3rd Annual AT Tax Time Thread

[EagleKeeper]

Originally posted by: DAM
Is there a way to efile if your AIG is more than 50K?


dam(thanks)

You can always e-file.

Some Web sites may charge you depending on your AGI and you usually have to go through certain portals identified on the IRS Web site.

Using PC Tax S/W will also allow you to e-file. You may have to pay the e-filing fee that they charge; however, some may have a mail in rebate for the cost.

 

[EagleKeeper]

Originally posted by: anno
my son is a freshman in college.
for 2005 taxes, he has scholarships = 3250 and allowable expenses on his 1098 = 3847.50, so there was no taxable income there.
he took a disbursement from a mutual fund (3600) to cover some of his room/board expenses so there is some dividend income but well below the amount of income that would be taxable.
he had no other income.
so I'm thinking there's no need for him to file. correct?

what I'm wondering is if we can claim the hope credit.. since it's only good for first 2 years.. for that not quite 600 difference between his scholarship funds and his eligible expenses.

also there was information in a response to fooshkee on 1/24 regarding scholarship income indicating that the cost of textbooks could be excluded/considered eligible expenses and I believe that used to be the case but what I'm reading in publication 970 seems to indicate that is no longer true. verification on that? my daughter is more generously funded and due to weirdnesses in the university's reporting methods, is looking at a taxable overage in excess of 10k this tax year and while it isn't a huge help, being able to minus her book costs from that would help some.. but it doesn't look to me like it's allowable.


anno

1) If you claim the child as a dependent; then apply for the Hope Credit.
2) The child should at least run throguh the steps to prepare a return, even if there is no need to file (no income tax owed). Practice.

3) Unless the books are built into the tutition charges; you are SOL.
Now if you yourself itemize and those books are assisting you in education (understanding her courses), then those could go under Misc Expenses on the Schedule A.

 

[Argo]

I have a move related question.

In 2005 I moved for a job (over 50 miles) so in theory I should be able to write off the moving expenses. The problem is my company paid for all the expenses and then reported that as income on my W2 (thus drastically increasing the amount of taxes I owe). Can I still write off all those expenses on my tax return?

 

[EagleKeeper]

Originally posted by: Argo
I have a move related question.

In 2005 I moved for a job (over 50 miles) so in theory I should be able to write off the moving expenses. The problem is my company paid for all the expenses and then reported that as income on my W2 (thus drastically increasing the amount of taxes I owe). Can I still write off all those expenses on my tax return?

There is a form 3903 for moving expenses - allows you to remove those expenses off the top; avoiding tax on the re-embursement.

 

[coolred]

So i got married July 13th of 2005, from my understand of what i read, the IRS only cares if you were married on the 31st of Dec. So since I was that means I have to file married, or married filing seperately, right? And if I file seperately, I lose out on stuff like the EIC?

 

[Pinot]

Last year I used Turbo Tax 2004. Can I use the 2004 version this year again, or do I have to buy the 2005 version?

 

[anno]

Originally posted by: EagleKeeper
3) Unless the books are built into the tutition charges; you are SOL.
Now if you yourself itemize and those books are assisting you in education (understanding her courses), then those could go under Misc Expenses on the Schedule A.

that's what I thought.

I can claim both of them as dependents this year, and will definitely claim the younger one but won't decide on the older one until both sets of taxes are done each way and we figure out which results in the lowest total bill.

usually I itemize deductions but last year it didn't pay to do so.. the balance on my mortgage decreases each year and the cars get older so the property tax goes down and it was a near thing last year.. it might work out that we're better off doing so again this year. you're saying somehow I can claim the kids textbooks as deductions on my taxes? that's interesting. is it ethical? can I stretch that to include their expenses in film and developing and printing costs for photography classes? heh.. how 'bout that new digital camera body my daughter had to have for her photojournalism class this semester? reaching too far there, I guess.

how about grad school application fees and required tests and portfolio printing expenses.. did someone ask that already? deductable in any way for anybody?

I have one more question regarding medical expenses. specifically health insurance costs. I took the kids and I off my husband's company "provided" health insurance plan in april when the cost for remaining in the group went up to 570 every 2 weeks, and went out and bought my own. the company still pays for his health insurance but that's a benefit, there's no cost to us. when we were in that group the premiums came out of his salary pre-tax but now they're coming out of my bank account after tax. Can I include those health insurance premiums in my medical expenses?

anno

 

[EagleKeeper]

Originally posted by: coolred
So i got married July 13th of 2005, from my understand of what i read, the IRS only cares if you were married on the 31st of Dec. So since I was that means I have to file married, or married filing seperately, right? And if I file seperately, I lose out on stuff like the EIC?

