|
Alright doing taxes for my sister this year. (She made me pie) 8/2010 she took out a loan for online tuition of $7900. 2010 we mistakenly claimed $1188 (which was 5 months payments, +$300 down). She made 12 payments in 2011 of $176 each for a total of $2117 ($898.46 in interest) After talking with my retired tax consultant father in law, I believe that she should have claimed the entire tuition cost on 2010 return, and claim interest costs on the monthly payments for 2011. 1) Is this correct? Should we amend the 2010 tax return with the correct tuition cost to get that straight. She received @2400 back, so this should bump that up a little. 2) Where do I claim the interest for 2011's payments to the credit union for the loan against the tuition? 3) How does this affect the Lifetime Learning and American opportunity credit for 2010 and 2011? btw this is in Washington State, so no state taxes. Also, she never received a 1098 for the tuition, we are going off credit union loan history.
|
#
?
Mar 13, 2012 23:33
|
|
|
|
| # ? May 10, 2024 07:19 |
|
|
I just received an email from FAFSA stating they need my tax return information. They say the deadline has already passed to file, federally. But it's on April 17th this year. Is this a mistake or am I missing something?
|
|
#
?
Mar 14, 2012 06:59
|
|
|
Yinzer posted:I just received an email from FAFSA stating they need my tax return information. They say the deadline has already passed to file, federally. But it's on April 17th this year. Is this a mistake or am I missing something? They are referring to the deadline for filing your FAFSA (March 1, I believe), not your income tax return.
|
|
#
?
Mar 14, 2012 07:41
|
|
|
MrBigglesworth posted:Ok, taxes done and filed. Fed refund of $1675, however, when checking the status, the .gov states I will be getting $5 more for $1680. Did they correct a mistake or should I be concerned? Don't be concerned. For five bucks, just deposit the check when it arrives.
|
|
#
?
Mar 15, 2012 05:02
|
|
|
Just got a late arriving statement from my brokerage indicating an additional ~100 bucks of dividends that I didn't include when I filed my taxes last month. Should I try to get a 1040X out the door or wait until/if they send me a letter?
|
|
#
?
Mar 15, 2012 20:54
|
|
|
I'm sure this may have been covered already, but this thread is long! Thanks in advance. So I'm a dependent in college and I was billed for about 18,000 worth of tuition last year. My income was also about 18,000. I am able to have some sort of deduction from the tuition, right? If so, how much can I deduct? Sorry, I know nothing of taxes!
|
|
#
?
Mar 15, 2012 21:33
|
|
|
I'm looking over unclaimed tuition expenses from old tax documents. Can I claim a hope or lifetime learning credit if I received tax free tuition reimbursement for that year for about %70 of the tuition I paid? Edit: it looks like for 2010 I paid $2554 in tution, claimed all of that as a deduction but not a tax credit, but was also reimbursed $986 for said tuition. I also had $1853 in student loan interest that I did not claim. Is profitable to amend to claim the student loan interest, or did I screw up by claiming all of the tuition as a deduction while receiving reimbursement for it? Binary fucked around with this message at 01:06 on Mar 16, 2012 |
|
#
?
Mar 16, 2012 00:52
|
|
|
FunOne posted:Just got a late arriving statement from my brokerage indicating an additional ~100 bucks of dividends that I didn't include when I filed my taxes last month. Should I try to get a 1040X out the door or wait until/if they send me a letter? For $ 100 either answer is ok. Personally I would just wait. To me, the interest cost is worth less than the time to fill out a 1040x. But you may feel different.
|
|
#
?
Mar 16, 2012 01:07
|
|
|
marsisol posted:So I'm a dependent in college and I was billed for about 18,000 worth of tuition last year. My income was also about 18,000. I am able to have some sort of deduction from the tuition, right? If so, how much can I deduct? Sorry, I know nothing of taxes! To claim either of the education credits (American Opportunity or Lifetime Learning) or Tuition and Fees Deduction, you can't be a dependent. You can't even claim the Student Loan Interest Deduction if you're a dependent. In short, being claimed as a dependent sucks as you get disqualified from most credits and deductions (the same thing is the case with Married Filing Separately). Horseshoe theory fucked around with this message at 01:29 on Mar 16, 2012 |
|
#
?
Mar 16, 2012 01:26
|
|
|
ThirdPartyView posted:To claim either of the education credits (American Opportunity or Lifetime Learning) or Tuition and Fees Deduction, you can't be a dependent. You can't even claim the Student Loan Interest Deduction if you're a dependent. In short, being claimed as a dependent sucks as you get disqualified from most credits and deductions (the same thing is the case with Married Filing Separately). I don't know, getting paid $18k in income might make them claim themselves....
|
|
#
?
