Oh hi it's that time of year again [2011 Taxes Thread]

bowen

I would say no, only one person can claim it.

localh77

Shady3011 wrote:

I'm trying to help out a friend who's in a weird situation with his taxes this year. Last year, he helped out his girlfriend's mom take out a home loan for a new house since he has a better credit score. They are joint owners of the house, but he doesn't live there. He also hasn't paid for anything involving the home (interest, property taxes). My question is, can he write off those expenses even though he isn't paying them? The mom got a 1098 and 1099-S with his and her name on it.

As I understand it, he could take those expenses as long as the mom doesn't also (as Bowen said, only one person can take them). But since she's paying everything and living there, she's really the one who is entitled to take them (she's called the "Beneficial Owner"). So unless they have some sort of agreement where they let him take the expenses (which may make sense if he would get a bigger tax benefit), then I'd say the mom should take them.

bowen

I also think you need to prove it's your primary residence too. So if they both claimed it and someone got audited, the mother would win and the dude would probably get fined.

Drez

Quick question: I already filed through TaxAct like two weeks ago. Yesterday, I received a W2C stating that local withholding was not on my original W2. On my original tax return, I ended up owing city/state about $400. I haven't paid yet. But it looks like I paid about $300 in local taxes that I didn't put on my return, so I should really only owe about $100.

Since I haven't paid the taxes yet, is this as simple as filing a state tax amendment via TaxAct, adding in my local withholding? Or what?

tyrannus

Drez wrote:

Quick question: I already filed through TaxAct like two weeks ago. Yesterday, I received a W2C stating that local withholding was not on my original W2. On my original tax return, I ended up owing city/state about $400. I haven't paid yet. But it looks like I paid about $300 in local taxes that I didn't put on my return, so I should really only owe about $100.

Since I haven't paid the taxes yet, is this as simple as filing a state tax amendment via TaxAct, adding in my local withholding? Or what?

I really think it's that simple. I mean, you didn't itemize right? so you couldn't deduct state taxes? If not, then it wouldn't change your federal return. So, just need to amend it for NY.

Drez

tyrannus wrote:

Drez wrote:

Quick question: I already filed through TaxAct like two weeks ago. Yesterday, I received a W2C stating that local withholding was not on my original W2. On my original tax return, I ended up owing city/state about $400. I haven't paid yet. But it looks like I paid about $300 in local taxes that I didn't put on my return, so I should really only owe about $100.

Since I haven't paid the taxes yet, is this as simple as filing a state tax amendment via TaxAct, adding in my local withholding? Or what?

I really think it's that simple. I mean, you didn't itemize right? so you couldn't deduct state taxes? If not, then it wouldn't change your federal return. So, just need to amend it for NY.

Thanks, that's what I figured. And no, I did not itemize.

Also, do you know if you can pay your taxes online after filing? Like if I amended tonight but want to pay Saturday, can I use a credit or debit card on Saturday? And how/where? The NY State tax site is kind of confusing.

Also, my corrected W2 is fucked up and still missing NYC withholding, despite their cover letter. I had to go to my final 2011 paystub.

tyrannus

Shady3011 wrote:

I'm trying to help out a friend who's in a weird situation with his taxes this year. Last year, he helped out his girlfriend's mom take out a home loan for a new house since he has a better credit score. They are joint owners of the house, but he doesn't live there. He also hasn't paid for anything involving the home (interest, property taxes). My question is, can he write off those expenses even though he isn't paying them? The mom got a 1098 and 1099-S with his and her name on it.

This is trickier than it might have seemed. No, he can't write off those expenses because he hasn't actually paid for them. If he paid for, like, half, he'd be entitled to the deduction, provided he include a note on his Schedule A that he paid half and the SS# of the person on the 1098.

Also, you can deduct mortgage interest paid on both a primary and secondary home.

Source:
http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=26&PART=1&SECTION=163-1&YEAR=1998&TYPE=TEXT

Shady3011

Thanks for the help, guys. I'll let him know not to deduct those unless the mom and him come to some kind of agreement.

MHYoshimitzu

I have an interesting situation I was hoping someone might be able to answer. Please note I've never filed a tax return by myself before, as I was a dependent until 2011, so my father had always filed for me because it was simple enough to do.

So, in February of last year, I moved in with a friend in Delaware. Before that, I lived with my parents in Pennsylvania for 2010. So for 1/12 of 2011, I was in Pennsylvania, 11/12 I lived in Delaware.

Now, I never made any permanent changes to my address. My driver's license still lists me as living in Pennsylvania, as my parents still lived there and I wanted a permanent address in case I had to move again during the year. I did not want to incur the expenses of having to get a driver's license in Delaware only to have to get a new PA license again if I had to move back in with my parents or go elsewhere.

My employer for the first half of the year was in Pennsylvania, where I worked full-time enough to make rent and other expenses. I had this job in 2010 and held it until August of 2011. So 8/12 months in 2011, I worked in Pennsylvania, while living in Delaware. I also listed my address as being in Delaware, so I received mail and pay stubs from them stating I lived in Delaware, despite holding a PA license.

At the end of August (I think it was the 29th) I accepted a full-time job in New Jersey and left the one in PA. So, 4/12 months in 2011 I worked in New Jersey, while again still holding that PA license.

Here is the problem. Am I going to get in any sort of trouble for not reporting where I "lived" despite having a permanent PA address? Do I file in both Delaware and Pennsylvania for 2011? How should this be broken down?

Thanks for any help you can give. I've really never done this before and am just seeking advice right now.

MegaMan001

antherem wrote:

MegaMan001 wrote:

No yeah, I got the 'requirements', but what form do I fill out? I mean, am I even going to get a tax form from the government?

EDIT: I looked at the websites and saw the rules and regulations, but I guess I'm at a loss when I just have loans and no real income or any W2 or anything?

Assuming that you had any out-of-pocket tuition expenses (loans count as out-of-pocket), your school is required to send you a 1098-T indicating this. If your tuition is entirely paid for by a fellowship or grant, which is often the case for graduate students, they don't have to send you the form and you're probably not eligible for any of the credits in that case anyway.

I'm a nurse anesthesia graduate student and have received zero grants, because we make way too much money after graduation all of my education has been paid by Subsdized and Unsubsidized Stafford Loans and GRAD PLUS loans which cover whatever Stafford didn't.

All right, I got hold of my 1098-T and I just printed off the form and we'll roll the dice and see if I get some money?

EDIT: What form do I uh, fill out for the actual return itself? Good lord this is confusing. I do not have a W-2 because I had zero income, I lived entirely on federal student loan refunds for the last 30 months.

sportzboytjw

MHYoshimitzu wrote:

I have an interesting situation I was hoping someone might be able to answer. Please note I've never filed a tax return by myself before, as I was a dependent until 2011, so my father had always filed for me because it was simple enough to do.

So, in February of last year, I moved in with a friend in Delaware. Before that, I lived with my parents in Pennsylvania for 2010. So for 1/12 of 2011, I was in Pennsylvania, 11/12 I lived in Delaware.

Now, I never made any permanent changes to my address. My driver's license still lists me as living in Pennsylvania, as my parents still lived there and I wanted a permanent address in case I had to move again during the year. I did not want to incur the expenses of having to get a driver's license in Delaware only to have to get a new PA license again if I had to move back in with my parents or go elsewhere.

My employer for the first half of the year was in Pennsylvania, where I worked full-time enough to make rent and other expenses. I had this job in 2010 and held it until August of 2011. So 8/12 months in 2011, I worked in Pennsylvania, while living in Delaware. I also listed my address as being in Delaware, so I received mail and pay stubs from them stating I lived in Delaware, despite holding a PA license.

At the end of August (I think it was the 29th) I accepted a full-time job in New Jersey and left the one in PA. So, 4/12 months in 2011 I worked in New Jersey, while again still holding that PA license.

Here is the problem. Am I going to get in any sort of trouble for not reporting where I "lived" despite having a permanent PA address? Do I file in both Delaware and Pennsylvania for 2011? How should this be broken down?

Thanks for any help you can give. I've really never done this before and am just seeking advice right now.

From Delaware's website:
http://revenue.delaware.gov/information/faqs_pit.shtml#NR

You will have a W-2 from your employer for Delaware to file for your payment or refund in Delaware.

Next, do you live in NJ now, or are you still considering yourself to live in Philly?

MHYoshimitzu

I still live in Pennsylvania under the law. Actually, I'm planning on moving back to Pennsylvania within the next four months (moving in with the girlfriend, who lives in PA now) so I am even more reluctant to change my information now than I was before.

Currently, I work in New Jersey, live in Delaware but have a permanent residence in Pennsylvania. Quite the mess, haha.

sportzboytjw

Okay: You have 3 state returns. You have NJ, Delaware, and Penn. NJ and Del = non-resident, using your W2 from each state. You may deduct taxes paid to NJ/Del from your Penn return (and federal return ofc).

Finally, consider moving West to a state where a new job could be 3 hours away and still be in the same state

tyrannus

Only deduct the taxes paid to NJ/Del if you're itemizing, but yeah

stop movin around so much!!

MHYoshimitzu

Sorry!

I literally live on the border of those three states, so traveling between them is so easy.

Thanks for the help, guys.

sportzboytjw

Yes, it probably isn't worth it to itemize unless you have a ton of medical fees and such, but if you do, you can take those taxes while itemizing.

MHYoshimitzu

Medical fees for 2011 include me going to the doctor for strep throat in April. I paid out of pocket since my deductible was higher than my visit. I don't think it's worth itemizing.

That said, I don't have a W2 for Delaware. My only connection to Delaware is that I live here currently, but in another state (PA) on paper. I pay my roommate cash for rent because it's his house and I am renting a room.

Would I be considered a "resident" even though I don't have any official documentation or anything other than bank statements and miscellaneous mail proving I live here?

noir_blood

About how long after the IRS accepts your tax refund are you able to check them on the where's my refund page?

I got noticed via email that the IRS accepted my refunds on Tuesday, but when I go to the website, it doesn't show up yet.

sportzboytjw

MHYoshimitzu wrote:

Medical fees for 2011 include me going to the doctor for strep throat in April. I paid out of pocket since my deductible was higher than my visit. I don't think it's worth itemizing.

That said, I don't have a W2 for Delaware. My only connection to Delaware is that I live here currently, but in another state (PA) on paper. I pay my roommate cash for rent because it's his house and I am renting a room.

Would I be considered a "resident" even though I don't have any official documentation or anything other than bank statements and miscellaneous mail proving I live here?

I thought you wokred in Delaware? Never at all? If not, I'd skip filing in Delaware.

Angel_of_Bacon

This is probably a dumb question, but-
I was given some shares of my company's stock, which I have done nothing with and frankly haven't been paying much attention to.

Does just having stock mean I need to file extra stuff on my income tax, or do I only have to do that if I were to sell/trade stock? I've never done anything with stocks before, so this is all new to me.

localh77

Angel_of_Bacon wrote:

This is probably a dumb question, but-
I was given some shares of my company's stock, which I have done nothing with and frankly haven't been paying much attention to.

Does just having stock mean I need to file extra stuff on my income tax, or do I only have to do that if I were to sell/trade stock? I've never done anything with stocks before, so this is all new to me.

Did they actually give you shares of stock, or was it stock options, or a stock purchase plan, or something? Because if they just gave you stock, you unfortunately do have to report that as income in the year they gave it to you (based on the fair market value of that stock on the day they gave it to you). What should make it easier is that they probably already included that in your W-2, so you shouldn't need to do anything special.

Vanguard

I am attempting to file my own taxes this year. I have a pretty simple situation. A single income, no dependants, no longer a dependent, and I pay interest on my student loans. I've done my own 1040A twice to check the math and it matches what I get when I punch it into H&R Block's tax estimator.

Now, my NY state taxes there is a small difference. I'm going to double check my math, but I got a different, higher amount than H&R Block estimated by about $40. Is this a red flag something is wrong on my end? I'm going to recheck the math before doing anything, but I don't want to deal with audits at all.

tyrannus

If you are getting $40 dollars more on your state return than on H&R Block, I suspect you're phasing out of something by a little bit and aren't including that in your calculations. For just a simple, example, for every amount over $20,000 in AGI, there might be a phase-out of a deduction. like, at $20,000, you might get a $1,000 deduction, but at $25,000, it might be a $500 deduction.

Angel_of_Bacon wrote:

This is probably a dumb question, but-
I was given some shares of my company's stock, which I have done nothing with and frankly haven't been paying much attention to.

Does just having stock mean I need to file extra stuff on my income tax, or do I only have to do that if I were to sell/trade stock? I've never done anything with stocks before, so this is all new to me.

I'd like a little more info about any kind of stock compensation plans or options you might have before I can say about what's going to be taxable

Thro

localh77 wrote:

Angel_of_Bacon wrote:

This is probably a dumb question, but-
I was given some shares of my company's stock, which I have done nothing with and frankly haven't been paying much attention to.

Does just having stock mean I need to file extra stuff on my income tax, or do I only have to do that if I were to sell/trade stock? I've never done anything with stocks before, so this is all new to me.

Did they actually give you shares of stock, or was it stock options, or a stock purchase plan, or something? Because if they just gave you stock, you unfortunately do have to report that as income in the year they gave it to you (based on the fair market value of that stock on the day they gave it to you). What should make it easier is that they probably already included that in your W-2, so you shouldn't need to do anything special.

Doesn't he also need to get the 1099 from the stock if it made over $10 in interest gains this year?

Edited: Tyrannus is correct.

tyrannus

This might be a little pedantic, but stock doesn't generate interest. instead, he would get a 1099-B from his broker, along with a statement from them clarifying the realized gains and losses and whether they are short-term or long term.

Gabriel_Pitt

noir_blood wrote:

About how long after the IRS accepts your tax refund are you able to check them on the where's my refund page?

I got noticed via email that the IRS accepted my refunds on Tuesday, but when I go to the website, it doesn't show up yet.

Along this line, according to the IRS tracking I should've received my refund on the 7th, but so far, nothing. I might just not be web savvy enough to read simple English on the web page, but I haven't found anything for what to do if it seems to be missing.

risingson

xraydog wrote:

Does Turbo Tax give you filled out forms so I can keep for records? Plus as an example to see how they did their calculations.

I believe they do. I did my taxes through them last year and it was extremely easy. Any online assistance with those programs are great. You might want to double check with them.

Gabriel_Pitt

They give you options for how the saved copy you keep is output, and that can include giving you all the forms and worksheets.

localh77

Gabriel_Pitt wrote:

noir_blood wrote:

About how long after the IRS accepts your tax refund are you able to check them on the where's my refund page?

I got noticed via email that the IRS accepted my refunds on Tuesday, but when I go to the website, it doesn't show up yet.

Along this line, according to the IRS tracking I should've received my refund on the 7th, but so far, nothing. I might just not be web savvy enough to read simple English on the web page, but I haven't found anything for what to do if it seems to be missing.

The only thing that comes to mind is to maybe double check the bank account/routing numbers on your return. I think that if the name on the account doesn't match the name on the return, they just send a paper check, which would delay your refund at least a week. And I'm not sure, but if you're married, you may both need to be on the account.

AlyceInWonderland

Oh man. I have a question.

So, I got my W2, and went home and did them immediately (I LOVE TAXES OMG). A week or so later my boss hands me an envelope with other tax documents referring to my holiday bonus.


How do I add that when I've already filed my taxes??

Gabriel_Pitt

Filing an amended tax return.

blaze_zero

I'm going to start filing again with Turbo Tax soon, but I have a few questions first.

I have work study this year; does this affect my bill/return much? For some reason, I don't remember filling out a W-2, although I probably did and just spaced it off.

When I fill out W-2s (for future information) how much is generally a good idea to set aside for taxes (in that one box labeled for taking out extra)?

Cincitucky

I'm expecting my answer to be "File an amended return."

Already filed my state and federal returns through TurboTax about a week ago. Just received a Schedule K? tax doc in the mail. The stock was bought then sold for a net loss through my IRA, so no income and it was done through my IRA. Is there a need to file an amended return when I didn't get income from the stock?

Update: The form is a 1065 Schedule K1. Still report it through an amended return when I had a net loss from the stock?

tyrannus

Nah, it won't matter. I don't think you'd have any at-risk basis in the stock through the IRA in the partnership, plus I believe it'd be a passive loss activity. So, no real advantage to amending there.

