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

[EagleKeeper]

Originally posted by: 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"?

I would complain and ask for some type of adustment from the manager of the tax office.

Also, now you know that you can save money and also do it yourself. The tax preparers are for those who have very complicated returns or are too lazy/ignorant to figure out their taxes.

For $20-40 you could get tax S/W that can assist you (walk you through what is needed). Accuracy is usually computerized, therefore those types of errors by using the incorrect table is not going to happen.
As you have experienced, the tax preparer is just organizing and filling in the blanks with the information the YOU provided to them. You have done most of the work for them already.

 

[alkemyst]

Originally posted by: 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"?

Prep fee and the guarantee behind it are up to the shop doing it.

You need to ask, however you are responsible for that $75 sooner or later.

Å

 

[dowxp]

my dad has two dependents (my sister and I) and for the education deductible he is only coming up $3000 total for the both of us. Is this normal? My dad thought it was around $3000 per child, thus $6000 final. I'm using TurboTax.. thanks.

 

[CPA]

Originally posted by: dowxp
my dad has two dependents (my sister and I) and for the education deductible he is only coming up $3000 total for the both of us. Is this normal? My dad thought it was around $3000 per child, thus $6000 final. I'm using TurboTax.. thanks.

I'm assuming he is using the Hope Credit. Is so, he is only allowed to claim $1500 per eligible student per year. He may want to try calculating his credit using the Lifetime Learning Credit formula. He won't, though, be able to claim both credits in the same year.

 

[edro]

I have a quick tax question.

I already completed my taxes and got my refund back, in like February (1040 EZ).

I was talking to my roommate, and he said that there is a large tax break if I paid any tuition this year. I paid quite a bit of tuition in 2003, so wouldn't that lower my taxable income, which would increase my return?

What receipts do I need to do this?
What forms do I need to fill out since I need to modify my already completed taxes?
Can I do it with only a few days left?
Would I be better off going to a tax place and have them do it? (Since it is complicated)

Thanks a ton!
(If you could PM me (anyone), I would appreciate it!)

 

[alkemyst]

Originally posted by: edro13
I have a quick tax question.

I already completed my taxes and got my refund back, in like February (1040 EZ).

I was talking to my roommate, and he said that there is a large tax break if I paid any tuition this year. I paid quite a bit of tuition in 2003, so wouldn't that lower my taxable income, which would increase my return?

What receipts do I need to do this?
What forms do I need to fill out since I need to modify my already completed taxes?
Can I do it with only a few days left?
Would I be better off going to a tax place and have them do it? (Since it is complicated)

Thanks a ton!
(If you could PM me (anyone), I would appreciate it!)

Well doing PM's here only is rude to the rest of us, but I will answer here and PM you a copy.

Paying tuition is only a qualifier...then you have to qualify into the HOPE, Lifetime Learning, or other expense categories.

The HOPE gives you the most bang for the buck up to decent sized but low limit....however it's almost a $1 for $1, you may only use this for the first two years of a qualified post-secondary school in a qualified post-secondary tract. The Lifetime learning is much broader but the pay out is only about $5:$1 (20%), there is a limit too I believe but much higher than a HOPE. If you are self-employeed you can use some benefits as well....

You cannot take both HOPE and Lifetime though in the same year.

These deductions are simple, all you need is to check out http://www.irs.gov/pub/irs-pdf/p970.pdf

I don't think you can use an EZ for these. You should have no problems even after the 4/15 cutoff unless you OWED money. IRS would rather not hear from you if they owe you ....filling out a 1040X is going to provide you your current year solution. I believe you can still claim these next year as well ... but if you are going to have more educational deductions it may cause a problem. In that above publication it should outline it.

Å

 

[edro]

Thanks man! I didn't realize the 4/15 cutoff was only if you owed money... I thought it was for ALL tax stuff.

 

[Blain]

> Update <

Part of my taxable income was from a long term cap. gain from the sale of some stock. My preparer told me that they are now taxed at different rates. And that's why she has a lower tax owed than I thought.

With so many new rules from the IRS, which software company keeps up with them better than the rest?

 

[alkemyst]

Originally posted by: edro13
Thanks man! I didn't realize the 4/15 cutoff was only if you owed money... I thought it was for ALL tax stuff.

It's really not even a 'cutoff' persay...just the cut off before you enter the dreaded .5%-.7% per month penalty + anything else as a penalty they can think up. If you owe money they will take it late whether in cash or by blood or first born child I hear

If you are getting money back I don't know how filing late may affect someone...I doubt it happens much . Anyone know?

