Hi,

This is my first year doing taxes, and needless to say I am slightly confused. Both myeslf and my wife live in New Jersey and work in NYC. Exactly which forms do we have to complete? Do we have to complete NY, NJ and federal returns? If so, would a program like TurboTax do all three?

Thanks in advance,
Alan

Alan:

TurboTax will do the return for you, and it will transfer the figures from your W-2s to the state tax software. However, it will not transfer figures from the NY software to the NJ software to properly figure the credit for paying taxes in NY. There are also a few other pitfalls you have to avoid. Finally, to use TurboTax in interview mode will take about four hours.

To buy the TurboTax Basic and the two state softwares will cost you about $85. I assume you are renting, with no children (since this is your first return). For $85, I will prepare your federal return plus both state returns. If you want to efile your federal return, that's an extra $15. I cannot efile the state returns as I am not registered for either NJ or NY.

If you are interested, contact me at [email protected] and we will discuss the details.

Thanks for that info!

I have a 401K that I contribute to out of every paycheck. Do I report this to the IRS even if I haven't made any withdrawals from the 401K? I haven't received a 1099R and am wondering if I should have...

Thanks!

Alan:

The 401K info is already reported on the W-2. If you look at your W-2, there should be an entry in Box 12 with a "D" code and a dollar amount. The dollar amount should represent the amount you contributed to your 401K plan. The "D" code identifies the dollar amount as a 401K contribution for the year.

Also, if you check the amount of wages in box 1, it will be less than the amounts in boxes 3 and 5. The difference between box 1 and 3 should be at least as much as the dollar amount next to the "D" code.

You only get a Form 1099-R when you get a distribution from your 401K or you roll the 401K balance into another account.