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Financial Planning / Tax Strategies


Subject:  Re: ERRONEOUS CONTRIBUTION TO 1999 TRADITIONAL I Date:  9/6/2000  7:35 PM
Author:  TMFTaxes Number:  39628 of 124527

<<For the 1999 tax year I elected a filing status of married-filing separately for both me and my wife. Based on our individual incomes and deductions this filing status provided us a larger refund then filing married-jointly as we have done in the past. The larger refund was confirmed by using my What-If Worksheet within my Intuit Turbo Tax software.>>

Hopefully you also understand community property laws (if you live in a community property state), since a married-separate return can get really complicated and provide very limited relief in that situation. You can read more about this issue in the Taxes FAQ area.

<< Unfortunately, what I overlooked (as well as my TURBO TAX SOFTWARE to my dismay) was that my $2000 IRA contribution [which was made in Feruary 1999] is not allowed due to my income being over $10,000. >>

Right...this assumes of course that you are covered by your employer retirement plan. If you are NOT covered by a qualified plan, all bets are off on the $10,000 limitation for married-separate fili