Tax Experts HELP!!!!

[Stiganator]

So I got audited.....

Well apparently in 2004 my first year of college I filed assuming my parents would not label me as a dependent , but they did. Well I lived in an apartment and they gave us a form that said 19% of our rent would be refunded as a property tax refund. I thought great, $950. So, now they say that I couldn't claim that since I was a dependent. The IRS says I have to pay back ~$1300. If I can't have the 950 refund, then shouldn't my parents? Thus negating a large portion of that amount due? Help I feel like they are trying to f*ck me over and I don't know what to do!!!

 

[Savij]

Originally posted by: Stiganator
So I got audited.....

NOT FOR ATOT

 

[FoBoT]

you can't assume with taxes, you have to coordinate with your parents and agree on your filing status when you file

you can either talk to a tax professional or just pay it

 

[Whoozyerdaddy]

How much are they coming after you for?

 

[ch33zw1z]

Chances are you will be paying it either way. You filed incorrectly, you need to speak with your parents. They received $$ for filing with you as a dependant, let them know your situation ASAP. Seeing my father milked dry for his purposeful past tax indescretions has made me fully aware of the IRSs' true potential.

 

[patentman]

$1350 is not being "milked dry." Trust me, my mom is a Senior Tax manager at a large tax firm, it can get a LOT worse.

 

[allisolm]

I can't even figure out how they can give renters a property tax refund when renters don't even pay property taxes - property owners do. Calling Eaglekeeper!

Good luck!

 

[Wonderful Pork]

this accidentally happened to me (for 2004 taxes filed in 2005). I did my taxes as soon as I got my W2 in January. I graduated college in 04 and got a full time position, so I put down independent. A couple months later my dad told me he filed with me as a dependent. I had to amend my return using s 1099X (I think) and then the IRS sent me a bill for how much I owed (fee+penalty i believe). My dad and I split the expense, it was only maybe $300 total.

 

[krunchykrome]

They're not f*cking with you. You made a mistake, and now it has to be corrected. And you're not being audited. All you have to do is file an ammended return.

 

[Stiganator]

I understand that at least my state and possible federal will be different and I will have to pay ~$300, but since I didn't get teh property tax refund my parents should right?

 

[iamwiz82]

Originally posted by: allisolm
I can't even figure out how they can give renters a property tax refund when renters don't even pay property taxes - property owners do. Calling Eaglekeeper!

Good luck!

In Michigan it's called the Homestead Property Credit. Renters get a credit for a portion of their rent as being property tax that the owner pays on your behalf and homeowners get a percentage of their property tax. Not the exact same thing, but a similar situation.

 

[IeraseU]

I hate the IRS.....They sent me a letter a few days ago asking me to 'sign and return it order to verify that everything I reported on my tax return was correct'.......I suspect this means I'm about to get the........well you know.

 

[mugs]

Originally posted by: Stiganator
So I got audited.....

Well apparently in 2004 my first year of college I filed assuming my parents would not label me as a dependent , but they did. Well I lived in an apartment and they gave us a form that said 19% of our rent would be refunded as a property tax refund. I thought great, $950. So, now they say that I couldn't claim that since I was a dependent. The IRS says I have to pay back ~$1300. If I can't have the 950 refund, then shouldn't my parents? Thus negating a large portion of that amount due? Help I feel like they are trying to f*ck me over and I don't know what to do!!!

If your parents were entitled to it they'd have to file an amended return I think.

 

[amish]

Originally posted by: IeraseU
I hate the IRS.....They sent me a letter a few days ago asking me to 'sign and return it order to verify that everything I reported on my tax return was correct'.......I suspect this means I'm about to get the........well you know.

or it means that you forgot to sign your return.

you'd be surprised how much that happens.

 

[amish]

Originally posted by: Stiganator
So I got audited.....

Well apparently in 2004 my first year of college I filed assuming my parents would not label me as a dependent , but they did. Well I lived in an apartment and they gave us a form that said 19% of our rent would be refunded as a property tax refund. I thought great, $950. So, now they say that I couldn't claim that since I was a dependent. The IRS says I have to pay back ~$1300. If I can't have the 950 refund, then shouldn't my parents? Thus negating a large portion of that amount due? Help I feel like they are trying to f*ck me over and I don't know what to do!!!

the irs is a good place to start.

i'm leary of the apartments property tax refund. what form did they give you?

as for the dependent thing, you are SOL. you should have informed your dad of your intentions. file a 1040X not claiming your exemption credit.

