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AbbiTheDog posted:Be careful on this - the kiddie tax rules might apply and make the returns more complex than the OP has realized. In that specific instance, would it be the best idea to always transfer cash instead of stock, and then purchase stock within the custodial account? I know absolutely nothing about the tax consequences of that type of account, at what point they occur and for whom.
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Jan 3, 2013 19:54
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ixo posted:In that specific instance, would it be the best idea to always transfer cash instead of stock, and then purchase stock within the custodial account? I know absolutely nothing about the tax consequences of that type of account, at what point they occur and for whom. As my management professor always said was the best answer to every question - "it depends." It's beyond the scope of a free internet forum.
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Jan 3, 2013 20:27
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I know this is probably asked nonstop here (maybe the OP can add something in the OP) but what are the most common and most significant itemized deductions? I bought a house in 2012 and I want all the money I can get. I know I have: Mortgage Interest Property Taxes But what else is there? What are some other completely legal but often forgotten deductions?
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Jan 3, 2013 22:37
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TheReverend posted:I know this is probably asked nonstop here (maybe the OP can add something in the OP) but what are the most common and most significant itemized deductions? I bought a house in 2012 and I want all the money I can get. Did you pay mortgage insurance? Did you take a bunch of items to goodwill when you moved? If you're self-employed, did you pay any estimates to the state? Those would be the quick and dirty.
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Jan 3, 2013 22:57
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TheReverend posted:I know this is probably asked nonstop here (maybe the OP can add something in the OP) but what are the most common and most significant itemized deductions? I bought a house in 2012 and I want all the money I can get.
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Jan 3, 2013 23:03
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Small White Dragon posted:State and Local Income Tax *OR* State and Local Sales Tax. (You can't take both.) You can't tell me what to do.
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Jan 4, 2013 00:40
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Admiral101 posted:Kickstarter isn't anywhere close to a qualified charity. Not to mention you're buying a product in most cases. There's nothing to deduct. I don't think there's anything stopping non profits from using kickstarter as a platform to receive donations, though I'd doubt they are common. Pet project of some dude, I totally agree nothing to deduct. A "friends of" organization trying to pull together money for park improvements or whatever seems like it would be treated the same using kickstarter or not, right? /Not tax side Edit: Looked it up and they don't allow any non profit activity, so please disregard my above point. N.N. Ashe fucked around with this message at 02:30 on Jan 4, 2013 |
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Jan 4, 2013 02:12
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Small White Dragon posted:State and Local Income Tax *OR* State and Local Sales Tax. (You can't take both.) Isn't one of these deductions going away this year or next or did they extend it?
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Jan 4, 2013 06:42
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Epi Lepi posted:Isn't one of these deductions going away this year or next or did they extend it? EDIT: I checked the bill and it was extended for two more years. Anyway, my understanding was the most common (biggest?) itemized deductions were mortgage interest, state & local taxes, and charitable donations. Small White Dragon fucked around with this message at 08:59 on Jan 4, 2013 |
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Jan 4, 2013 08:56
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AbbiTheDog posted:Did you pay mortgage insurance? Yes  Some small ones. N/A Thanks. I'll see if I can remember what I donated (most likely not worth much).
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Jan 4, 2013 18:27
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Small White Dragon posted:So now that the tax bill has been approved by the House and the Senate, how long until everyone can get rolling? Lacerte claims to have an update lined up for next Monday that should incorporate the changes for calculations. Not sure when the IRS will issue the final versions of the various forms so that returns can actually be filed. They sent out an email last month saying that they were actually having their programmers work on the three most likely scenarios so that they would be able to quickly issue an update patch once something passed (or didn't pass). So it likely was mostly an issue of plugging in a few specifics and running with what they had already prepared. In other words, for once in their loving life Intuit is acting like a multi billion dollar international public software company that I pay more than $10K a year to and not some mom and pop outfit running out of someone's garage.
