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02-08-2013, 07:58 AM
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#21
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Thinks s/he gets paid by the post
Join Date: Jul 2012
Location: Mississippi
Posts: 1,894
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Quote:
Originally Posted by frayne
I never file my taxes much before April due to the fact of getting corrected 1099s, which seems to happen with annual regularity these dyas.
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I never file until the due date 4/15, just wait to get all the corrected 1099s and K-1 forms. Also I have to write them check so no hurry. Haven't gotten a refund since part time college jobs.
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02-10-2013, 01:08 PM
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#22
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Full time employment: Posting here.
Join Date: Apr 2010
Posts: 853
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i just filed. I had almost $7k outstanding to me. My income is extremely volatile, my AGI is $100k less than last year and straddles a marginal tax rate. Either way, I'd rather get my money now when it is significant (at least to me), and deal with corrected 1099's before 4/15.
I guess I could just max out the W4 "exemptions" and all would be well.
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02-10-2013, 02:31 PM
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#23
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Thinks s/he gets paid by the post
Join Date: Oct 2002
Location: Chattanooga
Posts: 3,895
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Quote:
Originally Posted by ronocnikral
i just filed. I had almost $7k outstanding to me. My income is extremely volatile, my AGI is $100k less than last year and straddles a marginal tax rate. Either way, I'd rather get my money now when it is significant (at least to me), and deal with corrected 1099's before 4/15.
I guess I could just max out the W4 "exemptions" and all would be well.
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So you let uncle sam use $7k of your money interest free in 2012 ? Not a good thing in my book.
__________________
Earning money is an action, saving money is a behavior, growing money takes a well diversified portfolio and the discipline to ignore market swings.
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02-10-2013, 04:05 PM
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#24
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Thinks s/he gets paid by the post
Join Date: Jan 2008
Posts: 1,671
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I usually wait and file in September.
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02-10-2013, 04:20 PM
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#25
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Full time employment: Posting here.
Join Date: Apr 2010
Posts: 853
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Quote:
Originally Posted by frayne
So you let uncle sam use $7k of your money interest free in 2012 ? Not a good thing in my book.
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While I understand that it may be easy for others to estimate their taxes, it has always been a very difficult thing for me. For example, my tax liability in 2011 was $35k and in 2012 was only $9k. While I knew my tax liability in 2012 would be lower, I didn't know exactly. And while $7k is a lot, I'd rather not pay the penalties, as that is not a good thing in my book.
Sometimes, it is much easier to look down your nose at people than to actually put into practice what you are advocating.
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02-10-2013, 05:15 PM
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#26
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2007
Posts: 13,228
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Quote:
Originally Posted by easysurfer
Here's a good write up about Amended Tax Returns:
Filing an Amended Tax Return Using IRS Form 1040X
Following this, I think my situation would fall under the latter...
"You should not file an amended return if you are only correcting math errors as the IRS computers will check your math and correct any errors in calculation. Math errors are errors in adding or subtracting items on your tax return."
Another way to state it, as Wally from "Leave It To Beaver" might say "No sense getting all shook up over it Beav"
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Really? If you're going to use that write up as a guide, your situation falls a lot more clearly under this statement, doesn't it?
"You can use an amended return to make corrections to your filing status, dependents, income, deductions, or tax credits. For example, if you need to report additional income from a W-2 that arrived after you filed your original return, you'll need to file an amendment. "
If it's a few dollars, I agree with the previous post that said let the IRS find it and bill you. If it's more than that, realize that you're going to be charged interest and a penalty, which I think is 20%.
It's up to you, but that's not a math error, that's additional income. An amended return really isn't that hard to do, especially since you can get it done before 4/15 and not deal with any interest or penalty.
Also, it depends on what the omission is. I somehow missed reporting a stock sale, and the IRS found it. The bill I got was for the entire proceeds, since they couldn't determine the basis and calculated it as 0, and a short term sale. So I had to fill out an amended return to declare the basis, because I would've owed thousands instead of less than $100.
