Skip to comments.Vanity Tax Question
Posted on 04/17/2012 2:05:34 PM PDT by library user
I know I shouldn't have waited til the last minute, but wanted to ask tax-savvy FReepers two questions:
1) What are the odds that the figure on line 54 (Total Credits) of your 1040 is going to be the exact same number as that on line 62 (Federal Income Tax Withheld)?Wouldn't that be one heck of a coincidence, if true? Should I start playing the lottery?
2) Also, my accountant told me to put $510 in a ROTH IRA to get a higher refund. Although I can't find a line item on the 1040 where making such a contribution would affect the refund.Any suggestions on this? Thanks so much for any insight.
PS: I'm having a hard time getting my accountant to answer these questions. I think he's overloaded by last-minute filers and hasn't responded to my email.
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 The money can be withdrawn without tax due if certain requirements have been met...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?
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 The money can be withdrawn without tax due if certain requirements have been met...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?
Um...what’s his email address. I got a couple of questions, too.
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.
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.
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.
with my wife it should be a vanity tax deduction
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