ATOT's Second Annual Tax Time Thread!

[EagleKeeper]

Originally posted by: thahenchman
Another question, I worked 8-5 from monday to friday for a year.

My wages, tips, other comp. is $29,637.67

My fed. income tax witheld is $3,419.37

My ss wages are $32,494.94

My ss tax withheld is $2,014.69.

My medicare wages and tips is $32,494.94

My medicare tax withheld is $471.18

In 12a, I have a D $2,857.27

And in 14, it says CASDI $386.93

My state income tax is $773.93

I don't have any other income, no purchases, stocks, or anything else. Does anyone have any idea how much my tax return should be? Right now it says I should get about $500 back but that seems kinda low to me.

Either trust your math skills and ability to read/follow instructions, get tax S/W to ensure that you do the math properly and follow the instructions or pay some $$ to play CYA.

Without knowing all the other situations regarding your 1040 line items, you are probably close to being accurate.


The intention of this thread is not to verify tax returns or do them.

We are just trying to provide advice/guidelines on tax questionis.

 

[thahenchman]

Okay, I estimated my deductions (state tax, etc.) but didn't save any receipts to back them up.

I also estimate my gambling losses (Vegas) to be about $2,000.

My estimated itemized deductions of $5,843 is greater than my standard deduction of $4,850. With my estimated itemized deductions, my tax return is about $700. With the "standard deduction" of $4,850, my tax return is $500. Should I just use standard deduction since I don't have any proof or receipts of any of my deductions, or is it okay for me to approximate?

Also, do computers I built for myself and others (total about $2,000) count as a "large ticket item" (including the monitor) or a "hobby expense" or neither?

One more thing: I donated about 10 bags of 1995-2004 clothes and toys to the Salvation Army. There were a lot of good clothes and toys, and I'd estimate even depreciated the value would be about $1500. Can I deduct that even though I didn't get a receipt? Should I go back and try to get one even though I donated all of that over 6 months ago?

 

[CPA]

Originally posted by: thahenchman
Okay, I estimated my deductions (state tax, etc.) but didn't save any receipts to back them up.

I also estimate my gambling losses (Vegas) to be about $2,000.

My estimated itemized deductions of $5,843 is greater than my standard deduction of $4,850. With my estimated itemized deductions, my tax return is about $700. With the "standard deduction" of $4,850, my tax return is $500. Should I just use standard deduction since I don't have any proof or receipts of any of my deductions, or is it okay for me to approximate?

Also, do computers I built for myself and others (total about $2,000) count as a "large ticket item" (including the monitor) or a "hobby expense" or neither?

One more thing: I donated about 10 bags of 1995-2004 clothes and toys to the Salvation Army. There were a lot of good clothes and toys, and I'd estimate even depreciated the value would be about $1500. Can I deduct that even though I didn't get a receipt? Should I go back and try to get one even though I donated all of that over 6 months ago?

1) You can only deduct gambling losses to the extent of winnings. So if you are deducting your gambling losses, make sure you are including and equal amount of gambling winnings on line 21.

2) Your computer building is a hobby expense. You can only deduct hobby expenses to the extent of hobby income. similar to gambling.

3) You can only include in the current year tax filing those donations you made during 2004. You will not technically need a receipt, unless the total is greater than $500, which yours is. But even with the reciept it is up to the donator to supply the value. The IRS is well aware of clothes donation estimates and the stance they take is that most people overestimate the value of clothes. It would have benefited you to take pictures or itemize your donations.

4) Since you did not save your sales receipts, you will need to use the IRS tables in Publication 600 to determine your allowed sales tax deduction. If you have state income tax, you will need to decide which to use. You can't use both.

 

[CPA]

Originally posted by: PaulNEPats
I had a question about entering Sales Tax paid for 2004. If I didn't keep all my receipts regarding Sales tax I purchased, but kept my receipt for a car purchase and the sales tax associated with the car, under total sales tax paid for 2004 can I just enter what I paid in sales tax for the car? Or do I really need a complete listing off all the sales tax I paid for the year?

