Answers to your Tax Season Questions

Do I have to submit all my W-2 forms even if they're under $5,000? D.K. via e-mail

W-2 forms should be attached to your tax return, no matter how small the amount. The smallest W-2 I've seen was for $8. No matter. The form should still be included with your tax return. The total of the income on all of your W-2s should add up to the total income you report on line 7 of your tax return (line 1 if you use form 1040-EZ).  

If you lost a W-2 form, you should contact the employer and ask for another. 

In early 2000, I had my bank move IRA money from one fund, which wasn't doing very well, and divide it up into two other funds within the same family. I did not receive any of the money. All I received was a statement that the transaction was completed by the bank. I just received my 1099 and the money is listed as if I took the distributions in cash. Am I responsible for paying taxes on money that I never received but had switched to another fund? D.W. via e-mail

Whenever money is removed from a tax-deferred retirement fund such as an IRA, a 1099-R form is issued at the end of the year showing the amount of the withdrawal. The fact that you received a 1099 does not mean that the money is taxable.  

Assuming you moved the money over to another fund that is designated as an IRA, you will enter the amount shown on the 1099-R on line 15a of your tax return. Write the word "Rollover" to the right of line 15a, then put a zero on line 15b, so none of the income will be included with your income that is being taxed.  

I am a law enforcement agent. I was told that there are certain things that can be written off as business necessities. Is this true, and what kinds of things can I write off? I was told that since we have to be clean-shaven and well groomed, we can claim razors and haircuts. Is this true? M.F via e-mail.    

The IRS takes the position that the cost of uniforms that can't pass for street clothes and special tools required of a job are allowed as miscellaneous deductions for those taxpayers who can itemize their deductions.  

Clearly, if you have to purchase your own police uniforms, hat, and special shoes, these would qualify as deductible job-related expenses. The cost of keeping these items clean is also allowed as a deduction. If you're an undercover cop and you dress in jeans and a t-shirt, you get no deduction for the clothing.  

You can deduct the cost of equipment used in your job, such as a gun, handcuffs, club, siren, police car, radio equipment, and other tools of the trade. If you are required to purchase any of these items, you can deduct them from your taxes.  

These deductions go on Schedule A, Itemized Deductions, in the Job Expenses section.  

As for your personal appearance, the IRS won't allow a deduction for the cost of shaving and getting haircuts. After all, most people do these things normally, whether or not their job requires it.  

If my mom claims me on her taxes, can I still receive my tax money from my job? H.H. via e-mail    

Yes, children who are claimed as a dependent by a parent are still entitled to file their own tax return and, if applicable, request a refund of any overpaid taxes.  

You'll probably file a form 1040EZ where you'll list the total amount of money you earned from your job on line one. This amount appears in Box 1 of your W-2 form which you got from your employer.  

On line 5, check the "Yes" box to indicate that your parent is claiming you on her return.  

There's a little worksheet on the back of the 1040EZ that you will fill out to determine your standard deduction, which you will then subtract from the income you earned. Whatever is left, if anything, is subject to tax.  

When you figure out your tax, from the tax table that comes with the 1040EZ form, subtract the tax from the amount of tax that was withheld at your job (this amount appears in box 2 of your W-2 form). The answer is the amount of refund to which you are entitled.