CPA's Annual Tax Time Help - Filing Day is over. This thread can be unstickied.

[alkemyst]

Originally posted by: max105
TurboTax Web does have free state filing too but only for states that are participating in the free filing program. Unfortunately, California doesn't participate in it .

alkemyst: I searched through the California taxes site. I'm able to find globs of information about eFiling my state taxes but nothing about whether or not i have to file it with my federal tax together or not.

I looked on the page and under the netfile requirements it doesn't state you must file with your federal, as a matter of fact it has outside links to the federal e-filing methods.

I would say it's probably guaranteed CA is not a state that requires state/fed concurrently filed if going electronically.

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[TubStain]

I already filed my federal tax forms, but just realized a mistake... I didnt include my retirement savings in my 403b as a deduction...quite a big mistake. I paid $700 in federal tax already, what do I have to do to correct that mistake and get part of the money direct deposited back to me?

Thanks!

 

[alkemyst]

Originally posted by: TubStain
I already filed my federal tax forms, but just realized a mistake... I didnt include my retirement savings in my 403b as a deduction...quite a big mistake. I paid $700 in federal tax already, what do I have to do to correct that mistake and get part of the money direct deposited back to me?

Thanks!

An amendment 1040X.

Keep in mind amendments can raise your chance of an audit especially if you are taking back a large chunk from Uncle Sam.

You can also adjust it next year I believe.

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[max105]

When I went back to file my federal return on TurboTax Web, I found an answer to my question:

Can I electronically file my federal return now and my state return later?

Maybe. If you file a state return for California, Illinois, Maine, Massachusetts, Minnesota, or New York, you can electronically file your state and federal returns at different times.

If you electronically file a return for any other state, you must electronically file your federal and state tax returns at the same time. If you electronically file only your federal return, you'll have to print your state return and file it by mail.

 

[max105]

Since I was a student and didn't file taxes for 2002, am I still eligible to submit an electronic signature? According to TurboTax, I need to enter my AGI from 2002 in order to submit an electronic signature. Do I enter '0' or do I have to sign by paper?

 

[max105]

Since I was a student and didn't file taxes for 2002, am I still eligible to submit an electronic signature? According to TurboTax, I need to enter my AGI from 2002 in order to submit an electronic signature. Do I enter '0' or do I have to sign by paper?

 

[CPA]

Originally posted by: max105
Since I was a student and didn't file taxes for 2002, am I still eligible to submit an electronic signature? According to TurboTax, I need to enter my AGI from 2002 in order to submit an electronic signature. Do I enter '0' or do I have to sign by paper?

You should be able to put in 0 and get it to work. The only reason they ask this is to confirm you are who you say. The 2002 amount will be used by the IRS as a reference to determine whether you are legitimate or not. Besides, you should get an answer within 2 days and if it gets kicked back you can always submit a paper filing.

 

[EagleKeeper]

Originally posted by: max105
Since I was a student and didn't file taxes for 2002, am I still eligible to submit an electronic signature? According to TurboTax, I need to enter my AGI from 2002 in order to submit an electronic signature. Do I enter '0' or do I have to sign by paper?

If it gets kicked back due to unmatched 2002 information, you will be asked to submit an paper copy of your signature.
You can still file electronically anyhow. You will just have to print out the form that is required (the Tax S/w will tell you it), sign it and mail it in.

 

[Mermaidman]

QUESTION:

I received a 1099 directly from the IRS: See this image. Do I report it as interest income? I honestly don't remember how the IRS paid me for this amount (e.g. a check?), but don't really care. My question is that in the TaxCut program, 1099 forms are supposed to have a Box 1, Box 2, etc, but this 1099 from the IRS doesn't have any numbered boxes . . .

TIA

BTW, the text on the bottom of the form reads:
This information is being furnished to the appropriate department of Internal Revenue Service. The amount of interest paid or credited to you in the calendar year shown is on an overpayment of federal tax. This amount may represent interest on an overpayment for more than one year, or more than one kind of tax. It may have been paid with your tax refund or by separate check; or part or all may have been applied against other taxes you owed. If you are required to file a tax return, report this interest as income on your return.

 

[EagleKeeper]

Originally posted by: Mermaidman
QUESTION:

I received a 1099 directly from the IRS: See this image. Do I report it as interest income? I honestly don't remember how the IRS paid me for this amount (e.g. a check?), but don't really care. My question is that in the TaxCut program, 1099 forms are supposed to have a Box 1, Box 2, etc, but this 1099 from the IRS doesn't have any numbered boxes . . .

