ATOT's Second Annual Tax Time Thread!

[EagleKeeper]

Originally posted by: dakata24
do you know how quickly they deposit checks for payment?

Within 1 day after paperwork is opened.

Return is opened, amount due is checked against payment type and check is put into the deposit file. The checks will then be processed by the payment center during the day or the next day, depending on when the return is opened.

As to how long it will take them to open the return after it arrives, is anybodies guess.
Some-one would have to look at the check endorsements from last year to determine roughly what the float time is.

 

[jagec]

edit: I found it on the IRS website

 

[Fingolfin269]

Quick question here. I'm trying to maximize my take home pay and really would rather approach $0 when it comes to tax refund/tax owed. What is the easiest way to determine how many exemptions to claim on a W4? Is there a general cut-off level for a single person with no dependents?

For instance, if I, a single person with no dependents, make under $X/year is there an optimal exemption number that will get me as close to $0 as possible? I am currently using '1' but am fairly certain that I will still get a bit more back. If one of you CPA feels you could help me determine this with a bit more specific information about my earning please feel free to toss me a PM.

Oh, and I live in Tennessee and therefore have no state income tax (if that even matters).

Thanks,
LC

*EDIT* I guess I could just ask... what are the chances of me actually paying tax at the end of the year if I mark 2 on my W4?

 

[Zombie]

If I didn't have 401k plan for first half of 2004 with 1 company but had a 401k with another company(were bought out) for 2nd half of the company can I still put money in tax deductable IRA for 2004?

 

[PoopyPants]

working for 2nd Story Software, the creaters of TaxAct i tip my hat to you ladies and gentlemen who are helping people out with tax questions.

Bravo, and Thank You for making my job just a little easier

 

[Wduaqnug]

Anyone know steps to do car donation deduction in Taxact

 

[Nocturnal]

If I worked two jobs last year and made less than $5k at both jobs, do I have to file?

 

[EagleKeeper]

Originally posted by: Fingolfin269
Quick question here. I'm trying to maximize my take home pay and really would rather approach $0 when it comes to tax refund/tax owed. What is the easiest way to determine how many exemptions to claim on a W4? Is there a general cut-off level for a single person with no dependents?

For instance, if I, a single person with no dependents, make under $X/year is there an optimal exemption number that will get me as close to $0 as possible? I am currently using '1' but am fairly certain that I will still get a bit more back. If one of you CPA feels you could help me determine this with a bit more specific information about my earning please feel free to toss me a PM.

Oh, and I live in Tennessee and therefore have no state income tax (if that even matters).

Thanks,
LC

*EDIT* I guess I could just ask... what are the chances of me actually paying tax at the end of the year if I mark 2 on my W4?

First off, I refuse to even be considered to be a paperpusher. I actually work for a living using my noggin. Unlike some others who have a handle of 3 characters.

The IRS attempts to setup the withholding tables based on the number of exemptions that you claim. Circumstances can dictate that the tables are not always accurate but the come very close. When the tax laws get changed and/or your income level fluctuates, pick up a couple of exemptions or educationsl status, etc; anything can change.

If you have the disipline, increase your W4 exemptions to a higher number and put the difference of income each paycheck in a do-not-touch area for the beginning of next year.

You may have to pay, however, you will have the funds already put aside.
If you will still get a refund, then you have part of the refund already to spend/waste/save.

Then if possible, take those extra funds and put them into an IRA for the previous year BEFORE you file the taxes. The IRA itself will generate you some tax credit.
You may have to pay something in, but you have already paid yourself first with the IRA funds and also the fact that you put the $$ aside during the year. You may not have accumulated interest on it, however, you did win at the game that year.

 

[EagleKeeper]

Originally posted by: Zombie
If I didn't have 401k plan for first half of 2004 with 1 company but had a 401k with another company(were bought out) for 2nd half of the company can I still put money in tax deductable IRA for 2004?

Look at the check boxes for pension/retirement indicators on your W2.
That is the controlling factor. Regretfully the IRS does not allow you the luxury of contributing to an IRA if even one W2 for one days work covered you for retirement.

I am unsure if one can put money in 401K and an deductible IRA during the same year.

 

[EagleKeeper]

Originally posted by: Wduaqnug
Anyone know steps to do car donation deduction in Taxact

Falls under charitable deduction. One has to itemize using the Schedule A.

 

[EagleKeeper]

Originally posted by: Nocturnal
If I worked two jobs last year and made less than $5k at both jobs, do I have to file?