As stated above, you need to use publication 600. But, in your case you will be able to add to that the tax paid on the car. Car, boat, home building purchases are the few items you can add on to the sales tax deduction. If you paid state income tax, you will need to decide which one you want to deduct. You can't do both.

 

[imported_Tomato]

I donated about 8 big trash bags of clothes to the Salvation Army, too. Most of the stuff was in excellent condition, and would easily have sold on eBay for at least $1,000 (bought over the years for retail price $5k+). If I put down a deduction of $1,000, what are the chances the IRS might ask for a receipt (I got one and entered the approx. estimated value myself)? I don't have any pictures or further proof, but I do have the receipt with my hand-written amount on it.

 

[EagleKeeper]

Originally posted by: Tomato
I donated about 8 big trash bags of clothes to the Salvation Army, too. Most of the stuff was in excellent condition, and would easily have sold on eBay for at least $1,000 (bought over the years for retail price $5k+). If I put down a deduction of $1,000, what are the chances the IRS might ask for a receipt (I got one and entered the approx. estimated value myself)? I don't have any pictures or further proof, but I do have the receipt with my hand-written amount on it.

If the deductions are inline with your income you are on the safer side.
Some tax S/W will provide you with statistics on where you stand in the norm.

If you get a courtesy audit and your are within the norm, you should be safe.
If you receive a I am screwed audit, then you may have to negotiate.

If your receipt says 8 large bags, then $125 value per bag would be reasonable and you should be free & clear.

 

[imported_Tomato]

Originally posted by: EagleKeeper

Originally posted by: Tomato
I donated about 8 big trash bags of clothes to the Salvation Army, too. Most of the stuff was in excellent condition, and would easily have sold on eBay for at least $1,000 (bought over the years for retail price $5k+). If I put down a deduction of $1,000, what are the chances the IRS might ask for a receipt (I got one and entered the approx. estimated value myself)? I don't have any pictures or further proof, but I do have the receipt with my hand-written amount on it.

If the deductions are inline with your income you are on the safer side.
Some tax S/W will provide you with statistics on where you stand in the norm.

If you get a courtesy audit and your are within the norm, you should be safe.
If you receive a I am screwed audit, then you may have to negotiate.

If your receipt says 8 large bags, then $125 value per bag would be reasonable and you should be free & clear.

My income is about $35k, do you think that would considered "in line" or would I be greeted with a nice fat "I am screwed" audit? Thanks Eagle!

 

[CPA]

Originally posted by: Tomato

Originally posted by: EagleKeeper

Originally posted by: Tomato
I donated about 8 big trash bags of clothes to the Salvation Army, too. Most of the stuff was in excellent condition, and would easily have sold on eBay for at least $1,000 (bought over the years for retail price $5k+). If I put down a deduction of $1,000, what are the chances the IRS might ask for a receipt (I got one and entered the approx. estimated value myself)? I don't have any pictures or further proof, but I do have the receipt with my hand-written amount on it.

If the deductions are inline with your income you are on the safer side.
Some tax S/W will provide you with statistics on where you stand in the norm.

If you get a courtesy audit and your are within the norm, you should be safe.
If you receive a I am screwed audit, then you may have to negotiate.

If your receipt says 8 large bags, then $125 value per bag would be reasonable and you should be free & clear.

My income is about $35k, do you think that would considered "in line" or would I be greeted with a nice fat "I am screwed" audit? Thanks Eagle!

I'm assuming you are itemizing (filing a schedule A)?

 

[EagleKeeper]

Originally posted by: Tomato

Originally posted by: EagleKeeper

Originally posted by: Tomato
I donated about 8 big trash bags of clothes to the Salvation Army, too. Most of the stuff was in excellent condition, and would easily have sold on eBay for at least $1,000 (bought over the years for retail price $5k+). If I put down a deduction of $1,000, what are the chances the IRS might ask for a receipt (I got one and entered the approx. estimated value myself)? I don't have any pictures or further proof, but I do have the receipt with my hand-written amount on it.

