9th Annual Tax Thread - 2011

[EagleKeeper]

It would go in the insurance category.

I am confused why you chose to pay for Premium?

For non business taxpayer, I do not see benefit.

Also all the insurance entry is usefully for is IF the overall expenses in that category exceed 7.5% of your gross income. And you also have to be itemizing.

 

[KK]

It's simple, the form gives you extra time to file but not to pay. If you have a balance due when you prepare your returns, you will owe interest on that amount (and maybe a late payment penalty). All payments must be made by April 15th.

EDIT: If you estimate that you will owe, you need to send a payment with the 4868 to minimize or avoid any interest accrued.

I know this is a state(GA) question, but who do I send the bill to if the state hasn't refunded what they owe me by the 15th. I gave them ample notice, filed back on the Feb. 22. How much tax penalty can I charge them with? 10%?

 

[alkemyst]

I know this is a state(GA) question, but who do I send the bill to if the state hasn't refunded what they owe me by the 15th. I gave them ample notice, filed back on the Feb. 22. How much tax penalty can I charge them with? 10%?

I don't know if you are trying to be funny, but good luck with that. You'd talk to whoever you'd send you payment to.

There is no time frame guarantee on a refund.

 

[Xcobra]

I know this is a state(GA) question, but who do I send the bill to if the state hasn't refunded what they owe me by the 15th. I gave them ample notice, filed back on the Feb. 22. How much tax penalty can I charge them with? 10%?

I think the IRS begins to include interest if they don't have your refund before 90 days of your filing or something like that. State is probably different. And no, I don't think you can just charge them interest. Doesn't work like that.

 

[EagleKeeper]

Feds will add interest to a refund after 15 July.

1) Have you confirmed that the state received your return.
2) Your state should have a number to call to ask about missing refunds.

Georgia has an email address and web page to assist. Did you try either option.
The web site also indicates time frame to process returns.

 

[KK]

Feds will add interest to a refund after 15 July.

1) Have you confirmed that the state received your return.
2) Your state should have a number to call to ask about missing refunds.

Georgia has an email address and web page to assist. Did you try either option.
The web site also indicates time frame to process returns.

Never knew the feds were so generous. Yes, I've been checking the website for a few weeks, and nothing really has changed, still says this, "Your return has been received, and it is currently being processed. Please contact the Georgia Department of Revenue at (404) 417-2290 to speak with a representative."

I just looked around alittle closer and GA will pay interest after 90 days too. See, I did learn something by goofing around.

 

[grohl]

My wife has income from oil and gas. It's never been more than a few hundred until this year when it was a lot more.

Previously I was recording income from the 1099-MISC the company provides.

The biggest payor this year has severance tax of $1432 (on income of 20k+) deducted from my wife's net income.

So...I bet I can deduct this "severance tax". But do I file this thru a 1099 or through royalty income?

 

[vshah]

$38 owed, woot

 

[Linflas]

Simple question, if you receive dividends from stock under $10.00 total for the year they are not required to send a 1099-DIV. Does that mean you don't enter it on your tax forms as well?

 

[Muse]

Doing deductions there's an section for expenses for investment education, including books, instruction, etc. I'm using Turbotax Premier, and I did a lot of stock trades. I subscribed to Investor's Business Daily for 2-3 years, and also Investools for a period something like a year. The charges were paid by credit card. I'm wondering if in claiming these expenses as deductions I claim the entire amount because the charge was made and paid in 2011 or do I prorate the amount for services received in 2011 and claim the amount for services in 2012 (and beyond) in subsequent tax returns.

 

[EagleKeeper]

My wife has income from oil and gas. It's never been more than a few hundred until this year when it was a lot more.

Previously I was recording income from the 1099-MISC the company provides.

The biggest payor this year has severance tax of $1432 (on income of 20k+) deducted from my wife's net income.

So...I bet I can deduct this "severance tax". But do I file this thru a 1099 or through royalty income?

What item# on the 1099-MISC is the severance tax listed?

 

[EagleKeeper]

Simple question, if you receive dividends from stock under $10.00 total for the year they are not required to send a 1099-DIV. Does that mean you don't enter it on your tax forms as well?

