6th Annual Anandtech Tax Time Thread

[trigun500]

My brother just mailed his taxes but didn't include his W2s. Would he be ok by just mailing them in a separate envelope?

 

[EagleKeeper]

Originally posted by: trigun500
My brother just mailed his taxes but didn't include his W2s. Would he be ok by just mailing them in a separate envelope?

He should remail the complete package with a note attached on the reason for the additional mailing

 

[EagleKeeper]

Originally posted by: razor2025
I have quick question.

I used the Turbotax Online edition to do my free return and free e-file. I didn't catch that the return didn't include the Form 8880 before I hit the submit button for E-file. After the return was sent, the software actually applied Form 8880 to my return. I paid $9 for what I owe on the return without Form 8880. With the Form 8880 in calculation, I'm actually suppose to get refunded $391. Should I simply resubmit an amended return with 1040x and a Form 8880 in the mail?

I've also noticed that the return I did for 2007 with TaxCut software made the same mistake. I should be able to do a similar amended return right? Thanks for your help.

Use the 1040x for both years,

 

[SlitheryDee]

I have a question.

After my father died I took up residence in his house. I have not completed the secession necessary for the house to be in my name because the process is somewhat expensive and is complicated by the fact that my brother and sister, who are entitled to a share of his estate, are minors. I paid the insurance and property taxes on this house for the entire year of 2008. Am I able to deduct the insurance and property taxes on my personal taxes or do I lose those deductions because the house is not legally mine? Thnx.

Edit: Er I don't see a place in turbotax for homeowner's insurance. Is the insurance deductible at all?

 

[udonoogen]

hello! i bought stock through an employee stock purchase program since 2005. when the stock crept up to a high shortly after the recession started, i sold all my stock. taxact is asking the following 2 questions. as a sanity check, do i report the cost of all of the stock i bought from 2005 (not just what i paid for it from 2008)? that makes sense, since i sold it "all" in 2008.

Cost or other basis (total amount - Not a price per share):
This is generally the cost you paid for the property plus purchase commissions, recording or transfer fees, and any improvements, minus depreciation, amortization, and depletion. This information may be reported to you on form 1099-B or a consolidated tax statement.

Sales proceeds (total amount - Not a price per share):

 

[cw42]

Question: I lived in NJ and worked in NYC for 11 months, then I moved to NYC in December. I believe I need to file my NY state tax first, then claim credit for my NJ state tax. (correct?)

I'm trying to do my taxes through TaxAct, but what i'm wondering is how will I get credit for the time I lived in NJ so I don't have to pay as much NY City resident tax for the amount of days I lived there? Thanks.

 

[GTaudiophile]

So I know a married couple that files separately using a 1040NR.

One of them need to pay estimated taxes, so I am helping him figure out his est. payments.

They will be having a child in June.

How should I help them determine who should claim the child on their return? I assume, if filing separately, they both cannot claim the child?

 

[EagleKeeper]

Originally posted by: SlitheryDee
I have a question.

After my father died I took up residence in his house. I have not completed the secession necessary for the house to be in my name because the process is somewhat expensive and is complicated by the fact that my brother and sister, who are entitled to a share of his estate, are minors. I paid the insurance and property taxes on this house for the entire year of 2008. Am I able to deduct the insurance and property taxes on my personal taxes or do I lose those deductions because the house is not legally mine? Thnx.

Edit: Er I don't see a place in turbotax for homeowner's insurance. Is the insurance deductible at all?

Unless you are legally liable for the taxes, you can not deduct them.
Insurance is not deductlbe for residences unless you are renting out a portion of the residence. at that point the same portion/percentage can apply for all expenses agaisnt the property.

 

[EagleKeeper]

Originally posted by: udonoogen
hello! i bought stock through an employee stock purchase program since 2005. when the stock crept up to a high shortly after the recession started, i sold all my stock. taxact is asking the following 2 questions. as a sanity check, do i report the cost of all of the stock i bought from 2005 (not just what i paid for it from 2008)? that makes sense, since i sold it "all" in 2008.

Cost or other basis (total amount - Not a price per share):
This is generally the cost you paid for the property plus purchase commissions, recording or transfer fees, and any improvements, minus depreciation, amortization, and depletion. This information may be reported to you on form 1099-B or a consolidated tax statement.

Sales proceeds (total amount - Not a price per share):

The amount that you paid for each share is the cost basis.

