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The Tax Thread
Thanatos
Registered User regular
Registered User regular
Since it's that time of year, I'm gonna go ahead and make available to all of you my vast swath of tax knowledge, and cut down on our number of threads. Feel free to post any of your own questions/issues in here.
This is pretty much going to apply exclusively to Americans. If you have questions outside of the U.S., make your own thread.
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 $54,000 last year, it's free and easy. You can use H&R Block's free filing program. You put in your name, address, and transpose 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 here, on the IRS' website.
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 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 now, you need to talk to your employer, since legally, they're supposed to have it to you at this 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'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 hear people are getting checks for Economic Stimulus; this sounds like a great racket. How do I get in on it?
A. Well, first of all, you'll need to have made over $3,000 in net, taxable income in 2007 ($6,000 if married, filing jointly). You'll need to have filed your 2007 taxes (i.e. the taxes you should be filing this year), and you'll need to not be claimed as a dependent on anyone's taxes. You can be over 18, and your parents/guardians can still claim you as a dependent; check with them if you're not sure whether or not they did so. You also need to have made under $75,000 in net, taxable income ($150,000 if married and filing jointly). Provided you meet the above conditions, the IRS should be sending you a check for between $300 and $600 sometime between May and September of this year ($600-$1200 if married, filing jointly). In addition, you should get another $300 for each dependent child you have. Most people on these boards are probably going to fall in the $600 dollar range (it's based on income). If you want to know how much your Economic Stimulus Rebate will be, and you've filed your 2007 taxes, you can check with the IRS at their website.
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.
This is pretty much going to apply exclusively to Americans. If you have questions outside of the U.S., make your own thread.
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 $54,000 last year, it's free and easy. You can use H&R Block's free filing program. You put in your name, address, and transpose 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 here, on the IRS' website.
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 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 now, you need to talk to your employer, since legally, they're supposed to have it to you at this 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'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 hear people are getting checks for Economic Stimulus; this sounds like a great racket. How do I get in on it?
A. Well, first of all, you'll need to have made over $3,000 in net, taxable income in 2007 ($6,000 if married, filing jointly). You'll need to have filed your 2007 taxes (i.e. the taxes you should be filing this year), and you'll need to not be claimed as a dependent on anyone's taxes. You can be over 18, and your parents/guardians can still claim you as a dependent; check with them if you're not sure whether or not they did so. You also need to have made under $75,000 in net, taxable income ($150,000 if married and filing jointly). Provided you meet the above conditions, the IRS should be sending you a check for between $300 and $600 sometime between May and September of this year ($600-$1200 if married, filing jointly). In addition, you should get another $300 for each dependent child you have. Most people on these boards are probably going to fall in the $600 dollar range (it's based on income). If you want to know how much your Economic Stimulus Rebate will be, and you've filed your 2007 taxes, you can check with the IRS at their website.
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.
Thanatos on
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Posts
Bam, you just saved $299.
Also, you'd feel pretty dumb if you paid $299 and found out you owed $1300. Heck, my refund was only $200 - and I owed California $100. I'd feel absolutely stupid if I paid anyone to find this out.
so i'm paid on a fellowship, but my department in its infinite wisdom gives us only a 1098-T, not a W2... anyone ever had experience doing something like this? Last year I just put the income on the line, and I think I filled out the "i don't have a W2" form, but I wasn't sure if you can fill out the (easier) 1040EZ with something like that
Chances of fucking up hardcore are minimal, really.
Usually, if you're talking about a 1098 form, that's taxed as capital gains or corporate earnings (like, as if you were running a business) rather than payroll. It should probably go on a different line in the tax form, not AGI.
I don't think so - the 1098-T is really intended to be a "this is how much tuition you paid" form for you to claim deductions for tuition/fees, except as a grad student I get paid a stipend in addition to tuition being paid by the university
To be honest, though, it's certainly possible.. it's unreal how fucking impossible it is to figure out the right way to do this
You should be able to figure it out based on the site you're using. I know H&R Block has all sorts of options for shit like that.
My circumstances were: about $2800 in relevant college expenses, one person household, and I was the student.
I filed mine on January 26 and my refund was deposited into my account on February 4.
Me and my brother bought a house last year (March '07). We split the mortgage payments 60/40.
How would this be reported on the tax paperwork?
Librarians harbor a terrible secret. Find it.
Are you trying to file a state return? It says on the main page for their free-file website that it costs $29.95 to do that.
