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General Category => General Discussion => Topic started by: hmaria1609 on January 30, 2020, 07:08:18 PM

Title: The Tax Man Cometh!
Post by: hmaria1609 on January 30, 2020, 07:08:18 PM
[Note: This thread was on the old forums so I thought I'd start a new one here]
It's tax season!  And the all the stress that comes with it.  This year's filing deadline is April 15th. 
Share your tax stories...
Title: Re: The Tax Man Cometh!
Post by: pigou on January 31, 2020, 05:18:57 AM
Third or fourth year filing with Credit Karma's (free) tax filing system. Still waiting for a brokerage statement, but my W-2, a couple 1099-MISCs, and one brokerage statement all took about 10 minutes to enter. I guess my financial life is pretty simple, but taxes just don't seem that complicated to me...
Title: Re: The Tax Man Cometh!
Post by: RatGuy on January 31, 2020, 05:24:20 AM
I filed mine yesterday. I owe my state THREE WHOLE DOLLARS.
Title: Re: The Tax Man Cometh!
Post by: Cheerful on January 31, 2020, 01:37:48 PM
Will get started after buying TurboTax.

Not sure whether to buy at Wally World or download from an online vendor.  Any deals?  It's usually around $50.
Title: Re: The Tax Man Cometh!
Post by: clean on January 31, 2020, 04:29:28 PM
If I finish by the end of Spring Break, Ill be happy.  Im teaching an online that that runs for 7 weeks and it seems to eat up every second I throw at it and still wants more!  So I probably wont have any time for taxes before then.
Title: Re: The Tax Man Cometh!
Post by: Vkw10 on January 31, 2020, 06:03:08 PM
Submitted return on Monday. I need to adjust withholding, because I'm getting almost $500 back. I'll do that this weekend.
Title: Re: The Tax Man Cometh!
Post by: polly_mer on February 02, 2020, 06:27:13 AM
We will again take the big box of files to the nice folks at H&R Block, write a check for about $500 about a week later, and consider it a good deal all around.

Unlike pigou, we do have complicated enough taxes that I do a back-of-the-envelope calculation every year and feel relieved that $500 is less than my estimated time to sort out the extra forms for the various types of income we have including detailed offsets and actual losses along with the filings in multiple states where that income was officially earned.

Back when all we had were W-2s and 1099s, I did file everything myself in under an hour, even with multiple states.
Title: Re: The Tax Man Cometh!
Post by: craftyprof on February 02, 2020, 07:38:44 AM
Quote from: Cheerful on January 31, 2020, 01:37:48 PM
Will get started after buying TurboTax.

Not sure whether to buy at Wally World or download from an online vendor.  Any deals?  It's usually around $50.

The mid-tier, itemizing version was $40 online and $40 more for the state directly from TurboTax.  I used to get a discount code from my bank, but either they stopped that or I didn't wait long enough.

If you can't find a better deal, DM me your email address and I can send you the 20% off referral code.
Title: Re: The Tax Man Cometh!
Post by: pigou on February 02, 2020, 09:21:55 AM
Quote from: polly_mer on February 02, 2020, 06:27:13 AM
We will again take the big box of files to the nice folks at H&R Block, write a check for about $500 about a week later, and consider it a good deal all around.
I'm a bit puzzled by the value of H&R Block. The employees there are not trained accountants or tax lawyers, so the rate seems really high: at that price, why not hire a proper CPA?
Title: Re: The Tax Man Cometh!
Post by: polly_mer on February 02, 2020, 12:12:55 PM
Quote from: pigou on February 02, 2020, 09:21:55 AM
Quote from: polly_mer on February 02, 2020, 06:27:13 AM
We will again take the big box of files to the nice folks at H&R Block, write a check for about $500 about a week later, and consider it a good deal all around.
I'm a bit puzzled by the value of H&R Block. The employees there are not trained accountants or tax lawyers, so the rate seems really high: at that price, why not hire a proper CPA?

We're in a small town and have generally lived in small towns. It just so happens that all the local expertise available for hire to the general public is at H&R Block.  That check to H&R Block is the result of paying extra for the proper CPA over and above the random employee following instructions; our next best choice is 100 miles away and costs just as much as the local H&R Block with the CPA premium.

It's fun here in the hinterlands that doesn't work as people expect.

Title: Re: The Tax Man Cometh!
Post by: ciao_yall on February 02, 2020, 01:14:51 PM
Quote from: polly_mer on February 02, 2020, 12:12:55 PM
Quote from: pigou on February 02, 2020, 09:21:55 AM
Quote from: polly_mer on February 02, 2020, 06:27:13 AM
We will again take the big box of files to the nice folks at H&R Block, write a check for about $500 about a week later, and consider it a good deal all around.
I'm a bit puzzled by the value of H&R Block. The employees there are not trained accountants or tax lawyers, so the rate seems really high: at that price, why not hire a proper CPA?

We're in a small town and have generally lived in small towns. It just so happens that all the local expertise available for hire to the general public is at H&R Block.  That check to H&R Block is the result of paying extra for the proper CPA over and above the random employee following instructions; our next best choice is 100 miles away and costs just as much as the local H&R Block with the CPA premium.

It's fun here in the hinterlands that doesn't work as people expect.

H&R Block employees are very well-trained. There is also a Certified Tax Preparer license one can get which enables the holder to prepare taxes even if they are not a full-on CPA.
Title: Re: The Tax Man Cometh!
Post by: flyingbison on February 03, 2020, 09:40:49 AM
Federal and stae returns already filed, and my refunds are scheduled for deposit later this week.
Title: Re: The Tax Man Cometh!
Post by: ab_grp on March 09, 2020, 04:17:41 PM
I've got almost all the documents ready for our preparer.  I printed receipts, made copies of what we couldn't download again if needed, got everything in order, and wrote up a document listing all documents and pertinent notes.  I've also done our precheck in TurboTax separately.  At the start of writing this post, I could not find one document, our property tax bill, and I had not received one of the investment documents that comes out toward mid-March.  I happened to look in a particular direction in my office and spy the tax bill that had been misplaced, and I just received an email with the investment tax document.  So, thank you fora luck or wizards or what have you! I guess I will finish up the package and get it submitted. 
Title: Re: The Tax Man Cometh!
Post by: clean on March 11, 2020, 04:17:35 PM
Turbo Tax is almost ready to go!  I completed the forms, but I might maybe need to wait for another tax form (a K-1 because of a stock I owned last year and sold after realizing it required extra tax issues)

I will wait another 2 weeks, unless the form comes in, and then go ahead and have turbotax file the documents! 

Im expecting $1471 back, unless the K-1changes anything.

You?  What are YOU waiting for?  What refund are you expecting?
Title: Re: The Tax Man Cometh!
Post by: ab_grp on March 11, 2020, 07:36:20 PM
The K-1 is what we had been waiting for.  Fortunately, it got sold off during the year, so this is the last dealings with it.  Our preparer said she hates K-1s!
Title: Re: The Tax Man Cometh!
Post by: dismalist on March 11, 2020, 07:41:47 PM
I don't mind paying income taxes in this low tax country. I cannot deal with the forms!
Title: Re: The Tax Man Cometh!
Post by: clean on March 27, 2020, 09:29:57 AM
I believe that Tax Day was moved to June (maybe it is July).

I just filed!

I had been waiting for a K1 form, but somehow my Turbotax file did not get saved, so I had to redo the whole damn thing!! 

Damn!!  Taxes are not too hard, but getting the w2s and 1099s downloaded from the too many banks and stocks I hold outside of ETrade is a hassle.
But IT IS DONE!


Title: Re: The Tax Man Cometh!
Post by: apl68 on March 27, 2020, 10:15:17 AM
It's now July 15.  So the tax man is not coming as quickly as usual.  That's good news for those who still depend on public libraries for paper forms or computer resources, and can't access them while we're all closed to the public.
Title: Re: The Tax Man Cometh!
Post by: Vkw10 on March 27, 2020, 07:41:32 PM
My local public library is doing curbside loans of laptops, for use in smallest section of parking lot. Advertised as service for people doing taxes and unemployment applications.

Local schools issue chromebooks, preloaded with e-texts, every year. Main section of library parking had carloads of kids doing homework via library wifi this evening.

Glad I did my taxes early, using my home wifi and personal computer. I must remember to count my blessings, including not doing taxes in library parking using borrowed laptop with kids doing homework in backseat.



Title: Re: The Tax Man Cometh!
Post by: hmaria1609 on April 02, 2020, 01:02:54 PM
Type, click, done with mine!
Title: Re: The Tax Man Cometh!
Post by: clean on April 02, 2020, 02:45:56 PM
REFUND ARRIVED!
Only took about 6 days, I think.
Title: Re: The Tax Man Cometh!
Post by: paultuttle on April 04, 2020, 11:02:21 AM
We still have to do our taxes. (We've been distracted a bit here by the coronavirus's new normal.)

Good to know that refunds can come that quickly, by the way . . . .

Title: Re: The Tax Man Cometh!
Post by: ab_grp on April 04, 2020, 01:00:12 PM
I have to download ours from the accountant portal and check them this weekend.  I also need to recalculate our withholdings.  It's not the most exciting weekend activity, but numbers are calming.
Title: Re: The Tax Man Cometh!
Post by: Cheerful on April 04, 2020, 04:44:58 PM
Quote from: ab_grp on April 04, 2020, 01:00:12 PM
It's not the most exciting weekend activity, but numbers are calming.

What a lovely way to characterize the chore of doing taxes, thanks.  "Numbers are calming."  That may be just the motivation I need to get mine done. 
Next week.
Title: Re: The Tax Man Cometh!
Post by: downer on April 11, 2020, 05:32:40 AM
I'm wondering about: Home office decuctions for 2020. Presumably we will all be claiming this next year. Should we do any documentation while in the process?
Title: Re: The Tax Man Cometh!
Post by: polly_mer on April 11, 2020, 05:45:36 AM
Quote from: downer on April 11, 2020, 05:32:40 AM
I'm wondering about: Home office decuctions for 2020. Presumably we will all be claiming this next year. Should we do any documentation while in the process?

Most of us won't meet the requirements of "an area of the home exclusively for business" and "home as a primary place of business" since we're employed elsewhere.
https://www.cnbc.com/2020/03/26/stuck-working-from-home-it-wont-save-you-much-on-your-taxes.html
Title: Re: The Tax Man Cometh!
Post by: downer on April 11, 2020, 05:48:27 AM
Quote from: polly_mer on April 11, 2020, 05:45:36 AM
Quote from: downer on April 11, 2020, 05:32:40 AM
I'm wondering about: Home office decuctions for 2020. Presumably we will all be claiming this next year. Should we do any documentation while in the process?

Most of us won't meet the requirements of "an area of the home exclusively for business" and "home as a primary place of business" since we're employed elsewhere.
https://www.cnbc.com/2020/03/26/stuck-working-from-home-it-wont-save-you-much-on-your-taxes.html

But right now those employed are working from home and may be doing so for the rest of the year. They may be employed elsewhere in a sense, but they are currently being paid to work from home.

Wouldn't it make sense for faculty to make their home offices dedicated exclusively for business -- i.e. teaching and research?
Title: Re: The Tax Man Cometh!
Post by: ciao_yall on April 11, 2020, 09:29:47 AM
Quote from: downer on April 11, 2020, 05:32:40 AM
I'm wondering about: Home office decuctions for 2020. Presumably we will all be claiming this next year. Should we do any documentation while in the process?

It has to be a dedicated, separate space that is only used for work, and realistically not anything else. So your kitchen table, the kids' playroom, etc doesn't count. You also need to be able to document separate costs.

We had a home office deduction in our old house but it worked. It was my husband's business. It was a separate cottage on our property. It was only used for his office - no TV, guest bed, holiday decoration storage, etc. The computer and desk in there were only used for his work purposes. It even had a separate phone line.
Title: Re: The Tax Man Cometh!
Post by: downer on April 11, 2020, 10:16:15 AM
Millions more people will be looking to claim a home office deduction for 2020. There is going to be a practical question for the IRS -- how many of them are they going to investigate? Many people I know have an office that they use for work but will put in a mattress if they have a guest staying.

Obviously if it is just a month (and we are already nearly there), then it won't be worth making the claim. But if it is 10 months, it could be worth shifting furniture around in your home to make a clear home office. It would probably be better for work anyway.

I already have a home office. Last year I just made the standardized claim for it and there was no complaint from the IRS. Though I guess the IRS can audit you several years after filing taxes.

