6th Annual Anandtech Tax Time Thread

[EagleKeeper]

Originally posted by: finite automaton

Originally posted by: alkemyst

Originally posted by: finite automaton
I just received my refund the other day, but just heard about the Lifetime Learning Credits today. I have the 1040X and the 8863 in front of me. The 8863 is filled out, but I have no idea where to put the info from the 8863 onto the 1040X. Is it under credits?

Please help!

Thanks,
Bill

Reference:
1040X
8863

it would be under credits, but there is more to it...are you sure you are eligible for Lifetime Learning? How'd you miss it the first time around?

I read the requirements and I meet them..

I missed it the first time around because I did my own taxes online, and the website I used didn't mention anything about it. I read about it on here and googled further. I've been in college for 5 years and this is the first I've heard of Hope/LL.

Your college must be isolated and/or you did not discover ATOT when you joined up.

You should go back and ammened any tax returns filed for 2005-2007 to capture the educational credits as long as you were not classified as an dependant.

 

[EagleKeeper]

Originally posted by: alkemyst

Originally posted by: Davegod75
Hi,

I work for the Fed. Gov't overseas. I was a resident of Maryland before I left and I still technically domiciled there (booooo!). So I have to fill out a MD tax form but my question is with the local tax rates. Change I choose the county with the lowest tax rate? or does it legally have to be the county I last lived in 18 months ago. I'm pretty sure that on my w-4 I filled out it with my APO address.

My w-2 has no address on it for myself, just my name ( It was sent to me electronically at work) and specifies no local wages (box 18), local tax (box 19),or locality (box 20)

Thanks

state tax questions fall outside this thread's scope.

I will make an exception in this case, having experienced your situation.

The county that you lived in before going overses should be used. The tax rates between counties have narrowed considerably. I used to live in Calvert when it had a 2% vs 5 % for PG. I deliberately drove the extra 5 miles to avoid living in southern PG.

MD does not require the withholding of local taxes. These are just piggybacked by percentage onto the state tax when you file the forms.

 

[Maetryx]

I have a Lender Statement - Year 2008 from Prosper Marketplace (prosper.com). In the section Loan Charge-off summary is a an amount of money, equal to the sum of the principal of two loans I made which were charged-of in 2008. I do not expect to ever be paid back for these loans. Technically they could be sold to a 3rd party for a pittance, but I have no control over that, nor do I have an idea of the likelihood of that happening.

I would like to claim the charge-offs as deductions, but there is no guidance from prosper.com on how to do that. Do you have a suggestion? Thank you.

edit I did not receive a 1099-B for these.

 

[Davegod75]

Originally posted by: EagleKeeper

Originally posted by: alkemyst

Originally posted by: Davegod75
Hi,

I work for the Fed. Gov't overseas. I was a resident of Maryland before I left and I still technically domiciled there (booooo!). So I have to fill out a MD tax form but my question is with the local tax rates. Change I choose the county with the lowest tax rate? or does it legally have to be the county I last lived in 18 months ago. I'm pretty sure that on my w-4 I filled out it with my APO address.

My w-2 has no address on it for myself, just my name ( It was sent to me electronically at work) and specifies no local wages (box 18), local tax (box 19),or locality (box 20)

Thanks

state tax questions fall outside this thread's scope.

I will make an exception in this case, having experienced your situation.

The county that you lived in before going overses should be used. The tax rates between counties have narrowed considerably. I used to live in Calvert when it had a 2% vs 5 % for PG. I deliberately drove the extra 5 miles to avoid living in southern PG.

MD does not require the withholding of local taxes. These are just piggybacked by percentage onto the state tax when you file the forms.

Thanks, figured as much. 2.56% is where I lived. I was going for Worcester with 1.25%. 50% difference!!!!

 

[EagleKeeper]

Originally posted by: Maetryx
I have a Lender Statement - Year 2008 from Prosper Marketplace (prosper.com). In the section Loan Charge-off summary is a an amount of money, equal to the sum of the principal of two loans I made which were charged-of in 2008. I do not expect to ever be paid back for these loans. Technically they could be sold to a 3rd party for a pittance, but I have no control over that, nor do I have an idea of the likelihood of that happening.

