7th Annual Anandtech Tax Time Thread

[gaidensensei]

Yeah.. doing some tax filing. Can't believe I missed this thread all week. Anyone here use paypal with some small business?

I've been trying to work on a script the past few years in excel and tweak it for my likes using Excel's macro function and comma separated value sheets downloaded from paypal history.

So far it works ok the past few years, but I need to run it multiple times, each time changing the field I want to copy / sort. And it's case sensitive too.


Here's in advance if anyone wants to give suggestions.

 Sub ExcelFilter()

        Dim LSearchRow As Integer
        Dim LCopyToRow As Integer

        On Error GoTo Err_Execute

        'Start search in row 1
        LSearchRow = 1

        'Start copying data to row 1 in Sent (row counter variable)
        LCopyToRow = 2

        While Len(Range("A" & CStr(LSearchRow)).Value) > 0

            'Enter the status/transaction type here, case sensitive and needs exact
            If Range("C" & CStr(LSearchRow)).Value = "eBay Payment Received" Then

                'Selects row in first original sheet to copy
                Rows(CStr(LSearchRow) & ":" & CStr(LSearchRow)).Select
                Selection.Copy

                'Paste row into the new sheet name
                Sheets("paymentreceived").Select
                Rows(CStr(LCopyToRow) & ":" & CStr(LCopyToRow)).Select
                ActiveSheet.Paste

                'Move counter to next row
                LCopyToRow = LCopyToRow + 1

                'Go back to original sheet to continue searching
                Sheets("filename").Select

            End If

            LSearchRow = LSearchRow + 1

        Wend

        'Position on cell A3
        Application.CutCopyMode = False
        Range("A3").Select

        MsgBox "Data has been copied."

        Exit Sub

Err_Execute:
        MsgBox "An error occurred."

    End Sub

 

[EagleKeeper]

Well, once again, I used Turbo Tax. Did alright I suppose. Only got a thousand bucks back, and thats only cuz I was full time college.
For state I owe 40 bucks. I declared all my online purchases. Figured that would be better than letting them find it on their own (which is unlikely, but still).

Turbo Tax cost me 20 bucks more than last year, but I got free E-file this time. Do they still make a cheap version with no free e-file?

All have free online filing for a stripped down version and subject to income limits.
TT has stopped pulling in the previous years information unless you pay for it.

Some may have it so that you can enter the infomration but are unable to print or efile without payment.

 

[EagleKeeper]

On income taxes, sales taxes are a deduction....did you file with the dept of revenue as well?

One must use the Schedule A and balance the sales tax against the state income tax

 

[paperfist]

Is there anyway, place, or form that I could use to find out if converting from a sole proprietorship to a LLC with S-Corp tax structure?

 

[EagleKeeper]

Is there anyway, place, or form that I could use to find out if converting from a sole proprietorship to a LLC with S-Corp tax structure?

Question is to vague

 

[paperfist]

Question is to vague

Syntax error?

I'm a sole proprietor and say I make an avg of $50k/year.

I pay 15.3% self-employment tax, plus 25% income tax as a single filer.

Now if I went with a LLC with an S-Corp tax structure how would I determine if I would gain any savings or end up paying more?

All the books I've read say if you keep X amount of dollars in your corp and pay yourself as an employee you have the potential of saving money because you've split your income into 2 different tax brackets. Of the tax filers I've talked to (not CPAs) they say it's a waste of time, but I'd like to see how it breaks down on paper.

I guess the downside is that as an employee I will now have to pay about 40% on my income for SS, comp, taxes, etc.

Thank you very much for spending time on my question

 

[EagleKeeper]

Syntax error?

I'm a sole proprietor and say I make an avg of $50k/year.

I pay 15.3% self-employment tax, plus 25% income tax as a single filer.

Now if I went with a LLC with an S-Corp tax structure how would I determine if I would gain any savings or end up paying more?

All the books I've read say if you keep X amount of dollars in your corp and pay yourself as an employee you have the potential of saving money because you've split your income into 2 different tax brackets. Of the tax filers I've talked to (not CPAs) they say it's a waste of time, but I'd like to see how it breaks down on paper.

I guess the downside is that as an employee I will now have to pay about 40% on my income for SS, comp, taxes, etc.

Thank you very much for spending time on my question

The S Corp will be responsible for paying the half of the SS tax.
There may also be higher business license requirements/fees.

You best bet would be to grab some tax S/W that supports S Corp and punch in the numbers to see what the results will be w/ respect to the Feds.

That would be cheaper than using any Tax accountant.

How the States will handle it for their taxes?....

 

[manlymatt83]

I'm going to owe about $40,000 in taxes this year from 1099 income. So far I paid in $27,000. I paid none quarterly because this was my first year as a contractor and I had no idea what I was doing. I'll get the other $13,000 in before April 15th, so come tax time, I'll be caught up, but just very late. Am I going to be in trouble, or just fined?

 

[EagleKeeper]

I'm going to owe about $40,000 in taxes this year from 1099 income. So far I paid in $27,000. I paid none quarterly because this was my first year as a contractor and I had no idea what I was doing. I'll get the other $13,000 in before April 15th, so come tax time, I'll be caught up, but just very late. Am I going to be in trouble, or just fined?

You may get a fine or slap on the wrist.

If they come after you; tell them that you were following the example of their boss:hmm: At least you paid your taxes for the year that they were due.

$40K taxes should equal about $120K in income.
I hope that you are expensing up the wazzo as much as possible.

