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Message
Ok-I'm not going to complain about my taxes, but...man do I feel like a hoser
Posted on 4/13/14 at 3:28 pm
Posted on 4/13/14 at 3:28 pm
I have to cut a 15k check to the feds. I'm not happy, but not for the reason you might expect.
So without giving too many details, let me give you the gist of the story.
Part of my annual compensation is deferred. I chose to roll it over to 2014 to avoid the tax hit and avoid going into a higher bracket.
Imagine my surprise when my 2013 W2 arrived and it included the entire deferred amount-EVEN THOUGH I NEVER RECIEVED IT in 2013. Essentially, they kept my money until 2014, earned interest on it-yet I have to take the tax taxes on it for 2013.Huh? When I called them on it-they essentially said Deal with it. It pushed me into a higher tax bracket.
Rather than screw around with it, I have chosen to write the check and hope to work it out later. I don't screw with the IRS ever. It's a life-long philosophy based on watching my Dad get audited every year. Does anybody think I might be able to resolve this in my favor? Any advice on the best way to handle this? It's easy enough to prove I didn't get the compensation until 2014. Or should I just take my medicine. I have Zen-like calm about this, I'm not distraught, I'm just curious what you Tax Gurus think of my predicament as it's not even close to being an area where I have any competence...
EDIT-problem solved. I'm paying the taxes, minus about 4k and filing an amended return in a month or so at the advice of my CPA. I appreciate the help I have received in this thread and apologize for my Tax Incompetency.
So without giving too many details, let me give you the gist of the story.
Part of my annual compensation is deferred. I chose to roll it over to 2014 to avoid the tax hit and avoid going into a higher bracket.
Imagine my surprise when my 2013 W2 arrived and it included the entire deferred amount-EVEN THOUGH I NEVER RECIEVED IT in 2013. Essentially, they kept my money until 2014, earned interest on it-yet I have to take the tax taxes on it for 2013.Huh? When I called them on it-they essentially said Deal with it. It pushed me into a higher tax bracket.
Rather than screw around with it, I have chosen to write the check and hope to work it out later. I don't screw with the IRS ever. It's a life-long philosophy based on watching my Dad get audited every year. Does anybody think I might be able to resolve this in my favor? Any advice on the best way to handle this? It's easy enough to prove I didn't get the compensation until 2014. Or should I just take my medicine. I have Zen-like calm about this, I'm not distraught, I'm just curious what you Tax Gurus think of my predicament as it's not even close to being an area where I have any competence...
EDIT-problem solved. I'm paying the taxes, minus about 4k and filing an amended return in a month or so at the advice of my CPA. I appreciate the help I have received in this thread and apologize for my Tax Incompetency.
This post was edited on 4/13/14 at 4:48 pm
2
Posted on 4/13/14 at 3:50 pm to Lsupimp
Have they given you the money in 2014?
Posted on 4/13/14 at 3:59 pm to LSUFanHouston
Yes in February. I have complete and precise documentation.
This post was edited on 4/13/14 at 4:00 pm
Posted on 4/13/14 at 4:05 pm to Lsupimp
Few options, none of them good.
1) Suck it up. At least you got the money before you had to pay the tax.
2) Push again to have a corrected W-2.
3) Call the IRS and tell them the W-2 you got was incorrect. They will write your employer and tell them to fix it. Of course, this will annoy the employer.
Are you absolutely, 100 percent sure that this was supposed to be deferred comp into 2014 (and not from 2012 into 2013, or not deferred comp at all)?
That really, really sucks if your employer screwed up and won't fix it. Like, I'd probably be contacting headhunters next week because it sucks so bad. That's not the type of place you want to be in.
1) Suck it up. At least you got the money before you had to pay the tax.
2) Push again to have a corrected W-2.
3) Call the IRS and tell them the W-2 you got was incorrect. They will write your employer and tell them to fix it. Of course, this will annoy the employer.
Are you absolutely, 100 percent sure that this was supposed to be deferred comp into 2014 (and not from 2012 into 2013, or not deferred comp at all)?
That really, really sucks if your employer screwed up and won't fix it. Like, I'd probably be contacting headhunters next week because it sucks so bad. That's not the type of place you want to be in.
Posted on 4/13/14 at 4:16 pm to LSUFanHouston
It's not really an "employer". I'm self employed. I sell their products, and they contractually withhold a part of my compensation (for reasons too complex to discuss here)until the end customer has paid in full . This was money that I could have received at any time-but CHOSE to defer to minimize my taxes.
All of this is meticulously documented in various ways that are basically irrefutable. Is this the kind of things I can amend on my 2014 return? That's how I'd like to address this, seeing how it is April 13.
All of this is meticulously documented in various ways that are basically irrefutable. Is this the kind of things I can amend on my 2014 return? That's how I'd like to address this, seeing how it is April 13.
Posted on 4/13/14 at 4:25 pm to Lsupimp
BS - They should file a W-2C - file the return with the numbers you believe are correct and wait for the IRS correspondence that will come - don't let the IRS intimidate you (their best ploy) - prepare now so you can respond promptly with an explanation & documentation supporting your position - if upheld, someone else will have to "deal with it"
Would be glad to assist a fellow TD if I can be of assistance. Might help to have a Third Party Preparerer
Would be glad to assist a fellow TD if I can be of assistance. Might help to have a Third Party Preparerer
Posted on 4/13/14 at 4:27 pm to Tigerntx
Self-employed wages on a W-2???????
Posted on 4/13/14 at 4:37 pm to Tigerntx
10-99. My bad.
Posted on 4/13/14 at 4:39 pm to Lsupimp
If you're a cash basis taxpayer rather than accrual basis then you only pay taxes on moneys recieved in 2013. Seek professional advice.
Posted on 4/13/14 at 4:41 pm to Lsupimp
My CPA just said we should do an amended return, that it had no real effect on my tax bracket, and that I'm really only out about 4k.
Posted on 4/13/14 at 5:19 pm to Lsupimp
Request a corrected W-2 and file for an extension.
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