Title: Re: The Tax Man Cometh!
Post by: ciao_yall on April 11, 2020, 03:19:56 PM
Quote from: downer on April 11, 2020, 10:16:15 AM
Millions more people will be looking to claim a home office deduction for 2020. There is going to be a practical question for the IRS -- how many of them are they going to investigate? Many people I know have an office that they use for work but will put in a mattress if they have a guest staying.

Obviously if it is just a month (and we are already nearly there), then it won't be worth making the claim. But if it is 10 months, it could be worth shifting furniture around in your home to make a clear home office. It would probably be better for work anyway.

I already have a home office. Last year I just made the standardized claim for it and there was no complaint from the IRS. Though I guess the IRS can audit you several years after filing taxes.

If you don't have an office elsewhere and it's your only place to work, then you are fine. Still, if you don't incur any extra expenses because you must have this home office, and you don't have incremental income to put against the cost, then you might be running afoul. IANAL nor CPA.
Title: Re: The Tax Man Cometh!
Post by: downer on April 11, 2020, 04:13:57 PM
I didn't give any false info when completing my tax forms, so I'm not too worried. There is some room for interpretation of their definitions though.

But I wasn't posting about my personal situation really. I was thinking that right now, even for all those people who may have offices on campus, it does not count if campus is closed and the governent is telling people to stay home.
Title: Re: The Tax Man Cometh!
Post by: clean on April 11, 2020, 05:31:05 PM
??  IF you claim a home office deduction, are you essentially depreciating part of your house?  IF so, will the depreciation need to be recaptured when you sell your house??
In other words, isn't the paperwork hassle not worth the change in taxes, not to mention the extra documentation?

I am pretty fluent in taxes otherwise, but not for rental property or the home office sorts of deductions. Even when I had schedule C income, I didn't try to deduct for a home office, and that was more than 5 years ago, so things may have changed since I last explored it.

In any event, I am not planning to take advantage of it on next year's taxes. 

But I am interested in the answers to my questions.
Title: Re: The Tax Man Cometh!
Post by: hmaria1609 on March 02, 2021, 07:10:22 PM
*Bumping an old thread*
Tax time! Share away...
This year our community volunteer tax prep partners have changed their service operations to the public. For example, AARP is providing remote help and provided special information packets for the public.
Title: Re: The Tax Man Cometh!
Post by: dismalist on March 02, 2021, 07:29:40 PM
I have no problem paying taxes in this low tax, low service country. I have grave difficulties in filling out the forms. This is all unnecessary.
Title: Re: The Tax Man Cometh!
Post by: arcturus on March 03, 2021, 03:26:44 AM
I filed my taxes last week. I finally got my W4s figured out such that I only owed the state an additional $7 and my federal was close to the actual amount as well (slight overpayment there). 2020 was the first year that I used a Roth 403b, so my total tax paid was higher than the past, both in absolute $$ and effective tax rate. But I think it is worth it (for me) to get more $$ into Roth space at this time/income.
Title: Re: The Tax Man Cometh!
Post by: apl68 on March 03, 2021, 06:48:14 AM
I filed my federal and state forms weeks ago.  Just waiting for my refunds.

We're getting our usual trickle of patrons wanting tax forms at the library.  You can still bulk-order paper forms and booklets through the Taxpayer Forms Outlet Program, and we do so each year.  People invariably start asking about them in January, weeks before they arrive.  They no longer send much of an assortment--just the biggies.  And of course there's no longer a separate 1040-EZ for those of us who have very simple finances.  We can always locate and print any less-common forms that somebody may need.  I've not found that no longer having 1040-EZ complicates things too much.

State forms come separately.  They always get here before the federal forms.
Title: Re: The Tax Man Cometh!
Post by: ab_grp on March 03, 2021, 09:14:17 AM
This is the first year in several that we don't have to wait until mid-March for a particular tax form, which always screws up timing with our accountant (who understands, at least).  But now some other forms are under review, so who knows when they will be ready.  I don't feel like getting everything together until everything is available, but I guess I'll get going on it soon.  We had to file an adjustment last year due to the burdensome investment, and that led to some complications, but hopefully they will be worked out without too much trouble.
Title: Re: The Tax Man Cometh!
Post by: apl68 on March 03, 2021, 10:39:05 AM
Quote from: ab_grp on March 03, 2021, 09:14:17 AM
This is the first year in several that we don't have to wait until mid-March for a particular tax form, which always screws up timing with our accountant (who understands, at least).  But now some other forms are under review, so who knows when they will be ready.  I don't feel like getting everything together until everything is available, but I guess I'll get going on it soon.  We had to file an adjustment last year due to the burdensome investment, and that led to some complications, but hopefully they will be worked out without too much trouble.

We've had years when the library couldn't get forms until mid-March!  We also had a year when our TFOP order apparently went awry and I had to bum forms off of other libraries to have something for our patrons.  Try explaining THAT to patrons!
Title: Re: The Tax Man Cometh!
Post by: Vkw10 on March 04, 2021, 04:24:32 AM
Taxes filed and payment made. I used the IRS withholding calculator to adjust withholding last year, but was a bit too enthusiastic. My goal was to drop from a $3500 refund to a $100 refund, but I ended by owing $200. Still glad I did it, because I boosted savings several thousand.
Title: Re: The Tax Man Cometh!
Post by: apl68 on March 04, 2021, 12:45:59 PM
This is interesting.  We just received a package of Errata sheets for Forms 1040 and 1040-SR, IRA Deduction Worksheet--Schedule 1, Line 19.  Line 3 of the worksheet should read "Enter the amount from Form 1040 or 1040-SR, line 9."

I doubt many people around here even have IRAs.  Which means that the people who have already taken instructions from us are probably not going to be in trouble over this.  We're going to have to tip these in to the relevant instruction booklets.
Title: Re: The Tax Man Cometh!
Post by: Parasaurolophus on March 04, 2021, 01:41:40 PM
The Tax Man  seems to think I made ~$15 000 more than I did, which is confusing.
Title: Re: The Tax Man Cometh!
Post by: hmaria1609 on March 04, 2021, 07:09:27 PM
Quote from: apl68 on March 03, 2021, 10:39:05 AM
We've had years when the library couldn't get forms until mid-March!  We also had a year when our TFOP order apparently went awry and I had to bum forms off of other libraries to have something for our patrons.  Try explaining THAT to patrons!
There was one year the IRS was late distributing forms to the public.

We got a limited quantity of tax materials at my branch library last month--our couriers delivered them during their regular routes. One of my colleagues printed out a selection of federal forms so we can provide them to the public upon request.
Today I gave a patron one of the AARP info. envelopes about tax help along with the tax materials he wanted.

In past years, I've heard stories from patrons who've gone to the local IRS field office and had varying service mileage.
Title: Re: The Tax Man Cometh!
Post by: polly_mer on March 05, 2021, 07:01:08 AM
Our taxes are done.  To answer one of clean's questions: it absolutely is not worth our effort to deal with a home office deduction and I do have an office that is not used for anything else except web browsing on the big screen with a keyboard.  The marginal costs incurred ($500 in new furniture and office stuff, extra utilities) is just not worth it.

Our rental income and the relevant expenses ars worth the effort because that's tens of thousands of dollars.  We're getting a huge refund this year because of rental losses from a tenant who paid less than half of their rent.
Title: Re: The Tax Man Cometh!
Post by: hmaria1609 on March 19, 2021, 07:33:36 PM
From WTOP Radio online: Virginia and DC have extended tax filing deadlines until May 17.
https://wtop.com/virginia/2021/03/va-income-tax-deadline-extended/ (https://wtop.com/virginia/2021/03/va-income-tax-deadline-extended/)
Maryland announced an extension last week.
Title: Re: The Tax Man Cometh!
Post by: polly_mer on March 19, 2021, 08:45:20 PM
The federal government extended the deadline https://www.irs.gov/newsroom/tax-day-for-individuals-extended-to-may-17-treasury-irs-extend-filing-and-payment-deadline

Most states followed the feds last year for extending deadlines.  The trend appears to be states following again this year.
Title: Re: The Tax Man Cometh!
Post by: apl68 on March 20, 2021, 06:10:48 AM
Yesterday was the last day to bulk-order additional tax forms.  We went ahead and ordered some more just to be safe.  We still have many patrons who depend on us for paper forms.  The consolidation of multiple forms into the 1040 packet has done a lot to simplify ordering.
Title: Re: The Tax Man Cometh!
Post by: cathwen on March 21, 2021, 07:43:04 AM
We were just informed that we owe $5000 extra in taxes because a certain state's dept. of taxation thinks we live in a major metropolitan area in a that state.  We do not.  I still work online for one of the universities there, but we haven't lived  there for twelve years. I want to tell the tax people to go knock on the door of wherever they think we live and see who answers.  Then to come here and do the same.  But somehow, I think this will be a long, drawn-out process that will ignore overwhelming evidence and logic.  My husband is in touch with our tax person.  Ugh!
Title: Re: The Tax Man Cometh!
Post by: Harlow2 on March 21, 2021, 04:49:01 PM
Fingers crossed that they can fix it quickly.
Title: Re: The Tax Man Cometh!
Post by: hmaria1609 on April 11, 2021, 01:35:59 PM
Finished my taxes yesterday! I like Turbotax's "import" feature--it meant less manual typing in some sections.
Title: Re: The Tax Man Cometh!
Post by: clean on April 17, 2021, 02:09:57 PM
I have been working on Turbo Tax all damn day so far.

At THIS point I am waiting for my bride to deal with her crypto ventures.

You do not get proper tax forms from Coinbase.  I warned her about this some time ago. In November, just after we got married I had her sell Everything!  and go to cash for 30 days. That way she would, if she continues to trade, have a starting point and we can develop a spreadsheet so that she can track her trades. 
Ive seen issues on the TurboTax help screens that the coinbase (which uses cointracker to provide SOME information) doesnt always load. 

So IF we are not able to download something, then she will spend a day or 2 to FIRST find every Sale in 2020. THEN she will have to go back and identify the source and cost basis of each sale.  THEN she can get a profit/loss for each one.

AFTER ALL OF THAT!  SHE (yes SHE) will have to transfer that information, one trade at a time, into turbotax! 

Maybe AFTER all of THAT she will be dissuaded from her bitcoin gambling  investing. 

I have been suffering some pushback because she sold her bitcoins (at a profit) in the 18K range, but it has been hitting near 60K, so she "lost" $5K or so (I think) because I had her sell and sit out part of the run up.

(Of course I have reminded her, "You never lose money when you sell for a profit".  )

We will SEE if this works.
Title: Re: The Tax Man Cometh!
Post by: Juvenal on April 17, 2021, 03:14:05 PM
I gave up, years ago, taking the time to try to figure out my taxes.  The blizzard of paper that comes in, "Important Tax Document," chills the soul.  I've used an accountant, long since.  I do the rough work; he does the picky work.  I write him a check.  I get hours more sleep that way.  Money?  A distraction.

Title: Re: The Tax Man Cometh!
Post by: clean on April 17, 2021, 03:31:25 PM
the Bride reports, "It will be a lot less transactions this year".  My reply, "I figured this would cure you!"

It is probably nearly done.

I didnt get any stimulus checks because I made too much money as a single person.  I was hoping that getting married would come with a financial boost. So far, it doesnt look like Im getting any checks.  We did delay doing the taxes this time, at least a little, until she got her last stimulus check.  We might have to pay it back, so we have stashed it in the savings account.  We may even make a dollar in interest on it!!

Ill have to do some other research to confirm that I am not due anything now that we have the full numbers. I had already done an estimate and it didnt look like I would qualify, even after married.  Now that we know ALL the numbers, it is not looking good for stimulus! 
Title: Re: The Tax Man Cometh!
Post by: ab_grp on April 17, 2021, 03:48:52 PM
I have also been dealing with taxes on and off for days and am currently trying to figure out various entries.  Thankfully, we have an excellent accountant, but I don't like black boxes and don't trust just signing the completed forms.  I like to be able to figure out at least the broad strokes ahead of time to know what to expect, and it saves some time given that I thoroughly check what our accountant does anyway.  I caught some big issues from our previous accountant, so I just feel more comfortable doing my own calculations in the background and then trying to understand any discrepancies that occur.  However, our taxes are somewhat complicated, and my brain is about to ooze out.  Luckily, no cryptocurrency, at least! Good luck with all of that, clean.
Title: Re: The Tax Man Cometh!
Post by: clean on April 17, 2021, 05:38:48 PM
ONE MORE STEP!!

I have looked over everything and it seems to be complete now. 
But to e-file, I need HER tax form from last year.  She THINKS it is at her parents' house.  (Her father paid to have the taxes done for all of the kids as they had some sort of family limited partnership).  It made no money, but is a pain in the ass to fill out the tax documents in TurboTax.

