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

Page 17 - Seeking answers? Join the AnandTech community: where nearly half-a-million members share solutions and discuss the latest tech.

Xcobra

Diamond Member
Oct 19, 2004
3,620
357
126
If you took the standard deduction in the prior year, the refund is not taxable in the current year. It can only be taxable if you itemize.
And even then it might not be wholly taxable. you have to figure out (well the s/w does) how much benefit state the income taxes you claimed last year gave you in sch A. Just a point.
 

gorcorps

aka Brandon
Jul 18, 2004
30,735
446
126
Sweetness... just efiled using TurboTax online. I've never used software before and it was pretty easy, even with 2 states. And having your refund able to direct deposit right to your bank account is icing on the cake.

:thumbsup: Easier than I expected.
 

sjwaste

Diamond Member
Aug 2, 2000
8,760
12
81
I searched so I hope this hasn't been asked already.

I ran through my calculations for this year and it looks like I'm going to owe about $1000. As I understand it, I can contribute to an IRA until April 15, 2011 under the 2010 contribution limits. Does this mean that I can also deduct the amount of that contribution (assuming, for now, that its deductible) if I made it right now on my 2010 return?

I'd rather not owe if it means putting some of my savings into an IRA. Thanks in advance.
 

gorcorps

aka Brandon
Jul 18, 2004
30,735
446
126
I searched so I hope this hasn't been asked already.

I ran through my calculations for this year and it looks like I'm going to owe about $1000. As I understand it, I can contribute to an IRA until April 15, 2011 under the 2010 contribution limits. Does this mean that I can also deduct the amount of that contribution (assuming, for now, that its deductible) if I made it right now on my 2010 return?

I'd rather not owe if it means putting some of my savings into an IRA. Thanks in advance.

I'm 99% sure you can only count contributions you made in the 2010 calendar year. Anything you did now would be valid for 2011. That's how it is with the other deductions but IRAs may be different for some reason.
 

mwtgg

Lifer
Dec 6, 2001
10,491
0
0
I searched so I hope this hasn't been asked already.

I ran through my calculations for this year and it looks like I'm going to owe about $1000. As I understand it, I can contribute to an IRA until April 15, 2011 under the 2010 contribution limits. Does this mean that I can also deduct the amount of that contribution (assuming, for now, that its deductible) if I made it right now on my 2010 return?

I'd rather not owe if it means putting some of my savings into an IRA. Thanks in advance.

You can make and potentially deduct retroactive traditional IRA contributions until the date you file your return, not including extensions.
 

EagleKeeper

Discussion Club Moderator<br>Elite Member
Staff member
Oct 30, 2000
42,591
5
0
The main thing on the contribution made in 2011 for 2010 is that you MUST indicate to the trustee that these funds are for the 2010. Otherwise they will by default apply them for 2011.
 

richardycc

Diamond Member
Apr 29, 2001
5,719
1
81
any tax break for my 2010 filing for a daughter born in Jan 2011? not sure there is, but that's why I am asking here.

ie: can I open an IRA for her now and mark the contribution as 2010?? I have her SSN already.
 
Last edited:

EagleKeeper

Discussion Club Moderator<br>Elite Member
Staff member
Oct 30, 2000
42,591
5
0
any tax break for my 2010 filing for a daughter born in Jan 2011? not sure there is, but that's why I am asking here.

ie: can I open an IRA for her now and mark the contribution as 2010?? I have her SSN already.
Only is she showed up on 1 Jan. Otherwise nothing for 2010 except medical bills during pregnancy that the insurance did not cover.
 

DCal430

Diamond Member
Feb 12, 2011
6,020
9
81
Question about rental property.

A friend of mine has a rental home whose Heater and AC broke. The house had a single wall heater in the living room and a window AC in the living room. This is a 3Bed/2Bath house. It would cost more to fix them then it would be to replace them, so they needed to be replaced.

He decided to take this opportunity to upgrade the AC and heater, so instead of doing a single room units, he had a duct work installed, and had a central heating and AC system installed through the house, obviously this is significantly more expensive then a simple replacement of the wall/window units.

He wants to know how much of this can he call a repair and how much can he call an improvement for deduction purposes? He is hoping he can at least say the amount that it would have cost to simple replace the broken units is a repair, and the rest of the HVAC system would be an improvement.
 

