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The 2011 Tax Thread
ceres
When the last moon is cast over the last star of morningAnd the future has past without even a last desperate warningRegistered User, Moderator Mod Emeritus
When the last moon is cast over the last star of morningAnd the future has past without even a last desperate warningRegistered User, Moderator Mod Emeritus
This is late because I haven't been around for it in years and completely forgot that it happens, so my apologies.
I don't know much about this stuff personally, so anyone who has some general information to get the ball rolling, please PM me with it and I'll include it in this post.
In the mean time, post your questions/answers about 2011 taxes here.
Posts found in this thread:
I don't know much about this stuff personally, so anyone who has some general information to get the ball rolling, please PM me with it and I'll include it in this post.
In the mean time, post your questions/answers about 2011 taxes here.
Posts found in this thread:
And it seems like all is dying, and would leave the world to mourn
ceres on
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I only made $1200 from TAing last year, and while I paid $50 in federal taxes on it, I *really* don't care about getting the money back. So, it looks like I can just file an 8843 here in the US, to say "hey, I was living in the US, but I don't need to file taxes because I'm a poor Canadian."
Do I then file a normal tax return in Canada, listing my American income, tuition, etc? Again, I'm so far under any exemption limits it's laughable, but I want to make sure I'm doing things right - I'd hate to have any hypothetical future immigration plans destroyed because I neglected to submit some form.
(I would just ask my school about it, but they've been seriously useless on every question I've had occasion to ask them - they're fully versed in handling students from Turkey, but I'm literally the only Canadian they've ever had, so they just have no knowledge of what I should be doing).
I can't help with the Canada side, but I just wanted to agree with what you said about the US side. By filing 8843, you can establish that you should be treated as a non-resident alien. And since your income is less than $3,650, you don't need to file a 1040NR. Out of curiosity, though, do you have a tax identification number already? Because if so, filing a 1040NR-EZ is really easy (probably would take less than 15 minutes), and you could get your 50 bucks back.
All you have to do is fill out an informational form and answer a few questions and they will do all the work for you.
It's mostly volunteer students but there are site coordinators and people from United Way at all sites that will be more than willing to answer any questions. Just make sure to make an appointment, they'll give you all the details.
Source: http://www.irs.gov/newsroom/article/0,,id=233910,00.html
steam | Dokkan: 868846562
You could check out VITA http://www.irs.gov/individuals/article/0,,id=219171,00.html for your state and see if any locations are near you. They offer free tax filing for state & federal returns.
If not, or if you do not meet the requirements, H&R Block has an free online service that you could use. I cannot attest to how the service is, however.
How professional are the blokes at H&R block? Should I find a private person instead?
Just some general information:
You will need to know: The original cost of the asset, plus any increases and decreases to the cost, the holding period (how long you kept the investments), and the proceeds from the sale.
The original cost of the asset will be your basis in the investments. It will be very important that you have documentation from your stock broker about the basis in the property. The increases and decreases to the cost, or basis, may include any additional commissions or fees paid to the broker at the time of the purchase or sale. Your holding period is also important as it determines the amount of tax you will pay on the gain.
As long as all you're talking about is stock, then I'd agree with tyrannus that it's not very hard to do it yourself. Pretty much just fill in the purchase date, sale date, basis (cost + fees), and the proceeds for each sale. A little tedious, but not too hard.
You could go to H&R Block, but they charge per form, and on something like a Schedule D, it might even be per line. One idea is to fill it out yourself (I used freefilefillableforms.com last year), and then taking it to H&R Block to have them do a second look. Something like $20 - $30 (and I think someone pointed out that it's free during a certain week in March).
As far as how professional they are, I'd say it's pretty much a crap shoot. Some of them are fine, but others are pretty useless. If you decide to go with a professional, I'd suggest getting advice from a friend or family member on someone they use and like.
If you can answer all these questions, you can take (probably) the American Opportunity Credit.
- Are you within the first four years of post-secondary (undergrad, not graduate) study? Yes
- Are you enrolled in a program that leads to a degree, certificate, or other piece of paper? Yes
- Are you taking at least one-half the normal full-time workload for the course of study for at least one academic period beginning in 2010? Yes
- Have you ever been convicted of a felony for possessing or distributing a controlled substance? No
There are other rules, as well. If you are claimed as a dependent on another person's tax return, you cannot claim the credit. Your parents, or whoever claim you as a dependent, will end up claiming it.After that, you can get a credit for up to $2,500 depending on the amount of eligible expenses, the amount of tax on the return, and whether or not your scholarships/grants cover the expenses. (That last part means that your qualified expenses sent on your 1098-T are reduced by nontaxed benefits) The form you would use is the 8863, found here.
Here are a few scenarios where you may want to file an amended return:
You may need to file an amended return if you received another form W-2 after you filed, or a corrected form W-2.
Or if you got another 1099 or a corrected 1099
Or, if you claimed your own personal exemption on the return when someone else could claim it.
Or if you claimed deductions or credits you should not have claim, or did not claim deductions or credits you could have claimed, or if your filing status is different.
I'll fire up H&R Block at Home when I get home after work and see if it can lead me through it.
