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2009 Tax Thread
Thanatos
Registered User regular
Registered User regular
It's that time of year again, folks! The day I get my W-2. Also, the day I sticky the new tax thread for the year. Since so many of you are in such similar situations, I do this every year to help you out, maybe save you some money.
This thread is pretty much going to apply exclusively to Americans. If you have questions outside of the U.S., make your own thread.
Q. Thanatos, it's 2010, not 2009.
Number one, that's not a question; number two, this is the thread about filing your 2009 taxes, therefore it is the 2009 Tax Thread, smartass.
Q. Thanatos, this looks an awful lot like the 2007 and 2008 tax threads...
A. Also not a question, and my foot looks an awful lot like something that's going to be going in your ass if you don't shut the hell up.
Q. Thanatos, how do I find a good tax preparer?
A. Don't. Just do it yourself. Provided you're under 50, and made less than $57,000 last year, it's free and easy. You can use simple, fillable online forms on the IRS' website, or something like H&R Block's free filing program. You put in your name, address, and copy some numbers from your tax papers to the website, you're done. If you really want to avoid H&R Block for whatever reason, there is a list of other free filing sites you can access from the IRS link above. If you made more than $57,000 last year, you can still use the IRS' to file your federal taxes for free. It won't do state taxes, there are fewer bells and whistles than some of the other programs. I have used both of these sites in the past with no problems; this year, I'll probably be using the IRS' FreeFile again.
Q. Thanatos, where can I file my state taxes?
A. Most states allow e-filing. Google up your state Franchise Tax Board's website to see if yours is one of them. Offhand, I know that California is a state that does, and Washington is a state that does not (because we have no state income tax! Hahah!).
Q. Thanatos, what sorts of paperwork will I typically need?
A. Well, if you've got a job, you're going to need a W-2 form (or multiple W-2s, if you have multiple jobs; one from each job). If you haven't gotten your W-2(s) by February 1st, you need to talk to your employer, since legally, they're supposed to have it to you at that point. If you have student loans that you've been paying down, you're going to have a 1098-E. If they're government student loans, and you're doing automatic withdrawal with electronic statements, they give it to you electronically, just login and check your messages. If you have any sort of traditional investment, you're going to need a 1099 form (this would be for a savings account, IRA (but not Roth IRA), CD, etc.). This should be given to you by your bank, employer, or investment firm. If you have a Roth IRA, you don't need a goddamn thing for that, because it's neither tax deductible, nor is the interest on it taxable. Make sure you remember to deduct interest paid on your student loan; even if you're taking the standard deduction (and the vast majority of people here will be), that's considered an "adjustment," not technically a deduction, so you get it, anyhow.
Q. Thanatos, I have a student loan and I want to make sure I get to deduct it.
If it's a federal loan, they'll send you the paperwork, easy schmeasy. If it's a private loan, you need to request a 1098-E form ASAP. They'll be getting tons of requests later, and in order to get it in time to file, you need to request it now. Call your loan-issuing bank, explain to them what you need, and they should be able to help you.
Q. Thanatos, I'm an idiot, and/or this is way too complicated for me. I need a tax preparer. Who should I go to?
A. Well, your best bet is to ask friends and family around your area. Word of mouth is the best way to find a good guy/gal to do your taxes. And don't wait until April, do it now, when s/he isn't going to be quite as busy.
Q. Thanatos, I'm retarded, didn't file my taxes early, and now I'm not going to have enough time to get them ready. I need extra time to file; what can I do?
A. Go here (found the link at irs.gov) and file your free 4868 form, request for a tax extension. You're still going to need to pay your estimated taxes, so don't try to use it as a method for putting off payment; if you can't afford to pay your taxes, call the IRS, and work out a payment plan now, rather than getting hit with interest and fees later because you put it off.
Q. Thanatos, I'm a college/high school student but legally an adult living at/away from home, but my parents still pay for a lot of my expenses; should they claim me as a dependent?
A. Maybe. Are you under 19? If not, are you under 24 and a full time student? Are you disabled? If the answer to those questions are all "no," they can't. Do your parents materially support you for at least 6 months out of the year, and did you live with them for at least half of the year (does not have to be consecutive or concurrent, can be either)? If you answered "no" to that question, then they can't. If you answered "yes" to at least two of those questions, then your parents can claim you as a dependent. But do they want to?
The best way to determine this is to fill out your tax forms and their tax forms both ways. It's very possible that it's more advantageous for them to claim you than not, but it's impossible to tell without knowing your individual situation. As a rule of thumb, the less you make, and the more they make, the bigger the savings are going to be for them claiming you. And just because they can claim you doesn't mean they have to claim you; you're allowed to do whatever is most advantageous.
This thread is pretty much going to apply exclusively to Americans. If you have questions outside of the U.S., make your own thread.
Q. Thanatos, it's 2010, not 2009.
Number one, that's not a question; number two, this is the thread about filing your 2009 taxes, therefore it is the 2009 Tax Thread, smartass.
Q. Thanatos, this looks an awful lot like the 2007 and 2008 tax threads...
A. Also not a question, and my foot looks an awful lot like something that's going to be going in your ass if you don't shut the hell up.
Q. Thanatos, how do I find a good tax preparer?
A. Don't. Just do it yourself. Provided you're under 50, and made less than $57,000 last year, it's free and easy. You can use simple, fillable online forms on the IRS' website, or something like H&R Block's free filing program. You put in your name, address, and copy some numbers from your tax papers to the website, you're done. If you really want to avoid H&R Block for whatever reason, there is a list of other free filing sites you can access from the IRS link above. If you made more than $57,000 last year, you can still use the IRS' to file your federal taxes for free. It won't do state taxes, there are fewer bells and whistles than some of the other programs. I have used both of these sites in the past with no problems; this year, I'll probably be using the IRS' FreeFile again.
Q. Thanatos, where can I file my state taxes?
A. Most states allow e-filing. Google up your state Franchise Tax Board's website to see if yours is one of them. Offhand, I know that California is a state that does, and Washington is a state that does not (because we have no state income tax! Hahah!).
Q. Thanatos, what sorts of paperwork will I typically need?
A. Well, if you've got a job, you're going to need a W-2 form (or multiple W-2s, if you have multiple jobs; one from each job). If you haven't gotten your W-2(s) by February 1st, you need to talk to your employer, since legally, they're supposed to have it to you at that point. If you have student loans that you've been paying down, you're going to have a 1098-E. If they're government student loans, and you're doing automatic withdrawal with electronic statements, they give it to you electronically, just login and check your messages. If you have any sort of traditional investment, you're going to need a 1099 form (this would be for a savings account, IRA (but not Roth IRA), CD, etc.). This should be given to you by your bank, employer, or investment firm. If you have a Roth IRA, you don't need a goddamn thing for that, because it's neither tax deductible, nor is the interest on it taxable. Make sure you remember to deduct interest paid on your student loan; even if you're taking the standard deduction (and the vast majority of people here will be), that's considered an "adjustment," not technically a deduction, so you get it, anyhow.
Q. Thanatos, I have a student loan and I want to make sure I get to deduct it.
If it's a federal loan, they'll send you the paperwork, easy schmeasy. If it's a private loan, you need to request a 1098-E form ASAP. They'll be getting tons of requests later, and in order to get it in time to file, you need to request it now. Call your loan-issuing bank, explain to them what you need, and they should be able to help you.
Q. Thanatos, I'm an idiot, and/or this is way too complicated for me. I need a tax preparer. Who should I go to?
A. Well, your best bet is to ask friends and family around your area. Word of mouth is the best way to find a good guy/gal to do your taxes. And don't wait until April, do it now, when s/he isn't going to be quite as busy.
Q. Thanatos, I'm retarded, didn't file my taxes early, and now I'm not going to have enough time to get them ready. I need extra time to file; what can I do?
A. Go here (found the link at irs.gov) and file your free 4868 form, request for a tax extension. You're still going to need to pay your estimated taxes, so don't try to use it as a method for putting off payment; if you can't afford to pay your taxes, call the IRS, and work out a payment plan now, rather than getting hit with interest and fees later because you put it off.
Q. Thanatos, I'm a college/high school student but legally an adult living at/away from home, but my parents still pay for a lot of my expenses; should they claim me as a dependent?