The document is a K1 I have dealt with K1s in the past.  I owned some stocks that were really limited partnerships and the tax issues were such a pain, I decided to sell them! 

So maybe in another few days I will be able to file!  So glad that I didnt put it off until May!

Im not a happy hubby when I have to deal with all of these forms, and going online to download everything, or go online and take a picture of what I find online, and then entering it... So I started on this about 10 am, I had lunch for 30 minutes, and I m ALMOST done.

AND I actually have 1/2 a clue how to do taxes! 

(Though tracking down the Bride's information was no small part of the day either. Hopefully, next tax year will be easier!)

So MAYBE Ill be able to file by Wednesday!

How are YOU progressing?
Title: Re: The Tax Man Cometh!
Post by: Puget on April 17, 2021, 06:03:10 PM
Done a few weeks ago-- only took a couple of hours to do both federal and state, with the free fillable forms. I owed $350 to the state but got more than $2000 refund on the federal, thanks to mortgage interest, property tax and state tax deductions. Welcome, but made me think about how much the tax code favors home owners over renters (this being my first full tax year as a home owner), which is pretty regressive. I think some portion of rent aught to be deductible for equity.
Title: Re: The Tax Man Cometh!
Post by: ab_grp on April 18, 2021, 09:14:21 AM
We were so, so glad that last year was the final time we had to deal with a K-1.  And then in the summer they distributed corrected forms! So we had to file amended returns.  And then the government thought we owed them money, which we didn't but were advised to just pay it and get it back this year.  At least it should be fully in the rearview at this point.  What a pain in the everywhere.  When we initially met with our accountant, she was visibly displeased that there was a K-1 to handle, so that was definitely a red flag.
Title: Re: The Tax Man Cometh!
Post by: clean on April 18, 2021, 10:28:10 AM
QuoteI think some portion of rent aught to be deductible for equity.

The benefits of home ownership for a large portion of the US Taxpayer base is gone.  Why should there be a benefit to renters?

Especially with the current standard deduction, the benefits of home ownership are quite reduced, and for many eliminated.
You can (perhaps) deduct mortgage interest and property taxes.  You are not able to deduct anything for the equity in the house. Nothing for insurance, nothing for maintenance or repairs, cleaning, mowing, homeowner's association dues, (expenses that a rental company may be able to write off)...

However, given the current value of the standard deduction, a lot fewer are able to deduct those costs because they do not surpass the standard deduction value.  One of the reasons I paid off my house,  nearly a decade ago, was that my mortgage interest no longer allowed me to really deduct the expenses. That is the worst of both worlds! Im paying the bank and NOT getting a deduction for it!

Then I started timing my property taxes. Every other year, I would pay the property taxes in January, and then December, so that every other year, the property taxes, two years together, were marginally above the amount of the standard deduction.  Then Trump removed the personal exemption and increased the Standard Deduction, so even that was lost.  Whether I rent or own, I get the same tax treatment.

Tax policy is often used to encourage things that the government views as desirable (home ownership) , and discourage things that are not desirable (liquor).   

So I am at a loss as to why renters should get a benefit for equity?  They have no equity. 
(and if the government's income is reduced, what services should it cut, or what other taxes should be increased to offset the cut?)
Title: Re: The Tax Man Cometh!
Post by: Puget on April 18, 2021, 11:46:25 AM
Quote from: clean on April 18, 2021, 10:28:10 AM
QuoteI think some portion of rent aught to be deductible for equity.

The benefits of home ownership for a large portion of the US Taxpayer base is gone.  Why should there be a benefit to renters?

Especially with the current standard deduction, the benefits of home ownership are quite reduced, and for many eliminated.
You can (perhaps) deduct mortgage interest and property taxes.  You are not able to deduct anything for the equity in the house. Nothing for insurance, nothing for maintenance or repairs, cleaning, mowing, homeowner's association dues, (expenses that a rental company may be able to write off)...

However, given the current value of the standard deduction, a lot fewer are able to deduct those costs because they do not surpass the standard deduction value.  One of the reasons I paid off my house,  nearly a decade ago, was that my mortgage interest no longer allowed me to really deduct the expenses. That is the worst of both worlds! Im paying the bank and NOT getting a deduction for it!

Then I started timing my property taxes. Every other year, I would pay the property taxes in January, and then December, so that every other year, the property taxes, two years together, were marginally above the amount of the standard deduction.  Then Trump removed the personal exemption and increased the Standard Deduction, so even that was lost.  Whether I rent or own, I get the same tax treatment.

Tax policy is often used to encourage things that the government views as desirable (home ownership) , and discourage things that are not desirable (liquor).   

So I am at a loss as to why renters should get a benefit for equity?  They have no equity. 
(and if the government's income is reduced, what services should it cut, or what other taxes should be increased to offset the cut?)

Perhaps I should have used the word equality rather than equity -- I didn't mean anything regarding equity in the home.

In a high CoL, high tax, area like where I live, the deductions (interest, property tax, state income tax) are generally far more than the standard deduction. Renters also pay high rent here but get no deduction for it. I don't think that's particularly fair.

As for how to pay for it, how about raising taxes on the rich? (Not an answer you'll like I'm sure).
Title: Re: The Tax Man Cometh!
Post by: dismalist on April 18, 2021, 12:00:54 PM
Quote from: Puget on April 18, 2021, 11:46:25 AM
Quote from: clean on April 18, 2021, 10:28:10 AM
QuoteI think some portion of rent aught to be deductible for equity.

The benefits of home ownership for a large portion of the US Taxpayer base is gone.  Why should there be a benefit to renters?

Especially with the current standard deduction, the benefits of home ownership are quite reduced, and for many eliminated.
You can (perhaps) deduct mortgage interest and property taxes.  You are not able to deduct anything for the equity in the house. Nothing for insurance, nothing for maintenance or repairs, cleaning, mowing, homeowner's association dues, (expenses that a rental company may be able to write off)...

However, given the current value of the standard deduction, a lot fewer are able to deduct those costs because they do not surpass the standard deduction value.  One of the reasons I paid off my house,  nearly a decade ago, was that my mortgage interest no longer allowed me to really deduct the expenses. That is the worst of both worlds! Im paying the bank and NOT getting a deduction for it!

Then I started timing my property taxes. Every other year, I would pay the property taxes in January, and then December, so that every other year, the property taxes, two years together, were marginally above the amount of the standard deduction.  Then Trump removed the personal exemption and increased the Standard Deduction, so even that was lost.  Whether I rent or own, I get the same tax treatment.

Tax policy is often used to encourage things that the government views as desirable (home ownership) , and discourage things that are not desirable (liquor).   

So I am at a loss as to why renters should get a benefit for equity?  They have no equity. 
(and if the government's income is reduced, what services should it cut, or what other taxes should be increased to offset the cut?)

Perhaps I should have used the word equality rather than equity -- I didn't mean anything regarding equity in the home.

In a high CoL, high tax, area like where I live, the deductions (interest, property tax, state income tax) are generally far more than the standard deduction. Renters also pay high rent here but get no deduction for it. I don't think that's particularly fair.

As for how to pay for it, how about raising taxes on the rich? (Not an answer you'll like I'm sure).

Nah, get rid of the mortgage interest deduction altogether!

The beneficiaries were those who used it first. After that, it's effect is n house prices.

There is no good reason for its existence. If one is going to deduct interest as a cost, one must add imputed rent to income! That doesn't happen, so abolish.

The poor never benefited from the deduction anyway.

The use of the deduction for high cost homes has been more and more limited, so it's on the way out anyway.
Title: Re: The Tax Man Cometh!
Post by: clean on April 18, 2021, 12:13:12 PM
Quotehow about raising taxes on the rich? (Not an answer you'll like I'm sure).

In the olden days, the promise was "a chicken in every pot".  IF you had 2 chickens, you were 'rich'?

"rich" is a meaningless term. 

Is "rich" wealthy?  si someone wealthy IF they have saved and saved  (exchanging current consumption for the promise of future consumption) and invested wisely in a retirement account they are not even able to access until they leave their job, should they pay more because they didnt consume earlier?

IS 'rich' income? 
President Biden says that he will not increase taxes on anyone earning over 400K.  That is great, as I dont make that.  However, not too many years ago, you were 'rich' if you and your spouse earned over 44K while collecting social security.  That value was not indexed, so today if you earn more than 44K a year (including 1/2 of your social security, plus interest on tax free bonds!), you pay taxes on your social security because you are NOW "rich" by THAT 1980something definition. 

Title: Re: The Tax Man Cometh!
Post by: Juvenal on April 18, 2021, 01:10:14 PM
Quote from: clean on April 18, 2021, 12:13:12 PM
Quotehow about raising taxes on the rich? (Not an answer you'll like I'm sure).

In the olden days, the promise was "a chicken in every pot".  IF you had 2 chickens, you were 'rich'?



If you had two pots, and someone had only one chicken, you could charge for the use of your extra pot.  I think that could be called a kind of rent.  Assuming you had pot #1 and an unmortgated fowl for your own use.
Title: Re: The Tax Man Cometh!
Post by: clean on April 22, 2021, 12:17:54 PM
Taxes filed And FINALLY accepted!! 

after much grinding of teeth and pulling of hair, I have found the error and made the correction!

Our refund is one of the smallest I have ever had ($153) and it took the most pain and agony of ANY I have ever filed! 

But it is DONE!!


Hopefully, I am the board's lager!  Im just sayin... I have half a clue on how to do taxes, and this one took me 5 days to finally get finished and accepted. IF I had waited until the current May 15 deadline to start, I would be really stressed! 

SO please learn from my experience... Do NOT delay!  Something will always pop up to cause some issue or another!
Title: Re: The Tax Man Cometh!
Post by: wareagle on April 22, 2021, 12:41:36 PM
Nah, I'm lagging yet.  Waiting for Mr. Eagle to sign off; he's been out of town.  I had to do paper, fillable .pdfs this year because my ancient iMac was too old for tax software - could not upgrade the OS anymore.  Poor thing, it IS nine years old, but still works well....

Title: Re: The Tax Man Cometh!
Post by: Juvenal on April 29, 2021, 08:49:59 AM
Quote from: wareagle on April 22, 2021, 12:41:36 PM
Nah, I'm lagging yet.  Waiting for Mr. Eagle to sign off; he's been out of town.  I had to do paper, fillable .pdfs this year because my ancient iMac was too old for tax software - could not upgrade the OS anymore.  Poor thing, it IS nine years old, but still works well....

Yes, us poor old "vintage" iMac users.  My tottering antique is thirteen years old.  Certain annoyances that seem not (easily; by me) fixable have crept it, but so far a work-around has been found.  My background includes a certain amount of "Use it up.  Wear it out.  Make do.  Do without."  I'll go along up until "Do without" comes sneaking down the road.  Maybe desktops last longer than laptops, but to me a laptop is a kind of touchy toy.  A desktop is a real machine.
Title: Re: The Tax Man Cometh!
Post by: Parasaurolophus on April 29, 2021, 10:45:10 AM
Done, with a minimum of hassle. And I have an enormous return coming. Whew!
Title: Re: The Tax Man Cometh!
Post by: wareagle on April 29, 2021, 02:16:35 PM
Quote from: Juvenal on April 29, 2021, 08:49:59 AM
Quote from: wareagle on April 22, 2021, 12:41:36 PM
Nah, I'm lagging yet.  Waiting for Mr. Eagle to sign off; he's been out of town.  I had to do paper, fillable .pdfs this year because my ancient iMac was too old for tax software - could not upgrade the OS anymore.  Poor thing, it IS nine years old, but still works well....

Yes, us poor old "vintage" iMac users.  My tottering antique is thirteen years old.  Certain annoyances that seem not (easily; by me) fixable have crept it, but so far a work-around has been found.  My background includes a certain amount of "Use it up.  Wear it out.  Make do.  Do without."  I'll go along up until "Do without" comes sneaking down the road.  Maybe desktops last longer than laptops, but to me a laptop is a kind of touchy toy.  A desktop is a real machine.

I have one of that vintage as well, plus the really old "lamp" style iMac that I bought in 2002.  The current one has lasted far longer than any of its predecessors; I try to replace them every four years but kept putting it off and putting it off.

