Thank you for the response.
I wasn't quite clear with my question - I meant how would we (spouse and me) file rather than just me. If possible, I'd prefer for us to not have to file Married, Filing Separately"
I believe if you file joint on federal you have to file joint on state (with some exceptions). State returns will ask for portions earned in and out of state so it isn't difficult to figure. Basically you are 100% in SC and 0% in TN. Be careful that you don't pay tax to both states, which may require a credit request later.
Thank you for the response.
I wasn't quite clear with my question - I meant how would we (spouse and me) file rather than just me. If possible, I'd prefer for us to not have to file Married, Filing Separately"
Question(s) here: My wife made $750 on a 1099 from a business in CA they withheld $52.50. According to Turbotax we would get a refund of $34. It costs (with TT) $37 to file. Do I have to file a CA state return or can I just say eff it?
TIA!
As long as they can't ever prove that you actually owe them, then you don't necessarily need to file and they won't mind keeping your money. If you don't file and try to get the money later you might be fined for not filing. Can't you do some ez form in 2 minutes and snail mail it?
Here's an answer that I found from the Turbo Tax help forums. It sounds like I'm supposed to adjust my basis to include the income so that basically wipes out the 1099. I'm going to have a CPA run through it though and make sure everything is kosher.
Depreciation or amortization (impermissible to permissible) (sections 56, 167, 168, 197, 280F, 1400I, 1400L, 1400N,
and former section 168)—from an impermissible method to a permissible method for changes allowed under Regulations
section 1.446-1(e)(2)(ii)(d), and for depreciable property owned at the beginning of the year of change. Complete Schedule E of
Form 3115. An applicant changing its method of accounting for depreciation because of a change described in designated
automatic accounting method change number 10 (sale or lease transactions) must file Form 3115 according to the designated
change number 10. Additionally, a qualified small taxpayer qualifies for a reduced Form 3115 filing requirement. See section
6.01 of Rev. Proc. 2015-14.
14 If the applicant is either (i) not changing its overall method of accounting, or (ii) changing its overall method of
accounting and changing to a special method of accounting for one or more items, attach a detailed and
complete description for each of the following (see instructions):
a The item(s) being changed.
b The applicant’s present method for the item(s) being changed.
c The applicant’s proposed method for the item(s) being changed.
d The applicant’s present overall method of accounting (cash, accrual, or hybrid).
15 a Attach a detailed and complete description of the applicant’s trade(s) or business
(b) Statements required. A taxpayer (including a qualified small taxpayer
as defined in section 6.01(4)(b) of this revenue procedure) must provide the following
statements, if applicable, and attach them to the completed Form 3115:
(i) a detailed description of the present and proposed methods of
accounting. A general description of these methods of accounting is unacceptable (for
example, MACRS to MACRS, erroneous method to proper method, claiming less than
the depreciation allowable to claiming the depreciation allowable);
(ii) to the extent not provided elsewhere on the Form 3115, a
statement describing the taxpayer’s business or income-producing activities. Also, if the
taxpayer has more than one business or income-producing activity, a statement
describing the taxpayer’s business or income-producing activity in which the item of
property at issue is primarily used by the taxpayer;
-29-
(iii) to the extent not provided elsewhere on the Form 3115, a
statement of the facts and law supporting the proposed method of accounting, new
classification of the item of property, and new asset class in, as appropriate, Rev. Proc.
87-56 or Rev. Proc. 83-35. If the taxpayer is the owner and lessor of the item of
property at issue, the statement of the facts and law supporting the new asset class also
must describe the business or income-producing activity in which that item of property is
primarily used by the lessee;
(iv) to the extent not provided elsewhere on the Form 3115, a
statement identifying the year in which the item of property was placed in service by the
taxpayer;
For this, do they just want math showing how I came up with my numbers, e.g.:Enter the section 481(a) adjustment. Indicate whether the adjustment is an increase (+) or a decrease (-) in
income. ▶ Attach a summary of the computation and an explanation of the methodology
used to determine the section 481(a) adjustment. If it is based on more than one component, show the
computation for each component. If more than one applicant is applying for the method change on the
application, attach a list of the (a) name, (b) identification number, and (c) the amount of the section 481(a)
adjustment attributable to each applicant.
Alright...I'm tackling Form 3115 now and I'm unsure what to do here.
I did a lot of research on 3115 for two years unclaimed and got stuck in the exact same spots. DCN 7 is correct I believe. I figured I would end up going back and forth with the IRS on the detailed accounting so I said screw it and am have already collected refunds on my 2013 and 2014 amended returns
Hahaha....sigh. So, I'd just file a 1040X and Schedule E for 2013 and 2014 and call it a day?
Hey, bit of a delay but we talked to a CPA this morning. In my case, the ISO sale was reported on my W2, so I don't have to put in the information from the broker. He said I could do it either way, just as long as it got reported. When I put in the 1099 and leave off the W2 all the numbers are the same as far as income and tax owed. Hope this helps.
All said and done, we're getting a net refund of $300. We owe the state some money, Hawaii isn't kind to people with capital gains.
My 2013 (no losses):1040x, Schedule E (new), 4562 (house 1)
My 2014: 1040x, Schedule E (new), 6198 (every year w/loss), 8582 (every year w/loss), 4562 (house 2)
We are looking to put in solar panels, and I believe that the 30% tax credit associated with this is NOT refundable. Therefore, if we don't owe any taxes or are already receiving a refund, I believe this means we will not get any of the money.
We generally receive a refund (which I know is probably pretty stupid, letting the government borrow money for free, yatta yatta).
So what would we do in this circumstance? Should we modify our withholding so that we would end up owing money so that we could use the tax credit? I understand you can use this credit for up to 5 years if you're not able to use it all at once. Is this correct?
Any advice would be appreciated!
You are incorrect. The amount you get in taxes is a tax credit. Meaning if you buy a system for 30K, then you get a 9K tax credit. Which means to get the full offset you will have to have paid 9K in federal taxes. Not the amount you owe, or get back, at the end of the year, but the amount of taxes you will have paid during the year.
This might explain it a little better. https://www.solarpaneltalk.com/foru.../solar-panels-for-your-home/22245-tax-credits Incidentally, please use that website for getting information about getting solar. The more you know the more the better system you will get and the quicker you will not go with Solar City.
HTH.
Another couple question:
1. On my W-4, since both my wife and I work full time jobs, do we need to set the filing status as Married but withhold at single rate?
Right now, I think both our W-4's are set at "Married".
2. This year, TaxAct and TurboTax online are saying I need to upgrade their package to deluxe in order for me to file a Form 1040. However, previous years, I've been able to file for free even though my taxable income was above $100K, I had foreign tax credit, etc, all which would have required me to file 1040. So confused, really nothing has changed from prior year to this year, so why am I needing to upgrade to deluxe just to file?
So I just remembered something:
For either the 2012 or 2013 tax year, I had created an amended return because I found out that I forgot to file my student loan interest, so due to the income of that year, that amended return would give me something like $160 or so back.
But it turns out, that wasn't my best year in regards to organization. I ended up letting that amended return get buried. The pain in the ass is that I always e-file through turbotax online, but amended returns always have to get mailed. I hate mail - I'm terrible with it. lol
I had created the amended return during the next year's tax return period, so, I think it was on 2013 paperwork.
Can I just send that in as is today? Or do I have to recreate the amended return on paperwork dated this year?