4th Annual Tax Thread - 2006

[austin316]

Question on entering in W-2 Information in TurboTax and Long Distance Excise Tax.

1. I've had Verizon Wireless and T-Mobile phones in the past, so am I eligible for the Excise tax?

2. When I'm entering in my W-2s, I was employed by the same company all year, but I have to file in 4 states. Do I just enter in my Federal W-2 (which is what I've done and it shows my salary as correct) or do I also enter in the w-2 for each state at this point?

 

[ViviTheMage]

sorry to bug you again eagle, but do you know if TaxCut_2006_Federal will allow me to file my federal and state taxes?

also, since I was using my car for contract work can I even deduct insurance?

another school question, can I deduct the books I purchased for school?

Also, for future reference, can I ever deduct rent ?

 

[EagleKeeper]

Originally posted by: Raduque
eagle keeper, firstly, many thanks for this thread. Year after year you dispense advice at no cost to us and hopefully, you know ATOT as a whole, greatly appreciates it.

Now that the asskissery is done, on to my question! I received two W2's for 2006, one from the first part of the year from my job in WV(Aerotek), and a second one from my job from the later part of the year after I moved back home to Tx(APAC). I've already filed those two W2s online with H&R Block, and it's been processed and accepted and I'm awaiting the directdeposit. I have just received in the mail a 3rd W2 - an unexpected one from Aerotek. This W2 has a much larger amount on it then the first W2 I got from Aerotek.

What I'm wondering is, can I file again with this W2, or am I basically out of luck because I didn't wait for this W2, which I didn't even expect in the first place?

If it makes any difference, the company changed their name partway through the first quarter of 06, so the first W2 I received from them had the new name/emp ID, and the one I just received has the old name/emp ID.

Verify from the company that it is two W2s from them or is the second a replacement for the first..

Hopefully, because you moved from WV to TX you also filed a 3903.

Then either way, you will need to file a 1040X to account for the additional income and relevant taxes.

 

[EagleKeeper]

Originally posted by: austin316
Question on entering in W-2 Information in TurboTax and Long Distance Excise Tax.

1. I've had Verizon Wireless and T-Mobile phones in the past, so am I eligible for the Excise tax?

2. When I'm entering in my W-2s, I was employed by the same company all year, but I have to file in 4 states. Do I just enter in my Federal W-2 (which is what I've done and it shows my salary as correct) or do I also enter in the w-2 for each state at this point?

The Tax S/W asks if you had long distance with a landline. If you enter yes; you can either use the standard credit or add up the actual tax on the bill. If you answer no, then you do not get the credit.


You should have only got one W2 from the employer which would contain the Federal numbers and also numbers for each state.

Tax S/W will ask for the Federal numbers and usually later on request any state income/taxes.

Be aware that tax S/W does not like to due multiple states and if you do so will charge you the State Tax S/W for EACH state in order to file properly for the states.

Seeing how you worked in multiple states and if you moved because of work, make sure that you also file a 3903.

 

[EagleKeeper]

Originally posted by: ViviTheMage
sorry to bug you again eagle, but do you know if TaxCut_2006_Federal will allow me to file my federal and state taxes?

also, since I was using my car for contract work can I even deduct insurance?

another school question, can I deduct the books I purchased for school?

Also, for future reference, can I ever deduct rent ?

Federal means Federal. State means State.

As stated, expenses for the vehicle can be deductible for the contract work.

Books for school can not be used for the Hope/LLC credit.
They can be used on the Form 2106, unless the schooling is related to the contract work.
If related, then they can be expensed using the Schedule C.

Rent is not deductible unless the contract work requires a portion of the place you are living in. Then a percentage of the rent and utilities can become expensed.

 

[ViviTheMage]

Originally posted by: EagleKeeper

Originally posted by: ViviTheMage
sorry to bug you again eagle, but do you know if TaxCut_2006_Federal will allow me to file my federal and state taxes?

also, since I was using my car for contract work can I even deduct insurance?

another school question, can I deduct the books I purchased for school?

Also, for future reference, can I ever deduct rent ?

Federal means Federal. State means State.

As stated, expenses for the vehicle can be deductible for the contract work.

Books for school can not be used for the Hope/LLC credit.
They can be used on the Form 2106, unless the schooling is related to the contract work.
If related, then they can be expensed using the Schedule C.

Rent is not deductible unless the contract work requires a portion of the place you are living in. Then a percentage of the rent and utilities can become expensed.

perfect .

now is there a program that can handle both MN state and federal taxes?

and for these forms, 2106, 1098-t, etc , etc will turbo tax or a similar program work ?

 

[EagleKeeper]

All the big three tax S/W will handle the forms.

TurboTax may be doing a scare job in convincing people to purchase the Deluxe vs the Basic.

All allow you to get a State version that will have support for MN built in.

