CPA's Annual Tax Time Help - Filing Day is over. This thread can be unstickied.

[GtPrOjEcTX]

We are to be married in Sept. Plan on filing joint. As of Q2 of this year I'll be independent of my parents (mostly am right now, just living in the same house but supporting myself).

We are buying our first house.

She has been paying her own way through school for loans, and will be stopping this year w/ her associates in the summer. Anything we can do there?

Any assistance on websites to go to to learn up on what I can expect I'll be doing next year would be appreciated.

 

[EagleKeeper]

Originally posted by: GtPrOjEcTX
We are to be married in Sept. Plan on filing joint. As of Q2 of this year I'll be independent of my parents (mostly am right now, just living in the same house but supporting myself).

We are buying our first house.

She has been paying her own way through school for loans, and will be stopping this year w/ her associates in the summer. Anything we can do there?

Any assistance on websites to go to to learn up on what I can expect I'll be doing next year would be appreciated.

I do not know of any web sites that will provide assistance on marriage. Have fun and have consideration for each other.

with respect to web sites for taxes, there is no real need.

Most good tax S/w (as has been discussed here in this thread) will handle your situation nicely. You can do w/out the S/W, however, with it so cheap, it makes sense to use it.
School loands will be needed to be tracked (Hope credit). Interest on loans can be utilized as a expense.
Some costs when purchasing the house will come off the first year taxes.
Being marriage has many benifits (beside the warm bed)

It will expect that your parents will no longer claim you as a dependant. Actually if you and your wife file jointly they can not file you as such.

For income adjustments, if you intend on buying the house this year and get married, I would make sure that you both adjust your W4 withholding to a larger number. This will allow more $$ back in your pocket each paycheck. Then lock that money aside for the house. If the purchase of the house is questionable, do not boost both witholdings up.

 

[GtPrOjEcTX]

Originally posted by: EagleKeeper
I do not know of any web sites that will provide assistance on marriage. Have fun and have consideration for each other.

:beer: Not quite what I was asking.

with respect to web sites for taxes, there is no real need.

Most good tax S/w (as has been discussed here in this thread) will handle your situation nicely. You can do w/out the S/W, however, with it so cheap, it makes sense to use it.

Entering the thread fairly late I didn't want to read all of it so I searched each page for "software" and came back with either turbotax or tax cut. Opinion on which is better or at least better for my case? (Joint filing, school interest, first home, joint income ~$45K)?

For income adjustments, if you intend on buying the house this year and get married, I would make sure that you both adjust your W4 withholding to a larger number. This will allow more $$ back in your pocket each paycheck. Then lock that money aside for the house. If the purchase of the house is questionable, do not boost both witholdings up.

We are quite sure we will be getting a house this year as I just came from the realtor after making our second offer on a house. I'm not quite sure what you're saying with adjusting the W4 withholding. If I adjusted it to a larger number, wouldn't that mean more is taken out of our checks, but a larger refund at tax time? That kind of contradicts your following sentence..."This will allow more $$ back in your pocket each paycheck".

 

[alkemyst]

Originally posted by: GtPrOjEcTX
Entering the thread fairly late I didn't want to read all of it so I searched each page for "software" and came back with either turbotax or tax cut. Opinion on which is better or at least better for my case? (Joint filing, school interest, first home, joint income ~$45K)?

Anything should be fine you your needs. The differences only come out in more complicated returns. In fact you can probably do your's by hand in less time than going through a s/w piece.


The larger number on a W4 is exemptions. The more exemptions you claim the less withholding you are 'charged'. It really won't affect anything in the end other than not letting Uncle Sam borrow your funds. If you don't plan on investing them or making interest or using them for purchases.....it won't matter. You can't take out too little though as you can be penalized.

Å

 

[EagleKeeper]

Originally posted by: alkemyst
In fact you can probably do your's by hand in less time than going through a s/w piece.
Å

The big advantage in using the S/W is in the following year. The S/W will autofill in the forms for you with the information and usually present you with a list of what was entered the previous year.

