10th Annual Tax Thread - 2012

[Meractik]

I just did my taxes with turbo tax business.... as stated earlier in this thread I had a TSP -> Roth IRA conversion in 2012. I know that I must pay taxes on this conversion but than it gets made into a Roth IRA and I no longer have to pay taxes EVER (at least on this money..), YAY! but where I am confused is I finished my TT e-filed and upon printing the documents it is showing all these tax payments coupons for 2013/14 for the rolled over account (1040-ES's)..... I already submitted my stuff.... what did I do wrong?!?! I thought I would be done paying taxes, I did owe money and setup payments for it, I should be good???

Oh, and while im thinking of it since you guys are CPA and professional, here is a quick and simple question... how long should I keep my prior year tax paperwork?

 

[EagleKeeper]

I just did my taxes with turbo tax business.... as stated earlier in this thread I had a TSP -> Roth IRA conversion in 2012. I know that I must pay taxes on this conversion but than it gets made into a Roth IRA and I no longer have to pay taxes EVER (at least on this money..), YAY! but where I am confused is I finished my TT e-filed and upon printing the documents it is showing all these tax payments coupons for 2013/14 for the rolled over account (1040-ES's)..... I already submitted my stuff.... what did I do wrong?!?! I thought I would be done paying taxes, I did owe money and setup payments for it, I should be good???

Oh, and while im thinking of it since you guys are CPA and professional, here is a quick and simple question... how long should I keep my prior year tax paperwork?

Without actually seeing the return, I suspect that you owed taxes, and indicated that you were not paying them in full at time of filing. In that case TT prints out your voucher payment forms to be used when mailing in the quarterly $$ due.

As to the other on retention; recommend min 5 years. The IRS had authorization to go back 3 prior years. That means that while you are filing for '12 they can still look at your '09, '10 and'11 returns previously filed.

You also are allowed to file an amended return, 1040X for those years if you found something was overlooked.

 

[Meractik]

Without actually seeing the return, I suspect that you owed taxes, and indicated that you were not paying them in full at time of filing. In that case TT prints out your voucher payment forms to be used when mailing in the quarterly $$ due.

As to the other on retention; recommend min 5 years. The IRS had authorization to go back 3 prior years. That means that while you are filing for '12 they can still look at your '09, '10 and'11 returns previously filed.

You also are allowed to file an amended return, 1040X for those years if you found something was overlooked.

Thanks so much EagleKeeper for a quick reply, I appreciate your promptness.... the confusion over my taxes is a little stressful at the moment (Ive never had a problem like this...)

I did owe taxes at the end of processing for 2012, I thought however that the amount of taxes I would owe on the TSP money upon the conversion would be one-lump sum, pay the taxes and forget about it.... according to what you say these 1040-ES's are all the same amount owed and stretched over 4 payments.

Long story short, I do not want this... I want to pay it all up front (the amount on the 1040-ES's in total is about $1,112). Is there some way that I can abolish these tax amounts owed this year and forget about it through an amendment since I already filed and submitted both state and federal electronically?


Is there anyway I can submit an amendment for this total accumulative amount on the ES's this year and be completely dissolved of the debt rather than this payment plan? (reason being is I am moving in 2013 and I don't want the headache looming over my head of having to remember to submit payments to my current state via checks in the mail... as these 1040-ES's say...)

 

[EagleKeeper]

Send in the amount owed (shown at bottom of return) with the signed return. Then turn the ES sheets into scratch paper.

All problems have now solved :biggrin:

 

[Meractik]

Send in the amount owed (shown at bottom of return) with the signed return. Then turn the ES sheets into scratch paper.

All problems have now solved :biggrin:

Rather than print out the whole return or make any amendment... could I just print out all the individual payment vouchers total up the amount and write one check to the entity on the vouchers (ES Sheets) ?

I would assume that if this form of action is acceptable, they'd simply accept the funds by cashing the check and at which time they do so I could just print proof of check being cashed and boom, done? Or is there more to it than that...... (Would I, or Should I make an amendment... etc..?)

I figure if acceptable I could just write one check for the total ES Amount and in the memo just put TSP-IRA Conversion PAID-IN-FULL ...

Thoughts?

Edit: If you take IT Certification tests and/or Training or have a membership to lets say... Microsoft Technet (which has annual fee) are these items you're able to write off as deductions come tax time? as long as you're able to prove that they're relevant to your job/career?