You are still responsible for the information to be entered

 

[EagleKeeper]

Doing deductions there's an section for expenses for investment education, including books, instruction, etc. I'm using Turbotax Premier, and I did a lot of stock trades. I subscribed to Investor's Business Daily for 2-3 years, and also Investools for a period something like a year. The charges were paid by credit card. I'm wondering if in claiming these expenses as deductions I claim the entire amount because the charge was made and paid in 2011 or do I prorate the amount for services received in 2011 and claim the amount for services in 2012 (and beyond) in subsequent tax returns.

Your choice - just be consistent and document what you did

 

[dave_the_nerd]

http://notalwaysright.com/it-pays-to-be-correct/18664

 

[Muse]

Your choice - just be consistent and document what you did

Cool, I did all the figuring, stored it in my data, if needed (I will need it next return to deduct on next tax return), I have all the computations in my stored tax data.
- - - -
OK, I just finished my taxes using Turbotax Premier 2011. I owe nothing, I get no refund. I live on the proverbial shoestring, OK? Do I really need to do this if I'm not going to owe anything at all? It's a PITA. I hope things will be different next year if I can make some real money investing in stocks, however I lost so much money this year I have a huge carryover. I guess to have the unused carryover carryover to the 2013 tax year (assuming I don't use all of it this year) I have to file 2012 taxes. Oh well... :|

 

[Zerhyn]

Hello Anandtech tax gurus,

This is the first time since I started doing my taxes that things started getting a bit complicated. I got married and moved to a different state. My wife and I are going for graduate degrees in separate states. I am in Oregon and she is in Ohio. My first question is... Do we file our taxes separately or together? Does one of us try to claim the other?

Second question: How do I handle multiple states? Is it possible to keep using free online tax programs?
The only forms we need to worry about, as far as I know, are W-2, 1098-T. The only bad part is that there are 4 different states involved. I got my MS in CA, she got hers in NV. Now I am in Oregon and she is in Ohio. So we each have at least one W-2 and 1098-T from CA, NV, OR & OH.

Unfortunately wasn't able to do this earlier because I was out of the country on a research cruise from February to April.

Thank you for your time,
Daniel

 

[EagleKeeper]

Hello Anandtech tax gurus,

This is the first time since I started doing my taxes that things started getting a bit complicated. I got married and moved to a different state. My wife and I are going for graduate degrees in separate states. I am in Oregon and she is in Ohio. My first question is... Do we file our taxes separately or together? which ever ends up best for you. Recommend that you use the PC based S/W - easier to make copies of the information rather than reentering it each time Does one of us try to claim the other? When filing jointly each other is taken care of; when filing married, separately, each is responsible for themselves.NOTE: filing separately WILL shaft you w/ respect to educational credits 1098-T and educational interest.

Second question: How do I handle multiple states? Is it possible to keep using free online tax programs? Multiple states are a PITA. Tax S/W will require $30 per extra state
The only forms we need to worry about, as far as I know, are W-2, 1098-T. The only bad part is that there are 4 different states involved. I got my MS in CA, she got hers in NV. Now I am in Oregon and she is in Ohio. So we each have at least one W-2 and 1098-T from CA, NV, OR & OH. One option for the state returns if doing separately is to for each state; indicate out of state income and pay taxes on the in state income based on the time frame that you lived there

Unfortunately wasn't able to do this earlier because I was out of the country on a research cruise from February to April.

Thank you for your time,
Daniel

Given that you have not started this headache; Get tax S/W; get the Federal done as joint filing.

For your (Oregon); you will have to file a non-resident tax return for CA.

For TurboTax (And I expect that HR Block will operate the same)

our federal tax return is underway or done, but now you need to add another state. First, make sure TurboTax knows that you need to file one or more nonresident state returns:



Open your federal tax return.
Click the Personal Info tab, then click Continue until you reach the screen Your Personal Info.
Scroll down to the Your Other State Info section and click Edit.
Select the appropriate answer on the Did You Live In Another State in 2011? screen (most people will answer "No"). Click Continue.
Answer Yes on the next screen Did You Make Money In Any Other States?
On the next screen, select any additional states (other than your resident state or states) where you received income and/or states that your employer accidentally withheld taxes for.
Click Continue. You will return to the same screen you saw in Step 2, and when you scroll down you will see your nonresident state(s) listed next to the line "Received Income From."
Note: When you enter your state information (wages, income, state tax withholding) in the wages and income sections of the federal return make sure that you enter your nonresident state code(s) of the state(s) that withheld state income taxes.

