10th Annual Tax Thread - 2012

[glenn1]

I'm doing my state taxes now, and the numbers don't look right. I was a part-time resident in 3 states during 2012: MO, VA, and MD. For sake of example I've entered in mock numbers below, but the concept is the same:


Missouri (resident Jan-Sept): earnings $100,000 / tax withheld $10,000 / projected refund $800

Virginia (resident Sep - Nov): earnings $10,000 / tax withheld $500 / projected refund $500

Maryland (resident Nov - Dec): earnings $20,000 / tax withheld $1,000 / projected refund $800



Is something being double-counted? Seems like the state refund amounts are too high?

 

[EagleKeeper]

From original post; you are SOL.

You question is for State taxes

MO tax rate is 6% - 10% was withheld
VA tax rate is ~6% - 5% was withheld
MD tax rate is ~6% (w/ piggyback) - 5% was withheld

How they handle the out of state income ???

 

[joe678]

I received a k1 from a partnership that operated in two states. Should I file in both states? Partnership was sold this past year but had been purchasing/gifted shares in prior years as well.

Thanks in advance!

 

[CPA]

I received a k1 from a partnership that operated in two states. Should I file in both states? Partnership was sold this past year but had been purchasing/gifted shares in prior years as well.

Thanks in advance!

Difficult question to answer without knowing the states your registered, which is your home state, do you have a physical location in the second state or merely customers who live there, etc. In any case, it's best to check out the state's department of revenue site for more information that we can provide (actually Eaglekeeper as I haven't been involved lately. Sorry Eagle)

 

[MrScott81]

Bought a new house last year (escrow closed November 6, 2012).

Property taxes are due September and February.

Am I correct in assuming I cannot write off any property taxes yet? (I have an impound account I pay to every month, but I am guessing that they haven't paid anything yet?)

Edit: Just read this:
"If you just bought your home, remember to include the property taxes you paid in advance, listed on the settlement or closing statement."

Now I'm more confused....any help would be appreciated!

 

[redgtxdi]

Aarrrrgh! I realized I missed a 1099int. (Damn electronic-only & outta sight, outta mind).

I did the steps thru Turbo Tax to amend and, of course, turbo wants to print my 1040x and 540x(calif) along with every page of other original turn, etc.

Can I just print the 1040x and 540x with what I owe and call it a day?

Thanks

PS......I also notice on the review it says it keeps finding 1 error and "you may have amended" but you can keep going thru this loop of checking for errors and back to 1 error endlessly. Is that simply BECAUSE I amended?? (I don't see anything else to do).

PPS......Found answer here if anyone else runs into the same problem....... https://ttlc.intuit.com/questions/1...or-each-time-you-run-it-for-an-amended-return

 

[Geekbabe]

Should I use Turbo tax or Taxact? I have a regular job & some self-employment. thanks

 

[EagleKeeper]

Should I use Turbo tax or Taxact? I have a regular job & some self-employment. thanks

Online versions:
TurboTax has a prettier front end.
They will also not do your return for Free because of the Schedule C.

TaxAct has a clunkier/less polished UI
The Schedule C is Free

All will get the job done (once/if proper fees are paid to them).

 

[EagleKeeper]

Bought a new house last year (escrow closed November 6, 2012).

Property taxes are due September and February.

Am I correct in assuming I cannot write off any property taxes yet? (I have an impound account I pay to every month, but I am guessing that they haven't paid anything yet?)

Edit: Just read this:
"If you just bought your home, remember to include the property taxes you paid in advance, listed on the settlement or closing statement."

Now I'm more confused....any help would be appreciated!

Look at your settlement sheet.
It will list the taxes, fees that you paid.
If the line item states TAX - it is deductible.
If the line item is a fee to a government entity, it is deductible.

 

[MrScott81]

Look at your settlement sheet.
It will list the taxes, fees that you paid.
If the line item states TAX - it is deductible.
If the line item is a fee to a government entity, it is deductible.

Would that be the HUD? There are so many items on there and I'm not sure which ones apply to me or the seller/lender

 

[EagleKeeper]

Would that be the HUD? There are so many items on there and I'm not sure which ones apply to me or the seller/lender

It is the HUD closing sheet.

there is a column that states seller and a column that states buyer.

Look at each line item in the buyer column.

 

[joe678]

Difficult question to answer without knowing the states your registered, which is your home state, do you have a physical location in the second state or merely customers who live there, etc. In any case, it's best to check out the state's department of revenue site for more information that we can provide (actually Eaglekeeper as I haven't been involved lately. Sorry Eagle)

Live and work in NY only. Other state is CA where we have an office as well as customers.

 

[TrueBlueLS]

Obviously tax codes will change between now and next year, but I figure I'll still ask. I sold my house January 31st and made a profit of $18,000. I know that when I file taxes for 2013 that I will need to claim that. Is the gain from that seen and taxed like regular income or do they have a different structure/bracket for that? I want to be somewhat prepared for this by having extra withheld from my checks. Thanks!