&Aring;

 

[Dissipate]

CPA: have you ever read section 861 of the tax code? There is this group that claims that under section 861 only income from overseas business can be taxed. Check it out, tell me what you think.

Link

The people in the interviews they have don't seem like crackpots.

 

[CPA]

Originally posted by: Dissipate
CPA: have you ever read section 861 of the tax code? There is this group that claims that under section 861 only income from overseas business can be taxed. Check it out, tell me what you think.

Link

The people in the interviews they have don't seem like crackpots.

I have heard and read of many schemes to get around paying tax. I actually vaguely heard of this one a short time ago on the radio. The problem is is that no court has ever sided with these groups in the past. Courts have always sided with the government in pushing it's authority over collecting income tax on individuals.

 

[Dissipate]

Originally posted by: CPA

Originally posted by: Dissipate
CPA: have you ever read section 861 of the tax code? There is this group that claims that under section 861 only income from overseas business can be taxed. Check it out, tell me what you think.

Link

The people in the interviews they have don't seem like crackpots.

I have heard and read of many schemes to get around paying tax. I actually vaguely heard of this one a short time ago on the radio. The problem is is that no court has ever sided with these groups in the past. Courts have always sided with the government in pushing it's authority over collecting income tax on individuals.

The group claims that the IRS and the government refuses to answer questions relating to section 861. Have there been specific court rulings regarding section 861?

 

[CPA]

Originally posted by: Blain
> Update <

Part of my taxable income was from a long term cap. gain from the sale of some stock. My preparer told me that they are now taxed at different rates. And that's why she has a lower tax owed than I thought.

With so many new rules from the IRS, which software company keeps up with them better than the rest?

Everybody has their proference. I like TaxAct. They should have all had the lower rates for long term gains though. The IRS doesn't come out with the final rules until early January, then you usually download the final version of your tax S/W product.

 

[Blain]

Does the IRS make rules in Jan of 04 for the tax year 03?

Wow, pro reviews and user ratings can be far different from one another

 

[CPA]

Originally posted by: Blain
Does the IRS make rules in Jan of 04 for the tax year 03?

Wow, pro reviews and user ratings can be far different from one another

They finalize the rules.

 

[alkemyst]

Originally posted by: Dissipate

The group claims that the IRS and the government refuses to answer questions relating to section 861. Have there been specific court rulings regarding section 861?

The problem is twofold. One if you don't pay it's sometime easy to never get caught. If you never have paid even easier, most get caught when big changes happen.

In all of these the idea's are sound, plausable, and believable...as a matter of fact probably legal....however get audited and you will find out the real story. Not everything the IRS does is by the book or possibly even legal....they don't really have to answer to anyone.

There have been many many people claiming things just like Section 861 and totally screwed on penalties and interest.

Seriously if it worked, just like 'free' software everyone would do it and it would not be a 'secret'. People from all over the world would probably come to get citizenship as well if they could live income tax free here.

&Aring;

 

[FeathersMcGraw]

While I was cleaning up my files the other day, I discovered some additional forms for charitable deductions that I'd forgotten to take on this year's return (already filed and received). Is it possible/worthwhile to amend my return?

 

[alkemyst]

Originally posted by: FeathersMcGraw
While I was cleaning up my files the other day, I discovered some additional forms for charitable deductions that I'd forgotten to take on this year's return (already filed and received). Is it possible/worthwhile to amend my return?

It's impossible for us to answer with such little information.

If you are talking $100 or less probably not...but what number you care about is up to you.

&Aring;

 

[Dissipate]

Originally posted by: alkemyst

Originally posted by: Dissipate

The group claims that the IRS and the government refuses to answer questions relating to section 861. Have there been specific court rulings regarding section 861?

The problem is twofold. One if you don't pay it's sometime easy to never get caught. If you never have paid even easier, most get caught when big changes happen.

In all of these the idea's are sound, plausable, and believable...as a matter of fact probably legal....however get audited and you will find out the real story. Not everything the IRS does is by the book or possibly even legal....they don't really have to answer to anyone.

There have been many many people claiming things just like Section 861 and totally screwed on penalties and interest.

Seriously if it worked, just like 'free' software everyone would do it and it would not be a 'secret'. People from all over the world would probably come to get citizenship as well if they could live income tax free here.

&Aring;

I currently have no income tax obligations and I already got my refund so this doesn't apply to me. I'm just curious as to how a group such as the 861 evidence group can swear up and down that domestic income is not taxable. Perhaps I should try to read the tax law myself.