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Jan 4, 2013 19:02
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furushotakeru posted:Lacerte claims to have an update lined up for next Monday that should incorporate the changes for calculations. Not sure when the IRS will issue the final versions of the various forms so that returns can actually be filed. Latest note said efiling effective 1/22/13.
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Jan 4, 2013 22:20
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AbbiTheDog posted:Latest note said efiling effective 1/22/13. That's the IRS's date, nothing to do with software.
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Jan 5, 2013 00:06
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furushotakeru posted:That's the IRS's date, nothing to do with software. Just like Santa, I will believe until proven otherwise.
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Jan 5, 2013 00:37
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My wife is a resident of Puerto Rico (no state taxes) and I'm a resident of Massachusetts (lots of state taxes). Is it still possible for us to file jointly even though we don't pay the same state taxes?
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Jan 5, 2013 17:15
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shodanjr_gr posted:Thanks for this. The "teacher/professor/researcher" part of P519 seems so broad that even a researcher could be covered under the "teaching" clause. I claimed this last year and my refund went through fine and I wanted to get some additional backing before doing it this year again. This type of exemption, since it relates to personal income from services, does not require me to file a Form 8833, right? Quoting myself in an effort to get confirmation on this. I had a CPA on another forum tell me that I am not entitled to this exemption which kinda has me worried.
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Jan 5, 2013 21:08
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The company I work for is based out of IL, I am considered a satellite office in SD which has no income tax. Due to an accounting error I was forced to pay IL income tax after a payroll change and they now have ~$500 of my money. In the past when it was a larger amount I had to file a Schedule NR form which stated I made my wages in SD and to give me my money. Looking at Schedule NR it says "If you are a nonresident you must file Form IL-1040 and Schedule NR if your Illinois base income from Schedule NR is greater than your Illinois exemption allowance on Schedule NR." Looking further into exemptions it says that the exemption is $2000 for someone filing for themselves. Does this mean since it's only around $500 I can just tell them to give me it all back on my 1040 or do I still need to file a Schedule NR?
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Jan 6, 2013 16:51
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Tax return question coming from a Graduate student! My school pays my tuition, and they do this by just depositing the tuition money into my bank account. It is counted as income. They tax this money before they give it to me (which screws me over at the time because the amount they give me is less than what I owe by about $800 and this happens twice a year) but I get pretty much all that money back come tax time. Last year I received a federal tax return of $2,222. The year before that was pretty much the same. This year I got my 1098-T form (the tuition statement one) and box 2 says that I paid $4591.30 in tuition and related expenses. This is not accurate as I actually paid $6,860.65 in tuition and other expenses. I have statements from the university and from my bank showing all the payments that I made, and it adds up to $6,860.65 in 2012. Anyway, TurboTax wanted me to give the number on the 1098-T form ($4591.30) but then asks if the amount of tuition I paid was different than what was on the 1098-T which it is by a significant amount. So I put in the actual amount I paid ($6,860.65) and it gave me some sort of error because the two numbers don't match. If I use the amount on the 1098-T, my tax return is significantly less than what I got last year. If anything, I figure I should get more money back this year since tuition went up. But it won't let me use the amount of tuition I actually paid, only the amount on the 1098-T. What do I do? I was expecting to get back around the same amount I got back last year. My income is identical as in 2011 as I am on a research stipend that does not change.
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Jan 7, 2013 17:58
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razz posted:Tax return question coming from a Graduate student! The 1098-T might be inaccurate. I'd just put in the actual number you paid in eligible costs. Edit: I've never had the IRS send a matching a notice for putting the actual number.
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Jan 7, 2013 19:04
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I got married approximately 10 days ago. I hadn't considered tax implications until someone joked that it was a "tax wedding" or something like that. My wife is in graduate school 1,500 miles away and has minimal income. Should we be opt for the married but filing seperately option (or jointly?), keep it simple and file as singles for the year, or do i do head of household? Are there any comprehensive sites that give breakdowns of these options and their potential affects on our tax situation? Thanks in advance!
