Thread: Form 1040 confusion

Originally Posted by jim in oregon

My paystub states "reduces taxable gross," referring to my TSP contributions. Now the IRS is questioning a $12,200 contribution in 2006 (I'm married, file jointly and itemize deductions) stating I have over contributed. I believe I'm within the military limits for 2006; perhaps I entered the data on the wrong line. What's the correct line on which to enter this contribution?

What software are you using? And is that over 15% of your gross pay?

For 2006 I did the prep by hand, b/c Turbo Tax seems unable to know how to deal w/ military aspects. And, no, my contributions were less than 15% of base pay. I believe the confusion arises b/c there isn't a line on Form 1040 in the income adjustments area that is specifically for military TSP contributions. I can't even get a knowledgeable answer from the IRS. Thanks for your reply.

Welcome to the Message Board Jim.
Best of luck!
Norman

Not sure how to treat military. But your TSP contributions do not go on the 1040 form anywhere. They're part of the W2 information. Your taxable income would be listed in box 1. Your TSP contributions would be in box 14.

Not sure if this helps.

Originally Posted by jim in oregon

For 2006 I did the prep by hand, b/c Turbo Tax seems unable to know how to deal w/ military aspects. And, no, my contributions were less than 15% of base pay. I believe the confusion arises b/c there isn't a line on Form 1040 in the income adjustments area that is specifically for military TSP contributions. I can't even get a knowledgeable answer from the IRS. Thanks for your reply.

Jim, You don't normally enter your TSP contributions on the 1040 because the taxable wages in box 1 of the W-2 is "net" of your TSP contributions. i.e. salary is 50,000 with TSP contributions of 10,000 then taxable wages per box 1 would be 40,000. Does this have anything to do with combat pay or other hazardous duty pay which is not taxable? if so, I would contact your pay center or Advocates Office. Best of luck!

Just got back and saw the other two replies.

They're right as rain!

If you contribute to the TSP from combat pay, that is suppose to be kept seperate in the TSP. When you withdraw that money (not earnings on that money), it wont get taxed since it was invested tax free. Im not Military but I read it somewhere on the TSP.gov site.