 

[SaigonK]

Heya,

I have a question for ya, maybe you can help me out on this one.

I sold some stock options from my company this year. (Details below)

Grant Details:

Grant Date(mm/dd/yyyy): 11/11/2002
Grant Type: NQ
Shares Granted: 1,000
Grant Price: $11.9600
Trade Date(mm/dd/yyyy): 11/12/2003
Trade Type: Market Sell Order
Shares Sold: 250
Sale Price: $23.9000

Proceeds Summary
Gross Proceeds: $5,975.00
Less Cost of Shares: ($2,990.00)
Less Total Taxes: ($1,123.85)
Less Total Transaction Fees: ($35.28)
Net Proceeds: $1,810.87


Anyway, I dont see where I can put in the taxes I already paid on this sale in my forms.
What do i do with it? I guess what i cant figure out is how i show i paid the tax and get a refund on it.

I have a 1099 but it doesnt say anything about the tax I paid, yet my transaction history at my broker does...any thoughts?


Thanks!
SK

 

[Turin39789]

Originally posted by: CPA

Originally posted by: Turin39789
I have two fun questions. My taxes every year are simple 5 minute jobs, ive been a student and claimed as a dependant. This year I am starting to claim myself as an independent. I still don't make much money (total came out to ~12.5k) but I am trying to get a handle on how to deduct my school expenses. My school issued me a form 1098-t and I seem to be eligble for a hope/lifetime learning credit. Which one should I go for? I did two years full time at a university, ran out of money, did a year at a community college and am trying to claim last springs semester . the total breaks down to 863 for tuition and about 390 for books . Any help here would be appreciated.



Now for the stick situation. I never filed last years tax return. I went through my 1040ez etc but then lost a w2, moved, found the w2, and put the situation off. I have filed late once before and there was no problem because i was owed money. I am owed money this time but have never been near this late and dont know where to get last years forms/who to contact etc.


Thanks guys

Issue 1: Did you claim the Hope Credit the 1st two years you went to school? If so, then you are not eligible to take it again.

Issue 2: As long as you are owed money, you can file whenever you want. Just get a 1040A for 2002 and file.

Found out that my parents did not claim the hope credit my first two years. Having not taken the credit at all , am I eligible to do so now, or did I miss out because I did not do it my first two years

 

[EagleKeeper]

Originally posted by: Turin39789

Found out that my parents did not claim the hope credit my first two years. Having not taken the credit at all , am I eligible to do so now, or did I miss out because I did not do it my first two years

File ammended returns using the 1040X and fill in what is needed to.

If your parents claimed you as a dependent, you can not file the Hope. They will have to.
If you are not claimed, then file the 1040X for each year and claim the Hope for each year.

You should file your 1040s for each year to get your $$ back.

 

[EagleKeeper]

Originally posted by: SaigonK
Heya,

I have a question for ya, maybe you can help me out on this one.

I sold some stock options from my company this year. (Details below)

Grant Details:

Grant Date(mm/dd/yyyy): 11/11/2002
Grant Type: NQ
Shares Granted: 1,000
Grant Price: $11.9600
Trade Date(mm/dd/yyyy): 11/12/2003
Trade Type: Market Sell Order
Shares Sold: 250
Sale Price: $23.9000

Proceeds Summary
Gross Proceeds: $5,975.00
Less Cost of Shares: ($2,990.00)
Less Total Taxes: ($1,123.85)
Less Total Transaction Fees: ($35.28)
Net Proceeds: $1,810.87


Anyway, I dont see where I can put in the taxes I already paid on this sale in my forms.
What do i do with it? I guess what i cant figure out is how i show i paid the tax and get a refund on it.

I have a 1099 but it doesnt say anything about the tax I paid, yet my transaction history at my broker does...any thoughts?


Thanks!
SK

Line 62 or 67 will be where the pre-paid taxes should be recorded.
The other information should be shown on the Schedule B.

