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

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velillen

Platinum Member
Jul 12, 2006
2,120
1
81
Ok so in the past i've had it pretty simple. Single, no kids, no debts, no car payments or anything. Basically just straight income for taxing purposes.

This year however i had a couple questions.

1.) First is work related. I work at a shipyard A. However for about 2 months i had to go to another base that (depending on route) was 17 miles away from shipyard a. Since my main work spot is Shipyard A can i claim the driving mileage? Im not sure cause they try to consider us "one base" but i work at shipyard A not shipyard B. Also for figuring mileage is it from my residence or from shipyard A? it would be less for residence. I guess im not sure how that works or if i even qualify, or if it would even be worth it. There are days where i also had to commute to shipyard B, then drive to A for training, then back to B, then home. Can i claim all that driving or only the to and from? A very quick approximation would be ~ 1100 miles over the two months. Even worth it?

2.) I literally just purchased a new truck (2011 toyota tacoma). I dont start making payments till February. Anyhting i need to do for this years tax? My parents had mentioned something baout the tax on the truck being claimable? (might be a state thing...WA state)

and lastly
3.) i plan to cash in about ~$7000 in bonds. Does it overly matter if i cash them all at once? or should i try to break it up and do say 3500 this year and 3500 in jan? Any suggestions there?

Thats all for me! Feels sort of weird i've done taxes for the last ~5 years and they have all been super simple since i didnt have anything to claim! This year might be a bit different though
 

dullard

Elite Member
May 21, 2001
24,882
3,201
126
"depends"

in my case i got hit pretty hard with marriage penalty
I was hit hard with the non-marriage penalty. As in, I got divorced in December (a few years back) then got hit with the single rate for the whole year and had to cough up about $3000 more.
 

LuckyTaxi

Diamond Member
Dec 24, 2000
6,044
23
81
oh man, so confusing...LOL

what im going to do is wait until 2010 is over and take our W2 and plug in number as is (we're both S1). Hopefully this gives us an idea of what our taxes would look like as S1.

I'm at 74k and she's 60k
 
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bruceb

Diamond Member
Aug 20, 2004
8,874
111
106
This shows what the mailing dates are for various tax documents:

Tax%20Form%20Mailing%20Info.jpg
 

Lotheron

Platinum Member
Oct 21, 2002
2,188
2
71
Can you guys confirm that the sales tax deduction is in this year as nothing I've read say it was extended. I've been looking into it heavily as I live in a state with no income tax.
 

EagleKeeper

Discussion Club Moderator<br>Elite Member
Staff member
Oct 30, 2000
42,591
5
0
If I purchase stock A 3 times over the course of last year at different price interval but sold them all at once, how do I report that? Do I have to break it down per each loss since I incur a lost.

Actually I take it back, I've held some of the shares for over a year but did purchase some more recently.

i.e.

2/2009 - Purchase 100 shares @ $4
3/2009 - Purchase 200 shares @ $3
3/2010 - Purchase 200 shares @ $5
8/2010 - Sold ALL 500 shares at $2

Each sale is treated as a seperate transaction with its own gain/loss.
Based on what you provided, it all will be a loss, so the long term/short term will only apply if you have other short term gains
 

EagleKeeper

Discussion Club Moderator<br>Elite Member
Staff member
Oct 30, 2000
42,591
5
0
Can you guys confirm that the sales tax deduction is in this year as nothing I've read say it was extended. I've been looking into it heavily as I live in a state with no income tax.

Answered in the OP
 

guyver01

Lifer
Sep 25, 2000
22,151
5
61
Now through April 15, 2011, you can get 25 FREE copies of your tax return at any Office Depot with an in-house Copy & Print Depot. Take the coupon with you to the store. In exchange Office Depot will print black & white, letter-size, single-sided, full-service copies for you at no charge. The coupon is good for one-time use only and can’t be combined with any other offers.

http://f.chtah.com/i/48/1237020949/CPD_TaxLand_1210.pdf
 

EagleKeeper

Discussion Club Moderator<br>Elite Member
Staff member
Oct 30, 2000
42,591
5
0
Ok so in the past i've had it pretty simple. Single, no kids, no debts, no car payments or anything. Basically just straight income for taxing purposes.

This year however i had a couple questions.

1.) First is work related. I work at a shipyard A. However for about 2 months i had to go to another base that (depending on route) was 17 miles away from shipyard a. Since my main work spot is Shipyard A can i claim the driving mileage? Im not sure cause they try to consider us "one base" but i work at shipyard A not shipyard B. Also for figuring mileage is it from my residence or from shipyard A? it would be less for residence. I guess im not sure how that works or if i even qualify, or if it would even be worth it. There are days where i also had to commute to shipyard B, then drive to A for training, then back to B, then home. Can i claim all that driving or only the to and from? A very quick approximation would be ~ 1100 miles over the two months. Even worth it?