TIA

BTW, the text on the bottom of the form reads:
This information is being furnished to the appropriate department of Internal Revenue Service. The amount of interest paid or credited to you in the calendar year shown is on an overpayment of federal tax. This amount may represent interest on an overpayment for more than one year, or more than one kind of tax. It may have been paid with your tax refund or by separate check; or part or all may have been applied against other taxes you owed. If you are required to file a tax return, report this interest as income on your return.

Based on the image, this is an interest payment statement from the IRS. YOu probably had a refund coming to you that was late in arriving.

This should be treated as interest income, just as if it was from a bank.

 

[max105]

I just got rejected by the IRS from my e-file. Apparently my birthdate did not match up to the records with the Social Security office. I called Social Security and they had the incorrect birthdate on file. The day and year are correct, but they have the month January on their computer instead of October. Seems like someone might have made a typo entering my information into their computer and probably dropped the '0' or something. Anyways, they said I need to submit a new application for my social security but it'll take several weeks for it to process. Since the tax due date is about a week away, I won't have time to fix it before I e-file. So it seems like my choices are to file a return by mail, or file for an extension and wait for Social Security to update my birthdate on their computers and try to e-file again.

What would be the best choice for me? Would filing by paper with the incorrect birthdate on my social security records affect my tax return? Thanks for all the help guys... it's my first time filing taxes and I'm doing them myself so I've got lots of questionos.

 

[CPA]

Originally posted by: max105
I just got rejected by the IRS from my e-file. Apparently my birthdate did not match up to the records with the Social Security office. I called Social Security and they had the incorrect birthdate on file. The day and year are correct, but they have the month January on their computer instead of October. Seems like someone might have made a typo entering my information into their computer and probably dropped the '0' or something. Anyways, they said I need to submit a new application for my social security but it'll take several weeks for it to process. Since the tax due date is about a week away, I won't have time to fix it before I e-file. So it seems like my choices are to file a return by mail, or file for an extension and wait for Social Security to update my birthdate on their computers and try to e-file again.

What would be the best choice for me? Would filing by paper with the incorrect birthdate on my social security records affect my tax return? Thanks for all the help guys... it's my first time filing taxes and I'm doing them myself so I've got lots of questionos.

Refile the e-file using the wrong date. That's what I've done with our joint return for the past two years. The SS Administration has my wife's birth year incorrect. Again, this is only a procedure they use to verify you are who you say you are without you providing a signature. After that's done then put in the proper paperwork to have it changed. If you're uncomfortable doing this, then just paper file.

 

[EagleKeeper]

Originally posted by: CPA

Originally posted by: max105
I just got rejected by the IRS from my e-file. Apparently my birthdate did not match up to the records with the Social Security office. I called Social Security and they had the incorrect birthdate on file. The day and year are correct, but they have the month January on their computer instead of October. Seems like someone might have made a typo entering my information into their computer and probably dropped the '0' or something. Anyways, they said I need to submit a new application for my social security but it'll take several weeks for it to process. Since the tax due date is about a week away, I won't have time to fix it before I e-file. So it seems like my choices are to file a return by mail, or file for an extension and wait for Social Security to update my birthdate on their computers and try to e-file again.

What would be the best choice for me? Would filing by paper with the incorrect birthdate on my social security records affect my tax return? Thanks for all the help guys... it's my first time filing taxes and I'm doing them myself so I've got lots of questionos.

Refile the e-file using the wrong date. That's what I've done with our joint return for the past two years. The SS Administration has my wife's birth year incorrect. Again, this is only a procedure they use to verify you are who you say you are without you providing a signature. After that's done then put in the proper paperwork to have it changed. If you're uncomfortable doing this, then just paper file.

Same advice and results.

My oldest boy was classified as one year older by the SS.
We found out when he tried to e-file.
Changed the date and everything worked.
Eventually the SS corrected the error and then he changed his e-file birthdate to be correct.

It may take a LONG while for the SS to correct the error. Expect to possibly file the incorrect data for 2004 taxes also.

However, change your date and re e-file. Refund will be direct deposit in 2-3 weeks.

 

[max105]

Well, I just got back from the social security office. When I called in this morning, they said an copy of the birth certificate would be fine since I (neither do my parents) have my original birth certificate. However when I got to the Social Security office, they wanted the originals. Now I have to send a request to the Department of Vital Records to send me an official copy of my birth certificate.

