4th Annual Tax Thread - 2006

[dmw16]

How do most of you mail your returns in? When I owe money I just send it via Pony Express...however, this year Im due a big return so Im thinking of sending it priority or certified so I know they got it. Anyone do this? Any value to doing this?

 

[EagleKeeper]

Originally posted by: dmw16
How do most of you mail your returns in? When I owe money I just send it via Pony Express...however, this year I'm due a big return so I'm thinking of sending it priority or certified so I know they got it. Anyone do this? Any value to doing this?

Certified ensures that they got it. Priority will not get it there any faster.

Depending on how fast you want the $$, you could e-file it. 2-3 Fridays after filing the funds are deposited in your bank account.

 

[dmw16]

Does e-file speed up the transaction on both ends? That is to say, I know they get it faster, but it is processed faster? I guess it probably is?

 

[EagleKeeper]

Originally posted by: dmw16
Does e-file speed up the transaction on both ends? That is to say, I know they get it faster, but it is processed faster? I guess it probably is?

E-file removes the S L O W Human factor and the potential that errors can be induced.

You remove 3 days in mail, 2-3 days in paperwork inprocessing handling at the IRS end, time to enter your information.

Then the time to process the paper check when return is verified, get the check to the PO for processing, 3 days in the mail and the time for you to then get it to the bank.

Do the math.

 

[jiggahertz]

I was in grad school Fall 2005 and Winter (Jan-May) 2006 which my company paid tuition for. The amount they paid was added to my W-2's and income tax was withheld from this amount. I am wondering if I can claim the tuition credit. I also didn't receive the tax form from my university for the current tax year. I believe they included both semesters in the previous years tax document, even though tuition was paid in 2006 and taxes were withheld from me in 2006.

 

[EagleKeeper]

Originally posted by: jiggahertz
I was in grad school Fall 2005 and Winter (Jan-May) 2006 which my company paid tuition for. The amount they paid was added to my W-2's and income tax was withheld from this amount. I am wondering if I can claim the tuition credit. I also didn't receive the tax form from my university for the current tax year. I believe they included both semesters in the previous years tax document, even though tuition was paid in 2006 and taxes were withheld from me in 2006.

If the tuition was added to your W2 as taxable by your employer, then you can claim the tuition paid in 2006 under the LLC.

If you are able to use the Schedule A, then you have the option of filing it using the Form 2106.

You CAN NOT use the LLC and the Form 2106 for the same educational expense.

 

[dmw16]

Originally posted by: EagleKeeper

Originally posted by: dmw16
Does e-file speed up the transaction on both ends? That is to say, I know they get it faster, but it is processed faster? I guess it probably is?

E-file removes the S L O W Human factor and the potential that errors can be induced.

You remove 3 days in mail, 2-3 days in paperwork inprocessing handling at the IRS end, time to enter your information.

Then the time to process the paper check when return is verified, get the check to the PO for processing, 3 days in the mail and the time for you to then get it to the bank.

Do the math.

Maybe I'll pony up the $15 for e-file on my federal and just send my return that i owe money for via pack mule.

 

[MikeyIs4Dcats]

I was married in May 2006.

In 2006 I received a state refund, and so did my wife.
In 2006 I itemized, my wife did not.
I received a 1099-G for my refund, my wife did not.

For 2007 if we file jointly, do we need to claim BOTH refunds, or just mine?

 

[EagleKeeper]

Originally posted by: MikeyIs4Dcats
I was married in May 2006.

In 2006 I received a state refund, and so did my wife.
In 2006 I itemized, my wife did not.
I received a 1099-G for my refund, my wife did not.

For 2007 if we file jointly, do we need to claim BOTH refunds, or just mine?

Just yours

If you do not e-file, it might be useful to attached a note explaining as such.
If you do e-file, attach same note to your copy of the return just in case.

 

[EagleKeeper]

Originally posted by: brtspears2
Turbo Tax says "In California, you can deduct the vehicle license fee (VLF) portion of your registration fee. This amount is on your registration renewal notice."

If I purchased a new car in 2006, do I get to deduct what I paid at the time of purchase for registration?

If the fee is identified, you can.

Note that you must be using the Schedule A.

You also have the option instead of claiming your state income tax withholding, you can claim the sales tax deduction.

You can not have both.

 

[MikeyIs4Dcats]

Originally posted by: EagleKeeper

Originally posted by: MikeyIs4Dcats
I was married in May 2006.

In 2006 I received a state refund, and so did my wife.
In 2006 I itemized, my wife did not.
I received a 1099-G for my refund, my wife did not.

For 2007 if we file jointly, do we need to claim BOTH refunds, or just mine?

Just yours

If you do not e-file, it might be useful to attached a note explaining as such.
If you do e-file, attach same note to your copy of the return just in case.

Thats what I figured....thanks!

 

[grooveman]

I'm (still) in the process of getting a small sole proprietorship going. The annual taxes are less than $1,000, so (as far as I can tell) quarterly taxes are not due... just have to pay the lump sum yearly until it's anticipated yearly taxes will be over $1000.

I'm filling out a W-9 that was received for a small amount of contract work, and I'm trying to figure out what to do with the 'Exempt from backup withholding' checkbox. According to the W-9 paperwork, it looks like I'm not exempt and should not check it. Elsewhere, however, it seems like I may be exempt and would pay the taxes when I file my return.

I've managed to get myself very confused. If anyone might be able to shed some light on the situation, I would be very, very thankful.

 

[EagleKeeper]

I have always checked exempt from withholding.
Otherwise the client has to go through hoops and you could get reclassified as an employee.

 

[grooveman]

Excellent!

Thank you, EagleKeeper!

 

[msi1337]

here is an easy one for you.