If the deductions are inline with your income you are on the safer side.
Some tax S/W will provide you with statistics on where you stand in the norm.

If you get a courtesy audit and your are within the norm, you should be safe.
If you receive a I am screwed audit, then you may have to negotiate.

If your receipt says 8 large bags, then $125 value per bag would be reasonable and you should be free & clear.

My income is about $35k, do you think that would considered "in line" or would I be greeted with a nice fat "I am screwed" audit? Thanks Eagle!

By itself, it should not trigger any type of audit. However, it could be the proverbial straw if the are other items that are considered outrageous.

However, as CPA stated, are you using a Schedule A? If not the whole charity thing will only reward you with a warm fuzzy

 

[Epoman]

Hi, Guys I have a question from my brother.

He had 4 jobs last year, and got 3 of his w-2's from his previous jobs but he still needs 1 more from a arcade he worked at, he made about $2,000 at that job. But the arcade went out of business and he has no idea where the owner of the business is? What are his options?

Thanks guys in advance.

 

[EagleKeeper]

Originally posted by: Epoman
Hi, Guys I have a question from my brother.

He had 4 jobs last year, and got 3 of his w-2's from his previous jobs but he still needs 1 more from a arcade he worked at, he made about $2,000 at that job. But the arcade went out of business and he has no idea where the owner of the business is? What are his options?

Thanks guys in advance.

If your brother has the last paystub available, that will show all the numbers for 2004.

It may also, show the payroll company (if one used). The payroll company should be able to provide a W2 for him.

Without the numbers from a paystub, he will have problems trying to even estimate his taxes.

The employer is still obligated to follow certain procedures

IRS - FAQ - Closing a Business

<a target=_blank class=ftalternatingbarlinklarge href="http://www.irs.gov/taxtopics/tc154.html">W-2 and Form 1099?R (What to Do if Not Received)
</a>

After February 14, 2005, the IRS will help you obtain the missing forms. Call 1?800?829?1040. Be prepared to provide your name, address (including zip code), phone number, Social Security Number, and dates of employment and the name, address (including zip code), and phone number of the employer/payer.

The IRS will send the employer/payer a Form 4598, Form W-2 (PDF), Form 1098 (PDF) or Form 1099, Not Received, Incorrect, or Lost. You will receive a copy, along with Form 4852 (PDF), Substitute for Form W?2 or Form 1099?R, and a Form 1040X (PDF), Amended U.S. Individual Income Tax Return. If you do not receive the Form W-2 or Form 1099?R in sufficient time to file timely, you may file using Form 4852.

 

[RgrPark]

Ok guys, I need some answers....

I was in the military for the past 7 years. When i signed up for the military I was living in NY, so the govt considers me a Ny resident. Accordingly, I have been paying Ny state tax regardless of my location; but I was getting most of the tax back since i was a non-resident. All of 2004, I lived in Md and I got out of the military in August, 2004. Since then, I have been a MD state resident and getting paid in Md.

So my question is, do I have to file both NY and MD state tax forms?

Is it difficult to file as both NY non-resident AND part-time residence? I was always just a non-resident and I am thinking that by being both, it's not gonna make filing any simpler.

I think Md state form should be pretty stragihtforward as a part time residence.

Thanx

 

[EagleKeeper]

Originally posted by: RgrPark
Ok guys, I need some answers....

I was in the military for the past 7 years. When i signed up for the military I was living in NY, so the govt considers me a Ny resident. Accordingly, I have been paying Ny state tax regardless of my location; but I was getting most of the tax back since i was a non-resident. All of 2004, I lived in Md and I got out of the military in August, 2004. Since then, I have been a MD state resident and getting paid in Md.

So my question is, do I have to file both NY and MD state tax forms?

Is it difficult to file as both NY non-resident AND part-time residence? I was always just a non-resident and I am thinking that by being both, it's not gonna make filing any simpler.

I think Md state form should be pretty stragihtforward as a part time residence.

