Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-23-2011, 08:42 AM
Junior Member
 
Join Date: Feb 2011
Posts: 1
NJ taxes on simple IRA

Hi

I work for a company in AL who have a simple IRA, I contributed $14,000 in 2010. My permanent residence is NJ (have an aprtment and car registered in AL). My accountant indicates the $14,000 is taxable income in NJ? This is not a distribution, but reduced my taxable incoming by the same amount.

Anyway to avoid NJ tax on this?

Regards Mick



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 02-23-2011, 12:30 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,236
“My accountant indicates the $14,000 is taxable income in NJ? “---->Correct; contributions made to a IRA including SIMPLE-IRA contributions are not tax deductible for New Jersey income tax purposes. Your SIMPLE-IRA contributions in Alaska have not even been taxed (as Alaska has no stte income tax). However,you, as an employee, can deduct your contributions to the plan up to $11,500 ($14,000 for participants age 50 or older) on your federal return per tax year.
“This is not a distribution, but reduced my taxable incoming by the same amount. “---->Your contributions to the plan increase your state gross9 taxable) income, not your federal gross( taxable) income
“Anyway to avoid NJ tax on this?”----> I guess, no.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Are personal taxes seperate from corp taxes secondary S-Corporation 1 02-08-2011 04:20 AM
New Form Aids Processing of Mortgage Applications and Ordering Tax Transcripts Simple Samatg General 0 10-23-2009 05:22 PM
How are beneficiaries of a Simple Trust Taxed? pinky Trusts and Gift Tax Returns 0 05-22-2008 12:25 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning