US INCOME TAX!

The good news is I'm getting a refund from the IRS. You can shelve the violins, madam (though, if you know "The Devil Went Down to Georgia", you could play that, thanks).

Ah yes, I remember a third of my check being taken for income taxes while living in NYC. God bless Texas and it's lack of state income tax. yee haw!

If any of you (as Ally noted) are in dire taxation straits, feel free to gimme a call - I can't provide violins, unfortunately, but I could sing you some selected works from the songbook of Andrew Lloyd Webber.

Such thinking also doesn't take into account those all-important CREDITS - for instance, the breaks given to full-time students, or other categories I can't think of right now.

Nobody cares, Raposa. Try being one of the many of us that live in NYC and get hit with unreasonably high city, state, and of course the federal. or try being British. Jesus christ.

Pfffft. Try being a resident of Washington "Taxation Without Representation" DC.

(That said, for the first year since whenever, I am getting a refund. Now if I could only print the d*** forms.)

Withholding: the lazy man's friend.

David, what you just said makes absolutely no sense. Do you even know how taxes work at all? Because this isn't even the most tax- unknowledgable bit of your post - what are you talking about with the credits? Whether you pay absolutely nothing per paycheck to taxes or pay your entire paycheck, you still have to file the exact same way, so credits/etc don't matter to withholding. At all. But no, what I quoted makes no sense, so either your skills of explanation have lost you completely in this discussion or you don't understand the tax system at all - if you're withholding enough to get a "big chunk of change", then you wouldn't pay your taxes all at once. How can I discuss this? Jesus. I work in accounting.

Nitsuh, yes, you should withhold if you're not good at savings. Basically, withholding is a good idea to me, but not overwithholding - you put in your correct amount of exemptions on the form and then go from there. Putting in extra to "get a bit more back" is asinine; putting in the right amount because you might spend it is sensible.

No matter what any of us say, NYC or Washington are NOT as bad as Britian. That place is insane with the tax.

I usually break even with withholdings anyway. As it should be.

But the beauty of democracy is that I can pretend my money goes solely to programs I like, and the fighter jets are financed by the vast mid-stream majority of Bush-voters who are actually keen on that sort of thing. Now if only the vast mid-stream majority would learn to apply that imaginative trick to WIC payments and the NEA budget.

(Besides, if I had that extra $60 in interest I guarantee at least $40 of it would wind up with some institution I approved of even less.)

All I know is that I withhold a certain amount from my paycheck in addition to the monies withheld out by the state and the federal government. Every February or so, I sit down with a tax form and a glass of water and do some math. My status as a full-time student lessens the amount of tax I actually owe to the US, thanks to the Lifetime Earning Credit. All this means is I "get money back". Yay for me.

I like Nitsuh's justification - it's the same sort of reasoning I'd apply, had I ever really thought about where the money ends up.

Up there, in my "nonsense" post, I was saying that folks withholding enough extra cash that they end up receiving a significant refund would be better off just investing the extra cash somewhere else and pay the taxes when they're due. From what I understand, that's what Ally & Samantha were saying at the beginning of this thread - to paraphrase, it's STUPID to withhold more money than necessary when you're just losing the opportunity to USE that money. But, then, Ally comes back w/ "if you're withholding enough to get a "big chunk of change", then you wouldn't pay your taxes all at once," which seems to contradict what was stated previously. If that's not the case, feel free to try & set my tax-law-ig'nant self straight.

uh.

What happens if you file late? Should I board up the winders fer the g-men?

Tax extension info

can't wait for my refund :D :D

No, not filing for an extension.

What happens if you simply late?

The problem with filing for an extension is that you have to make an "estimate", and if you can do that, you might as well file.

Witness relocation info

Definitely a lol to be had there + bonus lol w/it being a "dance-theater anarchist's utopia".

I did my federal, but what do I need to do for NY state? When is that due?

april 15.

turb0tax or some other online filing thing will have your shit done in like 20 min. no need for extensions.

another year, another extension.

Don't worry, taxes are voluntary: http://www.youtube.com/watch?v=R7mRSI8yWwg

What happens if you file late?

You end up paying penalties (which accrue like compound interest) on top of any tax you owe. You are much much better off filing an extension. As long as your estimate is close (I think within 10% of actual), you don't have to pay any penalties.

There is no way I can get w/in 10% of actual. I mean come ON. If I can get that close, I might as well file.

Yeah the only reason I've ever filed an extension is because I was missing some critical forms/info (K-1, etc). The one time I ended up paying penalties though, it was really not worth it. I would have been better off overestimating, paying, then filing to get the refund, rather than nearly double my tax burden in penalties + interest.

Willful failure to file is a criminal misdemeanor and in some cases a felony

File even if you owe, even if you can't pay, even if you claim crazy deductions. Get an extension but do not fail to declare income to the IRS. You'll pay either way. IRS keeps track of this and technically when, not if, they find you, you could get audited, penalities, probation, criminal record (fraud is considered moral turpitude).

I paid four months late in 2006; doesn't appear to have been a problem.

Jaymc the IRS doesn't give a shit.xls. That is terrible advice. Filing late is against the law.

Sorry perhaps you meant you filed timely but paid late. If so, my bad.

Whoa--I was thinking that state came a few months after federal. May have to file an extension. I think I have to fill out extra paperwork bc I moved here in the middle of the year.

No, I meant I filed late. And it wasn't meant as advice. Just saying what happened. I wouldn't do it again, but the fact of the matter is that I was fully prepared to be penalized and I wasn't; in fact, I mistakenly overpaid and so I got a big refund check.

History of nonfiling;

Repeated contacts by the Service;

Substantial tax liability after withholding credits and estimated tax payments;

I think I may be OK here, felicicop.

I believe I may GET money back, since I ought have massive tax goodies from the fact that I'm now a homeowner.

Colleague of mine claims 15 deductions, to my 2.

I think i still need to pay last year's, too. Ah well.

Suit yourself.

And although I did work in the Criminal Tax section of the DOJ, felicicop is not my name.

If you ask a question, please do not insult the people who answer.

Apologies, surely.

How many peeps did you arrest who were late by a month on filing, tho?

haha, no worries. They'll probably just ask you to surrender while you're at the County Clerk's office trying to get the tax lien removed from your house.

Surrender what? My anal virginity?

^^Man I wish I had a tasty record like this one back in the days I worked at Justice.

Not to brag this close to deadline, but, I've had my taxes done for the past three years through a program at UMASS. I'm sure one exists at every major college/university that has an Accounting major.
The only requirement is that you're under $100,000.00, basically. And, whatever, if you're making that much money you should hire an accountant.
It's a really good resource for people filing complicated tax returns, and the students get credit, and the more complicated the situation the better for them. Also, it looks great on their resumes.

So, for those who missed out this year, seek out this program at your local college/university! They will do the whole thing for you, help you find loopholes, FOR FREE!
UMASS is still going to file tomorrow night (it's also a 4:30 - 7:00 Tues. - Thurs. program. You do have to wait in line when it gets close to the 15th.). But, whatever, they start offering the services in February.
They also file extensions. This means nothing to anyone on this thread who's panicking - but, I'm just saying...think ahead and find some really good free options!

I ought have massive tax goodies from the fact that I'm now a homeowner

I was counting on this magical bonus but ended up owning over two grand. Granted the owing was based on screwed up withholding following job changes for me and the wife, but the homeowner thing didn't seem to shit for me regardless.

^ to DO shit for me

Yeah, er, I'm kind of over $100,000.00.

I would file online except that I have an employed wife and a home, and I really don't want to fuck things up this year.

$100,000.00 isn't quite as fantastically rich as you might think it is, especially w/a huge mortage on a home in SF.

Yeah in the spirit of not fucking things up, just curious, why are you so reluctant to just take 20 minutes and sign and mail the extension? Even if your estimate is wrong, that can be fixed later.

The problem is that I have no idea how close to accurate the estimate has to be to pass muster.

I would still assume you would be able to hire an accountant. You probably hired a few people to help you close on that home.

Congratulations! It's a great place to live - sorry if my reccomendations weren't pertinent.
xpost

Seriously, any retardedly wrong estimate is better than ignoring the filing deadline altogether. You would have until August to just pay H&R Block to sort it out.

Is it? The IRS is a big black box to me.

DUDE FUCKING GET A CLUE PUT DOWN THAT YOU OWE $20K AND DON'T BREAK THE FUCKING LAW

jesus

how much could you have gotten done towards making a better estimate all this hours instead of freaking about it?

i.e. listen to felicity!

As salient as the emotion might be, I don't think I'm gonna invest in Angry Tom's Advice Cabinet this time o' year, y'know?

They really care about taxpayers declaring income, yes. If you know you made over $100,000 they would like you to tell them about that, yes.

xp THANK YOU TOMBOT. I've half a mind to start scouting out the government foreclosure sales in SF. Kind of nice up there.

1. blatantly break the law

2. adhere to the law in a half-assed fashion

WHICH WILL MAKE THE FEDERAL GOVT MORE LIKELY TO HATE YOU

OH I DON'T KNOW

Look, all I want to know is what are the specific consequences of late filing. I could file electronically tomorrow. I'm just weighing my options.

Calm down Toms. I'm not filing YR return, now.

God you people are so invested in other folks' dramas.

Then you should pay someone to find out all about it for you!

Let's not open up that barrel full of drama right now, aimmy.

you are asking what the consequences are for breaking the law. like, in a big stupid way that you can still avoid. what in the fuck kind of advice did you want? the tax rate for your income is about 20%. Give or take a couple of thousand dollars, would you rather wait a few months for a refund or get audited?

LESS TROLLING MORE FILING

(p.s. Does the house come with a static IP address?)

lol @ taxes makin people so heated

I would estimate 19.5%

Not quite. I'm asking what kind of sedatives I can send you so's to keep you from having a heart attack, Tom.

troll

If I were trolling you'd be on the floor clutching yr chest and punching 9-1-1 on yr cellie.

kind of hoping the IRS goes to town on your rich ass

I'm sorry. I gave you an answer you didn't want. Here:

"it doesn't matter, you can file in july and nobody will give a fuck. I've done it ten times, I've never had a problem."

I don't care if you and your wife go to jail or lose your house (unless it gets sold at foreclosure auction and is a really good deal).

I just prefer that you not swagger around setting a bad example for the impressionable youth of Ip3, crutis borad at al., whose promise-filled lives have yet to descend into a bitter death spirals of ignorance, apathy and, yes, moral turpitude.

xp

Lose my house? Heh. At worst, I get a fine. The only question is how big.

Well I hope the house comes with a static IP address because if it wasn't looking like willful a couple of hours ago, any last reasonable doubt in the mind of any government investigator has definitely been removed. Good job.

Oh, come on felicidrama. We all know that the gov't is far from THAT good.

i just have this 2 say 2 u

smoke weed everyday

Oh yeah? Then how come this former government employee just cashed her giant refund check and you're still trolling?

xp Yeah why not

libcrypt is the graham of tax

luriqua probably filed last week

I love my tax preparer. He was the drummer for the Circle Jerks.

It's all probably irrelevant, since I'm pretty sure I'm due a refund. God I hope so.

Wife last year cashed in stock options and nixed all hopes of fun April bonus.

So this is really the first year I have any idea of how the house will impact real taxes.

Next.

I may just take one of the online filing services up to the point of marriage and use their estimate for an extension.

I have an accountant picked out for next year but she wasn't taking new clients for this year so that's what that drama's all about. Dun think she played drums for any punk bands tho.

Weird thing is that my wife delayed paying last year's taxes for like 8 months and I have absolutely no idea how in the hell she made that work out w/o us in jail.

Because the SOL for failure to file is 6 years and they'd rather have a slam dunk two-timer than an innocent one time mistake, genius.

You had me at "apologies." Not get that extension in or imona hafta smack you with the Tax Manual.

Thanks for the advices. I do appreciate it.

Did your wife forget to claim herself as a dependent?

The story is honestly to complex for me to explain here w/o causing Tom to start streaming blood from his eye gaskets so let me just say that I appreciate everyone's goodwill and cross yr fingers that I can keep outta jail, aimmy.

Only because I like the new nickname aimmy, I will. keep my fingers crossed.

i don't really get why i owe money, i've never owed money before. is this like some new thing, people owe money and that's why we're getting $600 in the mail later?

wtf

This is the first year in a few that I haven't owed money, actually.

nice

my bf owes so much htis year, like $1200 or something ridiculous! sucks

I love the internet:

- dude asks relative strangers for advice on serious tax shit
- people are like SERIOUS TAX SHIT IS SERIOUS
- dude LOLs and takes umbrage at folks losing their relative (albeit justified) shit while asking for more advice
- people are still like SERIOUSLY DUDE THIS IS SERIOUS WTF WITH THE FEET DRAGGING
- dude manages to backhandedly thank folks and lob lame zings @ the same time

Also, if this is the thread where Ally rips into me for not getting a mondo-sized refund, then, well, yeah, I should probably just stop withholding extra $$$ from my paycheck and instead put the money into a savings acct / money market acct / interest-accruing mattress.

rips into me for WHINING ABOUT not getting

I went online at the library and filed in 25 minutes.

Yeah, it took me very little time to figure out that I owe $675 that I can ill afford. Wheeeeeee! Being poor is so cool!

I already put my sob story on another thread. $1800 in federal, state, and quarterly estimated for next year. That's the biggest pain in the ass, that quarterlies are due on April 15th also.

- dude asks relative strangers for advice on serious tax shit
- people are like SERIOUS TAX SHIT IS SERIOUS

I did ask a rather specific question, and instead of getting an answer, which is fine, I just got "OMG DUDE DON'T FUCK AROUND" from the anger-management crowd without a whole helluvalot to back it up. I mean, this isn't exactly HRBLOCK.COM, so it's not like I'm banking on advice here, but there's something to be said for actually answering the question asked.

I have no answers, I finally finished my taxes last night at 8:30 - even though I'd entered everything into TurboTax five weeks ago. I've never waited this long to file.

but there's something to be said for actually answering the question asked.

Which Jaq did, and you blew her off same as everyone else.

No, I took her answer seriously. Look, this whole needless drama would have entered denouement right about there if Tom hadn't had an episode and I hadn't taken the bait.

DO YOUR TAXES DICKCHEESE

yeah, you won't get your stimulus check if you don't file.

Now that's about the most salient point I've heard yet.

TAX BAT!

DO YOUR TAXES DICKCHEESE

This should be the running title of the annual ILX Income Tax Thread.

Can a dumbass Brit ask a stupid question?

Do all US citizens have to file a self-assessed tax return? Not just the self-employed/freelancers/etc? Over here, if you're a regular employee, income tax (and national insurance) is deducted at source. You only do your own taxes if you're self-employed/sole trader/limited company/etc. I was a limited company for 4 years and had an accountant do mine; for a couple of years afterwards I still got the s-a forms through the post so was obliged to do them myself - eventually I was taken off that list and just went back to being a P(ay)A(s)Y(ou)E(earn) drone.

I could just ask the missus, I s'pose.

yes, in short.

Deductions are taken from your paycheck throughout the year (mostly - freelancers and contractors have it a little different) and then on April 15th you check against your shelters and exceptions and whatnot to see if you overpaid and get a refund or if you underpaid and have to make up the difference.

And yes, everyone working (and some who don't) files a tax return.

There are a lot of incentives in US law which are realized as tax deductions. E.g., there's an incentive to own a home, so you can deduct that later and pay less tax. To some degree, US citizens can choose how much is withheld from each paycheck, so that come april, they owe near 0 or get money back, if they estimate correctly.

On the one hand, it would be nicer to have a simpler system. On the other, the tax advantages certainly factored into my wife's my decision to buy a house, so I'm not so keen on giving that up.

I did ask a rather specific question, and instead of getting an answer, which is fine, I just got "OMG DUDE DON'T FUCK AROUND" from the anger-management crowd without a whole helluvalot to back it up. I mean, this isn't exactly HRBLOCK.COM, so it's not like I'm banking on advice here, but there's something to be said for actually answering the question asked.

-- libcrypt, Monday, April 14, 2008 8:07 AM (56 minutes ago) Bookmark Link

What question exactly was not answered? "Will I get caught?"

"without a whole helluvalot to back it up."

I wonder what backup exactly would have been acceptable to our discerning friend. I am sorry we have failed you.

He just needed some accessories after the fact.

True, and got pissed that no chumps besides Jaymc want for the bait.

Hey now.

Anyway, I don't think I'd recommend that anyone file their taxes late (I actually just got off the phone with someone who was contemplating doing them this weekend, and I said, "You should really try to do them today"), but for the entire time in 2006 that I hadn't paid them I wasn't worried about getting carted off to jail or anything; I just thought I'd have a ridiculously high penalty to pay.

Is it safe to say, though, that if you don't owe anything, or you owe very little, that they're not going to be as concerned than if you owe a lot? (I don't know how much libcrypt owes, but seeing as how he makes more than three times as much money as I do, it's possible the feds would be more "interested" in his case than they were in mine.)

Doesn't late filing also flag you for a higher likelihood of being audited? That's my biggest fear of all, taxwise.

the last two years my tax return has hit my bank account on a friday when i've been out of town for rock n' roll reasons. both years it was gone before i got back to chicago.

stimulating the economy a half gram at a time.

please let me know what tax forms I need to acquire that allow me to check off a box marked "for rock n' roll reasons."

Form 1984-VH

I'd think that late filing, or not filing when the IRS has received income info from an employer (or a 1099 from wherever), would throw up a red flag. In my case, I got a letter two years after the fact (my then-husband had 1) filed late 2) not paid any of the owed tax and I had stupidly signed a blank tax return (and just as stupidly trusted him to take of stuff in my absence)). I had to file for innocent spouse relief, but still had to make monthly installment payments for several years to clear the debt (and yes the interest kept racking up the entire time).

when I owed money and was 'required' to pay estimated tax, I never did it. because I never had the money. I just adjusted my withholdings to make sure I wasn't going to fall way behind again the next year (and of course still did, but paid up when it was due). nothing bad happened to me as a result.

note that I'm talking about the 'estimated tax' and not the money i already owed, which i did pay. the esimtated tax thing is bullshit. it's like "well you fucked up, so we're going to make you pay everything in advance this year to make sure you don't fuck up again".

I think that I'm in line to get a refund, so the IRS probably doesn't much care. Also, I think that audits are more worrisome to folks who itemize, which I don't. There's just not that much left to audit.

tax trolls

Don't speak of CPAs like that, gabbs.

One reason I was hoping to delay before my spirit was crushed by the ILX realist squad is that I don't have all the necessary paperwork. I mean it's somewhere in the house, but god knows where. I know, stupid stupid. Please don't hurt me.

File with what you've got, then do an amended return once you find all your paperwork.

That's a good idea.

Are you a tax professional, Jaq, and if so, can I hire you?

http://www.videofindr.net/imgs/724.jpg

i owed a big fat (for me) amount on both fed and state tax, so i paid the former right away and scheduled the deposit for the latter a few days after the 15th, anyone know offhand how bad they hit you w/ interest or penalties for something like that?

It has nothing to do with how much you owe or pay. Failure to file.

What kind of a home owner doesn't itemize? How do you get your mortgage deduction?

xp Yes which is why everyone has been telling you to do that all along. Alternatively it would be very entertaining for you to ignore all the advice and then live blog your freakouts until the statute of limitations runs out.

Nope sorry libcrypt. But I've been through the wringer enough with the feds (and states in a few places) to continue to want to avoid any more trouble with them and hate to see others fall into their nefarious clutches.

What kind of wringer if I might be so bold as to ask?

I love how being a white-collar defense attorney and former DOJ Tax Division Criminal Section prosecutor carries absolutely no persuasive weight with libcrypt. I must not know what the hell I am doing.

Are you dating Tom, perchance?

tax resisters are basically like look at me! look at me!

Fuck you. I worked for Janet Reno, you sexist troll.

I don't know what you mean taxes are 100% voluntary and the 14th amendment was never ratified because Ohio isn't a state. (xp)

libcrypt: you need to file, file an amended return, and if you own a house, I think you have to itemize, or you can deduct nothing about your house. or file for an extension. why wouldn't you file for an extension if you aren't ready? i'm confused

was janet reno a good boss? he seemed like a dick

I am too big a man to have to mail something to the government

e-file niggaz!

I love how being a white-collar defense attorney and former DOJ Tax Division Criminal Section prosecutor carries absolutely no persuasive weight with libcrypt. I must not know what the hell I am doing.

-- felicity, Monday, April 14, 2008 5:45 PM (5 minutes ago) Bookmark Link

he's probably ignoring you?

akm, I may file an extension. I'm just collecting info on my options before I take action.

postmarked on/before the 15th = not late, correct?

try mailing an envelope with nothing in it and claim you forgot to stick the form in.

Yeah, actually you can get a postmark up until midnight in many cities. (xp)

Probably go for the e-postmark, tho.

sweet thx

felicity - i am trying to help someone file a return for 2006. i'm no accountant but i at least understand a little bit about it. they have none of their tax forms from previous years and 2007 was the first year they filed. they did receive a letter saying that they needed to file for 2006. what is the next step?

Postmarked by midnight is fine. Yeah I should probably get back to work paying my mortgage with money from spoiled rich people who are crying about being indicted for tax fraud.

xp I would hire a tax lawyer.

I e-filed this year for the first time for the sole reason that I have my W2s sent to me online but I don't have a printer. Thought about going to the library, but the $8 fee was worth it to stay at home in my PJs and not have to whip out a calculator.

e-Filing is indeed very pleasant. I have this vague notion that I shouldn't e-file any more, since somehow owning a house makes it financially inadvisable not to have an accountant, but maybe I'm wrong.

was janet reno a good boss? he seemed like a dick

-- akm, Monday, April 14, 2008 10:48 AM (26 minutes ago) Bookmark Link

She was really tall. Reno's big thing was using the Internet to catch catch child pr0nographers and sex offenders.

like, even in the workplace?

She was really tall

otm!

I think it may have been a political p.r. maneuver to deflect attention from the criticism of the disproportionately harsh mandatory sentencing guidelines for drug crimes.

Civil forfeitures are fun.

I still love the idea that my inability to suffer fools gladly comes in "episodes"

Can't wait for the May sweeps.

From my delinquencies and fits of avoidance, I learned that if you have a refund coming to you, it is OK not to file (for a certain number of years?), but it is NOT OK if you owe money. I skipped filing for 2 years at one point and then on the 3rd year I filed, got refunds for each year from federal as well as state, received a very lovely chunk of change which I then used to purchase a car and some pretty baubles.

xp I would hire a tax lawyer.

-- felicity, Monday, April 14, 2008 5:58 PM (1 hour ago) Bookmark Link

heh ok zing i guess but i thought you were giving out free advice today

i will do my own research, this person cannot afford a "lawyer"

No because people were rude and I actually do need to work for my paying clients.

KOOL-AID MAN knows what's up

yeah ask that dude. He'll be cool.

yeah i know someone who had refunds due to him but for assorted laziness reasons didn't file for over five years. he finally did and got a big chunk of money back.

listen i still haven't filed my '06 taxes and i'm wondering if i'm SOL with the DOJ and the IRS, or maybe if i can get an extension

vaguely hilarious in the context of your chosen logon

I am very butthurt! From now on I will only dispense edgy, ironic, purportedly, humorous, awful, house, legal, advice, if any.

i owe the feds some scrill but fortunately not much, i was worried it might be more for some reason.

this thread is just making me butthurt at myself for not doing my undergrad in accounting or something

ehhh shit i kept meaning to make planz to have them done, but kept sleeping on it, and now i'll have to whip thru them online. my major expense will be not having anything to itemize against a pile of undeducted freelance income. you pay to be lazy.

owning a house makes it financially inadvisable not to have an accountant

Dude the mortgage deduction requires 1) looking at the form your mortgage lender sent you and 2) transfering the amount in box 2 into the line something or other on your Schedule C. No accountant required. I did our federal and state in under an hour and had both mortgage and student loan interests to deduct. Piece o' cake. So just file dude.

I think what I'll do is just estimate what's on the forms I don't have, file with that, then file an amended return when they turn up, which ought not be too long.

you should just flee the country

Don't pander to my wife OK???

he can't flee the country dude, he OWNS PROPERTY.

