3rd Annual AT Tax Time Thread

[snoturtle]

not sure if the right place or not so I will try

Anyone know how to do multiple states with Turbotax Premier?

Fiance' lived in Mass for 6 months but worked in CT
now we live in Maine

Any help would be great

 

[EagleKeeper]

Originally posted by: snoturtle
not sure if the right place or not so I will try

Anyone know how to do multiple states with Turbotax Premier?

Fiance' lived in Mass for 6 months but worked in CT
now we live in Maine

Any help would be great

I have not heard of any tax S/W that can handle multiple states for a single return.
Also; they will charge you for multiple state copies.

Best bet is to install each state on a seperate computer; and copy the master Fed file between them (before a state return is selected) and then treat each state as a partial resident.
This should provide you the numbers; but you may have to file on paper.

 

[snoturtle]

Alright got that to work

now the problem is I'm doing CT now and its saying she owes

From my understanding of it and what we did last year anything she payed into CT was refunded as we didn't live in that state she just worked there

Might be easier to either do them by hand or goto an accountant

 

[sygyzy]

As part of a merger, part of my funds were kept in an escrow to be distributed once a year, over three years. 2005 was the first disbursement. What would this be considered? Ordinary income? Where would I add this to my tax form?

 

[b0mbrman]

Thanks again for doing this...

One more question...if I own a 4-plex and rent out the other three, do I have to report the rental income on both a Schedule C and a Schedule E?

Do I even have to fill out both forms?

 

[randomlinh]

Student Loan Interest Question.... my private student loans through citibank.. they did not report the interest I paid for 2005. I was unaware I had to fill out a W-9S form. Can I still claim this interest? I have an exact number in an email from citibank saying what *would* have been reported.

Thanks!

 

[EagleKeeper]

Originally posted by: b0mbrman
Thanks again for doing this...

One more question...if I own a 4-plex and rent out the other three, do I have to report the rental income on both a Schedule C and a Schedule E?

Do I even have to fill out both forms?

Schedule E Only.
Did into expenses all related expenses. ITems that can be used for both personal and rental should be proportional expensed.
Posing tax related questions can justify the cost of having the internet.

 

[EagleKeeper]

Originally posted by: randomlinh
Student Loan Interest Question.... my private student loans through citibank.. they did not report the interest I paid for 2005. I was unaware I had to fill out a W-9S form. Can I still claim this interest? I have an exact number in an email from citibank saying what *would* have been reported.

Thanks!

You do not have to have a Form sent to you for the interest.

As long as you have documentation to back up your numbers - use it.

 

[randomlinh]

Originally posted by: EagleKeeper

Originally posted by: randomlinh
Student Loan Interest Question.... my private student loans through citibank.. they did not report the interest I paid for 2005. I was unaware I had to fill out a W-9S form. Can I still claim this interest? I have an exact number in an email from citibank saying what *would* have been reported.

Thanks!

You do not have to have a Form sent to you for the interest.

As long as you have documentation to back up your numbers - use it.

cool. i have all my payment stubs too as well, so that should be good.

AT FTW again

 

[EagleKeeper]

Originally posted by: sygyzy
As part of a merger, part of my funds were kept in an escrow to be distributed once a year, over three years. 2005 was the first disbursement. What would this be considered? Ordinary income? Where would I add this to my tax form?

There is a line item for misc income on the 1040.
That is where this amount should be entered.

 

[MrsBugi]

I am currently in graduate school, as a full-time student do I qualify for a "Lifetime Learning Credit" of $2,000?

 

[CPA]

Originally posted by: MrsBugi
I am currently in graduate school, as a full-time student do I qualify for a "Lifetime Learning Credit" of $2,000?

Yes, as long as you had eligible expenses up to that amount.

 

[edprush]

Is there a fee/fine for filing an extension (so I can file later)?

 

[EagleKeeper]

Originally posted by: edprush
Is there a fee/fine for filing an extension (so I can file later)?

No; however you are still responsible for any payment that is due effective tax day.

No pay on time (tax day) and you will be assessed penalties and interest.

All the extension paperwork does is allow you to complete the originial paperwork by 15 Aug.