EagleKeeper

Discussion Club Moderator<br>Elite Member
Staff member
Oct 30, 2000
42,591
5
0
Repairs are also deductible as maintenance on the Schedule E. The HVAC work may also fall under maintenance rather than a depreciated improvement.

A special benefit the upgrade to HVAC may provide, is the Federal energy credit for 2010 if the physical units meet the criterea.

Someone should check to see if the energy credit will apply to residental income property.
 

mwtgg

Lifer
Dec 6, 2001
10,491
0
0
Repairs are also deductible as maintenance on the Schedule E. The HVAC work may also fall under maintenance rather than a depreciated improvement.

A special benefit the upgrade to HVAC may provide, is the Federal energy credit for 2010 if the physical units meet the criterea.

Someone should check to see if the energy credit will apply to residental income property.

The Form 5695 energy credit only applies to primary residences, i.e. not even vacation homes.

As far as what to capitalize and what to expense. Basically, I would say all duct work and anything associated with the installation of the new HVAC unit is 27.5yr property.
 

Juddog

Diamond Member
Dec 11, 2006
7,852
6
81
Question for the tax gurus out there.

Situation: My wife started working for a "start-up" type company last year. Little did I know at the time that the owner was a thieving scumbag. He refused to ever pay my wife what he had owed her (in the end, it was 5 weeks back pay), so she left, and filed a complaint with the new york state department of labor. Of course, being New York State, they never did anything other than to say that they were investigating the guy in question (totally useless).

So now it's tax time, and here's the quandry. My wife's original papers showed tax being taken out of her paycheck (which I'm guessing never actually went to New York State, since the business was founded on fraud).

Does she still have to claim the amount paid on her taxes, and pay the extra taxes for the money given even though the owner of said scumbag company never actually filed them? Or since he paid her under the table, should she just not mention it?
 

EagleKeeper

Discussion Club Moderator<br>Elite Member
Staff member
Oct 30, 2000
42,591
5
0
My wife's original papers showed tax being taken out of her paycheck (which I'm guessing never actually went to New York State, since the business was founded on fraud).
She should be able to tell if taxes were withheld by looking at the pay stubs. If the tax was forwarded, that is a different story.

She would be wise to contact the SS, IRS and NY State Dept of Revenue and ask for confirmation that taxes said to be paid against listed income were actually paid.

If those taxes were not; her W2 covers her; but I would file on paper with notes attached so speed up the handling process once the discrepancy is seen.

how you want to handle under the table income is up to you. There is a slot for misc income on the 1040s, you can also use the Schedule C if desired to report the income but write off expenses against it - treating her as an independent operator.
 

Aikouka

Lifer
Nov 27, 2001
30,383
912
126
I'm just about done with preparing my taxes, but I'm curious how I should be handling one part. I moved to AL in February and made all of my income (barring unemployment) in AL. For some reason, NY was set as my primary residence and as such, state taxes were paid. I noticed it about halfway through the year, but I didn't worry because I knew I'd have to file with NY anyway and the unemployment and such meant I owed them at least something.

But the problem is that my W2 for NY lists my entire income as taxable. Since I did not live there or work there while I made any of that money, 0&#37; of it is actually taxable by NYS. So, am I allowed to simply put 0% in TurboTax or do I need to request a W2C that states 0 for taxable income from my current employer? I thought the 0% might look a little fishy, so I thought I'd ask.
 

EagleKeeper

Discussion Club Moderator<br>Elite Member
Staff member
Oct 30, 2000
42,591
5
0
I'm just about done with preparing my taxes, but I'm curious how I should be handling one part. I moved to AL in February and made all of my income (barring unemployment) in AL. For some reason, NY was set as my primary residence and as such, state taxes were paid. I noticed it about halfway through the year, but I didn't worry because I knew I'd have to file with NY anyway and the unemployment and such meant I owed them at least something.

But the problem is that my W2 for NY lists my entire income as taxable. Since I did not live there or work there while I made any of that money, 0% of it is actually taxable by NYS. So, am I allowed to simply put 0% in TurboTax or do I need to request a W2C that states 0 for taxable income from my current employer? I thought the 0% might look a little fishy, so I thought I'd ask.

As noted in the OP; we do not attempt to advise on state taxes. There are to many to be real useful.

Most state income tax forms will have a way to identify income that is taxed by a different state.

