7th Annual Anandtech Tax Time Thread

[pontifex]

Taxes withheld are based on the amount of income that is expected at an given employer. You control it when a W4 is filled out.

The summation of income and/or a different withholding level could effect the total tax owed and taxes withheld.

Vague, but your income from the last job could have placed you in a different tax bracket or your withholding may not have been accurate.

Also, were those jobs sequential or consecutive?

As long as you do not have control over the 401K $$, you do not need to report anything.

I don't understand any of this tax stuff (hell, any financial stuff) so thats why I ask.

1st W2 is about $2400 which is severance pay from my old job.
2nd W2 is about $300 for a part time job I took while unemployed.
3rd W2 is about $10k from the temp agency I worked for while at my new job.
4th W2 is about $15k from the new job after I became a permanent employee.

 

[onza]

I don't understand any of this tax stuff (hell, any financial stuff) so thats why I ask.

1st W2 is about $2400 which is severance pay from my old job.
2nd W2 is about $300 for a part time job I took while unemployed.
3rd W2 is about $10k from the temp agency I worked for while at my new job.
4th W2 is about $15k from the new job after I became a permanent employee.

more important question is what is in BOX 2. FEDERAL withholding

also notice how the 4th w-2 is the largest?

 

[EagleKeeper]

I don't understand any of this tax stuff (hell, any financial stuff) so thats why I ask.

1st W2 is about $2400 which is severance pay from my old job.
2nd W2 is about $300 for a part time job I took while unemployed.
3rd W2 is about $10k from the temp agency I worked for while at my new job.
4th W2 is about $15k from the new job after I became a permanent employee.

The first two would have minimal taxes withheld.
Adding in the second and you are still below the taxable income threshhold.

The last one forces your income level for that amount to become fully taxable even though stand alone, little tax was withheld.

 

[thegimp03]

I made some extremely bad investment decisions late winter/early spring last year when the market was in freefall. This is my scenario...I know this has something to do with wash sale losses but am not sure how to apply them since I'm not in tax practice.

I bought 50 shares X investment for 3,020 in October 2008
I bought 49 shares X investment for 1,320 in January 2009
I sold 100 shares X investment for 1,503 in early March 2009
I bought 150 shares X investment for 3,200 in mid March 2009
I sold 150 shares of X investment for 5,800 in May 2009

When it's all said and done, I had a little over net $200 in ST cap. loss on X investment. Is this correct or does buying/selling the investment so many times in such a short period of time cancel out the loss I took on the investment from October to March?

 

[purbeast0]

okay I have another noob question about taxes in general...

i started a new job recently and filled out my W-4 form.

I did the 'personal allowances' worksheet, then in line H with the bullet points, the 2nd one stated if you are married and both spouses work, and the combined income is over 32k, then complete the "two earners/multiple jobs worskeet' on page 2.

So I did this, and when I got to line 3 on this worksheet, the top number was smaller than the bottom number, so it told me to put 0 as my exemptions in the W-4 form line 5. I then did the math calculations and everything and I ended up with having to take out an additional $190/check and put that number in line 6 of the W-4 form.

This whole thing is just odd to me, and since I have 0 exemptions, then have an additional $190/check being taken out, that seems like it is a pretty significant amount of $$ being taken out, and I just wanted to ask on here if that is normal.

Again, this is brand new filling out the married portion, so I am just checking with the tax gurus here, thanks.

 

[pontifex]

more important question is what is in BOX 2. FEDERAL withholding

also notice how the 4th w-2 is the largest?

1 - 10.00
2 - 362.22
3 - 1313.25
4 - 812.40

oh, and I had w2 3 and 4 mixed up. 3 was 15k and 4 was about 10k

 

[ViviTheMage]

Me and my GF have lived together for 2+ years (mortgage, both of our names on the mortgage) , can we file jointly somehow? She goes to school half time, works fulltime. I work full time, and run my own company as well. Regardless...should she file for the lifetime learning credit, or American opportunity credit? She is on her 3rd year of school.

