3rd Annual AT Tax Time Thread

[coolred]

Married filing seperately, who should claim our son as a dependant.

This is out firts year of marriage, normally I would file jointly, but I am still waiting on a W2, and we could use the money form her return, so we are thinking of filing sperately. I am just nto sure who would benefit more from claiming our son as a dependant.

She made 16262 last year and paid in 1250 in federal tax.

I had 2 jobs last year, the one I have the W2 from I made 13410 and paid in 1088. My other job was part time for 5 months of the year, I would guess I made between 4000 and 6000 dollars there, not sure how much I paid in taxes. So assume my total income for the year to be between 17500, and 19500. So who would get more back by claiming my son.

We finsihed hers and with her claiming him she gets back 1797, without claiming him,she gets 439.

 

[EagleKeeper]

Originally posted by: aceO07
MA State Tax, Form1 question.

Line 5 is: "Mass. bank interest". Where is INGDirect located? Do I need to add the interest from INGDirect?

Did INGDirect send you a 1099-I (Interest Statement).
Look at the information on the statement for the address.

 

[EagleKeeper]

Originally posted by: coolred
Married filing seperately, who should claim our son as a dependant.

This is out firts year of marriage, normally I would file jointly, but I am still waiting on a W2, and we could use the money form her return, so we are thinking of filing sperately. I am just nto sure who would benefit more from claiming our son as a dependant.

She made 16262 last year and paid in 1250 in federal tax.

I had 2 jobs last year, the one I have the W2 from I made 13410 and paid in 1088. My other job was part time for 5 months of the year, I would guess I made between 4000 and 6000 dollars there, not sure how much I paid in taxes. So assume my total income for the year to be between 17500, and 19500. So who would get more back by claiming my son.

We finsihed hers and with her claiming him she gets back 1797, without claiming him,she gets 439.

Either parent can claim the child.
It is best to look at the numbers for each parent to see which benefits the family unit the most.

Use your last paystub from the parttime job to get an estimate for your side of the house.

Using Tax S/W (PC) you can easily check out the numbers. Create a master file for Married/joint.
Then copy that file twice - On one copy delete your income and change the filing status; do the same for her on the other copy. Then see what the number is for each of you claiming or not claiming the child.

Note that if one uses the Schedule A, the other MUST use it.

 

[aceO07]

Originally posted by: EagleKeeper

Originally posted by: aceO07
MA State Tax, Form1 question.

Line 5 is: "Mass. bank interest". Where is INGDirect located? Do I need to add the interest from INGDirect?

Did INGDirect send you a 1099-I (Interest Statement).
Look at the information on the statement for the address.

The only address on the 1099 is:
ING DIRECT
PO Box 60
St Cloud, MN 56301-9608

So, I don't need to add the interest from INGDirect to my MA State taxes?

 

[FP]

Purchased a home in 2005.

We put 10% down and got an 80/10 loan.

We did not pay any points.

Is there anything I can deduct other than the interest we have paid on the two loans and the property taxes we paid?

 

[EagleKeeper]

Originally posted by: binister
Purchased a home in 2005.

We put 10% down and got an 80/10 loan.

We did not pay any points.

Is there anything I can deduct other than the interest we have paid on the two loans and the property taxes we paid?

Review your closing statement for items identified as government fees and anything that has the word tax in it.

This has already been addressed previously within the this

 

[EagleKeeper]

Originally posted by: aceO07

Originally posted by: EagleKeeper

Originally posted by: aceO07
MA State Tax, Form1 question.

Line 5 is: "Mass. bank interest". Where is INGDirect located? Do I need to add the interest from INGDirect?

Did INGDirect send you a 1099-I (Interest Statement).
Look at the information on the statement for the address.

The only address on the 1099 is:
ING DIRECT
PO Box 60
St Cloud, MN 56301-9608

So, I don't need to add the interest from INGDirect to my MA State taxes?

You should not have to identify the interest on the relevant line item.
As previous stated; we are not able tohelp much with State taxes. CPA and myself live in non-tax states:thumbsup:

I hazard to guess; that what may happen is that Mass makes an exception for interest issued for Mass Banks (ie. interest earned by funds that are in Mass banks are not taxed; interest earned by institutions out of state are taxes). You still may have to include the interest as part of your income; just that you can not later on exclude it (as an adjustment) from taxable income.

 

[Raduque]

I know we're not supposed to ask state questions here, but this is more of a general question about state returns: Can I get in trouble if I don't file my state return? This guy I know says it's some kind of federal offense if I don't file it, and I can get hit with fees next time I file.