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Jan 7, 2013 19:32
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Tortilla Maker posted:I got married approximately 10 days ago. I hadn't considered tax implications until someone joked that it was a "tax wedding" or something like that. File jointly. Your only options are joint or separate, and you will pay more tax filing separate.
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Jan 7, 2013 19:41
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razz posted:Tax return question coming from a Graduate student! AbbiTheDog posted:The 1098-T might be inaccurate. I'd just put in the actual number you paid in eligible costs. Even if they did send a notice, if you have the appropriate backup all you have to do is send copies of those papers back to the IRS, maybe with an explanation letter for good measure and you should be fine. Just hang on to those backup documents for at least 3 years and you should have no worries.
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Jan 7, 2013 20:26
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AbbiTheDog posted:The 1098-T might be inaccurate. I'd just put in the actual number you paid in eligible costs. I was using Turbo Tax and it said put in the number from the 1098-T, so I did. Then it had an option that said "If the amount you paid is different than the number on the 1098-T, enter it here". I did that. It gave me a warning message saying the two numbers didn't match and wouldn't let me continue! Is it legit to put in a number that isn't the same as what is on the 1080-T if the number I use is what I actually paid and I have statements to prove it? I'm in the process of getting in contact with some of the financial aid people at my school so hopefully they can help me.
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Jan 7, 2013 20:27
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razz posted:I was using Turbo Tax and it said put in the number from the 1098-T, so I did. Then it had an option that said "If the amount you paid is different than the number on the 1098-T, enter it here". I did that. It gave me a warning message saying the two numbers didn't match and wouldn't let me continue! Is it legit to put in a number that isn't the same as what is on the 1080-T if the number I use is what I actually paid and I have statements to prove it? I'm in the process of getting in contact with some of the financial aid people at my school so hopefully they can help me. Yes, you should put what you actually paid. This sounds like a bug or a CYA move by Turbo Tax.
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Jan 7, 2013 20:46
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That's kind of what I figured, I just didn't know if it would be a bad move to put down a number that is different than on the 1098-T. Thanks! Oh and I don't want to make another post, but is there any credits or deductions that are not available this year that were available last year that would cause my tax return to be less? My income is practically identical as in 2011. razz fucked around with this message at 21:12 on Jan 7, 2013 |
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Jan 7, 2013 21:00
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baquerd posted:Yes, you should put what you actually paid. This sounds like a bug or a CYA move by Turbo Tax. Yeah, I'd put in the actual number where the "1098-T" input should go. There are some things the IRS computers tie out, not sure this is one of them, since the IRS knows that number can be a) grossly inaccurate, and b) doesn't include out-of-pocket costs incurred by the taxpayer.
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Jan 8, 2013 00:02
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AbbiTheDog posted:Yeah, I'd put in the actual number where the "1098-T" input should go. There are some things the IRS computers tie out, not sure this is one of them, since the IRS knows that number can be a) grossly inaccurate, and b) doesn't include out-of-pocket costs incurred by the taxpayer. 1098-T is also reported on an accrual basis while taxpayers report on a cash basis. Amounts on the education credit form can also include required course fees and materials, which also won't be reported on the 1098-T.
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Jan 8, 2013 00:04
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furushotakeru posted:1098-T is also reported on an accrual basis while taxpayers report on a cash basis. Ahh, that's what it was. Couldn't remember.
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Jan 8, 2013 00:22
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So, my sister and I inherited a lovely property in upstate new york. So lovely no bank would write a loan against it, so when we were selling it we were forced to do a seller financed mortgage or hold it. We sold but now I'm dealing with the tax implications. Anyhow, I reside in DC. My sister resides overseas but for US state purposes files in MD. Do we need to file NY state income taxes for the income we get from the interest on this mortgage?
