5th Annual Tax Thread - 2007

[CPA]

Originally posted by: pmoa
It says that if I commute to class if it is enhancing work I can deduct the mileage? Is it just the mileage from work to night class?

Generally, it would be the difference between the mileage it would take you to get from work to school to home less the mileage from work to home.

 

[pmoa]

Originally posted by: CPA

Originally posted by: pmoa
It says that if I commute to class if it is enhancing work I can deduct the mileage? Is it just the mileage from work to night class?

Generally, it would be the difference between the mileage it would take you to get from work to school to home less the mileage from work to home.

Great...Just make an honest estimate?

 

[EagleKeeper]

Originally posted by: pmoa

Originally posted by: CPA

Originally posted by: pmoa
It says that if I commute to class if it is enhancing work I can deduct the mileage? Is it just the mileage from work to night class?

Generally, it would be the difference between the mileage it would take you to get from work to school to home less the mileage from work to home.

Great...Just make an honest estimate?

Record your odometer readings and perform the calculations.

If you no longer are making the trip, use a mapping program to determine the distances.

 

[amdforever2]

I never sent the form 8453-OL just out of forgetfulness, will they really force me to paper file this year?

Is attempting to e-file a waste of time?

 

[Jadow]

Well, after doing a rough review of what my taxes will look like in 2007 and forecasting for 2008, the RothIRA is starting to look a lot less appealing than a traditional IRA! Decision time is looming! I guess that's a good problem to have!

 

[CPA]

Originally posted by: amdforever2
I never sent the form 8453-OL just out of forgetfulness, will they really force me to paper file this year?

Is attempting to e-file a waste of time?

If you do it with a tax software program, 8453-ol is automatically done for you. The software program should ask you whether you want a direct deposit or not. If so, then you provide your bank account info. You don't have to file the 8453-ol seperately. If you owe, then unless you want the IRS to take the money directly out of your account, you can ignore this form.

 

[OrganizedChaos]

Stupid question: I got my first 1099-INT this year, do I need to include a copy with my tax return?

 

[CPA]

Originally posted by: OrganizedChaos
Stupid question: I got my first 1099-INT this year, do I need to include a copy with my tax return?

No.

 

[Prfstrkr]

I am ineligible to get income tax reduction by contributing to a traditional IRA. What other options do I have? Thanks

 

[TruePaige]

Do any of you go to HR Block? How much does it cost to have my taxes done by a professional? It was recommended to me because I have moved, and have jobs from 2 different states sending W2's...

 

[Miramonti]

Question: Does a daughter who turned 18 in 2007, went to HS 1/2 of 2007, and lived at home throughout the year, and made about $2k during the course of the year, qualify as a dependent?

 

[Xcobra]

Originally posted by: jjsole
Question: Does a daughter who turned 18 in 2007, went to HS 1/2 of 2007, and lived at home throughout the year, and made about $2k during the course of the year, qualify as a dependent?

i would think...as long as at least half of the support was provided to her....

 

[compguy786]

Hey Guys,
This is my first year of doing my W-2 returns or w/e, I have no clue how to even do them.
I got these three things from work for my W-2, and it says i can e-file them on the IRS website. So, What is the way to do it online ?
i have no clue...thanks !

 

[chuckywang]

Hey, I have a question regarding reporting of interest in a savings account. My mom and I have a joint savings account that accrues a significant amount of interest. Under whose name should we use to report it for tax purposes?

 

[Miramonti]

Originally posted by: Xcobra

Originally posted by: jjsole
Question: Does a daughter who turned 18 in 2007, went to HS 1/2 of 2007, and lived at home throughout the year, and made about $2k during the course of the year, qualify as a dependent?

i would think...as long as at least half of the support was provided to her....

Thanks.

 

[Xcobra]

Originally posted by: chuckywang
Hey, I have a question regarding reporting of interest in a savings account. My mom and I have a joint savings account that accrues a significant amount of interest. Under whose name should we use to report it for tax purposes?

This might help you out!

 

[chuckywang]

Originally posted by: Xcobra

Originally posted by: chuckywang
Hey, I have a question regarding reporting of interest in a savings account. My mom and I have a joint savings account that accrues a significant amount of interest. Under whose name should we use to report it for tax purposes?

This might help you out!

Thanks, found this for those who don't want to do the legwork:

You and your sister have a joint savings account that paid $1,500 interest for 2006. Your sister deposited 30% of the funds in this account, and you and she have agreed to share the yearly interest income in proportion to the amount that each of you has invested. Because your social security number was given to the bank, you received a Form 1099-INT for 2006 that includes the interest income earned belonging to your sister. This amount is $450, or 30% of the total interest of $1,500.