I would like to claim the charge-offs as deductions, but there is no guidance from prosper.com on how to do that. Do you have a suggestion? Thank you.

edit I did not receive a 1099-B for these.

IRS Link - Business Bad Debts

 

[Aimster]

I paid $72 a month for health insurance. This was private health insurance.
Is this tax deductible?? I didn't get anything from the health insurance company.

 

[EagleKeeper]

Originally posted by: Aimster
I paid $72 a month for health insurance. This was private health insurance.
Is this tax deductible?? I didn't get anything from the health insurance company.

It would show up as an medical deduction on the Schedule A.

Usless unless you itemize and the total medical costs exceed 7.5% of your AGI, it will be of no assistance

 

[LuckyTaxi]

so my gf received $8k from an accident settlement. The $8k is after her lawyer fees, I'm not sure if taxes were taken out.
Does she need to report the $8k?

 

[EagleKeeper]

Originally posted by: LuckyTaxi
so my gf received $8k from an accident settlement. The $8k is after her lawyer fees, I'm not sure if taxes were taken out.
Does she need to report the $8k?

No

 

[pontifex]

Can you deduct your mileage for driving to and from work?

For example, I used my personal car to drive to and work every day, 50 miles round trip. Can I deduct this or does it have to be used specifically for business purposes, like driving to a client site or using it to deliver product, etc?

 

[Pepsei]

can I deduct charitable contributions made by my dependent?

let's said my mom is listed as one of my dependent, she made 800$ donations to her church in 2008, can i use it for my deduction?

 

[CPA]

Originally posted by: pontifex
Can you deduct your mileage for driving to and from work?

For example, I used my personal car to drive to and work every day, 50 miles round trip. Can I deduct this or does it have to be used specifically for business purposes, like driving to a client site or using it to deliver product, etc?

No. you cannot deduct the costs associated with driving back and forth to your normal place of employment. You can however deduct any non-reimbursed company travel beyond the mileage to get to your place of employment.

For example, you need to run to a client instead of the office. Client is 150 miles roundtrip and office is 100 miles roundtrip. You can claim as a job cost, subject to a 2% AGI floor, the mileage difference of 50 miles.

You must be able to itemize and you must meet a 2% to AGI floor first.

 

[CPA]

Originally posted by: Pepsei
can I deduct charitable contributions made by my dependent?

let's said my mom is listed as one of my dependent, she made 800$ donations to her church in 2008, can i use it for my deduction?

No. because even though she is a dependent, it's quite possible she will have to file herself. That said, I doubt she will itemize, but the fact is she made the contribution and has the sole right to claim the deduction.

 

[Pepsei]

Originally posted by: CPA

Originally posted by: Pepsei
can I deduct charitable contributions made by my dependent?

let's said my mom is listed as one of my dependent, she made 800$ donations to her church in 2008, can i use it for my deduction?

No. because even though she is a dependent, it's quite possible she will have to file herself. That said, I doubt she will itemize, but the fact is she made the contribution and has the sole right to claim the deduction.

she's not filing, no job. i guess next time, i'll ask her to make the donation in my name. the letter from the church has her name on it. ooops.

 

[Steve]

I was lazy and did not apply for the stimulus (do I even qualify?). Now I am trying to e-file thru H&R Block TaxCut and it is giving me grief about entering "$0" for Total rebate received.

I've tried using the How Much Was My Stimulus Payment? page on irs.gov and it just gives me "You may not have entered your personal information correctly on the previous page" (I am entering my Number Of Exemptions as 1, is that right?).

I also tried The Recovery Rebate Calculator but apparently it is "Coming Soon!" How can I get over this hurdle? My biggest problem is that I didn't file period last year, laziness again.

 

[alkemyst]

Originally posted by: Steve
I was lazy and did not apply for the stimulus (do I even qualify?). Now I am trying to e-file thru H&R Block TaxCut and it is giving me grief about entering "$0" for Total rebate received.

I've tried using the How Much Was My Stimulus Payment? page on irs.gov and it just gives me "You may not have entered your personal information correctly on the previous page" (I am entering my Number Of Exemptions as 1, is that right?).

I also tried The Recovery Rebate Calculator but apparently it is "Coming Soon!" How can I get over this hurdle? My biggest problem is that I didn't file period last year, laziness again.