I went with a MacBook Air this time.  I'm not big on laptops - like you, I agree that they're finicky toys.  But retirement looms and I plan to be a vagabond for awhile.  So the laptop seemed a better option.
Title: Re: The Tax Man Cometh!
Post by: Economizer on May 01, 2021, 07:47:20 PM
Easy listening, event appropriate music that will probably be more appropriate next year: "TAXMAN", by The Beatles.
Title: Re: The Tax Man Cometh!
Post by: Economizer on May 02, 2021, 08:14:23 AM
I filed a "close approxamitation" tax return
through an online tax preparation service
in early April and have yet to receive an acceptance notice. Should I file a hard copy return with more belie correct information if my initial submittance is not "accepted" soon, you think?
Title: Re: The Tax Man Cometh!
Post by: clean on May 02, 2021, 09:19:00 AM
I think that I would be checking the status with the service.  Why is it taking so long to get a yea or nea from the IRS?  You are not asking "where is my refund?", but "Did you get my forms?"

IF you have more complete information now, the service you are using may be able to resubmit the corrected/accurate file now.
Title: Re: The Tax Man Cometh!
Post by: Economizer on May 02, 2021, 11:20:24 PM
Quote from: clean on May 02, 2021, 09:19:00 AM
I think that I would be checking the status with the service.  Why is it taking so long to get a yea or nea from the IRS?  You are not asking "where is my refund?", but "Did you get my forms?"

IF you have more complete information now, the service you are using may be able to resubmit the corrected/accurate file now.
Thank you
Title: Re: The Tax Man Cometh!
Post by: kaysixteen on May 04, 2021, 02:32:23 PM
WRT taxes, how many of you have gotten refunds yet, and how long has it taken to get it?   Also, if any of you had to claim any of the first two stim chex on your 2020 taxes, were you able to do so without problem, and did they come?  The IRS seems very back-logged-- I am still waiting on my 2019 refund, largely because of a paperwork snafu last summer, which the IRS did not get around to letting me know of till the first of December.   I sent them the work they wanted but as of my last checking on line, earlier today, it is still being processed.  This prevented me from getting the January $600 stim check, which I will have to declare as an extra refund on my 2020 taxes, and I cannot get the third stim check from the March relief bill, till I file those taxes, which I had been waiting to do until after I ultimately got that 2019 refund, wanting to avoid having to have the IRS deal with 2 years' of refunds at the same time for me, but as I am running out of time, I am going to file the 2020 this week and hope for the best.
Title: Re: The Tax Man Cometh!
Post by: Puget on May 04, 2021, 03:12:05 PM
Quote from: kaysixteen on May 04, 2021, 02:32:23 PM
WRT taxes, how many of you have gotten refunds yet, and how long has it taken to get it?   Also, if any of you had to claim any of the first two stim chex on your 2020 taxes, were you able to do so without problem, and did they come?  The IRS seems very back-logged-- I am still waiting on my 2019 refund, largely because of a paperwork snafu last summer, which the IRS did not get around to letting me know of till the first of December.   I sent them the work they wanted but as of my last checking on line, earlier today, it is still being processed.  This prevented me from getting the January $600 stim check, which I will have to declare as an extra refund on my 2020 taxes, and I cannot get the third stim check from the March relief bill, till I file those taxes, which I had been waiting to do until after I ultimately got that 2019 refund, wanting to avoid having to have the IRS deal with 2 years' of refunds at the same time for me, but as I am running out of time, I am going to file the 2020 this week and hope for the best.

I got my refund direct deposited within days of e-filing my taxes.
I'm in the privileged position of earning too much to qualify for relief checks, so can't speak to that.
Title: Re: The Tax Man Cometh!
Post by: clean on May 04, 2021, 04:17:53 PM
QuoteI got my refund direct deposited within days of e-filing my taxes.
I'm in the privileged position of earning too much to qualify for relief checks, so can't speak to that.

Similarly, our refund arrived fairly quickly.

I did not get the stimulus checks because as a singleton, I made too much money.  I expected that getting married would help, but our combined income was more than I had expected as she didnt really know what her income wasSo when all was said and done, together, we made slightly over the cap.

However, I had looked into it earlier in the year and determined that was likely the case, so delayed submitting taxes.  She was able to get the last check as the government still had her status as single.  Just to be safe, we simply stashed that check into savings so that IF next year's taxes require it returned (or added to income), the money will be there (earning .005%!!  -- not even happy meal money!!)
Title: Re: The Tax Man Cometh!
Post by: Vkw10 on May 04, 2021, 05:09:02 PM
Quote from: kaysixteen on May 04, 2021, 02:32:23 PM
WRT taxes, how many of you have gotten refunds yet, and how long has it taken to get it?   Also, if any of you had to claim any of the first two stim chex on your 2020 taxes, were you able to do so without problem, and did they come?  The IRS seems very back-logged-- I am still waiting on my 2019 refund, largely because of a paperwork snafu last summer, which the IRS did not get around to letting me know of till the first of December. 

My payment was withdrawn from checking very quickly.

The IRS processing center in NearbyCity is desperate to hire seasonal workers to help with backlog. Nephew and his friends had their choice of full-time, part-time, weekdays, weekends, day shift, night shift. Minimum $15 an hour, with no experience and just high school diploma or GED. Told me I should apply for weekend job, to bump up my retirement fund.
Title: Re: The Tax Man Cometh!
Post by: apl68 on May 05, 2021, 06:18:09 AM
Quote from: kaysixteen on May 04, 2021, 02:32:23 PM
WRT taxes, how many of you have gotten refunds yet, and how long has it taken to get it?   Also, if any of you had to claim any of the first two stim chex on your 2020 taxes, were you able to do so without problem, and did they come?  The IRS seems very back-logged-- I am still waiting on my 2019 refund, largely because of a paperwork snafu last summer, which the IRS did not get around to letting me know of till the first of December.   I sent them the work they wanted but as of my last checking on line, earlier today, it is still being processed.  This prevented me from getting the January $600 stim check, which I will have to declare as an extra refund on my 2020 taxes, and I cannot get the third stim check from the March relief bill, till I file those taxes, which I had been waiting to do until after I ultimately got that 2019 refund, wanting to avoid having to have the IRS deal with 2 years' of refunds at the same time for me, but as I am running out of time, I am going to file the 2020 this week and hope for the best.

Filed my taxes early, had to wait a couple of months for the federal refund, but it all went smoothly.
Title: Re: The Tax Man Cometh!
Post by: kaysixteen on May 06, 2021, 09:12:50 PM
Thanks to all.   One more question-- I have never electronically filed taxes before.... how does one send in one's W2 forms when one does so? What are the security aspects to doing this?   Is e-filing done via email or fax?
Title: Re: The Tax Man Cometh!
Post by: clean on May 06, 2021, 09:28:03 PM
You enter the information from the W2 into the software (though some programs and employers will let you download the file directly). You do not mail it in.  (Remember that the IRS already has the information anyway!)

The eFile is done using electronic information directly to the IRS, neither email nor fax.  By using eFile, your information is entered directly into the IRS computers.  IF you mail it, someone has to transpose (or attempt to electronically read) the file, potentially causing errors. 

that is one of the reasons eFile is so much faster. 
Title: Re: The Tax Man Cometh!
Post by: Puget on May 07, 2021, 06:46:20 AM
Quote from: kaysixteen on May 06, 2021, 09:12:50 PM
Thanks to all.   One more question-- I have never electronically filed taxes before.... how does one send in one's W2 forms when one does so? What are the security aspects to doing this?   Is e-filing done via email or fax?

Kay, if your income is below $72k, you can use tax software to e-file for free, but you must access it through the IRS website:
https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free
There are a lot of different options which may get confusing but they have a lookup tool that will match you with the best one for you (age, income, state, etc.).

If your income is above that, you can still e-file for free using online fillable forms that are just like the paper forms (same link)-- if your return is simple and you are comfortable with a 1040 form, that may even be faster.

Either way, as Clean says, you will enter the information from your W2(s). You do not mail anything.

If you are owed a refund, there will be a place at the end to enter your routing and account number for direct deposit.

You can do this!
Title: Re: The Tax Man Cometh!
Post by: kaysixteen on May 07, 2021, 10:00:56 PM
ok, thanks again.   So if you do it this way, I am assuming you'll get some sort of confirmation email saying you did file?  And a chance to download your forms and save them, before hitting send?
Title: Re: The Tax Man Cometh!
Post by: Puget on May 08, 2021, 07:03:21 AM
Quote from: kaysixteen on May 07, 2021, 10:00:56 PM
ok, thanks again.   So if you do it this way, I am assuming you'll get some sort of confirmation email saying you did file?  And a chance to download your forms and save them, before hitting send?

Yes to both, and you will receive another automated email (usually within a day) saying your return has been accepted (processing is MUCH faster than with paper forms).
Title: Re: The Tax Man Cometh!
Post by: lightning on May 11, 2021, 02:01:50 AM
TurboTax 2020 (client software) is not compatible with the OS on my 5-year-old MacBook Air (OS upgraded as far as it can on my old MacBook Air), so I was forced to do online TurboTax. I didn't have time to do a workaround.

F**k turbotax. It seems that turbotax thinks a five year old MAC with the highest version of High Sierra is not worthy of their turbotax 2020 software. Now that I have more advanced notice of their douchebaggery, I'm looking at other options for 2021. Does anyone use the H&R Block software? Is anyone happy with it?
Title: Re: The Tax Man Cometh!
Post by: FishProf on May 11, 2021, 03:53:33 AM
I've used the Credit Karma free filing for the last three years.  No complaints.
Title: Re: The Tax Man Cometh!
Post by: lightning on May 11, 2021, 06:21:10 AM
Quote from: FishProf on May 11, 2021, 03:53:33 AM
I've used the Credit Karma free filing for the last three years.  No complaints.

thanks!
Title: Re: The Tax Man Cometh!
Post by: Puget on May 11, 2021, 06:40:34 AM
Quote from: lightning on May 11, 2021, 02:01:50 AM
TurboTax 2020 (client software) is not compatible with the OS on my 5-year-old MacBook Air (OS upgraded as far as it can on my old MacBook Air), so I was forced to do online TurboTax. I didn't have time to do a workaround.

F**k turbotax. It seems that turbotax thinks a five year old MAC with the highest version of High Sierra is not worthy of their turbotax 2020 software. Now that I have more advanced notice of their douchebaggery, I'm looking at other options for 2021. Does anyone use the H&R Block software? Is anyone happy with it?

Honestly unless your taxes are really complicated I find it faster to just use the free fillable forms to e-file than to answer a gazillion questions that mostly don't apply in tax software. Even with itemizing and having to do a schedule 1 it only takes me an hour or so.
Title: Re: The Tax Man Cometh!
Post by: clean on May 11, 2021, 11:11:50 AM
Quote

Honestly unless your taxes are really complicated I find it faster to just use the free fillable forms to e-file than to answer a gazillion questions that mostly don't apply in tax software. Even with itemizing and having to do a schedule 1 it only takes me an hour or so.

I used TurboTax starting some time ago because it is so difficult/time consuming to type the ETrade information and TT will download it all quickly.

Title: Re: The Tax Man Cometh!
Post by: evil_physics_witchcraft on May 12, 2021, 02:04:18 PM
Interthreaduality.

I had an issue with the software today. TaxAct wanted me to PAY for my state file. Can you imagine? The nerve! :)

So, I had to go back and do it all again (much faster the 2nd time) and didn't have to pay to file federal or state. Federal was accepted. I'm now waiting on the state.

I think I got into some weird feature which is why the program wanted to charge me 90 bucks to file state and something else. Bah!
Title: Re: The Tax Man Cometh!
Post by: kaysixteen on May 13, 2021, 11:24:12 PM
So I did decide to do the free efile option, given that my income qualifies.   I  go  to the IRS site, and it gives me '8 free offers you may qualify for'.   I do not know which firm to select, but as they are free, and linked via the IRS site, what the heck.  I pick one.   I complete the fed tax form, which I had already figured out myself (I am using the efile only to get it done asap, get refund and back stim payments, etc-- I have already computed both state and fed forms on paper).   This site did do my fed form correctly, and also did state form.   Problem was, they messed up the MA state form big-time, as they did not allow me anywhere to  take my renter deduction and several other state deductions, making my refund about $150 less.   Ah well, I decided just to file the fed form with this company, as it was correct and free.   But it would not let me file fed only, insisted I pay $37.50 to file the state form, which they had incorrectly computed.   The hell with that.  I went back to the IRS site and chose another firm, and did not have to even have it attempt the state form, which is remarkably compex here in MA, and which I will just drop into the mailbox tomorrow anyhow.   I am wondering whether I should send a complaint letter wrt the first incompetent and bait-and-switch firm, to the MA state tax dept?
Title: Re: The Tax Man Cometh!
Post by: paultuttle on May 16, 2021, 02:34:39 PM
I would, if I were in your shoes. These firms advertise that they know what they're doing, regardless of the state(s) you live in, so that kind of screw up is on them, IMHO.

