5th Annual Tax Thread - 2007

[I4AT]

Anybody know if it's possible to print my HSBC 1099-INT online? Or will they only mail me a physical form? I just browsed the site briefly, but couldn't find anything.

 

[EagleKeeper]

Originally posted by: I4AT
Anybody know if it's possible to print my HSBC 1099-INT online? Or will they only mail me a physical form? I just browsed the site briefly, but couldn't find anything.

You do not need to mail in that form. It is for your use to obtain the numbers needed for the Federal Schedule B

 

[Squisher]

In a dispute between two parents that claim a child as a dependent, what does the IRS use as a means to determine who can claim the child as a dependent?

My daughter had a child this year with a guy who has claimed the child as a dependent. The child at no time lived with the father. Although, my daughter spent nights over the father's house it comprised of no more than 20% of the time and I provided at least 80% of the support for this child.

I have found out the father has claimed the child a dependent. This was done as retribution to my daughter and when I file my taxes and claim the child as one of my dependents I fully expect to be audited. What will the IRS use as proof of where the child resided?

The birth certificate indicates my daughter and granddaughter reside with me. The child's social security card shows my house as her residence. Besides doctor bills that I paid for I don't have much other things linking the child to me. Will this be enough?

 

[EagleKeeper]

Originally posted by: Squisher
In a dispute between two parents that claim a child as a dependent, what does the IRS use as a means to determine who can claim the child as a dependent?

My daughter had a child this year with a guy who has claimed the child as a dependent. The child at no time lived with the father. Although, my daughter spent nights over the father's house it comprised of no more than 20% of the time and I provided at least 80% of the support for this child.

I have found out the father has claimed the child a dependent. This was done as retribution to my daughter and when I file my taxes and claim the child as one of my dependents I fully expect to be audited. What will the IRS use as proof of where the child resided?

The birth certificate indicates my daughter and granddaughter reside with me. The child's social security card shows my house as her residence. Besides doctor bills that I paid for I don't have much other things linking the child to me. Will this be enough?

If you can show that you provide more than 50% of the child's support (place of residence, medical bills and an affidavit from the mother); then the IRS should be happy when they come a questioning.

As you may be aware of, any e-file will be rejected because the child's SS has already been used.

When you paper file, attached a statement (similar to above) and any documentation that you have supporting your case with your filing. That may preclude an audit based on the child.

The issue is that the father is completely within his rights to file the child, you are the one that has to justify. Your daughter may have to go to court to get a ruling to prevent the father from claiming the child as a dependent.

 

[IceBergSLiM]

long thread dont know if tis been asked but can I write off fines and lawyers fees?

 

[EagleKeeper]

Originally posted by: IcebergSlim
long thread dont know if tis been asked but can I write off fines and lawyers fees?

Lawyer fees only for investment or business expenses.

No rewards for being bad.

 

[isasir]

Hey, I have a simple question that I think I know the answer to, but figure it doesn't hurt to ask anyways.

My daughter was born on January 2, 2008. Is there anything I can do regarding this on the 2007 filing? I've already yelled at her for not coming 2 days sooner.

 

[EagleKeeper]

Originally posted by: isasir
Hey, I have a simple question that I think I know the answer to, but figure it doesn't hurt to ask anyways.

My daughter was born on January 2, 2008. Is there anything I can do regarding this on the 2007 filing? I've already yelled at her for not coming 2 days sooner.

Do not blame her - you should have started sooner. You were a slacker for 3 whole months in 2007.
Had she showed up on Jan 1, you could claim her for 2007.

 

[Rage187]

Can I deduct home improvements?

We installed Granite countertops, tile in the kitchen. And installed Hardwood floors throughout the downstairs. These were improvements not renovations as the house was less then a year old.

Total spent is $9000

 

[EagleKeeper]

Originally posted by: Rage187
Can I deduct home improvements?

We installed Granite countertops, tile in the kitchen. And installed Hardwood floors throughout the downstairs. These were improvements not renovations as the house was less then a year old.

Total spent is $9000

Unless you are renting the property and declaring the rent on the Schedule E, the improvements only add to the cost basis when you sell the house (as regards to capital gains > $500K)

 

[steppinthrax]

I got a 1099G forum indicating that I recieved $1014 in state refunds for last year. When I put that in TurboTax it lowered my refund amount. I followed the instructions of TurboTax and I believe to done it correctly. I'm kind of confused why your tax refund would be considered income. I don't quite understand???? Is this normal.

 

[EagleKeeper]

Originally posted by: steppinthrax
I got a 1099G forum indicating that I recieved $1014 in state refunds for last year. When I put that in TurboTax it lowered my refund amount. I followed the instructions of TurboTax and I believe to done it correctly. I'm kind of confused why your tax refund would be considered income. I don't quite understand???? Is this normal.

If you itemized the Federal last year, you took a deduction for State taxes paid.
And if so, you took a dedcution for more than you should have.
Therrefore, you have income from the state that needs to be declared.

If you did not itemize last year, then you do NOT need to declare the 1009-G from the state,
or
Make sure that you choose the option within the S/W that states that you did NOT itemize last year.

 

[TehJustinator]

So, I started a new job and maybe several times that I did compared to my old retail job but that's not the issue.