 

[SaigonK]

Originally posted by: EagleKeeper

Originally posted by: SaigonK Heya, I have a question for ya, maybe you can help me out on this one. I sold some stock options from my company this year. (Details below) Grant Details: Grant Date(mm/dd/yyyy): 11/11/2002 Grant Type: NQ Shares Granted: 1,000 Grant Price: $11.9600 Trade Date(mm/dd/yyyy): 11/12/2003 Trade Type: Market Sell Order Shares Sold: 250 Sale Price: $23.9000 Proceeds Summary Gross Proceeds: $5,975.00 Less Cost of Shares: ($2,990.00) Less Total Taxes: ($1,123.85) Less Total Transaction Fees: ($35.28) Net Proceeds: $1,810.87 Anyway, I dont see where I can put in the taxes I already paid on this sale in my forms. What do i do with it? I guess what i cant figure out is how i show i paid the tax and get a refund on it. I have a 1099 but it doesnt say anything about the tax I paid, yet my transaction history at my broker does...any thoughts? Thanks! SK

Line 62 or 67 will be where the pre-paid taxes should be recorded. The other information should be shown on the Schedule B.

I am doing them online with Intuits Quicken program and cannot seem to find Line 67 anywhere!

 

[EagleKeeper]

Originally posted by: SaigonK

Originally posted by: EagleKeeper

Originally posted by: SaigonK Heya, I have a question for ya, maybe you can help me out on this one. I sold some stock options from my company this year. (Details below) Grant Details: Grant Date(mm/dd/yyyy): 11/11/2002 Grant Type: NQ Shares Granted: 1,000 Grant Price: $11.9600 Trade Date(mm/dd/yyyy): 11/12/2003 Trade Type: Market Sell Order Shares Sold: 250 Sale Price: $23.9000 Proceeds Summary Gross Proceeds: $5,975.00 Less Cost of Shares: ($2,990.00) Less Total Taxes: ($1,123.85) Less Total Transaction Fees: ($35.28) Net Proceeds: $1,810.87 Anyway, I dont see where I can put in the taxes I already paid on this sale in my forms. What do i do with it? I guess what i cant figure out is how i show i paid the tax and get a refund on it. I have a 1099 but it doesnt say anything about the tax I paid, yet my transaction history at my broker does...any thoughts? Thanks! SK

Line 62 or 67 will be where the pre-paid taxes should be recorded. The other information should be shown on the Schedule B.

I am doing them online with Intuits Quicken program and cannot seem to find Line 67 anywhere!

A little research shows that the line 67 has checkboxes for special forms, none of these cover your situation.

I do not know how the Quicken program works.

On the Tax S/W programs, there are entries to enter additional tax paid on 1040 Line 62 for estimated taxes paid for the tax year.
If the 1099 does not indicate tax withheld, this is where the brokerage information should be placed. You may wish to contact the brokerage and find out why the 1099 that you received did not have the tax info recorded on it.

 

[Davegod75]

Trying to figure out if I can use 1040EZ or not. The only requirement that is holding me up is "You do not claim an education credit, the retirement savings contributions credit, or the health coverage tax credit"

Now i'm a federal employee and I have money from each paycheck going into a 401K and a health plan. both of these are taken out before taxes. ANd btw, the both of those added together are not greater than the standard deduction.

Does this have anything to do with this requirement? and can i use 1040ez

Thanks

 

[CPA]

Originally posted by: Turin39789

Originally posted by: CPA

Originally posted by: Turin39789
I have two fun questions. My taxes every year are simple 5 minute jobs, ive been a student and claimed as a dependant. This year I am starting to claim myself as an independent. I still don't make much money (total came out to ~12.5k) but I am trying to get a handle on how to deduct my school expenses. My school issued me a form 1098-t and I seem to be eligble for a hope/lifetime learning credit. Which one should I go for? I did two years full time at a university, ran out of money, did a year at a community college and am trying to claim last springs semester . the total breaks down to 863 for tuition and about 390 for books . Any help here would be appreciated.



Now for the stick situation. I never filed last years tax return. I went through my 1040ez etc but then lost a w2, moved, found the w2, and put the situation off. I have filed late once before and there was no problem because i was owed money. I am owed money this time but have never been near this late and dont know where to get last years forms/who to contact etc.


