2 tax questions

[mtemm]

2 tax questions. we moved from ny to ma at the end of november...dh continued to work for the same company, but we have 2 w2s from them. the only difference on the w2s is the state money...the first w2 shows the amount in ny, the other shows the total state tax (incl. both ny and ma). my assumption is that I would just treat this as 1 w2 for the federal, but where it asks for state still list the 2 states separately (just subracted the ny from total state to get the ma state number). does that make sense? its allowing for it on tax cut so I think I'm right here.

my other question is moving expenses. dh's company paid for closing costs and realtor fees and such as a perk. do we still list them on our taxes? His gross pay did get bumped up for this.

 

[DawnCt1]

I have a different tax question. I am under the impression that insurance settlements are tax free. Is that true?

 

[Dan Murphy]

I would enter each W-2 on its own, it will do the calculations for you. As for the expenses, you are saying that his gross (and I presume you mean his W-2) was increased by that amount? If so, then by entering the numbers from the W-2, it will be calculated to pay tax on it.

Dawn, a casualty claim??

http://www.irs.gov/publications/p547/index.html

(not to be considered tax advice)

 

[golfgal]

If they grossed up his moving expenses, they have that amount in the W2 already as well as the extra tax amount taken out. You don't have to do anything extra.

 

[bicker]

Dan: Whenever I receive income from more states than my company's W-2 forms have space for (typically two), I receive multiple copies of the federal W-2. They should not be entered into the tax preparation program separately, as that would overreport both federal income and federal withholding. If, on the other hand, the two W-2 are truly separate, then they should both be entered.

 

[mtemm]

Dan: Whenever I receive income from more states than my company's W-2 forms have space for (typically two), I receive multiple copies of the federal W-2. They should not be entered into the tax preparation program separately, as that would overreport both federal income and federal withholding. If, on the other hand, the two W-2 are truly separate, then they should both be entered.

so do I just put the total state in instead of listing the tax for both states? Then just change that for the state taxes?

 

[mtemm]

If they grossed up his moving expenses, they have that amount in the W2 already as well as the extra tax amount taken out. You don't have to do anything extra.

okay, but when they ask for realtor fees and stuff like that do I just leave it blank then?

 

[golfgal]

okay, but when they ask for realtor fees and stuff like that do I just leave it blank then?

Is that amount on your W2? If it is, then you would leave it blank, if it is not, then put it in where they ask for that. Make sure they aren't asking what YOU paid for Realtor fees because that is a deduction off your taxes for a move of 50 miles or greater.

 

[Dan Murphy]

bicker, I think I read the OP incorrectly. And yes, I agree, if the federal is the same, just two W-2's due to two different states, then yes, entering the federal twice would double report. I just looked at Turbo Tax (what I use)(and I am not an accountant/CPA) and it has multiple lines for multiple state entries.

(not to be considered tax advice)