The 2015 Annual ATOT Income Tax Thread

[swamplizard]

1 whole day, don't get in a hurry, ya got time to splurge like a child with a $20 bill.

 

[duragezic]

Although my return is very simple, I have been using a 1040 because it is needed to deduct student loan interest. On most sites, the need to use a 1040 brings you up a tier to a higher cost return. It is probably getting to the point where the tax savings I get from deducting student loan interest are less than the increase in cost for the return. I am paying less student loan interest, and there is either a fairly new rule or income based where the amount you can deduct is now a %.

So if I paid $600 in interest, I might only be able to deduct $100 of that, which the tax rate on that doesn't work out to much. I remember last year the % hit being very high.

edit: Well it looks like it's not possible anymore. Looking at the 2014 return, I was just under the income limit to still deduct it, thus why the % deductible was very low. Now it seems the AGI is too high to deduct anything. Freaking scumbums.

 

[lupi]

Started working on mine yesterday. Then I found out we're all getting screwed by even more restrictions on the free to file sites. Guess i'll be finishing next week and do the old hand file method.

 

[Banana]

found it

 

[udonoogen]

Wife/I moved from this primary residence on 4/30/2015 and converted it into a rental mid-year. Tenants moved in 5/1/2015 and stayed through the year.

1) To confirm, on Schedule E, since we lived in the home through April are these personal days and so we'll need to separate the property tax and mortgage interest between my 1040 and Schedule E proportionately, correct?

2) Taxact offers MACRS Depreciation on more than just the structure. The home was built in 1986 and has mostly original equipment that has depreciated (I added an older washer/dryer, when the tenants moved in), would it be prudent to depreciate these (or have they already depreciated)?

3) To also confirm, I use the lesser of either:
a. the FMV of just the *house/"improvement"* (not the land) when I started renting (in which case I'd multiply the ratio of house:land+house from my property tax by the current FMV)
b. the value of the house/improvement (not the land) when it was purchased

Is that correct?

I've always done my taxes on TaxAct and never had to pay before. We did have another kid in December 2015, which I thought would help, but I also changed my deductions so I withheld $3K less than I usually do... which may have screwed things up a little. Since they're asking for $$$ this year, I just want to make sure that it's totally right. I remembered ATOT always has tax help. I am very appreciative of your insight. Thanks!

edit: I went ahead and submitted. worst case scenario the IRS audits me. but i actually paid ... so i think i'll be okay. hopefully i didn't OVERpay.

 

[tcsenter]

Anyone have some expertise on qualifying dependent tests and definition? Specifically, do Social Security Disability (SSDI) payments to a permanently disabled adult child living with the parent year-round (all which is tax exempt), qualify as income from which the disabled person is presumed or expected to "provide more than half of their own support"? Are SSDI payments considered "their" income or is it benefits provided by the SSA?

I keep seeing unclear or inconsistent guidance on this topic from one source and publication to the next. Disabled person needs no assisted care or caregiver. So:

- Dependent lives with parent year-round
- Dependent has more than $4000 "income" per year but ALL is from tax-exempt SSDI payments
- NO other types of assistance except for the Medicare coverage that comes with SSDI (NO housing subsidy, vouchers, utility assistance, food stamps)
- Permanently disabled (non-care situation)

 

[piasabird]

Tax brackets are worthless information. With all the deductions and credits they mean nothing.

I still am having problems getting a Form 1095-A. I tried going to Healthcare.gov and was able to accomplish nothing. Why is it everything for Oblamer health care is coming our late or not at all and messing up everyones taxes? Obama and the Democrats are complete failures.

 

[zinfamous]

question about W4 for 2016 withholding adjustments.

For the federal tax portion to calculate income & expected withholding, I included FICA within the total federal tax paid and recent paystub tax paid...

I am supposed to ignore FICA, correct, and only calculate the fed income tax for this?


...and if so, is that because FICA is a flat rate for everyone, regardless of income?

TIA