03-03-2009, 08:05 AM | #1 (permalink) |
Addict
Location: Midway, KY
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Tax Time again
For those of us in the US, our federal (and in some cases) state income tax returns are coming due fairly soon. How are you doing your taxes this year? Share your stories, problems, issues, questions, rants, diatribes or whatever...
For my part, I've run into more issues and problems with my taxes this year than I can suffer through with a grin. I'm starting to get a bit irritated by the whole process. The first issue for me was a mistake that I made by not changing my withholding at work. My wife had quit her job to stay home with our infant son. So we've got 1 income instead of 2, and a new dependent to claim. But I was dumb and didn't immediately revise my withholding. The end result is I paid WAY too much taxes all through the year. Yeah, I'll be getting a large refund, but I'd much rather have had that money to use/invest all through the year. Part 2 of my problems have to do with my switch from doing my taxes myself on paper forms to using a tax software program myself. The switch was honestly just a bit of laziness on my part as I dislike writing everything out and physically mailing the package in to the IRS. I thought it would be simpler to do everything on the computer and e-file. Everything was fine (I thought) until I got to the e-file. It turns out that the SSA has the name of my son incorrectly attached to his SSN... the returns got booted out by the IRS computers with an error message. I spent 2 days visiting government office and waiting in lines to get the proper forms to get the problem fixed. They tell me that the system uploads overnight and should be corrected in the system by the next day. I wait a week to be sure that everything is squared away with the change. I re-file online and, what do you know, rejected again, for the same reason. Starting to get a bit grumpy now about the whole process, I hunker down and prepare to get packages together to send via standard mail to the respective state and federal departments of revenue. At least the computer program has generated nice, neatly typed out forms for me to submit via mail. So, I'm reviewing these forms again and I notice something odd... the program has itemized my deductions for the state return, but used a MUCH lower standard deduction on the federal form. WTF! The program I used, TaxACT, is supposed to help me find deductions and keep me from making errors. Not make errors on the forms that I have to find by hand. GRRRRRR. Now I'm feeling really grumpy. The difference between itemizing and not itemizing for the federal form might make a difference in tax liability of $1000 or so. Not a small amount. Insult to injury at this point, the tax program is installed on my home computer and I'm at work right now. So I'm unable to address this issue right now and find out why the program would have that discrepancy between the two forms. Sorry for the rant everyone. But it has helped me some to get it off my chest. If you've read mine, I'll read yours.
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--- You do not really understand something unless you can explain it to your grandmother. - Albert Einstein --- |
03-03-2009, 08:35 AM | #2 (permalink) |
Kick Ass Kunoichi
Location: Oregon
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I already filed my federal taxes and got my return. I didn't pay any taxes in 2008; the jobs I've worked in the last year paid so little that I qualified for the Earned Income Tax Credit. I only got about $64 back, which has since been spent on groceries. Regardless of getting the EITC, filing makes it easier to fill out my FAFSA, which I promptly filed after finishing my taxes. It took me about 20 minutes to do my taxes online with TurboTax.
I haven't filed a state return and I don't know if I will, since I didn't pay any state income tax, and there are no programs for low-income people to get any $ back at the state level. State taxes I do long-hand, but my state's forms are pretty easy to fill out, and I've never had any problem with them. Since it's just me and I don't make a whole lot of money, the process was pretty painless. I imagine it will get more difficult when I'm older. I think at that point I will take my dad's advice and find a good accountant.
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If I am not better, at least I am different. --Jean-Jacques Rousseau |
03-03-2009, 03:52 PM | #3 (permalink) |
Junkie
Location: Louisville, KY
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I'm 5/6th of a lawyer who is taking tax, and I still don't do my own taxes...and honestly, probably never will. But, I'm filed and expecting a huge return, which would be really exciting but for the fact that it's all going to pay for my BarBri course.
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"With all its sham, drudgery, and broken dreams, it is still a beautiful world. Be cheerful. Strive to be happy." -Desiderata |
03-03-2009, 04:13 PM | #4 (permalink) |
Tilted Cat Head
Administrator
Location: Manhattan, NY
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done couple weeks ago. getting a considerable refund from state and federal. not getting hit with AMT this year thank god.
mine got more complex again because of starting a new business and purchasing a 2nd rental property.
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I don't care if you are black, white, purple, green, Chinese, Japanese, Korean, hippie, cop, bum, admin, user, English, Irish, French, Catholic, Protestant, Jewish, Buddhist, Muslim, indian, cowboy, tall, short, fat, skinny, emo, punk, mod, rocker, straight, gay, lesbian, jock, nerd, geek, Democrat, Republican, Libertarian, Independent, driver, pedestrian, or bicyclist, either you're an asshole or you're not. |
03-03-2009, 04:47 PM | #6 (permalink) |
Psycho
Location: Anchorage, AK
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Well i usually go to a person that knows how to do them online and they do it. i pay them $50. this year i went to HR block. I got about $1400 back. i was happy.
next year, i hope to do my own taxes but who knows. I am one lazy mo fo. |
03-04-2009, 08:24 AM | #8 (permalink) |
Addict
Location: Midway, KY
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On the positive, happy side. After I decided that I was going to have to actually mail in my federal and state returns, I sat down and reviewed the printed out returns in preparation for signing them. I found that the program had itemized deductions on my state return, but used the standard deduction on my federal return. I knew that was a mistake because we have a lot of mortgage interest, enough that amounts to more than the standard deduction just based on the mortgage interest alone. I went back and checked, found and fixed the error, and re-printed the federal return... to the tune of a $1300 increase in the amount I'm getting back.
So yeah, I didn't get the ease and speed of e-file, but I'm getting a good bit more money back than I thought I was. Enough to start my deck re-finishing project. For those of you who don't do your own taxes, why don't you? Are you lazy about it? Don't understand the tax code? Afraid of making mistakes and getting in trouble? I've always done my own taxes since I was old enough to work and earn money for myself. The longest it has ever taken me was 45 minutes to an hour once I had all the paperwork together. I guess if I started working as an independent contractor, or owning multiple rental properties, then I might need to hire an accountant for my taxes. Until then, I'll likely stick with doing them myself.
__________________
--- You do not really understand something unless you can explain it to your grandmother. - Albert Einstein --- |
03-04-2009, 08:44 AM | #9 (permalink) | |
Tilted Cat Head
Administrator
Location: Manhattan, NY
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Quote:
Once I got into investment properties that are in a different state and an S corp it made better sense to hire someone as the complexity of the tax codes changing from year to year, I find my time better spent learning other things to grow my money and investments. The cost of my accountant far exceeds the amount extra I net if I had done it myself. I used to do side by side comparos but no longer do so because of the complexity.
__________________
I don't care if you are black, white, purple, green, Chinese, Japanese, Korean, hippie, cop, bum, admin, user, English, Irish, French, Catholic, Protestant, Jewish, Buddhist, Muslim, indian, cowboy, tall, short, fat, skinny, emo, punk, mod, rocker, straight, gay, lesbian, jock, nerd, geek, Democrat, Republican, Libertarian, Independent, driver, pedestrian, or bicyclist, either you're an asshole or you're not. |
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03-04-2009, 11:00 AM | #12 (permalink) |
Addict
Location: Midway, KY
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I wish that I was only getting $750 back. In fact, I wish that I owed $750. I always feel like I have massively failed if my tax refund or payment is more than $500 or so. That means that either I am cheating myself of a good deal of money every month, or underpaying by a good amount. Really, I'd rather underpay and owe the tax at the end of the year. At least I'll have had the use of that money throughout the year.
I know that the IRS will set a penalty against you if you underpay by a certain amount, but I'm not clear on what level of underpayment you have to reach to trigger penalties. Oddly enough, there is no 'penalty' assessed if you overpay by any amount... even if the amount was quite large. Like it was in my case... embarrassingly large, dinosauric really. Yeah, my so-called refund is enough to buy a brand new Hyundai Accent... not that I need or want a really crappy new car. |
03-05-2009, 12:38 PM | #13 (permalink) |
Twisted
Location: UK
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I worked a few months in California last year... I filed my return a few weeks ago... received my federal refund but it seems all California state refunds have been frozen Hope it gets sorted out soon as I need to close my bank account, seeing as I'm not in the US anymore.
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There are many powers in the world, for good or for evil. Some are greater than I am. Against some I have not yet been measured. But my time is coming. |
03-05-2009, 01:26 PM | #14 (permalink) |
Knight of the Old Republic
Location: Winston-Salem, NC
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We did ours about a month ago. The worst part about the experience was realizing that they took the 2008 stimulus check out of your 2008 tax refund. The $600.00 check that you got early last year? Whoops, all it is is an early tax refund check. So our refund was minus $1,200 due to those stupid checks.
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"A Darwinian attacks his theory, seeking to find flaws. An ID believer defends his theory, seeking to conceal flaws." -Roger Ebert |
03-08-2009, 11:22 AM | #15 (permalink) |
I'll ask when I'm ready....
Location: Firmly in the middle....
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I have ALWAYS had a pro do my taxes. Had to find a new one this year because I didn't want to drive 400 miles round trip to the old tax man. But, the new tax lady did good for my wife and I and we're getting back about $2000 state and fed. This year should be the last "weird" year for taxes, but I'll still keep using a tax pro. Doesn't cost really any more than one of the tax software programs, and a good one will know the loopholes.