However, in any event the idea that the IRS is above the law is quite scary, perhaps Americans should re-think the nature of this agency. Its interesting to note that apparently one of the lead proponents of the 861 group: Larken Rose has failed to file tax returns for some time now(or something to that effect) and the government has not gone after him.

 

[FeathersMcGraw]

Originally posted by: alkemyst

While I was cleaning up my files the other day, I discovered some additional forms for charitable deductions that I'd forgotten to take on this year's return (already filed and received). Is it possible/worthwhile to amend my return?

If you are talking $100 or less probably not...but what number you care about is up to you.

I'm guessing the additional deduction will probably be right around the $100 mark, but I don't know what's involved in terms of filing additional paperwork (i.e. whether it can be done with a computerized package like TurboTax/TaxCut, or whether I'm going to need to enlist a tax service). What's involved?

Are charitable deductions only applicable for the tax year they're made in, or can I just carry these over to my 2004 filing?

 

[alkemyst]

Originally posted by: Dissipate

I currently have no income tax obligations and I already got my refund so this doesn't apply to me. I'm just curious as to how a group such as the 861 evidence group can swear up and down that domestic income is not taxable. Perhaps I should try to read the tax law myself.

Because chances are someone somewhere is paying them for the information. There is probably a ton of disclaimers in whatever package they send.

However, in any event the idea that the IRS is above the law is quite scary, perhaps Americans should re-think the nature of this agency. Its interesting to note that apparently one of the lead proponents of the 861 group: Larken Rose has failed to file tax returns for some time now(or something to that effect) and the government has not gone after him.

Well that has been thought of...the trouble is no checks and balances...the IRS answers to no one.

With Larken Rose if he can prove he owes nothing or gets a refund (which I am sure is the case) then the IRS will not go after him....this is how you can get away with claims like this.

If you research the IRS you'd be shocked at some of the stuff that goes on. You have to figure there are crooked agents and good ones out there like any government agency.

&Aring;

 

[Mermaidman]

.
.
.

NEW QUESTION:
I moved to North Carolina last year. How do I determine the portion of taxable interest that was earned while I was in each state of residence? Do I just divide it according the % of the year that I lived in each state (e.g. 3 months in NC=25%)?

BTW, I have interest posted monthly to my accounts, as well as interest reported to me just once a year on a 1099.
TiA
.
.
.

 

[Dissipate]

Originally posted by: alkemyst

Originally posted by: Dissipate

I currently have no income tax obligations and I already got my refund so this doesn't apply to me. I'm just curious as to how a group such as the 861 evidence group can swear up and down that domestic income is not taxable. Perhaps I should try to read the tax law myself.

Because chances are someone somewhere is paying them for the information. There is probably a ton of disclaimers in whatever package they send.

However, in any event the idea that the IRS is above the law is quite scary, perhaps Americans should re-think the nature of this agency. Its interesting to note that apparently one of the lead proponents of the 861 group: Larken Rose has failed to file tax returns for some time now(or something to that effect) and the government has not gone after him.

Well that has been thought of...the trouble is no checks and balances...the IRS answers to no one.

With Larken Rose if he can prove he owes nothing or gets a refund (which I am sure is the case) then the IRS will not go after him....this is how you can get away with claims like this.

If you research the IRS you'd be shocked at some of the stuff that goes on. You have to figure there are crooked agents and good ones out there like any government agency.

&Aring;

I actually think an income tax goes against an individual's right to free trade (more about that here.). But since I fear the IRS greatly, I'm one of those people who will comply just because I don't want to face the consequences of not complying. Stuff like bank account freezes, liens, confiscations, audits... The stuff of nightmares.

My dad has had tax problems and one time an IRS agent came to the door to discuss payment options or something. I answered the door and after I found out who he was my heart was literally pounding, my parents weren't home at the time so he gave me his card and left, but even after he did my blood pressure was still up.

 

[CPA]

Originally posted by: Mermaidman
.
.
.

NEW QUESTION:
I moved to North Carolina last year. How do I determine the portion of taxable interest that was earned while I was in each state of residence? Do I just divide it according the % of the year that I lived in each state (e.g. 3 months in NC=25%)?

BTW, I have interest posted monthly to my accounts, as well as interest reported to me just once a year on a 1099.
TiA
.
.
.

As stated, we cannot always answer state related questions, as the laws are too varied and numberous. Your best option is to call the NCs Treasury department and ask them the proper method of filing.

 

[Isocene]

I started doing my taxes on H&Rblock.com and when I got to the state part it didnt have mine, Texas, listed! What do I do? Should I just goto a physical H&R Block? I checked TaxAct too and they dont have Texas, whats up with that?

I havent filed with H&Rblock.com yet.


Mike