 

[edprush]

Originally posted by: EagleKeeper

Originally posted by: edprush
Is there a fee/fine for filing an extension (so I can file later)?

No; however you are still responsible for any payment that is due effective tax day.

No pay on time (tax day) and you will be assessed penalties and interest.

All the extension paperwork does is allow you to complete the originial paperwork by 15 Aug.

Why would a person ever file an extension if they paid their taxes on by the due date (Apr. 15)?

 

[EagleKeeper]

Originally posted by: edprush

Originally posted by: EagleKeeper

Originally posted by: edprush
Is there a fee/fine for filing an extension (so I can file later)?

No; however you are still responsible for any payment that is due effective tax day.

No pay on time (tax day) and you will be assessed penalties and interest.

All the extension paperwork does is allow you to complete the originial paperwork by 15 Aug.

Why would a person ever file an extension if they paid their taxes on by the due date (Apr. 15)?

To lazy to fill out all the paperwork.

Many will just send in an anticipated payment if their favorite paper pusher is unable to complete the job.

Example:
A rough estimate may be $10K in taxes will have to be paid.
Options:
Send in a check for $9K - knowing that you will have to pay interest on the missing $1K plus the missing $1K and possibly a penalty, unless a rabbit is pulled out of the hat.

Send in a check for $10K. Reduces the amount of interest that would be compiled and should remove any penalty fees.

Send in a check for $11K. Ensures no interest will have to be paid and Uncle will have to either send back some $$ or you credit it for next year.

 

[robisc]

OK I have a friend that paid to have his taxes done, he had on his 1040 a Line 34 tuition deduction of $3584 and a Job Expense deduction (Business Expense) for $2921 but had it on a form 2106, problem is he neither is in school or has his own business, how can they do this. He called the preparer and all they said was that it was all "within the law" anyone know about this loophole if it is in fact a loophole?

 

[EagleKeeper]

Originally posted by: robisc
OK I have a friend that paid to have his taxes done, he had on his 1040 a Line 34 tuition deduction of $3584 and a Job Expense deduction (Business Expense) for $2921 but had it on a form 2106, problem is he neither is in school or has his own business, how can they do this. He called the preparer and all they said was that it was all "within the law" anyone know about this loophole if it is in fact a loophole?

The first is pure outright FRAUD . If one is not going to school for education of some sort, then they do not qualify for the Hope or the LLC.

The second item, using the 2106 may be valid, depending on what the expenses are for.
Those expenses do not have to be for an actual business; they can be related to ongoing employment and training/equipment to keep up your skills within your profession. The amount also initially goes against the Schedule A with a 2% AGI deduction and the total Schedule A goes against the personal Standard deduction.

Your "friend", should look at notifying the IRS about the preparer. The IRS has a reward system for people for turning in professional tax cheats.

FRAUD costs everyone, you are being asked to pay part of some-one elses fair share.

The preparer is right; both items are within the letter of the law. It could be considered a loophole due to the fact that you do not have to identify the school that the expenses are for.

However; some loopholes are used with the intent of FRAUD. And people get massive fines, penalties and free room & board when they are discovered.

The prepared should not be preparing false/fraudulatent tax returns.

What you have described fit this bill.

 

[sygyzy]

Originally posted by: EagleKeeper

Originally posted by: sygyzy
As part of a merger, part of my funds were kept in an escrow to be distributed once a year, over three years. 2005 was the first disbursement. What would this be considered? Ordinary income? Where would I add this to my tax form?

There is a line item for misc income on the 1040.
That is where this amount should be entered.

I was told by my CPA (from last year) that the distribution (check) I received includes "imputed interest". The company didn not provide me with the exact value but I believe the IRS has a default value to use.

What is imputed interest? How does this affect my tax situation? I don't want to pay taxes on the full amount if I don't have to. I was just going to enter it as MISC Income til I came across her email.

You will need to keep in mind that a portion of those amounts included imputed interest.

 

[MiniGolfIsFun]

Here's a question for my cousin actually.

In 2005, she was working as an english tutor in Japan, and was paid in Japan, in Yen and everything.

We were discussing it and we think that she shouldn't need to file at all since she didn't make money in the US. Is this right or does she still need to file?

 

[Turin39789]

Ok, so im an idiot and just need to be told where to go.

