if you help her recall $1,000 in legitimate schedule C deductions.
What is (anything in the range of $230 to $270 is acceptable)?
500
Your client got married in 2024 and merged two households into one in August of 2024; one of the households was offered for rent starting January 2025 after being fixed up from August - December 2024. Total repair costs were $30,000, parsed out cleverly in under-$2,500 portions except for one big $10,000 expense - THIS amount can be deducted on the 2024 joint 1040.
Zero, and there will be no 2024 Schedule E reporting for this property. Schedule E reports results of operation of a rental property; the rental was not operational until 2025. The repair costs are an addition to depreciable basis.
500
The zip code of the address where you would file a standalone Form 8606 if you live in Texas.
Hint: if you are filing a standalone 8606, it is mailed to the same address where you would paper-file a 1040, no payment enclosed.
What is 73301?
Department of the Treasury
Internal Revenue Service Austin, TX 73301-0002
https://www.irs.gov/filing/where-to-file-addresses-for-taxpayers-and-tax-professionals-filing-form-1040