3rd Annual AT Tax Time Thread

[tennesota]

Originally posted by: tennesota
I need to file an extension for my Federal return.

Do I fill out and mail Form 4868 by itself or does it have to be included with a return?[/i]

I found the answer to my own question at at www.irs.gov
Form 4868

Filing Your Tax Return
You can file your tax return any time before the extension
expires.

Do not attach a copy of Form 4868 to your return.

 

[CPA]

Originally posted by: LordSnailz
Hopefully, there's still someone to help.

I contributed $220 over the maximum allowed into my roth IRA acct. for the 2005 year and my taxes were mailed in on Friday. What's the best course of action to take to correct this? I talked with Fidelity and they said that I should file a 'IRA return of excess contribution request', I'm just wondering what are the tax implications, if there are any.

Also, what penalties are involved? Is it 6% of the excess contribution AND 10% on the earnings?

My understanding is that you generally get a six month extension from the filing deadline to remove the excess contribution. The penalty after that is only 6% interest. I would correct immediately, though.

 

[CPA]

Originally posted by: RecliningPenguin
Okay, this one is really pushing the limits of "last minute". Hide your eyes from the horror...

Somebody I know, let's just call him RP, did not file a return for Tax Year 2002. He knows that he has "three years from the due date of the return" (according to IRS letter) to file and claim his refund. (He does actually have a refund due since he paid his quarterly estimated taxes for tax year 2002, and these estimated tax payments exceed the tax owed for 2002.)

The question is regarding "three years from the due date of the return". RP filed an extension in 2002, so would the official due date of his 2002 tax return be 4/15/2003, or the extension date 8/15/2003? In other words, does RP need to bust a$$ to mail his 2002 return by the end of the day today (three years after the original due date), or does he have until 8/15/2006 (three years after the extension due date) to let a good CPA review it and submit it -- and kick RP's a$$ for dragging his feet?

You guys absolutely rock for offering up so much of your time and effort towards answering these questions. TIA, big time! :thumbsup:


(Edit)
The following link might shed some light on this question... is this saying that a granted extension in 2002 would allow someone until 8/15/2006 to claim their 2002 tax year refund?
Link: here in paragraphs 8, 9, and 10.

You are correct. It would be from the 8/15 date. Now, go kick his ass.

 

[CPA]

Originally posted by: Anonemous
Doh, I forgot to deduct one of the standard deductions and I already mailed in my form. Should I amend this before or after I receive the refund? I heard they do severe audits for these amended forms is it true?

Pretty much a myth as far as auditing it is concerned, unless it is some strange deduction. I would wait until after the refund is done, sometimes they will correct the deduction themselves.

 

[EagleKeeper]

Originally posted by: CPA

Originally posted by: RecliningPenguin
Okay, this one is really pushing the limits of "last minute". Hide your eyes from the horror...

Somebody I know, let's just call him RP, did not file a return for Tax Year 2002. He knows that he has "three years from the due date of the return" (according to IRS letter) to file and claim his refund. (He does actually have a refund due since he paid his quarterly estimated taxes for tax year 2002, and these estimated tax payments exceed the tax owed for 2002.)

The question is regarding "three years from the due date of the return". RP filed an extension in 2002, so would the official due date of his 2002 tax return be 4/15/2003, or the extension date 8/15/2003? In other words, does RP need to bust a$$ to mail his 2002 return by the end of the day today (three years after the original due date), or does he have until 8/15/2006 (three years after the extension due date) to let a good CPA review it and submit it -- and kick RP's a$$ for dragging his feet?

You guys absolutely rock for offering up so much of your time and effort towards answering these questions. TIA, big time! :thumbsup:


(Edit)
The following link might shed some light on this question... is this saying that a granted extension in 2002 would allow someone until 8/15/2006 to claim their 2002 tax year refund?
Link: here in paragraphs 8, 9, and 10.

You are correct. It would be from the 8/15 date. Now, go kick his ass.

Make sure that you procrastinate until 8/14 before doing so.