 

[EagleKeeper]

Originally posted by: Raduque
I know we're not supposed to ask state questions here, but this is more of a general question about state returns: Can I get in trouble if I don't file my state return? This guy I know says it's some kind of federal offense if I don't file it, and I can get hit with fees next time I file.

It would not be a Federal offense to not file the State taxes.

How your state would treat it is up to them.

Other than that, No Comment

 

[Raduque]

Originally posted by: EagleKeeper

Originally posted by: Raduque
I know we're not supposed to ask state questions here, but this is more of a general question about state returns: Can I get in trouble if I don't file my state return? This guy I know says it's some kind of federal offense if I don't file it, and I can get hit with fees next time I file.

It would not be a Federal offense to not file the State taxes.

How your state would treat it is up to them.

Other than that, No Comment

Thanks. And the F15 is my favorite military aircraft as well

 

[CPA]

Originally posted by: Maximus96

Originally posted by: Maximus96
My dad passed away in the end of Nov 2005. Prior to his passing we all decided its best to add my name and my mom?s name to the deed of the house. The house was originally purchased for about $130k 15 years ago and is worth about $450k now. I?m getting conflicting answers as to how much tax I?ll have to pay if I sell the house.

My mom spoke to a lawyer or accountant that does a weekly radio show and thru some kind of voodoo math, he told her that I?ll be looking at about $40k in tax if I sell the house for $450k because I haven?t had ownership for 2 years since my name was recently added in Nov 05. I guess he accounted for the initial purchase price of $130k that somehow split amongst the 3 of us (me, mom and dad). I am not clear on the math because I heard it second-hand thru my mom and she?s not sure herself.

My buddy is a CPA and he tells me that?s nonsense and thru something called ?involuntary transfer?, the house has to be re-assessed no later than 6 month after my dad passed away. then the taxes, if any will be calculated from the sale price and the re-assessed value.

I?d like to seek a 3rd opinion. I?m not sure if it matters that the deed has all 3 of our names, but the title is only in my Dad?s name.

Thanks so much

any info on my question?

thanks

I'm going to have to look into this. It's a little out of my league. I'll let you know what I find.

 

[pete2002]

I found a interesting topic on fatwallet: http://www.fatwallet.com/t/52/576495/
Cliffs of fw link:
If over age 19 under 25, not going to school full time, living with parents less than 31k per year and there is a qualifying child (which now includes brother/sister), the parents can opt to the the 19yr old use the child as a dependent and also claim EIC?

I went over the link to irs.gov and dont see any requirement that the 19yr old to provide the support for the child for clamining as a dependent or Earned Income Credit. It makes some sense that the 19 could claim the dependent, but is there nothing stopping the claim of the EIC? Was there something I missed? It seems like this might be a missuse of EIC or is it really all legit?

Thank you!
PS lmk if i cant post the FW link

 

[EagleKeeper]

It is a loophole and expect that the IRS/Congress will close it quickly. Since it has been published; they will be now be aware of it.

The loophole does not meet the intention of the EIC.

The IRS/Congress could come back later on this year and close it retroactively. there may not be any penalties; however, the "overpayment" will need to be returned and the EIC may not be allowed for the proper taxpayer; this may not be fair, but fairness does not come into play initially until you appeal a verdict into the tax court.


The use of the EIC for a sibling could also be used to setup a trigger for review of the taxpayer for this year, future and back years looking for fraud. Those who use one loophole are considered suspect for looking/using for others that may not be legit.

Use at your own risk.

 

[shuttleboi]

I apologise if this has been discussed already. What's the best website for tax-related questions on deductions? Specifically, I bought a house last year and want to know the rules and procedures for deductions on mortgage interest, etc. Also, deductions for tuition (started taking JC classes too).

 

[EagleKeeper]

Originally posted by: shuttleboi
I apologise if this has been discussed already. What's the best website for tax-related questions on deductions? Specifically, I bought a house last year and want to know the rules and procedures for deductions on mortgage interest, etc. Also, deductions for tuition (started taking JC classes too).

Link

 

[shuttleboi]

Originally posted by: EagleKeeper

Originally posted by: shuttleboi
I apologise if this has been discussed already. What's the best website for tax-related questions on deductions? Specifically, I bought a house last year and want to know the rules and procedures for deductions on mortgage interest, etc. Also, deductions for tuition (started taking JC classes too).

Link

are you referring to this entire thread, or the irs.gov site?

 

[EagleKeeper]

Originally posted by: shuttleboi

Originally posted by: EagleKeeper

Originally posted by: shuttleboi
I apologise if this has been discussed already. What's the best website for tax-related questions on deductions? Specifically, I bought a house last year and want to know the rules and procedures for deductions on mortgage interest, etc. Also, deductions for tuition (started taking JC classes too).

