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ZeroAX posted:So this year Arizona added a line at the bottom of their state return which says "Tell us how much stuff you bought online and then add 6.6% to your total tax". I know everyone is supposed to file sales/use tax returns for stuff you buy online but I doubt anyone kept track of what they bought online in 2011. I'm just wondering if this is common in most states or is this something new? I know New York does it since it's (Use Tax) an easy way to get more money.
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Mar 4, 2012 22:30
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ThirdPartyView posted:I know New York does it since it's (Use Tax) an easy way to get more money. How aggresively is New York pursuing taxpayers for Use Tax these days ?
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Mar 4, 2012 22:35
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Hey furushotakeru, I posted this above but I think the question got lost in the thread: How would you recommend I deal with this situation? I was accepted for a National Science Foundation funded REU (Research Experience for Undergraduates) at a major university. This 10 week internship was stipended. At the end of the program, the University cut me a $6000 check that covered said stipend. They provided no information on how to handle it tax wise. I received no W2's from the University. When filing my federal return -- where do I put this? ALSO -- I filed my state taxes last year because I received a refund, but declined to file federal because I was under the threshold of income required to file ($5000 I believe) and would have had to pay taxes. Do I need to file last years federal taxes this year or do I just forget they ever existed?
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Mar 4, 2012 23:03
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seymore posted:How aggresively is New York pursuing taxpayers for Use Tax these days ? NY and CA have become highly aggressive, some of the other states are gearing up as well (WA is starting to crack down a bit on us Oregon taxpayers).
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Mar 4, 2012 23:33
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seymore posted:How aggresively is New York pursuing taxpayers for Use Tax these days ? Well at least a year or two ago there was an automatic $5 or so of use tax added to the state return. If you took this off, Lacerte gave me a diagnostic (no I am not kidding) that stated that the NY attorney general's opinion was that a return that did not leave that $5 on might be more likely to be selected for audit.
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Mar 4, 2012 23:40
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seymore posted:How aggresively is New York pursuing taxpayers for Use Tax these days ? Not too sure, although you are legally obligated to fill that line on the return itself rather than skipping it completely. furushotakeru posted:Well at least a year or two ago there was an automatic $5 or so of use tax added to the state return. If you took this off, Lacerte gave me a diagnostic (no I am not kidding) that stated that the NY attorney general's opinion was that a return that did not leave that $5 on might be more likely to be selected for audit. Elderly folks who don't know what the gently caress a computer is and don't leave their town/buy through a catalog: likely tax evaders. 
Horseshoe theory fucked around with this message at 00:13 on Mar 5, 2012 |
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Mar 4, 2012 23:53
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I'm annoyed now because looking through the past couple years' software I can't find that diagnostic right now. But I swear that I am not making that up, it actually told me that. Perhaps it got removed in a software update.
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Mar 5, 2012 00:16
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furushotakeru posted:I'm annoyed now because looking through the past couple years' software I can't find that diagnostic right now. But I swear that I am not making that up, it actually told me that. Perhaps it got removed in a software update. Do you guys ever feel like we are slowly being turned into Tax Collectors by the various govermental agencies out there ? And that our clients are footing the bill ?
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Mar 5, 2012 00:22
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AbbiTheDog posted:NY and CA have become highly aggressive, some of the other states are gearing up as well (WA is starting to crack down a bit on us Oregon taxpayers). furushotakeru posted:Well at least a year or two ago there was an automatic $5 or so of use tax added to the state return. If you took this off, Lacerte gave me a diagnostic (no I am not kidding) that stated that the NY attorney general's opinion was that a return that did not leave that $5 on might be more likely to be selected for audit.
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Mar 5, 2012 00:27
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BrainDamage posted:ALSO -- I filed my state taxes last year because I received a refund, but declined to file federal because I was under the threshold of income required to file ($5000 I believe) and would have had to pay taxes. Do I need to file last years federal taxes this year or do I just forget they ever existed? If you actually owed taxes last year on the federal return (IE: you had monies owed to the IRS rather than a refund due or a 0 balance at the bottom of page 2 of your Form 1040), you need to file because there is no IRS statute of limitations to go after you for that money if you fail to file. There's also penalties for failing to file and paying the additional amount due.