 

[theGlove]

Hello, i have one of those no interest loans for my house, meaning i have a regular mortgage and another loan that was used to pay the down payment. Can I deduct the interest paid on the second loan? thanks

 

[EagleKeeper]

Originally posted by: theGlove

Hello, i have one of those no interest loans for my house, meaning i have a regular mortgage and another loan that was used to pay the down payment. Can I deduct the interest paid on the second loan? thanks

Yes - You should have received a 1099 from the loan company showing the interest

 

[theGlove]

yes thanks, i did get the form, i just filed the taxes and happy to get a good return

 

[kranky]

Just wanted to thank EagleKeeper and CPA for the amazing amount of work done in this thread. They set the bar high for Elite members. They have some well-earned R&R coming now that tax season is over.

Kudos to both of you!

 

[CPA]

Originally posted by: kranky
Just wanted to thank EagleKeeper and CPA for the amazing amount of work done in this thread. They set the bar high for Elite members. They have some well-earned R&R coming now that tax season is over.

Kudos to both of you!

Thanks Kranky. Just my way of giving back for all the help I get from this board.

 

[mugs]

I live in NJ but worked in PA for part of last year. NJ and PA have a reciprocity agreement, so any money I made in PA is actually taxed in NJ, NOT PA. PA taxes were withheld though, so I followed PAs instructions to indicate on my PA-40 form that I made $0 and include a copy of my NJ tax return and a note referencing the reciprocity agreement.

When I did my NJ taxes in TurboTax, it asked me how much I paid in taxes in other states and how much income it was for. I paid more than $1400 in state taxes in PA and over $400 to the township I worked in (which I assume I cannot get back). For the $1400+ I only got a credit of ~$1200 on my NJ return according to Turbotax. What about the other $200? Can I get that back from PA? Or did Turbotax do my NJ return wrong? I already filed my returns, but I could do amended returns if it'll save me $200.

 

[EagleKeeper]

Originally posted by: mugs
I live in NJ but worked in PA for part of last year. NJ and PA have a reciprocity agreement, so any money I made in PA is actually taxed in NJ, NOT PA. PA taxes were withheld though, so I followed PAs instructions to indicate on my PA-40 form that I made $0 and include a copy of my NJ tax return and a note referencing the reciprocity agreement.

When I did my NJ taxes in TurboTax, it asked me how much I paid in taxes in other states and how much income it was for. I paid more than $1400 in state taxes in PA and over $400 to the township I worked in (which I assume I cannot get back). For the $1400+ I only got a credit of ~$1200 on my NJ return according to Turbotax. What about the other $200? Can I get that back from PA? Or did Turbotax do my NJ return wrong? I already filed my returns, but I could do amended returns if it'll save me $200.

---------------------------------------------------------------------------------------------
Okay, moving on. This thread is NOT intended to :

-Answer state tax questions. Sorry folks, states are their own beasts. They all have different rules and regs, heck 7 states don't even have income taxes. I am not about to keep up with 43 different state codes. Therefore, I won't be answering state questions. The best way to get an answer for a state question is to call up the State Treasury or Revenue Dept.

 

[MaxDepth]

In before the midnight hour...


Fed - $1530 back to me
NC State - $30 back to me

I like to keep as much money as possible during the year. Any suggestions to keep me going like this for next year? I know buying a house is my highest priority for '06. Any other ideas for keeping my moneuy away from the IRS. I don't mind having a very small tax return or breaking even.

 

[EagleKeeper]

Originally posted by: MaxDepth
I like to keep as much money as possible during the year. Any suggestions to keep me going like this for next year? I know buying a house is my highest priority for '06. Any other ideas for keeping my moneuy away from the IRS. I don't mind having a very small tax return or breaking even.

Some of the below suggestions may not be valid in your situation, however.

Purchase a house.
Rent out part of your existing house.
Fund an IRA
Attend continuing education - Helps with your employment prospects and is partially deductible.

Increase your romatic attempts.

To temporarily keep $$ from Uncle, increase your withhold exemption.
This trick requires disapline; put aside the money that Uncle will normally get their hands on.
Also, you need to monitor the overall amounts so you do not get hit with an underpayment penalty.

 

[latino666]

Its over. Now its vacation time for me. SWEET!

 

[KK]

I just estimated my 2006 taxes, and by the looks of it, I have already paid what I need to for this year. How can I get them to stop pulling money out of my check. How high can I go on the W4 before someone get ticked off? My wife quit working last year to stay home with the 2 kids and I've been just claiming married and 0 allowance, along with 2 bonuses is how I have put in too much too fast.

 

[imported_Mike]

Quick question about writing off milage. Say I need to ship something business related and drive X miles to the post office. The post office is only 2 miles from school, which is not business related.