I will be e-filing with turbotax soon. I seem to have lost the printout of my 2005 1040... so I have no idea what my AGI is to "electronically sign" this years return... is there any way for me to calculate the AGI myself? I had only (1) W2 last year and one 1098-T

I was wondering if I input the data into this years turbotax if it would recalculate the same AGI.

also.. I know I can submit form 4506-t to request this info, but I wanted to see if I could figure it out first..thought on this?

 

[animalia]

I've been getting paychecks at my employer based on a w-4 that don't remember what I put on it. there is considerable taxes taken out ( about 150 in federal and 65 in state) my gross pay is about 740 every two weeks, which I guess is okay for a part time student like myself. anyways....will about the same amount be withheld from future paychecks if I claim 1 allowance, which states I am single and have only one job...? which is true. does a higher number mean more withheld or less? sorry if it's already vbeen answered...this thread is ginormous.

 

[ViviTheMage]

I have a quick question before I file my taxes..this is the first time I have actually made any decent money and I was wondering if you guys think I will owe anything, total wages,tips, other comp. was around 14.3k and the only amount of federal that was taken out was 670$...will I end up owing as a student? (about 1200$ went towards school tuition, books) ... can I count gas, or is it to hard to prove it if I get audited?

I was using taxslayer.com and it said I would end up owing 365$.... (without the tuition, books deducted because I don't know how to do that).

Any thoughts appreciated!

 

[IronWing]

Originally posted by: ViviTheMage
I have a quick question before I file my taxes..this is the first time I have actually made any decent money and I was wondering if you guys think I will owe anything, total wages,tips, other comp. was around 14.3k and the only amount of federal that was taken out was 670$...will I end up owing as a student? (about 1200$ went towards school tuition, books) ... can I count gas, or is it to hard to prove it if I get audited?

I was using taxslayer.com and it said I would end up owing 365$.... (without the tuition, books deducted because I don't know how to do that).

Any thoughts appreciated!

Are you listed as a dependant on your parents' tax filing? If so, I can't help you. If not then the maximum you should be paying (standard deduction, ez form, telphone rebate) is $528 so you should be getting $142 back, ignoring any special student stuff.

 

[ViviTheMage]

Originally posted by: ironwing

Originally posted by: ViviTheMage
I have a quick question before I file my taxes..this is the first time I have actually made any decent money and I was wondering if you guys think I will owe anything, total wages,tips, other comp. was around 14.3k and the only amount of federal that was taken out was 670$...will I end up owing as a student? (about 1200$ went towards school tuition, books) ... can I count gas, or is it to hard to prove it if I get audited?

I was using taxslayer.com and it said I would end up owing 365$.... (without the tuition, books deducted because I don't know how to do that).

Any thoughts appreciated!

Are you listed as a dependant on your parents' tax filing? If so, I can't help you. If not then the maximum you should be paying (standard deduction, ez form, telphone rebate) is $528 so you should be getting $142 back, ignoring any special student stuff.

I am not sure, I do live here...but I am never around, I pay for all of my own stuff, school, car, etc.

what is the standard deduction and telephone rebate?

how can I put in that I paid for some tuition...I couldnt find a spot for that.

edit : I was a full time student last year but I only made around 7000. I still have my 2005 form 1098-t form that says 'payments received for qualified tuition & related expenses)' , can I use this for 2006, because I did not use it in 2005?

Also, will I get one of these again ? (same school...). Also, does this include what I have paid out of opcket or are these other expenses? and what is the difference between Hope and Lifetime Learning ? Which should I choose?

 

[AmigaMan]

Just want to first say thanks to all those who are helping here.

Now on to my questions...my wife went back to school last year to finish her degree at UNC. It's been several years since she's been in school (since 1999). Do I claim the tuition deduction or do I claim the lifetime learning credit or can I do both? If I can't do both, which one should I use? We paid around $5000 in tuition and fees out of our own pockets and I'm pretty sure our MAGI will be under $107K.

 

[Dangerer]

Hi, can someone help me with this situation?

Basically i'm 20 years old now and started working in mid 2005 when I was 18. My mom paid some tax lady to file my taxes last year. She charged a pretty sizeable fee and filed me as an independent and I received a tax return of $1500 which was basically everything but the social security tax. Now the problem is she charges so much, if I were to file taxes myself this year instead of having her do it, would I be able to get the same amount back? I made the same this year as I did last year.

 

[abc]

heard this today from a family friend and i dont think the scenario is true:

his sister claims both her mom and dad as dependents on her tax, filing as head of household etc...

but because of this tax situation, if either parent spends time in say the hospital and incurrs burdening med bills, if the parents cannot pay, the sister is pursued by the hospital, but govt programs like medicaid/care....

this tax filing set up leads for that?


this is like saying whose names are on the house title if the mortgage payments come late.

 

[abc]

Originally posted by: Dangerer
Hi, can someone help me with this situation?

Basically i'm 20 years old now and started working in mid 2005 when I was 18. My mom paid some tax lady to file my taxes last year. She charged a pretty sizeable fee and filed me as an independent and I received a tax return of $1500 which was basically everything but the social security tax. Now the problem is she charges so much, if I were to file taxes myself this year instead of having her do it, would I be able to get the same amount back? I made the same this year as I did last year.

you can do this yourselfmost likely... you may not even need turbo tax.

 

[Homerboy]

Is there a way I can find out my last year's Adjusted Gross Income? For the love of me I can not find my 2005 statements, I have everything back to 1995 and not 2005. UGGGH. I need this to file electronically.

Thanks in advance.

 

[BaNzaiDags]

Question:
On my 1098 form i recevied for my equity line of credit. says box 1: Mortgage Interst $X,XXX.XX.
And right below it shows: Total Interest / Points Paid with the same number.

Does this mean only had interest and did not pay any points for this loan?