2016 Income Tax Status

[Bir48die]

Have two out of three tax packages. Now waiting for the big one. Will have 1099 DIV, 1099B and then a pile of K1's start trickling in. I can never even look at finishing my taxes until close to April 1st. In the past that's been okay because I've just gotten "tagged" and have to pay gobs even with huge past sums taken out monthly. This year will have partial year income and bonus but much less income so hoping that I will actually break even. Next year will be my first full retirement year so hoping to reverse the trend. However, paying taxes does mean for the most part that my taxable accounts have done well.

[Fedup]

Just sent in one of my kid's tax return. Waiting for kid #1 to come back from vacation to do hers. I've done mostly mine, except I need to check on Vanguard's 1099- Brokerage. I'm getting tax back, so not in a hurry. I mean I won't get into trouble for not doing it on time. But this week I have a piano midterm, so all my energy is going there.

[target2019]

TurboTax Home & Business purchaser/filer. Software was $79.86 through Amazon/Intuit. I just e-filed Fed and State. That was additional $20 or so. So total cost was $100 this year. Still need to complete in-laws tax package (waiting for a K-1).

Nothing unusual this year. Same PIA as always, LOL. I made it a point to enter information as I received it, and mark off on my checklist that it was done. Yesterday we went though all forms and double-checked entries and logic.

I made a larger, unnecessary 4th estimated payment towards Fed Tax at the end of 2016. That will cover all of our estimated payments for 2017. I made a similar miscalculation for estimated 2016 State tax. I earmarked half of the refund for a direct-deposit refund.

This is the first year in a while for e-filing state. I was cheap in the past, but it would probably cost $5 in postage to mail in the state forms. So I splurged for the extra $15.

[Surewhitey]

Filed Monday. Always get the returns in a week or two in the past. Stayed with TaxAct and paid $55 for both state and fed...

[ShokWaveRider]

I unfortunately am one of the ones that always ends up owing the FEDS something, this year it is $2100. My fault as I do not do estimated payments, as penalties if any are minimum to non existent. All my income is passive, not earned. So I file at the last minute and always do paper filings. Do not ask me why, I just always have, and I have for the past 15 years always included a check.

That brings me to another question....... 2 actually.

1) Are distributions from IRAs considered Earned income or passive?
2) Are SS Payments Earned or Passive?

I have not yet claimed any of these yet, but am still curious. We have enough cash (previously taxed) to last us about 15 years although at 70.5 we will have to start withdrawing.

[RockyMtn]

So far....

1. E filed my fed and mailed in state. Refuse to pay TT $20 to efile the state return. That is ridiculous.
2. Completed GF's return. She owes small amount so won't file till the last minute.
3. Completed GF's mother's return. Efiled the fed and mailed in her two state returns.
4. Still waiting for final W2 info from DS. He is going to get a refund so I tell him no W2's no money! He doesn't seem to care.

Think next year I will hang out a tax prep shingle!!!

[GrayHare]

Quote:

Originally Posted by ShokWaveRider 1) Are distributions from IRAs considered Earned income or passive? 2) Are SS Payments Earned or Passive?

1) earned
2) AFAIK neither, I'd term them "active"

[RockyMtn]

Quote:

Originally Posted by RockyMtn So far.... 1. E filed my fed and mailed in state. Refuse to pay TT $20 to efile the state return. That is ridiculous. 2. Completed GF's return. She owes small amount so won't file till the last minute. 3. Completed GF's mother's return. Efiled the fed and mailed in her two state returns. 4. Still waiting for final W2 info from DS. He is going to get a refund so I tell him no W2's no money! He doesn't seem to care. Think next year I will hang out a tax prep shingle!!!

Spoke too soon. Efile for my GF's mother got rejected because of inaccurate AGI number. Entered again and kicked back again. Went to the IRS site to pull up a copy of her return. They state a return was never filed.

Went to her state site to track her refund from last year. No refund to track indicates that there was no return filed.

Checked her bank statements for refund deposits. Nothing.

I have a copy of her TT PDF from 2015. Lawyer who put it together is trying to figure out if he mailed it or if he gave it to her to mail. She has no idea if she mailed it.

Good thing is that she had refund from both Feds and State so no penalties. Will probably just have to file 2015 again (or for the first time). Guess this needs to be done prior to filing 2016.

Anyone have any experience/suggestions with this?

Turning into more of a pain than I imagined.

[cathy63]

You'll have to mail the 2015 return. You might as well also print and mail the 2016 return (in a separate envelope) so you don't have to wait for 2015 to be processed before e-filing 2016. It won't matter to the IRS in what order it receives the paper returns.

[Fedup]

I've always skipped the efile, even if it's free. i just don't like those pesky questions I have to answer to efile.