Mar 16, 2012 02:06
|
|
|
ThirdPartyView posted:To claim either of the education credits (American Opportunity or Lifetime Learning) or Tuition and Fees Deduction, you can't be a dependent. You can't even claim the Student Loan Interest Deduction if you're a dependent. In short, being claimed as a dependent sucks as you get disqualified from most credits and deductions (the same thing is the case with Married Filing Separately). Sorry, should have typed independent. My mistake.
|
|
#
?
Mar 16, 2012 02:35
|
|
|
AbbiTheDog posted:I don't know, getting paid $18k in income might make them claim themselves....  Only the Qualifying Relative status has a gross income test and had (s)he been claimed on someone else's return, they would be allowed to as a Qualifying Child (since (s)he is still in college and I assume was under 24 as of 12/31/11). Had the parents already claimed him/her, they would have had to amend the return in order to prevent contradictory return information to the IRS and state tax authority.marsisol posted:Sorry, should have typed independent. My mistake. If that's the case, you can claim up to $2,500 using the American Opportunity Credit (the first $2,000 plus 25% of the next $2,000), assuming this is for one of the first 4 years of undergraduate studies (and of that $2,500, $1,000 (40%) can be claimed as a refundable credit, which means potentially more money coming back to you). That's better than the Lifetime Learning Credit, which has a maximum of $2,000, but it's all non-refundable (although if you're doing Masters, job skills, etc. it's pretty much the only option). The Tuition and Fees Deduction is limited to $4,000, which sounds better than the American Opportunity Credit, but it reduces Adjusted Gross Income, which in turn reduces the tax liability and may not actually help you get a better return. IMO, you should complete Form 8917 (Tuition and Fees Deduction) and Form 8863 (Education Credits) or their tax software version and see which one most favorably affects your return (more likely than not it'll be the Education Credit since you don't have a huge income for AGI purposes). Meydey posted:Alright doing taxes for my sister this year. (She made me pie) When was the tuition actually incurred? That's key for the Education Credits/Tuition and Fees Deduction to help with questions #1 and 3. As for Question #2, you would claim it as Student Loan Interest Deduction of up to $2,500 (although it's less) on line 33 of Form 1040 (an adjustment to AGI). Horseshoe theory fucked around with this message at 03:49 on Mar 16, 2012 |
|
#
?
Mar 16, 2012 03:30
|
|
|
ThirdPartyView posted:When was the tuition actually incurred? That's key for the Education Credits/Tuition and Fees Deduction to help with questions #1 and 3. As for Question #2, you would claim it as Student Loan Interest Deduction of up to $2,500 (although it's less) on line 33 of Form 1040 (an adjustment to AGI). I have made sure to call her a dumbass, as she has since stopped taking the online course. Her reasoning is that she cannot stand looking at the computer for 4 hours a night after work. Why the gently caress did she give them 8 grand then? After a little pushing from me, she contacted the course, and they cannot provide a 1098. Only thing they have is her CU statements dating back to Jan 2011(wtf). I'm not even sure they are accredited/not a scam. Tempted to say gently caress it, you're on your own this year, go to HR Block or don't claim education credits.
|
|
#
?
Mar 16, 2012 09:42
|
|
|
ThirdPartyView posted:Had the parents already claimed him/her, they would have had to amend the return in order to prevent contradictory return information to the IRS and state tax authority. Maybe, but if the parents are in high income brackets (or even AMT) they get next to zero benefits for claiming a college student.
|
|
#
?
Mar 16, 2012 16:12
|
|
|
Meydey posted:If I understand this correct from her, she took out a loan with a CU affiliated with an online nursing course(sigh), who made the lump sum payment to the course in Aug 2010. Since then she has paid $176 per month. Well, if she/the credit union paid the provider in August 2010, she would claim on the 2010 return the best credit/deduction (refund-wise) since that's when the tuition was incurred for tax purposes (that is, Box 1 or 2 on Form 1098-T). AbbiTheDog posted:Maybe, but if the parents are in high income brackets (or even AMT) they get next to zero benefits for claiming a college student. That's true, but I was basing my original answer on him/her saying that (s)he was independent. Of course, this whole side tangent is running in circles since the point is moot as (s)he is independent, in any case. 
|
|
#
?
Mar 17, 2012 04:08
|
|
|
I have three questions. 1)I made some money on 1099 last year. I heard that there is a minimum that you have to make in order to have to pay quarterly for the next year. Is that true, or does any 1099 money mean I have to pay quarterly next year? I am trying to decide if I need to actually consider myself a contractor. I make about 15% of my income in 1099. 2)I live in NYC, but work in NJ. I believe that my state taxes are paid to NJ. Do I have to file in both NYC and NJ? 3)If I do need to look for a tax preparer/CPA, how do I find a good one? I have a CFA that is pretty close to my house, who prepares taxes, but I don't know if that's who I should be going to. I also wouldn't mind doing it all online, I just don't know how that works. Thanks for your help!
|
|
#
?