You can always flee for 2 weeks or so.

don't talk about his wife that way xpost

http://www.seizedluxuryhomes.com/art/seizedrealestateMain2.jpg

22

Resource for meme early adopters

I filed in January and have already spent my tax return. :)

argh argh argh fuck why didn't i read form 970 before fucking w/ "tuition expenses" and "education credits"

here's a q for any currently-enrolled independent full-time students out there

if you're getting a scholarship / fellowship / grant (not a loan), and the amount is less than the "qualified expense" on the 1098-T, there's no point in even fucking around w/ education credits or tuition expenses because it's essentially saying that 100% of that money went into the qualified expense so it doesn't even need to be reported as wages? (looking at worksheet 1-1 in form 970)

that was my impression when I was on the tuition reimbursement program at my last company, yes. none of my tuition reimbursement payments ever even showed up on my W2.

the 1098-T is the one you get from your school telling you how much you paid them, right?

yeah it tells you how much they gave you in the form of "free money" non-teaching fellowships and how much your "qualified expense" was (ie tuition + processing fees)

i guess the fact that i never received w-2 for this money should have tipped me off but i get really paranoid w/ tax forms and just *assume* that you have to report everything. and then in the 1040 instructions there's a bit about "taxable fellowship funds not reported on a w-2", which i dutifully entered, and then freaked out because the maximum deduction for education is like $4000, so i owed like $500 tax, so i tried to claim education credit, which doesn't work if you're actually doing the education at the same time, but then i finally looked at 970 worksheet 1-1 and realized it's not actually taxable ... fuck, i'm stupid ...

anyway, taxes done A++ would file again

i don't even know why i bothered w/ 1040 this year because i don't have kids, mortgage, interest, dividends, itemized deductions (except the $250 teacher supplies wheeee!) or anything else that would make it worthwhile ...

http://i181.photobucket.com/albums/x18/gr8080/testes.jpg

Everyone gets that code too.

You May Now File Your Form N-13 On-Line!!!
https://dotax.ehawaii.gov/efile/images/HICefile.gif

We ran the numbers, and it looks like your income was too high to get the tax rebate for 2008.

Ironically enough, I just learned that I owe $1000 for (my wife) not filing on time last year.

CA income categories include:

Ottoman Turkish Empire Settlement Payments

Ha ha.

So the key question is whether it's worth filing an amended return. I found all the real tax documents so I didn't have to guess any numbers, but I skipped some deductions I could probably have gotten, like student loan interest-related deductions (not much, since I'm almost paid off).

this year i owed federal for the first time ever :/
still received a small state refund as usual

Farewell 1st quarterly estimated self-employment tax installment, it was nice having you in the bank for a day or two ;_;

CA income categories include:

Ottoman Turkish Empire Settlement Payments

-- libcrypt, Wednesday, 16 April 2008 02:08 (1 hour ago)

iirc, the settlement payments are for a lawsuit won by the descendants of Armenians who fled from Turkey to the US to escape the genocide of 1915

(BTW I was laughing at douchecrypt's tax penalty, not the Armenians.)

Yeah, the Armenian thing is politically very strong in CA, but it's not as amusing if you explain that income category.

I owe tax this year, too.

Where's my six hundo?! Government did its dude wrong.

i don't pay that bullshit

Oh wait, it's separate. Ok, cool.

xpost lol you don't pay your federal income tax? You must be one smooth mofo.

If you don't make any money, you don't have to pay any tax, kenan.

Also, if you are paid in cash (e.g., my housekeeper), it's really up to you how much you wanna pay.

mkcaine is probably total gangsta fat wads of US dolla, so gov't doesn't even know he exists.

it's really up to you how much you wanna pay.

"Oh, hi, Government. Listen I was thinking about how much I want to pay in taxes this year. Don't take this the wrong way, but... how about zero? Is zero ok with you?"

The world doesn't work like a computer, kenan.

Sadly, in many ways it does.

"Hey, computer, I was thinking about all those files I accidentally wiped out. I know you have them there in the basement somewhere... would it be ok if I could just have them back? What do you mean 'grep'? Aw, don't do that to your boy!"

How does it work for a housekeeper or similarly situated worker? If it's your full time job then does the IRS calculate imputed income for you? At my first waitering job I was negligent (purposely so) about reporting tips, but the company reported a small amount of imputed tip income to the IRS when a tipped worker reported absurdly low tips (e.g., $25 for 8 hours).

At my last waitering job the accountants reported curiously accurate imputed tips (this is what really made it fucking painful when a guest would stiff me since I wound up netting LESS than $0.00 income on the check.)

It is kind of up to a cash-paid worker what they will pay each year, but they surely have to stay within credible parameters.

My housekeeper is self-employed and owns a house in San Francisco, so I kinda sorta suspect that she doesn't report very much at all.

.....

it's weird because you seem like a pretty smart person otherwise

Why else would she demand to be paid in cash?

I LOVE TURBOTAX.

I got my refund two weeks ago.

Thanks to TurboTax, I was able to do our taxes last night in just about 90 minutes.

Yes, you too can find it's easier than ever to use TurboTax.

I love TurboTax so much I had its logo tattooed on my ballsack.

I love TurboTax so much I donated my refund to John McCain.

NO REFUND FOR ME THIS YEAR

I love TurboTax so much I got it thru Kazaa

I hate turbotax tbh but I've been spoiled my whole life by having a moms who was a professional tax preparer for years and years

I love TurboTax so much I got it thru Kazaa

For a second I was reading this as "it got me through Kwanzaa."

crap, I forgot about my $16 1099 from Paypal. Should I just ride it out and see if they take my payment or go ahead and file an amended return?

lolz

Um is there another $800 tax refund this year similar to the Bush-era 2008 $800 tax refund? Because we just got our 2009 refund and it's exactly $800 more than the amount we calculated on our tax form.

I think I found the answer myself:
http://www.moneyunder30.com/400-800-making-work-pay-tax-credit

well that is awesome and unexpected

Nice refund, applied to my first 2.5 quarterly estimates for 2011. And my quarterlies only went up $60, even losing the child deduction/EIC.

the change to the self-employed health insurance deduction is pretty awesome.

My refund was $9! I owed from being on unemployment for almost 2 yrs

I owe the state $13, because Haley Barbour needs to Biggie-Size his lunch combo tomorrow.

Should I just pay Turbotax the $20 to file my state return?

Sure.

go for it

depending on the complexity of your taxes and income level, your state might have free filing options.