Used the married filing jointly if possible.

 

[EagleKeeper]

Originally posted by: Pinot
Last year I used Turbo Tax 2004. Can I use the 2004 version this year again, or do I have to buy the 2005 version?

Fresh $$$ are required

 

[EagleKeeper]

Originally posted by: anno

Originally posted by: EagleKeeper
3) Unless the books are built into the tutition charges; you are SOL.
Now if you yourself itemize and those books are assisting you in education (understanding her courses), then those could go under Misc Expenses on the Schedule A.

that's what I thought.

I can claim both of them as dependents this year, and will definitely claim the younger one but won't decide on the older one until both sets of taxes are done each way and we figure out which results in the lowest total bill.

usually I itemize deductions but last year it didn't pay to do so.. the balance on my mortgage decreases each year and the cars get older so the property tax goes down and it was a near thing last year.. it might work out that we're better off doing so again this year. you're saying somehow I can claim the kids textbooks as deductions on my taxes? that's interesting. is it ethical? can I stretch that to include their expenses in film and developing and printing costs for photography classes? heh.. how 'bout that new digital camera body my daughter had to have for her photojournalism class this semester? reaching too far there, I guess.

how about grad school application fees and required tests and portfolio printing expenses.. did someone ask that already? deductable in any way for anybody?

I have one more question regarding medical expenses. specifically health insurance costs. I took the kids and I off my husband's company "provided" health insurance plan in april when the cost for remaining in the group went up to 570 every 2 weeks, and went out and bought my own. the company still pays for his health insurance but that's a benefit, there's no cost to us. when we were in that group the premiums came out of his salary pre-tax but now they're coming out of my bank account after tax. Can I include those health insurance premiums in my medical expenses?

anno

All the related educational items (if you can justify it) would go under the Misc section of the Schedule A.
Porfolio printing would be a Misc or a Form 2106 Business expense.

The insurance premiums will go under the Medical Expenses section of Schedule A. However; those have to exceed the 7.5% threashold to have any impact on that line item.

 

[Baked]

Question: My college just mailed me a Form 1098-T stating the tuition I paid this year. What form do I need to claim credit for the month I spent on tuition in 2005? I used electronic tax return through IRS last year. Thanks.

 

[EagleKeeper]

Originally posted by: Baked
Question: My college just mailed me a Form 1098-T stating the tuition I paid this year. What form do I need to claim credit for the month I spent on tuition in 2005? I used electronic tax return through IRS last year. Thanks.

Tax S/W (Web and PC) will ask you about tuition/education. Follow those instructions.

 

[Baked]

Originally posted by: EagleKeeper

Originally posted by: Baked
Question: My college just mailed me a Form 1098-T stating the tuition I paid this year. What form do I need to claim credit for the month I spent on tuition in 2005? I used electronic tax return through IRS last year. Thanks.

Tax S/W (Web and PC) will ask you about tuition/education. Follow those instructions.

Cool, I'll keep an eye out for that section. Thanks.

 

[AStar617]

Originally posted by: EagleKeeper

Originally posted by: DAM
Is there a way to efile if your AIG is more than 50K?


dam(thanks)

You can always e-file.

Some Web sites may charge you depending on your AGI and you usually have to go through certain portals identified on the IRS Web site.

Using PC Tax S/W will also allow you to e-file. You may have to pay the e-filing fee that they charge; however, some may have a mail in rebate for the cost.

I think what he meant was e-file for free with AGI >$50k, and the short answer is no, as of this year. Only TaxCut appears to have an option to get free fed/state e-file regardless of AGI if your return comes on a prepaid debit card, but "fees may apply" in the fine print so take that as you may. :thumbsdown:

 

[promposive]

Hi, I typically just file a 1040EZ and get all of my tax wittheld back. (I am a college student who only works a part time job).
This year it looks like im going to be getting my return, except minus 159$. I dont know too much about taxes, etc... but is there a way I can get this back?
If I do deductions for the work I was doing, (Such as internet access at home, gas to work, food at work? i really dont know) do I have to write up all of my deductions instead of just adding to the standard one?

Any ideas of what I can do?

Thanks in advance.

 

[anno]

Originally posted by: EagleKeeper
All the related educational items (if you can justify it) would go under the Misc section of the Schedule A.

I guess I don't understand the (if you can justify it) part. I wouldn't have had the thought if you hadn't planted it so you must think I might can.. but that thought seed needs a bit more sunlight to grow.