Also, the personal casualty and theft loss limit ... does this include someone hitting my vehicle and having to repair it out of pocket? filed a police report and all, if that helps? Or is this regarding death/injuries/medical bills?

 

[alkemyst]

no can do on a boyfriends/girlfriends filing jointly.

For the vehicle run it under your business if possible.

 

[ViviTheMage]

no can do on a boyfriends/girlfriends filing jointly.

For the vehicle run it under your business if possible.

How would I apply the tax benefit under my business exactly? Can I write-off the payments on MY car that I got 16 months ago? that I pay for monthly? Or only the tax I paid on both vehicles? I do write-off on a 55cent per mile base of course.

I was specifically questioning the whole tax break on sales tax mentioning in the OP.

What's the best school deduction for her? lifetime learning credit, or American opportunity credit? She is on her 3rd year of school.


The personal casualty and theft loss limit ... does this include someone hitting my vehicle and having to repair it out of pocket? filed a police report and all, if that helps? Or is this regarding death/injuries/medical bills?

 

[onza]

How would I apply the tax benefit under my business exactly? Can I write-off the payments on MY car that I got 16 months ago? that I pay for monthly? Or only the tax I paid on both vehicles? I do write-off on a 55cent per mile base of course.

I was specifically questioning the whole tax break on sales tax mentioning in the OP.

What's the best school deduction for her? lifetime learning credit, or American opportunity credit? She is on her 3rd year of school.


The personal casualty and theft loss limit ... does this include someone hitting my vehicle and having to repair it out of pocket? filed a police report and all, if that helps? Or is this regarding death/injuries/medical bills?

1. I would just do your car based on miles.
2. American Opp Credit imo.
3. Auto accident = No.

 

[ViviTheMage]

thanks

 

[EagleKeeper]

Sorry - late to this party

IF the vehicle is used for business, then the cost of repairs to the vehicle can be written off on the Schedule C. You also get to write off depreciation

Sales tax deduction is intended for those that are in specific no-income tax states

 

[MartyMcFly3]

I apologize if this has already been asked/answered....

I bought my first home in 2009. I'm trying to get the $8,000 tax credit, as I qualify for it. Can you e-file your taxes with the tax credit? I've heard rumors that at the very least they need a copy of the bill of sale, but have also heard things like you need copies of mail you've received at the new address, your drivers license, etc. I'm assuming if this is the case, you need to mail it in instead. I could not find anything about it though.

Any help would be greatly appreciated. Thanks.

 

[onza]

I apologize if this has already been asked/answered....

I bought my first home in 2009. I'm trying to get the $8,000 tax credit, as I qualify for it. Can you e-file your taxes with the tax credit? I've heard rumors that at the very least they need a copy of the bill of sale, but have also heard things like you need copies of mail you've received at the new address, your drivers license, etc. I'm assuming if this is the case, you need to mail it in instead. I could not find anything about it though.

Any help would be greatly appreciated. Thanks.

Mail only. Expect 7-10weeks before you see your rebate. You will need your HUD statement signed.

 

[CPA]

Sorry - late to this party

IF the vehicle is used for business, then the cost of repairs to the vehicle can be written off on the Schedule C. You also get to write off depreciation

Sales tax deduction is intended for those that are in specific no-income tax states

Actually even in an income tax state, you can elect to take the sales tax deduction instead.

 

[MartyMcFly3]

Mail only. Expect 7-10weeks before you see your rebate. You will need your HUD statement signed.

Thanks!

 

[duragezic]

Contact the company that sends you the dividend checks.

Or use your best guess. Since it is under $10 - the IRS should have no heartburn.

Doh, my fault. They didn't have my address on file. A few days later I got the 1099-DIV in the mail.

Oddly, even their letter says they don't send 1099-DIV for amounts under $10, but they did still, so I got exactly what I need.

Thanks for your help!

 

[akshatp]

As if doing taxes yourself isnt stressful enough, why do they have to complicate it even further? I'm hoping one of you tax-perts can help me out with a simple question.

Single, renter, two W-2's from 2009, one 1099-INT and nothing else. Should be very simple to file in a few minutes, except one of my W-2's has some numbers in boxes 18-20.