See Items below
  • You can claim the difference between driving to shipyard A vs shipyard B from your place of residence.
  • If you have to drive from one shipyard to another for work; then the mileage is also deductible.
  • You will have to have a written log of some type to back up the mileage and justification for such.
  • You will also have to be using the Schedule A. Mileage is logged under Form 2106

2.) I literally just purchased a new truck (2011 toyota tacoma). I dont start making payments till February. Anyhting i need to do for this years tax? My parents had mentioned something baout the tax on the truck being claimable? (might be a state thing...WA state)

See OP under section "Special Items/Credits"

and lastly
3.) i plan to cash in about ~$7000 in bonds. Does it overly matter if i cash them all at once? or should i try to break it up and do say 3500 this year and 3500 in jan? Any suggestions there?

This is more a question for a financial advisor. Look at the profit being made and what you expect your taxable income will be between the two years.

Thats all for me! Feels sort of weird i've done taxes for the last ~5 years and they have all been super simple since i didnt have anything to claim! This year might be a bit different though

Advice is in bold
 

Lotheron

Platinum Member
Oct 21, 2002
2,188
2
71
Answered in the OP

I did read the entire original post, but couldn't find the info anywhere else. I've been searching frequently to see if they extended that provision as well. Sure enough, I just did another ask google search and it was updated for another 2 years apparently. Was this part of the tax extension?
 

EagleKeeper

Discussion Club Moderator<br>Elite Member
Staff member
Oct 30, 2000
42,591
5
0
I did read the entire original post, but couldn't find the info anywhere else. I've been searching frequently to see if they extended that provision as well. Sure enough, I just did another ask google search and it was updated for another 2 years apparently. Was this part of the tax extension?

I do not know if it was extended in the issues from last week or previously.

Suspicion is from last week, because it was due to expire.
 

mwtgg

Lifer
Dec 6, 2001
10,491
0
0
I do not know if it was extended in the issues from last week or previously.

Suspicion is from last week, because it was due to expire.

It was included in last week's bill. Same goes for the teacher's classroom expense deduction, charitable contributions of IRA proceeds, and charitable contributions of appreciated property for conservation purposes.
 

velillen

Platinum Member
Jul 12, 2006
2,120
1
81
Originally Posted by velillen View Post
Ok so in the past i've had it pretty simple. Single, no kids, no debts, no car payments or anything. Basically just straight income for taxing purposes.

This year however i had a couple questions.

1.) First is work related. I work at a shipyard A. However for about 2 months i had to go to another base that (depending on route) was 17 miles away from shipyard a. Since my main work spot is Shipyard A can i claim the driving mileage? Im not sure cause they try to consider us "one base" but i work at shipyard A not shipyard B. Also for figuring mileage is it from my residence or from shipyard A? it would be less for residence. I guess im not sure how that works or if i even qualify, or if it would even be worth it. There are days where i also had to commute to shipyard B, then drive to A for training, then back to B, then home. Can i claim all that driving or only the to and from? A very quick approximation would be ~ 1100 miles over the two months. Even worth it?

See Items below

* You can claim the difference between driving to shipyard A vs shipyard B from your place of residence.
* If you have to drive from one shipyard to another for work; then the mileage is also deductible.
* You will have to have a written log of some type to back up the mileage and justification for such.
* You will also have to be using the Schedule A. Mileage is logged under Form 2106


2.) I literally just purchased a new truck (2011 toyota tacoma). I dont start making payments till February. Anyhting i need to do for this years tax? My parents had mentioned something baout the tax on the truck being claimable? (might be a state thing...WA state)

See OP under section "Special Items/Credits"

and lastly
3.) i plan to cash in about ~$7000 in bonds. Does it overly matter if i cash them all at once? or should i try to break it up and do say 3500 this year and 3500 in jan? Any suggestions there?

This is more a question for a financial advisor. Look at the profit being made and what you expect your taxable income will be between the two years.

Ok just want to be clear and make sure i understand so pardont he extra questions.

1.) Just to make sure if it is 3 miles to drive from HOME to SY A and it is 9 miles from home to SY B i could only claim 6 miles correct?

Still be ~750 miles at .50 a mile thats ~375 bucks. not to shabby. Written logs would be easy since it was just for two months straight of commuting there instead of shipyard A.

My other question is is it even able to be claimed? I work and go to shipyard A everyday. It is where i work. but our shipyard considers A and B to be "one" shipyard. But we have our own management and everything at SY B. basically does it sound like i could claim it?

2.) Saw the 2009 part and just spaced out on the "not all links updated for 2010 part"

3.) Will do. ill have to look at the brackets i suppose to see exactly what would be best

Thanks in advance!
 

mwtgg

Lifer
Dec 6, 2001
10,491
0
0
Ok just want to be clear and make sure i understand so pardont he extra questions.