 

[paperfist]

The S Corp will be responsible for paying the half of the SS tax.
There may also be higher business license requirements/fees.

You best bet would be to grab some tax S/W that supports S Corp and punch in the numbers to see what the results will be w/ respect to the Feds.

That would be cheaper than using any Tax accountant.

How the States will handle it for their taxes?....

Thanks so much for the help EagleKeeper Do you mind if I send you a PM?

I'm going to owe about $40,000 in taxes this year from 1099 income. So far I paid in $27,000. I paid none quarterly because this was my first year as a contractor and I had no idea what I was doing. I'll get the other $13,000 in before April 15th, so come tax time, I'll be caught up, but just very late. Am I going to be in trouble, or just fined?

I don't know if there's an amount limit and it's a little pricey, but the IRS will put you on a payment plan if you couldn't have paid that amount by the 15th

 

[manlymatt83]

You may get a fine or slap on the wrist.

If they come after you; tell them that you were following the example of their boss:hmm: At least you paid your taxes for the year that they were due.

$40K taxes should equal about $120K in income.
I hope that you are expensing up the wazzo as much as possible.

OK, thanks! So this isn't something that would cause legal issues or anything like that?

 

[alkemyst]

not criminal, but legal issues with the IRS possibly hence underpayment fines and possibly being put on a payment plan for future years.

 

[lothar]

IRS opened up a SO to be declared as an dependant last year.

That's dumb...
How are they able to verify this info?

Just find any chick who makes much less than you to claim as a dependent to reduce your tax?
Since the person is still considered a "SO", what documents of proof will the IRS specifically be looking for? Obviously you're not married yet(and might never even be!) so you can't show a marriage certificate.

 

[lothar]

Tax Year 2010 question:
Bush Taxcuts expires at the end of this year.

Would it be wise to cash in on some investments this year?
I figure I'd rather pay a 15% tax than a 20+% one.

No estate tax this year? Anyone who plans to die anytime soon, now would be the time to do so.

 

[EagleKeeper]

That's dumb...
How are they able to verify this info?

Just find any chick who makes much less than you to claim as a dependent to reduce your tax?
Since the person is still considered a "SO", what documents of proof will the IRS specifically be looking for? Obviously you're not married yet(and might never even be!) so you can't show a marriage certificate.

The rules will be based on income of the SO and and if what you provide is considered to be more than 2X her income.

 

[EagleKeeper]

Tax Year 2010 question:
Bush Taxcuts expires at the end of this year.

Would it be wise to cash in on some investments this year?
I figure I'd rather pay a 15% tax than a 20+% one.

No estate tax this year? Anyone who plans to die anytime soon, now would be the time to do so.

I wa always told by those wiser than me to make financial decisions based on profit, not taxes.

 

[lothar]

I was always told by those wiser than me to make financial decisions based on profit, not taxes.

True, but why not make a decision based on both if you can? Taxes eat into your profits so they should have *some* consideration.
I'm by no means saying one should trade based on taxes alone.

I've made a decent profit on ACF stock which is why I'm considering selling.
I'm also waiting to see what my mentors Bruce Berkowitz, Ian Cumming/Joe Steinberg, and Donald Yacktman do with their own shares first.

 

[richardycc]

other than points, what else can I write off from a mortgage refi?

 

[EagleKeeper]

other than points, what else can I write off from a mortgage refi?

If this is a second re-fi on the place; then any points that you were amoratizing from the first re-fi can be written off.

Otherwise anything on the closing statement that indicate fees/taxes paid to a government entity.

The same holds true for an closing statement, re-fi or not.

 

[dbk]

anybody in VA get their state refund yet?

 

[Beev]

I have a quick question regarding my return. I filed on March 6th via TurboTax.com, and it said my federal return was $420, but on March 19th all I got was a deposit for $99.11. Why would that happen? What should I do? TurboTax said to contact the IRS, and when I tried to call the IRS I couldn't get a real person on the line.

 

[bruceb]

You did not say where you filed, but since you are in Kansas, IRS has 3 offices:

6717 Shawnee Mission Parkway
Overland Park, KS 66202
Monday-Friday - 8:30 a.m.- 4:30 p.m.
Office will be open 9:00 a.m. - 2:00 p.m. on Saturday, 3/27
(816) 966-2840
-----------------------------------------------------------------
Topeka 120 S.E. Sixth Ave.
Topeka, KS 66603
Monday-Friday - 8:30 a.m.- 4:30 p.m.
Office will be open 9:00 a.m. - 2:00 p.m. on Saturday, 3/27
(785) 235-3053
----------------------------------------------------------------
Wichita 271 W. Third St. North
Wichita, KS 67202
Monday-Friday - 8:30 a.m.- 4:30 p.m.
Office will be open 9:00 a.m. - 2:00 p.m. on Saturday, 3/27
(316) 352-7401
---------------------------------------------------------------
In any event, if the IRS changed your refund amount, they must include a letter saying why. Usually it is a math error or they disallowed some deduction.

 

[EagleKeeper]

As Bruce stated, the IRS will send a explanation letter of adjustment to the address on your return.
You also have the option to dispute the adjsutment.

It will take about 1-2 weeks for it to arrive.

OR, you can go in person the the IRS office in Overland Park (closest to you) and get an answer.
10 minutes away - just up I35 and exit at US56 going East

 

[Beev]

Thanks guys. I'll head up to the office during my lunch break.

 

[alkemyst]

Usually it is a math error or they disallowed some deduction.

If you owe any government past due money (school loans, taxes, etc) it comes right off the top of a refund.