If you didn't file last year at all, you need to contact the IRS...we can't really advise on software problems there are too many variables.

 

[CPA]

Originally posted by: Pepsei

Originally posted by: CPA

Originally posted by: Pepsei
can I deduct charitable contributions made by my dependent?

let's said my mom is listed as one of my dependent, she made 800$ donations to her church in 2008, can i use it for my deduction?

No. because even though she is a dependent, it's quite possible she will have to file herself. That said, I doubt she will itemize, but the fact is she made the contribution and has the sole right to claim the deduction.

she's not filing, no job. i guess next time, i'll ask her to make the donation in my name. the letter from the church has her name on it. ooops.

Even then it won't work. You need to have her give you the money and then you donate it.

 

[Gunslinger08]

This federal refund is taking forever. Their "Where's my refund" application says I should have received it by today, but I still haven't. Hurry up, IRS.

 

[EagleKeeper]

Originally posted by: joshsquall
This federal refund is taking forever. Their "Where's my refund" application says I should have received it by today, but I still haven't. Hurry up, IRS.

When did you file?

Have you allowed for 10 calendar days and 2 Fridays?


Direct Deposits usually are sent out to be received on Fridays

 

[Gunslinger08]

Originally posted by: EagleKeeper

Originally posted by: joshsquall
This federal refund is taking forever. Their "Where's my refund" application says I should have received it by today, but I still haven't. Hurry up, IRS.

When did you file?

Have you allowed for 10 calendar days and 2 Fridays?


Direct Deposits usually are sent out to be received on Fridays

It's been over 2 weeks now. I called them today and they told me my return was in the "error department" and to give them up to 20 more days.

 

[EagleKeeper]

Originally posted by: joshsquall

Originally posted by: EagleKeeper

Originally posted by: joshsquall
This federal refund is taking forever. Their "Where's my refund" application says I should have received it by today, but I still haven't. Hurry up, IRS.

When did you file?

Have you allowed for 10 calendar days and 2 Fridays?


Direct Deposits usually are sent out to be received on Fridays

It's been over 2 weeks now. I called them today and they told me my return was in the "error department" and to give them up to 20 more days.

Apparently you hurried to much

 

[Qacer]

I'm trying to calculate the cost basis of my investments. Unfortunately, I don't have the paperwork for some years. Let's say I purchased some shares for a company 4 years ago, and I re-invested the dividends until I sold all of it in 2008.

I don't remember the exact date of purchase. I don't have the paperwork for it anymore (Sharebuilder does not have readily available records online).

How would I handle this?

 

[alkemyst]

Originally posted by: Qacer
I'm trying to calculate the cost basis of my investments. Unfortunately, I don't have the paperwork for some years. Let's say I purchased some shares for a company 4 years ago, and I re-invested the dividends until I sold all of it in 2008.

I don't remember the exact date of purchase. I don't have the paperwork for it anymore (Sharebuilder does not have readily available records online).

How would I handle this?

You are going to need to get those records.

 

[Drakkon]

Originally posted by: Qacer
I'm trying to calculate the cost basis of my investments. Unfortunately, I don't have the paperwork for some years. Let's say I purchased some shares for a company 4 years ago, and I re-invested the dividends until I sold all of it in 2008.

I don't remember the exact date of purchase. I don't have the paperwork for it anymore (Sharebuilder does not have readily available records online).

How would I handle this?

If you can't figure it out you can always put the cost basis as 0 - its what the IRS says to use if you have 'lost your records' or cannot calculate what the basis is (at least thsts what i was told by m tax guy for some stock i had sold - and i will now meticulously track all my purchases from here on out )

 

[EagleKeeper]

Originally posted by: Qacer
I'm trying to calculate the cost basis of my investments. Unfortunately, I don't have the paperwork for some years. Let's say I purchased some shares for a company 4 years ago, and I re-invested the dividends until I sold all of it in 2008.

I don't remember the exact date of purchase. I don't have the paperwork for it anymore (Sharebuilder does not have readily available records online).

How would I handle this?

Go after your banking statements to attempt to locate when you may have purchased the stocks.

The find out what the share price was on those days.

If you know the rough time frame, research the share price and use an average. The IRS may not quibble if you are close.