ATOT's Second Annual Tax Time Thread!

[Panakk]

I bought a house this year. I have a few questions regarding that.

What are deductible with regards to the purchase?
So far i've included:
- loan origination
- mortgage interest

No moving expenses since it's within 50 miles.

Can i deduct all my closing cost? Some of it is paid by the seller.

 

[Mayfriday0529]

I will be filing my taxes for first time using free online e-file but wanted to know what software do you guys recommend which gives you both free federal and state.

I went to the irs.gov and took the test to see which ones i could use and of course both TurboTax and TaxAct are available as well as others.

But according to TurboTax I should be able to get both Federal and State for free but i heard lots of people are having issues with TurboTax but i don't know if that?s only in the retail store versions or also the online versions?

Others that came up on the list were
Esmartax
TaxEngine
H&R Block.

 

[EagleKeeper]

Originally posted by: ub4me
Thanks for your help last time.

I have one more question.
Yesterday, I sent my fed tax return electronically (just one W-2).
Today, however, I received another W-2 from the college that I graduated from.
Numbers are like this:
1. Wages: $28.57
2. Federal Income tax withheld: $0
4. Social security tax withheld: $1.77
6. Medicare tax withheld: $0.41
17. State income tax: $0
19. Local income tax: $0.63

After I received this W-2, I remembered that I gave a guest lecture for a class during the summer.
But at the time, I didn't think they would send me a W-2.

Is it OK to ignore? Or should I send this W-2 with explaination via mail?

File a 1040X by mail.

You wil have to research how your state handles ammended returns if you already sent in your state.

 

[EagleKeeper]

Originally posted by: Panakk
I bought a house this year. I have a few questions regarding that.

What are deductible with regards to the purchase?
So far i've included:
- loan origination
- mortgage interest

No moving expenses since it's within 50 miles.

Can i deduct all my closing cost? Some of it is paid by the seller.

Question raised and answered by my post of 01/26/2005 07:29 PM

 

[EagleKeeper]

Originally posted by: Jnetty99
I will be filing my taxes for first time using free online e-file but wanted to know what software do you guys recommend which gives you both free federal and state.

I went to the irs.gov and took the test to see which ones i could use and of course both TurboTax and TaxAct are available as well as others.

But according to TurboTax I should be able to get both Federal and State for free but i heard lots of people are having issues with TurboTax but i don't know if that?s only in the retail store versions or also the online versions?

Others that came up on the list were
Esmartax
TaxEngine
H&R Block.

TurboTax for 2003 (retail version) had problems with installing extra S/W without owners consent and not cleaning up after exiting the program terminated.

This caused a lot of distrust. Many people switched to other programs. Since then, TurboTax has backtracked on this problem, however, it left a sour taste in some peoples mouth that still exists.

The online version did not have such a problem.

 

[Mayfriday0529]

Originally posted by: EagleKeeper

Originally posted by: Jnetty99
I will be filing my taxes for first time using free online e-file but wanted to know what software do you guys recommend which gives you both free federal and state.

I went to the irs.gov and took the test to see which ones i could use and of course both TurboTax and TaxAct are available as well as others.

But according to TurboTax I should be able to get both Federal and State for free but i heard lots of people are having issues with TurboTax but i don't know if that?s only in the retail store versions or also the online versions?

Others that came up on the list were
Esmartax
TaxEngine
H&R Block.

TurboTax for 2003 (retail version) had problems with installing extra S/W without owners consent and not cleaning up after exiting the program terminated.

This caused a lot of distrust. Many people switched to other programs. Since then, TurboTax has backtracked on this problem, however, it left a sour taste in some peoples mouth that still exists.

The online version did not have such a problem.

I read in other posts here on ATOT that people that bought the new 2004 version can't file because certain forms are not ready and they have to wait until February to recieve them etc etc.

 

[EagleKeeper]

Originally posted by: Jnetty99

Originally posted by: EagleKeeper

Originally posted by: Jnetty99
I will be filing my taxes for first time using free online e-file but wanted to know what software do you guys recommend which gives you both free federal and state.

I went to the irs.gov and took the test to see which ones i could use and of course both TurboTax and TaxAct are available as well as others.

But according to TurboTax I should be able to get both Federal and State for free but i heard lots of people are having issues with TurboTax but i don't know if that?s only in the retail store versions or also the online versions?