I can't remember what life was like before Turbotax.

Did ours yesterday, rah turbotax - made even a complex messy year (self employment, employment, unemployment) not too daunting.

those of you in creative or otherwise non-regular-paycheck types of careers might look into an accountant who specializes in that kind of thing. i dunno know common it is, but there's a youngish dude here who runs an accountancy shop pitched to artists, performers, freelancers and the like. he doubles his office as an art gallery in off hours. countdown to quiddities article on the 'hipster accountant' in 10, 9...

uh, i resemble that dude.

Did turbotax on the web, but I'm just going to file both my 2010 and 2011 at the same time. I can't e-file this year, so everything's getting printed out and chucked inna manila envelope.

do not put multiple years' returns in the same envelope when mailing them in. things tend to get lost/misplaced.

I need to remember to send in my state tax payment, all twelve bucks of it.

Ah, good suggestion

Debating regular TurboTax or the $150 version that says it helps with business/self-employment deductions.

for $150 I'll do your taxes.

About six years ago I learned that I owed the IRS about $200 for taxes filed three years earlier. Yet I've gotten returns every year since. Am I to assume that IRS got its money by deducting the amount from my return at some point?

return = refund

xp - that is highly likely.

That's what everyone's told me. But you'd think the IRS would send a letter or something letting me know it'd done it.

they generally do send letters when they do this.

Did you learn about it from the IRS, or from your tax preparer?

IRS.

i've been reading some message boards about the irs and i'm pretty sure you're going to prison? idk

b-b-but I've said nice things about Reagan!

I always do the taxes for my household. I have for my entire adult life. This encourages me to keep our finances quite simple and straightforward, but it also means I fully understand where our money comes from and where it goes. This seems a Good Thing.

lol last time I turn to a bunch of internet hardmen for tax advice -- I'm saving my $20 and copying the stuff that it filled out for me and submitting a hard copy.

gah our tax system really sucks can't believe I owe money MAYBE I SHOULD GET SOME HOUSES AND KIDS

I haven't had a refund in years. But then I don't pay a lot from my check either. I basically pay the minimum to avoid the under payment penalty.

MAYBE I SHOULD GET SOME HOUSES AND KIDS

Houses? Sure. Buy small ones, tho. And if you want to come out money ahead, skip the kids.

xxp - maybe it's because you make a lot of money (relatively speaking), iatee?

If he were making money, he wouldn't be paying taxes. /half-joking

no, it's true -- it is really atrocious (to me) the way passive (investment) income is taxed so low relative to earned income. They should be taxed the same imo.

rly, rly do not make a lot of money

More than $15,000 per annum, amirite?

more...by exactly $3

well... there you go!

the eitc needs to reward poor people *without kids* not poor people *with kids*

People with kids consume more apple pie and play more baseball. This is what makes America great.

dude, if you owe federal tax on $15k a year, either it's from self-employment income or your withholding is seriously fucked.

http://www.businessweek.com/printer/articles/18010-the-people-vs-dot-the-irs

yeah my withholding is messed, but I'm mostly just offended that there isn't a single deduction or tax credit that I (/ the gf) qualify for.

Do you pay student loans? Deduct the interest.

no I don't maybe I'll get some

alfred: statute of limitations for audits is 3 years, and 10 years from date of assessment for a tax liability. i think you're fine.

for COLLECTION of a tax liability.

Thanks! I also read, however, that if you DON'T file taxes at all there's no statute of limitations. So be warned.

there isn't a single deduction or tax credit that I (/ the gf) qualify for

Not even the 'standard deduction'? Even if you can be claimed as a dependent by someone else there is a minimum standard deduction of $950, and you and the gf might qualify for that deduction up to $5800 - presuming you are each filing as single. Ferret out IRS publication 501 and fill in the worksheet on page 24. And don't forget about the 'personal exemption', either!

yeah I meant beyond the standard deduction

not that smaller deductions would matter w/ that in mind, it's still insulting that there aren't any that affect me. my gf could have deducted books n'stuff for grad school but it didn't come close to approaching the standard deduction.

i don't have any figures, but there are many millions of wage earners who don't itemize, so you are in a crowded boat. Mortgage interest is the biggest reason to itemize. Pretty much the only other way to make itemizing pay off for ordinary people is to have a shit ton of medical expenses and who wants that?

so my gf is filing a schedule c for her grad stipend - can we submit that without pay stubs?

that's a good question! but i don't know the answer. no expert, etc.

generally speaking, the documentation is only really going to matter if you're audited, and the audit risk on small potatos tax returns is vanishingly small. i would expect her grad school has a record of it somewhere, so if they try to pinch you, you can probably dig up some proof and beat the rap. just read the irs instructions slowly and carefully before you file to make sure you understand them.

yeah I think a lot of her grad school friends just pretend like they don't have to pay taxes

xp - was it reported on a 1099 Misc? Generally stipends/fellowships for grad school are considered wages (not subject to self-employment tax).

hmm other things I read online suggested a schedule c but maybe 1099 misc is better.

Often these things are reported on Form 1098-T (which reports tuition/fees payments made). The amount in the scholarship/fellowship box will be significantly larger than the amount in the box for tuition/fees paid. The difference would be considered taxable income. However, you can reduce that by relevant expenses.

If she didn't receive a 1099-Misc from the school showing the income, then she shouldn't be filing a Schedule C.

she didn't receive *anything* from her school and just has untaxed pay stubs (and then started getting direct deposit, so doesn't even have many). so we don't really know what tuition/fees even were.

She really needs to check w/her school to see how they reported the income.

hmm would it really make a huge difference if we just ignored the tuition that the school paid to itself?

the issue is where she reports her payments, and what payments were reported. If (as I'm guessing is the case) her stipend was considered a scholarship/fellowship and reported on the tuition statement, then she needs to report that as wages (line 7). If it was considered non-employee compensation, then she would file a schedule C. If she reports the income inconsistently with how the school reported it, the IRS might get "confused."

the school's tuition statement or hers? I believe she is considered an employee, but I think tuition might be 'waived' and not paid for? I will tell her to email the school though.

the school should have issued her a tuition statement. Have her email the school and ask for the 1098-T. What she reports should match what they report, more or less. Sometimes schools' reporting misses things, for example, UC Berkeley (a couple of my clients are UCB grad students) doesn't include some mandatory fees in the fees they report as paid/charged. In that case, she can deduct them from the amount she reports as income.

hmm that makes sense. alright, last question (thanks a lot btw) - I'm looking at the 1099-MISC, and I know she gets to deduct her books from this...but where?

