10th Annual Tax Thread - 2012

[CPA]

Why is turbotax asking me about energy credits? I thought they got rid of those in 2012? I put a new front door/sidelights in during 2012 and turbotax is telling me I get a $200 credit (since it cost $2000). Is this right?

good question. Most of the energy credits went away at the end of 2011. Are you sure you have the latest version of the software?

I need to check my taxact software when I get home.

 

[CPA]

My wife and I bought a house this year, so it will be our first year itemizing deductions. We shouldn't have anything overly complicated due to not having tons of stuff to deduct. My question has to do with state taxes in regards to itemizing deductions on the federal return.

Am I correct in understanding that since we will be itemizing the first time for tax year 2012, that I will be able to deduct state taxes paid in tax year 2012, without reporting the state refund received relevant to tax year 2011? Then next year, because we itemized relevant to tax year 2012, we would have to report both state taxes paid in 2013 as well as any refund received relevant to 2012?

Makes sense in my head, hopefully it gets the point across...

Also, looks like the PMI deduction expired?

Thanks in advance!

You may need to include your state refund on line 10, if you are itemizing. You have to calculate the taxable portion of your refund on worksheet in the 1040 instructions. However, most software will do this for you. So, if you are itemizing for 2012 and include your state income tax withheld (gross, don't net your refund), you may have to include your refund received in 2012 (for 2011 tax year) on line 10 of your 1040.

 

[CPA]

I received a 1099g form stating with a dollar amount in one box that states: State Taxes, Refunds or Credits, but in another box it has for year 2011. Looking at the CA state site, a 1099g form is if you've taken SDI, Unemployment, Paid Family Leave. I took PFL in the summer of 2010, other than that, I have not done any type of SDI or UIB. How will this effect my taxes?

A 1099G is used to show your stated income tax refund as well. did you receive a refund? what box was the amount in?

 

[bignateyk]

good question. Most of the energy credits went away at the end of 2011. Are you sure you have the latest version of the software?

I need to check my taxact software when I get home.

Hmm.. i went and looked at 2012 form 5695: http://www.irs.gov/pub/irs-pdf/f5695.pdf

Line 21b seems to indicate that the exterior door credit is still there, so maybe turbotax is right. I'm using TurboTax 2012 Home&Business.

 

[EagleKeeper]

Why is turbotax asking me about energy credits? I thought they got rid of those in 2012? I put a new front door/sidelights in during 2012 and turbotax is telling me I get a $200 credit (since it cost $2000). Is this right?

Update info 1/7/2013

Still available after the cliff :thumbsup:

 

[EagleKeeper]

A 1099G is used to show your stated income tax refund as well. did you receive a refund? what box was the amount in?

1099G is used for any government payments to you unless it is for actual services.

 

[thestrangebrew1]

A 1099G is used to show your stated income tax refund as well. did you receive a refund? what box was the amount in?

I did receive a refund last year from the state, can't remember how much exactly. I'll have to take a look at the form when I get home and post back.

 

[EagleKeeper]

Hmm.. i went and looked at 2012 form 5695: http://www.irs.gov/pub/irs-pdf/f5695.pdf

Line 21b seems to indicate that the exterior door credit is still there, so maybe turbotax is right. I'm using TurboTax 2012 Home&Business.

The credit was extended.

I hope you enjoyed paying extra for the Home & Business S/W

 

[bignateyk]

The credit was extended.

I hope you enjoyed paying extra for the Home & Business S/W

This is the first year I've used software to do my taxes and I have a home office/1099 income, so I wasn't sure if I needed that version or not. Could I have used the normal version?

 

[EagleKeeper]

This is the first year I've used software to do my taxes and I have a home office/1099 income, so I wasn't sure if I needed that version or not. Could I have used the normal version?

Link - to Post

 

[thestrangebrew1]

A 1099G is used to show your stated income tax refund as well. did you receive a refund? what box was the amount in?

The amount was in box 2 of the 1099g. Box 3 has the tax year which was 2011.

 

[CPA]

1099G is used for any government payments to you unless it is for actual services.

Right, but the post was worded as if it may be state tax related, hence asking for the box information.

 

[CPA]

Hmm.. i went and looked at 2012 form 5695: http://www.irs.gov/pub/irs-pdf/f5695.pdf

Line 21b seems to indicate that the exterior door credit is still there, so maybe turbotax is right. I'm using TurboTax 2012 Home&Business.

Yep, just confirmed with EagleKeeper and TaxAct that they credits were extended. Interestingly, it has been low key.

 

[CPA]

The amount was in box 2 of the 1099g. Box 3 has the tax year which was 2011.

Then it should be your state tax refund. If it was your PFL, then it would have been in box 1 with PFL next to it.

