The 2014 Annual Anandtech Tax Time Thread!

[darom]

CPA, thanks for the encouraging words
Last question: what is the tax difference (%) between the withholding of "Married" and "Married with both spouses working". I tried searching for details on this, but failed. If there is a link to an IRS wording, I'd appreciate it. Thanks.

 

[AznAnarchy99]

So apparently I had a 401b from my job in college for about $700 something. I figured that since I wasn't working there anymore and I was just going to withdraw it. I got hit with a ton of fees/penalties. I didn't know I could have just rolled it over to another 401k or an IRA.

 

[Red Squirrel]

So I got my T4 paper. I made like less than $100 over a tax bracket. Am I going to get royally screwed because of that, or are some of the tax refund stuff calculated out of the base salary? Like since I bought RRSPs and made charity donations, does that get deducted from what I made, before the tax bracket is determined? Anything I can do now to somehow change that number to make it lower? I'll probably be bringing my papers to my tax person soon though.

 

[highland145]

Should you just not get taxed at the higher rate for the $100 and the lower rate for the rest?

 

[Red Squirrel]

Should you just not get taxed at the higher rate for the $100 and the lower rate for the rest?

Oh is that how it works? I figured it bumped the percentage over for everything?

 

[jaedaliu]

Oh is that how it works? I figured it bumped the percentage over for everything?

That's how it works in America. Your Canadian system may be completely different.

 

[CPA]

CPA, thanks for the encouraging words
Last question: what is the tax difference (%) between the withholding of "Married" and "Married with both spouses working". I tried searching for details on this, but failed. If there is a link to an IRS wording, I'd appreciate it. Thanks.

I'm not sure I understand your question. Withholding is on an individual basis. There is withholding for Single, Married and Head of Household. There is no "Married with both spouses working" withholding table or bracket.

 

[Muse]

I started Turbotax online, it was a special offer at $41 for the Premium. But I'm concerned because I could find no way I could import values from my Turbotax Premier returns from last year, which I prepared off the CD version. I have loss carry over from stock investing and I need to have that supported. If I can't access last year's return, how do I get my carry over?

 

[highland145]

I'm not sure I understand your question. Withholding is on an individual basis. There is withholding for Single, Married and Head of Household. There is no "Married with both spouses working" withholding table or bracket.

Maybe he means married filing joint or separate.

 

[cabri]

I started Turbotax online, it was a special offer at $41 for the Premium. But I'm concerned because I could find no way I could import values from my Turbotax Premier returns from last year, which I prepared off the CD version. I have loss carry over from stock investing and I need to have that supported. If I can't access last year's return, how do I get my carry over?

Did the online S/w ask if you had a PDF from the previous year.
If that does not work; enter the info by hand. Supporting data is not sent to the IRS

 

[nitsuj3580]

I saw JMAggie posted a joint home buying question so if it's the same answer, I'm good to go, but my situation is slightly different.

My wife and I are closing on a home soon that we are purchasing jointly with her parents. By jointly, I mean we are buying it together and everyone is going to be living in it.

My first question is similar to JMAggie, we will all be on the mortgage deed (me, my wife, in-laws) so how does that work for tax deductions for expenses that are deductible at the time of buying the home (e.g. closing costs, etc)? Can either my wife and I or my in-laws take all the deductions depending on which way works better?

My second question is going forward, I plan on paying the mortgage on the house. Am I OK taking the full mortgage interest deduction even if my wife's parents are also on the 1098?

Thanks!

 

[cabri]

Normally takes the expenses and splits in half, based on percentage contributed toward the house or one party takes it all.

As long as the SS# is on the paperwork; it will work for deduction

 

[Muse]

Did the online S/w ask if you had a PDF from the previous year.
If that does not work; enter the info by hand. Supporting data is not sent to the IRS

The online S/W did not ask if I had a return from previous year, either PDF or their own format file. Seems very odd to me. The IRS gets no supporting data? They obviously get the details (data) concerning the stock trades in one of the schedules. That gets filled out for me by virtue of a direct online feed from my broker into the Turbotax software. The carryover is based on the current year schedule (in this case 2014) and previous carryovers.

 

[darom]

I'm not sure I understand your question. Withholding is on an individual basis. There is withholding for Single, Married and Head of Household. There is no "Married with both spouses working" withholding table or bracket.

At my work in SAP portal we can manage our own W-4 withholdings for Feds and state. Among other options there are filing status "single, married, married both spouses working, head of household or a family, married with multiple employers". I guess each of these options offers a different withholding percent. My employer came up with additional categories to simplify withholdings? I will check with HR. Thanks.