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Mar 5, 2012 00:31
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seymore posted:Do you guys ever feel like we are slowly being turned into Tax Collectors by the various govermental agencies out there ? And that our clients are footing the bill ? "Slowly"?!
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Mar 5, 2012 00:37
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seymore posted:Do you guys ever feel like we are slowly being turned into Tax Collectors by the various govermental agencies out there ? And that our clients are footing the bill ? Nonsense! Now let me shudder at the thought of the $1,000 per return circular 230 penalty the next time one of my clients talks about their farms.
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Mar 5, 2012 00:58
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AbbiTheDog posted:Nonsense! Now let me shudder at the thought of the $1,000 per return circular 230 penalty the next time one of my clients talks about their farms. The best was the WSJ article from a few weeks ago going "Oh yeah, the Circular 230 disclaimers? They don't mean poo poo and the IRS can still go after you for giving Covered Opinions even if they're not. Haha!"
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Mar 5, 2012 02:53
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BrainDamage posted:Hey furushotakeru, I would treat the stipend as other income on line 21. If you are under the threshold for filing it is impossible for you to owe tax unless you are paying self employment tax, in which case you aren't actually under the threshold since for self employment income the limit is $400 of gross income.
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Mar 5, 2012 03:05
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flowinprose posted:Edit: Also, as another question... if she applied to be considered as a corporation for federal income tax purposes, would that make the profit sharing contribution higher (and overall employment tax lower) by being able to deduct the profit sharing as a business expense prior to calculating the employment taxes? Want to make sure, but by profit sharing, do you mean a dividend distribution of the corporation's net profits?
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Mar 5, 2012 03:21
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ThirdPartyView posted:Want to make sure, but by profit sharing, do you mean a dividend distribution of the corporation's net profits? No I mean the company's contribution into her 401k, which should be deductible as an expense prior to distribution of net profits.
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Mar 5, 2012 03:33
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AbbiTheDog posted:NY and CA have become highly aggressive, some of the other states are gearing up as well (WA is starting to crack down a bit on us Oregon taxpayers). Wisconsin has started a project sending notices to taxpayers requesting them to self-audit their use tax for four years, calculate 18% annual interest, and sign under penalty of perjury. This year, we now have a checkbox to check to say that the taxpayer "certifies" no use tax due. It's not enough that the taxpayer signs the tax returns under penalty of perjury, it requires an additional certification. And this is in a state with relatively low sales and use taxes. seymore posted:Do you guys ever feel like we are slowly being turned into Tax Collectors by the various govermental agencies out there ? And that our clients are footing the bill ? Don't worry. Because our information reporting system of W-2s and 1099s contains so few errors, and the forms are designed well enough to provide all the necessary information for all concerned, Doug Shulman wants to move toward a real-time tax system based on information reporting which will make tax professionals obsolete! Until then, the IRS can use these wonderful information reports to do computer correspondence audits, where it's not even necessary to give the taxpayer (or his or her representative) a human being to talk to! And why would we need that? 1099s are always right. The future of this industry is in representation. And it's not representation any more, it's the art of beating your head against a brick wall. Learn to love it, or find something else to do with your life.
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Mar 5, 2012 04:24
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Missing Donut posted:The future of this industry is in representation. And it's not representation any more, it's the art of beating your head against a brick wall. Learn to love it, or find something else to do with your life. As my company's official representative with the IRS and NYS Department of Taxation and Finance, I can vouch for this. 