Wait, I think you might be confused. The 1099-Misc is a form she would have received from the school IF her payments were considered non-employee compensation. I would be surprised if that were the case.

in summary:

if 1099-Misc, then Schedule C
if 1098-T scholarship/fellowship > tuition/fees, then line 7 wages

okay yeah I was actually on the school website and was looking at 'Other Stipends' and not 'Grad School Stipends'. would her deductions just be included in regular deductions and thus still not outweigh the standard deduction (being sig less than $5800) - I think that was what I originally assumed.

also on the university's website it says 'Tax Document Issued by the University: None' for grad stipend

what she would do would be:

1. calculate the difference between the amount reported as scholarship/fellowship income and tuition/fees paid as per the form received from the school.

2. figure out what other expenses she had that are deductible from that income. This is one of those special situations that has its own rules/worksheet

3. deduct those additional expenses

4. report that amount (income - school reported tuition & fees - other deductible expenses) on line 7 of the 1040.

xp - that's probably because it's reported on the 1098-T, which all students receive.

keep seeing this as INCOME TAXI

https://www.ecsi.net/img/1098t_2011.jpg

the form should look like this.

the amount in box 5 would include her stipend and tuition payments.

okay I think a lot of the confusion is coming from the fact that they must have sent it to the wrong address or something. I will tell her to get one asap. thanks a lot sarah!

no prob. it's likely it's something she could download, as opposed to waiting for it to be mailed. At least that's how UC Berkeley does it, as you probably know.

not sure, the school site says 'we can mail you a new one', but it's possible they can get it sooner. I think we just figured if something like this existed she would have gotten it.

You can also directly check http://www.1098t.com/ if the school she goes to is registered with the site.

hmm that might be nifty thank you

does anyone know which form I gotta use if I made, say, $400 chump change besides my salary? 1040 not 1040A, right?

(yes, I report every dime, I can't do time)

if it's only $400, you can call it miscellaneous income on line 21. But yeah, that requires the 1040.

@self-employed folks: is there a good rule of thumb for calculating quarterly estimated taxes? my income will probably vary over the course of the year and will likely be quite different from last year, so i don't think just dividing what i payed in 2011 by four really makes sense.

Glad I re-read the rules on the 1099-G because I could have done myself out of a refund.

No help here, I'm afraid. I like the estimated quarterlies that my tax preparer has set up -- they usually leave me with a refund that covers my April payment and most of my June payment, so I don't have to worry about it until the fall, which is when I get my biggest paychecks of the year.

xxp - it depends on how much you net, and what other deductions you have. Self-employment tax used to 15.3%, but now I think it's down to 13.3% because of the payroll tax cuts. So, you have to figure that plus your regular income tax rate.

However, you want to pay at least as much as you owe at the end of this year, unless you know your income is going to be significantly lower.

Was helping a friend with turbotax and found out that it had apparently "upgraded" him to the home and business service for $99 (fed only), which he clearly did not need as a single, childless retail worker with no assets or outside income. What's worse, there is no way to downgrade once you "upgrade." Seems pretty fucked up.

Did it charge him $99 or was he upgraded for "free"?

no it charged him.

well, if it makes him feel any better he can deduct that next year

only if he itemizes deductions

fuck this shit

thankfully my day job cut into what i owed from freelancing, cuz o_O

^^ i was freelancing all year and i've wound up having to dip into what i'd set aside to keep myself afloat these last 3 months, now i'm filing an extension and still owe in the four figures

closer to 5 figures, even

and fucking turbotax trying to rip me off for my last hundred dollars til payday in a month, fuck you

Same boat as you HOOS. I owed 4 figures. Still unemployed. Had to borrow money from my moms to pay for it. Thankfully I lost my last shred of dignity about 4 months ago, so I didn't feel too bad. But that freelancing bullshit is for the birds.

oh yeah, also got stuck paying 80 on HR Block because of the "contractor" thing (should have been 40, but I had to pay again for Virginia, for which I owed and received nothing).

Hey you know that thing where some people will joke with you about well hey you're married now so you lost your freedom but at least you will save money on taxes? Well those people are filthy bastard liars.

heard it was teh gays that ruined marriage or something so its probably there fawlt

It's like having showtunes stolen from us all over again

you need some babies

RIP

https://www.youtube.com/watch?v=UJOjTNuuEVw

HR Block sucks the big one!

Realizing I owed, um, more money than I expected a few years ago thanks to freelancing was a very rude awakening. I started to set aside a little bit from each check for this purpose. Still sucked.

I miss my flexible spending account from my last job. That was a nice little tax break. I still feel like I'm being cheated a little when I have to pay co-pays non-pre-tax. Your qualified medical expenses have to be really damn high before they count as an itemized deduction.

H2, your friend could dispute the charge through his/her credit card.

got this off in time and somehow finagled it so that what I owed to state was offset by what I'm getting back from federal. not entirely positive what I did with claiming a home office deduction was right, but nothing I could find really said otherwise (I had to be available 24/7 at my last job); it saved my ass, thankfully.

if you were freelancing schedule c is your best friend.

tvs become 'computer monitors', for example.

do you actually want to know whether you did it right? it sounds like you don't really want to know.

When I was a waiter at a sort of nice restaurant, a wine rep told us to save receipts for eating out and liquor purchases and deduct them as career education expenses. I did it and the person at H&R Block went along with it. Seems pretty questionable.

that is only deductible if you itemize/file Schedule A. It is a bit questionable - certainly not all restaurant meals and booze purchases would be legit.

When I went on a Roadfood tour with Jane & Michael Stern in 2010, he was in line next to me at the New Mexico State Fair and got a receipt for a piece of pie. I had a bit of a blinding OMG moment and said "everything you eat is a deductible expense, isn't it?" and he just looked at me and smiled real big.

there were a couple years when i made several hundred extra dollars doing music writing. it occurred to me at tax time that, if i'd had a receipt for every single thing i'd ever done for fun in that year i could have made out like a bandit. but alas.