When I called the IRS this morning, they told me the best thing to do to avoid complications is to file a paper return and get my birthdate corrected right away with Social Security. I would still like to e-file so I can import my data for next year's return. Would I run into any more problems if I e-filed now with the incorrect birthdate? Would the IRS complain again next year about my birthdate not matching with the birthdate on a previous return? Once I get the Social Security office to correct my birthdate, do I have to file for an amendment or anything on this year's return to correct my birthdate on there too?

 

[EagleKeeper]

As stated previously; re e-file with the birthdate that the SS has on record. This is what the IRS checks. the do not track birthdates year to year. Only against what the SS has for you

There is no need to file an ammeded 1040X when/if the SS fixes the problem.

When the SS has confirmed that the birthdate has been corrected, the next year is when you can e-file with the correct birth date.

 

[GeneValgene]

I was hoping someone could help me out.

My sister received a 1099-MISC form for $2500 under box 7 (Nonemployee compensation) for work that she performed at a counseling clinic (she is not considered an employee).

When she adds this to Turbo Tax, its says that this income is not reported on another form or schedule, and that she needs to tell Turbo Tax the source of the compensation.

However, the only options it gives her as a source are 1) a business you own (sole proprietor) and 2) a farm you operate.

Obviously, it is neither...how does she report this income?

Thanks so much!!

 

[alkemyst]

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[alkemyst]

Originally posted by: GeneValgene
I was hoping someone could help me out.

My sister received a 1099-MISC form for $2500 under box 7 (Nonemployee compensation) for work that she performed at a counseling clinic (she is not considered an employee).

When she adds this to Turbo Tax, its says that this income is not reported on another form or schedule, and that she needs to tell Turbo Tax the source of the compensation.

However, the only options it gives her as a source are 1) a business you own (sole proprietor) and 2) a farm you operate.

Obviously, it is neither...how does she report this income?

Thanks so much!!

She would be a sole proprietor in this case, the same as most contractors.

She will need to pay SE tax on this amount as well, fortunately it opens up Sch C to her and many tax advantages. Of course with such a small amount as this income her deductions will be limited.

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[GeneValgene]

Thanks alkemyst!

 

[EagleKeeper]

Originally posted by: alkemyst

Originally posted by: GeneValgene
I was hoping someone could help me out.

My sister received a 1099-MISC form for $2500 under box 7 (Nonemployee compensation) for work that she performed at a counseling clinic (she is not considered an employee).

When she adds this to Turbo Tax, its says that this income is not reported on another form or schedule, and that she needs to tell Turbo Tax the source of the compensation.

However, the only options it gives her as a source are 1) a business you own (sole proprietor) and 2) a farm you operate.

Obviously, it is neither...how does she report this income?

Thanks so much!!

She would be a sole proprietor in this case, the same as most contractors.

She will need to pay SE tax on this amount as well, fortunately it opens up Sch C to her and many tax advantages. Of course with such a small amount as this income her deductions will be limited.

Å

Dig through this thread for ideas that she can use to reduce the tax due on this income. She should without using too much creativity be able to cut the extra tax bill in at least half if not by all.
Being legally creative can actualy reduce the tax bill of the normal W2 income also

 

[MustISO]

Topic: Credit for AMT paid in a previous year.

In 2001 I had to pay AMT. It doesn't look like I took a credit in 2002 for it.
Should I have? Did I lose any credit I could have taken?

 

[Blain]

Oops, double post.

 

[Blain]

Help a brutha out

I was ready to sign & send off my taxes, when I noticed something that didn't look right.

* My tax preparer has added my 401k contribution to my wife's IRA deposit. See deduction pic here
* My 401k contribution is "pre-tax". The difference between box 1 "Wages, tips, other compensation", vs. box 3 "Social security wages" show the difference. See W2 pic here
* Does my tax preparer have me "double-dipping" on my 401k contribution?


>> EDiT << After looking closer at form 8880. It seems the 401k contribution was factored in only for the "Retirement savings contributuions credit" (Line 48).
I don't remember seeing this credit when I did my own taxes a few years ago. Is this credit new?

 

[EagleKeeper]

Originally posted by: Blain After loking closer at form 8880. It seems the 401k contribution was factored in only for the "Retirement savings contributuions credit" (Line 48).
I don't remember seeing this credit when I did my own taxes a few years ago. Is this credit new?

Yes - Why it happens, I never noticed, however, it seems to be an incentive for people to use the 401K.
How it can be an incentive if people are not aware of it, I can not figure.

 

[Blain]

Thanks Eagle.

BTW, Because of this odd item. I went over my return and found out that the preparer had used the wrong tax from the tax table. She had my tax due @ $75 less than it should have been.

Can I get any of my prep fee back? Or is it "just one of those things"?