I don't know if they caught my omission by a random check or if they check everyone's 1099s with schedule D. It became more of a pain because apparently once the computer kicked it out, someone did some manual calculations and swapped my basis and proceeds on a different transaction so it still didn't add up right unless you swapped that transaction. I called the 800 number on the form and actually talked the agent through each stock sale and 1099 to show that I was right, after adding the one omission. And even then it took a couple more letters and documentation to settle it, and they still didn't get it quite right, and I decided it was close enough and if they were fine with it, I was too.
If it's just dividends or interest, you won't go through so much.
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02-10-2013, 06:41 PM
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#27
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Thinks s/he gets paid by the post
Join Date: Oct 2002
Location: Chattanooga
Posts: 3,895
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Quote:
Originally Posted by ronocnikral
While I understand that it may be easy for others to estimate their taxes, it has always been a very difficult thing for me. For example, my tax liability in 2011 was $35k and in 2012 was only $9k. While I knew my tax liability in 2012 would be lower, I didn't know exactly. And while $7k is a lot, I'd rather not pay the penalties, as that is not a good thing in my book.
Sometimes, it is much easier to look down your nose at people than to actually put into practice what you are advocating.
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Not looking down at you by any stretch of the imagination, just wondered why you didn't or don't do quarterly estimated payments throughout the year. But again, I don't know what your vocation is or tax situation.
__________________
Earning money is an action, saving money is a behavior, growing money takes a well diversified portfolio and the discipline to ignore market swings.
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02-10-2013, 07:20 PM
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#28
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2008
Posts: 13,150
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Quote:
Originally Posted by RunningBum
Really? If you're going to use that write up as a guide, your situation falls a lot more clearly under this statement, doesn't it?
"You can use an amended return to make corrections to your filing status, dependents, income, deductions, or tax credits. For example, if you need to report additional income from a W-2 that arrived after you filed your original return, you'll need to file an amendment. "
If it's a few dollars, I agree with the previous post that said let the IRS find it and bill you. If it's more than that, realize that you're going to be charged interest and a penalty, which I think is 20%.
It's up to you, but that's not a math error, that's additional income. An amended return really isn't that hard to do, especially since you can get it done before 4/15 and not deal with any interest or penalty.
Also, it depends on what the omission is. I somehow missed reporting a stock sale, and the IRS found it. The bill I got was for the entire proceeds, since they couldn't determine the basis and calculated it as 0, and a short term sale. So I had to fill out an amended return to declare the basis, because I would've owed thousands instead of less than $100.
I don't know if they caught my omission by a random check or if they check everyone's 1099s with schedule D. It became more of a pain because apparently once the computer kicked it out, someone did some manual calculations and swapped my basis and proceeds on a different transaction so it still didn't add up right unless you swapped that transaction. I called the 800 number on the form and actually talked the agent through each stock sale and 1099 to show that I was right, after adding the one omission. And even then it took a couple more letters and documentation to settle it, and they still didn't get it quite right, and I decided it was close enough and if they were fine with it, I was too.
If it's just dividends or interest, you won't go through so much.
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I'll give some more specifics. The total amount of interest on the current 1099-OID is about $50. When I get the new one (not until later this month), I don't think the new amount would make any difference or not in the calculation (of whether I get any more refund or owe any more this year).
But even if it's only a couple bucks difference, say the new OID says $48 or $52, I wonder if that is worth doing the amended form or not. I still might as I like getting things correct down to the penny.
Thanks for the post.
__________________
Have you ever seen a headstone with these words
"If only I had spent more time at work" ... from "Busy Man" sung by Billy Ray Cyrus
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02-11-2013, 06:16 AM
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#29
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Thinks s/he gets paid by the post
Join Date: Mar 2005
Posts: 2,603
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TT has dropped in "updates" right up until the filing deadline ... still waiting for the MA state to finalize; so I never file early
__________________
FIRE'd since 2005
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02-11-2013, 06:36 AM
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#30
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2005
Posts: 10,252
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Quote:
Originally Posted by ronocnikral
While I understand that it may be easy for others to estimate their taxes, it has always been a very difficult thing for me. For example, my tax liability in 2011 was $35k and in 2012 was only $9k. While I knew my tax liability in 2012 would be lower, I didn't know exactly. And while $7k is a lot, I'd rather not pay the penalties, as that is not a good thing in my book.
