6th Annual Anandtech Tax Time Thread

[EagleKeeper]

Originally posted by: lokiju

Originally posted by: EagleKeeper

Originally posted by: lokiju
I just got my W2 and noticed that my wages seemed low so I was looking around and theres something called a "section 125 plan" that has x amount of money in it that accounts for the difference.

What's a section 125 plan and why are funds going to it?

Section 125 is the "cafeteria" plan for expenses that you can submit for reimbursement. These are funds that are withheld and you are not taxed on, but must be used (requested) or lost.

WTF, why would that be like that?

I never asked for anything to be held.

So does that mean that I lost that money already since it was for 2008?

EDIT:

In closer inspection of my wife's W2 and mine it looks like they're now calling the Section 125 what is really what was paid in health insurance benefits.

I did not mean to scare you. Some parts of the benefit packages allow you to put money aside before taxes to pay for deductibles & misc items. You select the amounts up front and then submit receipts for them. If you do not request all, the left overs are lost. (IRS/Congressional rules)

As you noticed, the Section 125 Cafeteria plans can cover a multiude of benefit options that are pre-tax.

 

[EagleKeeper]

Originally posted by: amdhunter
Got this notice when I tried to use turbotax software.

http://turbotax.intuit.com/sup.../kb/e-file/ef/343.html

The IRS requires some information from you to verify your identity when you e-file. Prior to this year, you could print and file Form 8453-OL with your signature. However, the IRS has eliminated Form 8453-OL. Going forward, to e-file, anyone using any brand of tax software will need to provide one of these numbers:

* Your exact AGI (adjusted gross income) from last year. We'll show you where to find it. OR
* Your e-file PIN (personal identification number) from last year. If you used a PIN to e-file last year, and you remember it, that will work, too.

This will be my first time personally filing my taxes. I want to e-file, but I don't know if I can. My tax preparer from last year "e-filed" on my behalf. Does this mean I need my AGI to file this year?

This sucks. The IRS just made it impossible for dumbass people like me (who don't keep records) to file. Dammit.

1) Get the AGI from whomever did your taxes last year.

2) The IRS recommends that you keep copies of everything used to generate your return for a 3 years period. That is the amount of time that they have to come back and ask you questions.

3) Tax S/W will retain the information from the previous year. Online or offline, the infomration is retrievable with the proper access. Online is your PIN; offline is your access passwords to the records where they are stored.

 

[amdhunter]

Originally posted by: EagleKeeper

Originally posted by: amdhunter
Got this notice when I tried to use turbotax software.

http://turbotax.intuit.com/sup.../kb/e-file/ef/343.html

The IRS requires some information from you to verify your identity when you e-file. Prior to this year, you could print and file Form 8453-OL with your signature. However, the IRS has eliminated Form 8453-OL. Going forward, to e-file, anyone using any brand of tax software will need to provide one of these numbers:

* Your exact AGI (adjusted gross income) from last year. We'll show you where to find it. OR
* Your e-file PIN (personal identification number) from last year. If you used a PIN to e-file last year, and you remember it, that will work, too.

This will be my first time personally filing my taxes. I want to e-file, but I don't know if I can. My tax preparer from last year "e-filed" on my behalf. Does this mean I need my AGI to file this year?

This sucks. The IRS just made it impossible for dumbass people like me (who don't keep records) to file. Dammit.

1) Get the AGI from whomever did your taxes last year.

2) The IRS recommends that you keep copies of everything used to generate your return for a 3 years period. That is the amount of time that they have to come back and ask you questions.

3) Tax S/W will retain the information from the previous year. Online or offline, the infomration is retrievable with the proper access. Online is your PIN; offline is your access passwords to the records where they are stored.

I have no idea where my preparer is anymore. I didn't keep any records. *sigh*
I guess I'll just have to pay someone this year again. dammit.

 

[amdhunter]

I dont want to pay anyone this year. I am determined to do it myself. Can I just buy a software and print out everything and send via regular mail?

 

[EagleKeeper]

Originally posted by: amdhunter
I dont want to pay anyone this year. I am determined to do it myself. Can I just buy a software and print out everything and send via regular mail?

That is the spirit.:thumbsup:

You can also contact the IRS and ask for them to send you last year's copy of your return.
That way you have the option of using the Free efile and you will have last years AGI for reference

 

[lokiju]

Originally posted by: EagleKeeper

Originally posted by: lokiju

Originally posted by: EagleKeeper

Originally posted by: lokiju
I just got my W2 and noticed that my wages seemed low so I was looking around and theres something called a "section 125 plan" that has x amount of money in it that accounts for the difference.

What's a section 125 plan and why are funds going to it?

Section 125 is the "cafeteria" plan for expenses that you can submit for reimbursement. These are funds that are withheld and you are not taxed on, but must be used (requested) or lost.

WTF, why would that be like that?

I never asked for anything to be held.

So does that mean that I lost that money already since it was for 2008?

EDIT:

In closer inspection of my wife's W2 and mine it looks like they're now calling the Section 125 what is really what was paid in health insurance benefits.