1.) Just to make sure if it is 3 miles to drive from HOME to SY A and it is 9 miles from home to SY B i could only claim 6 miles correct?

Still be ~750 miles at .50 a mile thats ~375 bucks. not to shabby. Written logs would be easy since it was just for two months straight of commuting there instead of shipyard A.

My other question is is it even able to be claimed? I work and go to shipyard A everyday. It is where i work. but our shipyard considers A and B to be "one" shipyard. But we have our own management and everything at SY B. basically does it sound like i could claim it?

2.) Saw the 2009 part and just spaced out on the "not all links updated for 2010 part"

3.) Will do. ill have to look at the brackets i suppose to see exactly what would be best

Thanks in advance!

Keep in mind that the mileage deduction is subject to a 2% limitation. That is, you can take the excess over 2% of your AGI. If I had to guess, it's unlikely you'll be able to take anything. Furthermore, it doesn't even appear that you itemize, so it's a moot point.
 

alfa147x

Lifer
Jul 14, 2005
30,030
84
91
I'm a college student and my dad files me as a depended on his taxes.
I have a part time job where I make about $6,960 a year. I also have started a ebay business where I have made $354.25 so far (2 weeks since start up)

Questions:
Do I need to file independently?
Do I pay taxes on my ebay business? If so how?

Thanks for answering my stupid questions!
 

EagleKeeper

Discussion Club Moderator<br>Elite Member
Staff member
Oct 30, 2000
42,591
5
0
I'm a college student and my dad files me as a depended on his taxes.
I have a part time job where I make about $6,960 a year. I also have started a ebay business where I have made $354.25 so far (2 weeks since start up)

Questions:
Do I need to file independently?
Do I pay taxes on my ebay business? If so how?

Thanks for answering my stupid questions!

You and your dad should work it out so that the family unit as a whole pays the least amount of taxes.

The amount of your income will remove any income tax for you at the Federal level as independant, but you would might loose out on the educational credits because of the low income.

Your Dad would be able to take advantage of the educational credits if you are a dependant.

Seperately:
You have a choice of treating your eBay business as a hobby income (misc) and paying straight income and SS tax on the full amount that you declare,

Or you can use the Schedule C which requires you to declare the income; but you can also write off direct and some indirect expenses to lower that taxable income considerably.

Use of Tax software will asssit you and your Dad on seeing the benefits of the different options.
 

alfa147x

Lifer
Jul 14, 2005
30,030
84
91
You and your dad should work it out so that the family unit as a whole pays the least amount of taxes.

The amount of your income will remove any income tax for you at the Federal level as independant, but you would might loose out on the educational credits because of the low income.

Your Dad would be able to take advantage of the educational credits if you are a dependant.

Seperately:
You have a choice of treating your eBay business as a hobby income (misc) and paying straight income and SS tax on the full amount that you declare,

Or you can use the Schedule C which requires you to declare the income; but you can also write off direct and some indirect expenses to lower that taxable income considerably.

Use of Tax software will asssit you and your Dad on seeing the benefits of the different options.

Thank you! Awesome help!

Happy Holidays,
Alfa147x
 

mwtgg

Lifer
Dec 6, 2001
10,491
0
0
Just a heads up that the due date for Federal Form 1040 is actually April 18, 2011 this year. Please be aware that this applies only to your Federal return. Your state return, if any, may still be due on the 15th.

IRS
 

rudeguy

Lifer
Dec 27, 2001
47,371
14
61
What should I do if lil rudeguy's mom tries to claim his as a dependent? He lives with me full time and maybe spent a total of 7 nights at her house this past year.

There is no order or custody for either of us.
 

TrueBlueLS

Platinum Member
Jul 13, 2001
2,932
1
0
I know there are a lot of tax credits for energy efficient items, but is there a credit for home improvement such as a new roof? In the past year of owning my house, I've put one on and am wondering if that is something I can itemize.
 

Xcobra

Diamond Member
Oct 19, 2004
3,620
357
126
What should I do if lil rudeguy's mom tries to claim his as a dependent? He lives with me full time and maybe spent a total of 7 nights at her house this past year.

There is no order or custody for either of us.
Per the rules, you should be claiming him. However, I would get some sort of agreement asap as if both you claim him, this will just delay the processing of your tax returns since it will raise a red flag.
 
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Xcobra

Diamond Member
Oct 19, 2004
3,620
357
126
I know there are a lot of tax credits for energy efficient items, but is there a credit for home improvement such as a new roof? In the past year of owning my house, I've put one on and am wondering if that is something I can itemize.
No, unless you can prove that the improvement is actually energy efficient, i.e. adding energy efficient skylights or the like. The only way you can get any benefit is if you have a rental. You get to depreciate that improvement.