Sometimes, it is much easier to look down your nose at people than to actually put into practice what you are advocating.
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There are many easy ways around this issue. Already mentioned are changing withholdings and making estimated tax payments. One doesn't need to file an estimated payment for every quarter and the estimated payment can still occur if one is withholding from a paycheck. There are advantages to withholding from a paycheck, too.
I change my paycheck withholding a few times a year after running the numbers in TurboTax. After year-end mutual fund and stock dividends are paid, I do a preliminary tax return as well.
If I have too little withheld, I make an estimate tax payment. If I have an expected refund coming, then I adjust my paycheck withholding in January to essentially $0 so that the refund appears in my paycheck. Then when I file my taxes in October, I just have the overpayment apply to the next tax year.
So-called "safe harbor" exceptions are easy to meet if one's income and tax liability have increased, but when one's income has decreased it is harder to underpay and thus a refund an easy thing to happen. With interests rates under 0.5%, it is not as much of an "interest-free loan" to the government as it used to be.
And $7K refund would not be a lot to me if income taxes were $100,000.
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02-11-2013, 07:11 AM
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#31
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Thinks s/he gets paid by the post
Join Date: Jan 2008
Posts: 1,671
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Quote:
I don't know if they caught my omission by a random check or if they check everyone's 1099s with schedule D.
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The IRS will match the total sales value on Schedule D with the electronic 1099Bs they receive.
I process about 500 returns a year. I recommend to my preparers that they do a simple check of the Sched D totals to the 1099B totals - it avoids a lot of errors.
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02-11-2013, 07:22 AM
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#32
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,154
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Quote:
Originally Posted by jebmke
The IRS will match the total sales value on Schedule D with the electronic 1099Bs they receive.
I process about 500 returns a year. I recommend to my preparers that they do a simple check of the Sched D totals to the 1099B totals - it avoids a lot of errors.
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Great tip!
And it's one of the checks I do by hand against my turbotax result.
__________________
Retired since summer 1999.
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02-11-2013, 01:24 PM
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#33
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Dryer sheet wannabe
Join Date: Nov 2012
Posts: 17
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Quote:
Originally Posted by easysurfer
...Note to self... In future, waitl until March 1 to start taxes.
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For the 2010 tax year there was a late change to how the IRS handled certain deductions. Unfortunately there was a bug in how their systems were updated that resulted in most (all?) forms claiming this deduction filed before a certain date in mid February being completely screwed up. We didn't get our refund until sometime in June or July and had to get Tax Advocate involved. Now I always wait until closer to the deadline to file
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02-15-2013, 02:39 PM
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#34
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Thinks s/he gets paid by the post
Join Date: Jul 2011
Location: Bernalillo, NM
Posts: 2,717
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2013 might be different for the timing of filing taxes. According to Mark Steber, Chief Tax Officer, Jackson Hewitt Tax Service Inc., everyone should file before the March 1 sequestration. He paints a 'sky is falling' picture. Mark Steber: The IRS Sequestration: Why You Should Care, and What It Means
Here is an excerpt:
"An IRS furlough means the following for taxpayers:
- There will be even fewer IRS operators to take taxpayer calls and answer questions.
- The taxpayer assistance centers will operate with even fewer people and hours than currently during a time that is expected to be even busier than normal.
- If there are issues, even small ones, they will take much longer to address and get corrected with your return."
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02-15-2013, 02:41 PM
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#35
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2008
Posts: 13,150
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Quote:
Originally Posted by Exterous
For the 2010 tax year there was a late change to how the IRS handled certain deductions. Unfortunately there was a bug in how their systems were updated that resulted in most (all?) forms claiming this deduction filed before a certain date in mid February being completely screwed up. We didn't get our refund until sometime in June or July and had to get Tax Advocate involved. Now I always wait until closer to the deadline to file
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In the future my signal of when to file might not be the superbowl but opening day of baseball.