You take what you sold the shares for, subtracted overheads and that becomes the taxable profit.

IF you purchased all the shares at the same time and sold them all at the same time, then your calculations are much easier.

 

[EagleKeeper]

Originally posted by: cw42
Question: I lived in NJ and worked in NYC for 11 months, then I moved to NYC in December. I believe I need to file my NY state tax first, then claim credit for my NJ state tax. (correct?)

I'm trying to do my taxes through TaxAct, but what i'm wondering is how will I get credit for the time I lived in NJ so I don't have to pay as much NY City resident tax for the amount of days I lived there? Thanks.

See OP - very very limited state tax help

 

[EagleKeeper]

Originally posted by: GTaudiophile
So I know a married couple that files separately using a 1040NR.

One of them need to pay estimated taxes, so I am helping him figure out his est. payments.

They will be having a child in June.

How should I help them determine who should claim the child on their return? I assume, if filing separately, they both cannot claim the child?

Filing separately, one one can claim the child.

Such is the quick advantage of tax SW

Create a profile for each parent and then add the child. Note the change. in tax liability Do the same to the other parent and see which change is more beneficial.

You can do this now; but it should be done at the end of the year. At that point, they will have the final numbers to best make a decision.
Note that some deductions for Married/Joint will be lost when filing Married/Sep

 

[ArmchairAthlete]

I have a question about which state I should file in (resident vs worked in). Last year, I only worked as an intern over the summer. The rest of the time, including Dec 31 2008, I lived in Georgia. I was a Georgia resident. But I assume I'd file taxes to Virginia, since they're the ones that took some tax out of my pay. Is that right?

 

[StageLeft]

Easy question this year, I think

Last fall I bought shares in a couple of companies with Scottrade as the broker. I don't recall selling them then, so no capital gains there. I did make some pathetically paltry dividends on one of the companies, though. Scottrade did not create a 1099 for me. They said online sometimes they do or don't depending on if you need one. Apparently they think I don't.

However, two weeks ago (waaaay past the Jan 31st deadline) I got correspondence direct from one of these two companies, and it included a schedule k. I don't quite know how to read the numbers or what they mean.

So my question is (ok, questions):

1) Since I received no 1099 from Scottrade, do I still need to enter stuff from this schedule K on my return? If so, it would only be the dividend, right?

2)Why were they so past the Jan 31st deadline sending it?

3) If I had 30 individual companies' shares in my account paying dividends, would I really be expected to manage 30 individual statements from each on a yearly basis? Seems unrealistic (i.e. I must be misunderstanding this).

Thanks!

 

[Veramocor]

Question on the upcoming first time home buyer tax credit for 2009 tax year. It is my understanding that it cannot be claimed if you have previously owned a home in the past three years. If you are married and one person previously owned a home then you are both considered to have owned a home for the purpose of filing jointly. My question is if you file married filing singly can the spouse who has not owned a home previously get part of the tax credit?

 

[IHateMyJob2004]

Skoorb,

Companies are only required to send the 1099-DIV if you made more than $10 in dividends. It's up to them if they send it. It's up to you to be sure that you report hte $5 gain though if you didn't get it. You basically enter $5 (or whatever) into your tax software as thoguh you did get the 1099-DIV.

 

[IHateMyJob2004]

CAPITAL GAINS WORKSHEET QUESTION

I keep all my stock information in Excel. I can easily go into Excel and add up all my gains/losses (both short and long term). Do I still have to manually enter these into a worksheet (from the gov't) or can I just print out my Excel sheet for my own record keeping to show where all teh gains/losses come from? Then jsut put the gain/losses for short and long term capital gains into the appropriate spot on my tax forms?

Please PM me if you respond to this question.

 

[CrimsonChaos]

WASH RULE : I had a question regarding this "Wash Rule".

Scenario:
Let's say I make the following transactions:
* 04-01-2008 - Buy 100 Shares of stock X @ $5.00
* 04-08-2008 - Sell 100 Shares of stock X @ $4.00
* 04-15-2008 - Buy 100 Shares of stock X @ $4.50
* 04-22-2008 - Sell 100 Shares of stock X @ $4.00

And no other purchases of stock X were made in 2008.

I know the first Sale (on 04-08-2008) cannot be deducted as a loss since I bought within a month after that.

However, I can increase the "Cost Basis" of the shares I buy on 04-15-2008 by the loss amount -- so cost basis of those 04-15-2008 stocks would be $550, correct?