We just finished filing our federal and state tax forms via TurboTax. I'm always surprised by how easy it is but how unnecessarily cumbersome it is as well.

Oh, well--at least that's done. Onward and upward, to infinity and beyond! (grin)
Title: Re: The Tax Man Cometh!
Post by: Anselm on June 15, 2021, 01:43:31 PM
Well, I filed the traditional paper way back around April 23rd and I am still waiting for my refund.  The IRS website shows me nothing so far when I check the status.  I already got my state refund a month ago.   Last year I filed around April 15th and did not get the refund until August 7th.  I was hoping that pandemic related delays got cleared up by now.  I just wanted to see if anybody else has had the same experience as me.
Title: Re: The Tax Man Cometh!
Post by: mamselle on June 15, 2021, 03:02:26 PM
If you're in the south, or have items being mailed from or through the southern US states, the damaged sorters have not been fixed and those that were removed have not yet been replaced, if the experiences we continue to have with the N/P I'm (still!) working for are any indication.

Over four weeks for a packet to arrive at the bank's main customer service office, and another four (and counting) for them to send the approvals back.

Their offices are in AZ and FL, and they themselves say this is what they're seeing across the board.

M.
Title: Re: The Tax Man Cometh!
Post by: lightning on June 15, 2021, 07:08:42 PM
And don't think that the electronic filers are having a better time of it. I'm dealing with a state taxing agency who, despite the automation of e-filing returns, can't seem to do anything right.   Dealing with this and reading about unreliable and slow postal services makes me feel like I'm living in a 3rd-world country.
Title: Re: The Tax Man Cometh!
Post by: kaysixteen on June 15, 2021, 11:18:42 PM
Anyone ever have experience with having year 1's refund not yet received when you have then also filed year 2's?   I am really hoping this does not mess up  my account with the IRS more than it obviously already is.   I do think I did ultimately file the correct paperwork to fix the 2019 error, back in Dec.  when they finally got round to telling me about it(error will be in my favor), but I do not know.   I also remain highly skeptical wrt the efficacy of the free online fed tax filing service I used this year...
Title: Re: The Tax Man Cometh!
Post by: kaysixteen on July 16, 2021, 10:38:17 PM
An update of sorts... I just yesterday got, in paper form, my $1400 stim check.  I have however not gotten refunds for either 2019 or 2020, the latter of which will also include the $600 from December.   I have thus decided to bite the bullet and call the IRS monday.   Any suggestions as to how to talk with them?
Title: Re: The Tax Man Cometh!
Post by: clean on July 17, 2021, 09:35:44 AM
QuoteAny suggestions as to how to talk with them?

Politely and pleadingly.

Suggest that you need someone who knows the system and can help you navigate this long standing problem.

"I am so happy that I got an expert on these types of problems'
"I know that YOU can help me!"
"You can resolve this problem for me, FINALLY, because you are so knowledgeable about the system"

I doubt that they get many ego boosts, and if you can get them to be your advocate to even the slightest degree it will help a lot.
Title: Re: The Tax Man Cometh!
Post by: fleabite on July 17, 2021, 09:48:48 AM
The IRS is deeply underfunded, which is why it is taking so long for them to handle more complex issues (not to mention the months they didn't have access to returns during the pandemic). They also had a lot of extra work associated with the stimulus payments.
Title: Re: The Tax Man Cometh!
Post by: mamselle on July 17, 2021, 10:15:11 AM
And anything sent via USPS from anyplace in the south is still taking forever to get anywhere else.

So while a processing office might be in your state, the checks might be cut and mailed from somewhere else.

The N/P I continue to assist with is STILL waiting for bank materials to arrive, they're taking 3 weeks minimum to go from point A to point B.

M.
Title: Re: The Tax Man Cometh!
Post by: lightning on August 15, 2021, 12:15:51 PM
Quote from: lightning on May 11, 2021, 02:01:50 AM
TurboTax 2020 (client software) is not compatible with the OS on my 5-year-old MacBook Air (OS upgraded as far as it can on my old MacBook Air), so I was forced to do online TurboTax. I didn't have time to do a workaround.

F**k turbotax. It seems that turbotax thinks a five year old MAC with the highest version of High Sierra is not worthy of their turbotax 2020 software. Now that I have more advanced notice of their douchebaggery, I'm looking at other options for 2021. Does anyone use the H&R Block software? Is anyone happy with it?

I had someone look over my tax return that turbotax generated. I overpaid my tax. It's really not that much, but I paid a lot of money to turbotax for making sure that my return was accurate. I'm filing an amended return. F**k turbotax.
Title: Re: The Tax Man Cometh!
Post by: Anselm on August 15, 2021, 12:48:42 PM
I just got my refund last week.
Title: Re: The Tax Man Cometh!
Post by: jimbogumbo on August 15, 2021, 03:40:51 PM
I still have not received my Federal or State refund.
Title: Re: The Tax Man Cometh!
Post by: hmaria1609 on February 22, 2022, 07:42:18 PM
*Bump*
Tax season is underway! Filing deadline is April 18th.

AARP is providing in person tax prep help by appointment only this year.
Title: Re: The Tax Man Cometh!
Post by: clean on March 10, 2022, 07:46:11 AM
spring break approaches.  That means that it is nearing time to buy my copy of TurboTax.  As I have to wait for the damned K1 forms that are not even mailed before 3/15, there is no real rush to try to get the taxes done. 
.  )
Title: Re: The Tax Man Cometh!
Post by: ab_grp on March 10, 2022, 09:07:52 AM
I started my pre-accountant tax analysis but need to get that done so we can get the packet to her next week.  But no K1 for us this year, thank goodness! And I am very grateful to myself for sending myself an email last year with details about municipal and US territory and government obligations and where to find them in the consolidated investment forms.
Title: Re: The Tax Man Cometh!
Post by: sinenomine on March 10, 2022, 10:37:36 AM
The CPA had my taxes done early last month. Oddly, I owed the exact same amount to both the state and the feds. Never had that happen before.
Title: Re: The Tax Man Cometh!
Post by: clean on March 30, 2022, 12:27:13 PM
April Looms and I have not even purchased TurboTax yet!

My computer hard drive died in January, so I might have lost some of last year's information. I hope not, but it is possible that I will have to reenter the information to make the program run.  I am not looking forward to it!

My bride is a very small party to a family limited partnership, so I am also waiting for the K1 to be done so that I can begin to think about doing the taxes.  I can certainly do other sections and return to that once I get the forms from my father in law.

HOW are you coming on YOUR taxes??  Any progress?  have you already got the refund spent?  (did you get the check first, or just spend it in anticipation of the money hitting the account?)
Title: Re: The Tax Man Cometh!
Post by: Puget on March 30, 2022, 02:15:18 PM
Quote from: clean on March 30, 2022, 12:27:13 PM
April Looms and I have not even purchased TurboTax yet!

My computer hard drive died in January, so I might have lost some of last year's information. I hope not, but it is possible that I will have to reenter the information to make the program run.  I am not looking forward to it!

My bride is a very small party to a family limited partnership, so I am also waiting for the K1 to be done so that I can begin to think about doing the taxes.  I can certainly do other sections and return to that once I get the forms from my father in law.

HOW are you coming on YOUR taxes??  Any progress?  have you already got the refund spent?  (did you get the check first, or just spend it in anticipation of the money hitting the account?)

Thanks for the reminder/motivation-- I need to do this soon.

So far I've downloaded my W2 (my employer does not mail them any more). Like your wife, I also have a share in a small family limited partnership-- my dad is on top of things and already sent me K1. I need to download tax forms from the bank and gather up the various things for itemization (from a societal standpoint I think it's nuts how tax advantaged owning a home is vs. renting, but that doesn't mean I'm not going to take advantage of that mortgage interest deduction!).

I just use the free fillable forms on the IRS website. It does the math for you, and I use last year's forms as a guide. I actually think it is faster for me than answering a bazillion questions in tax prep software though I'm sure for folks with much more complex returns that isn't true.
Title: Re: The Tax Man Cometh!
Post by: clean on March 30, 2022, 05:05:20 PM
Quotea societal standpoint I think it's nuts how tax advantaged owning a home is vs. renting, but that doesn't mean I'm not going to take advantage of that mortgage interest deduction!).

I suppose that it depends on the state.  (what real estate costs and thus the size of the loan and the interest payment). 
GIven the more recent standard deduction of $24xxx, a lot fewer people can deduct the mortgage interest. 

(My house has long since been paid off, but there was extra pressure to get it done once I no longer had enough interest and property taxes to make itemizing possible). 

Title: Re: The Tax Man Cometh!
Post by: mamselle on March 30, 2022, 06:05:42 PM
Some states allow 1/2 annual rent deductions on the state tax.

M.
Title: Re: The Tax Man Cometh!
Post by: Puget on March 30, 2022, 07:12:18 PM
Quote from: clean on March 30, 2022, 05:05:20 PM
Quotea societal standpoint I think it's nuts how tax advantaged owning a home is vs. renting, but that doesn't mean I'm not going to take advantage of that mortgage interest deduction!).

I suppose that it depends on the state.  (what real estate costs and thus the size of the loan and the interest payment). 
GIven the more recent standard deduction of $24xxx, a lot fewer people can deduct the mortgage interest. 

(My house has long since been paid off, but there was extra pressure to get it done once I no longer had enough interest and property taxes to make itemizing possible).

Certainly it does depend on local conditions. Here, both renting and buying are $$$, but the rent to buy ratio definitely favors buying if you can. My mortgage payments + insurance + property taxes for my house are still slightly under what I was paying for a 1 bedroom apartment. The mortgage interest deduction makes it even more favorable. Plus it is a good investment here.  But of course, those are advantages I only had access to because I could afford a down payment and all the other upfront costs and had good credit. That's what I object to.

Quote from: mamselle on March 30, 2022, 06:05:42 PM
Some states allow 1/2 annual rent deductions on the state tax.

M.

Which is nice, but state income taxes are generally much lower than federal, so this is a lot less of a deduction.
Title: Re: The Tax Man Cometh!
Post by: Juvenal on March 31, 2022, 05:02:00 AM
It's been years since I could be confident enough to do my own taxes.  Yes, yes, I use an accountant.  It's not trouble-free, as I have to organize all those "Important Tax Document Enclosed" documents and there are other complications.

It's not cheap, but it's one of those "wave my magic checkbook" to get things done I once was able to do myself (here, I'm talking about things like yard work).
Title: Re: The Tax Man Cometh!
Post by: Parasaurolophus on April 04, 2022, 09:49:21 AM
Sent 'em in (to the accountant).
Title: Re: The Tax Man Cometh!
Post by: ergative on April 04, 2022, 12:58:14 PM
Absolutive sent ours off today. I think we'll probably need to hire someone to do them for us next year; some big financial changes (probably) this summer which will make everything more complicated.
Title: Re: The Tax Man Cometh!
Post by: arcturus on April 04, 2022, 04:49:48 PM
What I learned today after carefully reading the documentation that came with my property tax bill: a cap is not a cap. At the top of the bill it states clearly that property taxes are constitutionally capped at 1% of property values. Yet my bill is for more than 1% of the assessed value. Apparently we can vote to exceed the cap with a local referendum. Who knew? And, if we can do this locally, why does the state keep shooting down all the other attempts to increase local revenue? We are a little [color] bubble in a very [other color] state.
Title: Re: The Tax Man Cometh!
Post by: Puget on April 04, 2022, 05:19:33 PM
Quote from: arcturus on April 04, 2022, 04:49:48 PM
What I learned today after carefully reading the documentation that came with my property tax bill: a cap is not a cap. At the top of the bill it states clearly that property taxes are constitutionally capped at 1% of property values. Yet my bill is for more than 1% of the assessed value. Apparently we can vote to exceed the cap with a local referendum. Who knew? And, if we can do this locally, why does the state keep shooting down all the other attempts to increase local revenue? We are a little [color] bubble in a very [other color] state.

Property tax levies are a very common way to raise local revenue (for schools, fire departments and all sorts of other things) in states I've lived in where ballot measures are common.
Title: Re: The Tax Man Cometh!
Post by: ciao_yall on April 04, 2022, 07:55:38 PM
Quote from: arcturus on April 04, 2022, 04:49:48 PM
What I learned today after carefully reading the documentation that came with my property tax bill: a cap is not a cap. At the top of the bill it states clearly that property taxes are constitutionally capped at 1% of property values. Yet my bill is for more than 1% of the assessed value. Apparently we can vote to exceed the cap with a local referendum. Who knew? And, if we can do this locally, why does the state keep shooting down all the other attempts to increase local revenue? We are a little [color] bubble in a very [other color] state.

