Other tax thread got me thinking about this...and I don't want to cloud it with general tax info/questions. I think I'm going to go ahead and start filling in shit on my turbotax to try and get a head start. I do want some opinions on whether or not I should get an accountant this year. I've always done my taxes on Turbotax with satisfying results..I always get money back, and a decent amount at that (mostly because my main wages were from bartending). However, last year was my first year having to pay back money because I opened up my own law firm. It wasn't much, but it definitely got me thinking. This year I'm expecting to have to pay back much more as I've probably tripled my income (the first year wasn't great...so its not like I'm killing it). I've put aside a ton of money, so I'm not worried about not being able to pay it, I'm just wondering how much I can actually lower that amount.How much would an accountant save me? I feel like from a "business expenses" standpoint, I keep track of and claim everything that is claimable. If I don't think it's something I can claim, I don't keep track of it. So I don't see how an accountant can help me in that aspect. I did get married this year, so will an accountant find "filing jointly" loopholes that will save me hundreds of dollars? My only investment is maxing out a Roth IRA. I just get a lot of, "give all your shit to an accountant and you'll save a couple grand every year." I don't see how that could work...but I'm a tax noob, so I could definitely be missing something.
12/13/2013 9:09:12 AM
12/13/2013 9:31:53 AM
I hope you paid your quarterlies under the 90% actual, 100% of last years rule.
12/13/2013 9:52:59 AM
Considering you recently started a business and have experienced a lot of growth, i'd recommend you get help from someone ASAP. It's hard to be compliant when doing something like starting and growing a law practice. Just do your homework and make sure you hire someone who is good at what they do.
12/13/2013 3:46:29 PM
I don't see what's so difficult when I don't employ anyone. I claim what I make and I put in my expenses? What else is there?*ducks
12/13/2013 4:41:03 PM
Depends how your company is set up, and remaining compliant with that corporate structure's specific tax implications.You could always get an accountant to do everything for you, review the filings and give it a shot the following g year if it still seems simple enough.
12/13/2013 5:55:52 PM
^^ How did you grow your business? Did you travel? Are all of your clients in NC? Did you settle anything in another state? Did you expense everything you bought in the course of your business? Did you buy any capital assets or have any capital expenditures? etc...Sure, it could be that easy, but I've dealt with tons of businesses who thought it was that easy until it was too late.At least get someone to check it out...
12/13/2013 6:18:42 PM
Appropriately titled enough for me.I filed my taxes through Turbo Tax after having checked and verified all my wifes and own forms together this weekend. I'm getting back a large refund via standard deduction as per TT. Well last year we bought our first house and I ASSumed that since my original lender had sold my loan to Wells Fargo within a few weeks, who is now my servicer, that the 1098 I received from them showing interest paid and taxes paid was all that there was going to be as far as my house goes. Unfortunately, I just received in the mail today a 1098 from the original lender showing negligible interest less than $100 (as expected), but also just over $2100 in points paid. Well, two things come to mind:1) I know for a fact I paid no additional points as per my loan documents. The lender documents show my loan as a no PMI loan, in exchange for a slightly higher interest rate. This is odd but I'm not quite sure how to approach this. Are they using me as part of some sort of general tax loophole or did they screw something up? Will call them soon about it and ask.2) Main concern is now owing part of my refund back to the IRS. However, plugging this new doc back in to my TT online return shows no change since my interest and points don't beat out the standard deduction. Is it worth it to still file the 1040X amended return? Will they penalize me for not filing it if it realistically does not affect anything dollarwise?If I owed money back, I'd file the 1040X with a quickness since I don't need the man scrutinizing my tax records for whatever reason, plus it's money I actually owe back to them. I've got some morals still.If I was going to get more of a refund back (which was the more likely possibility) but was less than a couple hundred bucks difference I'd be in the same boat as #2 above.What say you o Tdub tax oracles?IBT see tax accountant or Turbo Tax. Don't need to raise the alarm with them if it's not needed, at least yet.
2/4/2014 8:54:02 PM
^I'm in the exact same boat as you except for the fact that my 1099 from the original lender is a little over $400 instead of the $100 that you have. I really don't want to file an amendment but it seems like that is the correct way to go.
2/4/2014 9:58:46 PM
After going back through the boilerplate in the loan docs, I can see quite clearly my points are stated as zero. The only thing I can see that would apply is that my loan is Lender Paid Mortgage Insurance (LPMI) and it states it will be used/needed in tax documents. Not sure I get that part, if they 'pay' their LPMI for my loan, and I pay my higher interest rate why in the hell would I get a tax doc as points in my favor? Definitely going to be ringing them up later this week.^You mean 1098 or 1099?
2/4/2014 11:04:48 PM
This is the last year of that awesome small business tax credit.
2/5/2014 10:39:06 AM
2/5/2014 4:21:13 PM
anybody have any experience/guidance on claiming depreciation on a rental property?
2/5/2014 4:28:19 PM
It is required to be depreciated over 27.5 years. When you sell the home your basis is going to be decreased by depreciation whether you took it or not.
2/5/2014 11:10:12 PM
^^^Good thought about no need to amend since it wasnt itemized to begin with; I lost sight of that factor. After the first few years of doing it by hand on 1040EZ, now I just mindlessly plug and play in TT. As for the higher interest rate, the break-even point from what I have now to the lower interest and PMI is at 8.5 yrs, I wont be here for more than 5 from what I can tell and even thats probably stretching it. I did see origination charges in a separate box of the loan docs, but it's a different amount than whats on the 1098; also good to know for future home purchases.[Edited on February 6, 2014 at 12:10 AM. Reason : .]
2/6/2014 12:06:49 AM
To the OP:If you have more than $7,000 in itemized deductions, it's worth the money to go talk to an accountant or CPA. Over that threshold, you're likely going to be able to get a lot more back via itemized filing, rather than the typical simple filing through TurboTax.
2/6/2014 6:28:46 AM
I had right around $11,000 in deductions. They didn't seem overly complicated (to me at least)...but I think I'm going to get an accountant next time around. I'm going to be paying back a hefty sum to the government this year....but I more than prepared for it, so no biggie.
2/6/2014 7:14:34 AM
general tax question: anyone know any good deals on tax software? I managed to get H&R Block Federal + State w/ free eFile for a dollar last year, haven't seen anything nearly as good this season so far
2/6/2014 9:22:25 AM
^ if you are a NCSECU member, they have deals on turbotax. My employer has a reduced rate with HRBlock on their software, Yours might too if you ask at work.
2/6/2014 10:06:50 AM
I'm in DoD and have Penfed for my credit union, I'll check and see if they offer anything
2/6/2014 10:12:43 AM
In addition to my normal job, I voluntarily serve on the board as treasurer for a 501(c)3 non-profit. I regularly conduct duties at home during the evenings and drive to meetings/banking/etc. on my own dime. How much can I deduct for using my home as a part time business in this circumstance? I'm assuming I can also include all my mileage too. Thanks.
2/6/2014 11:16:12 AM
Since you are volunteering (and I am assuming you do not collect any income) the only thing deductible is the mileage. You get 14 cents per mile. This all assumes you are in fact itemizing.
2/6/2014 4:06:28 PM
^yep 14c/mile
2/6/2014 10:47:25 PM
Thanks for the advice. Wow 14 cents is low.
2/7/2014 11:58:15 AM
i haven't started my taxes, yet...i started an LLC last year and didn't pay my quarterlies, but the CPA i spoke with said it wasn't a big deal and i'll just be assessed a comparatively small penalty (which, he said, is sometimes worth the cost of not doing it on a quarterly basis)i have 2014 to contend with, though, where my LLC income will be significantly higher, so i might do it the "right" way this coming year
2/7/2014 12:51:52 PM
Its up to you. To avoid penalty you are required to withhold (or make through estimated payments) the lesser of:1. 100% of your 2013 tax or2. 90% of your 2014 taxSome people like to avoid penalty at all costs other could care less.
2/7/2014 10:09:23 PM
Has anyone had success with A4V redemption?
2/8/2014 10:10:20 AM
went with http://www.FreeTaxUSA.com this year; free federal file, 9.71 for state efile with code FREETAXUSA25
2/9/2014 4:57:30 PM
I always use Turbo Tax and don't buy that an accountant will save me that much. My finances are pretty vanilla though.[Edited on February 13, 2014 at 11:20 AM. Reason : missing word]
2/13/2014 11:19:57 AM
ouch. I've usually been pretty neutral (I think last year I owed $8 to the feds) or in a few cases got a bit of a refund. Looks like we owe about $1600 federally this year >.< I made significantly more money last year due to an out of town assignment though and because it was additional salary, per diem, and stipends I guess I didn't do the best job of keeping it all neutral at the end of the year. I felt pretty good about what I had withheld during the year federally. It was the state taxes I was confused about, never having been a resident in one state and received income from 2 states.I'm pretty sure I can't write off expenses if I was on a short-term assignment (7 months, officially documented) and got per diem during that time right?[Edited on February 21, 2014 at 3:38 PM. Reason : ]
2/21/2014 3:24:27 PM
Re-read this thread... Jbrick, sounds like you decided not to go with an accountant. You could always go to an accountant during the slow times, and work through your stuff... You might be able to work out a deal for a review of your taxes... Theyll likely try to suggest new things to prove their merit for next year. See what they find that you didn't... If they find more deductions, you can always refile for a previous year...
2/21/2014 6:05:30 PM
I just got a bill from the NC Dept. of Revenue saying I owe $70 more on a tax return I filed in 2011. Why the fuck would it take them so long to contact me if there really was an error? Seems more like a state phishing scheme to shake their citizens out of extra $$$$. It will take me more time and effort to dig through my files to figure out if it is true, write a letter, and get this resolved (if I am right) then simply send them a check.......
3/4/2014 7:01:21 PM
we recently received a bill for my wife to pay NC state taxes for 2009 (a year in which we didn't live or work in NC) so 2011 sounds like they are ahead of schedule to me - we were able to provide our tax return for 2009 and they wiped it clean but still a hassle
3/4/2014 7:28:44 PM
We had our taxes done the past two years because we had a lot of weird circumstances that went well beyond my EZ experience (getting married, moving to a state with no state taxes and back while maintaining residence in the state with no taxes, me being full-time employed to self-employed with no withholdings, military status, etc.) Our tax guy said NC is really greedy with getting every cent out of you they can, so they tend to follow up on anything that wasn't done just right, even if it's not a big amount. So I'm a little paranoid that they're going to take issue with my situation for last year. He didn't say it would take several years, though.
3/4/2014 7:54:40 PM
Guh, getting back almost a grand combined this year. Didn't cut it quite close enough. I guess I'll just throw that into my Roth for this year.
3/4/2014 11:08:01 PM
I owe about 170. I suppose that's about ideal. I didn't loan them money, and I don't owe much... I still hate writing checks.
3/4/2014 11:12:54 PM
So I completely forgot to include one of my W2s when I filed my taxes. I guess I completely blocked out the fact that I worked for TWC for 4 months, which is understandable. I have already received both my State and Federal refunds. How do I go about filing an amendment to include the W2 I left out? Do I just add it to the return and re-file it, or is there a special form I need to use?Also, it's going to cause me to have to pay a little money back. Will I need to pay that immediately or can it be deducted from my refund next year?
3/5/2014 10:58:11 AM
^ they are going to want their money immediately and not wait a year - would you wait a year for your refund if the government accidentally sent you less?however you filed your taxes should have a method to file an amendment - it's fairly standard stuff
3/5/2014 11:10:32 AM
Cool. I'd actually rather pay it now anyway. It's only about $100 each Fed/State.
3/5/2014 11:12:14 AM
I owed 3 grand to the fed because I took 20K out of an IRA for home purchase. I knew that I could avoid the penalty ($10k for me and my wife) but forgot that I would still have to pay tax on the withdrawal. Whoops
3/5/2014 1:13:22 PM
3/19/2014 2:46:09 PM
I got my federal refund back in less than a week and my NC refund back in like 2 weeks. I was shocked.
3/19/2014 5:21:43 PM
Wife and I got like $150 back last year...This year, our gross income went up 7k and we somehow owe $1480 in federal tax? What the hell happened? Our federal and state withholdings are at 1 state and 1 federal each and we own a home.Any thoughts?
3/19/2014 5:56:30 PM
^Without knowing a lot more info there could be a multitude of things to change it, absolutely no other changes? Maybe you crossed into another (higher) tax bracket now.
3/19/2014 8:41:37 PM
tax credits are phased out at certain income levels as well
3/19/2014 9:57:00 PM
^^We are still in the $72,501-$146,400 realm as it relates to federal tax rates.The only other difference is that we refinanced the house. We were not able to deduct as much Mortgage Insurance and Interest as we did last year (Difference of about $800 bucks). Just doesn't seem right that with our modest income coupled with home ownership and we end up owing so much money?
3/20/2014 7:36:43 AM
Did you rollover anything into a roth or get a bonus which wasn't taxed?
3/20/2014 9:12:41 AM
I pay for my own health/dental/life/disability insurances... are any of these eligible for being written off? What do I need to show those payments? I don't have statements, etc. as the companies don't provide them really...
3/20/2014 10:37:53 AM
Health/dental are. Records of payments via bank draft should be sufficient if questioned on it.Self-employed insurance can be taken as an "above the line" deduction to AGI on the front of the 1040.
3/20/2014 10:42:20 AM
Thanks. I'm not self-employed and I guess tax-wise, I'm not a contract employee either (I get a W2). I just don't get any benefits outside of pay & vacation, thus I pay for all of my own insurances OOP.
3/20/2014 12:37:15 PM