You can also use the links provided in the OP to attempt to get online filing.

 

[ViviTheMage]

Originally posted by: EagleKeeper
All the big three tax S/W will handle the forms.

TurboTax may be doing a scare job in convincing people to purchase the Deluxe vs the Basic.

All allow you to get a State version that will have support for MN built in.

You can also use the links provided in the OP to attempt to get online filing.

perfect perfect, thanks a bunch eagle..hopefully I wont be bugging you anymore .

I got that free one from H and R block, so I Should be good .

 

[naldo]

Can you put white out on your tax forms? I got my mom to do mine for me (I know, I know), but whatever program she used put a bunch of X's in the boxes where it lets you put your account info for direct deposit. I really dont want to get a check in the mail (ie. have it get lost, since I'm actually getting a good amount back this year), so I'm wondering if I can just white-out those X's and fill in my account info.

Thanks.

Thanks in advance.

 

[Raduque]

Originally posted by: EagleKeeper

Verify from the company that it is two W2s from them or is the second a replacement for the first..

Hopefully, because you moved from WV to TX you also filed a 3903.

Then either way, you will need to file a 1040X to account for the additional income and relevant taxes.

I'll call them Tuesday, but I'm 99% sure it's in addition to the first one they sent me; the first one has the new name they changed to, and the second one has the previous company name and employer ID.

I looked briefly into the 1040X, and as I understand it, I have to wait till I receive the first refund I filed for, before I can file the 1040X, is that correct?

Also, what's a 3903?

Edit: 3903 appears to be related, at first glance to Armed Forces moving expenses. I'm going to let my parents handle that one, as I'm not active duty, and I didn't pay any of the moving expenses out of pocket anyway.

 

[EagleKeeper]

Originally posted by: naldo
Can you put white out on your tax forms? I got my mom to do mine for me (I know, I know), but whatever program she used put a bunch of X's in the boxes where it lets you put your account info for direct deposit. I really dont want to get a check in the mail (ie. have it get lost, since I'm actually getting a good amount back this year), so I'm wondering if I can just white-out those X's and fill in my account info.

Thanks.

Thanks in advance.

You should be able to do so.

It might be better for you to copy all the info onto a clean form and keep the whiteout one as your reference copy.

 

[EagleKeeper]

Originally posted by: Raduque

Originally posted by: EagleKeeper

Verify from the company that it is two W2s from them or is the second a replacement for the first..

Hopefully, because you moved from WV to TX you also filed a 3903.

Then either way, you will need to file a 1040X to account for the additional income and relevant taxes.

I'll call them Tuesday, but I'm 99% sure it's in addition to the first one they sent me; the first one has the new name they changed to, and the second one has the previous company name and employer ID.

I looked briefly into the 1040X, and as I understand it, I have to wait till I receive the first refund I filed for, before I can file the 1040X, is that correct?

Also, what's a 3903?

Edit: 3903 appears to be related, at first glance to Armed Forces moving expenses. I'm going to let my parents handle that one, as I'm not active duty, and I didn't pay any of the moving expenses out of pocket anyway.

You can file a 1040X anytime after you have filed the original 1040.

The 3903 covers anyones moving expenses when moving to different housing location because of a job change. There is a time limit that one must be in a new job unless your are in the armed forces. Some of the time limt can cross calendar years.

 

[Raduque]

Originally posted by: EagleKeeper

You can file a 1040X anytime after you have filed the original 1040.

The 3903 covers anyones moving expenses when moving to different housing location because of a job change. There is a time limit that one must be in a new job unless your are in the armed forces. Some of the time limt can cross calendar years.

OK, well I wasn't moving due to my job, so I don't have to worry about the 3903.

Now I just need to double-check my math on the 1040x and decide to file it or not.

Thanks EagleKeeper!

 

[sswingle]

I have a question that hopefully someone can answer. A friend of mine worked for a company this year for only about a month. They havent sent a W2 yet, and when my friend called them to find out where it was, found out that the company doesnt exist anymore. What can be done in this situation?

 

[EagleKeeper]

Originally posted by: ScottSwingleComputers
I have a question that hopefully someone can answer. A friend of mine worked for a company this year for only about a month. They havent sent a W2 yet, and when my friend called them to find out where it was, found out that the company doesnt exist anymore. What can be done in this situation?

1) Contact the IRS - they can determine if any paperwork has been filed for the company.

2) File taxes on paper.
Use the last paystub to determine the income and taxes withheld.
Attach a statement that the company no longer exists and thata W2 was not received.
Attach a copy of the last paystub indicating that it is being used as a replacement for the W2

 

[beach2nd]

What are the requirements that determine whether you are able to claim all or part of any student loan interest that was paid the past year? Thanks for any assistance.

 

[EagleKeeper]

Originally posted by: beach2nd1
What are the requirements that determine whether you are able to claim all or part of any student loan interest that was paid the past year? Thanks for any assistance.