 

[Kwatt]

I know it was stated in the first post that State Tax questions will not be answered.

This is kind of a state question so ignore it if you must.

The Georgia Tax Form 500 online cannot be printed using Ubuntu maybe all Linux versions.
Every site I tried to get a printable PDF from just links back to the GA gov site.

Does anyone know of a way to print a GA form 500? Or a PDF I can download and print out?


.

 

[Meractik]

I know it was stated in the first post that State Tax questions will not be answered.

This is kind of a state question so ignore it if you must.

The Georgia Tax Form 500 online cannot be printed using Ubuntu maybe all Linux versions.
Every site I tried to get a printable PDF from just links back to the GA gov site.

Does anyone know of a way to print a GA form 500? Or a PDF I can download and print out?


.

Not sure if this is the exact form you're looking for but I found some links on this website that load an actual Printable/Fillable PDF Document.. check it out.

http://www.jwtaxhelp.com/2012/04/04...-individual-income-return-printable-pdf-file/

 

[EagleKeeper]

Rather than print out the whole return or make any amendment... could I just print out all the individual payment vouchers total up the amount and write one check to the entity on the vouchers (ES Sheets) ?

I would assume that if this form of action is acceptable, they'd simply accept the funds by cashing the check and at which time they do so I could just print proof of check being cashed and boom, done? Or is there more to it than that...... (Would I, or Should I make an amendment... etc..?)

I figure if acceptable I could just write one check for the total ES Amount and in the memo just put TSP-IRA Conversion PAID-IN-FULL ...

Thoughts?

Edit: If you take IT Certification tests and/or Training or have a membership to lets say... Microsoft Technet (which has annual fee) are these items you're able to write off as deductions come tax time? as long as you're able to prove that they're relevant to your job/career?

1) Attach the check for the amount of tax owed as shown on the 1040 to the 1040 printout itself.

2) Shred the ES statements; they are worthless, even as toilet paper.

Those test can be itemized using the Form 2106.
The gotcha is that you have to itemize (Schedule A) and you also are expected to "spend" a % of your income before such expenses have an impact.

 

[Kwatt]

Not sure if this is the exact form you're looking for but I found some links on this website that load an actual Printable/Fillable PDF Document.. check it out.

http://www.jwtaxhelp.com/2012/04/04...-individual-income-return-printable-pdf-file/

That is the form.
That links back to GA gov site to download.
Cannot fill it out online and can't save it and print it out to fill by hand with pen.

Last year could not fill it out online but could save a copy to print and use ink.

.

 

[Meractik]

1) Attach the check for the amount of tax owed as shown on the 1040 to the 1040 printout itself.

2) Shred the ES statements; they are worthless, even as toilet paper.

Those test can be itemized using the Form 2106.
The gotcha is that you have to itemize (Schedule A) and you also are expected to "spend" a % of your income before such expenses have an impact.

I understand you mention the ES statements are useless and more of just a reminder for payments.

My issue is that I used TT and the e-filed documents ended up being a 1040-A submitted electronically for federal. I actually processed ALL my tax forms for federal and state and submitted all money TT claimed I owed two days ago. I even got emails from the IRS as accepting the submission and payment is scheduled to take place direct from my bank on Monday/Tuesday.

Since these 2012 payments are already scheduled to take place monday/tuesday... my problem exists with the left over payments for the TSP-Roth conversion that are listed on the 1040-ES's.

I do not understand why these payments are required in 2013/2014... I wish to pay the taxes on the conversion in full. I did not leave ANY forms that I received out of my TT filing.. yet upon ending the TT session it is showing me that I will owe quarterly tax payments next yr.

Perhaps I am mis-understanding the purpose of 1040-ES's... from the data I've provided would you say that its safe to say my TSP-Roth IRA conversion is taken care of?

Are the 1040-ES's only simple reminders of what I could expect to pay in taxes next yr based off my current year filing? (Do they have anything to do with my TSP-Roth IRA conversion? Ive never seen these before on a tax return Ive done, but than again Ive never owed money either...)

 

[Meractik]

That is the form.
That links back to GA gov site to download.
Cannot fill it out online and can't save it and print it out to fill by hand with pen.

Last year could not fill it out online but could save a copy to print and use ink.

.

You're not able to save it?

