10th Annual Tax Thread - 2012

[s0me0nesmind1]

I believe that the banks do not need to send out a 1099 to you if the amount is less than $10.

You however, are responsible for interest reporting over $1.

Seriously? They deem that the banks aren't needed to send me a statement of interest, but they expect me to add up/calculate all the shit interest myself for retard ass 0.00000000000001% savings/checking account interest over the year?

 

[jaedaliu]

so last year, i lived in NJ & worked in NY for the first 3 months. I then moved to living/working in PA

So i need to file federal return, PA part year return, NJ part year return, and NY nonresident return? ugh!

I have a similar question. Are the tax softwares smart enough to figure out the right calculations based on my wife and my experience?

1) lived and worked in California
2) moved to Rhode Island, lived and worked there.
3) Added a job in Massachusettes, then moved to Massachusettes.

That's 3 state resident part year returns?

 

[EagleKeeper]

so last year, i lived in NJ & worked in NY for the first 3 months. I then moved to living/working in PA

So i need to file federal return, PA part year return, NJ part year return, and NY nonresident return? ugh!

I have a similar question. Are the tax softwares smart enough to figure out the right calculations based on my wife and my experience?

1) lived and worked in California
2) moved to Rhode Island, lived and worked there.
3) Added a job in Massachusettes, then moved to Massachusettes.

That's 3 state resident part year returns?

That is a state tax question, not a Federal.

Recommend that you call one of the support #s for tax S/W and ask.
Make sure you get the CSR # if they say yes and it fails. Gives you leverage to ask for a refund of the state costs.

Note: State Tax S/W costs $25-35 per state. And you need to purchase each state when you are in the above situation.

Service providers will charge you $50+ per state return.

 

[EagleKeeper]

Seriously? They deem that the banks aren't needed to send me a statement of interest, but they expect me to add up/calculate all the shit interest myself for retard ass 0.00000000000001% savings/checking account interest over the year?

There is such a thing as a End of Year bank statement.:hmm:

 

[jayzds]

There is such a thing as a End of Year bank statement.:hmm:

This^^
Another option is to track everything in Quicken or QuickBooks, reconcile and you have the numbers before the statements would arrive (◐‿&#9681

 

[Blackjack200]

They must mail it by the 31st.

Check online. Many have the tax forms online now.

Thanks, I finally got this, they must have dropped it in the mail at 23:59:59.

I know I have to amortize the purchase price of my investment property, do I also need to amortize the closing costs and other money I spent? (Attorney's fees, inspections, etc.)

 

[EagleKeeper]

Thanks, I finally got this, they must have dropped it in the mail at 23:59:59.

I know I have to amortize the purchase price of my investment property, do I also need to amortize the closing costs and other money I spent? (Attorney's fees, inspections, etc.)

Those are "consumables" and can be writen off the year that they were consumed.

 

[Centauri]

Last year was probably the first year I've made over $22k~ in claimable income yet my estimated tax refund is the worst I've seen since I was 16.

I'm single. No kids. Don't own anything. Paid on the order of $2500 in Federal. Estimated refund is $350.

Does that sound right or did I fudge finger in TurboTax somewhere?

 

[CPA]

Last year was probably the first year I've made over $22k~ in claimable income yet my estimated tax refund is the worst I've seen since I was 16.

I'm single. No kids. Don't own anything. Paid on the order of $2500 in Federal. Estimated refund is $350.

Does that sound right or did I fudge finger in TurboTax somewhere?

If your numbers are right and you didn't have any other income (earned or unearned), then yeah that looks kind of low. Just dumping those numbers in H&R Blocks estimator comes up to a little over $1k in refund. The $2500 is all in Box 2, correct?

 

[CPA]

Thanks, I finally got this, they must have dropped it in the mail at 23:59:59.

I know I have to amortize the purchase price of my investment property, do I also need to amortize the closing costs and other money I spent? (Attorney's fees, inspections, etc.)

lol, we had the same thing with one of my wife's W2's.

 

[Centauri]

I actually should have been more specific: I actually cracked 27k, I just threw out the 22k number based on past years where my refund was significantly better.

H&R is showing me $240. That's even worse than TT.

 

[techie81]

Got a 1098 late (yesterday) and now I have to amended my taxes doh!

 

[mwtgg]

so last year, i lived in NJ & worked in NY for the first 3 months. I then moved to living/working in PA

So i need to file federal return, PA part year return, NJ part year return, and NY nonresident return? ugh!

Yes.

 

[mwtgg]

Thanks, I finally got this, they must have dropped it in the mail at 23:59:59.

I know I have to amortize the purchase price of my investment property, do I also need to amortize the closing costs and other money I spent? (Attorney's fees, inspections, etc.)

This should help you out.

 

[brianmanahan]

QUESTION TAX GURUS

so i am helping a friend with turbotax, and their w2 showed 6 non-resident localities (cities he worked in, tax has already been paid to them)

turbotax wont let him efile because it says you cant efile if your w2 has more than 4 localities

if he just combines all 6 localities into a VARIOUS locality when entering in turbotax and then efiles, do you think the IRS will detect this and audit the crap out of him?

 

[hclarkjr]

my refund was direct deposited this morning, yoohooo!!

