All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

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Pioneer
Posts: 1
Registered: ‎03-11-2016

IRA Planning

I work and have a 401k and my wife doesn't  work. How can I get a tax break by contributing  to an IRA for my wife? How much can I contribute and when is the deadline to contribute?

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Moderator
Posts: 89
Registered: ‎10-03-2013

Re: IRA Planning

Hi mr34smith,

 

Welcome to the Community. You can generally contribute up to $5500 by the tax filing deadline. I'd recommend looking at this IRS page for more information on how much you can contribute, when, etc. It has all the details.

 

Retirement Topics - IRA Contribution Limits

 

Hope that helps!

 

~Jillian

Tax Pro
Posts: 5,442
Registered: ‎02-23-2016

Re: IRA Planning

Hi mr34smith,

 

You can contribute up to $5,500 to each plan each year for most plans.  401(K) limits are a little higher though.  You can contribute up to $12,500 for a SIMPLE 401(K) and up to $18,000 for all other 401(K) plans.  If you are age 50 or older, you an make additional catch-up contributions of up to $3,000 for SIMPLE 401(K) plans and up to $6,000 for all other 401(K) plans.  The deadline for contributions to be made is the tax filing deadline, so for instance your deadline for 2015 contributions is April 18th, 2016.  As for a tax break, if you are contributing pre-tax funds through work then you are probably eigible for the savers credit.  If you make the contributions out of pocket, then you can deduct them in the adjustments section of the 1040.

 

Hope this helps.

Pioneer
Posts: 1
Registered: ‎04-04-2016

Childcare expenses

Hello! I have childcare expenses (daycare) for the first time, and I didn't realize I can include these on my return. I have already filed my federal return, but my not my state (Kentucky). I did not see anywhere on the federal return to include it, nor did I see it on the HR Block version of the KY return.

 

How can I proceed with this?

Tax Pro
Posts: 5,442
Registered: ‎02-23-2016

Re: Childcare expenses

Hi Cherdman,

 

This is deductible on your federal return.  In order to add the childcare expenses to you return, you will need to complete a Form 1040X (Amended Tax Return).  You'll need to wait until your return has been processed and you've received your refund before you can do this.  Childcare expenses are reported on Form 2441 (child and dependent care credit).  The place to enter this in the software is located in the credits section.

 

Welcome to the community & I hope this helps.