Thanks guys

Issue 1: Did you claim the Hope Credit the 1st two years you went to school? If so, then you are not eligible to take it again.

Issue 2: As long as you are owed money, you can file whenever you want. Just get a 1040A for 2002 and file.

Found out that my parents did not claim the hope credit my first two years. Having not taken the credit at all , am I eligible to do so now, or did I miss out because I did not do it my first two years

Based on your situation and stated facts, I would say you could.

 

[CPA]

Originally posted by: SaigonK
Heya,

I have a question for ya, maybe you can help me out on this one.

I sold some stock options from my company this year. (Details below)

Grant Details:

Grant Date(mm/dd/yyyy): 11/11/2002
Grant Type: NQ
Shares Granted: 1,000
Grant Price: $11.9600
Trade Date(mm/dd/yyyy): 11/12/2003
Trade Type: Market Sell Order
Shares Sold: 250
Sale Price: $23.9000

Proceeds Summary
Gross Proceeds: $5,975.00
Less Cost of Shares: ($2,990.00)
Less Total Taxes: ($1,123.85)
Less Total Transaction Fees: ($35.28)
Net Proceeds: $1,810.87


Anyway, I dont see where I can put in the taxes I already paid on this sale in my forms.
What do i do with it? I guess what i cant figure out is how i show i paid the tax and get a refund on it.

I have a 1099 but it doesnt say anything about the tax I paid, yet my transaction history at my broker does...any thoughts?


Thanks!
SK

SK, I sent you PM on this issue. Let me know what you find out. The answer is dependant on whether or not your employer processed these exercises as W2 income.

 

[CPA]

Originally posted by: Davegod75
Trying to figure out if I can use 1040EZ or not. The only requirement that is holding me up is "You do not claim an education credit, the retirement savings contributions credit, or the health coverage tax credit"

Now i'm a federal employee and I have money from each paycheck going into a 401K and a health plan. both of these are taken out before taxes. ANd btw, the both of those added together are not greater than the standard deduction.

Does this have anything to do with this requirement? and can i use 1040ez

Thanks

No. 401K and your premiums have no correlation to the standard deduction. What the requirements are referring to are health coverage premiums paid outside of an employer sponsored plan and retirement contributions outside of a 401K (such as an IRA). It looks like you should be able to use the 104EZ.

 

[Davegod75]

thanks...i thought so but wanted to be sure.

 

[Krugger]

here's a simple question for you guys.
i'm a college student, who made under $4k this past year. i had about $400 witheld for Fed Tax, and got it all back as usual. i had about $90 witheld for State (PA) Tax and when i try to do my return on the PA website it tells me i won't get any of it back. all my other friends get theirs back from other states. am i filling something out wrong, or missing something i should be doing?
thanks for any advice.
-Krugger

 

[CPA]

Originally posted by: Krugger
here's a simple question for you guys.
i'm a college student, who made under $4k this past year. i had about $400 witheld for Fed Tax, and got it all back as usual. i had about $90 witheld for State (PA) Tax and when i try to do my return on the PA website it tells me i won't get any of it back. all my other friends get theirs back from other states. am i filling something out wrong, or missing something i should be doing?
thanks for any advice.
-Krugger

Krugger,

It's too difficult for us to answer state tax law questions, because each state has their own code.

I will say, though, to try doing it the old fashioned way - on paper. This way when you are reading the lines on the form, you may see why you did not get a refund.

 

[CPA]

Originally posted by: cl55
hi, i'm a full-time college student at ucla.. just started my first part-time job (work-study) on campus.

my w2 says i've made $650 with $11 withheld.

i receive full financial aid (fafsa) for tuition, housing, etc.

should i file for this year? does financial aid affect anything?

thank you very much.

financial aid should not affect anything, unless you received a stipend. You will be due a refund of that $11, so it is up to you if you want to file for it or not. Law does not require you to file if you are due a refund.