Others that came up on the list were
Esmartax
TaxEngine
H&R Block.

TurboTax for 2003 (retail version) had problems with installing extra S/W without owners consent and not cleaning up after exiting the program terminated.

This caused a lot of distrust. Many people switched to other programs. Since then, TurboTax has backtracked on this problem, however, it left a sour taste in some peoples mouth that still exists.

The online version did not have such a problem.

I read in other posts here on ATOT that people that bought the new 2004 version can't file because certain forms are not ready and they have to wait until February to recieve them etc etc.

That is the fault of the government, not the S/W.

The government changed the rules at the last minute. They added requirements and options. The S/W needs to be reworked to support the changes. New artwork, instructions, help, algorithms, etc.

It is like a customer stating that you need to change the coloring of all items on a form during final review of a proposal. To keep the customer (ie. IRS) happy, you must do it. But the delivery date is slipped becuase you now have to make sure that each use of the color is correct and does not conflict.

 

[Mayfriday0529]

Originally posted by: EagleKeeper

Originally posted by: Jnetty99

Originally posted by: EagleKeeper

Originally posted by: Jnetty99
I will be filing my taxes for first time using free online e-file but wanted to know what software do you guys recommend which gives you both free federal and state.

I went to the irs.gov and took the test to see which ones i could use and of course both TurboTax and TaxAct are available as well as others.

But according to TurboTax I should be able to get both Federal and State for free but i heard lots of people are having issues with TurboTax but i don't know if that?s only in the retail store versions or also the online versions?

Others that came up on the list were
Esmartax
TaxEngine
H&R Block.

TurboTax for 2003 (retail version) had problems with installing extra S/W without owners consent and not cleaning up after exiting the program terminated.

This caused a lot of distrust. Many people switched to other programs. Since then, TurboTax has backtracked on this problem, however, it left a sour taste in some peoples mouth that still exists.

The online version did not have such a problem.

I read in other posts here on ATOT that people that bought the new 2004 version can't file because certain forms are not ready and they have to wait until February to recieve them etc etc.

That is the fault of the government, not the S/W.

The government changed the rules at the last minute. They added requirements and options. The S/W needs to be reworked to support the changes. New artwork, instructions, help, algorithms, etc.

It is like a customer stating that you need to change the coloring of all items on a form during final review of a proposal. To keep the customer (ie. IRS) happy, you must do it. But the delivery date is slipped becuase you now have to make sure that each use of the color is correct and does not conflict.

alright thats cool thanks for the info

But do you recommend TurboTax?

 

[EagleKeeper]

Originally posted by: Jnetty99

Originally posted by: EagleKeeper

Originally posted by: Jnetty99

Originally posted by: EagleKeeper

Originally posted by: Jnetty99
I will be filing my taxes for first time using free online e-file but wanted to know what software do you guys recommend which gives you both free federal and state.

I went to the irs.gov and took the test to see which ones i could use and of course both TurboTax and TaxAct are available as well as others.

But according to TurboTax I should be able to get both Federal and State for free but i heard lots of people are having issues with TurboTax but i don't know if that?s only in the retail store versions or also the online versions?

Others that came up on the list were
Esmartax
TaxEngine
H&R Block.

TurboTax for 2003 (retail version) had problems with installing extra S/W without owners consent and not cleaning up after exiting the program terminated.

This caused a lot of distrust. Many people switched to other programs. Since then, TurboTax has backtracked on this problem, however, it left a sour taste in some peoples mouth that still exists.

The online version did not have such a problem.

I read in other posts here on ATOT that people that bought the new 2004 version can't file because certain forms are not ready and they have to wait until February to recieve them etc etc.

That is the fault of the government, not the S/W.

The government changed the rules at the last minute. They added requirements and options. The S/W needs to be reworked to support the changes. New artwork, instructions, help, algorithms, etc.

It is like a customer stating that you need to change the coloring of all items on a form during final review of a proposal. To keep the customer (ie. IRS) happy, you must do it. But the delivery date is slipped becuase you now have to make sure that each use of the color is correct and does not conflict.

alright thats cool thanks for the info

But do you recommend TurboTax?

TurboTax (retail) was the first out of the block and I personally think that it had the best user interface.

When the 2003 problem hit, however, I switched and have not returned.