TaxCut Free File
State additional $29.95
Back out, go back to the last part of your federal file, hit "next," then make sure you click "no" twice. It switches position between the two, so be aware.
In order to find someplace to e-file your state taxes for free, you'll need to check your state's Franchise Tax Board website. California makes this really easy, I don't know about other states.
Who actually is paying this? If your BIL is paying the full amount, and you are just giving him the 40%, then you really have no claim to the interest paid.. as the IRS has no record of you actually paying it.
If you are actually getting a bill for 40%, and your BIL gets a bill for 60%, then your interest is already divided up, and therefore you just need to look at your tax forms.
The only other alternative is that you get part of your brother's refund, but that is extra complicated with differences in income, child tax, etc.
Librarians harbor a terrible secret. Find it.
What's all this about? What do I need to do? If I should go find out for myself where should I look.
Also, I'm 22 and make under 30k a year. I graduated from college last May, but I finally have a career that gives me a little stability and I don't want to end like my mother right now who has absolutely nothing saved for retirement.
Ryan M Long Photography
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Well, I guess I'll put up a thread when I've got some more socked away.
Ryan M Long Photography
Buy my Prints!
Who would you recommend as a Roth IRA provider?
If you qualify to free file from them, you most likely can use turbotax for free. The online site is top notch.
Librarians harbor a terrible secret. Find it.
My g/f makes less than 54k but rang up between $1k and $2k in health bills last year. She's ok, but she thinks she spent enough to qualify for a deduction.
So ... suggestions for us? Too complicated? Free file, TurboTax, find a preparer?
Bonus question: For some reason, I have the idea that if I invest in a Roth IRA right now, it would still count towards my max contribution in 2007. Totally wrong?
Your girlfriend will want to free-file. I believe medical costs are a below-the-line deduction, and the standard deduction is $5400, so unless she has some other substantial deductions, she's probably not going to want to itemize. If she wants to see if she wants to or not, she can tell H&R Block's program to itemize her, and if the standard deduction is bigger, she can switch to that when she's done very easily.
And I am almost certain that you can contribute to a Roth IRA and have it count towards your 2007 contribution limit.
Should she call legal aid or some other sort of group to try to get it fixed?
Oh yeah, she's tried changing it on w2 express but when she changed her pin, she can't access her account anymore.
I am certain - I just set up a Roth IRA earlier this year for myself. You have till April 15, 2008 to make contributions for fiscal 2007.
Well, the rule is always that the contribution period is January 1 of the year in question to the return filing deadline of that fiscal year. And yes, that does mean that if you contribute now, you can choose to count the contribution to 2007 or 2008. (I put my principal contribution in 2007, and all my current contributions on 2008.)
Also, how many of you have filed already? If you know you're going to get a return, file as soon as you can!
Where did you find this? I've been looking on their site and can't find it.
Link please!!
Go here and you can see where your refund is exactly in the process.
I found the pdf you are looking for via a PDF link from turbotax online.. but this is the same one:
http://www.profitdevelopers.com/dd_schedule.asp
I can tell you that its not 100% accurate, think of it as a 'by this date' chart.. I got mine long before I 'should have' Use the first link, that tells you exactly where the IRS says your refund is...
Librarians harbor a terrible secret. Find it.
I've been paying back my school loans. I got my 1098-E's from most of them (the Stafford loans) -- however, the majority of my school was paid through private student loans from Citibank, and I didn't get a 1098-E from them. I log onto the site and see "Qualified Interest: $0.00". In the fine print of the page:
"All Federal Stafford, PLUS, and Consolidation Loans are qualified education loans. Private Loans do not automatically qualify. However, if the borrower provides a completed W-9S form, the interest paid on their Private Loans could then qualify for the deduction. A W-9S is an IRS form that serves as the borrower's certification that the funds were used solely for education expenses."
I called up Citibank and was told that it was too late to send the W-9S form to them. However, the guy confusingly insinuated that I still might be able to claim the interest on my taxes? I couldn't really understand him. He said that he'll send me the form with the interest I paid within the next week or so. Not sure if that "form" is the 1098 or what.
So am I screwed for claiming the interest on my private educational loans? It seems to me like I am, because I didn't get a 1098-E from them and their site says "Qualified Interest: $0.00" under my account. This W-9S business caught me off guard.
You should be able to deduct them, to my knowledge.