Thanx

Advice on state taxes is difficult. CPA both are from non-tx states to boot.

Having lived in MD, I can state that you are correct. File for part-time resident, using your non-service income.

File NY as you have been, as a non-resident. If NY allows you to alter the declred income by state, I would then decleare the MD income as out-of-state.

When I originally moved to MD from Taxachusetts, I found it easier to just tell MA about the Mass income.
Cross state income filing is a pain anyhow, then when moving between staes , it can become a nightmare.

Now you also understand why many military people change state of residence to a non-tax state if possible. Easier to handle paperwork while in service and when seperating from the service.

Also, even though the residence state may send a "we still love you" letter, they can not do anything else.

 

[KK]

Here's my question. My wife has recieved a 1098-T? Is this somehow deductible. She only has an amount in the 2 block which is "Amounts billed for qualified tuition and related expenses". Nothing in block one, "Payments received for qualified tuition and related expenses", or block three, "Adjustments made for a prior year", or block four, "Scholarships or grants", or block five, "Adjustments to scholarships or grants for a prior year". Block six is check, that block says "The amount in box 1 or 2 includes amounts for an academic period beginning January-March 2005(if checked). Block 7 is blank, "Reimbursements or refunds of qualified tuition and related expenses from an insurance contract". Block eight is not checked which is "At least half-time student (if checked)". Block nine is checked which is "Graduate student(if checked)."

I tried looking in taxcut, and it makes no mention of such a form.

 

[EagleKeeper]

That information would fall in line with the Lifetime Learning Credit.

If the tutition was paid for 2004 classes, it will be asked for by TaxCut when determining adjustments to income.

You will be asked if anyone when to school.

 

[KK]

Originally posted by: EagleKeeper
That information would fall in line with the Lifetime Learning Credit.

If the tutition was paid for 2004 classes, it will be asked for by TaxCut when determining adjustments to income.

You will be asked if anyone when to school.

I went thru the taxcut adjustment process, I didn't get asked about it. Only something about education dealing with student loans. I searched for Form 8863 and it pulled up an Education Credits(Hope and Lifetime Learning Credits) Can you fill me in what this Lifetime Learning credit is all about.

Here's the situation surronded why we received this form. My wife(a teacher) took some classes to pick up an advanced degree. We paid for the class out of pocket.

Thanks

 

[EagleKeeper]

Originally posted by: KK

Originally posted by: EagleKeeper
That information would fall in line with the Lifetime Learning Credit.

If the tutition was paid for 2004 classes, it will be asked for by TaxCut when determining adjustments to income.

You will be asked if anyone when to school.

I went thru the taxcut adjustment process, I didn't get asked about it. Only something about education dealing with student loans. I searched for Form 8863 and it pulled up an Education Credits(Hope and Lifetime Learning Credits) Can you fill me in what this Lifetime Learning credit is all about.

Here's the situation surronded why we received this form. My wife(a teacher) took some classes to pick up an advanced degree. We paid for the class out of pocket.

Thanks

Lifetime Learning Credit is used to compensate for out of the pocket expenses for education after the first two years of college or continuing educations.

You are able to receive a credit against taxes owed of 20% of what was paid. There is a limit on how much can be claimed each year and there is also an upper income limit. One can not file your return as married-seperately.


IRS- FAQ - Lifetime Learning Credit

The Lifetime Learning Credit is not based on the student's workload. It is allowed for one or more courses that the student takes at an eligible educational institution. The credit is not limited to students in the first two years of post?secondary education. Expenses for graduate?level degree work are eligible. However, to be eligible for the credit, the student must be taking course work in order to acquire or improve job skills. There is no limit on the number of tax years for which the Lifetime Learning credit can be claimed for each student. The amount you can claim as a credit does not vary (i.e., increase) based on the number of students for whom you pay qualified expenses. However, that amount may be reduced based on your modified AGI. The credit is gradually reduced if your modified AGI is between $42,000 and $52,000 ($85,000 and $105,000 in the case of a joint return). You cannot claim the credit if you are married filing a separate return.

