Welcome back! Ask questions, get answers, and join our large community of tax professionals.
- Topics
- Training
- Community
- Product Help
- Industry Discussions
- User Groups
- Discover
- Resources
Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
- Intuit Accountants Community
- :
- Lacerte Tax
- :
- Lacerte Tax Discussions
- :
- 1402(k) exclusion for retired insurance agent payments
1402(k) exclusion for retired insurance agent payments
Options
- Mark Topic as New
- Mark Topic as Read
- Float this Topic for Current User
- Bookmark
- Subscribe
- Printer Friendly Page
jencocpa
Level 1
03-03-2024
12:13 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I have a client who received her "retirement" payments on a 1099-NEC, almost $80K. Doing research, she qualifies under Sec 1402(k) to exclude the payments from SE tax. Does anyone know how this is to be entered into Lacerte? I've tried searching, but cannot figure it out and nothing comes up in the search.
3 Comments 3
qbteachmt
Level 15
03-03-2024
12:05 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Here is the help article:
*******************************
"Level Up" is a gaming function, not a real life function.
"Level Up" is a gaming function, not a real life function.
abctax55
Level 15
03-03-2024
12:23 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Paging Bruce ( @Skylane ) our resident insurance expert.
If this payment truly IS exempt from SE tax (not my area of expertise...) and you can't get the F.1099 changed; my suggestion is to enter it on Screen 14 as SE income, back it out with an explanation, the enter again on Screen 14 as 'other income'.
That allows the IRS to do their matchy matchy drill 😉
"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"
( Generic Comment )"
BobKamman
Level 15
03-03-2024
12:50 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Every time someone posts a "trick the IRS computer" procedure, I have to disagree because doubling the gross income on a return is also likely to double the likelihood of an audit.
Or maybe it will quadruple the likelihood of an audit. Or maybe it makes no difference. I'm just not going to sign a return that says a client is self-employed, when he isn't, and in fact is arguing against it elsewhere.
But what's important here is that there are many hoops to jump through to qualify for 1402(k). Insurance companies have an army of lawyers and accountants to make sure they don't get in trouble with IRS. Your client doesn't. He only has you, and the least you (or your client) should do is ask the company for documentation of why they are using the 1099-NEC.
