Unified ira form #903
Unified ira form #903
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While attempting to implement the IRA tax deduction I realised that IRA contributions were not being captured anywhere. This change creates a new UI page for IRAs that lets a user input both contributions and distributions from an account.
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So an IRA could produce a 5498 (for contributions) and a 1099-R (for distributions), right? In one year someone could receive either a 5498 or a 1099-R or both for the same retirement account? Is there something special about health savings accounts that is not present on 1099-SA? At this point we're looking to support 1099-{B, INT, DIV, SSA, SA, R}. So it seems to me that all of these 1099s could be treated similar to each other in the webforms, and they could all be siblings of each other in the Information data structure. I think as much as possible there should be a one-to-one correspondence between the tax forms the user receives and the webforms. We should maintain as much as possible a simple pipeline from An IRA / HSA is otherwise no different from a brokerage account. Instead of modeling Information based on what accounts the user actually has, we're presently modeling it based on what 1099s/W2s the user actually receives. This is more complicated by the unreported 8949 income, where we do have a reason to track assets from year to year since we might get data about assets that have not been sold in the current tax year. But I think in general the information object should mirror the tax forms (or transaction reports) that a user could have for a given tax year, with as little interpretation as possible. All the interpretation should happen in the return form classes step. |
correct
The coverage type and the dates that you have the coverage are not given on the forms. I made HSA into a single web form since there were some complicated rules around which HSA accounts get counted for a person and how to calculate the maximum contributions based on those two pieces of info. To model that as a separate 1099-SA and 5498-SA would require users to potentially match up those two webforms based on a shared key (like account name) and duplicate the date info. My reasoning to extend that to IRAs follows the same logic. However, I do see that there is less complicated logic around IRAs, so I could instead create a 5498 webform. |
Codecov Report
@@ Coverage Diff @@
## master #903 +/- ##
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- Coverage 53.46% 52.44% -1.03%
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Files 216 217 +1
Lines 9864 9927 +63
Branches 1365 1369 +4
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- Hits 5274 5206 -68
- Misses 4576 4707 +131
Partials 14 14
Continue to review full report at Codecov.
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- split out the contributions and distributions into different sections
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thank you both for looking over this! Since this modifies the Information object, how do data migrations work? |
# Conflicts: # src/core/data/methods.ts # src/redux/data.ts
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Fixed up merge conflicts. I'm just looking at this part:
I thought that the 1099 page would handle 1099-R for employer pension plans, where the taxpayer doesn't have an associated retirement account. What is the difference between a 401(k) and an IRA from our point of view here? Don't they both involve contributions and distributions? |
I think the existing migration here will be enough. Basically that function ensures that all fields are present for every tax year, and then plays existing keys from localstorage on top. So the migration will take the valid, blank state which will contain your individualRetirementAccounts key, then load localStorage on top of that. I think as long as we're just adding keys to Information we don't have to do anything, but if we ever want to move keys around we'll have more work to do |
From looking at the 1040 things are broken down by account type. 401(k), 403(b), and annuities are in one box and then the various flavors of IRA in another box. Other forms like IRA deduction care about the type of IRA. I haven't seen anything that changes based on whether the IRA is an employer pension plan. From that perspective 401(k) is the employer pension plan that is being left on the 1099-R form. IRAs have form 5498 to track the contributions but I don't think there is a corresponding form for a 401(k) |
Yep that makes sense. Ok! |
While attempting to implement the IRA tax deduction I realised that IRA contributions were not being captured anywhere. This change creates a new UI page for IRAs that lets a user input both contributions and distributions from an account.
A couple of things that I'd like feedback on:
f1099sinInformation. How should the older data be migrated?What kind of change does this PR introduce?