A. Maybe. Are you under 19? If not, are you under 24 and a full time student? Are you disabled? If the answer to those questions are all "no," they can't. Do your parents materially support you for at least 6 months out of the year, and did you live with them for at least half of the year (does not have to be consecutive or concurrent, can be either)? If you answered "no" to that question, then they can't. If you answered "yes" to at least two of those questions, then your parents can claim you as a dependent. But do they want to?
The best way to determine this is to fill out your tax forms and their tax forms both ways. It's very possible that it's more advantageous for them to claim you than not, but it's impossible to tell without knowing your individual situation. As a rule of thumb, the less you make, and the more they make, the bigger the savings are going to be for them claiming you. And just because they can claim you doesn't mean they have to claim you; you're allowed to do whatever is most advantageous.
Thanatos on
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Hello H/A, I am studying to take the SEE, an exam which will allow me to be an Enrolled Agent. That's a designation that the IRS gives, allowing me to practice before the IRS (don't know what that means? Ask me!), and also acknowledging that I know what the fuck I am talking about when it comes to taxes. Although I haven't passed all the parts yet, I still know a thing or two, so if I see questions that I know how to answer then I will answer them (if I feel like it).
Two notes:
1. If you have a question and plenty of time, odds are the answer is somewhere in Publication 17, "Your Federal Income Tax." Take a look if you like.
2. Any of my posts in this thread will constitute informal advice about tax matters, none of this should replace retaining a professional if you have a serious question, I won't be held liable if you get audited until you die, etc etc. Click this if you're wondering what a Circular 230 warning looks like:
Namely, the first time Homebuyer's Credit.
Due to the extension that was filed, you can still file to claim this credit as long as you close escrow before July 1 2010 Here is a good Link summarizing the important points, but I figured I'd point out the major ones as I found out the hard way.
Namely:
But yeah long story short:
You WILL have to paper file your taxes if you want to claim a First-Time Home buyer's Credit this year
You WILL need to have proof of purchase with the form, as the aforementioned blurb states, your HUD-1 statement.
Expect 4-8 weeks to get the credit sent back to you.
You can CHOOSE to file your First Time Credit either for your 2009 OR 2010 taxes if you closed escrow in 2010, if you closed escrow on or before November 6 2009, it can only be filed for your 2008 OR 2009 taxes as it uses a different version of Form 5405.
Hopefully that should sum up things nicely. Feel free to remove if it detracts too much from the general sticky, this is a pretty focused scenario but I figure folks will ask about it nonetheless.
Edit - Ack beat'd by Jhunz
Wud yoo laek to lern aboot meatz? Look here!
Also, are there any known deductions for paying down exorbitant medical expenses (uninsured)?
we also talk about other random shit and clown upon each other
I believe you have to itemize deductions in order to deduct medical expenses, and they have to be at least 15% of your income. However, if you itemize, you don't get the standard deduction, which is $5,700. So, if you don't have other deductions that, when combined with your medical expenses adds up to more than $5,700 (not counting above-the-line deductions like student loan interest), you're going to be better off taking the standard deduction.
It's not going to be a staggering amount of money, but better than a kick in the crotch.
God damn it. Should I find a preparer or can I manage the paperwork myself without descending into utter madness.
Married, 3 jobs between the two of us, nothing really special tax-wise other than the home buyer's credit.
I filed for the credit as an amendment to my 2008 taxes last year. So my original taxes were e-filed, but later I had to file the amendment by mail. The 5405 form itself is pretty simple to fill out so shouldn't add much headache.
Edit: L2read Deebaser. L2read.
(Im not going to jail. Whoo hoo!)
Low.
Anything special for single parents? There is no child support in the mix.
I think I got either $300 or $600 more back last year because of the kid. If you pay for child care that should be deductible (up to $3K I think?). Your child care provider should provide you the paperwork, at least ours did.
If you're the primary caregiver, you may be able to file as Head of Household (depending upon whether or not you were married, whether or not/how long you lived together during the year, and some other stuff), you will be able to claim the kid as a dependent, and you'll be eligible for the Child Tax Credit.
So yeah, you're probably due for some decent money.
We close on the 27th so I was going to take advantage of the fortuitous timing and file it all together. I'm guessing that as bad as the paperwork is it's not as bad as having to wait for e-file, get return, amend to all happen.