Are you in CA?

Oh, that's a conversation. Call me sometime if you are having trouble sleeping at 3 AM and I'll have you sawing logs real fast.
Title: Re: The Tax Man Cometh!
Post by: financeguy on April 05, 2022, 10:05:37 AM
Speaking of CA property taxes, it's unfortunate that the provision leading to children being able to inherit their parent's property tax rate was not found to violate the equal protection clause of the constitution when it went to the supreme court in the 70s. I can't think of anything that establishes a caste system more than two people with equally valued properties, one of whom inherited and thus pays a couple thousand in property taxes, the other did something productive and pays twenty thousand.
Title: Re: The Tax Man Cometh!
Post by: kaysixteen on April 05, 2022, 11:04:03 PM
Anyone else here who filed a paper return still waiting for their *2020* refund?   WAPO had an article about a month back detailing how there were still 24m 2020 paper returns sitting in bags waiting for processing.
Title: Re: The Tax Man Cometh!
Post by: Puget on April 06, 2022, 06:47:11 AM
Quote from: kaysixteen on April 05, 2022, 11:04:03 PM
Anyone else here who filed a paper return still waiting for their *2020* refund?   WAPO had an article about a month back detailing how there were still 24m 2020 paper returns sitting in bags waiting for processing.

The lesson is, never file a paper return. You can use the exact same forms you would for a paper return online through the IRS website-- search for "free fillable forms". Or, given what your post suggest about your modest income, you can almost certainly use tax prep software for free as part of the Free File program-- again, you need to access this through the IRS website, then pick an option you qualify for based on income and in some cases age and state. Some will also do your state return for free.

I have always gotten refunds (when I was owed one) within a week or so when filling electronically, because returns are processed automatically (you'll generally get confirmation your return has been accepted within hours).
Title: Re: The Tax Man Cometh!
Post by: hmaria1609 on April 06, 2022, 02:07:45 PM
Finished my taxes last night!  :)
Importing stuff from the previous year was great.
Title: Re: The Tax Man Cometh!
Post by: lightning on April 07, 2022, 12:09:49 PM
Quote from: kaysixteen on April 05, 2022, 11:04:03 PM
Anyone else here who filed a paper return still waiting for their *2020* refund?   WAPO had an article about a month back detailing how there were still 24m 2020 paper returns sitting in bags waiting for processing.

Now I know why the IRS uses two mailing addresses (one for people who owe and one for people who are getting refunds). If they only used one address, they would have to open all the envelopes that come in. With two addresses, they have the tempting choice of only opening the envelopes that have money for them. What a bunch of jerks.
Title: Re: The Tax Man Cometh!
Post by: lightning on April 07, 2022, 12:12:30 PM
Quote from: Puget on April 06, 2022, 06:47:11 AM
Quote from: kaysixteen on April 05, 2022, 11:04:03 PM
Anyone else here who filed a paper return still waiting for their *2020* refund?   WAPO had an article about a month back detailing how there were still 24m 2020 paper returns sitting in bags waiting for processing.

The lesson is, never file a paper return. You can use the exact same forms you would for a paper return online through the IRS website-- search for "free fillable forms". Or, given what your post suggest about your modest income, you can almost certainly use tax prep software for free as part of the Free File program-- again, you need to access this through the IRS website, then pick an option you qualify for based on income and in some cases age and state. Some will also do your state return for free.

I have always gotten refunds (when I was owed one) within a week or so when filling electronically, because returns are processed automatically (you'll generally get confirmation your return has been accepted within hours).

Last year, I filed an electronic return for the state, and the processing was delayed by about 3 months. My IRS electronic filing went fine. It was the state filing that was aggravating. They, of course, blamed it on COVID-19, which is everyone's convenient excuse to suck at their job.
Title: Re: The Tax Man Cometh!
Post by: Puget on April 09, 2022, 07:49:17 AM
Finally got mine done last night- I stayed up way later than I intended to do so, but I wanted them off my plate.

State return was easy enough once I got through all the hoops of setting up an account in their new online system.

Federal return was straight forward enough, but then the free fillable forms got auto-rejected twice-- once for a mysterious problem where it thought I had an un-allowed character in a text field (I didn't but deleting and retyping it somehow worked). Then again when it turned out that clicking "do the math" does not in fact, do the math when it came to the charitable donations fields. Fixing that got me more back on my refund so I'm glad the system eventually caught it, but clearly that's a form programming error.

The real question is, why can't the form do these checks automatically along the way, instead of waiting to be submitted and then coming back with one error at a time so you can't even fix multiple errors at once? Heck, any old web form can outright stop you from typing an un-allowed character in a field, and pop up an error if things don't add up. But of course the IRS is stuck some time in the 90's technology-wise.
Title: Re: The Tax Man Cometh!
Post by: kaysixteen on April 09, 2022, 09:30:47 PM
I could have sent my 2021 return last week electronically, but I did not want to mess myself, or the IRS, up, with my paper 2020 return still sitting in that amorphous pile.  Ah well...
Title: Re: The Tax Man Cometh!
Post by: AJ_Katz on April 10, 2022, 06:03:18 AM
Quote from: clean on March 30, 2022, 05:05:20 PM
Quotea societal standpoint I think it's nuts how tax advantaged owning a home is vs. renting, but that doesn't mean I'm not going to take advantage of that mortgage interest deduction!).

I suppose that it depends on the state.  (what real estate costs and thus the size of the loan and the interest payment). 
GIven the more recent standard deduction of $24xxx, a lot fewer people can deduct the mortgage interest. 

(My house has long since been paid off, but there was extra pressure to get it done once I no longer had enough interest and property taxes to make itemizing possible).

Yep, looks like we'll do the standard deduction this year too.  I don't know why, but this is disappointing to me.

Also disappointing is that we moved last year with a huge bill that I thought would be tax deductible, only to find out the moving deduction was eliminated in 2018.  Such a bummer.
Title: Re: The Tax Man Cometh!
Post by: Puget on April 10, 2022, 07:11:20 AM
Quote from: AJ_Katz on April 10, 2022, 06:03:18 AM
Quote from: clean on March 30, 2022, 05:05:20 PM
Quotea societal standpoint I think it's nuts how tax advantaged owning a home is vs. renting, but that doesn't mean I'm not going to take advantage of that mortgage interest deduction!).

I suppose that it depends on the state.  (what real estate costs and thus the size of the loan and the interest payment). 
GIven the more recent standard deduction of $24xxx, a lot fewer people can deduct the mortgage interest. 

(My house has long since been paid off, but there was extra pressure to get it done once I no longer had enough interest and property taxes to make itemizing possible).

Yep, looks like we'll do the standard deduction this year too.  I don't know why, but this is disappointing to me.

Also disappointing is that we moved last year with a huge bill that I thought would be tax deductible, only to find out the moving deduction was eliminated in 2018.  Such a bummer.

The standard deduction is $25k if you are married filing jointly, but only half that you are single. So the mortgage interest deduction (and state and local tax deductions) can make a big difference for single homeowners in high CoL areas.

Again, I'd like to see renters get the same deduction, but I'm not going to pass up the 2k refund I'm getting.
Title: Re: The Tax Man Cometh!
Post by: clean on April 10, 2022, 09:08:00 AM
QuoteAgain, I'd like to see renters get the same deduction,

Are you suggesting that rent be tax deductible?  Renters do get the same 25K + (or 12.5 + K ) deduction already.

Home ownership (The American Dream), has been supported by the tax system for a long long time. (I dont know when it started). There is an argument that property owners are better citizens and home ownership should be encouraged and rewarded.  Remember, in the founding days of the country only property owners could vote!  Im not sure how much that mindset has to do with the mortgage tax deduction (probably nothing). 

Let's ask 'if this, then what' about this issue... who wins and who loses?

1.  Increasing a tax deduction means less income  to the government and the current rules are that reductions in tax revenue must be offset by increasing taxes somewhere else. (Who would pay more if renters pay less?)

2.  Even under the current deduction system, many home owners are not able to deduct their mortgage interest or property taxes.  (I lost the deductivility years ago, and it was one of the reasons that prompted me to pay it off... worst of both worlds, paying interest and not being able to deduct it!)  AJ KATZ just illustrated the problem.
So who much rent would one have to pay to even qualify for a deduction?  (as they are not owners, there would still be no deduction for property taxes) and only the portion OVER 25900 (or 12550 for singles) would really benefit the tax payer).

3.  While many landlords may own only a few rental units (and may owe significantly on them), there is likely a perception that landlords are members of the 'evil rich' class, and allowing a deduction for rent would permit landlords to raise rent as it could be argued that rent is more affordable, thus further benefiting the rich. 

4.  Imagine the record keeping burden that would be added to property owners!  Who gets the tax form (1099-rent receipt?) if there are multiple tenants?  How would a landlord prorate that if there are 3 tenants sharing a house?  What if someone is subleasing?  The rental payment to the landlord would be the max deduction, but that would go to the primary tenant... the subleasing tenants would then get their own form and the primary tenant would have to reduce their deduction.... (AND at the limit, none of this matters as few tenants would really benefit from the deduction given the current standard deduction).  However, ALL landlords would most likely have to complete the form, deliver a copy to the tenants and file a copy with the IRS.   



Instead of increasing deductions, why not just argue that we should return to the system of the beginning of the last century when there was NO income tax at all!  We could tax imports! 

Who loses now?
Well, if Oil is imported (and less is now than 30 years ago), then gas prices would be higher, and those that have a higher portion of gas as a percentage of their budget (poor maybe, who pay nearly no income tax now,  would pay a higher tax burden.  Walmart is a big seller of cheap, imported goods, so walmart shoppers will pay higher prices, and I am not sure that Walmart is not known for its targeting high income clientele. 

There is always 'another shoe to drop' when changing policies. 
Title: Re: The Tax Man Cometh!
Post by: dismalist on April 10, 2022, 09:27:41 AM
QuoteInstead of increasing deductions, why not just argue that we should return to the system of the beginning of the last century when there was NO income tax at all!  We could tax imports!

Ah, but there were two big sources of revenue -- tariffs and taxes on alcohol. Passage of the income tax was crucial in breaking the resistance to Prohibition. Without an income tax, we'd have to tax alcohol heavily again. That would be terrible for me. :-)

Actually, what's wanted is a uniform consumption tax, so that savings are not taxed twice. A large standard deduction can make it progressive. One can make it more progressive than that if that's what's wanted.

There should be no special deductions. They just lead to overuse of the stuff that's privileged, here owner occupied dwellings. But the mortgage interest deduction raises house prices. If the deduction were abolished, house prices would fall, and homeowners would feel terrible, though they shouldn't. 
Title: Re: The Tax Man Cometh!
Post by: clean on April 10, 2022, 09:47:52 AM
Quoteead to overuse of the stuff that's privileged, here owner occupied dwellings. But the mortgage interest deduction raises house prices. If the deduction were abolished, house prices would fall, and homeowners would feel terrible, though they shouldn't. 

IF housing prices fall, and home owners feel terrible, they will consume less since Consumption is a function of perceived wealth! 
We can then run through the economic argument that REDUCED consumption means a rise in inventories, and that causes shops to reduce orders, and factories to reduce employment, which reduces INCOME so more have a reduction in wealth!
This is part of that 'other shoe' I mentioned above.  The only trick is to see what the strength of these pressures is.  What inventories r9se and how many employees (and at what wages) are laid off (then we can add the political issues as well and see the power of the congressional representatives whose districts are most paying for this plan)

Given the Input Output Multiplier that housing construction has, anything that lowers the value of a house (and the profitability of building them) will have a huge negative impact on the economy.  SO I dont see a huge actual change in the mortgage interest deduction.
We already have increased the standard deduction and then limited the SALT (state and local tax) deduction and I dont see much appetite to change the tax system further.

Bigger problems on the horizon are the stability of the Social Security System and the Medicare system.  Yet, in these political times, nothing is going to happen to those programs anytime soon. 


But back to the theme of the topic....
Yesterday I bought TurboTAx and got the K1 from my inlaws. 
For the first time in my life, given my schedule this week and taxes due Friday, I may have to file for an extension! 
Title: Re: The Tax Man Cometh!
Post by: dismalist on April 10, 2022, 10:07:25 AM
Cutting the mortgage interest deduction would reduce the demand for owner occupied housing. We'd get an increase in demand for rental housing. Adjustment problems won't take long to solve.