You're going to have to want to print out two copies of the amended return, one for you, and one to mail in.
You can expect the processing time for an amended return to be 8-12 weeks. I'll get you some more details in a bit.
If you're really not good at reading forms and doing form-based math, then going to a tax person may be your best bet. Nothing wrong if you're not a form person, of course, although if you do generally find that you have some "odd income" every year, you might rather look for a personal accountant. Their fee is on an annual basis, usually very competitive with walk-in tax services, and you can ask them other tax questions throughout the year (if you get a good one -- try to assess how good they are with email).
The catch with a lot of the extra forms is that half the work is tracking them down -- the other half is simply punching in numbers. I've been using freetaxusa.com for the last 3 years now and I really enjoy it (as much as one can enjoy a tax service). They do a good job of explaining what you need and where things go.
Does this sound reasonable? I'm concerned that we have no "formal" document to explain this income.
Thanks for the help!
3clipse: The key to any successful marriage is a good mid-game transition.
Do any of these apply?
EDIT: Actually, this seems to be an issue of confusion for me. Might need some help, but this is what Publication 970 says.
http://www.irs.gov/publications/p970/ch01.html#en_US_2010_publink1000178011
H&R Block at Home asked the right questions after all. And this, ladies and gentlemen, is why I shouldn't try to remember what tax things are called when the forms aren't in front of me.
3clipse: The key to any successful marriage is a good mid-game transition.
That sounds good, but I'd try to nail down for sure that the fellowship money is taxable. Like tyrannus said, if she's a degree candidate and uses the money to pay tuition and fees, it wouldn't be taxable, in which case it would be left off the return altogether. I'd recommend the worksheet on page 5 of pub 970 (http://www.irs.gov/pub/irs-pdf/p970.pdf).
3clipse: The key to any successful marriage is a good mid-game transition.
Too bad - I always hate owing at the end of the year!
Source: http://www.njscpa.org/story.cfm?SID=15347
I opened a self-directed Roth IRA in January 2011. I contributed the max amount applied to 2010 ($5000). I've been contributing on a regular basis (for 2011) since then. I haven't taken any money out. What do I need for tax documents for this? Is there a 1099 or something? I haven't gotten anything from the broker.
You may get a form 5498, which shows your IRA contributions for the year. But it shouldn't affect your taxes for this year. With a Roth, you're making contributions with after-tax dollars, so you won't have to worry about it until you start making distributions.
I don't know how it works, but since you didn't open it until 2011, you might not get a form until next year. And I don't know if they're actually required to send a form for a Roth. Anyway, like I said you won't need to worry about it yet. Just save any documentation you have for when you do finally make distributions.
Nothing quite that nice that I can think of. Just make sure to look into the American opportunity credit if you have education expenses. And it's not too late to take advantage of the residential energy credits (getting energy efficient windows for your home, for example). I think the limit is reduced quite a bit for 2011, but if you did anything in 2010 the limit is still pretty high.
And of course the Making Work Pay credit again (this is the last year, though).
It's a credit for up to $400 for everyone that had a job in 2010 (and 2009). As long as you didn't make too little in wages (or too much), you get the credit, which is essentially free money. Technically, you've already received the money (in the form of lower withholdings from your paychecks), but you still need to claim it on your return.
The only real tricky factor is that people with multiple jobs can get screwed a little (both jobs withhold less from each paycheck, but then you only get a total of $400 on your return, so you can end up owing).
My girlfriend did not go to school last year, but her notice of assessment says she still has unused tuition fees that she carried forward from 2009 (i.e. from last year's taxes). Can she claim them on her 2010 taxes?
Nintendo Network ID: PhysiMarc
Admittedly, I know nothing about Canadian taxes. But it sounds like yes, she can carry them forward to 2010: http://www.taxtips.ca/filing/students/transfercarryforward.htm.
I would see a CPA or another tax professional. The income across the three states as well as the two countries as well as the military pay might throw several wrenches into the conventional free tax program.
Use them if your taxes are simple, I've volunteered for them before and it was pretty awesome. They also tend to give you simple financial planning advice as well.
Save all of my...
Medical Bills?
Attorney Fees?
Education related bills?
Child care bills?
What counts as a work expense; clothing? Food I bring to the office as a nice gesture?
What the hell is worth keeping track of?!!?!??!
You can always keep track of everything, but it's worth keeping a few things in mind.
Also, keep track of everything (cash and non-cash) you donate to charity.
Oh, and if you live in a state without an income tax, one thing you can do is keep track of all the sales tax you pay for the year. But this is only really worth it if you spend a lot, cause the IRS will let you take a certain amount just based on your income, and it's actually pretty generous.
And it's worth noting that if you don't itemize, you won't deduct your medical, attorney, work expenses, charity, or sales tax amounts. And if you don't pay mortgage interest, you likely won't itemize.
Also work expenses are tricky. Keep this list in mind: http://www.irs.gov/publications/p529/ar02.html#en_US_publink100026912
Any cash and noncash charitable contributions over $250 require documentation.
I used to think this too, but if your state income tax exceeds the standard deduction then it's worthwhile to itemize.
Of course, I think California's income tax is higher than many states, so I dunno.