8th Annual Anandtech Tax Time Thread (OP Updated 14th Jan)

[EagleKeeper]

Your reading is same as mine - forgiven and since it applys to the residence; it is not subject to taxation.

Find the same verbage on the IRS Website and place a copy with your copy of the paperwork.
The TT Website will not CYA

 

[Homerboy]

Your reading is same as mine - forgiven and since it applys to the residence; it is not subject to taxation.

Find the same verbage on the IRS Website and place a copy with your copy of the paperwork.
The TT Website will not CYA

Thanks... I just needed some "reassurance" on it I guess
I file electronically, so I'll just print the page out and add it to my paperwork for my keeping.

Whew... that actually saves me THOUSANDS in taxes due.

 

[Kenazo]

No one wants to tackle my Canadian sourced dividend question?

 

[EagleKeeper]

So, here's a question from me, as a Canadian accountant to you guys as US accountants... how does the US tax Canadian sourced dividends received by US individuals?

In Canada these dividends are paid with after-tax corporate dollars. This means that the corp may have paid 30% income tax on the income before it was distributed as a dividend. If you are a Canadian individual you would get a tax credit on your personal return to reflect that and remove the double taxation that would otherwise occur.

Does the US give some credit for the Canadian income tax that would have been paid within the corporation before distributing dividends?

I'm not talking about the additional 15% part XIII withholding tax Canada levies against dividends paid to non-residents, which I'm fairly certain the US has a tax credit to offset.

IRS_FAQ IRC 965 Dividend Repatriation Audit Guidelines
IRS FAQ - Foreign Tax Credit

See if these two help or provide leads. Another option would be to call the IRS with the question

 

[Homerboy]

Your reading is same as mine - forgiven and since it applys to the residence; it is not subject to taxation.

Find the same verbage on the IRS Website and place a copy with your copy of the paperwork.
The TT Website will not CYA

Interestingly, I don't see that exception on the IRS website...

http://www.irs.gov/pub/irs-pdf/i1099ac.pdf

Edit: Yet here it is (just not a form):

http://www.irs.gov/newsroom/article/0,,id=174034,00.html

Edit2: Reading more... maybe it is not covered.

 

[EagleKeeper]

IRS verbage that you linked to seems to apply to an actual foreclosure

 

[Homerboy]

IRS verbage that you linked to seems to apply to an actual foreclosure

Right. I can't seem to find anything relating to non-foreclosure/insolvency.
Stupid work getting in the way though.

 

[Kenazo]

IRS_FAQ IRC 965 Dividend Repatriation Audit Guidelines
IRS FAQ - Foreign Tax Credit

See if these two help or provide leads. Another option would be to call the IRS with the question

Looking at the 2nd link you sent, I see that there is a FTC available for the following:

902 Allows deemed paid or indirect credit for foreign taxes based on the proportion of taxes paid by a corporation on its distributed earnings and profits.

I'm assuming that "distributed earnings and profits" would be what we call a dividend, since a dividend is paid from after tax retained earnings. Would my assumption be reasonable?

 

[pontifex]

I'm using Taxact and I'm trying to enter my 1099-R forms. In field 7 for Distribution Codes, it shows a G.

When I go to Taxact, it tells me I need to enter a numeric # only, and only gives me a dropdown box with the numbers. What do I enter here?


Also, I have 2 1099-R forms. Do I make 2 entries or add them all together?

EDIT: NVM, I completely missed the ALPHA box below it.

 

[EagleKeeper]

Looking at the 2nd link you sent, I see that there is a FTC available for the following:



I'm assuming that "distributed earnings and profits" would be what we call a dividend, since a dividend is paid from after tax retained earnings. Would my assumption be reasonable?

US English for dividend is the same meaning as Canadian English for dividend

 

[Homerboy]

FINALLY found this hunk of crap:

http://www.irs.gov/publications/p4681/ch01.html#en_US_publink1000244114

 

[Kenazo]

US English for dividend is the same meaning as Canadian English for dividend

The English may be the same but the meaning in our tax act might be different, which is why I asked.

 

[EagleKeeper]

US English for dividend is the same meaning as Canadian English for dividend

The English may be the same but the meaning in our tax act might be different, which is why I asked.

Comment was not meant as derogatory.