 

[cabri]

The online S/W did not ask if I had a return from previous year, either PDF or their own format file. Seems very odd to me. The IRS gets no supporting data? They obviously get the details (data) concerning the stock trades in one of the schedules. That gets filled out for me by virtue of a direct online feed from my broker into the Turbotax software. The carryover is based on the current year schedule (in this case 2014) and previous carryovers.

The IRS only gets from the online S/W what you have entered in the Schedule B or D.

I believe that carry overs are indicated on the Schedule itself.

For each entry on a submitted form; they have a number.
"worksheets"/auxiliary data that you enter for the tax S/W (online/desktop) does not get transmitted.

 

[Rhezuss]

Good year for me, bought my first house, changed job so I paid too much of RRQ (don't know what it's called in english) so I get a nice 1281CAD tax refund this year. It's not that much but it's a nice little bonus.

 

[Muse]

The IRS only gets from the online S/W what you have entered in the Schedule B or D.

I believe that carry overs are indicated on the Schedule itself.

For each entry on a submitted form; they have a number.
"worksheets"/auxiliary data that you enter for the tax S/W (online/desktop) does not get transmitted.

Well, what I'm wondering is if I have to buy the CD version of TT instead of use the online version. It will cost me about $20 more to do so. Of course, I will if I must, but seems like it should not be necessary.

 

[jpiniero]

Anyone use H&R Block's software? I had normally used TurboTax but was considering using it instead. Not considering the online version.

 

[Jeff7181]

One of my education loans is in my father's name - we were both on the loan, but then he refinanced it or rolled multiple loans into one and I was removed from the loan at that point.

However, I continue to pay the loan myself and I have the bank statements to prove it. I have additional education loans in my name on which I take the education loan interest deduction. Can I take the deduction for the loan in his name since I pay it, or would he be the only one eligible for the deduction?

(If it matters, I cannot claim him as a dependent)

 

[kranky]

Anyone use H&R Block's software? I had normally used TurboTax but was considering using it instead. Not considering the online version.

I've used both in the past and had no problems with either one. You might want to look into whether you need data imported from last year's TT-generated return and if H&R can do that.

 

[cabri]

I've used both in the past and had no problems with either one. You might want to look into whether you need data imported from last year's TT-generated return and if H&R can do that.

All the big 3 tax S/W that is certified as acceptable by the IRS for electronic filing import the tax files from each other.

I believe that there is a standard format of the binary files.

However, the online versions do not have to import a desktop binary and no online system seems to save out a binary file, only PDF.

H&R block online is able to retrieve data from a PDF that has been generated by both an online and desktop PDF tax program.

 

[Red Squirrel]

Dropped off all my tax papers today, also talked about how I slightly went over the bracket, and it does indeed turn out you only pay the higher bracket for the amount that's higher, and not everything, so I should not really get screwed over by that like I thought. Should be ready in the next couple weeks and I'll find out how much I get.... hopefully, get, and not pay.

 

[highland145]

Dropped off all my tax papers today, also talked about how I slightly went over the bracket, and it does indeed turn out you only pay the higher bracket for the amount that's higher, and not everything, so I should not really get screwed over by that like I thought. Should be ready in the next couple weeks and I'll find out how much I get.... hopefully, get, and not pay.

Damn.

oh, shit, wrong thread.

 

[DaWhim]

I need some tax advice for this year.

To start off with, I own a LLC in NY that import/export, also file tax as a s-corp. It is only 1 man operation.
I have moved to china last year and should be filing tax as a non-resident citizen.

things are little complicated since I live in china.
Since I relocated for business reason, so I guess anything I do, like rent, foods, transportation should be tax deductible off my business?

When I pay myself from my LLC, do I get to use the foreign income exclusion?

 

[kranky]

Dropped off all my tax papers today, also talked about how I slightly went over the bracket, and it does indeed turn out you only pay the higher bracket for the amount that's higher, and not everything, so I should not really get screwed over by that like I thought. Should be ready in the next couple weeks and I'll find out how much I get.... hopefully, get, and not pay.

:thumbsup: "Marginal tax rate" is a key concept to understand.

Since I relocated for business reason, so I guess anything I do, like rent, foods, transportation should be tax deductible off my business?

If I moved to another city to start a business, it doesn't make sense that my living expenses are deductible just because I moved, but the business owner who already lived there can't deduct his.