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Jan 8, 2013 16:57
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I receive all of my income through a stipend, as I am a full-time graduate student. I do not receive any forms of any kind. I've reported this in previous years as "fellowship income" without much issue using TurboTax. This year, I made a contribution into a Roth IRA. TurboTax throws an error at me that the entire contribution is in excess because I have an "earned income" of $0. Some brief Googling suggests that my fellowship may not, in fact, count as earned income, and thus the entirety of the contribution I made to the Roth is due a 6% excise tax. This is very much a "are you loving serious?!?!" moment for me. Please tell me I am wrong. If not, can I do something to get around paying the $300 I can't afford, or am I utterly hosed?
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Jan 8, 2013 21:13
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disheveled posted:I receive all of my income through a stipend, as I am a full-time graduate student. I do not receive any forms of any kind. I've reported this in previous years as "fellowship income" without much issue using TurboTax. This year, I made a contribution into a Roth IRA. TurboTax throws an error at me that the entire contribution is in excess because I have an "earned income" of $0. Some brief Googling suggests that my fellowship may not, in fact, count as earned income, and thus the entirety of the contribution I made to the Roth is due a 6% excise tax. Withdraw the Roth IRA funds you contributed in 2012 by 4/15. Should be fine.
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Jan 8, 2013 21:37
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I have a job offer ( woo) and a potential job offer. The latter would be contract-to-hire for six months and the former regular full time. Contract job would be $5k gross more depending on whether I can negotiate it. How much would that work out with the different tax rates for independent contractors/is there anything else it would be good to know on that front?
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Jan 9, 2013 00:51
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You may pay more in taxes overall with the contract job because you'll be paying 100% employment taxes, where a w4 employee has half covered by the employer. You may not be able to deduct as much as you'd like or enough to match your take home with the contract job, but the finer details like the actual amount of income in question might sway it. It's my understanding that it typically doesn't. I'm not an expert by any means, though.
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Jan 9, 2013 01:50
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I doubt the extra $5k would even cover the FICA+Medicare and benefits provided by the full time position, but it really depends on the details.
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Jan 9, 2013 04:28
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fivre posted:I have a job offer (  and ask, What if the contract position turns into a full-time position? Would it still be covered via these independent contractor rates? In terms of overall benefits, does the FT position offer health care and such, because private health insurance (in the US, anyway) could well exceed $5k during the contract period, as could out-of-pocket medical expenses in lieu of health insurance depending on HSA programs and the like.vvvv Wrong thread, but since the $5 depends on negotiations anyway, I think the most important question you can actually ask is, Which of these jobs am I more likely to enjoy? PhantomOfTheCopier fucked around with this message at 06:11 on Jan 9, 2013 |
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Jan 9, 2013 05:00
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PhantomOfTheCopier posted:I shall I'd be a regular FTE with the employer paid FICA and whatever, health benefits too. I'd be okay during the contract period through my parents' insurance and HSA, it'd just be the extra taxes I'd have to worry about. Job security is iffy: I'm still young, single, and somewhat confused about my future, so part of me says go for it! It gives you a definite point in the future to make some career decisions! but another part is more tired of moving around.
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Jan 9, 2013 05:41
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Here's a tricky one... I paid for some dental work in December with an HSA debit card. I just got a check in the mail from the dentist's office for $50, saying that they charged me the wrong amount and insurance ended up paying more than they expected. Thus the refund. My question is this: Will this cause me problems at tax time? Which tax year? What do I do with the check? I have no idea. 
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Jan 9, 2013 06:27
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fivre posted:I have a job offer ( Is this a true 1099 independent contractor gig, or a W-2 contracting gig through a staffing firm like Volt or Robert Half?
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Jan 9, 2013 19:08
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skipdogg posted:Is this a true 1099 independent contractor gig, or a W-2 contracting gig through a staffing firm like Volt or Robert Half? I'm guessing 1099, since it's direct through the company I'd work at.
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Jan 9, 2013 19:30
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AbbiTheDog posted:Just like Santa, I will believe until proven otherwise. Whelp, IRS is now saying 1/30 due to the bill that was passed on 1/1. Better than 2/14 or "late March" though?
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Jan 9, 2013 19:41
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