Normally, I never see anything in those boxes, but as you can see here:

http://pics.bbzzdd.com/users/akshatp/w2.jpg

Any idea where those numbers actually belong? I usually see the numbers in box 19 in box 14, so I put them there. But what the heck is in box 20?

TurboTax has the following headings for box 18-20.
18. Wages
19. Income Tax
20. Locality

Help!

 

[EagleKeeper]

This looks like a non standard W2

414(h) in Box 20 seems to refer to Form 8880 - Credit for Qualified Retirement Savings Contributions

Best recommendation that I can provide is to go back to the employer and asked what the additional information in Boxes #19 and #20 are from and mean.

 

[EagleKeeper]

Sorry - late to this party

IF the vehicle is used for business, then the cost of repairs to the vehicle can be written off on the Schedule C. You also get to write off depreciation

Sales tax deduction is intended for those that are in specific no-income tax states

Actually even in an income tax state, you can elect to take the sales tax deduction instead.

That is true - which is my choice of words added intended.
Few people that live in income tax states will find that the sales taxes (via the table or receipts) will exceed the income tax withheld.

 

[coloumb]

Received 2009-Misc for payment from a power company to "rent" farm land to build Wind Turbines. I didn't technically own the land last year - but I do own it starting this year. The lease contract was originally between my parents, but they changed it so it [and the land] would be in my name.

Just verifying this is correct [taken from a pdf brochure about wind turbines in North Dakota]

Income from leases or easements, as well as annual payments for turbines, is considered rental or royalty income and not subject to self-employment tax.

So that means I have to file it on Schedule E? 1099-Misc form lists the payment in Box 3 [Other Income] and not Box 1 [Rents] - which Turbo Tax of course does not like.

Or can I just file it as 1099-Misc income since I can't file property taxes for last year on the same land since it wasn't in my name.

I've tried reporting it both ways and it didn't affect the total income for last year. I'm concerned about filing it on Schedule E since I didn't own the land, but I was paid for the rental fees [and filing 1099-Misc income is A LOT freakin easier and less confusing]

 

[ProfJohn]

Question

I lived in North Carolina for part of the year, but never worked in the state (work in South Carolina)

Does this mean that I will have to pay no NC state income tax since I pay SC state income tax??

That is what turbo tax is saying, but I want to be sure before I file so I don't get hit on it later.

 

[Andrew1990]

Ok, I live with my dad and he is doing his taxes this year. He wants to know if he can claim me if I am 19 years old and not in school. I also work part time if that matters.

 

[EagleKeeper]

Received 2009-Misc for payment from a power company to "rent" farm land to build Wind Turbines. I didn't technically own the land last year - but I do own it starting this year. The lease contract was originally between my parents, but they changed it so it [and the land] would be in my name.

Just verifying this is correct [taken from a pdf brochure about wind turbines in North Dakota]

Income from leases or easements, as well as annual payments for turbines, is considered rental or royalty income and not subject to self-employment tax.

So that means I have to file it on Schedule E? 1099-Misc form lists the payment in Box 3 [Other Income] and not Box 1 [Rents] - which Turbo Tax of course does not like.

Or can I just file it as 1099-Misc income since I can't file property taxes for last year on the same land since it wasn't in my name.

I've tried reporting it both ways and it didn't affect the total income for last year. I'm concerned about filing it on Schedule E since I didn't own the land, but I was paid for the rental fees [and filing 1099-Misc income is A LOT freakin easier and less confusing]

I would recommend that you use the 1099-Misc options.

As long as you have the money listed somewhere so it can be accountable, there should not be a problem.

 

[EagleKeeper]

Question

I lived in North Carolina for part of the year, but never worked in the state (work in South Carolina)

Does this mean that I will have to pay no NC state income tax since I pay SC state income tax??

That is what turbo tax is saying, but I want to be sure before I file so I don't get hit on it later.

Per the first post - we can not answer state questions.

You should be paying some tax to NC because you lived there.
Tax S/W does not like to cross state boundaries.
Follow the instructions from the states themselves on their tax forms