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Mar 5, 2012 04:28
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furushotakeru posted:I would treat the stipend as other income on line 21. Thanks for the advice, its greatly appreciated. Update: I contacted the institution who cut me the stipend check, and they said that for tax purposes, this payment is considered a scholarship. I then referenced IRS Pub 970 which says that payment is non-taxable if used to pay for tuition, fees, expenses, etc. The scholarship + my taxable income from 2011 total around $6700. Around $1000 of that initial $6000 stipend was used to pay for tuition. Since $6700 - 1000 = $5700, this means I don't need to file, correct? BrainDamage fucked around with this message at 06:27 on Mar 5, 2012 |
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Mar 5, 2012 05:48
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AbbiTheDog posted:NY and CA have become highly aggressive, some of the other states are gearing up as well (WA is starting to crack down a bit on us Oregon taxpayers). I have been doing taxes in NY for 3 years (Granted, part-time, and only at the HRB/Jackson Hewitt level), and have not once had someone tell me that they owe use tax. I also have not had any of my clients demand my head on a pike, with a deficiency notice from NY stuffed in my mouth, so on that purely anecdotal evidence, they seem to have better things to do with their time than go after someone who buys Christmas presents off Amazon, but as always, your mileage may vary. What I have noticed this year is a lot more people actively trying to game the system. I outright told one person this year that I had severe doubts about the self-employment information he was giving me, had one person get pissed and claim that I did his return wrong when I did 2 schedule C's for him, and had another person walk out after he refused to provide me with a 1099-R for a 401(k) he had cashed out. I know that I have nowhere near the expertise that furu or some of the other tax pros in this thread have, and if I got some of the returns that they have to deal with, I'd probably huddle in the corner of the office and cry. But still, I work for a decent guy, the people I work with are nice, I can pretty much set my own schedule, and 3 months of extra income can come in handy, but I'm seriously thinking that this is gonna be the last year I do this. I feel sorry for my boss, because I think he's gonna lose a lot of decent people between the new IRS tests coming down the line, and the fact that more and more people are just trying to gently caress us over. I don't know how much longer it's gonna be worth it.
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Mar 5, 2012 06:55
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I have a few tax questions. Last year I moved from Texas to Colorado. I was able to buy a house in Colorado and sell my house in Texas in October of 2011. Looking at the HUD Settlement statements of both houses, it appears that I paid for my real estate taxes in Texas at closing for the year 2011. On my house in Colorado, according to my HUD statement, the seller paid me money for county property taxes from 1/1/2011 up to the date of closing (I received money from the seller). When I received the 2011 tax bill for property taxes in Colorado in January 2012, I paid them off in full in Feb. My questions: 1.) As far as I can find, I did not receive any statement that shows I paid my taxes in Texas when I sold my house last Oct except on my HUD settlement statement. Was I supposed to receive a form from the title/settlement company showing these property taxes were paid? 2.) The 2011 taxes for the Colorado house were paid in 2012, am I allowed to write off these on my 2011 taxes or will they only apply to the year in which they were paid (2012)? 3.) Since I received funds from the seller on my house in Colorado during closing for the property taxes, am I allowed to deduct the full amount from my taxes or only the portion from the date after I purchased to the end of the year. IE: 10/27/11 - 12/31/2011
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Mar 5, 2012 11:31
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seymore posted:To expand the explanation just a bit. If you go out and buy one Oriental Rug, keep it in your home for a while, then sell it for a profit then you will pay a capital gain tax on the transaction. If you buy a bunch of Oriental Rugs, and sell them routinely, with the intent that it is your sole or a principle means of support then it will be considered ordinary income. Thanks all, this makes some amount of sense.