It is always best to file. This way, Uncle does not get suspicious when others state that they paid you $$ and you do not acknowledge it.

With that income level, it should take you 10-15 minutes to E-File.
You may be elgible for money back even if no taxes were withheld.
You can choose not to file and let Uncle keep any refunds that you may get.

Your choice.

 

[Banana]

<-----DUMB!

I mailed a $1500 check to the IRS last year for a pre-payment, but I forgot to include a 1040ES!

Question - The check was cashed by the IRS, but how do I verify that the IRS credited the payment to me? I wrote my SS# and the words "Tax Pre-Payment" on the check memo line, but not "2004 Form 1040-ES"

 

[EagleKeeper]

Originally posted by: Banana

<-----DUMB!

I mailed a $1500 check to the IRS last year for a pre-payment, but I forgot to include a 1040ES!

Question - The check was cashed by the IRS, but how do I verify that the IRS credited the payment to me? I wrote my SS# and the words "Tax Pre-Payment" on the check memo line, but not "2004 Form 1040-ES"

Call them.

Have the check information available, so you can provide any information that they require. Usually that will be the endorsement timestamp on the back.

If they do not have the record, then make a new 1040ES, attached a copy (front & back )of the check and send it it to them.

 

[Banana]

Originally posted by: EagleKeeper

Originally posted by: Banana

<-----DUMB!

I mailed a $1500 check to the IRS last year for a pre-payment, but I forgot to include a 1040ES!

Question - The check was cashed by the IRS, but how do I verify that the IRS credited the payment to me? I wrote my SS# and the words "Tax Pre-Payment" on the check memo line, but not "2004 Form 1040-ES"

Call them.

Have the check information available, so you can provide any information that they require. Usually that will be the endorsement timestamp on the back.

If they do not have the record, then make a new 1040ES, attached a copy (front & back )of the check and send it it to them.

Thanks for your fast response! As you suggested, I took a look at the cancelled check online and saw that someone else had written "1040-ES" on it. Also, the endorsement on the back includes a machine-printed line containing my SS# and last name.

Is the IRS great or what?! :thumbsup:

 

[Maximus96]

this year i got married in october, and in our taxes we owe $3500 for fed and ~$500 for state. my friend that prepared the forms think i should pay it all at once. my mom think i should do installments. can somebody tell me what is needed to do installments and how much interest is charged? thanks

 

[Banana]

Originally posted by: zaku
this year i got married in october, and in our taxes we owe $3500 for fed and ~$500 for state. my friend that prepared the forms think i should pay it all at once. my mom think i should do installments. can somebody tell me what is needed to do installments and how much interest is charged? thanks

I'm not sure if this would apply to you, but according to IRS.gov,

"Yes. If you cannot pay the full amount due as shown on your return, you can ask to make monthly installment payments. However, you will be charged a one time user fee of $43.00, as well as interest on any tax not paid by its due date, and you can be charged a late payment penalty unless you can show reasonable cause for not paying the tax by April 15, even if your request to pay in installments is granted. Before requesting an installment agreement, you should consider less costly alternatives such as a bank loan.

To request an installment agreement, send Form 9465 (PDF), Installment Agreement Request, with your return or call (800) 829-1040. You should receive a response within 30 days. For more details on installment payments, refer to Tax Topic 202, What to do if You Can't Pay Your Tax, or Publication 594 (PDF), Understanding the Collection Process."

You might want to wait for EagleKeeper or Elite CPA to respond

 

[bondboy]

I underpaid this year and owe both federal and state taxes.

I also plan to itemize in my federal return. Can I use deduct the state taxes withheld on W2 + the state taxes that I owe (which I will be paying)?
Or am I only allowed to deduct the state tax that's on the W2?

 

[EagleKeeper]

Originally posted by: zaku
this year i got married in october, and in our taxes we owe $3500 for fed and ~$500 for state. my friend that prepared the forms think i should pay it all at once. my mom think i should do installments. can somebody tell me what is needed to do installments and how much interest is charged? thanks

Feds operate somewhere between a loan shark and a bank in terms of payments & fees.

It is best to get a bank loan if possible.

Also, take a very close look at your taxes and withholding status. If you owe that much after getting married, then you (both) completely miscalculated during the year and/or may not be filling out the proper forms correctly.

Look at different filing options such a married filing seperately (equivalent to each being single). If you itemize, check out each item a s3econd or third time. Something does not pass the skunk test if you were withholding properly during the year.

