6th Annual Anandtech Tax Time Thread

[alkemyst]

Originally posted by: DukeFan21
This is my first time filing my own return, and I'm not sure what to do with the 1098-T. The amount billed to me for tuition was $6921 (box #2). No scholarships, grants, or adjustments. I graduated in May, and my loan repayments didn't begin until November.

Using Turbo Tax, I entered this all in the 1098-T portion. It then asks me: "Out of the $6921 that was billed to Penn State, how much was actually paid to the school (including scholarships, fellows, and grants?" I assume that ALL of this was paid to the school, by my lender. Is that correct, and I put the full $6921 amount in there?

You need to do your own accounting and not ASSUME. How was the money paid out?

 

[alkemyst]

Originally posted by: joshsquall
Question about buying a home in 2008. Which items that I paid for at closing are generally tax deductible? I'm running through Turbo Tax, and it didn't ask me for any items related to closing costs.

A few of the items:
- Mortgage Insurance Premium to HUD ($3372.38)
- Government Recording and Transfer Charges - State Tax - Deed ($575.00) and Mortgage ($570.50)

My AGI is around $78k.

Already answered I think twice now here... fees and taxes are your targets. TurboTax will ask you the relevant questions.

 

[alkemyst]

Originally posted by: rky60
Misclassification of employment?

What are you trying to accomplish? Are you trying to work under the table with Comp B, if so we aren't out here to recommend tax fraud...if not simply report whatever they paid you and whatever taxes you paid.

 

[enrineer55]

nothing here

thanks

 

[duragezic]

Does anyone have a list of general do/donts? Say what common items can be deducted? Or will the software handle all of this?

My previous years tax returns were all trivial. Not that this year is hard but it is my first real job and I believe I can deduct things like student loan interest, moving expenses, etc. The reason I mention the moving expenses is on my pay stub, I got two lines related to moving expenses, each a few thousand $, and I don't get how they factor into my yearly gross income. Adding my regular/vacation/etc pay + each moving expense line is way above what I really made. I never paid any taxes on any moving expenses; I believe the company did?

Heh, I checked out my favorite, statetaxfreedom.com, and realize for the first time in 6 years that I don't qualify for free federal and state! but actually

Also, what is the advantage to buying the tax software? People were telling me about how they buy TurboTax, when I've always used the online version.

 

[Gunslinger08]

Originally posted by: alkemyst

Originally posted by: joshsquall
Question about buying a home in 2008. Which items that I paid for at closing are generally tax deductible? I'm running through Turbo Tax, and it didn't ask me for any items related to closing costs.

A few of the items:
- Mortgage Insurance Premium to HUD ($3372.38)
- Government Recording and Transfer Charges - State Tax - Deed ($575.00) and Mortgage ($570.50)

My AGI is around $78k.

Already answered I think twice now here... fees and taxes are your targets. TurboTax will ask you the relevant questions.

From what I've read on the state and county transfer taxes, they aren't deductible (which contradicts the earlier answer here). They only add to the cost basis for your home when you sell it. Also, Turbo Tax didn't ask me about this.

Edit: It also looks like TT isn't following the tax code on the mortgage insurance deduction. According to IRS Publication 936, it's supposed to be phased out from $50k-$54.5k AGI, but Turbo Tax allows me to deduct it. Strange.

 

[alkemyst]

Originally posted by: joshsquall

Originally posted by: alkemyst

Originally posted by: joshsquall
Question about buying a home in 2008. Which items that I paid for at closing are generally tax deductible? I'm running through Turbo Tax, and it didn't ask me for any items related to closing costs.

A few of the items:
- Mortgage Insurance Premium to HUD ($3372.38)
- Government Recording and Transfer Charges - State Tax - Deed ($575.00) and Mortgage ($570.50)

My AGI is around $78k.

Already answered I think twice now here... fees and taxes are your targets. TurboTax will ask you the relevant questions.

From what I've read on the state and county transfer taxes, they aren't deductible (which contradicts the earlier answer here). They only add to the cost basis for your home when you sell it. Also, Turbo Tax didn't ask me about this.

Edit: It also looks like TT isn't following the tax code on the mortgage insurance deduction. According to IRS Publication 936, it's supposed to be phased out from $50k-$54.5k AGI, but Turbo Tax allows me to deduct it. Strange.

http://www.irs.gov/taxtopics/tc503.html

 

[DukeFan21]

Originally posted by: alkemyst

Originally posted by: DukeFan21
This is my first time filing my own return, and I'm not sure what to do with the 1098-T. The amount billed to me for tuition was $6921 (box #2). No scholarships, grants, or adjustments. I graduated in May, and my loan repayments didn't begin until November.

Using Turbo Tax, I entered this all in the 1098-T portion. It then asks me: "Out of the $6921 that was billed to Penn State, how much was actually paid to the school (including scholarships, fellows, and grants?" I assume that ALL of this was paid to the school, by my lender. Is that correct, and I put the full $6921 amount in there?