Even though you took PFL, I'm guessing you did it through a company-sponsored volunteer plan, otherwise I would have expected the PFL to be in box 1. If done through a company volunteer plan, then the PFL would be part of your W2 wages. Do you have your W2 yet? If so, is anything listed in box 14?

 

[Xonim]

Looks like the private mortgage insurance deduction was also extended as part of the fiscal cliff deal. Wasn't sure when it was showing up in tax act, but it's in the instructions.

Wasn't shown on my 1098 from my mortgage holder though. Then again, the 1098 was dated 1/2, at which point details of the deal weren't really known. Just went back through my payments and looked at the premiums for each month.

Did not have to report the state tax refund relevant to tax year 2011 as I had guessed. Said right during the thing that it was only if you itemized relevant to 2011.

All done!

 

[Hmongkeysauce]

Question. I'm using form 1040. I'm single and I had a younger brother who lived with me for the entire year of 2012. I provided 100% of support for him and he was 23 at the end of 2012. He was a full time student between part of Feb to part of June in 2012. He found a job later in that year and his income for 2012 is greater than $3800 but less than $6000. Can I claim Head of Household and claim him as a dependent and have him not file his own tax return? Or does he have to file his own tax return regardless of my filing status? TIA.

-hmongkeysauce

EDIT: IRS definition for full time status is somewhat unclear to me. They say any part of 5 months. I'm not sure if that means from Feb 1 to June 30 which would be a full 5 months or not. TIA.

 

[FallenHero]

So the wife and I bought a house this year. In terms of origination fees (which I understand to be tax deductible) it reads like this:

Our Origination Charge : 5509.24
Your credit and charge (points): (7542.84)
Your adjusted origination charges: (2033.60)

What exactly is tax deductible in this instance? Or is it a difference in the amount we paid to close?

 

[Reasonable Doubt]

Am I reading this right? I may not have to pay captial gain taxes if I'm in the 10% or 15% bracket? TIPRA: http://homeguides.sfgate.com/pay-capital-gains-taxes-3285.html


I bought stock back in 2008 sold in 2012. Profited 6 figures. Without the captial gain my taxable income is in the 15% bracket. (I'm not counting VA benefits because it's not taxable). So does that mean I don't have to pay tax on my capital gains from the stock.

 

[thestrangebrew1]

Then it should be your state tax refund. If it was your PFL, then it would have been in box 1 with PFL next to it.

Even though you took PFL, I'm guessing you did it through a company-sponsored volunteer plan, otherwise I would have expected the PFL to be in box 1. If done through a company volunteer plan, then the PFL would be part of your W2 wages. Do you have your W2 yet? If so, is anything listed in box 14?

I won't have my w2 till next wk sometime. I'll post back again

 

[CPA]

Am I reading this right? I may not have to pay captial gain taxes if I'm in the 10% or 15% bracket? TIPRA: http://homeguides.sfgate.com/pay-capital-gains-taxes-3285.html


I bought stock back in 2008 sold in 2012. Profited 6 figures. Without the captial gain my taxable income is in the 15% bracket. (I'm not counting VA benefits because it's not taxable). So does that mean I don't have to pay tax on my capital gains from the stock.

Sorry dude, you have to include the capital gains in calculating taxable income. Some portion of the gains will be exempt, but most of it will be taxable at the 15% rate. I know it the wording of TIPRA is confusing, but you will find that by "ordinary income", they are talking about "total income", which is line 22 on the 1040 and includes capital gains.

What TIPRA was trying to do, was not tax any capital gains for folks who had total income under the 10 and 15% brackets (including capital gains). Before that capital gains were taxed no matter what bracket you were in.

 

[edro]

Great... just found out my wife's withholdings are set to 3!!!
We don't have any kids...

We owe a metric shit ton.

 

[Blackjack200]

I still haven't received my tax forms from my mortgage lender. They must provide those by 1/31, right? What can I do if they don't?

 

[JM Aggie08]

I'm assuming that taxes paid on a new car can still be deducted?

 

[postmark]

So is PMI deductible on a loan that was refinanced in 2011? It has some restrictions about who can provide the PMI:

Qualified mortgage insurance is mortgage insurance provided by the Department of Veterans Affairs, the Federal Housing Administration, or the Rural Housing Service, and private mortgage insurance (as defined in section 2 of the Homeowners Protection Act of 1998 as in effect on December 20, 2006).

But I'm assuming that all PMI providers fall in that?

THanks for the help!

 

[mwtgg]

So the wife and I bought a house this year. In terms of origination fees (which I understand to be tax deductible) it reads like this:

Our Origination Charge : 5509.24
Your credit and charge (points): (7542.84)
Your adjusted origination charges: (2033.60)

What exactly is tax deductible in this instance? Or is it a difference in the amount we paid to close?

Points are only deductible if they're in lieu of interest, i.e. you paid $x to get a lower interest rate. In your case, nothing is deductible.