I think the classic question is really not whether you "can" do all that kind of stuff, but whether you're setting yourself for eventual audit. The more you do, the more likely an audit.

I'm starting to feel like a broken record here, but it doesn't really work that way.

Even after my voluminous questionable deductions, I still wound up owing Illinois thousands of dollars every year I was a waiter in Chicago. In the 3 years I worked at restaurant, I never received a single paycheck above $0 b/c every cent of my $4/hr went to taxes. Imputed tips keep everyone honest and they make the tax bill bite you in the ass. Should have paid quarterly, but after 4/16, I re-entered my fantasy land.

jesus

a possibly elitist (on my part!) question: can any of y'all afford a good accountant?!?

Good accountants aren't necessarily that expensive. It depends on what you want him to do with your finances.

alfred OTM ... my accountant is def more expensive than TurboTax and probably H&R Block/Jackson Hewitt, and even though i have a LOL tax law degree i've still had him do my taxes these past four years.

but the accountant i use isn't break-the-bank expensive. it isn't as if i go to one of the Big4 to do my taxes.

Am I wrong to think that an accountant isn't going to do give me an advantage in doing my very simple taxes, which consist of wage income only and no reason to think I have unused itemized deductions?

I just use taxact every year. Takes me about 30 min and I'm done.

I use Taxslayer.com. It's easy and cheap and when it seems to do due diligence to ferret out deductions.

je55e: in that circumstance -- where all you have are W2s and maybe an odd 1099 from a bank or a mutual fund company -- then no, going to an accountant is probably a waste of money & you should just use TurboTax or TaxAct for yer returns.]

however, there were a number of people in this thread who indicated that they were freelancers/self-employed or had tip income. in that case, i think that such people should definitely consider finding a good accountant.

OK. Just wondering if I was missing out on some super secret loopholes or something.

The only good thing about my student loans being in repayment is that I can deduct payments on interest. Wish I could deduct payments on the principal.

Yeah I'll have that comfort for a long time to come.

Freelancers, don't forget your quarterly estimates today.

aaaaaaaaagggghhhhh, so THAT'S what happens when I don't have any business expenses. Jaysus!

Surely you have some - didn't you use your phone/computer? Paper? Internet connection?

Yeah, those usual items were there, but I didn't buy any business equipment or do any business related travel. My quarterly payments were a bit lower than usual and my income was up just a bit. It's not a monster-sized tax hit, but it was noticeable -- especially since I usually applied my refund to my quarterly estimated payments, which covered 1.5 of them. This April I have to pay a few hundred for 2012 AND make the first 2013 quarterly payment in full.

do you have an IRA?

No...I need one.

Never too late, they say.

you have until April 15th to start and contribute to a regular IRA, though you could always do a SEP-IRA, which has higher contribution limits, and if you file an extension you have until the extended date to contribute for tax year 2012.

I LOVE HOW THIS THREAD TITLE IS IN ALL CAPS AS THOUGH TO CALM AND SOOTH YOU THROUGH THIS DIFFICULT TIME

ha what a world!

i am literally filling in a form

i had to read a multipage table until i found my "tax", which i then copied to line 15

What kind of taxes do you have to pay

http://www.irs.gov/Individuals/International-Taxpayers/Taxation-of-Nonresident-Aliens

Looks like you're taxed the same way we are. Wow

Careless tax preparers who throw a typo into your return, overreporting your estimated payments and leaving you with an additional surprise tax bill — classic or dud?

you or someone you paid?

Someone I paid. I've been using this firm for 15 years and this is their first mistake, and the IRS isn't charging any interest or penalty, so I'm going to let it slide this time, but damn, irritating.

could be a lot worse

http://www.taxpolicycenter.org/publications/analysis-donald-trumps-tax-plan/full

I want to post about this but not clutter up the general mourning/analysis thread.

He wants to increase the standard deduction to $25k (for single people, didn't specify for head of household status whether it would be higher and somewhere between single and married filing joint as is traditionally the case). One of my recurring problems with the tax code is that the cost of living in the U.S. is so varied, and the standard deduction seems based on the cost of living in cheaper areas. Having to explain to someone making $25,000 in San Francisco or NYC that the government doesn't consider them low income because you can live fairly comfortably on that in Tennessee, is not something I enjoy as a tax person.

no kidding

I'm trying to find out how much, under the GOP plan, my taxes will actually be reduced, and the best I can come up with is like, $1k. and I'm pretty high upper middle class incomewise. who is going to see all these big cuts?

Everybody who makes over $415,051 per year who will immediately see their tax rate fall from 39.6% to 25%, for starters

Unless they are a sole proprietor, in which case it drops to 15%

http://www.forbes.com/sites/anthonynitti/2016/11/09/president-trump-what-does-it-mean-for-your-tax-bill/#7cc751c4b8b6

That's how you stick it to the elites, duh.

see the thing that was confusing about the trump tax plan is that it mentions "pass through businesses" - a sole proprietor is not a pass through business. Partnerships and S-Corps are pass through businesses. Does he actually mean pass through businesses or all businesses?

if trump doesn't know, then no one else knows. I'm pretty sure he has no clear idea what he's going to ask for, let alone what he'll get from Congress.

the Forbes piece has different information than the taxpolicycenter one. The bracket rates have changed.

Both analyses are arguing that it will encourage people to be independent contractors and not employees, which I don't think is entirely true, and is dependent on income level. Self-employment tax isn't going to go away under this plan, so for those who actually have self-employment income from their businesses, it's the 15% tax + 7.65% (the employer portion of FICA taxes). I guess that's great if you're in a high tax bracket, but for people who would be in the lower brackets, it wouldn't make much difference.

I feel like the reason this point is in his plan is not to encourage small businesses and entrepeneurship, but to give rich real estate investors tax breaks on the income from Real Estate partnerships that currently doesn't benefit from reduced capital gains rates.

will I still be able to deduct tons of shit because I'm a musician and count everything as a 'business expense' outside of my actual high paying day job?

that's all I care about

Yes, and I'm sure the Trump Administration will reduce funding to the IRS for examinations, audits, and enforcement as part of its starve the beast strategy.

another article that only addresses a couple points of the plan

http://www.npr.org/2016/11/13/501739277/who-benefits-from-donald-trumps-tax-plan?