 

[imported_Tomato]

Originally posted by: EagleKeeper

Originally posted by: Tomato

Originally posted by: EagleKeeper

Originally posted by: Tomato
I donated about 8 big trash bags of clothes to the Salvation Army, too. Most of the stuff was in excellent condition, and would easily have sold on eBay for at least $1,000 (bought over the years for retail price $5k+). If I put down a deduction of $1,000, what are the chances the IRS might ask for a receipt (I got one and entered the approx. estimated value myself)? I don't have any pictures or further proof, but I do have the receipt with my hand-written amount on it.

If the deductions are inline with your income you are on the safer side.
Some tax S/W will provide you with statistics on where you stand in the norm.

If you get a courtesy audit and your are within the norm, you should be safe.
If you receive a I am screwed audit, then you may have to negotiate.

If your receipt says 8 large bags, then $125 value per bag would be reasonable and you should be free & clear.

My income is about $35k, do you think that would considered "in line" or would I be greeted with a nice fat "I am screwed" audit? Thanks Eagle!

By itself, it should not trigger any type of audit. However, it could be the proverbial straw if the are other items that are considered outrageous.

However, as CPA stated, are you using a Schedule A? If not the whole charity thing will only reward you with a warm fuzzy

To answer yours and CPA's question, I am filing through H&R Block and am assuming they are going to use a Schedule A. I didn't itemize each item of clothing, but I wrote in "8 Large Bags of Clothing" and then $1500 as its estimated value. Nothing else comes across as strange or sketchy on my return, so hopefully I'll be okay?

 

[CPA]

Originally posted by: Tomato

Originally posted by: EagleKeeper

Originally posted by: Tomato

Originally posted by: EagleKeeper

Originally posted by: Tomato
I donated about 8 big trash bags of clothes to the Salvation Army, too. Most of the stuff was in excellent condition, and would easily have sold on eBay for at least $1,000 (bought over the years for retail price $5k+). If I put down a deduction of $1,000, what are the chances the IRS might ask for a receipt (I got one and entered the approx. estimated value myself)? I don't have any pictures or further proof, but I do have the receipt with my hand-written amount on it.

If the deductions are inline with your income you are on the safer side.
Some tax S/W will provide you with statistics on where you stand in the norm.

If you get a courtesy audit and your are within the norm, you should be safe.
If you receive a I am screwed audit, then you may have to negotiate.

If your receipt says 8 large bags, then $125 value per bag would be reasonable and you should be free & clear.

My income is about $35k, do you think that would considered "in line" or would I be greeted with a nice fat "I am screwed" audit? Thanks Eagle!

By itself, it should not trigger any type of audit. However, it could be the proverbial straw if the are other items that are considered outrageous.

However, as CPA stated, are you using a Schedule A? If not the whole charity thing will only reward you with a warm fuzzy

To answer yours and CPA's question, I am filing through H&R Block and am assuming they are going to use a Schedule A. I didn't itemize each item of clothing, but I wrote in "8 Large Bags of Clothing" and then $1500 as its estimated value. Nothing else comes across as strange or sketchy on my return, so hopefully I'll be okay?

Do you own a house?

 

[imported_Tomato]

Originally posted by: CPA

Originally posted by: Tomato

Originally posted by: EagleKeeper

Originally posted by: Tomato

Originally posted by: EagleKeeper

Originally posted by: Tomato
I donated about 8 big trash bags of clothes to the Salvation Army, too. Most of the stuff was in excellent condition, and would easily have sold on eBay for at least $1,000 (bought over the years for retail price $5k+). If I put down a deduction of $1,000, what are the chances the IRS might ask for a receipt (I got one and entered the approx. estimated value myself)? I don't have any pictures or further proof, but I do have the receipt with my hand-written amount on it.

If the deductions are inline with your income you are on the safer side.
Some tax S/W will provide you with statistics on where you stand in the norm.

If you get a courtesy audit and your are within the norm, you should be safe.
If you receive a I am screwed audit, then you may have to negotiate.