What? Did this change? It used to have to be postmarked by January 31st.
You're right, although the 31st falls on a Sunday this year so you have until Feb 1 to get them in the mail.
Seems like common sense, but my friend was arguing I need to file anyhow.
I.e.
My income this year: $0.00
(Excepting a $15 or 20 interest I made from the bank)
But I should get all the education credits like the Hope one.
Mostly correct. This year there is something called the "American Opportunity Credit," which can under certain circumstances be refundable--meaning that if the credit reduces your tax to less than zero, you get a refund check. But ordinarily it will be more beneficial to take the tuition and fees deduction, rather than any of the education credits, in which case it won't matter.
Well if I made nothing this year, it doesn't seem like the deduction will help.
It'd be nice to get a refund for the Credit though!
Pretty sure you can't take advantage of a tax credit if you didn't actually pay any taxes. The whole idea of a credit is they are crediting back taxes you paid (as opposed to a deduction, which reduces your tax liability).
Maybe you could add this to the OP?
...because you paid income tax on that money. I would assume.
One thing I've always wondered about dependents: Whenever I would talk to my friends back when we were dependents, the common line of logic was that if your parents didn't claim you you could then take the exemption for yourself. (Heck, one of my friends got in a huge fight with his parents over it...)
However, the line in question reads "if anyone can claim you", it doesn't say if anyone does.
So, as far as I could figure, if your parents did their taxes, decided for whatever reason not to claim you as a dependent, you would still have to file as a dependent. Is this correct?
fuck up once and you break your thumb / if you're happy at all then you're god damn dumb
that's right we're on a fucked up cruise / God is dead but at least we have booze
bad things happen, no one knows why / the sun burns out and everyone dies
Yup. If your parents can claim you as a dependent and don't, then a) you are stuck with a smaller personal exemption, and b) they are leaving money on the table for no reason at all.
So in short, has anyone else adjusted their paycheck based on this subject? FYI, I am single, childless, and not a homeowner. None of those things will change in the next couple of years I would bet.
PSN: TheScrublet
Well yeah, no need to even do research--if you know how the time value of money works, then you understand that it's better from that standpoint to decrease your withholding and owe at the end of the year than it is to have higher withholding and get a refund.
A good tool to play with is the IRS withholding calculator. Tell it your situation, and it will tell you how many allowances you should claim if you want to have a small refund, or owe a small amount.
Do the worksheet attached to the W-4 form. It will get your withholding much closer to what it should be. Most people, even HR people who should know better, think that the withholding number on your W-4 is the same number as the number of exemptions you claim on your tax return. It's not. The vast majority of people have W-4s that are filled out incorrectly.
One of my workmates hasn't done so. He likes getting a check during tax season and uses it to buy shit or take a vacation. I've explained to him that he's basically sending a part of his paycheck to the govt, who just returns it to him later (w/out interest) and he appears to understand this but just wants the yearly check anyways. He's also elected to receive his tax benefit from his dependent care as a refund check instead of just participating in our FSA program, cause he wants the bigger refund check. I think it's just indicative of his being unable to control his spending habits but it seems to work for him.
I've only entered in two of my W2s for a total of $4,400 in gross income but I'm getting back $1,700 in refunds. The only thing I can figure is that maybe my going to college for a term in 2009 affected something? It's just a little odd. Any ideas?
Also, my student loans are Stafford Loans through Sallie Mae. Do I need to claim them? I haven't gotten anything from them yet in the mail. I've entered the proper information into the "student section" section of the H&R Block site, but they only asked how much I paid for tuition and books and how I paid for it, not the total I got.
I had a quick question as to whether the online filing methods (have used H&R Block for a few years now) will be able to accommodate a W-2 and a 1099 from a freelance job I had as a consultant early this year. I know I will have to pay taxes on that income, but I'm wondering if freelance stuff (first time I will have received a 1099) will be regarded as simple (able to do myself as usual), or a more complicated than the online system can handle.
I assume it's the latter, but I always like to be prepared.
Thanks for the advice!
So if I've taken out loans in my name to pay for food/rent/school, and my parents don't pay for any of that, then I'm not a dependent, even though I'm under 24 and a full time student?
If you're only making $4400, that sounds like EITC.