[Fedup]

So I just finished my tax. I Still need to go back and check on a few things. But it's 95% done. I have a question if anybody can answer me here. In the past when I had a rollover, trustee to trustee transfer, but I still received a 1099-R form. But I did nothing as in nothing need to be filled out, but the IRS still sent me an electronic audit and I had to send papers proving I rolled my IRA to another institution.
Is it better to send the rollover with my tax return to avoid this kind of audit. It was a large sum of money so I'm sure it will perk the IRS interest. I just want to avoid this kind of audit just in case I'm on long vacation and don't get the notice in time.

[Sunset]

Quote:

Originally Posted by Fedup So I just finished my tax. I Still need to go back and check on a few things. But it's 95% done. I have a question if anybody can answer me here. In the past when I had a rollover, trustee to trustee transfer, but I still received a 1099-R form. But I did nothing as in nothing need to be filled out, but the IRS still sent me an electronic audit and I had to send papers proving I rolled my IRA to another institution. Is it better to send the rollover with my tax return to avoid this kind of audit. It was a large sum of money so I'm sure it will perk the IRS interest. I just want to avoid this kind of audit just in case I'm on long vacation and don't get the notice in time.

Its not clear if previously you e-filed, or paper filed without including the proof.

I would e-file, and wait.
If I had to paper file, then send a photocopy of the proof (never send your only original copy as you can be sure it will be lost that one time). You will probably need to send other paper proof too with a mailed paper return.

[Fedup]

Quote:

Originally Posted by Sunset Its not clear if previously you e-filed, or paper filed without including the proof. I would e-file, and wait. If I had to paper file, then send a photocopy of the proof (never send your only original copy as you can be sure it will be lost that one time). You will probably need to send other paper proof too with a mailed paper return.

I've always paper file my tax. I don't trust efile. Yes, I've always send copy only. I know the IRS misplace things. But I'm. It sure if it helps.

[FIREd]

E-filed on Monday (using TurboTax again) and my returns were accepted. We will get back about $3K from the Feds (I requested the amount to be paid in paper i-bonds), about $2K from California, and about $550 from Alabama. I did some TLH late in the year and it threw off my estimates a little bit.

[scrabbler1]

Quote:

Originally Posted by Fedup So I just finished my tax. I Still need to go back and check on a few things. But it's 95% done. I have a question if anybody can answer me here. In the past when I had a rollover, trustee to trustee transfer, but I still received a 1099-R form. But I did nothing as in nothing need to be filled out, but the IRS still sent me an electronic audit and I had to send papers proving I rolled my IRA to another institution. Is it better to send the rollover with my tax return to avoid this kind of audit. It was a large sum of money so I'm sure it will perk the IRS interest. I just want to avoid this kind of audit just in case I'm on long vacation and don't get the notice in time.

Did you enter the amount of the rollover on Line 15a of Form 1040 while entering a zero amount on Line 15b? Perhaps not including that entry, even though there would be no effect on your tax bill, triggered the audit?

My LF had a trustee-to-trustee rollover back in 2011 and that is what I did for her tax return. No problem. I had a trustee-to-trustee rollover back in 2008 but I also had other distributions from my 401k/ESOP and one of them included a taxable amount I posted on Line 15b.

Another friend receives a 1099-R for his RMD from an inherited IRA and has taxes withheld from it. In that instance, I include the 1099-R form because it shows those withheld taxes which are part of the amount shown on Line 64 of Form 1040 (tax payments).

[Fedup]

Quote:

Originally Posted by scrabbler1 Did you enter the amount of the rollover on Line 15a of Form 1040 while entering a zero amount on Line 15b? Perhaps not including that entry, even though there would be no effect on your tax bill, triggered the audit? My LF had a trustee-to-trustee rollover back in 2011 and that is what I did for her tax return. No problem. I had a trustee-to-trustee rollover back in 2008 but I also had other distributions from my 401k/ESOP and one of them included a taxable amount I posted on Line 15b. Another friend receives a 1099-R for his RMD from an inherited IRA and has taxes withheld from it. In that instance, I include the 1099-R form because it shows those withheld taxes which are part of the amount shown on Line 64 of Form 1040 (tax payments).

Thank you. Maybe that's what I should do. I thought in my mind it was trustee to trustee transfer and didn't bother. I didn't follow the step by step, just worked on the item I needed to input.

[nativenewenglander]

I did my spreadsheet in Excel, scanned all the 1099's, took the PDF's from the brokerage emailed the whole package to the CPA office. I own a small business, so for me the taxes are beyond my skill set. Our family has used the same CPA firm going back 50+years, so I am willing to pay the $800 for their help.

[W2R]

Got my Louisiana refund yesterday! Usually it takes several months, but they seem to be doing quite a lot better this year.

So, now I have both refunds. All I have left to do is schedule my automatic estimated tax payments for the coming year.

[Tadpole]

Federal refund deposited today.

[HawkeyeNFO]

Depreciation Recapture. BAD!!! At least the rest of the rental property sale is exempt from capital gains.