But the stability of Social Security and Medicare are real questions.

Be that as it may, I came across this so-called Debtfixer by the Committee for a Responsible budget. https://www.crfb.org/debtfixer (https://www.crfb.org/debtfixer)

One can play around with this to see the effects of one's favorite policies for the debt. The Committee has goals for cutting the deficit, but the user doesn't have to abide by them. So, it's a useful indicator for anyone's favorite policies. Have fun!
Title: Re: The Tax Man Cometh!
Post by: Anselm on April 10, 2022, 10:59:24 AM
Imagine the record keeping burden that would be added to property owners!  Who gets the tax form (1099-rent receipt?) if there are multiple tenants?  How would a landlord prorate that if there are 3 tenants sharing a house?  What if someone is subleasing?  The rental payment to the landlord would be the max deduction, but that would go to the primary tenant... the subleasing tenants would then get their own form and the primary tenant would have to reduce their deduction.... (AND at the limit, none of this matters as few tenants would really benefit from the deduction given the current standard deduction).  However, ALL landlords would most likely have to complete the form, deliver a copy to the tenants and file a copy with the IRS.   

This is the problem with the entire income tax system, endless record keeping and confusion.   I would venture a guess that no other nation has such a complicated system as we have in the USA.  The whole world got by without it until the 20th century and until recently some advanced nations survived without it.   Technically the FICA tax is an income tax but is extremely simple for an employee who does not have to calculate profit like a business owner.  I find that much more tolerable.

I never believed that someone should get a break on federal taxes for having a huge home and high property taxes.  If you pay high property taxes then you are probably getting something for it.  States like Illinois and New Jersey pay their employees very well and can recruit the best from around the country. 
Title: Re: The Tax Man Cometh!
Post by: dismalist on April 10, 2022, 11:06:53 AM
QuoteThis is the problem with the entire income tax system, endless record keeping and confusion.   

That's by design. Through complexity bennies, or apparent bennies, can be given to one's constituency without too many people noticing.

One could easily have a tax system where companies and individuals file on a postcard.
Title: Re: The Tax Man Cometh!
Post by: hmaria1609 on April 10, 2022, 01:05:52 PM
Some tax humor courtesy of "Frank & Ernest" comic:
https://www.gocomics.com/frank-and-ernest/2022/04/09 (https://www.gocomics.com/frank-and-ernest/2022/04/09)
Appeared: 4/9/22
Title: Re: The Tax Man Cometh!
Post by: clean on April 10, 2022, 05:42:48 PM
QuoteI would venture a guess that no other nation has such a complicated system as we have in the USA. 

Not according to my PhD school office mate!  He is in Canada but has to do both the US and Canadian tax forms!   While the US has a large standard deductions (meaning that MANY things that we COULD itemize are no longer necessary, but in Canada, from what I gather, you have to itemize just about everything! 
Title: Re: The Tax Man Cometh!
Post by: dismalist on April 10, 2022, 05:56:37 PM
Quote from: clean on April 10, 2022, 05:42:48 PM
QuoteI would venture a guess that no other nation has such a complicated system as we have in the USA. 

Not according to my PhD school office mate!  He is in Canada but has to do both the US and Canadian tax forms!   While the US has a large standard deductions (meaning that MANY things that we COULD itemize are no longer necessary, but in Canada, from what I gather, you have to itemize just about everything! 

Looks like Canada may be as special a case as the US.

"At last count, 36 countries, including Germany, Japan, and the United Kingdom, permit return-free filing for some taxpayers." from

https://www.taxpolicycenter.org/briefing-book/what-other-countries-use-return-free-filing (https://www.taxpolicycenter.org/briefing-book/what-other-countries-use-return-free-filing)
Title: Re: The Tax Man Cometh!
Post by: clean on April 16, 2022, 01:31:54 PM
There was a calculation error so we will have to deal with a change in our IRA contributions.  WE must do that Before we file the Taxes, so that means that Monday I will be calling Voya to change last year's contribution.  THEN I can file taxes.  In between, I  will either file the taxes OR file for an extension. 
Title: Re: The Tax Man Cometh!
Post by: Juvenal on April 16, 2022, 04:55:55 PM
I have become aware (sorting paper, sorting paper) that I might be getting some Medicare reimbursement I am not entitled to.  Well, I am not about to start the paper-hell that might be needed to "rectify" this.  I'll wait until I hear from "those people."  Maybe I never will; I'll keep cashing the checks until the marshals are at my door.
Title: Re: The Tax Man Cometh!
Post by: pgher on April 16, 2022, 05:11:36 PM
My eldest is about to graduate college. They have a job lined up. They filed their OWN taxes this year. Finally an adult! And off my payroll.
Title: Re: The Tax Man Cometh!
Post by: Anon1787 on April 17, 2022, 07:15:11 PM
A PIN to set up an account arrived in the mail last night so I can file my state income tax return electronically. Filing a state return can be as much a PITA as filing a federal return.
Title: Re: The Tax Man Cometh!
Post by: namazu on April 17, 2022, 10:46:50 PM
After some hassle involving two-factor authentication not working properly and then some drama involving tripping over a laptop cord and breaking the laptop screen, our taxes (federal, state, and local) are all filed.  Whew!
Title: Re: The Tax Man Cometh!
Post by: paultuttle on April 18, 2022, 09:10:32 AM
I knocked my laptop onto the floor in the middle of going through the TurboTax screens (I'm somewhat clumsy when I get up to get a glass of water, apparently). There was a pretty big clatter and some choice words that I can't repeat here, but nothing was broken.

My laptop didn't even lose its Internet connection. I went right on and SHAZAM! clicked "submit" 15-20 minutes later.
Title: Re: The Tax Man Cometh!
Post by: clean on April 18, 2022, 04:15:16 PM
I have taken all of the steps I needed to do before I could file our taxes! 

Turbotax indicates that it has been sent.  It will take a few days to determine IF they were accepted or not.

IN a few months I will check to be sure that I am on track for the taxes for 2022.  I hope not to be in a position to wait to file on the last day!  I prefer not to live this close 'to the edge!'

Plenty of taks to do today other than taxes, that I can now get to!
Title: Re: The Tax Man Cometh!
Post by: ab_grp on June 22, 2022, 04:33:55 PM
I'm glad I was so on top of getting our packet to our CPA in time in March.  She ended up filing an extension anyway.   After discussing how that affects what we owe now and also what we are projected to owe next year, I made the payments.  One addressing the tax due for 2021, two to cover the first two estimated payments for 2022.  Okay, great! Now today we receive an envelope from the state.  It's a check in the amount that we paid for our tax due and is marked for the year 2021.  We do direct deposit so shouldn't even get a check, but this mailing notes that getting a check instead is "due to the adjustment" on our state return.   Last year we didn't receive our refund for months, and it was by check, and that was due to an adjustment of a few dollars because the previous year amended return hadn't been taken into account.  But it is awfully odd that there would be an adjustment this year that is exactly the amount we owed and was issued days after we filed and does not have an accompanying calculation sheet to show how the adjustment was arrived at, as we received last year.  After we filed, it said in our account that we owed that balance.  I have a screenshot! Sorry, just venting about having to follow up on yet more paperwork.  Grrr!!
Title: Re: The Tax Man Cometh!
Post by: kaysixteen on June 22, 2022, 11:26:52 PM
WaPo today says IRS still has over 20m paper 2021 tax year returns unprocessed.   IRS says it is just over 19m.  They just do not have the resources to do things correctly.
Title: Re: The Tax Man Cometh!
Post by: ab_grp on July 05, 2022, 09:40:32 AM
The fun keeps coming! Now the IRS has sent us a letter 5071C to verify our identity before our federal return is processed because they have some concern that our return could have been filed fraudulently (googling suggest it could also happen at random)?  Luckily, they seem to accept the ID.me accounts as proof of identity, and my husband has one of those as a military veteran, so hopefully that part will go smoothly, and then we will have to verify info on our current and a previous tax return.  Yay.  More following up.  Just what I was hoping for!
Title: Re: The Tax Man Cometh!
Post by: Anselm on July 05, 2022, 07:53:58 PM
I filed on April 18th with paper forms and I am still waiting on my refund.  I also failed to record the refund amount so now I can't check to see how things are coming along.  I think last year I got my refund in August.   
Title: Re: The Tax Man Cometh!
Post by: clean on July 06, 2022, 02:31:01 AM
The IRS is very backed up with paper returns.  They require a lot of processing time.  I believe that they said that the goal was to get this year's paper returns finished before they start the next year's rush (in February!)
Anyway I hope that August is a realistic time, but I hope that you havent 'already spent the money'!
Title: Re: The Tax Man Cometh!
Post by: ab_grp on July 06, 2022, 11:51:17 AM
As a follow up to my previous post about the IRS requiring us to verify our ID in order to process our return, I will let folks know what I had to do in case it comes up for any of you. 

As I mentioned, I had signed my husband (and myself) up for ID.me earlier in the year, which involved some docs like his DD214 discharge papers and probably some ID documents.  That was supposed to make this an easier process.  If so, it was still kind of a pain.  I ended up having to upload a front and back pic of my driver's license and answer questions, and then I had a choice of either a "video selfie" or a video chat with an agent.  I chose video selfie.  This involved allowing access to either my webcam on my computer or getting a link sent to my phone.  I chose the link and stood in front of my office door, and I just followed instructions on moving the camera closer, to the left, back a bit, and then lights started flashing.  I think they were blue and red.  I don't know if this is problematic for people susceptible to seizures or such.  It did a scan of my face, supposedly checking for liveness? I'm sure I was frowning, at least.   

Once it verified that I was me, I had to report several numbers from my 2021 federal tax return  (I think it was AGI, refund amount, whether I had indicated I wanted the refund by direct deposit or not, the last 4 of the bank account listed if so).  It told me which exact lines to look at for this info, which I appreciated since that can be confusing (e.g., total refund? or refund to me after putting some of it toward estimated taxes?).  It seems to have worked out successfully, and I was offered the opportunity to get an Identity Protection PIN, which my CPA was glad I did not opt for at this time (you apparently never get rid of it once you have it).  It didn't take TOO long (maybe 20 mins?) but was longer than I had expected given that we already had ID.me and that I had my return and was fairly well versed in it since I had checked the numbers myself.  I felt like I had to stand up and sit down more times than I had planned for to take pictures and selfies.  Not too bad overall, though.  I hope this helps.  I am not sure what would have been required if we had not already had the ID.me account.  I think it said something about allow 9 weeks for processing of the return, so who knows.
Title: Re: The Tax Man Cometh!
Post by: hmaria1609 on February 01, 2023, 01:23:34 PM
*Bump*
Tax season is here! 2023 filing date: April 15th

We're getting the rest of our federal tax materials delivered this week. AARP tax prep volunteers are back, appointment only again.
Title: Re: The Tax Man Cometh!
Post by: sinenomine on February 01, 2023, 02:39:14 PM
I have my CPA my paperwork this morning and she dropped off the completed forms this afternoon. By far the quickest I've ever had my taxes done!
Title: Re: The Tax Man Cometh!
Post by: apl68 on February 01, 2023, 02:51:40 PM
The tax forms we've ordered for our patrons have arrived.  The instruction books still haven't.  At least the arrival of forms implies that books are on the way.  They're not keeping us guessing for as long about whether we're going to get anything.  I've had to beg another library for tax materials before so that we could have something for our patrons.
Title: Re: The Tax Man Cometh!
Post by: hmaria1609 on April 02, 2023, 02:20:26 PM
Yay, I've hit the "Send" button for my taxes through TurboTax!

It's almost Tax Day now. Share your tax stories!

This year we didn't get as much hard copy tax materials at the library. We have some 1040 instruction booklets left for patrons. Last month DC finally sent out D-40 forms/booklets. As our box of D-40s ran low, I requested another and a box of them was delivered next day.
We've been printing out forms on demand for patrons.
Title: Re: The Tax Man Cometh!
Post by: clean on April 02, 2023, 03:16:39 PM
I spent yesterday doing Turbotax.  I found that My Bride is short one interest form, and the bank mailed them out, so she will have to go get a copy on Monday.  After that, I can submit it! 
I am glad I am getting it done before the deadline, but i hate that it is April before I even started!   It has been a very busy term, and financial matters took a very back seat! 