What you interpreted is what I interpreted the meaning of dividend.
Payment to shareholders by a company after taxes have been paid on profit by the company.

 

[Josh123]

My wife and I purchased a house this past October and still haven't received the form from our mortgage company to complete our taxes. Is it normal to take a while to get it in?

 

[EagleKeeper]

My wife and I purchased a house this past October and still haven't received the form from our mortgage company to complete our taxes. Is it normal to take a while to get it in?

It is only the W2s that have a Jan 31 time limt.

Other paperwork is allowed longer.

Check the company website - you may be able to download the 1098 form from there.

I pulled mine last week on our mortgage.

 

[ViviTheMage]

Are there no tax credits for students for Minnesota filings? I always thought it usually bumped up the return with my GF's 1098-T. She is filing single, so I find it odd it's not helping, or asking on turbotax. With federal she gets the Hope Credit, is there nothing similiar for Minnesota State Tax?

Should I put it in somewhere else? Or not worry?

Looks like a no :

http://www.helpmnsave.org/index.asp?Type=B_BASIC&SEC={4722F43D-8E5E-421C-B056-99047E45919C}&DE={A2D4C666-B865-4C50-A4A5-B0C7C3AFE591}#MINNESOTA%20CREDITS%20&%20DEDUCTIONS

can someone verify?

 

[TheWart]

I have a High Deductible health plan that has an HSA attached to it. In addition to me putting like $1800 into my HSA with post-tax dollars, about $900 of pre-tax earnings were put into my HSA from my paycheck every two weeks. This shows up in Box 14 on my W2.

I am confused because when I am filling out my tax return online, it is saying that contributions to my HSA should be in box 12 with code W? All I have in box 12 of my W2 is my 401K contributions. Does this make sense?

 

[Doppel]

I have a question, and thank you kindly for any answer:

Each year I deduct my city taxes at tax time. However, this year it turns out that my "2010" city taxes were paid by my mortgager not at the end of 2010 as I expected, but in the middle of January, 2011. Can I deduct them for 2010 or must I wait until 2011? Which is important: when the taxes are actually due or when they are actually paid?

 

[EagleKeeper]

I have a question, and thank you kindly for any answer:

Each year I deduct my city taxes at tax time. However, this year it turns out that my "2010" city taxes were paid by my mortgager not at the end of 2010 as I expected, but in the middle of January, 2011. Can I deduct them for 2010 or must I wait until 2011? Which is important: when the taxes are actually due or when they are actually paid?

Your taxes have been paid in 2011 and you can deduct them for the 2011 tax return.

You may want to have a sit down talk with the servicer about this; If the city assesses you a penalty for not paying ion 2010; the servicer should cover that.

 

[ViviTheMage]

Any thoughts on my MN state tax question?

 

[EagleKeeper]

Any thoughts on my MN state tax question?

Key word is bolded.

See answer in the OP

 

[ViviTheMage]

My fault, thanks Eagle!

 

[EagleKeeper]

My fault, thanks Eagle!

go forward and sin no more my son!

 

[S Freud]

I made a stupid mistake but I think it might be a simple fix and wanted to ask you guys in here.

I attended a community college fall term of this last year(sep-december 10th) I was excepted and enrolled in university by November and my tuition was billed to me before the 1st of Jan.

I filed my taxes(1040EZ) with my W2's and 1098T from the Community College.

Just a week ago I received my 1098T from my university.

My problem is that I filed before getting my university 1098T because I assumed it would go on this years taxes. Do I need to file an amendment? How should I go about claiming this tuition?

Thanks!!

 

[EagleKeeper]

I made a stupid mistake but I think it might be a simple fix and wanted to ask you guys in here.

I attended a community college fall term of this last year(sep-december 10th) I was excepted and enrolled in university by November and my tuition was billed to me before the 1st of Jan.

I filed my taxes(1040EZ) with my W2's and 1098T from the Community College.

Just a week ago I received my 1098T from my university.

My problem is that I filed before getting my university 1098T because I assumed it would go on this years taxes. Do I need to file an amendment? How should I go about claiming this tuition?

Thanks!!

If you actually paid the tuition in 2010; you can file a 1040X (ammended return).

Or check the crystal ball to see if the tuition payment might be better off claimed for 2011 when you actually were in class.

You do have the allowed flexability as long as you document the cross over in your records.