Which one do you need.... PM me with your e-mail and ill see if I can extract it for you... ive got all the fancy adobe tools that might allow me to get at it easily...

Edit: Kwatt, YGPM... let me know if that works...

 

[EagleKeeper]

I understand you mention the ES statements are useless and more of just a reminder for payments.

My issue is that I used TT and the e-filed documents ended up being a 1040-A submitted electronically for federal. I actually processed ALL my tax forms for federal and state and submitted all money TT claimed I owed two days ago. I even got emails from the IRS as accepting the submission and payment is scheduled to take place direct from my bank on Monday/Tuesday.

Since these 2012 payments are already scheduled to take place monday/tuesday... my problem exists with the left over payments for the TSP-Roth conversion that are listed on the 1040-ES's.

I do not understand why these payments are required in 2013/2014... I wish to pay the taxes on the conversion in full. I did not leave ANY forms that I received out of my TT filing.. yet upon ending the TT session it is showing me that I will owe quarterly tax payments next yr.

Perhaps I am mis-understanding the purpose of 1040-ES's... from the data I've provided would you say that its safe to say my TSP-Roth IRA conversion is taken care of?

Are the 1040-ES's only simple reminders of what I could expect to pay in taxes next yr based off my current year filing? (Do they have anything to do with my TSP-Roth IRA conversion? Ive never seen these before on a tax return Ive done, but than again Ive never owed money either...)

The ES are for those that are not able to pay in full by April 15th.

If you look at line 76 of the 1040 - tax owed.

If you pay that amount, your tax problems for 2012 filings have been satisfied.

Best thing would be to contact the TT help and ask what they are doing/trying to do to you.

 

[Meractik]

The ES are for those that are not able to pay in full by April 15th.

If you look at line 76 of the 1040 - tax owed.

If you pay that amount, your tax problems for 2012 filings have been satisfied.

Best thing would be to contact the TT help and ask what they are doing/trying to do to you.

Okay, based off your description of the ES's only being utilized by those unable to pay their owed amount in taxes by April 15th I believe I have satisfied all my obligations.

On my 1040A the line for "Amount you owe" is line 45 and that is the amount I am electronically paying to IRS.

Once I take a step back and look at the numbers including the penalty fee it all matches up to make sense with my amount owed. It appears as though I was just paranoid and worrying over the 1040-ES forms that Ive never seen before.

Anywhoooo....

Thanks for all your help and having the required patience to answer all my questions!

 

[Kwatt]

You're not able to save it?

Which one do you need.... PM me with your e-mail and ill see if I can extract it for you... ive got all the fancy adobe tools that might allow me to get at it easily...

Edit: Kwatt, YGPM... let me know if that works...

Thanks,
But that will not print either.

.

 

[CPA]

Can you explain to me the difference between contribution limits on a 401k and Traditional/Roth IRA.

If I invest in a 401k through work, then decide to invest in a Roth IRA....does the 401k count against my Roth IRA limits? It's obvious that IRA limits for 2012 are $5000, but I've read that 401k contributions are limited to $17000. I've heard people say all kinds of stuff about the limits and don't know what to believe.

Assuming you are not rolling your 401K into a Roth IRA, your 401K contributions have no bearing on Roth contributions. This is true even if you have a Roth plan under your company's 401K plan (not many do).

Your Roth limits will be determined by your Modified Adjusted Gross Income (MAGI) level, your total (including spouse) income income level and any contributions you may have made to a traditional IRA.

 

[TurtleCrusher]

The IRS E-file pin thing is ridiculous. We had to call 15 times to get my wife's E-file pin. Damn system kept hanging up on us or didn't understand when we said our extension.

I've never claimed a big amount for a deduction as I did this year. Almost $2700 in education expenses. I purchased turbotaxes audit defense just in case I did it wrong. How long are electronic returns with direct deposit taking these days?

Edit: FEDERAL RETURN ALREADY ACCEPTED? That's the email I got from turbotax. My deduction from the fed is what I was worried about. Looks like it went through?

 

[EagleKeeper]

First; no matter when you submitted the return; the Feds did not accept for processing anything before the 15th of Feb that had educational expenses.

then there is the generic 3 week window that the Fed talks about.
So until March 7th; anything you are expecting is not guaranteed if you filed on/before the 15th.

A good rule of thumb is to expect a direct deposit 2 Fridays after the week of filing.
the Feds have been doing DD on non Fridays; but this is a guideline.