Link

are you referring to this entire thread, or the irs.gov site?

Both

 

[Red]

I used to file via telephone (telefile). That was taken away so I had to file via web site. I e-filed and received my Federal refund, but I'm not sure what to do about state. Was it automatically filed with Federal? This new e-file method has me confused.

 

[EagleKeeper]

Originally posted by: Red
I used to file via telephone (telefile). That was taken away so I had to file via web site. I e-filed and received my Federal refund, but I'm not sure what to do about state. Was it automatically filed with Federal? This new e-file method has me confused.

When you e-filed; it should have provided you with an option to do the state.

Did you pay attention; most states are e-filed along with the Federal.

What was selected?

Many sites will have the Fed free and the states $$.

You can still file the state via paper if the state does not have their own e-file system.

 

[Red]

The site only filed my federal. I'll look into my state (Kentucky) to file online.

 

[brtspears2]

Thanks for the help so far. Another question.

I own a condo, live in one room and rent the other room out. On my sched E, do I multiply the percentage of my interest paid by the amount of rental property (interest*rental use percent) and then what is left, I put that on my sched A as my mortgage interest deduction?

Now for real estate taxes, how should I figure out my taxes? I got the condo 11/2004. I know I pay $xxx a month to an escrow for taxes. Should I use this figure? Same goes for rental expenses, how do I account for property tax in rental expenses, same situation as above.

Also I graduated in March 2005, and I paid fees on tuition for my last quarter (Jan-mid March 2005) in December 2004. A 1098T was not issued. Can I still claim what I paid for education in 2005, though the payment posted in 2004 (only because the school required it.)

 

[jsoles]

Quick question. I am using TaxCut and due to a fire I lost all my 2004 tax information. To sign electronically I need to get the previous years Adjusted Gross. How can I go about getting that info from the IRS? Or do I have another option?

 

[EagleKeeper]

Originally posted by: jsoles
Quick question. I am using TaxCut and due to a fire I lost all my 2004 tax information. To sign electronically I need to get the previous years Adjusted Gross. How can I go about getting that info from the IRS? Or do I have another option?

Call the IRS toll free number;

They will send you in 5-7 days, a summary of the 1040 for a given year for free.
A full copy of the 1040 form submitted will cost $$.

 

[EagleKeeper]

Originally posted by: brtspears2
Thanks for the help so far. Another question.

I own a condo, live in one room and rent the other room out. On my sched E, do I multiply the percentage of my interest paid by the amount of rental property (interest*rental use percent) and then what is left, I put that on my sched A as my mortgage interest deduction?

Now for real estate taxes, how should I figure out my taxes? I got the condo 11/2004. I know I pay $xxx a month to an escrow for taxes. Should I use this figure? Same goes for rental expenses, how do I account for property tax in rental expenses, same situation as above.

Also I graduated in March 2005, and I paid fees on tuition for my last quarter (Jan-mid March 2005) in December 2004. A 1098T was not issued. Can I still claim what I paid for education in 2005, though the payment posted in 2004 (only because the school required it.)

The IRS will allow you to cross calendar years for the prposes of payment posting for a given school semester.

w/ regards to rental expense. proportional costs (in your case # bedrooms) for taxes and interest should be split between the Schedule A & C.

50% of all other costs for the unit can go on the Schedule E as expenses (utilities, maintenance, fees, etc.)

 

[Maximus96]

Originally posted by: CPA

Originally posted by: Maximus96

Originally posted by: Maximus96
My dad passed away in the end of Nov 2005. Prior to his passing we all decided its best to add my name and my mom?s name to the deed of the house. The house was originally purchased for about $130k 15 years ago and is worth about $450k now. I?m getting conflicting answers as to how much tax I?ll have to pay if I sell the house.

My mom spoke to a lawyer or accountant that does a weekly radio show and thru some kind of voodoo math, he told her that I?ll be looking at about $40k in tax if I sell the house for $450k because I haven?t had ownership for 2 years since my name was recently added in Nov 05. I guess he accounted for the initial purchase price of $130k that somehow split amongst the 3 of us (me, mom and dad). I am not clear on the math because I heard it second-hand thru my mom and she?s not sure herself.

My buddy is a CPA and he tells me that?s nonsense and thru something called ?involuntary transfer?, the house has to be re-assessed no later than 6 month after my dad passed away. then the taxes, if any will be calculated from the sale price and the re-assessed value.

I?d like to seek a 3rd opinion. I?m not sure if it matters that the deed has all 3 of our names, but the title is only in my Dad?s name.

Thanks so much

any info on my question?

thanks

I'm going to have to look into this. It's a little out of my league. I'll let you know what I find.

thank you sir.