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Mar 5, 2012 16:25
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CT made their sales tax rate more complex this year, with an increase on July 1st and a "luxury" tax rate for expensive jewelry and clothing. So now people have to lie four times on the 1040 when they fill out that they owe no use tax. And yet I still don't see how it would benefit anyone to pay it, unless you were planning to run for office at some point. Here is the "we are serious" bolded part of the instructions: quote:If no Connecticut use tax is due, you must enter “0” on Form Although rereading that, shouldn't that be "Failure to file a use tax return OR to remit use tax due"? smackfu fucked around with this message at 16:42 on Mar 5, 2012 |
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Mar 5, 2012 16:38
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Missing Donut posted:Don't worry. Because our information reporting system of W-2s and 1099s contains so few errors, and the forms are designed well enough to provide all the necessary information for all concerned, Doug Shulman wants to move toward a real-time tax system based on information reporting which will make tax professionals obsolete! Until then, the IRS can use these wonderful information reports to do computer correspondence audits, where it's not even necessary to give the taxpayer (or his or her representative) a human being to talk to! And why would we need that? 1099s are always right. One of my clients packed in a CP2000 notice a couple of months ago. The IRS scanners mis-read a printed 1099-MISC they had received as $60,000 instead of $600.00. They were a little upset. But hey, soon we'll all be able to do our taxes online in minutes, right?
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Mar 5, 2012 17:31
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I got a form 1099 from etrade for a stock I sold last year and forgot about after I had filed my 2011 taxes. Apparently the money (net proceeds were about $100) is still sitting in the account. Do I need to amend my 2011 form for this if I haven't taken it out of the account yet? If so, do I have to look up the price I purchased the shares at at subtract it from the number they gave me to get my actual income? Also, the sales price has the $10 comission subtracted, so that does not count as part of the income right?
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Mar 5, 2012 23:46
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In the past that would mean the IRS assumes you got the shares for $0 and now owe capital gains on the entire selling price immediately after try get around to sending you a notice. In theory, now that they get cost basis from the brokers they should be less insane... But they still want their money.
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Mar 6, 2012 02:49
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smackfu posted:In the past that would mean the IRS assumes you got the shares for $0 and now owe capital gains on the entire selling price immediately after try get around to sending you a notice. Unless he also bought the stock in 2011, the basis won't be reported on 1099-B.
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Mar 6, 2012 03:07
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smackfu posted:In the past that would mean the IRS assumes you got the shares for $0 and now owe capital gains on the entire selling price immediately after try get around to sending you a notice. most if not all of the brokers have their heads all the way up their asses, so look for the 1099-Bs to be wrong anyway. and when in doubt, welp, may as well send a notice saying you owe on the entire proceeds. fun!
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Mar 6, 2012 05:35
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freakspeak posted:I have a few tax questions. 1) Nope. The HUD is it. 2) You write them off in the year they were paid (2012) 3) Whatever you paid in calendar year 2011 less whatever credit you were given in escrow against property taxes.
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Mar 6, 2012 07:55
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BrainDamage posted:Thanks for the advice, its greatly appreciated. Depends on whether or not you are a dependent. I would file anyways just to be safe. The IRS won't know that $1,000 of that stipend was used for tuition unless you tell them. Assuming they know about the stipend in the first place.
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Mar 6, 2012 07:56
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furushotakeru posted:1) Nope. The HUD is it. Thank you very much
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Mar 6, 2012 14:23
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In august I began work as a graduate student in WI. At the time my parents advised me to check that I am an Illinois resident (which I was from Jan-Aug 2011) on my W-4. I guess the reasoning behind this was because state taxes in WI are higher than in IL. So, no state taxes have been withheld from my income. I don't really know what forms I need to fill out in order to pay the IL state taxes that I owe. My 2011 gross was ~6600, and my 2012 thus far is ~6100. My parents will also be listing me as a dependent for 2011. I am probably going to fill out a new W-4 as a WI resident so I don't have to worry about this ever again. Any help would be appreciated, this has all come to my attention quite recently. E: http://www.revenue.state.il.us/taxforms/IncmCurrentYear/Individual/IL-1040-ES.pdf Seems to be the correct form? I'm changing my residency so I will probably only need to do this once. Jordanthehutt fucked around with this message at 17:48 on Mar 6, 2012 |
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Mar 6, 2012 17:37
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scribe jones posted:most if not all of the brokers have their heads all the way up their asses, so look for the 1099-Bs to be wrong anyway. and when in doubt, welp, may as well send a notice saying you owe on the entire proceeds. fun! So what do I pay the IRS if I amend my return to include this income? My tax rate times the entire proceeds?