 

[EagleKeeper]

Obviously tax codes will change between now and next year, but I figure I'll still ask. I sold my house January 31st and made a profit of $18,000. I know that when I file taxes for 2013 that I will need to claim that. Is the gain from that seen and taxed like regular income or do they have a different structure/bracket for that? I want to be somewhat prepared for this by having extra withheld from my checks. Thanks!

You are allowed up to $250K(approx) profit when selling a primary residence before worrying about getting taxed.

Also, when trying to determine the profit; you also take into expenses in upgrading the property as well as sales fees paid at closing.

 

[venkman]

So, I pass all of the qualifications for claiming my live in girlfriend as a dependent except for one, technically cohabitation is illegal in VA. There has been some work to over turn this law and it looks like it is complete (http://lis.virginia.gov/cgi-bin/legp604.exe?131+sum+SB969), does that mean I can file for her as a dependent on my 2012 taxes? Do I have to wait for 2013? Is there a way to fully confirm that this law has been signed? Should I request an extension?

 

[redgtxdi]

Aarrrrgh! I realized I missed a 1099int. (Damn electronic-only & outta sight, outta mind).

I did the steps thru Turbo Tax to amend and, of course, turbo wants to print my 1040x and 540x(calif) along with every page of other original turn, etc.

Can I just print the 1040x and 540x with what I owe and call it a day?

Thanks

Found my own answer here and this site does a much better job of explaining than the notorious vagary of the .gov equivalent.......and IOW, no need to send more than the 1040x and the pertinent docs (1099int in my case). TT simply loves to print docs redundantly. Maybe they're in with the paper/toner folks....... http://budgeting.thenest.com/enclose-form-1040x-23615.html

 

[Geekbabe]

The schedule C is confusing as hell. I went through, got a rough estimate of my obligations & filed for an extension. It's time to just bite the bullet and pay a pro to help me.

 

[EagleKeeper]

So, I pass all of the qualifications for claiming my live in girlfriend as a dependent except for one, technically cohabitation is illegal in VA. There has been some work to over turn this law and it looks like it is complete (http://lis.virginia.gov/cgi-bin/legp604.exe?131+sum+SB969), does that mean I can file for her as a dependent on my 2012 taxes? Do I have to wait for 2013? Is there a way to fully confirm that this law has been signed? Should I request an extension?

If illegal in VA on 31 Dec 2012, you can not claim her on 2012 taxes
If they change the law for 2013, then you can file a different status for Tax Year 2013.

 

[EagleKeeper]

The schedule C is confusing as hell. I went through, got a rough estimate of my obligations & filed for an extension. It's time to just bite the bullet and pay a pro to help me.

You only use the other line items on Schedule C if you DO NOT want to pay taxes on some of the Schedule C income :hmm:

Tax pros can only work with you provide them. They are not magicians.

 

[Geekbabe]

You only use the other line items on Schedule C if you DO NOT want to pay taxes on some of the Schedule C income :hmm:

Tax pros can only work with you provide them. They are not magicians.

I'm not faulting or blaming anyone, I'm just totally confused & know that I'm in over my head. Just starting the darn form was confusing, there was no code that described my business & I was confused about which lines various categories of expenses should be listed.

Getting an accountant is something I've been wanting to do as I move forward anyway so this is as good a time as any

 

[redgtxdi]

I'm not faulting or blaming anyone, I'm just totally confused & know that I'm in over my head. Just starting the darn form was confusing, there was no code that described my business & I was confused about which lines various categories of expenses should be listed.

Getting an accountant is something I've been wanting to do as I move forward anyway so this is as good a time as any

Meh, don't bother with any of it. If it's for prostituion, I can attest to not filing being the method of choice. During my years as a gigolo, I certainly saved more by not filing than worrying about deductions for edible underwear and the like.

 

[Svnla]

Just finished with my taxes and another one for one of my relatives.


1. This guy is divorce. His ex is remarried now and keeping the child (10 years old). He makes about 50K by salary and 2 saving accounts plus HSA (health saving account), rent a house, and pays child support for the child promptly.

Questions: I set him up as single. He can't claim the child as dependent because his ex is claiming. He is only able to take the standard deductible and nothing else. Does he have anything or do anything to lower his taxes or max out his deductible?

2. About me: Just salary plus reward checking interests and dividends from Fidelity plus Vanguard. I am renting for now and not married and no kid. Same question. Can I do anything to lower my taxes or more/max out my deductibles?

TIA everyone. This thread rocks.

 

[TrueBlueLS]

You are allowed up to $250K(approx) profit when selling a primary residence before worrying about getting taxed.

Also, when trying to determine the profit; you also take into expenses in upgrading the property as well as sales fees paid at closing.

Even with not purchasing a new home?

 

[shortylickens]

Those of you starting your taxes today:

What the hell is wrong with you?

 

[jaedaliu]

Those of you starting your taxes today:

What the hell is wrong with you?

Angry much?

Maybe because it's the first time I've moved to 2 different states in the course of 1 year, with overlapping salaries from different states all the time. And it was such a big pain in the butt to figure it out by hand that i didn't want to deal with it until the last minute. (okay, I finished mine on Friday night)

You should ask your question again in a few months.