Basically, my tax exemptions and marital status are messed up. My first check was fine...I was single and no real exemptions. But my second one I somehow became married and had a ton of exemptions, resulting in the federal government getting no taxes from me. I contact payroll to sort it out and they say it'll get fixed...but the person helping me either quits or gets fired and so it still isn't on my next check. This means for two checks I have given the federal government $0 when they should have taken $480 or so. I'm about to head down and just fill out another exemption form to clear this up now.

I'm really worried about owing them money next year...I generally receive around $300 from the fed and wouldn't mind losing out on that...but I don't want to owe them money either. Am I worrying too much? My dad told me not to, I have the rest of the year to make it up.

I might just take the $480 and put it into a savings account and let interest build on it then if I owe them, draw from there.

 

[steppinthrax]

Originally posted by: EagleKeeper

Originally posted by: steppinthrax
I got a 1099G forum indicating that I recieved $1014 in state refunds for last year. When I put that in TurboTax it lowered my refund amount. I followed the instructions of TurboTax and I believe to done it correctly. I'm kind of confused why your tax refund would be considered income. I don't quite understand???? Is this normal.

If you itemized the Federal last year, you took a deduction for State taxes paid.
And if so, you took a dedcution for more than you should have.
Therrefore, you have income from the state that needs to be declared.

If you did not itemize last year, then you do NOT need to declare the 1009-G from the state,
or
Make sure that you choose the option within the S/W that states that you did NOT itemize last year.

That makes sense. Last year was the first time I itemized deductions. I never done it any year before then.

 

[ryan256]

Sorry if this might have been posted before. But I'm looking over my form 1040A and trying to figure out which line deals with this economic stimulus package people are talking about. Is it not on this form? Or will it automatically be added into my refund based on my filing status?

 

[Ns1]

Originally posted by: ryan256
Sorry if this might have been posted before. But I'm looking over my form 1040A and trying to figure out which line deals with this economic stimulus package people are talking about. Is it not on this form? Or will it automatically be added into my refund based on my filing status?

It will be mailed to you, there is nothing on the 1040A.

 

[Terzo]

If I'm a full time student living away from home, do I count my parents income as household income (their house is technically still my permanent address)? Or the income of the people I'm living with? Or just my own income?

 

[Ns1]

Originally posted by: Terzo
If I'm a full time student living away from home, do I count my parents income as household income (their house is technically still my permanent address)? Or the income of the people I'm living with? Or just my own income?

What is this for...

 

[Terzo]

To see if I qualify for free e-filing. I was at taxslayer and is said I must have under 25k household income to qualify.

 

[Ns1]

maybe EK will chime in here, but I don't see any requirements for less than 25k free efile?

irs site says AGI of 54k or less

Who is eligible to use Free File?

Free File is only available to taxpayers who have a 2007 Adjusted Gross Income (AGI) of $54,000 or less. Individual company offers may be limited to specific states and include other criteria. Carefully review the Free File offer criteria before selecting the company. Each participating software company sets its own eligibility requirements.

http://www.irs.gov/efile/article/0,,id=118993,00.html

http://www.irs.gov/efile/article/0,,id=118986,00.html

 

[Linflas]

This question is more for tax year 2008. We have a house that was inherited from my father and left jointly to me and my 3 brothers. The way the will was done left the house for my mothers use and when we finished the probate the way it was set up is that my brothers and I are trustees and she is in control of the trust. We are planning on selling the house this year so I would like to know if there is anything we can do to minimize the tax impact once we sell it?

 

[Raduque]

Edit: NM, I just did it online for free. Teach me to avoid the IRS website. Although, since I owed, will I receive the stimulus rebate?

 

[Tiamat]

Originally posted by: Ns1
maybe EK will chime in here, but I don't see any requirements for less than 25k free efile?

irs site says AGI of 54k or less

Who is eligible to use Free File?

Free File is only available to taxpayers who have a 2007 Adjusted Gross Income (AGI) of $54,000 or less. Individual company offers may be limited to specific states and include other criteria. Carefully review the Free File offer criteria before selecting the company. Each participating software company sets its own eligibility requirements.

http://www.irs.gov/efile/article/0,,id=118993,00.html

http://www.irs.gov/efile/article/0,,id=118986,00.html

Turbotax freedom has the lesser AGI stipulation. But it does Free State filing for many states (which is pretty rad, since it cost 28$ roughly last year to do 1 state)

Edit: Woot: Owe Feds 114$, State owes me 111$. Almost a wash

 

[EagleKeeper]

Originally posted by: Raduque
Edit: NM, I just did it online for free. Teach me to avoid the IRS website. Although, since I owed, will I receive the stimulus rebate?

See the OP of the thread

 

[EagleKeeper]

Originally posted by: Linflas
This question is more for tax year 2008. We have a house that was inherited from my father and left jointly to me and my 3 brothers. The way the will was done left the house for my mothers use and when we finished the probate the way it was set up is that my brothers and I are trustees and she is in control of the trust. We are planning on selling the house this year so I would like to know if there is anything we can do to minimize the tax impact once we sell it?

The cost basis of the house at death will be the determining factor.
Because it is left to the three of you, then when the place is sold, the capital gains will be the increased value of thehouse from that point.

There is nothing much that can be done regarding the tax impact - however, I do not think the place will jump 300-400K in value during that time. When the place is sold, each trustee wil be responsible for 1/3 of the capital gains