All of the retail versions have to be blessed by Uncle, how they setup the user I/f and help/prompt system will be different.

The best thing would be for you to find a couple of people that have different makes and spend 5 minutes looking at the U/I before you purchase one for use. Most of the retail versions will also import files from a competitor.

 

[CPA]

Originally posted by: Jnetty99

Originally posted by: EagleKeeper

Originally posted by: Jnetty99

Originally posted by: EagleKeeper

Originally posted by: Jnetty99
I will be filing my taxes for first time using free online e-file but wanted to know what software do you guys recommend which gives you both free federal and state.

I went to the irs.gov and took the test to see which ones i could use and of course both TurboTax and TaxAct are available as well as others.

But according to TurboTax I should be able to get both Federal and State for free but i heard lots of people are having issues with TurboTax but i don't know if that?s only in the retail store versions or also the online versions?

Others that came up on the list were
Esmartax
TaxEngine
H&R Block.

TurboTax for 2003 (retail version) had problems with installing extra S/W without owners consent and not cleaning up after exiting the program terminated.

This caused a lot of distrust. Many people switched to other programs. Since then, TurboTax has backtracked on this problem, however, it left a sour taste in some peoples mouth that still exists.

The online version did not have such a problem.

I read in other posts here on ATOT that people that bought the new 2004 version can't file because certain forms are not ready and they have to wait until February to recieve them etc etc.

That is the fault of the government, not the S/W.

The government changed the rules at the last minute. They added requirements and options. The S/W needs to be reworked to support the changes. New artwork, instructions, help, algorithms, etc.

It is like a customer stating that you need to change the coloring of all items on a form during final review of a proposal. To keep the customer (ie. IRS) happy, you must do it. But the delivery date is slipped becuase you now have to make sure that each use of the color is correct and does not conflict.

alright thats cool thanks for the info

But do you recommend TurboTax?

Taxact.com has their finalized version out already. They had the new tables and forms ready by mid-January. Another reason why I have used them for 4 years.

 

[Mayfriday0529]

Originally posted by: CPA

Originally posted by: Jnetty99

Originally posted by: EagleKeeper

Originally posted by: Jnetty99

Originally posted by: EagleKeeper

Originally posted by: Jnetty99
I will be filing my taxes for first time using free online e-file but wanted to know what software do you guys recommend which gives you both free federal and state.

I went to the irs.gov and took the test to see which ones i could use and of course both TurboTax and TaxAct are available as well as others.

But according to TurboTax I should be able to get both Federal and State for free but i heard lots of people are having issues with TurboTax but i don't know if that?s only in the retail store versions or also the online versions?

Others that came up on the list were
Esmartax
TaxEngine
H&R Block.

TurboTax for 2003 (retail version) had problems with installing extra S/W without owners consent and not cleaning up after exiting the program terminated.

This caused a lot of distrust. Many people switched to other programs. Since then, TurboTax has backtracked on this problem, however, it left a sour taste in some peoples mouth that still exists.

The online version did not have such a problem.

I read in other posts here on ATOT that people that bought the new 2004 version can't file because certain forms are not ready and they have to wait until February to recieve them etc etc.

That is the fault of the government, not the S/W.

The government changed the rules at the last minute. They added requirements and options. The S/W needs to be reworked to support the changes. New artwork, instructions, help, algorithms, etc.

It is like a customer stating that you need to change the coloring of all items on a form during final review of a proposal. To keep the customer (ie. IRS) happy, you must do it. But the delivery date is slipped becuase you now have to make sure that each use of the color is correct and does not conflict.

alright thats cool thanks for the info

But do you recommend TurboTax?

Taxact.com has their finalized version out already. They had the new tables and forms ready by mid-January. Another reason why I have used them for 4 years.

but do they give you free state

 

[gluck]

Tax Experts,
Last year I moved from TX to CA. Worked for first 7 months in Tx and its been a like 4 months in Ca.
I will have to file with 2 W2's. Now since Tx has no state tax so I should be good. Now for Ca I have will have to file 540 NR or whatever that is for partial residence of the state.
Am I on the right track ?
Since I moved from Tx to Ca. Can I right off my travel expenses ? I drove like 1400 miles. What is the upper limit that I can right off ?
I normally do the easy deductions. Would including travel expenses make things complicated and would I have to do itemized deductions ?