TurboTax Online: When you get to the State Taxes tab, the program will show you the states you need (up to five) based on what you entered in the Personal Info section.

Important: Make sure you prepare all nonresident returns before your resident state return, to ensure proper calculations. Also, make sure you select the state long form(s) even if TurboTax selects the short form(s) for you.

TurboTax Desktop: You can purchase as many additional state products as you need. The simplest way is by choosing Download State from TurboTax's Online menu. Again, always prepare your nonresident state return(s) before your resident return so that TurboTax calculates the credit properly.

Nevada does not have a state income tax - so that is one less headache. But She will still have to account for the NV income for Ohio if you choose to file separate states.


TaxAct may be running a state tax filing special for online. I do not know how the online packages handle multiple states; I would hope that they would be upfront and not make you pay for something that they can not deliver

 

[JEDI]

i bought a $20 shredder to shred income tax printouts that i'm not keeping.

do i add that deduction to my $50 turbotax deduction? (ie: tax prep fees)

If not, then where?

 

[EagleKeeper]

i bought a $20 shredder to shred income tax printouts that i'm not keeping.

do i add that deduction to my $50 turbotax deduction? (ie: tax prep fees)

If not, then where?

Schedule A - Line #28 - same form that the TT fee goes to.
Realize that you may have state filing fees from TT that also gets added to next year tax fees

Also, when did you purchase the TT S/W?

 

[alkemyst]

I am going to look at this 2106 for next year. I have driven 5000 miles in two months and only got mileage for some of it.

 

[EagleKeeper]

I am going to look at this 2106 for next year. I have driven 5000 miles in two months and only got mileage for some of it.

Keep track of when you drove as well as why you drove. IRS requires this to be recorded and also:

Because of the way fuel prices have been moving; the IRS over the past few years has split the deduction value between Jan-> Jun and Jul-Dec.

Again for everyone, this requires using the Schedule A

 

[JEDI]

Form 2106 - same form that the TT fee goes to.
Realize that you may have state filing fees from TT that also gets added to next year tax fees

Also, when did you purchase the TT S/W?

2012 version of TT i boguht this year, but i also bought 2011's version last year. (i buy TT yearly)

TT says form 2106 is Job Related Expenses?
add 'tax prep' as a line under Occupation?

 

[EagleKeeper]

Form 2106 - same form that the TT fee goes to.
Realize that you may have state filing fees from TT that also gets added to next year tax fees

Also, when did you purchase the TT S/W?

2012 version of TT i bought this year, but i also bought 2011's version last year. (i buy TT yearly)

TT says form 2106 is Job Related Expenses?
add 'tax prep' as a line under Occupation?

you can deduct the purchase made in 2011 for 2010 tax S/W.

Form 2106 is mainly for job expenses.

I misposted - Schedule A line #28 is a catch all bin for "other". that is where the Tax s/W and the shredder will be totaled out.

 

[Svnla]

I know a guy that was married with 2 kids, 1 house, 1 wife, all the good stuffs.

Now he is divorced, live in an apartment, his 2 kids are with his ex, he is paying child support for those 2 kids but no alimony.

All he has now is his salary, his interest payment from a bank (from CD and savings), and Health Saving Account.

Can he do anything to maximize his tax return/minimize his tax? He can not claim his kids as dependents, right? TIA.

 

[Pandamonium]

Tried searching but didn't see anything that specifically matches my situation...

1) Married filing jointly
2) In calendar 2011, I was a fulltime medical student. Received 1098T, no W2.
3) In calendar 2011, my wife was a full-time medical student Jan1-Jun30, and then became some category of graduate student (doing a research year) so that her student loans do not enter repayment. However, no tuition is charged, and she is paid a graduate student stipend. At our school, the "semester" including Jan1-Jun30 was billed in Dec 2010. She received a W2, no 1098T.
4) Our school requires that we pass two exams in order to graduate (USMLE 1, USMLE 2).
5) However, passing these two exams (along with USMLE 3) is required for initial licensure to practice medicine in the US.
6) I paid about $600 for my testing fees, my wife paid about $1700 in fees and another $300 or so to travel to sit for one of those exams. (One of the exams only has a dozen or so testing facilities throughout the country)

So my questions:
1) Can these fees be used for deduction purposes?
2) If yes, it looks like one of us can claim deductions and the other a credit. Could we deduct my wife's fees and have me claim a credit? (She earned the income, I did not; but we are filing jointly)