 

[EagleKeeper]

Originally posted by: bondboy
I underpaid this year and owe both federal and state taxes.

I also plan to itemize in my federal return. Can I use deduct the state taxes withheld on W2 + the state taxes that I owe (which I will be paying)?
Or am I only allowed to deduct the state tax that's on the W2?

You can only deduct those taxes that were paid in 2004.

Anything that you pay in 2005 will be deductible on the 2005 return.

 

[Maximus96]

Originally posted by: EagleKeeper

Originally posted by: zaku
this year i got married in october, and in our taxes we owe $3500 for fed and ~$500 for state. my friend that prepared the forms think i should pay it all at once. my mom think i should do installments. can somebody tell me what is needed to do installments and how much interest is charged? thanks

Feds operate somewhere between a loan shark and a bank in terms of payments & fees.

It is best to get a bank loan if possible.

Also, take a very close look at your taxes and withholding status. If you owe that much after getting married, then you (both) completely miscalculated during the year and/or may not be filling out the proper forms correctly.

Look at different filing options such a married filing seperately (equivalent to each being single). If you itemize, check out each item a s3econd or third time. Something does not pass the skunk test if you were withholding properly during the year.

after deducting everything, our gross adjusted is 72,7xxx and the tax table shows our tax to be 13,xxx. through the year we only paid 9xxx in taxes because i claimed 5 and she claimed 4 as we both filed as head of household the year before. she's adjusted her w-4 to claim 1 while i leave my at 5.

 

[EagleKeeper]

Originally posted by: zaku

Originally posted by: EagleKeeper

Originally posted by: zaku
this year i got married in october, and in our taxes we owe $3500 for fed and ~$500 for state. my friend that prepared the forms think i should pay it all at once. my mom think i should do installments. can somebody tell me what is needed to do installments and how much interest is charged? thanks

Feds operate somewhere between a loan shark and a bank in terms of payments & fees.

It is best to get a bank loan if possible.

Also, take a very close look at your taxes and withholding status. If you owe that much after getting married, then you (both) completely miscalculated during the year and/or may not be filling out the proper forms correctly.

Look at different filing options such a married filing seperately (equivalent to each being single). If you itemize, check out each item a s3econd or third time. Something does not pass the skunk test if you were withholding properly during the year.

after deducting everything, our gross adjusted is 72,7xxx and the tax table shows our tax to be 13,xxx. through the year we only paid 9xxx in taxes because i claimed 5 and she claimed 4 as we both filed as head of household the year before. she's adjusted her w-4 to claim 1 while i leave my at 5.

Looks like you were playing games in the previous years/months and it caught up to you.

You have few options, best is to dig for all the deductions that you can.
Charitable, educational, child care credit, business expenses, etc

 

[skywhr]

when are virginia state taxes due?

 

[EagleKeeper]

Originally posted by: skywhr
when are virginia state taxes due?

Link

 

[MustISO]

On my schedule K-1's I have "Ordinary Dividends" and "Qualified Dividends". Do I put both of these on my federal return or just "Ordinary"?

Thanks!

 

[SuperTool]

I got a 1098-T statement from my grad school, where they say amount billed is 10000, and Scholarship and grants is 5000.
Does it mean I can deduct 5000?
Also, my company paid the remaining 5000 in january 2005, so it is not shown in the statement. Do I go ahead and deduct 5000 this year, and then pay tax on it next year?
Just to make it clear, I didn't pay anything out of pocket. The university bills me, but the company pays for me.

Here is what I found In IRS form 970:

When Must the Deduction Be Repaid (Recaptured)

If, after you file your 2004 tax return, you or someone else receives tax-free educational assistance for, or a refund of, an expense you used to figure a tuition and fees deduction on that return, you may have to repay all or part of the deduction. This applies to assistance and refunds received by the individual claiming the deduction, and, in the case of a student who claims the deduction, refunds received by anyone else who paid such expenses for the student.

You must include the assistance or refund in income in the year received up to the amount by which the deduction of the refunded amount reduced your tax in 2004. Refigure the deduction for 2004 as if you received the assistance or refund in 2004. Then refigure your 2004 tax liability. Subtract the refigured tax from your original (or previously adjusted) 2004 tax. The result is the amount you must repay. Add the repayment to income for the year you receive the assistance or refund (see the instructions for your tax return for that year). Your 2004 tax return does not change.