 

[dank69]

Overpayed feds by by $1500. Is there a simple formula to determine how many more exemptions I should claim on my W4? Filed joint, wife works part time and I'd like her to claim the extra exemptions so her paycheck is bigger.

 

[EagleKeeper]

Overpayed feds by by $1500. Is there a simple formula to determine how many more exemptions I should claim on my W4? Filed joint, wife works part time and I'd like her to claim the extra exemptions so her paycheck is bigger.

Each exemption claimed is worth $3400 off the taxable income.
Look at what your tax rate is and do the calculations.

Example
a 20% rate means an exemption is worth $700 in taxes
a 30% rate is equivalent to $1000 in taxes.

realize that $1500 is about $30/week in the paycheck.

 

[KK]

IRS finally accepted mine this morning, it had the educator credit and the home energy credit on it that held it up.

 

[TurtleCrusher]

Status:

Your return has completed processing. If you requested a refund check, you should receive your refund or further information from us within two weeks. Direct deposit refunds should be completed in five to seven business days. Please verify with your bank that the funds are available for your use. Check with your bank to verify the funds are deposited into your bank account.

Can I get a hell yeah?

 

[dank69]

Each exemption claimed is worth $3400 off the taxable income.
Look at what your tax rate is and do the calculations.

Example
a 20% rate means an exemption is worth $700 in taxes
a 30% rate is equivalent to $1000 in taxes.

realize that $1500 is about $30/week in the paycheck.

Is calculating the rate as easy as dividing the federal tax withheld by the federal taxable wages for the pay period? Do I need to adjust for the 2 exemptions she is already claiming?

 

[Fingolfin269]

1) Sales Tax Question:

(I live in TN, no state income tax so I will be taking this deduction)

I understand the baseline formula used to calculate the assumed amount of sales tax. My question revolves around the major purchase section you can add to this baseline. I built a house this year and understand that I can count sales tax paid on materials used in the construction of this house as part of this deduction.

So here is my question. What is included? I assume the obvious items like brick, stone, lumber, etc. What about windows? Doors? Paint? What about the little things like portable toilets I paid for to sit on the site for works to use? Can I include appliances, hot water heater, A/C unit cost, etc?

Basically I'm just trying to figure out if I can go through all of my invoices, total up all of the sales tax paid, and call it all one big number under type: "Building Materials"? I don't want to overreach but at the same time I want to maximize.

2) Energy Credits

The new home has upgraded efficient windows as well as upgraded insulation throughout. Can I take advantage of energy efficiency credits on new home construction or is that only available for improvements to your existing home? What about in relation to appliances, hot water heater, A/C unit, etc?

3) Anything else?

Seriously if there is anything you guys can think of off the top of your head that I should probably be asking in relation to new home construction deductions please let me know!

As always guys I really appreciate all of the help you provide every year.

 

[SunnyD]

Question for my wifely income:

(Note, this is potentially more for next year's purposes, but I'm asking this now as it has some bearing on near-term decisions)

She recently started a job delivering newspapers for the local city/town weekly rag. She gets paid a flat rate per week, direct deposit, which is cool and all. Until I started thinking about it... to the point where I asked her whether she filled out a W4, which she said no, she didn't fill out anything tax or withholding related.

All of a sudden a huge red flag went up in my head - not that this place isn't legit, because it is. It's the weekly town newspaper, been in business for a long while. But the red flag that went up was "OMG, did my wife just sign up to be an independent contractor?" I'm pretty sure that no Social Security or Unemployment, nor State or Federal income taxes are being withheld from her pay since they told her "You get paid $x per week" and that's exactly what gets deposited into the bank account. Unless they manage to calculate up backwards or something, but then again, like I said, she didn't fill out a W4 or any employment paperwork either.

At what point do I need to worry about this complicating the tax-scape? It's okay money if it's straight incoming, but if we have to deal with quarterlies, setting aside money to pay taxes, etc., then this job becomes throwaway in a hurry unless there's something I'm missing.

 

[EagleKeeper]

Is calculating the rate as easy as dividing the federal tax withheld by the federal taxable wages for the pay period? Do I need to adjust for the 2 exemptions she is already claiming?

Federal tax withholding already accounts for her withholding.

If you use Tax s/w in the summary, it will tell you what your rate was.

either way, you are getting a good approximation to work from.