I did not mean to scare you. Some parts of the benefit packages allow you to put money aside before taxes to pay for deductibles & misc items. You select the amounts up front and then submit receipts for them. If you do not request all, the left overs are lost. (IRS/Congressional rules)

As you noticed, the Section 125 Cafeteria plans can cover a multiude of benefit options that are pre-tax.

Basically it's looking like my health benefits that are deducted from my pay each pay check are being treated as pre-tax. Is that normal?

 

[lein]

I have a question regarding organizing a return. I am a resident of Texas however I had a summer internship in California. I was a student then and still am a student now. I was taxed at the "standard" rate, however, my internship was only 3 months long. Should I be filing separately from my parents so I can get a refund from Uncle Sam? Would my parents still be able to claim me as a dependent (and get the associated deductions)? Or would the best approach be to let my parents combine everything into their return (would I see any return; would I see a check in my name or will it be lumped with my parents)?

And regarding filing my CA return, I take it I only have to do one in my name (no parents), regardless of the above?

Thanks!

 

[alkemyst]

anyone know if certification tests are still deductable (Cisco if it matters)? Turbotax qualifies the lifetime learning question now with 'eligible institution'. I knew books are a no go, but I thought the tests could be. I have $500 in testing costs for last year (probably a grand in books ).

Both the testing and the books are sort of required for my job function to stay current. My company will reimburse, but then they keep the books (stupid).

 

[alkemyst]

Originally posted by: lein
I have a question regarding organizing a return. I am a resident of Texas however I had a summer internship in California. I was a student then and still am a student now. I was taxed at the "standard" rate, however, my internship was only 3 months long. Should I be filing separately from my parents so I can get a refund from Uncle Sam? Would my parents still be able to claim me as a dependent (and get the associated deductions)? Or would the best approach be to let my parents combine everything into their return (would I see any return; would I see a check in my name or will it be lumped with my parents)?

And regarding filing my CA return, I take it I only have to do one in my name (no parents), regardless of the above?

Thanks!

you can file taxes separately, but you need to specify 'YES' when asked if someone else claims you as a dependent.

I don't know how much you actually made in three months, nor the taxes you paid; but this sounds like it will not benefit you at all and just cost your parents in the end. You should more than likely qualify for the freebie tax filing programs/websites so you can test the waters with your situation there.

BE VERY CAREFUL if you decide to answer NO to the 'can someone claim you as a dependent'...this is a 100% audit should your parents put you down as a dependent...they will not miss this as your social will show up.

 

[alkemyst]

Originally posted by: lokiju

Basically it's looking like my health benefits that are deducted from my pay each pay check are being treated as pre-tax. Is that normal?

Not normal, but common. It's much better that way.

Being yours are lumped under that Section 125 is wrong IMHO...however, are what are your 'health benefits' and are you deducted for "health insurance" separately?

 

[alkemyst]

Originally posted by: Common Courtesy

Originally posted by: amdhunter
I dont want to pay anyone this year. I am determined to do it myself. Can I just buy a software and print out everything and send via regular mail?

That is the spirit.:thumbsup:

You can also contact the IRS and ask for them to send you last year's copy of your return.
That way you have the option of using the Free efile and you will have last years AGI for reference

Also make sure you hang on to your returns for 7 years along with anything to support deductions. If you ever get audited and don't have these things you can be really screwed.

My brother made this mistake for the first time he filed small business. 5 years later they audited him and he could not find some critical paperwork. The penalty/fees were more than his profits the first three years of his business due to them just clocking penalties each day from the date of incident. He keeps everything now that relates to any deductions he is taking he has not disposed of any records and probably won't even after 7 years has expired due to the fact if they can determine you screwed something up 7 years ago, they can then go back another 7...rinse and repeat.

 

[EagleKeeper]

Originally posted by: alkemyst
anyone know if certification tests are still deductable (Cisco if it matters)? Turbotax qualifies the lifetime learning question now with 'eligible institution'. I knew books are a no go, but I thought the tests could be. I have $500 in testing costs for last year (probably a grand in books ).

Both the testing and the books are sort of required for my job function to stay current. My company will reimburse, but then they keep the books (stupid).

Reading through Pub 970, the certification tests look like they qualify under staying current with employmnet needs. Look at Pg 20

 

[lokiju]

Originally posted by: alkemyst

Originally posted by: lokiju

Basically it's looking like my health benefits that are deducted from my pay each pay check are being treated as pre-tax. Is that normal?

Not normal, but common. It's much better that way.

Being yours are lumped under that Section 125 is wrong IMHO...however, are what are your 'health benefits' and are you deducted for "health insurance" separately?

Thats what I mean, it looks like that Section 125 plan accounts for what I paid out for health insurance for the year and it's being treated as pre-tax, which seems wrong but I didn't know if something in the state of GA change that I'm not aware of...

 

[alkemyst]

Originally posted by: EagleKeeper

Reading through Pub 970, the certification tests look like they qualify under staying current with employmnet needs. Look at Pg 20

Have to figure out how to get turbotax to take it.

 

[alkemyst]

Originally posted by: lokiju

Originally posted by: alkemyst

Originally posted by: lokiju

Basically it's looking like my health benefits that are deducted from my pay each pay check are being treated as pre-tax. Is that normal?