__________________
Have you ever seen a headstone with these words
"If only I had spent more time at work" ... from "Busy Man" sung by Billy Ray Cyrus
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02-15-2013, 02:50 PM
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#36
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
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Quote:
Originally Posted by easysurfer
Tax Filing - Early Bird Doesn't Get the Worm
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No, the early bird still gets the worm.
However, it's the second mouse that gets the cheese.
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02-15-2013, 03:01 PM
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#37
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Recycles dryer sheets
Join Date: Jan 2012
Location: Colorado
Posts: 254
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I tried something new this year, I used the "freefilefillableforms" link from the Internal Revenue Service site. You fill in forms just like you would manually and it does the math for you. E-Filed on Feb 1 and got my refund on Feb 9. Pretty slick and free !!. Assuming nothing bad comes back to haunt me for doing this, I will use this method next year.
__________________
Don't you know that dynamite always blows down ? --- Moe to Curly
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02-15-2013, 03:13 PM
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#38
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,154
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Quote:
Originally Posted by timo2
2013 might be different for the timing of filing taxes. According to Mark Steber, Chief Tax Officer, Jackson Hewitt Tax Service Inc., everyone should file before the March 1 sequestration. He paints a 'sky is falling' picture. Mark Steber: The IRS Sequestration: Why You Should Care, and What It Means
Here is an excerpt:
"An IRS furlough means the following for taxpayers:
- There will be even fewer IRS operators to take taxpayer calls and answer questions.
- The taxpayer assistance centers will operate with even fewer people and hours than currently during a time that is expected to be even busier than normal.
- If there are issues, even small ones, they will take much longer to address and get corrected with your return."
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Oh, yeah, and
Quote:
As I've said in the past for all of the "this year is a complex year" reasons, this is not a year to go it alone at tax time. You should use a paid preparer to help navigate the murky confusing world of taxes, and soon, before possible IRS and other government sequestrations occur.
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In other words, taxes are just too hard for the "little people" to do on their own.
If I were expecting a refund, I would perhaps hurry up. But since I'm paying and it's all electronic, I'm not worried. So what if it takes them months to process my return.
Besides, we don't have any idea what will really happen with the sequestration.
__________________
Retired since summer 1999.
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02-15-2013, 03:27 PM
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#39
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Thinks s/he gets paid by the post
Join Date: Mar 2009
Posts: 2,985
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Quote:
Originally Posted by arky
I tried something new this year, I used the "freefilefillableforms" link from the Internal Revenue Service site. You fill in forms just like you would manually and it does the math for you. E-Filed on Feb 1 and got my refund on Feb 9. Pretty slick and free !!. Assuming nothing bad comes back to haunt me for doing this, I will use this method next year.
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I'm a first time user myself. Filed on 1/31 went on vacation and the relatively small refund was in the bank when I returned on 2/8.
__________________
Took SS at 62 and hope I live long enough to regret the decision.
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02-19-2013, 02:11 PM
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#40
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2008
Posts: 13,150
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Well, I definitely will be file amended returns this year. Not only did I receive a corrected 1099-OID, but also a 1099-B which I had not received when I filed earlier.
The problem child is me investing in peer-to-peer lending, namely, The Lending Club. Which brings another question on the proper way to input 1099-OID info in Turbotax.
On the statement, that shows the individual note number and then the Box 1 amounts (some only a few cents as in Lending Club, $25 loans are the minimum).
For recording purposes of the 1099-OID, is it right to just put in the Payer and total amount (in this case, Lending Club, and say $45)? Or is it correct to input each note? (in this case, about 50 notes total, which should sum up up to the $45).
__________________
Have you ever seen a headstone with these words
"If only I had spent more time at work" ... from "Busy Man" sung by Billy Ray Cyrus
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