 

[Krugger]

Originally posted by: CPA

Originally posted by: Krugger
here's a simple question for you guys.
i'm a college student, who made under $4k this past year. i had about $400 witheld for Fed Tax, and got it all back as usual. i had about $90 witheld for State (PA) Tax and when i try to do my return on the PA website it tells me i won't get any of it back. all my other friends get theirs back from other states. am i filling something out wrong, or missing something i should be doing?
thanks for any advice.
-Krugger

Krugger,

It's too difficult for us to answer state tax law questions, because each state has their own code.

I will say, though, to try doing it the old fashioned way - on paper. This way when you are reading the lines on the form, you may see why you did not get a refund.

alright. thanks for the advice though.

 

[bonk102]

this is going to sound stupid, but i didn't file my taxes last year, and i had money coming back to me, when i file this year, will i be hit with a large fine for not filing last year? (this is federal and NY state i'm talking about btw)

just wondering what i should expect to be in for before i begin

 

[CPA]

Originally posted by: bonk102
this is going to sound stupid, but i didn't file my taxes last year, and i had money coming back to me, when i file this year, will i be hit with a large fine for not filing last year? (this is federal and NY state i'm talking about btw)

just wondering what i should expect to be in for before i begin

No. Technically you have paid all of your taxes owed (and more). The IRS only imposes penalties and interest if you under report and do not report by April 15th, generally.

Not sure about NY tax law, though.

 

[thirtythree]

Originally posted by: CPA

Originally posted by: bonk102
this is going to sound stupid, but i didn't file my taxes last year, and i had money coming back to me, when i file this year, will i be hit with a large fine for not filing last year? (this is federal and NY state i'm talking about btw)

just wondering what i should expect to be in for before i begin

No. Technically you have paid all of your taxes owed (and more). The IRS only imposes penalties and interest if you under report and do not report by April 15th, generally.

Not sure about NY tax law, though.

so if I don't owe any money, I don't even have to file? I did get a $500 check this year without taxes taken out for a competition sponsored by the oracle corporation. I didn't receive any tax documents from that though so do I have to report it? if so, where do I report it?

 

[CPA]

Originally posted by: thirtythree

Originally posted by: CPA

Originally posted by: bonk102
this is going to sound stupid, but i didn't file my taxes last year, and i had money coming back to me, when i file this year, will i be hit with a large fine for not filing last year? (this is federal and NY state i'm talking about btw)

just wondering what i should expect to be in for before i begin

No. Technically you have paid all of your taxes owed (and more). The IRS only imposes penalties and interest if you under report and do not report by April 15th, generally.

Not sure about NY tax law, though.

so if I don't owe any money, I don't even have to file? I did get a $500 check this year without taxes taken out for a competition sponsored by the oracle corporation. I didn't receive any tax documents from that though so do I have to report it? if so, where do I report it?

Correct. In fact, you only get 3 years to collect on your refund, then the money becomes the property of the Feds. In general, for 2003, if you made less than $7800 as a single filer, then you don't have to file, unless you could possibly get a refund of taxes withheld (if it's worth it).

Basically, a single filer (not claimed as a dependant) standard deduction is $7800. So in order for there to be any taxable income, you would need to make more than $7800.

BTW, if you work, you may also qualify for the Earned Income Credit.

For the oracle deal, theoretically you would have to report this "prize" as other income. But since you look to be under the threshold for filing, you would not need to report it.

 

[thirtythree]

Originally posted by: CPA
Correct. In fact, you only get 3 years to collect on your refund, then the money becomes the property of the Feds. In general, for 2003, if you made less than $7800 as a single filer, then you don't have to file, unless you could possibly get a refund of taxes withheld (if it's worth it).

Basically, a single filer (not claimed as a dependant) standard deduction is $7800. So in order for there to be any taxable income, you would need to make more than $7800.

BTW, if you work, you may also qualify for the Earned Income Credit.

For the oracle deal, theoretically you would have to report this "prize" as other income. But since you look to be under the threshold for filing, you would not need to report it.

great, thanks