 

[mooglekit]

Originally posted by: Stiganator
I understand that at least my state and possible federal will be different and I will have to pay ~$300, but since I didn't get teh property tax refund my parents should right?

Incorrect in a lot of places. Property taxe refunds in MN are based on income so your parents may have an income level that makes them unable to claim this property tax refund.

You made an honest mistake, just buck up, pay the bill and move on.

EDIT: missing an important word there

 

[Stiganator]

So they I received a Minnesota CRP form and filed the M1PR. How does it work if my parents owned a home and claimed me as a dependent, but I paid rent with only my money that I earned from work aka none of theirs and not my financial aid either. There is no information regarding if you're owning a home and "paying" rent for a dependent, which is how I understand they are classifying me.

 

[mooglekit]

Originally posted by: Stiganator
So they I received a Minnesota CRP form and filed the M1PR. How does it work if my parents owned a home and claimed me as a dependent, but I paid rent with only my money that I earned from work aka none of theirs and not my financial aid either. There is no information regarding if you're owning a home and "paying" rent for a dependent, which is how I understand they are classifying me.

Why, what a coincidence, I just filed my Minnesota property tax refund a few weeks ago, so I can actually speak from experience! If you read the requirements for rental based property tax refunds, the renter who paid the taxes cannot be listed as a dependent on anyone elses tax return, so you would be ineligible for this refund.

EDIT: Your parents would file for a refund on their home, and I'm sure they've already done that. As an example of why I don't believe they'd be eligible for a refund on the rental anyway, to qualify for that refund on my 05 taxes I had to have a total household income below about $30,000...I'm guessing your parents are over the threshold for that rental refund.

 

[Stiganator]

I found this section in the directions.

If you rented during 2004 and then owned
and lived in your home on January 2, 2005,
follow the steps for both renters and homeowners.
You must include all of your 2004
CRPs and your Statement of Property Taxes
Payable in 2005 when you file Form M1PR.

Does this mean my parents should be able to claim my CPR as well? That's what I interpret it as.

 

[mooglekit]

Originally posted by: Stiganator
I found this section in the directions.

If you rented during 2004 and then owned
and lived in your home on January 2, 2005,
follow the steps for both renters and homeowners.
You must include all of your 2004
CRPs and your Statement of Property Taxes
Payable in 2005 when you file Form M1PR.

Does this mean my parents should be able to claim my CPR as well? That's what I interpret it as.

No, it doesn't. Your parents would have to had rented and lived in that rental as their primary residence and then moved into a home. You're out of luck on this one, just pay up.

 

[Stiganator]

so $950 just disappears, no one get it?

 

[MikeyLSU]

what I want to know is why does the IRS say you are wrong? Seems that your parents should be in the wrong since they claimed you without you knowing. It should be up to you how you file, not your parents, when you are old enough.

 

[mooglekit]

Originally posted by: Stiganator
so $950 just disappears, no one get it?

Not really, that refund isn't a given, it's a refund that is provided when certain financial requirements are met. Not everyone is entitled to a property tax refund and, in this case, you simply don't meet the requirements.

On another note, is this the IRS or MN State? The property tax refund you are talking about is a state tax issue, not federal

 

[CPA]

Originally posted by: mooglekit

Originally posted by: Stiganator
I understand that at least my state and possible federal will be different and I will have to pay ~$300, but since I didn't get teh property tax refund my parents should right?

Incorrect in a lot of places. Property taxes are often based on income so your parents may have an income level that makes them unable to claim this property tax refund.

You made an honest mistake, just buck up, pay the bill and move on.

huh?

OP,

I'm not sure how you deserved a refund in the first place. Property taxes are itemized deductions. What was the basis of the refund? Did you get the refund from the apartment management or as part of your 1040 filing? What form did you receive notifying you of the refund?

I'm sorry I need a little more info on this.

Coordination of dependency is often overlooked between parents and adult dependents. And it usually bites the dependents in the @ss.

 

[mooglekit]

Originally posted by: CPA

Originally posted by: mooglekit
Incorrect in a lot of places. Property tax refunds are often based on income so your parents may have an income level that makes them unable to claim this property tax refund.
You made an honest mistake, just buck up, pay the bill and move on.

huh?

Ha, I missed an important word in that post! MN refunds are on a sliding scale based on your income, as income goes up, your refund amount goes down.
OP,
Quick solution to seeing whether or not your parents would even be eligible if you could somehow swing it would be to get their total household income from their return and check the tables in the instructions for the MPR1 form that indicate what the refund amount would be. I suspect your parents income will lead to a refund amount of $0.