Tax Season!

[KennyTheKangaroo]

correct

[mac5155]

damn state. It's going to come out to like $4 worth of tax. oh well. guess I'll just pay the piper.

Still waiting on an answer from the dept of revenue if I can deduct this tuition reimbursement from my state income... they said it shouldn't have been taxed.

[Point Breeze Penguins]

So what do you do if the majority of your income is from a group that does not file taxes and is not going to give you a 1099?

[KennyTheKangaroo]

it would be best to contact a tax preparer, PBP

[PensFanInDC]

Tax season equals scanning and emailing docs to my accountant. Just emailed our church statement this evening and he already finished the return. Buying a house and having a baby is awfully nice come tax time

[Guinness]

Irony:

[eddysnake]

when I check my refund status it says

Refund Status Results

We have received your tax return and it is being processed. Your expected refund date has been changed due to processing delays. You should receive your refund by February 28, 2012. Please wait until that date to contact us again because we cannot take any action until then. Thank you for your patience.

It's now March 1 and when I try and contact them it's an automated response that hangs up after it says exactly what's above. Didn't do direct deposit last year, so I'm not sure what's going on. Anyone else late? Suggestions?

http://www.irs.gov/individuals/article/ ... 96,00.html

[columbia]

Irony:

I see what you mean, Guinness: she's not actually a statue.

[mac5155]

when I check my refund status it says

Refund Status Results

We have received your tax return and it is being processed. Your expected refund date has been changed due to processing delays. You should receive your refund by February 28, 2012. Please wait until that date to contact us again because we cannot take any action until then. Thank you for your patience.

It's now March 1 and when I try and contact them it's an automated response that hangs up after it says exactly what's above. Didn't do direct deposit last year, so I'm not sure what's going on. Anyone else late? Suggestions?

http://www.irs.gov/individuals/article/ ... 96,00.html

Were you sure to put the correct account number and routing numbers on the form?

I did w/ Turbo tax and had my refund DD within 7 days of filing.

[eddysnake]

when I check my refund status it says

Refund Status Results

We have received your tax return and it is being processed. Your expected refund date has been changed due to processing delays. You should receive your refund by February 28, 2012. Please wait until that date to contact us again because we cannot take any action until then. Thank you for your patience.

It's now March 1 and when I try and contact them it's an automated response that hangs up after it says exactly what's above. Didn't do direct deposit last year, so I'm not sure what's going on. Anyone else late? Suggestions?

http://www.irs.gov/individuals/article/ ... 96,00.html

Were you sure to put the correct account number and routing numbers on the form?

I did w/ Turbo tax and had my refund DD within 7 days of filing.

just spoke to someone after being on hold for 30 minutes. Apparently they had a glitch in the system and it didn't update the arrival time for people. so, I get to wait all the way until March 18 now!

yep, I had to enter it twice so I don't think I could have made the same mistake twice....

[ulf]

yep there was an error with the efile system, and you weren't able to see the date your refund should come, but as far as i know it didn't delay when it actually arrived.

[mac5155]

agh, waiting til last minute to pay state and local.

Question regarding my fiancee's... I'm pretty certain the 'accountant' that did her state return didn't do it correctly.

She has lived in PA for the entire year. She works in PA for WalMart. In 2011 she went to Ohio for 4 weeks of managerial training. During those 4 weeks she was paid she received a W2 from Ohio saying she owed Ohio taxes. They took the taxes out, but now this accountant is saying that she owes taxes on those Ohio wages to PA and owes taxes on the PA minus Ohio wages to Ohio. In other words she's paying state taxes twice.

I've done some research and it looks like she needs to file an Ohio form IT 10 to affirm that she is not required to file an Ohio income tax return because "During the taxable year I was a full-year resident of one of the following states (PA) and I had no taxable income in Ohio other than compensation (wages, salaries or tips) from unrelated employers."

This is correct, no? She should not owe taxes for all of her 2011 income to BOTH states, right?

[cheesesteakwithegg]

We refinanced our house last year. Are any of those closing costs tax deductible?

[Shyster]

They took the taxes out, but now this accountant is saying that she owes taxes on those Ohio wages to PA and owes taxes on the PA minus Ohio wages to Ohio. In other words she's paying state taxes twice.

Did you say that backwards? She would owe taxes on the income she received while in Ohio to Ohio, and taxes to PA on the remainder of her income (i.e., total income - income earned during time in Ohio). Ohio would have a claim on the income she earned in Ohio, and PA would have a claim on the remainder.

I don't do income taxes much, but this is generally the way it works for corporate taxes paid by businesses that do business in more than one state. She’s not paying taxes on the same money twice. Instead, she is paying taxes to more than one state based on the percentage of her income that is allocable to each state based on the fact that she earned the money while working in the state in question. It looks like she spent a month in Ohio. So she would owe taxes to Ohio based on 1/12 of her income and taxes to PA on 11/12 of her income for last year.

[TheHammer24]

I actually need to file an amended return for 2010 because I didn't give my uncle (CPA who did them for me) my 1098s from student loan interest. It was a sizeable chunk. How do I file an amended return? He said just refile. Not sure if it will be worth it or not

I found $800 deduction because you don't have to follow your 1098T when deducting tuition payments -- the IRS wants ACTUAL paid no when the school billed it, which is what the 1098-T reflects. As A result, I had $0 tax liability in my final year of college (formerly $800).

To file an amended return, you have to fill out the 1040-X. Follow the directions, as it's a tad confusing. Include the forms they tell you to include.

[mac5155]

They took the taxes out, but now this accountant is saying that she owes taxes on those Ohio wages to PA and owes taxes on the PA minus Ohio wages to Ohio. In other words she's paying state taxes twice.

Did you say that backwards? She would owe taxes on the income she received while in Ohio to Ohio, and taxes to PA on the remainder of her income (i.e., total income - income earned during time in Ohio). Ohio would have a claim on the income she earned in Ohio, and PA would have a claim on the remainder.

I don't do income taxes much, but this is generally the way it works for corporate taxes paid by businesses that do business in more than one state. She’s not paying taxes on the same money twice. Instead, she is paying taxes to more than one state based on the percentage of her income that is allocable to each state based on the fact that she earned the money while working in the state in question. It looks like she spent a month in Ohio. So she would owe taxes to Ohio based on 1/12 of her income and taxes to PA on 11/12 of her income for last year.

Yes this is what I mean. Hard to convey..

The preparer says she needs to pay taxes on 100% of income to both states.

[TheHammer24]

They took the taxes out, but now this accountant is saying that she owes taxes on those Ohio wages to PA and owes taxes on the PA minus Ohio wages to Ohio. In other words she's paying state taxes twice.

Did you say that backwards? She would owe taxes on the income she received while in Ohio to Ohio, and taxes to PA on the remainder of her income (i.e., total income - income earned during time in Ohio). Ohio would have a claim on the income she earned in Ohio, and PA would have a claim on the remainder.

I don't do income taxes much, but this is generally the way it works for corporate taxes paid by businesses that do business in more than one state. She’s not paying taxes on the same money twice. Instead, she is paying taxes to more than one state based on the percentage of her income that is allocable to each state based on the fact that she earned the money while working in the state in question. It looks like she spent a month in Ohio. So she would owe taxes to Ohio based on 1/12 of her income and taxes to PA on 11/12 of her income for last year.

Yes this is what I mean. Hard to convey..

The preparer says she needs to pay income on 100% of income to both states.

Dear God. I can't believe they pay these guys. So basically what the "accountant" says is that if you make $100 in State A which taxes at 25% and $100 while working in State B which taxes at 10% you need to pay $50 to state A and $20 to State B.

If so, that person needs fired immediately. And if I'm wrong, then the tax system is more effed than I thought.

My understanding is that you need to pay $25 to state A and $10 to state B in my example. I think there are ways that you can estimate it (say you travel every day like a pro athlete and it's hard to figure out where you worked and when), but since she got a W-2 from Ohio, this should be easy.

[KennyTheKangaroo]

if your residence is in PA, you pay tax on income you earn in ohio. so if you live in PA and work in ohio, you pay tax on the wages earned in ohio. HOWEVA, you can file a few schedules (g-r and g-l) to get a credit for any tax you owe to the other state. so you arent paying PA tax on the wages you earned in ohio, and you arent taxed twice on the same income.

from a distance, kenny the kangaroo raises questions about whether or not that income is even taxable in ohio though. kenny the kangaroo dont feel like going through the effort and looking through the rules to see if that is the case

[mac5155]

I feel the same way KtK. Good old Walmart

[mac5155]

I looked over the pa-40 again. Found an issue. The PA gross income includes ALL income earned in both Ohio and PA. The income earned in Ohio and taxed in Ohio should be exempt from PA taxes, correct?

Edit- it appears Ohio is a reciprocal agreement state. So, she has to pay the PA taxes and file a return for Ohio taxes. Rev611 on PA portal gave me this info.

There's some other fishy stuff on her return too. She has 1 exemption checked (as in 'yourself' line 6a of 1040A) but her mother probably claimed all her tuition credits and also as a dependant. I hope they don't get the A-word. Its funny how she wont listen to me because "this Guy does taxes for a living"

[mac5155]

Talked to a guy at work that works in PA but lives in WV. He said to file a return for Ohio and pay PA. Said the employer was lazy and didnt fill out paperwork because of the reciprocal agreement between states. I think the case is closed...

[Pitt87]

So what do you do if the majority of your income is from a group that does not file taxes and is not going to give you a 1099?

Call the IRS, have the address of the Co. that owes you information ready, and they will tell you what to do. They may ask you to find another way to estimate it, or report it undocumented. Either way, just let them know and they will give you the directions you need.

[ulf]

Almost there.

[TheHammer24]

So what do you do if the majority of your income is from a group that does not file taxes and is not going to give you a 1099?

Call the IRS, have the address of the Co. that owes you information ready, and they will tell you what to do. They may ask you to find another way to estimate it, or report it undocumented. Either way, just let them know and they will give you the directions you need.

There is probably an IRS publication on this. Those tend to be very comprehensive but clear and concise.

[ulf]

I mean, if they aren't issuing 1099s, they don't really know you made that money

Or you can just estimate it and put it on your schedule C. I bet 5% of the returns I do actually have 1099s to tie out to their income.

edit: I see that was for PBP. Don't know if he can read these anymore lol