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Vanity Tax Question
Self | April 17, 2012 | Self

Posted on 04/17/2012 2:05:34 PM PDT by library user

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To: library user
The weird thing was accountant told me to put $510 in a ROTH IRA to get a bigger refund, but then said I can withdraw the money a few days later with no penalty, if I want to. Bizarre.

You have got to be kidding. Contributions to a Roth IRA are not tax deductible. The money can be withdrawn without tax due if certain requirements have been met... I don't think "claiming an illegal deduction and waiting a few days" is one of them.

How many returns prepared by this so-called "accountant" have been audited?

21 posted on 04/17/2012 3:53:46 PM PDT by ken in texas
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To: ken in texas

You have got to be kidding. Contributions to a Roth IRA are not tax deductible. The money can be withdrawn without tax due if certain requirements have been met... I don’t think “claiming an illegal deduction and waiting a few days” is one of them.

How many returns prepared by this so-called “accountant” have been audited?


There is a tax credit for contribution to a retirment plan ifyou meet certain qualifications.


22 posted on 04/17/2012 3:56:29 PM PDT by PeterPrinciple (Lord, save me from some conservatives, they don't understand history any better than liberals.)
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To: library user

Um...what’s his email address. I got a couple of questions, too.


23 posted on 04/17/2012 3:58:16 PM PDT by Krankor
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To: PeterPrinciple
There is a tax credit for contribution to a retirment plan ifyou meet certain qualifications.

Maybe. He didn't say anything about a credit, only used "Roth IRA" and "higher refund" together. Unless he's incorporated or something like that those "certain qualifications" probably don't apply to the rest of us.

24 posted on 04/17/2012 4:17:43 PM PDT by ken in texas
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To: ken in texas
According to my financial advisor, you can make an IRA payment in this year to affect last year's income,before the tax filing deadline. I don't know how you designate a deposit made in 2012 for 2011.

We found this out after filing our taxes and played with the numbers. If I added $1000 to the IRA line, our refund went up by $250. It was proportional, for every $1000 invested our refund would go up by $250.

We decided it wasn't worth the hassle and filing an amended return over.

25 posted on 04/17/2012 4:44:42 PM PDT by Dianna
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To: Dianna
According to my financial advisor, you can make an IRA payment in this year to affect last year's income,before the tax filing deadline.

Yes, that is true for a Traditional IRA, and has been true for many years. However, the poster specifically mentioned a Roth IRA. Those IRAs have different rules.

26 posted on 04/17/2012 7:35:41 PM PDT by ken in texas
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To: Skepolitic

with my wife it should be a vanity tax deduction


27 posted on 04/17/2012 8:07:26 PM PDT by gunsequalfreedom (Conservative is not a label of convenience. It is a guide to your actions.)
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