 

[EagleKeeper]

QUESTION TAX GURUS

so i am helping a friend with turbotax, and their w2 showed 6 non-resident localities (cities he worked in, tax has already been paid to them)

turbotax wont let him efile because it says you cant efile if your w2 has more than 4 localities

if he just combines all 6 localities into a VARIOUS locality when entering in turbotax and then efiles, do you think the IRS will detect this and audit the crap out of him?

IRS will not care.

The State might

 

[GWestphal]

Just filed my 2012 taxes, but I also just got an audit for my 2009 taxes. Perhaps someone can provide me a little guidance.

In 2009, Jan-July I was paid normally. From July-Dec I was paid by an NIH training fellowship which also paid my tuition (~$6400).

The audit is saying that I need to add the $6400 as nontaxable income, but my tuition benefit as a grad student is guaranteed as part of my employment. If I hadn't received this fellowship, I would still get the tuition benefit, it would just have been paid from a different account. Not sure what to do exactly...


Cliffs:
Grad Student Contract : ~20K stipend+tuition paid
2009: $12000 of stipend paid normally, $9000 from fellowship, 6400 from fellowship for tuition

Audit wants to add the 6400 as nontaxable income, which would not be the case if I had not gotten the fellowship. I received no benefit I was not already guaranteed. My advisor/university saved money, but I am left with the tax burden for it, effectively reducing my already small stipend. Essentially if they pay me with one account I pay more taxes than if they pay me with another account.

 

[dmcowen674]

my refund was direct deposited this morning, yoohooo!!

Same here, much faster than I thought.

 

[Daverino]

Here's a tax guru question regarding homes and rentals. My fiance and I both own apartments and each of them have mortgages of roughly $400,000 outstanding. Late this year, we bought an apartment together and rented our original places. The mortgage on the new apartment is about $700,000. Additionally, I have a HELOC of about $80,000, fully tapped, on the apartment I own myself.

1. Filing separately, there is a $550,000 cap on the total loan that can be used for an interest deduction. $500,000 for the mortgage and another $50,000 for the HELOC. In my fiance's case her apartment was rented the full year, so she cannot claim her place for personal use and must take her mortgage interest as a write down of rental income. On the other hand, I only rented my place for the last four months of the year. Can I choose whether to report my mortgage as an interest deduction instead of a rental income write down?

2. My fiance and I are co-owners of the apartment with the $700,000 mortgage. Obviously that is going to go over the limit for an interest deduction. Who claims the interest deduction? Can we split it? If we can split it, do we first apply the cap to determine the reportable interest and then divvy it up?

3. At no point did TaxCut ask me the absolute size of the mortgages when doing the interest deduction. If I hadn't read over the IRS publication on the topic I would never have known it existed. Is this a straight up bug/miss in the software? Or did I do something wrong in using it? Seems very odd to me that it wouldn't ask when there's an obvious cap. Unless I misunderstood the cap completely.

 

[brianmanahan]

Same here, much faster than I thought.

wait, i thought you didn't pay taxes? :awe:

 

[EagleKeeper]

Here's a tax guru question regarding homes and rentals. My fiance and I both own apartments and each of them have mortgages of roughly $400,000 outstanding. Late this year, we bought an apartment together and rented our original places. The mortgage on the new apartment is about $700,000. Additionally, I have a HELOC of about $80,000, fully tapped, on the apartment I own myself.

1. Filing separately, there is a $550,000 cap on the total loan that can be used for an interest deduction. $500,000 for the mortgage and another $50,000 for the HELOC. In my fiance's case her apartment was rented the full year, so she cannot claim her place for personal use and must take her mortgage interest as a write down of rental income. On the other hand, I only rented my place for the last four months of the year. Can I choose whether to report my mortgage as an interest deduction instead of a rental income write down?

2. My fiance and I are co-owners of the apartment with the $700,000 mortgage. Obviously that is going to go over the limit for an interest deduction. Who claims the interest deduction? Can we split it? If we can split it, do we first apply the cap to determine the reportable interest and then divvy it up?

3. At no point did TaxCut ask me the absolute size of the mortgages when doing the interest deduction. If I hadn't read over the IRS publication on the topic I would never have known it existed. Is this a straight up bug/miss in the software? Or did I do something wrong in using it? Seems very odd to me that it wouldn't ask when there's an obvious cap. Unless I misunderstood the cap completely.

First off, you are not married.

2) There the limits apply for a single person. Where you are co-owners, you can split the line items in half for each or ratio of income.

1) If your intention for the original 8 months was to rent the place and it was vacant, then the interest and all other costs are written off of the Schedule E. If, not the interest and taxes are prorated between Scheduled A & E based on occupancy.

3) Seems to be a moot point. Your share of the apartment loan is 350K. Well under the limit.

Now when you tie the knot, then panic (in multiple ways )

 

[postmark]

Why do brokerage firms have until Feb 15 to get 1099's out? Why do they get an extra 2 weeks?

 

[EagleKeeper]

Why do brokerage firms have until Feb 15 to get 1099's out? Why do they get an extra 2 weeks?

Quantity of accounts vs an employer

Second; trades take 1-2 weeks to finalize; which delays the point that they can be started in terms of paperwork processing.

A trade that is started on Dec 31 may not final until Mid January.
And many trades are done at the end of the year for tax purposes of psychological reasons.

 

[jae]

Question: If you did an Contract-2-Hire position (and were hired), would you file your earnings from the contract period 1099-MISC, then earnings during hired period W-2?