Unless you're a partner and didn't tell me, I think the 1065 K1 loss is addressed to the IRA and so it won't matter.

tyrannus

Additionally, if you file an electronic return, your tax return will clear in three days. Afterwards, you can file an amended return before April 17th with no penalties. Might be a smart idea to wait to do it in March to make sure you have all your forms.

Cincitucky

Thanks. I would have to look at the form about the partnership.

I did E-File, with as smooth as filing was for 2011 it figures something goofy was bound to happen. Your suggestion about waiting until sometime in March is something I considered... make sure nothing else is taking its sweet time to get to me.

Definitely appreciate the help and advice.

Bedlam

So I am an idiot who never did his 2010 tax return. I just did my 2011 through H&Rs website with my uncles help and they said to visit a store for 2010. Since the last time I did that it was $100 I was wondering if there was a cheaper way to get that done, either through buying a program or doing it online. If I have to go in I'll do it but I want to check my options a minute.

tyrannus

Hi Bedlam! You may have to talk to a nerd to file a prior year's tax return, but it might be costly. The cheapest way I think you can do it is to file it yourself. Here's the IRS website for prior year returns. http://www.irs.gov/app/picklist/list/priorFormPublication.html You must use the 2010 forms - No changing 2011 and crossing out the 1 at the end.

Here's the 1040 for 2010: http://www.irs.gov/pub/irs-prior/f1040--2010.pdf
And here's the instructions: http://www.irs.gov/pub/irs-prior/i1040--2010.pdf

You may need to find more previous forms, depending on what you have.

HadjiQuest

Here is a hopefully easy question from a tax-inept fellow, looking forward into the rest of 2012 and into 2013.

I just got a new job as a 1099. I've never been 1099 before, and this is my first job outside of retail, so I'm trying to figure this whole thing out. I've been trying to find out what my overall withholding will have to be. I know I have to withhold a 15.3% Self Employment tax, but I don't know which (if any) of the typical W-2 style taxes that covers. What else do I need to withhold? Social Security? Mediwhatsits? I assume State, right? Will my state (MI) percentages be different as a contractor, or will there be additional state taxes for it? Where do I even find all these percentages?

I really have no idea what I am doing, honestly. I tried to call H&R Block this morning, and all the person on the phone could say is that it would be anywhere from 15% all the way up to a potential 48%. I scheduled an appointment, but they are booked until mid-March. I just want to know what I should be putting away with each check to be safe, and also whether or not this job is going to be worth staying at with whatever my tax rate turns out to be. I've had people tell me 40% is pretty common, and if that's what I have to pay, it puts me well below minimum wage after taxes. I also drive nearly an hour each way, every day. I was told I wouldn't be able to deduct that since it's commuting, even though I'm a contractor. Is this true?

I also work a retail job on the side around 12 hours a week. I expect to make less than $6,000 from this job for the entire year. Will it affect the rates of my 1099?


Edit: My 1099 is salaried in at 25k, if it helps.

tyrannus

Too high on the self employment tax there. You'd get an above the line adjustment(deduction) for 7.65% on your 1040, but only have to pay 5.65% of FICA taxes at the employee level. Those include your FICA level taxes. Your withholding taxes are basically you paying income tax throughout the year, which is why the rate is very varied.

Additionally, yes, the commuting expenses aren't going to be deductible if you're going from home from work. Your W-2 from the retail job will include withholding so you might end up not have to pay that much in tax this year, but I do expect you to be paying some because of that damned self-employment income.

For example - your self employment income is $23,087.5 (assuming no expenses). 2.9% of will be both employee and employer side FICA at $669.54, which will appear on your 1040 as Tax due. Then, you have employee and employer side social security, at 10.4% (6.2% employer, 4.2% employee) at $2,401.1. Your total tax will be $3,070.64, but you will get an above the line adjustment for $1,766.19.

The withholding you pay on your W-2 will offset any left over withholding taxes, though not completely.

Unfortunately, you may owe a penalty for not filing estimated taxes. Please refer to here http://www.irs.gov/businesses/small/article/0,,id=110413,00.html to get a better idea.

btw bein a 1099 employee suuuuucks