Some may be wise and ignore that income when calculating the tax owed for that state.

Others will determine the difference between what you paid to the other state and only refund you the difference.
 

Aikouka

Lifer
Nov 27, 2001
30,383
912
126
I guess I was wondering more about the W2 itself. If my state withholdings were set up correctly in the beginning, I assume I wouldn't have even received a W2 for NY.

I'll just set it to 0&#37; and if they feel the need to audit me, it's not exactly hard to show that my job didn't start paying me until I moved out of NY.

Thanks.
 

mwtgg

Lifer
Dec 6, 2001
10,491
0
0
Question for the tax gurus out there.

Situation: My wife started working for a "start-up" type company last year. Little did I know at the time that the owner was a thieving scumbag. He refused to ever pay my wife what he had owed her (in the end, it was 5 weeks back pay), so she left, and filed a complaint with the new york state department of labor. Of course, being New York State, they never did anything other than to say that they were investigating the guy in question (totally useless).

So now it's tax time, and here's the quandry. My wife's original papers showed tax being taken out of her paycheck (which I'm guessing never actually went to New York State, since the business was founded on fraud).

Does she still have to claim the amount paid on her taxes, and pay the extra taxes for the money given even though the owner of said scumbag company never actually filed them? Or since he paid her under the table, should she just not mention it?

I guess I'm kind of confused. Was she paid under the table or did she receive a W-2? Both?

If she was paid under the table, but was not considered an independent contractor, perhaps she should look into filing Form 8919 for paying the uncollected SS/MC taxes.

If she received a W-2, just go with that. Whether your employer remitted the taxes or not really isn't your problem.
 

Juddog

Diamond Member
Dec 11, 2006
7,852
6
81
She should be able to tell if taxes were withheld by looking at the pay stubs. If the tax was forwarded, that is a different story.

She would be wise to contact the SS, IRS and NY State Dept of Revenue and ask for confirmation that taxes said to be paid against listed income were actually paid.

If those taxes were not; her W2 covers her; but I would file on paper with notes attached so speed up the handling process once the discrepancy is seen.

how you want to handle under the table income is up to you. There is a slot for misc income on the 1040s, you can also use the Schedule C if desired to report the income but write off expenses against it - treating her as an independent operator.

I guess I'm kind of confused. Was she paid under the table or did she receive a W-2? Both?

If she was paid under the table, but was not considered an independent contractor, perhaps she should look into filing Form 8919 for paying the uncollected SS/MC taxes.

If she received a W-2, just go with that. Whether your employer remitted the taxes or not really isn't your problem.

To clarify, she never received a W2 or any type of official paperwork for that matter. The only thing she has is a typed up piece of paper stating x amount of taxes were withheld, but as far as she knows, they were never officially sent off to the IRS. It appears that the owner of the company just kept the money. She has asked the company for W2's or any kind of tax form at all but was completely ignored.

The whole thing was a very shady deal; she was paid only with western union type checks, never officially paid from x company. She's already contacted the IRS, NYS dept of labor, etc. and reported the guy, but the only answer she's ever received when attempting to follow up was that they were "looking into it". Not only did the owner of x shady business not have any official forms, but he also still owed her close to $2000 in back pay when she quit out of frustration of not getting paid for over 5 weeks in a row.
 

Aharami

Lifer
Aug 31, 2001
21,293
146
106
this is most likely not possible, but I doesnt hurt to ask. Is there any way to retroactively move money from a previous paycheck into my HSA? I received my bonus last Fri and instead of letting nearly half the money go into taxes, I wish I'd scheduled a one time move in the amount of my bonus into my HSA. I plan on getting lasik done this year and this would've saved me a lot of money. But it probably just wishful thinking now. :(
 

JEDI

Lifer
Sep 25, 2001
30,160
3,300
126
LEts say i bought 1000 shares of Lucent (LU) in 2000 under the Employee Stock Purchase Program. Market price was $50 so i paid $42.50.

In Dec 2006, Alcatel (ALA) merged with Lucent. The new company is called Alcatel-Lucent (ALU). I received .2 shares of Alcatel for each Lucent share. Thus I now own 200 ALU shares, right?

In 2010 I sell all ALU for $3.75/share. I have a big loss. :(


How do i put all this down on my taxes?
 
Last edited: