Tax Season!

[KennyTheKangaroo]

Oh yeah. I have to learn about this daycare cost tax credit too. Anyone an expert on that?

Looks like 20% of expenses? Not bad. In a full year that is like a $2800 credit, which is basically a $10k deduction. Niiice.

a lot of daycare places will provide you with some of the necessary info you will need to prepare form 2441

[ExPatriatePen]

[youtube][/youtube]

[Shyster]

I've used the basic version of TaxAct for the last couple years. I'm single and have only mortgage-related stuff to deduct. I could certainly fill out the forms myself, but out of laziness I go with the computer filing. I use the Commonwealth's online filing for PA taxes.

[mac5155]

I actually paid a lot more state taxes than normal this year. I might get a nice refund from them as well.

[KennyTheKangaroo]

that doesnt sound right, mac. generally speaking, unless your employer really screwed up and overpaid, you shouldnt be getting a refund from the state.

[viva la ben]

My state tax witholding turns out to be right on the money every year

[Pitt87]

Doesn't look like I can claim the Lifetime Learning Credit cause my employer reimburses me but I can deduct the tuition.

I could still get the Hope credit under those circumstances.4

[Pitt87]

I have another child to claim this year too, booya!

Have a question about that... and if you are uncomfortable answering or would like to PM me, please do, but how many allowances do you take? I have a new baby at home and my wife is likely staying home, and my calculation is coming up with 5. Seems like a lot. Thoughts? Experience?

There are a number of factors

do you file jointly with your wife?
did she receive income in 2011?

Yes and yes. Baby was born Jan. 2 and Mom isn't going back to work. This is planning for 2012, not this year.

[ExPatriatePen]

I have another child to claim this year too, booya!

Have a question about that... and if you are uncomfortable answering or would like to PM me, please do, but how many allowances do you take? I have a new baby at home and my wife is likely staying home, and my calculation is coming up with 5. Seems like a lot. Thoughts? Experience?

There are a number of factors

do you file jointly with your wife?
did she receive income in 2011?

Yes and yes. Baby was born Jan. 2 and Mom isn't going back to work. This is planning for 2012, not this year.

What, you missed out on a 2011 tax deduction by only two days? Dude, what were you thinking? You should have bought that woman a pogo stick for Christmas

[Pitt87]

I have another child to claim this year too, booya!

Have a question about that... and if you are uncomfortable answering or would like to PM me, please do, but how many allowances do you take? I have a new baby at home and my wife is likely staying home, and my calculation is coming up with 5. Seems like a lot. Thoughts? Experience?

There are a number of factors

do you file jointly with your wife?
did she receive income in 2011?

Yes and yes. Baby was born Jan. 2 and Mom isn't going back to work. This is planning for 2012, not this year.

What, you missed out on a 2011 tax deduction by only two days? Dude, what were you thinking? You should have bought that woman a pogo stick for Christmas

I know! Tried everything, including Jagr and Talbot scoring on the 29th...

[mac5155]

that doesnt sound right, mac. generally speaking, unless your employer really screwed up and overpaid, you shouldnt be getting a refund from the state.

They taxed my tuition reimbursement. The state told me I should be able to get that back at tax time. There's actually an open case between my employer and the PA Dept of Revenue because of the issue.

[AlexPKeaton]

I'm paying 15% regardless of what the IRS says I should pay. If it is good enough for Mitt Romney then it is good enough for me.

[mac5155]

Question:

Do I need to send in my student loan interest documents with my 2010 year 1040x amended return? Also what about with this year's return?

[ExPatriatePen]

Documentation? We don't need no stink'n DOCUMENTATION.

[KennyTheKangaroo]

Question:

Do I need to send in my student loan interest documents with my 2010 year 1040x amended return? Also what about with this year's return?

no and no

just make you explain yourself clearly on the 1040x

[mac5155]

Question:

Do I need to send in my student loan interest documents with my 2010 year 1040x amended return? Also what about with this year's return?

no and no

just make you explain yourself clearly on the 1040x

Is "Forgot to deduct student interest when originally filed" acceptable?

[KennyTheKangaroo]

inadvertently ommitted is the fancy speak for "forgot to"

[Kraftster]

When can I expect to get my 1098 from my mortgage company?

I want to get my taxes wrapped up asap. Last year was my first year of home ownership, and I cannot recall when I received the form.

[ExPatriatePen]

Does anyone have any experience with establishing residency in a state that doesn't have a state income tax? It's looking more and more like I'll be re-entering the work force and I'm seriously considering establishing residency in Florida or another zero state tax state as NY's 7% state tax rate is extremely onerous.

How much time do you have to spend in a state to claim it as your primary residence? If you're a traveling consultant does time spent in hotels on the road count toward that residency time?

[mac5155]

So my fiancee worked in Ohio for training for 6 weeks this year, and while there she was taxed at an Ohio state rate. Are state taxes like local taxes where they forward them back to your home residence or will she have to file a return for Ohio as well?

Additionally she received cash payments for mileage and food while there - (straight cash, no checks). Does she have to enter these? Someone will be preparing her taxes but I feel like we should tell him as much info as I know.

[ExPatriatePen]

So my fiancee worked in Ohio for training for 6 weeks this year, and while there she was taxed at an Ohio state rate. Are state taxes like local taxes where they forward them back to your home residence or will she have to file a return for Ohio as well?

Additionally she received cash payments for mileage and food while there - (straight cash, no checks). Does she have to enter these? Someone will be preparing her taxes but I feel like we should tell him as much info as I know.

I'm not an accountant, but that sounds wrong. The company shouldn't have taken Ohio state taxes out if her residence of record was PA.

I had a job for a number of years where I was on assignment for 6-9 months at a time. In fact from 1996-1999, I think I spent a total of 40 nights in my own house. I was in NY(x2), Mass., Ohio, And Rhode Island for those assignments. The entire time my residence of record was PA and I was dinged for PA state taxes.

Your finacee should be entitled to an Ohio refund (she has to file) but she'll also be obligated to file for that period on PA.

As for the cash payment, those are business expense reimbursements and aren't subject to individual income tax.

Just remember, I'm not an accountant and have, in fact, gone multiple rounds with the IRS. Consult your own accountant for professional advice.

Edit: Maybe KtK can chime in, (or NAN) they're much more qualified to comment.

[mac5155]

Yeah I didn't think it sounded right either. Like I said, her mom usually takes her taxes w/ her to someone she knows. Since she had college expenses and can probably claim some education credits this year I will just tell her to alert the accountant and let him handle it. He usually gets them both substantial refunds but he charges a lot.

[JeffDFD]

So I had my first bundle of tax savings...I mean bundle of joy in 2011. So as far as taxes I can now claim a dependent, which means I will get the taxes I paid on 3700 worth of income back (I didn't update my W4 yet), plus for 2011 they are just going to give me $1000 too?

Party at my house?

[Kraftster]

Plus a deduction if you paid for day care at all!

[Shyster]

I did my PA taxes using the PA Direct File site last night. I noticed that the site (as well as the new PA-40 paper form) now asks you to calculate and submit use taxes. Use taxes are the inverse of sales tax; when you buy something out of state (like from Amazon, for example), you are supposed to send Pennsylvania the same amount that you would have paid in sales tax had you bought that in state. Not surprisingly, nobody ever does that, and that tax largely goes uncollected.

Using the anonymity offered by the internet, does anyone actually plan on going back through all of your online 2011 purchases and sending the state 6% use tax (7% if you live in Allegheny County) on everything the Commonwealth considers taxable? I must admit that the amount I entered might have been slightly "inaccurate."