Mar 17, 2012 18:12
|
|
|
sonic bed head posted:I have a CFA that is pretty close to my house, who prepares taxes, Boy, that actually sounds like a great idea. Does he work out of his kitchen?
|
|
#
?
Mar 17, 2012 18:35
|
|
|
sonic bed head posted:I live in NYC, but work in NJ. I believe that my state taxes are paid to NJ. Do I have to file in both NYC and NJ? Yes, you do. You will probably owe some money to NYS/NYC.
|
|
#
?
Mar 17, 2012 20:08
|
|
|
sonic bed head posted:1)I made some money on 1099 last year. I heard that there is a minimum that you have to make in order to have to pay quarterly for the next year. Is that true, or does any 1099 money mean I have to pay quarterly next year? I am trying to decide if I need to actually consider myself a contractor. I make about 15% of my income in 1099. Here is the official IRS publication about the estimated quarterly payment test (and here is the part dealing with the full exclusion). quote:3)If I do need to look for a tax preparer/CPA, how do I find a good one? I have a CFA that is pretty close to my house, who prepares taxes, but I don't know if that's who I should be going to. I also wouldn't mind doing it all online, I just don't know how that works. I'd look an Enrolled Agent (EA) or a CPA before a CFA - being a CFA doesn't mean you have adequate knowledge about the Internal Revenue Code, just a basic understanding of the financial accounting elements from introductory, intermediate and advanced accounting, not tax accounting (the closest part on the exams is deferred tax assets and liabilities which isn't applicable for tax prep). Horseshoe theory fucked around with this message at 20:37 on Mar 17, 2012 |
|
#
?
Mar 17, 2012 20:31
|
|
|
Actually to legally prepare tax returns for pay you now have to be at least a Registered Tax Return Preparer, which involves taking a test from the IRS.
|
|
#
?
Mar 17, 2012 20:41
|
|
|
furushotakeru posted:Actually to legally prepare tax returns for pay you now have to be at least a Registered Tax Return Preparer, which involves taking a test from the IRS. Isn't there some de mininimus threshold?
|
|
#
?
Mar 17, 2012 21:06
|
|
|
furushotakeru posted:Actually to legally prepare tax returns for pay you now have to be at least a Registered Tax Return Preparer, which involves taking a test from the IRS. Ah, didn't realize that went into effect in 2011.
|
|
#
?
Mar 17, 2012 21:07
|
|
|
furushotakeru posted:Actually to legally prepare tax returns for pay you now have to be at least a Registered Tax Return Preparer, which involves taking a test from the IRS.
|
|
#
?
Mar 17, 2012 21:27
|
|
|
Small White Dragon posted:Neat. Anybody know anything about this exam? I'm wondering how much tax knowledge is required to pass. The general consensus is "not much", but it is better than no oversight at all.
|
|
#
?
Mar 17, 2012 21:27
|
|
|
furushotakeru posted:The general consensus is "not much", but it is better than no oversight at all. Is it more than the VITA exam?
|
|
#
?
Mar 17, 2012 21:28
|
|
|
AbbiTheDog posted:Isn't there some de mininimus threshold? No. To prepare any returns for pay you need a PTIN, if you have a PTIN and are signing returns you need to be a RTRP, EA, CPA, or attorney.
|
|
#
?
Mar 17, 2012 21:28
|
|
|
ThirdPartyView posted:Is it more than the VITA exam? I haven't taken either exam so I can't comment. My office mate is planning to take it, when he does I will let you know what he says. He is an EA, just wants to take it so he can know what is on it as he will be teaching a tax class geared toward that test over the summer.
|
|
#
?
Mar 17, 2012 21:29
|
|
|
Thanks ThirdPartyView, and tagesschau for your help. I don't think I can figure out the percentage of my taxes that aren't paid until after I've done my taxes. Sadly this is a lot more complicated this past year than it ever has been before. I definitely need to find a CPA or EA.
|
|
#
?
Mar 17, 2012 23:46
|
|
|
furushotakeru posted:No. To prepare any returns for pay you need a PTIN, if you have a PTIN and are signing returns you need to be a RTRP, EA, CPA, or attorney. um...I thought that was taking effect in '12 or '13. Either that, or I'm about to get a shitload of letters from the IRS.
|
|
#
?