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"No laws, no matter how rigidly enforced, can protect a person from their own stupidity." -Me- "Some people are like Slinkies..... They are not really good for anything, but they still bring a smile to your face when you push them down a flight of stairs." -Unknown- DAMMIT! -Jack Bauer- |
03-08-2009, 11:28 AM | #16 (permalink) |
We work alone
Location: Cake Town
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So why is it bad to get a large tax return?
I got around $1500 this year.
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Maturity is knowing you were an idiot in the past. Wisdom is knowing that you'll be an idiot in the future. Common sense is knowing that you should try not to be an idiot now. - J. Jacques |
03-08-2009, 11:43 AM | #17 (permalink) |
Addict
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I was self-employed for most of 2008. I've been hit with a massive tax bill-- $11,200 owed. That's in addition to what I've already paid which is another $3,000. My annual property taxes are another $4,000.
I worked my ass off for that money. And for what? So the government can bail out a bunch of deadbeats, that's what. I would have come out much better working 40-hour weeks instead of 60+ hour weeks. I feel crushed, defeated, and like the biggest chump ever for devoting so much time to my work. A reckoning is coming. I hope I live to see it happen. |
03-09-2009, 03:00 AM | #18 (permalink) | |
Insane
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Quote:
Getting a tax refund is like giving the government a tax free loan. You overpayed your taxes throughout the year, but don't get the money that is rightfully yours back until the end of the year and without any interest. If you had been paying the correct amount of taxes throughout the year you would have had that money in your pocket and could have invested it our put it in the bank and earned some interest on it. |
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03-09-2009, 04:16 AM | #19 (permalink) |
Junkie
Location: Greater Boston area
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I'm getting a large amount back this year. Not enough to buy a new car but sizable none the less. Got to claim our trip to Vegas last year as a business expense, attended a nursing conference for continuing education.
We use an accountant for our returns. he's a bit costly but if I did my own, I don't know if I would catch all the deductions I am allowed. The tax code confuzzles the bejesus out of me. |
03-09-2009, 04:32 AM | #20 (permalink) |
Living in a Warmer Insanity
Super Moderator
Location: Yucatan, Mexico
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I don't do my own. Haven't even looked into it in years. The last time I looked at the "forms" my eye just glazed over and I called the account.
Since I live out of the country I have an automatic extension. Not sure how long it is but the account has all my receipts and info. I think due to my circumstances she waits until everyone else gets done then works on mine after the rush is over.
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I used to drink to drown my sorrows, but the damned things have learned how to swim- Frida Kahlo Vice President Starkizzer Fan Club |
03-09-2009, 05:31 PM | #21 (permalink) |
Asshole
Administrator
Location: Chicago
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I'm married to the daughter of the head tax attorney for a major Chicago-based conglomerate. I use his software, do it myself and ask his opinion about lots of stuff. He's offered to do it for me, but I don't think I'm ever going to let that happen, even though I'm sure he'd do a great job. It just seems....wrong.
I'm expecting a mid-4 figure return from the Feds and low 4 figures from the state. Commission income does screwy things to returns.
__________________
"They that can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety." - B. Franklin "There ought to be limits to freedom." - George W. Bush "We have met the enemy and he is us." - Pogo |
03-09-2009, 05:43 PM | #22 (permalink) | |
Currently sour but formerly Dlishs
Super Moderator
Location: Australia/UAE
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Quote:
me..i'm just glad i live in a country where there is no tax
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An injustice anywhere, is an injustice everywhere I always sign my facebook comments with ()()===========(}. Does that make me gay? - Filthy |
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03-09-2009, 06:04 PM | #23 (permalink) | |
Psycho
Location: Anchorage, AK
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Quote:
What makes things screwy? in a bad way, good way? difficult way? easy way? fill me in! hehe |
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03-09-2009, 06:07 PM | #24 (permalink) |
Asshole
Administrator
Location: Chicago
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I'm bonused twice a year against my draw. Because that amount is variable and usually quite large, it makes my taxes a little complex, especially since the IRS started withholding a flat 25% unless I ask them to do differently, which I usually don't. I'm interested to see what an extra kid does to my return this year.
__________________
"They that can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety." - B. Franklin "There ought to be limits to freedom." - George W. Bush "We have met the enemy and he is us." - Pogo |
01-01-2010, 05:11 PM | #26 (permalink) | |
Upright
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Quote:
-------------------------------------------------------- "Who would believe the ironic truth that the cooperative taxpayer fares much worse than the individual who relies upon his constitutional rights." — Federal Circuit Court Judge Cummins - United States v. Dickerson, 413 F.2d 1111. |
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tax, time |
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