You need to do your own accounting and not ASSUME. How was the money paid out?

I looked at my Bursar Account from the school and my tuition for my last semester was indeed paid to the school via my Stafford/low-interest student loans. But what I am questioning is if I put that full amount down or do I only put down what I've paid off of those loans so far.

 

[Gunslinger08]

Originally posted by: alkemyst

Originally posted by: joshsquall

Originally posted by: alkemyst

Originally posted by: joshsquall
Question about buying a home in 2008. Which items that I paid for at closing are generally tax deductible? I'm running through Turbo Tax, and it didn't ask me for any items related to closing costs.

A few of the items:
- Mortgage Insurance Premium to HUD ($3372.38)
- Government Recording and Transfer Charges - State Tax - Deed ($575.00) and Mortgage ($570.50)

My AGI is around $78k.

Already answered I think twice now here... fees and taxes are your targets. TurboTax will ask you the relevant questions.

From what I've read on the state and county transfer taxes, they aren't deductible (which contradicts the earlier answer here). They only add to the cost basis for your home when you sell it. Also, Turbo Tax didn't ask me about this.

Edit: It also looks like TT isn't following the tax code on the mortgage insurance deduction. According to IRS Publication 936, it's supposed to be phased out from $50k-$54.5k AGI, but Turbo Tax allows me to deduct it. Strange.

http://www.irs.gov/taxtopics/tc503.html

Yeah, that confirms it.

Taxes and fees you cannot deduct on Schedule A include Federal income taxes, social security taxes, stamp taxes, or transfer taxes on the sale of property, homeowner's association fees, estate and inheritance taxes and service charges for water, sewer, or trash collection.

 

[alkemyst]

Transfer taxes are usually on the sale of a property...if you paid them for the seller you may be able to deduct it.

If you are filing "Married Filing Separately" (which is where your AGI is limited to 54.5k on PMI, $100k otherwise) then you may have other restrictions on what can be used.

 

[alkemyst]

Originally posted by: DukeFan21

Originally posted by: alkemyst

Originally posted by: DukeFan21
This is my first time filing my own return, and I'm not sure what to do with the 1098-T. The amount billed to me for tuition was $6921 (box #2). No scholarships, grants, or adjustments. I graduated in May, and my loan repayments didn't begin until November.

Using Turbo Tax, I entered this all in the 1098-T portion. It then asks me: "Out of the $6921 that was billed to Penn State, how much was actually paid to the school (including scholarships, fellows, and grants?" I assume that ALL of this was paid to the school, by my lender. Is that correct, and I put the full $6921 amount in there?

You need to do your own accounting and not ASSUME. How was the money paid out?

I looked at my Bursar Account from the school and my tuition for my last semester was indeed paid to the school via my Stafford/low-interest student loans. But what I am questioning is if I put that full amount down or do I only put down what I've paid off of those loans so far.

Whatever part of the loan amount was paid to the school for tuition you can deduct whether or not the loans are paid at all.

During the repayment period you can then report the interest paid to offset the loan costs.

 

[Gunslinger08]

Originally posted by: alkemyst
Transfer taxes are usually on the sale of a property...if you paid them for the seller you may be able to deduct it.

If you are filing "Married Filing Separately" (which is where your AGI is limited to 54.5k on PMI, $100k otherwise) then you may have other restrictions on what can be used.

I'm single, so I get limited on pretty much everything.

 

[alkemyst]

Originally posted by: joshsquall

Originally posted by: alkemyst
Transfer taxes are usually on the sale of a property...if you paid them for the seller you may be able to deduct it.

If you are filing "Married Filing Separately" (which is where your AGI is limited to 54.5k on PMI, $100k otherwise) then you may have other restrictions on what can be used.

I'm single, so I get limited on pretty much everything.

I thought single and married filing joint can go to 100k on PMI prior to phase out...

 

[msi1337]

my mother in law is filing single and only had one part time source of income last year (roughly $6k), she also received SS in the amount of about $5.5k. However, all of the earned income was in ohio. In December we moved her into our home in Maryland, and she may have received a total of $300 from Social Security while living in Maryland.

since she had no earned income in Maryland, is it necessary for her to file a MD return? We already finished her Federal and Ohio returns with TurboTax. I didn't want to pay to download a MD return for Turbotax if we dont need it.

 

[alkemyst]

Originally posted by: msi1337
my mother in law is filing single and only had one part time source of income last year (roughly $6k), she also received SS in the amount of about $5.5k. However, all of the earned income was in ohio. In December we moved her into our home in Maryland, and she may have received a total of $300 from Social Security while living in Maryland.

since she had no earned income in Maryland, is it necessary for her to file a MD return? We already finished her Federal and Ohio returns with TurboTax. I didn't want to pay to download a MD return for Turbotax if we dont need it.