 

[CycloWizard]

I've been in college long enough that I should know this, but I always forget... If my permanent address is in state A but I go to college/work in state B, which state do I pay taxes to? Is the answer the same for city taxes?

Thanks! :beer:

 

[Mayfriday0529]

Originally posted by: Jnetty99

Originally posted by: CPA

Originally posted by: Jnetty99

Originally posted by: EagleKeeper

Originally posted by: Jnetty99

Originally posted by: EagleKeeper

Originally posted by: Jnetty99
I will be filing my taxes for first time using free online e-file but wanted to know what software do you guys recommend which gives you both free federal and state.

I went to the irs.gov and took the test to see which ones i could use and of course both TurboTax and TaxAct are available as well as others.

But according to TurboTax I should be able to get both Federal and State for free but i heard lots of people are having issues with TurboTax but i don't know if that?s only in the retail store versions or also the online versions?

Others that came up on the list were
Esmartax
TaxEngine
H&R Block.

TurboTax for 2003 (retail version) had problems with installing extra S/W without owners consent and not cleaning up after exiting the program terminated.

This caused a lot of distrust. Many people switched to other programs. Since then, TurboTax has backtracked on this problem, however, it left a sour taste in some peoples mouth that still exists.

The online version did not have such a problem.

I read in other posts here on ATOT that people that bought the new 2004 version can't file because certain forms are not ready and they have to wait until February to recieve them etc etc.

That is the fault of the government, not the S/W.

The government changed the rules at the last minute. They added requirements and options. The S/W needs to be reworked to support the changes. New artwork, instructions, help, algorithms, etc.

It is like a customer stating that you need to change the coloring of all items on a form during final review of a proposal. To keep the customer (ie. IRS) happy, you must do it. But the delivery date is slipped becuase you now have to make sure that each use of the color is correct and does not conflict.

alright thats cool thanks for the info

But do you recommend TurboTax?

Taxact.com has their finalized version out already. They had the new tables and forms ready by mid-January. Another reason why I have used them for 4 years.

but do they give you free state

Alright TaxAct looks interesting also, although they don't do free state it says it cost only 7.95$ to do it.
one question though on the federal part, is it free to E-file federal? or do you pay just pay the e-file fee for both federal and state?

also do you get the same price whether you do it online or download the program?

Thanks CPA

 

[EagleKeeper]

Originally posted by: gluck
Tax Experts,
Last year I moved from TX to CA. Worked for first 7 months in Tx and its been a like 4 months in Ca.
I will have to file with 2 W2's. Now since Tx has no state tax so I should be good. Now for Ca I have will have to file 540 NR or whatever that is for partial residence of the state.
Am I on the right track ?
Since I moved from Tx to Ca. Can I right off my travel expenses ? I drove like 1400 miles. What is the upper limit that I can right off ?
I normally do the easy deductions. Would including travel expenses make things complicated and would I have to do itemized deductions ?

partial residence of the state - Correct.

Since I moved from Tx to Ca. Can I right off my travel expenses ? I drove like 1400 miles. What is the upper limit that I can right off ?
There is no limit other than the 50 mile test. You will use a Form 3903 with the 1040 or 1040A. You do not have to itemize. Mileage, meals, lodging and moving costs all fall under this area.

 

[EagleKeeper]

Originally posted by: CycloWizard
I've been in college long enough that I should know this, but I always forget... If my permanent address is in state A but I go to college/work in state B, which state do I pay taxes to? Is the answer the same for city taxes?

Thanks! :beer:

You should file in both states (resident and work). Work/School state, you indicate that you are a non-resident in the filing status. In theory, you should pay taxes to your home state and they will share with the non-resident state. The non-resident state may want the taxes and will then share with the home state. That is for their bookkeepers/accountants to worry about.

You just need to follow the proper directions for each or choose the school state a a residence if it makes more tax sense.

 

[CycloWizard]

Originally posted by: EagleKeeper

Originally posted by: CycloWizard
I've been in college long enough that I should know this, but I always forget... If my permanent address is in state A but I go to college/work in state B, which state do I pay taxes to? Is the answer the same for city taxes?

Thanks! :beer:

You should file in both states (resident and work). Work/School state, you indicate that you are a non-resident in the filing status. In theory, you should pay taxes to your home state and they will share with the non-resident state. The non-resident state may want the taxes and will then share with the home state. That is for their bookkeepers/accountants to worry about.