Can I write of just X miles or 2x miles for the return trip even though the entire trip was dedicated to business?

TIA

 

[EagleKeeper]

Originally posted by: Mike
Quick question about writing off milage. Say I need to ship something business related and drive X miles to the post office. The post office is only 2 miles from school, which is not business related.

Can I write of just X miles or 2x miles for the return trip even though the entire trip was dedicated to business?

TIA

Business Expenses are just that. They only get leary when you look like you have attempted to take a personal expense and turn it into a business expense just for the write off.

ie. Do not go pick up the newspaper on Spring Break, look at backet weaving jobs for 5 mintues then write off the complete trip for Business.

 

[EagleKeeper]

Originally posted by: KK
I just estimated my 2006 taxes, and by the looks of it, I have already paid what I need to for this year. How can I get them to stop pulling money out of my check. How high can I go on the W4 before someone get ticked off? My wife quit working last year to stay home with the 2 kids and I've been just claiming married and 0 allowance, along with 2 bonuses is how I have put in too much too fast.

You can set your W4 exemptions withholding limits to 9 without triggering any papework to the IRS. You may get dirty looks from the payroll people though.
If you do so; make sure that you review the numbers at the end of each quarter to ensure that your calcuations are still legit.

Underpayments can cause penalties and there are rumors that payroll underwithholding when at a single company can trigger audit of company and people.

 

[imported_Mike]

Originally posted by: EagleKeeper

Originally posted by: Mike
Quick question about writing off milage. Say I need to ship something business related and drive X miles to the post office. The post office is only 2 miles from school, which is not business related.

Can I write of just X miles or 2x miles for the return trip even though the entire trip was dedicated to business?

TIA

Business Expenses are just that. They only get leary when you look like you have attempted to take a personal expense and turn it into a business expense just for the write off.

ie. Do not go pick up the newspaper on Spring Break, look at backet weaving jobs for 5 mintues then write off the complete trip for Business.

Thanks for the reply. I am not intending to write the entire trip off though, but I would have gone to school regardless of if I had to go somewhere close by for business.

So If I go to the post office which is 10 miles away, then go to school which is an additional 2 miles, I would write off 20 miles and not 24.

This is my understanding of it....or can I only write off the original 10 miles?

 

[EagleKeeper]

Originally posted by: Mike

Originally posted by: EagleKeeper

Originally posted by: Mike
Quick question about writing off milage. Say I need to ship something business related and drive X miles to the post office. The post office is only 2 miles from school, which is not business related.

Can I write of just X miles or 2x miles for the return trip even though the entire trip was dedicated to business?

TIA

Business Expenses are just that. They only get leary when you look like you have attempted to take a personal expense and turn it into a business expense just for the write off.

ie. Do not go pick up the newspaper on Spring Break, look at backet weaving jobs for 5 mintues then write off the complete trip for Business.

Thanks for the reply. I am not intending to write the entire trip off though, but I would have gone to school regardless of if I had to go somewhere close by for business.

So If I go to the post office which is 10 miles away, then go to school which is an additional 2 miles, I would write off 20 miles and not 24.

This is my understanding of it....or can I only write off the original 10 miles?

20 is legitimate. You are piggybacking the school from business and charging for business use only.

An nasty auditor would say that you only get the distance into the PO parking lot because you were going that way anyhow (if they knew about continuing on to school). That is how they use business expense between two jobs. (only the extra distance needed to go from Job 1 to Job 2.)

That is why it is best to keep records and do not volunteer info when in an audit.

 

[imported_Mike]

Gotcha, thanks.

I keep a detailed record of beginning milage, ending milage and where I went in a log book in my car which I back up at home in excel.

 

[salt9876]

It's funny how people freak out thinking their taxes are due before Midnite on April 17th
when they are due a refund and actually have 3 years to file their taxes to receive their refund.

 

[latino666]

Originally posted by: salt9876
It's funny how people freak out thinking their taxes are due before Midnite on April 17th
when they are due a refund and actually have 3 years to file their taxes to receive their refund.

I seen some people not get their full return amount.

 

[azilaga]

CPA, I just noticed I made a mistake on my 1040. Took the depreciation deduction for selling my car twice...one each for for separate businesses run by me and my wife. It affects my state returns as well. What's the best plan of action?