You must give your sister a Form 1099-INT by January 31, 2007, showing $450 of interest income that she earned for 2006. You must also send a copy of the nominee Form 1099-INT, along with Form 1096, to the Internal Revenue Service Center by February 28, 2007 (April 2, 2007, if you file Form 1099-INT electronically). Show your own name, address, and social security number as that of the ?Payer? on the Form 1099-INT. Show your sister's name, address, and social security number in the blocks provided for identification of the ?Recipient.?

When you prepare your own federal income tax return, report the total amount of interest income, $1,500, on Schedule 1 (Form 1040A), Part I, line 1, or Schedule B (Form 1040), Part I, line 1, and identify the name of the bank that paid this interest. Show the amount belonging to your sister, $450, as a subtraction from a subtotal of all interest on Schedule 1 (or Schedule B) and identify this subtraction as a ?Nominee Distribution.? (Your sister will report the $450 of interest income on her own tax return, if she has to file a return, and identify you as the payer of that amount.)

So basically the answer is "it's up to the joint account holders how they want to split the amount."

 

[EagleKeeper]

Originally posted by: TruePaige
Do any of you go to HR Block? How much does it cost to have my taxes done by a professional? It was recommended to me because I have moved, and have jobs from 2 different states sending W2's...

Standard rule for the Tax shafters is $60 + $40-100 per state depending on the complexity.

Tax S/W does not always play well across states unless one is a non-income tax state.

Recommendation would be that you use Tax S/w for the Fed and then manually follow the instructions for each state from the instructions.

 

[EagleKeeper]

Originally posted by: chuckywang
Hey, I have a question regarding reporting of interest in a savings account. My mom and I have a joint savings account that accrues a significant amount of interest. Under whose name should we use to report it for tax purposes?

If there is are joint SS#s on the account, then each of you must declare your share of the interest.

 

[minendo]

Back in 2006 I left my job to move to another company. At this time I rolled over my 401k into a Vanguard Rollover IRA. During the 2007 year I maxed out my contributions to the IRA, but also withdrew a hefty amount in order to payoff some debt. I have a 1099-R that shows the amount I withdrew and the amount of Federal Tax I paid, but I am interested to know how this will be figured into my overall taxes (federal and state) and if I will incur any penalties?

 

[jds2006]

I heard from a friend that you'll get back most of the money that was withheld from your paychecks if you're low income. But I made around $200 in 2006 yet I only got back $7 in tax returns so I'm not very sure if that statement is true.

So is there any way I can estimate how much I'll get back from tax returns? Are there any formulas for this? I'm a first year college student and made about $8000-8500 in 2007.

 

[ElFenix]

Originally posted by: jds2006
I heard from a friend that you'll get back most of the money that was withheld from your paychecks if you're low income. But I made around $200 in 2006 yet I only got back $7 in tax returns so I'm not very sure if that statement is true.

So is there any way I can estimate how much I'll get back from tax returns? Are there any formulas for this? I'm a first year college student and made about $8000-8500 in 2007.

your 1040 will have all of about 6 values filled in. just go ahead and fill out the 1040 and see (assuming you have all the paperwork from your job already)

 

[jds2006]

thanks.

also, how long does it take for you to get your tax returns once you file them?

 

[EagleKeeper]

Originally posted by: jds2006
thanks.

also, how long does it take for you to get your tax returns once you file them?

Depending on when you fiel and method - anywhere from 2-3 weeks (efile - Jan) to 2 months (peper - April)

Funds that are SS related will not come back as a refund

 

[cKGunslinger]

Originally posted by: EagleKeeper
The minimum income threashold where Federal Income Taxes apply is usually around 8K.

Above that some tax woiuld be due. However, the income level above 8K could be reduced by certain credits.

If you are due a refund, you do not have to file. Uncle has no problem with free money, just like you have none.

Here's a Q:

Me, wife, 2 kids, mortgage, student loans, itemized > standard deductions. After all is said and done, I think my taxable income gets reduced down to ~$45k

We always filed jointly. This year, she will have earned ~$5K in income, but will have paid no taxes whatsoever on it. I'm not sure if she's even getting a W2.

Since I have all our other tax info loaded up in TT-Online, it's showing a ~$1500 rebate. When we tack on her estimated earnings, that drops to about $700 refund.

Would there be any other method of filing to get rid of that drop? File separately, giving me all the deductions? Anything like that? I didn't see an option in TurboTax to model that kind of "what if" scenario..