You just need to follow the proper directions for each or choose the school state a a residence if it makes more tax sense.

Both? Bah! Thanks anyway. :beer:

 

[EagleKeeper]

Originally posted by: CycloWizard

Originally posted by: EagleKeeper

Originally posted by: CycloWizard
I've been in college long enough that I should know this, but I always forget... If my permanent address is in state A but I go to college/work in state B, which state do I pay taxes to? Is the answer the same for city taxes?

Thanks! :beer:

You should file in both states (resident and work). Work/School state, you indicate that you are a non-resident in the filing status. In theory, you should pay taxes to your home state and they will share with the non-resident state. The non-resident state may want the taxes and will then share with the home state. That is for their bookkeepers/accountants to worry about.

You just need to follow the proper directions for each or choose the school state a a residence if it makes more tax sense.

Both? Bah! Thanks anyway. :beer:

Thant is what happens when you have split addresses. If you do not need the non-schol one for now, drop it.

 

[archcommus]

Thanks for the awesome thread guys.

I'm 17 and this is my first year filing. I worked ten months in 2004 at two different jobs and earned less than $5,000. Hopefully I'll be getting a decent refund. Can someone clarify for me how local taxes work? Is it filed separately in the same manner that state and federal is done? I know I will owe money as my employers did not take out any local tax.

Also, for someone doing a simple 1040EZ like myself, should I try something like TurboTax free online, or just go the regular paper-and-pen route?

 

[CPA]

Originally posted by: archcommus87
Thanks for the awesome thread guys.

I'm 17 and this is my first year filing. I worked ten months in 2004 at two different jobs and earned less than $5,000. Hopefully I'll be getting a decent refund. Can someone clarify for me how local taxes work? Is it filed separately in the same manner that state and federal is done? I know I will earn money as my employers did not take out any local tax.

Also, for someone doing a simple 1040EZ like myself, should I try something like TurboTax free online, or just go the regular paper-and-pen route?

Yes, local taxes are generally filed seperately from state. Check with your state first, though.

 

[EagleKeeper]

Originally posted by: archcommus87
Thanks for the awesome thread guys.

I'm 17 and this is my first year filing. I worked ten months in 2004 at two different jobs and earned less than $5,000. Hopefully I'll be getting a decent refund. Can someone clarify for me how local taxes work? Is it filed separately in the same manner that state and federal is done? I know I will earn money as my employers did not take out any local tax.

Also, for someone doing a simple 1040EZ like myself, should I try something like TurboTax free online, or just go the regular paper-and-pen route?

Best bet is for you to due the taxes online. All the filing headaches for Fed/State & local will be taken care of with one clickof the mouse.
Your income level may allow it to be done for free. Make sure that you start an on-line filing system from the proper web page that will determine if you qualify for free filing.
Make sure that if you are claimed as an dependant on your parent's return, that you select the proper status for yourself.

 

[archcommus]

Thanks for the advice.

Using the service on the main page at irs.gov, it seems I qualify for many of the free ones. The question is which one? They all offer free federal but can I get one that also offers free state or local?

One additional question. I've been told that all my taxes must be filed before I can begin filling out the FAFSA because it will ask questions that I do not know the answers to until after I file. Is this true? If so, what information besides my W2 do I need to make sure to keep handy to be able to fill out the FAFSA?

 

[EagleKeeper]

Originally posted by: archcommus87
Thanks for the advice.

Using the service on the main page at irs.gov it seems I qualify for many of the free ones. The question is which one? They all offer free federal but can I get one that also offers free local?

I was assuming I'd do this online when the time came. Everything else in my life is digitized and organized online, why wouldn't this be, as well?

Research the ones that offer free State also.

Let the community know what you find out as a favor to the rest.

 

[archcommus]

I'll see what I can dig up. Also:

Originally posted by: archcommus87

One additional question. I've been told that all my taxes must be filed before I can begin filling out the FAFSA because it will ask questions that I do not know the answers to until after I file. Is this true? If so, what information besides my W2 do I need to make sure to keep handy to be able to fill out the FAFSA?

 

[archcommus]

For anyone in PA who's interested: https://pa.direct.file.state.pa.us/authentication.asp