Not normal, but common. It's much better that way.

Being yours are lumped under that Section 125 is wrong IMHO...however, are what are your 'health benefits' and are you deducted for "health insurance" separately?

Thats what I mean, it looks like that Section 125 plan accounts for what I paid out for health insurance for the year and it's being treated as pre-tax, which seems wrong but I didn't know if something in the state of GA change that I'm not aware of...

Could be state based. The insurance being taxed/pretaxed though is a separate thing.

Did you call your HR people?

 

[TallBill]

Question: Should I wait to e-file until Obama changes tax rules? I have my return about 75% complete as forms come in. Wouldn't want to file, have rules change in some stimulus then have to refile.

 

[alkemyst]

I doubt anything done will affect the rules last year. If anything that would apply it would be a rebate check system. I really doubt any changes will see light of day prior to April 15th as well anyway.

 

[Lotheron]

Please excuse me if this has been asked before, however everytime I try to skim for it I start working on something else

Anyway, my SO and I opened a joint checking account at a bank with a bonus for opening the account. They sent me a 1099-INT which I expected. However, it its to my name OR her name. My question is: Does one or the other of us claim this or do we both need to?

 

[alkemyst]

Originally posted by: Lotheron
Please excuse me if this has been asked before, however everytime I try to skim for it I start working on something else

Anyway, my SO and I opened a joint checking account at a bank with a bonus for opening the account. They sent me a 1099-INT which I expected. However, it its to my name OR her name. My question is: Does one or the other of us claim this or do we both need to?

you can do any combination as long as it doesn't exceed the amount on the form.

Say you earned $1000 in interest. You both can claim it as long as the combination of both your claims is $1000 (You can claim $700 and she can claim $300). Also either can claim 100%.

Many times in these situations only one claiming something has a better advantage or at least less of a sting.

 

[Lotheron]

Originally posted by: alkemyst

Originally posted by: Lotheron
Please excuse me if this has been asked before, however everytime I try to skim for it I start working on something else

Anyway, my SO and I opened a joint checking account at a bank with a bonus for opening the account. They sent me a 1099-INT which I expected. However, it its to my name OR her name. My question is: Does one or the other of us claim this or do we both need to?

you can do any combination as long as it doesn't exceed the amount on the form.

Say you earned $1000 in interest. You both can claim it as long as the combination of both your claims is $1000 (You can claim $700 and she can claim $300). Also either can claim 100%.

Many times in these situations only one claiming something has a better advantage or at least less of a sting.

EDIT: NM...

Reading comprehension.. I has it!

 

[lokiju]

Originally posted by: alkemyst

Originally posted by: lokiju

Originally posted by: alkemyst

Originally posted by: lokiju

Basically it's looking like my health benefits that are deducted from my pay each pay check are being treated as pre-tax. Is that normal?

Not normal, but common. It's much better that way.

Being yours are lumped under that Section 125 is wrong IMHO...however, are what are your 'health benefits' and are you deducted for "health insurance" separately?

Thats what I mean, it looks like that Section 125 plan accounts for what I paid out for health insurance for the year and it's being treated as pre-tax, which seems wrong but I didn't know if something in the state of GA change that I'm not aware of...

Could be state based. The insurance being taxed/pretaxed though is a separate thing.

Did you call your HR people?

Been trying, can't get anyone yet. Hopefully one of them can clear it up for me whenever I can get in touch with them.

 

[alkemyst]

Originally posted by: lokiju
Been trying, can't get anyone yet. Hopefully one of them can clear it up for me whenever I can get in touch with them.

That's your best bet...we don't have access to what the 'deal' is.

You have until April, don't fall into the masses that panic. I handle an email account that's been getting tons of 'I DIDN'T GET MY TAX FORM YET!!!!! WTF! '

 

[xSauronx]

before i got a divorce, my ex and i filed a joint return for tax year 2006 , we were separated at the time. she didnt receive her w2 from a previous employer, told me i had everything, so i filed.

got a notice from the IRS of taxes due of about $2k in early 2008. we arranged payment, of course the IRS doesnt split anything despite us being divorced, so ive been making a monthly payment as part of our child support agreement. we're both likely due some sort of refund for year 2008, how is the IRS going to slice that up among our refunds since shes married now and will be filing jointly?

am I going to get the shaft since I file single now?

 

[alkemyst]

You will have to come to an agreement and claim or pay it. Any other way the IRS will be knocking probably.

 

[xSauronx]

Originally posted by: alkemyst
You will have to come to an agreement and claim or pay it. Any other way the IRS will be knocking probably.

well i have a payment agreement with them now. but if i file, my refund will be less than what the total is worth, so wont they take it and still say "hey bitch, you owe us moar money" ?

my concern is that theyll take my refund, say i still owe (and i would), and shed get all her refund. we have a written agreement between the two of us to pay half of it each, since the IRS wont split it or something, but she is likely to spend her refund before she blinks twice and i dont want to get reamed harder than i have to

edit: since it was a joint return filed, we are both on the bill owed, im just worried that ill get screwed since my name was first on the return or something