Mar 18, 2012 06:54
|
|
|
Quick question, is it legal for me and my wife to do 'married filing seperately' where she takes all the itemized deductions (mortgage inerest/charity deductions etc.) while I take a standard deduction? I told my wife that this is silly and i don't think the IRS would allow that, but we can't seem to find anything on google that says we can't... If not, would it be legal to file 'married filing separately', but my wife to take all the itemized deductions and I would take neither itemized or standard deductions and ONLY take a deduction for the IRA contribution? My wife calculated this and says we save $1000 more doing this than doing married filing jointly. Apparently we can't take the IRA deductions doing married filing jointly because we're phased out.
|
|
#
?
Mar 18, 2012 07:11
|
|
|
Mister Fister posted:Quick question, is it legal for me and my wife to do 'married filing seperately' where she takes all the itemized deductions (mortgage inerest/charity deductions etc.) while I take a standard deduction? I told my wife that this is silly and i don't think the IRS would allow that, but we can't seem to find anything on google that says we can't... If one spouse itemizes the other must itemize as well, even if that yields a smaller deduction than the standard deduction.
|
|
#
?
Mar 18, 2012 07:28
|
|
|
furushotakeru posted:If one spouse itemizes the other must itemize as well, even if that yields a smaller deduction than the standard deduction. Do you mean we have to split the itemized deductions 50/50? Or can my spouse take all of them while i take basically nothing except the IRA deduction? Mister Fister fucked around with this message at 17:24 on Mar 18, 2012 |
|
#
?
Mar 18, 2012 17:14
|
|
|
Mister Fister posted:Do you mean we have to split the itemized deductions 50/50? Or can my spouse take all of them while i take basically nothing except the IRA deduction? You just have to file an itemized return (even if your itemized deduction will be 0) if your wife is - the IRS made that a rule to prevent tax advantaging by having one spouse take the itemized for maximum benefit while the other takes the standard.
|
|
#
?
Mar 18, 2012 17:29
|
|
|
ThirdPartyView posted:You just have to file an itemized return (even if your itemized deduction will be 0) if your wife is. Ok gotcha thanks.
|
|
#
?
Mar 18, 2012 17:30
|
|
|
I started a new job last month, didn't work last year so no taxes to file for 2011. My new job is a freelance contract gig, so I have to do all the self-employment taxes. Since my income fluctuates from month to month I can't just put away X number of dollars each paycheck. Is there any handy calculator for figuring out how much to take out of each paycheck and put away in a separate account for paying taxes next year? Or should I just make a habit of taking 30% out of each paycheck?
|
|
#
?
Mar 19, 2012 00:25
|
|
|
Aquatic Giraffe posted:I started a new job last month, didn't work last year so no taxes to file for 2011. page 12 http://www.irs.gov/pub/irs-pdf/p919.pdf
|
|
#
?
Mar 19, 2012 02:16
|
|
|
kaishek posted:page 12 Awesome, thanks.
|
|
#
?
Mar 19, 2012 04:14
|
|
|
My wife and I file jointly and we both have income from normal jobs. In the last quarter of 2011 she started doing some side work as an independent contractor. She will probably take in 10k in 2012 from this work but this is a small fraction of our total income. Do we still have to file quarterly estimated payments if we generally get a return and if the 1099-MISC work is not the majority of her income?
|
|
#
?
Mar 19, 2012 05:01
|
|
|
demonachizer posted:My wife and I file jointly and we both have income from normal jobs. In the last quarter of 2011 she started doing some side work as an independent contractor. She will probably take in 10k in 2012 from this work but this is a small fraction of our total income. Do we still have to file quarterly estimated payments if we generally get a return and if the 1099-MISC work is not the majority of her income? You have to pay either 90% of your tax owed for that year, 100% of the tax you paid in the previous year, or owe less than $1000 after all is said and done for the year. Someone can correct me, but if tax on the 10k is less than 10% of your total tax, you should be OK. Otherwise yes you should file estimated payments to avoid the underpayment penalty.
|
|
#
?
Mar 19, 2012 12:45
|
|
|
|
| # ? May 10, 2024 07:19 |
|
|
kaishek posted:You have to pay either 90% of your tax owed for that year, 100% of the tax you paid in the previous year, or owe less than $1000 after all is said and done for the year. Someone can correct me, but if tax on the 10k is less than 10% of your total tax, you should be OK. Otherwise yes you should file estimated payments to avoid the underpayment penalty. You are not correct about the 10% of total note. It's simply based on whether you paid in "safe" estimates during the year. If you're a high-income taxpayer, the percentage to pay in rises to 110%. If you live in a state that charges its own income tax, you might consider paying the state portion in early to increase your itemized deductions if you're not in AMT.
|
|
#
?
Mar 19, 2012 16:43
|
|