I don't know shit about income tax. Until last year I always did the 1099 EZ because it was simple.

I'm trying to find answers to some questions and I'm not sure where to look. Mostly, I'm trying to figure out what, if any, deductions I can claim and what kind of records I need to keep for them.

You'd think this information would be on the IRS website, but you'd be 100% wrong. What would you guys recommend for info? TurboTax, maybe, but it doesn't actually give you references to the actual law so it doesn't help much if I have questions.

1/6/2010 6:41:21 PM

if you don't have the need for a cheap tax accountant (and you just about certainly don't) just use turbotax or taxcut and they will guide you through just about anything that would apply to you

1/6/2010 6:44:05 PM

I like Turbotax. Got an unsolicited disk in the mail today, TurboTax Deluxe with 1 free state for 39.95.

I used to to taxes by hand, but, with the software, $40 and I'm done in less than an hour. Sure, I could do it by hand, and for my situation it wouldn't take more than a few hours, but I value my time.

1/11/2010 5:22:51 PM

1/11/2010 11:09:22 PM

I used to use a site called TaxSlayer.com. It sounds ghetto, but is listed as a partner site on the IRS site. It worked well until my taxes started getting more complicated (wife, kids, house, IRAs, etc). I now use a site called TaxAct.com and it works very well in my opinion. Much cheaper to file federal than with TurboTax or TaxCut, no software to buy, and usually it includes a free state file. Again it is a site listed on the IRS site.

1/12/2010 8:24:37 AM

i like turbotax. i've used it for the past 5 or so years. if you're a secu member, go to their website and follow the links for the discounted version.

1/12/2010 8:27:21 AM

^thanks for the tip, didn't realize SECU offered that

1/12/2010 8:40:32 AM

http://www.beehive.org
its free. what kind of answers are you looking for as far as deductions? my 9-5 is taxes and training individuals on tax code for an IRS-VITA program. perhaps i could take a stab at what youre stuck on.

1/12/2010 12:28:00 PM

Question:
Over the years my granddad bought me shares of a stock. Over 10-15 years he bought different amounts of stock at different times, at different prices. I have the grand total of everything he bought, when he bought it and for how much. Now, this year, I sold the stock and used it to help buy a house. When I add up what he paid for each share, at the various times over the last decade, I ended up selling it for less than what he paid. This may sound dumb, but since it's a loss, I do not have to pay capital gains taxes, correct? I mean technically it's all income (gain) to me and a loss for him but is the value of the stock at the time of purchase the only important figure? (Relative to what I sold it for naturally)
Or, is it considered a gift that will be subject to any applicable gift tax?



[Edited on January 13, 2010 at 6:42 PM. Reason : .]

1/13/2010 6:37:30 PM

technically I THINK (I am not a tax professional, you should consult software or a professional for real), you should have paid gift taxes in the year they were given to you. then whatver "loss" you had becomes deductable up to X amount and can carryover to next year if the loss is over X

1/13/2010 6:51:37 PM

also depends if the amount of the stock purchases exceeded the annual limit for the gift tax. currently I believe that's 11,000, but I don't know what it might have been at the time.

My guess was that if it was bought in your name, and under the gift tax threshold, and you sell it for less than the cost basis, you should be able to write it off as a loss (which maxes out at something really low, but you can write off up to the max each year until it's all accounted for)

Again it's just a guess, but post back when you find out for reals. it's an interesting situation.

1/13/2010 7:01:07 PM

^^ Well they were always in my name and he purchased them at several times from like 2002-2006. And from what I've read, the gift tax must be paid by the person who actually gifts the item to you. He is since deceased and naturally can't pay taxes. So in terms of gift tax I haven't a clue....

^Each time he bought it, it was for less than the 11,000 gift amount, but the grand total was more than that.

I also read that the cost basis for the stock is equal to what it was worth the day he died. But I technically owned and sold the stock before he passed away so I'm not how that works.

1/13/2010 7:08:42 PM

you really need to talk to a professional on it.

1/13/2010 7:16:02 PM

When the stocks were purchased whose name were they in? If they were in your name at the time of purchase then your basis in the stock is the purchase price. If they were given to you by your grandfather then the basis is the lesser of the purchase price or fmv on the date you received them.

If the sales price is less then your basis then you will have a capital loss.

[Edited on January 13, 2010 at 10:43 PM. Reason : correction]

1/13/2010 10:42:30 PM

So I bought my house in June of 2009. I never did an amended return for my 8k credit. So I'm going to use Turbotax and get my taxes going. I've read though that you cannot file for the credit electronically. According to the form on IRS.gov, I have to file the 5405 and attach in to my 1040. Can I have turbotax efile my 1040 and then I mail my 5405 with the attached HUD documentation?
From what I"m reading, it looks like I have to do paper copies of both the 1040 and 5405 and mail in my HUD documentation....lame

1/16/2010 9:49:36 AM

If you go to State, which I know most of you do not, you should be able to access this:

http://www.lib.ncsu.edu/cgi-bin/proxy.pl?server=checkpoint.riag.com/login?iploc=NOCANASTTY

It's a searchable e-version of the tax code along with court rulings and etc. You can find exactly what to do with the tricky stuff, as long as you wanna put forth the effort

I've also heard of taxslayer.com but haven't personally used it.

If your taxes isn't too complex, but too complex for you, you should check out the VITA program at State. I'll be there It's a free tax service offered in Nelson hall on Saturdays in February.

1/16/2010 9:55:05 AM

You have two options...

1. E-file federal and state without 5405 and then amend return with the 5405. You would mail in the amendment.
2. Paper file federal and state with 5405 and hud statement.

Option 2 is significantly better.

1/16/2010 9:04:09 PM

Also I would never use the VITA service. The preparers get about 15 hours of training. I have amended way to many of their returns over the years.

1/16/2010 9:05:49 PM

when are employers required to give out W2's?

1/16/2010 10:58:34 PM

they are supposed to be sent before 1/31/10. i got mine yesterday.

1/17/2010 12:28:43 AM

$4000 tax refund, FTW... or FTL depending on how you look at it.

1/31/2010 12:50:40 PM

Jesus. I wonder how some of you end up with those types of refunds short of huge gov't programs (e.g., housing stimulus). I've always owed a few hundred dollars.

1/31/2010 1:03:23 PM

depends on how much you get taken out of your paycheck, what kind of taxes you pay on a home, etc. if you aren't a homeowner and just pay utilities and rent, then yeah you'll probably be owing money.

1/31/2010 2:05:20 PM

I got 2K..not sure how. almost everyone else at work around my pay ended up owing money

1/31/2010 2:26:41 PM

Clearly I need to adjust my withholding.

I'm only claiming 1 allowance. Looks like I can claim at least 4.

1/31/2010 2:43:09 PM

Quote :

"Over the years my granddad bought me shares of a stock. Over 10-15 years he bought different amounts of stock at different times, at different prices. I have the grand total of everything he bought, when he bought it and for how much. Now, this year, I sold the stock and used it to help buy a house. When I add up what he paid for each share, at the various times over the last decade, I ended up selling it for less than what he paid. This may sound dumb, but since it's a loss, I do not have to pay capital gains taxes, correct? I mean technically it's all income (gain) to me and a loss for him but is the value of the stock at the time of purchase the only important figure? (Relative to what I sold it for naturally) Or, is it considered a gift that will be subject to any applicable gift tax? "

I am not a tax professional but here are my thoughts.

Gift tax is not payed by you so there is no gift tax that you are responsible for as it has to be payed by the donor. Also, he can give you 12,000 last year or 13,000 this year without any tax implications. Also, if he has married his wife can give you the same amount for a total of 24,000 etc, also if you were married they each could give the same to your spouse as well.

For the gains part of it since total you sold for a loss you should be ok on that as long as you sold all of the stock he gave you and all of it collectively was for a loss.

1/31/2010 2:56:38 PM

if i put my return including the new home buyer credit in the mail tomorrow, when can i expect to see the money?

1/31/2010 3:17:21 PM

I'm still waiting on my W-2s. I thought employers were required to get them out by a certain date. Oh well.

1/31/2010 3:21:16 PM

they're supposed to send them out by today

1/31/2010 3:42:11 PM

Quote :

"if i put my return including the new home buyer credit in the mail tomorrow, when can i expect to see the money?"

3 weeks for a mailed check, 2 weeks for a direct deposit.

1/31/2010 5:19:31 PM

^for reals? awesome. i was assuming it would take months to process the tax credit.

1/31/2010 6:26:08 PM

It will take 4 to 6 weeks maybe longer. This is not a normal paper return. Please make sure you send in all the required documentation or it will be even longer.

1/31/2010 7:57:37 PM

^ If you file later, it will take longer, but many people don't even have their W-2's yet. The sooner you get it in the faster it gets processed. I've always filed late January / first week of February and my refunds usually come in around the end of February. (I don't know anything about this new home credit... isn't it the same as last year?)

e-File...

Quote :

"If you send in your return by mail, you can expect to wait up to six weeks for your refund. But last year, folks who used TurboTax to e-file their returns and elected to have their tax refunds deposited directly into their bank accounts had their refunds in 8 to 15 days. If, however, you still prefer to send the IRS a paper return, TurboTax gives you that option."

-- http://turbotax.intuit.com/tax-tools/tax-tips/irs-tax-return/5628.html


However, if you file a paper return early, it will still get processed quickly. Last year was the first year I've e-Filed.

1/31/2010 8:26:06 PM

The first time homebuyer credit returns are taking forever. I have two clients that are still waiting from mid October.

1/31/2010 8:37:15 PM

^^you can't e-file if you are claiming the new homebuyer credit. you have to attach a copy of your hud statement and mail it in. i was disappointed to learn this yesterday.

^that sucks. i wonder if its any faster if you're claiming it on your 2009 file rather than a 2008 amendment?

1/31/2010 8:47:48 PM

You would think so but my guess is that all of the first time home buyer credits get forwarded to the same department who handles all of the returns. Probably first in first out.

1/31/2010 9:41:52 PM

If all goes well, my wife and I will be closing on a house in 4-6 weeks. I am planning to do our 2009 taxes in the next couple weeks. Usually filing in February, my return is back no later than early March. I am assuming after we get this return back, I could amend the 2009 return that just went through to add the first time home buyer's credit?

1/31/2010 10:34:52 PM

Quote :

"I have two clients that are still waiting from mid October."

There was a CNN article on this. There is a LOT of fraud surrounding the HomeBuyer tax credit. I have the IRS demanding $7500 back from me because I didn't submit my paperwork to them "proper" first time around (and they have yet to send me paperwork saying how to submit it correctly). In truth, I filed an amended return, need to take the $8000 credit and the IRS owes me $500 right now. Good luck with that. Anyways, there's the reason it's taking longer.

Turbotax I'm a bit disappointed in this year because I can't eFile for NC. Need to fill out an NC478G form, which you can't add to TurboTax (it'll do the math for you, but you can't add it all the same).

[Edited on February 1, 2010 at 7:10 AM. Reason : .]

2/1/2010 7:09:20 AM

Quote :

"I'm only claiming 1 allowance. Looks like I can claim at least 4."

yeah i blew mine for 2009 too.

except i claimed 4 the entire year

and still ended up with a 1500 refund

oops

2/1/2010 9:45:33 AM

For a relative newbie to TurboTax who is in his mid-late twenties and doesn't own a home, what breed of TurboTax do you guys recommend? I'm thinking just Basic will suffice, but any advice would be appreciated.

I just stepped through my entire return with the online version and it seems almost too easy. Do you recommend the software version or is the online ok?

2/1/2010 9:56:20 AM

online's fine

unless you're an aluminum foil hat wearin' weenie who is worried about their info being on the internet

2/1/2010 10:00:48 AM

I have no problem with online; just wondering if there are any significant benefits to the installable software.

2/1/2010 11:37:32 AM

I just used taxact to file my taxes.

That was pretty frickin' easy. I knew I would get a decent sized refund, though next year I may end up owing the government money. Nothing like starting a job late in the year and getting $1500 back from both state and federal governments.

Within a couple weeks I should have some money in the bank. It's gonna stay there, too.

2/1/2010 8:00:53 PM

According to NC's cohabitation laws it doesn't look like I can claim my fiance as a dependent for 2009. We have lived in this same apt the entire year and I've supported her nearly 100% (she's still looking for a job, economy sucks). However, federal law doesn't allow a taxpayer to claim an unmarried partner as an income tax dependent if the couple lives in one of the states with criminal laws against unmarried cohabitation.

Is this still correct? or did the 2006 ruling effect this at all?

2/1/2010 9:03:44 PM

nvm, after some research it is unconstitutional for NC. Cohabitation is still illegal in 5 other states though (Mississippi, Virginia, West Virginia, Florida, and Michigan).

2/1/2010 10:43:00 PM

^ it didnt change the law. So no its still in effect. Just kinda made the law null in a sense.

2/1/2010 10:48:19 PM

Is it difficult to amend a tax return already filed? I originally used turbotax.

I completely forgot to deduct my student loan interest paid. I just got the paperwork in the mail.

2/1/2010 11:08:47 PM

E-filed on the 25th, federal accepted on the 26th, said it would be deposited on the 5th, was just deposited at midnight. Not bad.

2/2/2010 12:24:36 AM

Since cohabitation is illegal in NC you cannot claim your fiancee as a dependent. Refunds are alot quicker this year. What is truly suprising is the number of NC refunds that have been processed. They are about 4 weeks ahead of last year.

Once the IRS transitions to modernized e-file on 2/15 I have a feeling the refunds will be even quicker. Some will be within minutes of filing.

2/2/2010 1:05:30 AM

ok, kind of a followup to the question I asked earlier. Sorry for asking again if no one knows but I'm trying to decide what to do. My wife and I are now scheduled to close Feb 26th. I was planning on doing my taxes this weekend or next weekend. Should I wait until we close or not? I'm still thinking I should just go TurboTax and e-file in the next week or two so that the normal refund won't get delayed, and then amend them sometime after we close. Does that sound reasonable?

2/2/2010 7:45:47 AM