Okay, moving on. This thread is NOT intended to:


-Answer state tax questions. Sorry folks, states are their own beasts. They all have different rules and regs, heck 7 states don't even have income taxes. We are not about to keep up with 43 different state codes. Therefore, we won't be answering state questions. The best way to get an answer for a state question is to call up the State Treasury or Revenue Dept.

sorry.

 

[SunnyD]

I'm trying to fill in my W-2 information, and I'm coming across a section regarding "IRC Section 125 flexible benefit plan" contribution. On my W-2's, I have the following (not in any "box"):

W-2 #1 :
Gross Pay
Less Medical FSA
Less OtherCafe125
Reported W-2 Wages

W-2 #2 :
Gross Pay
Plus GTL(C-Box12)
Less 401k(D-Box12)
Less OtherCafe125
Reported W-2 Wages

(I switched jobs, hence 2 W-2's)

What am I supposed to be putting in for this information where it's asking me about Section 125?

 

[alkemyst]

Originally posted by: SunnyD
I'm trying to fill in my W-2 information, and I'm coming across a section regarding "IRC Section 125 flexible benefit plan" contribution. On my W-2's, I have the following (not in any "box"):

W-2 #1 :
Gross Pay
Less Medical FSA
Less OtherCafe125
Reported W-2 Wages

W-2 #2 :
Gross Pay
Plus GTL(C-Box12)
Less 401k(D-Box12)
Less OtherCafe125
Reported W-2 Wages

(I switched jobs, hence 2 W-2's)

What am I supposed to be putting in for this information where it's asking me about Section 125?

How is something not in a box on a W2? All spots should have a numbered label. Maybe I just never seen anything like that though.

 

[SunnyD]

Originally posted by: alkemyst

Originally posted by: SunnyD
I'm trying to fill in my W-2 information, and I'm coming across a section regarding "IRC Section 125 flexible benefit plan" contribution. On my W-2's, I have the following (not in any "box"):

W-2 #1 :
Gross Pay
Less Medical FSA
Less OtherCafe125
Reported W-2 Wages

W-2 #2 :
Gross Pay
Plus GTL(C-Box12)
Less 401k(D-Box12)
Less OtherCafe125
Reported W-2 Wages

(I switched jobs, hence 2 W-2's)

What am I supposed to be putting in for this information where it's asking me about Section 125?

How is something not in a box on a W2? All spots should have a numbered label. Maybe I just never seen anything like that though.

It's the "OtherCafe125" that's confusing me. Is that part of this Section 125? And since TaxACT says Section 125 is generally FSA, why doesn't it say this?

I may just go back to TurboTax since it imports ADP payroll without issues.

 

[alkemyst]

Section 125 is generally a cafeteria plan...many companies have put there FSA and other pre-tax benefits under it. Being it's titled OtherCafe125, I'd be pretty sure it's a Section 125 item. Your payroll dept can confirm.

 

[SunnyD]

Originally posted by: alkemyst
Section 125 is generally a cafeteria plan...many companies have put there FSA and other pre-tax benefits under it. Being it's titled OtherCafe125, I'd be pretty sure it's a Section 125 item. Your payroll dept can confirm.

Nevermind - it only matters for NY State. Screw them.

 

[Gunslinger08]

Originally posted by: alkemyst

Originally posted by: joshsquall

Originally posted by: alkemyst
Transfer taxes are usually on the sale of a property...if you paid them for the seller you may be able to deduct it.

If you are filing "Married Filing Separately" (which is where your AGI is limited to 54.5k on PMI, $100k otherwise) then you may have other restrictions on what can be used.

I'm single, so I get limited on pretty much everything.

I thought single and married filing joint can go to 100k on PMI prior to phase out...

Looks like you're right. Does anyone know if I can take the full amount of the Mortgage Insurance Premium paid to HUD at closing as a deduction this year, or if I have to amortize it?

 

[alchemize]

Originally posted by: alchemize
I had excess distributions to my Roth IRA in 2008. Of course, I lost a bit on the cashout ($5000 put in, $2,800 cashed out) Will these capital losses be tax deductible? And in 08 or 09?

Bump.

Also Vanguard withheld state and fed taxes on this...even though I asked them not to. Aren't roth IRA funds put in post-tax so why would taxes be withheld if there wasn't any gain?

Confuzzled...

 

[Zebo]

Can and how can I expense a M16 in my Scorp, lastname_investments, a Nevada corp? Is it an investment since it's an investment grade firearm? Company bought it and owns it.

I will ask my accountant but I'd like a second opinion.

 

[troytime]

i received a 10990G a few weeks ago, but its for the 2007 tax year.

its for 510 dollars, payer is the illinois dept of revenue.

i don't know what its for, or what i should do with it.
do i have to revise my tax return that i submitted last year?

 

[thehstrybean]

Quick question:

I had a job for a month in the summer of '08 at a state university. I was given my W-2 (for the job that I worked there), and a 1099-MISC for that summer job. Box 7 was filled in. I was paid in a check that had no taxes taken out. Should I file under Schedule C and put it in as "Cash" under "other income"? Thanks!