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Mar 6, 2012 23:47
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Binary posted:So what do I pay the IRS if I amend my return to include this income? My tax rate times the entire proceeds? You only pay tax on the gain, if there was one. That is, the difference between what you bought the stock for and what you sold it for.
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Mar 7, 2012 00:04
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furushotakeru posted:You only pay tax on the gain, if there was one. That is, the difference between what you bought the stock for and what you sold it for. The 1099 only lists the proceeds minus comission, so if I find the record of how much I purchased the stock for I subtract that from the proceed to get my taxable profit?
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Mar 7, 2012 00:11
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Binary posted:The 1099 only lists the proceeds minus comission, so if I find the record of how much I purchased the stock for I subtract that from the proceed to get my taxable profit? Yeah, the selling price (less any fees/commissions) - the purchase price. Do you know when the stock was bought (to determine whether ordinary or capital gains rates apply)?
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Mar 7, 2012 02:14
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ThirdPartyView posted:Yeah, the selling price (less any fees/commissions) - the purchase price. Do you know when the stock was bought (to determine whether ordinary or capital gains rates apply)? The stock was bought on July 2010 and sold January 2011. Purchase price was $90.7 including comission, and sale price was 103.1 with comission subtracted. So my profit was less than $15 it seems. Is this worth filing over? Edit: apparently in Noveember 2010 I sold some other shares for $32.40 with comission subtracted. The history on etrade does not go back enough to tell me the purchase price but the profit, if any, must have been tiny on $32.4. I don't recall getting any paperwork for this transaction. Binary fucked around with this message at 02:52 on Mar 7, 2012 |
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Mar 7, 2012 02:48
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Binary posted:The stock was bought on July 2010 and sold January 2011. Purchase price was $90.7 including comission, and sale price was 103.1 with comission subtracted. So my profit was less than $15 it seems. Is this worth filing over? The first stock would be taxed as ordinary income since you held it for only 6-7 months. As for the second transaction, technically if you don't have any record of the adjusted basis for the stock (that is, the purchase price), you are supposed to assume a basis of 0 (that is, pure profit) since the IRS or state/local taxing authority could challenge and demand you prove whatever you declare as capital gains being legitimate. And yes, you should be declaring whatever gains you recognize if you filed a return since that could potentially impact the actual amount that should have been refunded/due by you (I'm assuming you filed for one of those reasons). Horseshoe theory fucked around with this message at 03:33 on Mar 7, 2012 |
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Mar 7, 2012 03:21
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ThirdPartyView posted:The first stock would be taxed as ordinary income since you held it for only 6-7 months. As for the second transaction, technically if you don't have any record of the adjusted basis for the stock (that is, the purchase price), you are supposed to assume a basis of 0 (that is, pure profit) since the IRS or state/local taxing authority could challenge and demand you prove whatever you declare as capital gains being legitimate. And yes, you should be declaring whatever gains you recognize if you filed a return since that could potentially impact the actual amount that should have been refunded/due by you (I'm assuming you filed for one of those reasons). Well none of this has been claimed. I estimate the tax would be .25 (tax bracket) times (15+32) = $11.75. Since I've already filed is it worth filing an amendment for this much money, ie will they come after me for this small amount of tax?
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Mar 7, 2012 03:53
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Binary posted:Well none of this has been claimed. I estimate the tax would be .25 (tax bracket) times (15+32) = $11.75. Since I've already filed is it worth filing an amendment for this much money, ie will they come after me for this small amount of tax? option 1: do nothing. at some point you'll get a matching notice in the mail where the IRS says "hey, someone reported that you sold stock for $120, this is taxable ordinary income, cough it up." then you can write back and say, no, it was capital gains and my basis is so and so. option 2: file an amended return, which is a hassle but means you won't have to worry about it anymore. ~the choice is yours~
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Mar 7, 2012 04:08
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