Porfolio printing would be a Misc or a Form 2106 Business expense.

can you point me to a publication/tutorial on understanding miscellaneous expenses? that'd probably save you from answering a lot more of my questions. I expect I'll wind up leaving them all out but I wouldn't mind doing a bit of reading before I decide for sure.

anno

 

[EagleKeeper]

Originally posted by: C0BRA99
Hi, I typically just file a 1040EZ and get all of my tax wittheld back. (I am a college student who only works a part time job).
This year it looks like im going to be getting my return, except minus 159$. I dont know too much about taxes, etc... but is there a way I can get this back?
If I do deductions for the work I was doing, (Such as internet access at home, gas to work, food at work? i really dont know) do I have to write up all of my deductions instead of just adding to the standard one?

Any ideas of what I can do?

Thanks in advance.

If you work partime and get paid a W2 from the employer you will have to file a 1040 and a Schedule A.

The Schedule A will require between $5-10K worth of deductions to show any benefit.
Deductions are Property taxes; state income taxes; insurance payments; charity; casualty losses, business expenses and misc expenses (exceeding 2% AGI).
You can not add to the statndard deduction; You must choose either the standard deductions or itemization using Schedule A.

If you get a 1099 for the work you did; then you can use the Schedule C to reduce the income by writing off expenses.

 

[EagleKeeper]

Originally posted by: anno

Originally posted by: EagleKeeper
All the related educational items (if you can justify it) would go under the Misc section of the Schedule A.

I guess I don't understand the (if you can justify it) part. I wouldn't have had the thought if you hadn't planted it so you must think I might can.. but that thought seed needs a bit more sunlight to grow.

Porfolio printing would be a Misc or a Form 2106 Business expense.

can you point me to a publication/tutorial on understanding miscellaneous expenses? that'd probably save you from answering a lot more of my questions. I expect I'll wind up leaving them all out but I wouldn't mind doing a bit of reading before I decide for sure.

anno

Schedule A Instructions
Form 2106 - Business Expenses - Instructions

 

[Noirish]

So I participated in American Express's Wishlist promotion and won a few things.
I received a 1099M today from them stating other income (for example, I bought something at $300, which is $1000 MSRP, then they state $700 as income).

1. Do I need to file it on my tax?
- It's not like I got it for for free. I had to pay for about 35% MSRP. I consider it a purchase but they consider it a prize. What's the verdict?

2. If I have to file it, how do I go about finding products' FMV? eBay? Online store? B&M printouts?

 

[EagleKeeper]

Originally posted by: Noirish
So I participated in American Express's Wishlist promotion and won a few things.
I received a 1099M today from them stating $1210 other income.

1. Do I need to file it on my tax?
- It's not like I got it for for free. I had to pay for about 35% MSRP. I consider it a purchase but they consider it a prize. What's the verdict?

2. If I have to file it, how do I go about finding products' FMV? eBay? Online store? B&M printouts?

The 1099 is a catch all for moneys paid other than wages.
You can treat it as income. Either in the Misc INcome on the 1040 or treat is as business income.

If treated as business income, use the Schedule C if you wish to compenate for this "income" with expenses associate with the income generation.

 

[CtK]

my friend just got her W-2...
her Wage is $22260 and her income tax is $7346.83, SS tax is $1380.12, and Medicare is $322.77

those tax number seem way off to me??
is her W-2 wrong??

thanks 4 the help

 

[EagleKeeper]

Originally posted by: CtK
my friend just got her W-2...
her Wage is $22260 and her income tax is $7346.83, SS tax is $1380.12, and Medicare is $322.77

those tax number seem way off to me??
is her W-2 wrong??

thanks 4 the help

Why do you think they are way off.
Who knows what she had put down for withholding and/or how it was processed?

 

[CtK]

Originally posted by: EagleKeeper

Originally posted by: CtK
my friend just got her W-2...
her Wage is $22260 and her income tax is $7346.83, SS tax is $1380.12, and Medicare is $322.77

those tax number seem way off to me??
is her W-2 wrong??

thanks 4 the help

Why do you think they are way off.
Who knows what she had put down for withholding and/or how it was processed?

she filed as single only no dependent

 

[EagleKeeper]

30% may be reasonible. That does not mean that it is fair.

See how close the tax return comes to the amount withheld without any additional exemptions coming into play.

 

[Gillbot]

Has there been a change in the income brackets or return amounts? Our household return this year is nearly half of our usual return. Dropped to $1800 from the usual $3500. My wife and I claim 0 all year then we file jointly, no children and usually 1040EZ. Just curious as to why the refund is so low this year.