Now, when I sell my shares on 04-22-2008, my total loss will be $150 ($550 cost - $400 sale). Can I claim a loss on this? Or is this also a "wash" since I bought shares on 04-01-2008?

 

[EagleKeeper]

Originally posted by: ArmchairAthlete
I have a question about which state I should file in (resident vs worked in). Last year, I only worked as an intern over the summer. The rest of the time, including Dec 31 2008, I lived in Georgia. I was a Georgia resident. But I assume I'd file taxes to Virginia, since they're the ones that took some tax out of my pay. Is that right?

As stated above, we avoid State tax questions like a plague.

You should file GA resident and VA non-resident

 

[EagleKeeper]

Originally posted by: Skoorb
Easy question this year, I think

Last fall I bought shares in a couple of companies with Scottrade as the broker. I don't recall selling them then, so no capital gains there. I did make some pathetically paltry dividends on one of the companies, though. Scottrade did not create a 1099 for me. They said online sometimes they do or don't depending on if you need one. Apparently they think I don't.

However, two weeks ago (waaaay past the Jan 31st deadline) I got correspondence direct from one of these two companies, and it included a schedule k. I don't quite know how to read the numbers or what they mean.

So my question is (ok, questions):

1) Since I received no 1099 from Scottrade, do I still need to enter stuff from this schedule K on my return? If so, it would only be the dividend, right?

2)Why were they so past the Jan 31st deadline sending it?

3) If I had 30 individual companies' shares in my account paying dividends, would I really be expected to manage 30 individual statements from each on a yearly basis? Seems unrealistic (i.e. I must be misunderstanding this).

Thanks!

1) It is the dividend that needs to be entered if you did not have any sales.

2) Ask them, not us

3) It is your responsibility to manage your accounts. The broker is doing you a service and you are paying them for it. Ultimately, the validation lies on YOUR shoulders.

A spreadsheet (you should know how they are used) should solve your complaints.

 

[EagleKeeper]

Originally posted by: Veramocor
Question on the upcoming first time home buyer tax credit for 2009 tax year. It is my understanding that it cannot be claimed if you have previously owned a home in the past three years. If you are married and one person previously owned a home then you are both considered to have owned a home for the purpose of filing jointly. My question is if you file married filing singly can the spouse who has not owned a home previously get part of the tax credit?

There is no married/single option.

The IRS only allows for a split between two unmarried buyers

 

[sohcrates]

I am in an investment club. We have 7 people. For tax purposes, it is a partnership.

Each partner files a K-1, representing the capital gains or loss for each individual (i.e. the clubs TOTAL capital gains divided by 7).

However, our tax software also generates a form 1065 which is a Return of Parnership Income that summarizes the clubs TOTAL gain / loss. Our brokerage (Schwab), sends the IRS a copy of our TOTAL gains and loss.

My question is whether one of us has to attach this entire 1065 to our individual tax returns, or whether we can all just file 7 individual K-1's and that is enough?

Thanks

 

[zoiks]

Finally paid my taxes. Owed $3011. Better than last year where I shelled out 5k.

 

[Paratus]

Need some quick help.

I'm entering into Turbo Tax the amount I expect to put into my Roth IRA later this week for 2008. It's raising my tax owed as I enter the value for my wife's Roth and my Roth. That doesn't make any sense to me as the money is post tax. Now I am in the gray area where I can't contribute the full amount.

Anyone have a clue?

Thanks

 

[CPA]

Originally posted by: Paratus
Need some quick help.

I'm entering into Turbo Tax the amount I expect to put into my Roth IRA later this week for 2008. It's raising my tax owed as I enter the value for my wife's Roth and my Roth. That doesn't make any sense to me as the money is post tax. Now I am in the gray area where I can't contribute the full amount.

Anyone have a clue?

Thanks

You might be over the income limits and are getting penalized for the over contribution.

 

[aceO07]

I'm trying to do a 1040x for 2007 since I forgot to do my IRA deduction. Unfortunately their instructions are very brief. I got to the almost end, line 22 (the new refund amount based on my corrections). However, the amount is for the full refund for the year and not the adjusted amount based on what I've already received. I need to do line 23, the refund amount. Do I need to adjust line 22 (the new refund amount) myself and put in the refund that is still due to me based on my fixes? The instructions for line 23 aren't helpful or I'm dense. "The refund amount on line 23 will be sent separately from any refund you claimed on your original return"