Up until I got off my 1040ez, taxes were a breeze, when i went to the 1040, i did fine but felt like i should have been deducting something(anything)

In 2004 I worked some contract jobs and got two 1099s for them, I also got a 1099 for a forgiven credit card debt. I'm fairly sure that I had it all set up ok, but again hadnt deducted anything, kept meaning to take them somewhere - never did

AKA - didnt file last year, but I am owed money, so im hoping they wont be taking me to jail to pay me money.

This year I got out of debt, and got another 1099 for forgiven credit card debt. I also managed to save a goodwill receipt, and donated some to the united way at work.

Should I even bother with the hassle, when im obviously a n00b, and an unmotivated on at that? Should I go to a place like H&R block or find a cpa? I need to get this taken care of soon so I can get a fafsa filed this year.

I'm a unmarried 23 year old with a small 401k, who rents and has no children. Is it worth it taking this somewhere to get deductions orshould I just spend a few hours disecting irs speak, plug in the numbers off my w-2's and 1099's(I neede a 1040 and a schedule C? right?) and save the fee?

edit -
I made just under 30k this year, and I need to dig up my old forms but I think around 20k last year, maybe less

 

[robisc]

Your "friend", should look at notifying the IRS about the preparer. The IRS has a reward system for people for turning in professional tax cheats.

Thanks for the reply , and FYI this was in fact a friend of mine, but to be honest I was interested when he showed it to me, because I would have done the same thing if it were in fact on the "up and up". Only other possibility is he does have a child in elementary school, (I do too), could the education thing be for that somehow?

 

[EagleKeeper]

Originally posted by: robisc

Your "friend", should look at notifying the IRS about the preparer. The IRS has a reward system for people for turning in professional tax cheats.

Thanks for the reply , and FYI this was in fact a friend of mine, but to be honest I was interested when he showed it to me, because I would have done the same thing if it were in fact on the "up and up". Only other possibility is he does have a child in elementary school, (I do too), could the education thing be for that somehow?

The education is intended for and clearly stated out, that it is for post high school continuing education.

Any other use of the credit is FRAUD!

 

[EagleKeeper]

Originally posted by: Turin39789
Ok, so im an idiot and just need to be told where to go.

Up until I got off my 1040ez, taxes were a breeze, when i went to the 1040, i did fine but felt like i should have been deducting something(anything)

In 2004 I worked some contract jobs and got two 1099s for them, I also got a 1099 for a forgiven credit card debt. I'm fairly sure that I had it all set up ok, but again hadnt deducted anything, kept meaning to take them somewhere - never did

AKA - didnt file last year, but I am owed money, so im hoping they wont be taking me to jail to pay me money.

This year I got out of debt, and got another 1099 for forgiven credit card debt. I also managed to save a goodwill receipt, and donated some to the united way at work.

Should I even bother with the hassle, when im obviously a n00b, and an unmotivated on at that? Should I go to a place like H&R block or find a cpa? I need to get this taken care of soon so I can get a fafsa filed this year.

I'm a unmarried 23 year old with a small 401k, who rents and has no children. Is it worth it taking this somewhere to get deductions orshould I just spend a few hours disecting irs speak, plug in the numbers off my w-2's and 1099's(I neede a 1040 and a schedule C? right?) and save the fee?

edit -
I made just under 30k this year, and I need to dig up my old forms but I think around 20k last year, maybe less

If you did not file for 2004; hopefully you did fill out the forms to verify that you do not owe $$. Or did you just say, "I do not want to go through the hassle" because everything was unfamiliar? Uncle does appreciate you providing them extra spending money.

Go to the IRS TaxFreedom site and use the online tools.
They will walk you plugging in the numbers, and handling the 1099. When you work with the Schedule C, you will be prompted for related expenses.
Based on your income level and you should also then file for free.

 

[EagleKeeper]

Originally posted by: MiniGolfIsFun
Here's a question for my cousin actually.

In 2005, she was working as an english tutor in Japan, and was paid in Japan, in Yen and everything.

We were discussing it and we think that she shouldn't need to file at all since she didn't make money in the US. Is this right or does she still need to file?

If she was not residing the the US/territories and received no income from US sources, then she does not need to file.