If your receipt says 8 large bags, then $125 value per bag would be reasonable and you should be free & clear.

My income is about $35k, do you think that would considered "in line" or would I be greeted with a nice fat "I am screwed" audit? Thanks Eagle!

By itself, it should not trigger any type of audit. However, it could be the proverbial straw if the are other items that are considered outrageous.

However, as CPA stated, are you using a Schedule A? If not the whole charity thing will only reward you with a warm fuzzy

To answer yours and CPA's question, I am filing through H&R Block and am assuming they are going to use a Schedule A. I didn't itemize each item of clothing, but I wrote in "8 Large Bags of Clothing" and then $1500 as its estimated value. Nothing else comes across as strange or sketchy on my return, so hopefully I'll be okay?

Do you own a house?

I wish, sigh... no I don't, I've been renting an apartment for the 3 years I've been in Los Angeles.

 

[EagleKeeper]

Unless your itemized deductions exceed your standard deductions, the charity will only give you the warm fuzzy as explained earlier.

Have you totaled out your state income tax paid and added that total to the charitable contribution.

Single/Married?

From what information has been provided, you may not have the need to itemize.

 

[imported_Tomato]

Originally posted by: EagleKeeper
Unless your itemized deductions exceed your standard deductions, the charity will only give you the warm fuzzy as explained earlier.

Have you totaled out your state income tax paid and added that total to the charitable contribution.

Single/Married?

From what information has been provided, you may not have the need to itemize.

:thumbsup: for warm fuzzies, :thumbsup::beer: if I can get more taxes back.

I haven't added my state income tax paid to the charitable contribution... sorry to sound like a complete tax n00b, but how would I do that?

Single (engaged) at the moment, hopefully married in December.

 

[KK]

Originally posted by: EagleKeeper

Originally posted by: KK

Originally posted by: EagleKeeper
That information would fall in line with the Lifetime Learning Credit.

If the tutition was paid for 2004 classes, it will be asked for by TaxCut when determining adjustments to income.

You will be asked if anyone when to school.

I went thru the taxcut adjustment process, I didn't get asked about it. Only something about education dealing with student loans. I searched for Form 8863 and it pulled up an Education Credits(Hope and Lifetime Learning Credits) Can you fill me in what this Lifetime Learning credit is all about.

Here's the situation surronded why we received this form. My wife(a teacher) took some classes to pick up an advanced degree. We paid for the class out of pocket.

Thanks

Lifetime Learning Credit is used to compensate for out of the pocket expenses for education after the first two years of college or continuing educations.

You are able to receive a credit against taxes owed of 20% of what was paid. There is a limit on how much can be claimed each year and there is also an upper income limit. One can not file your return as married-seperately.


IRS- FAQ - Lifetime Learning Credit

The Lifetime Learning Credit is not based on the student's workload. It is allowed for one or more courses that the student takes at an eligible educational institution. The credit is not limited to students in the first two years of post?secondary education. Expenses for graduate?level degree work are eligible. However, to be eligible for the credit, the student must be taking course work in order to acquire or improve job skills. There is no limit on the number of tax years for which the Lifetime Learning credit can be claimed for each student. The amount you can claim as a credit does not vary (i.e., increase) based on the number of students for whom you pay qualified expenses. However, that amount may be reduced based on your modified AGI. The credit is gradually reduced if your modified AGI is between $42,000 and $52,000 ($85,000 and $105,000 in the case of a joint return). You cannot claim the credit if you are married filing a separate return.

Here's how I interpreted the IRS FAQs. Let me know how far I am from reality.
If we paid 1000 we would get a 200 credit?

Thanks

Edit, went under the credits section and it mentioned the 1098-T, put in the figure and it put it under tuition credit. The lifetime learning credit was about 1/5 of what the tuition credit was.

 

[upsciLLion]

Nnnnnnnnnnnnnnevermind.

 

[Rage187]

Figured I'd ask this here.


I live in NV and my wife lives in SC, how do we file?