IRS FAQ - Student Loan Interest Deduction

 

[beach2nd]

Originally posted by: EagleKeeper

Originally posted by: beach2nd1
What are the requirements that determine whether you are able to claim all or part of any student loan interest that was paid the past year? Thanks for any assistance.

IRS FAQ - Student Loan Interest Deduction

Thanks!

 

[InverseOfNeo]

Two issues here:
1) I e-filed my Fed. return this past weekend. Today I receive a 1099-MISC form, which changed the total amount I am getting back by less than $75. However, I should have declared it. From what I gather, I need to file a 1040X. Do I wait until I receive my return then file it (with a check to make up the difference) or should I file the 1040X now? Also, if anyone has any experience filling out a 1040X with TaxCut please let me know. I dont think it is doing it appropriately.

2) The 1099 form I referred to I just received today. I live in So. Cal and it was mailed from Northern Cal....which should only take 2-3 days via first class mail. It is my understanding that all tax forms must be mailed out on or before Jan 31. If the form was mailed after that then am I still responsible for what is on that form? Wishful thinking, I know...but it's worth a shot.

An answer via PM would be greatly appreciated so I don't have to monitor this insanely long thread. Thank you.

 

[EagleKeeper]

Originally posted by: InverseOfNeo
Two issues here:
1) I e-filed my Fed. return this past weekend. Today I receive a 1099-MISC form, which changed the total amount I am getting back by less than $75. However, I should have declared it. From what I gather, I need to file a 1040X. Do I wait until I receive my return then file it (with a check to make up the difference) or should I file the 1040X now? Also, if anyone has any experience filling out a 1040X with TaxCut please let me know. I dont think it is doing it appropriately.

2) The 1099 form I referred to I just received today. I live in So. Cal and it was mailed from Northern Cal....which should only take 2-3 days via first class mail. It is my understanding that all tax forms must be mailed out on or before Jan 31. If the form was mailed after that then am I still responsible for what is on that form? Wishful thinking, I know...but it's worth a shot.

An answer via PM would be greatly appreciated so I don't have to monitor this insanely long thread. Thank you.

This insanley long thread would be worse if people did not read to see if the information was already posted.

Forms are supposed to be mailed out by the end of January, however, there is no penalty for not getting it done.

The other part of your answer has been posted.
I would suggest that you use the search function of your browser to look for the character pattern that matches your request.

If you noticed in the OP, PMs are very discouraged unless we initiate them and that questions that have been answered are not answered again.

 

[yuppiejr]

Great thread, thanks for taking the time to do this! I did a search and did not find this topic discussed, so here's my question:

I am married filing jointly with a combined AGI well in excess of $100,000 (this is relevant later), my spouse and I both contribute to work sponsored 401k's plus IRA's and started funding our Roth IRA's this year. In addition to making monthly contributions, I rolled about $8500 from an old 401k into my IRA, then converted the funds into my Roth IRA.

Turbo Tax flagged this as a problem since there is a limit of $100,000 AGI for doing a Roth conversion. Is there a different 'ceiling' for married couples or does the $100,000 AGI limit apply to single or joint filers equally? Would there be a tax advantage to going married/filing separately which would put me below the $100,000 Roth conversion limit - or am I better off just re characterizing the Roth to a standard IRA and continue funding each of our Roth's up to the limit with post-tax dollars?

 

[EagleKeeper]

Form 8606 - Non Deductible IRAs

Part II instructions indicate that you are SOL w/ respect to the 100K limit.

I do not have an answer for the second question.

 

[Sepen]

Last year my daughter became pregnant and was terminated from her job (that is a diff matter) So, I started paying her $100 a week to answer the phone, do some billing etc. for my in home business. She made $5200 working for me in 06. Can I provide her with a W2 although I didn't take any taxes out or will I have to 1099 her. If I do the 1099 route she will get slammed by SS.

Reason being is that the more she makes the more she gets for EIC.

thanks,,,

 

[EagleKeeper]

Originally posted by: Sepen
Last year my daughter became pregnant and was terminated from her job (that is a diff matter) So, I started paying her $100 a week to answer the phone, do some billing etc. for my in home business. She made $5200 working for me in 06. Can I provide her with a W2 although I didn't take any taxes out or will I have to 1099 her. If I do the 1099 route she will get slammed by SS.

Reason being is that the more she makes the more she gets for EIC.

thanks,,,

You will need to do the 1099 or you get slammed.

By doing the 1099, she can at least expense a lot of the income off.

Look through all the threads to help with ideas on what she could expense off via the Schedule C

 

[Shimmishim]

Silly question I'm sure but can you get a deduction for tithes? The reason I ask is because last year was the first year I had a "real" job where I paid a significant amount of money to the church.

Thanks.