And in doing it, I will try to be more organized with it for next year! 
Title: Re: The Tax Man Cometh!
Post by: kaysixteen on April 02, 2023, 04:15:05 PM
Nowadays, if one files one's taxes and requests direct deposit into a checking acct., assuming there are no problems with the return, how fast might one reasonably expect to get their refund?
Title: Re: The Tax Man Cometh!
Post by: arcturus on April 02, 2023, 04:33:20 PM
Quote from: kaysixteen on April 02, 2023, 04:15:05 PM
Nowadays, if one files one's taxes and requests direct deposit into a checking acct., assuming there are no problems with the return, how fast might one reasonably expect to get their refund?
Are you filing electronic or paper? I filed with paper in February and received my refund a few weeks later. I hear that it is about 1 week for electronic filing.
Title: Re: The Tax Man Cometh!
Post by: evil_physics_witchcraft on April 03, 2023, 03:55:17 AM
Quote from: clean on April 02, 2023, 03:16:39 PM
I spent yesterday doing Turbotax.  I found that My Bride is short one interest form, and the bank mailed them out, so she will have to go get a copy on Monday.  After that, I can submit it! 
I am glad I am getting it done before the deadline, but i hate that it is April before I even started!  It has been a very busy term, and financial matters took a very back seat! 

And in doing it, I will try to be more organized with it for next year!

Yep. I need to do mine!
Title: Re: The Tax Man Cometh!
Post by: apl68 on April 03, 2023, 07:18:15 AM
My refund checks are now both in.  They're very modest--but I don't owe anything!
Title: Re: The Tax Man Cometh!
Post by: Juvenal on April 03, 2023, 07:25:57 AM
Lose some, win some?  The tax folk both (IRS/my tax state) thought my investments would do far better than they did, so the estimated quarterly taxes gouged holes in the checkbook every four months.  Well, "luckily," the market was not so benign last year and thus the holes will be partly filled.  Whenever the tax folk get around to disbursements.
Title: Re: The Tax Man Cometh!
Post by: kaysixteen on April 03, 2023, 05:14:42 PM
Without paying someone/ some tax service to do so, how does one file one's taxes electronically?
Title: Re: The Tax Man Cometh!
Post by: Puget on April 03, 2023, 06:47:29 PM
Quote from: kaysixteen on April 03, 2023, 05:14:42 PM
Without paying someone/ some tax service to do so, how does one file one's taxes electronically?

Kay, if you make less the 73k/year and have a simple return, you can do it for free using software, but you must go through the IRS portal linked  here: https://www.irs.gov/newsroom/irs-free-file-is-now-available-for-the-2023-filing-season

If you earn over that, or prefer to use the equivalent of the paper forms, you can use free fillable forms through the IRS website (also linked there). They are just like the paper forms (though they will do a bit of basic math for you), so to do those you need to be comfortable filling out the forms yourself, but you can use them for any return, even complex ones (you can add all the schedules, etc.). That's what I use.

Doing either of these options will greatly speed up your refund compared to paper forms, which can take quite some time to be processed. 


Title: Re: The Tax Man Cometh!
Post by: kaysixteen on April 03, 2023, 07:37:52 PM
So if I do this, this would presumably mean I would have to scan my tax return and supporting docs into a computer?
Title: Re: The Tax Man Cometh!
Post by: clean on April 03, 2023, 08:56:50 PM
"you can use free fillable forms through the IRS website"
They are PDF forms that allow you to enter the numbers into them. You save the PDF and the software submits it.

I use Turbotax.
My taxes are not (exactly) complex, but since I got married, they are much more complex.
For me, I have an E*Trade account and entering the sales information was a huge Pain!  Turbotax uploaded the information from E*Trade and entered it into the document.  That was the biggest time saver and my reason for going that route!
The first time you use TurboTax you will enter a lot of information, but next year, it will look on your computer and find the information and you wont have to do it again. 

Since I got married, My Bride's family has a Family Limited Partnership, so there is a Form K-1 that causes me all kinds of problems with my taxes. For one thing, I have to wait for my FIL to give the paperwork to HIS accountant, then the accountant does the document and I get a copy.  The problem is that the accountant's work product does not necessarily play nice with TurboTax. 
(Turbotax looks for a number in a box. The accountant puts an "*" in the box and "STMT".... Well, I dont know if the IRS likes that or not, but I Guaran dam tee you that TorboTax Does NOT!

My FIL pays to have the other children's taxes done, so NEXT year, I may take him up on that too! 


Anyway, IF your taxes are not complex (no rental property, no self employment income, not a lot of stock transactions, then you should be able to do your taxes with turbotax in a few hours.
Either way, you may want to start going to all of your bank accounts, stock accounts, and employer information and download all of the W2s, and 1099s. 
Turbotax gives you the option to download them for a lot of banks and employers, but will also let you enter them yourself.

Actually getting the information downloaded takes a lot of the time to do taxes, even if you are doing them by hand, with the forms). 
Title: Re: The Tax Man Cometh!
Post by: Puget on April 04, 2023, 04:06:37 AM
Quote from: kaysixteen on April 03, 2023, 07:37:52 PM
So if I do this, this would presumably mean I would have to scan my tax return and supporting docs into a computer?

Nope, paper is not involved at all. You fill out the free fillable form on the IRS website and submit it electronically. You enter the information from your W-2(s) and anything else you are required to document-- you don't scan or attach them.
Title: Re: The Tax Man Cometh!
Post by: hmaria1609 on February 16, 2024, 07:55:40 PM
*Bump*
Tax season again! Have you started or not yet? Already filed?

We got a delivery of 1040 and 1040-SR forms and instruction booklets first at the library. Then the state tax booklets showed up yesterday.
My dad and I got our 2023 TurboTax CDs when they were on sale at Costco. 
I've had my W-2 delivered electronically for years and print it out when it becomes available.
Title: Re: The Tax Man Cometh!
Post by: apl68 on February 17, 2024, 06:26:11 AM
Our library's delivery of tax forms arrived weeks ago.  Fastest delivery we've ever had!  Usually it's March by the time we get them.  Which means many weeks of having to tell patrons that they're on order.  That can get old.  Of course the orders for forms can't all be shipped out at once.  Guess this time we were close to the front of the queue. 
Title: Re: The Tax Man Cometh!
Post by: sinenomine on February 17, 2024, 06:39:45 AM
My personal taxes are filed. I volunteer as treasurer for a couple non-profits; one group's taxes are filed, and I'm almost ready to file for the other.
Title: Re: The Tax Man Cometh!
Post by: evil_physics_witchcraft on February 18, 2024, 10:53:36 AM
I need to get on this. I think I may mail in my state taxes because I really don't want to spend 40 bucks to efile.
Title: Re: The Tax Man Cometh!
Post by: hmaria1609 on March 17, 2024, 02:34:02 PM
Did mine this afternoon. Good to be done!

At the library, we're still good with federal tax materials for the public. Found out we're getting the last batch of state tax booklets as a limited quantity was printed this year. Once we run out, we'll print out forms whatever patrons need upon request.
Title: Re: The Tax Man Cometh!
Post by: kaysixteen on March 17, 2024, 08:45:44 PM
The pandemic era saw vast increases in the length of time the federales took to process returns and issue refunds.   Anyone know what the rough length expectations are this year?
Title: Re: The Tax Man Cometh!
Post by: Puget on March 18, 2024, 08:35:39 AM
Quote from: kaysixteen on March 17, 2024, 08:45:44 PMThe pandemic era saw vast increases in the length of time the federales took to process returns and issue refunds.   Anyone know what the rough length expectations are this year?

I've heard that was true for paper returns, but I have never experienced a delay in getting refunds when e-filing. You can e-file an electronic version of the same paper forms for free (just go to the IRS website), or if you meet income requirements you can also use tax prep software for free (you must go through the IRS free-file portal, you can't just start with the software).
Title: Re: The Tax Man Cometh!
Post by: kaysixteen on March 18, 2024, 07:30:02 PM
I had a bad experience during the pandemic one year trying to use various free tax e-file programs linked on the IRS www site (these were all run by private entities-- one I tried clearly was not correct, at least not for the MA state taxes, as I knew enough to know they had not asked me for some relevant required info that would have significantly increased my state refund).   So I gave up and paper filed that year, and yes, it took many moons to get the refund.   I have not attempted to e-file ever again, and just sent out my paper returns last monday.  Back in the glory pre-pandemic days, fed returns on regular paper files took about a month, but I used to file more or less last minute-- March 11 was the earliest I have filed taxes in well over a decade.
Title: Re: The Tax Man Cometh!
Post by: Puget on March 18, 2024, 07:35:22 PM
Quote from: kaysixteen on March 18, 2024, 07:30:02 PMI had a bad experience during the pandemic one year trying to use various free tax e-file programs linked on the IRS www site (these were all run by private entities-- one I tried clearly was not correct, at least not for the MA state taxes, as I knew enough to know they had not asked me for some relevant required info that would have significantly increased my state refund).   So I gave up and paper filed that year, and yes, it took many moons to get the refund.   I have not attempted to e-file ever again, and just sent out my paper returns last monday.  Back in the glory pre-pandemic days, fed returns on regular paper files took about a month, but I used to file more or less last minute-- March 11 was the earliest I have filed taxes in well over a decade.

Not all the free file software options will do state returns for all (or any) state- you need to choose one that will or just do your state taxes separately (you can e-file your MA taxes through the state website, except if you need a few less commonly used additional forms). But if you prefer something exactly like the paper forms for your federal return, I would certainly encourage you to e-file using the IRS use the free fillable forms in the future. You will get your refund much faster that way, and the forms will do some of the math for you.
Title: Re: The Tax Man Cometh!
Post by: apl68 on March 19, 2024, 07:29:07 AM
Quote from: Puget on March 18, 2024, 07:35:22 PM
Quote from: kaysixteen on March 18, 2024, 07:30:02 PMI had a bad experience during the pandemic one year trying to use various free tax e-file programs linked on the IRS www site (these were all run by private entities-- one I tried clearly was not correct, at least not for the MA state taxes, as I knew enough to know they had not asked me for some relevant required info that would have significantly increased my state refund).   So I gave up and paper filed that year, and yes, it took many moons to get the refund.   I have not attempted to e-file ever again, and just sent out my paper returns last monday.  Back in the glory pre-pandemic days, fed returns on regular paper files took about a month, but I used to file more or less last minute-- March 11 was the earliest I have filed taxes in well over a decade.

Not all the free file software options will do state returns for all (or any) state- you need to choose one that will or just do your state taxes separately (you can e-file your MA taxes through the state website, except if you need a few less commonly used additional forms). But if you prefer something exactly like the paper forms for your federal return, I would certainly encourage you to e-file using the IRS use the free fillable forms in the future. You will get your refund much faster that way, and the forms will do some of the math for you.

Most public libraries can also help you to find the forms and instructions you need online.  Staff members probably won't be allowed to help you complete them, but they can help you find what you need.
Title: Re: The Tax Man Cometh!
Post by: secundem_artem on March 19, 2024, 01:00:32 PM
I purchased Turbo Tax and found it quite easy to use.  Took about 2 hours

Historically, I've paid a tax service, but they got bought out by a pair of accountants and I'm too small a fish for them to be interested in, so they've priced themselves out of my tolerance. Turbo Tax federal + an extra charge for state + some features I probably did not need to buy saved me over $100 from what the accountant would have charged.  Next year, I won't buy the add on and will save another $69 or so.

According to Turbo Tax, e-files should get a refund in 2-3 weeks. 
Title: Re: The Tax Man Cometh!
Post by: kaysixteen on March 19, 2024, 06:48:13 PM
The prob I had a few years back when I tried to use the thing for the MA state taxes, is that the form was incomplete, leaving out amongst other things the tax credit given for paid rent.   If I had not known these things, I would have just clicked 'file'... and lost money.

My income is very low, and I have no dependents, no itemized deductions, really no nothing that would make my taxes hard to do, even the MA state ones, which are more complex than the feds.   I can easily do all the math myself, esp for the fed form, in just minutes.   But I guess next year I will again at least consider e-filing.
Title: Re: The Tax Man Cometh!
Post by: Puget on March 19, 2024, 07:07:30 PM
Quote from: kaysixteen on March 19, 2024, 06:48:13 PMThe prob I had a few years back when I tried to use the thing for the MA state taxes, is that the form was incomplete, leaving out amongst other things the tax credit given for paid rent.   If I had not known these things, I would have just clicked 'file'... and lost money.

My income is very low, and I have no dependents, no itemized deductions, really no nothing that would make my taxes hard to do, even the MA state ones, which are more complex than the feds.   I can easily do all the math myself, esp for the fed form, in just minutes.   But I guess next year I will again at least consider e-filing.

The IRS free fillable forms that you then e-file look exactly like the paper forms, I promise. Same with the online MA tax forms.