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Old 01-05-2017, 10:34 PM   #21
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Wow, I've got to admit to total surprise that folks on this forum are considering filing so early, very little upside and a whole lot of downside.

The announced date for the Fed system to start actively pulling returns is Jan 23. They will be just sitting on a server for several weeks. But you can't pull it back to make any corrections, the returns are out of your reach. Much more likely to need to file an amended return if numbers are not correct, or wait for the IRS nasty letter in about 18 months, with penalties and interest. Just not worth it.

The IRS is requiring employers to submit electronic copies of W2s by Jan 31 this year and there will be much more early matching of your figures to the W2s to reduce fraud. If a discrepancy, expect refunds to be dragged out while investigating. Why call unnecessary attention to yourself by being impatient?

This time of year, I spend some time on a TurboTax forum and one of the most common current issues is folks trying to file with the final paystub from last year, filing and then getting a tax document they forgot about, and how to amend, but that software won't be available until mid Feb.
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Old 01-06-2017, 01:03 AM   #22
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I have mutual funds that have paid foreign taxes. These will be listed on 1099-DIV when those are issued and perhaps corrected once or twice...
and also dividends from foreign stocks that I own. It is true that my brokerages usually send out corrected 1099-DIV forms after the first one.

I owe taxes, so see no reason to rush. If a hacker files in my name, will he have to pay the taxes for me?
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Old 01-06-2017, 06:59 AM   #23
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When I worked for Block we would store the early returns on a server and the intent was they would be first in line in the que when the IRS started accepting returns. The problem that seemed to happen year after year was the IRS system would crash the first day they started accepting returns and sometimes returns would be acknowledged as accepted but in reality were lost in cyberspace. Could be very frustrating trying to explain that to a client that was counting on their money on a certain day and it didn't show up.
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Old 01-06-2017, 07:38 AM   #24
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I made a first cut by using the 2015 software and including estimates of everything for 2016. I can't really file early because I need to download transactions from the brokerages and some of those aren't available till early February. In the meantime I created some dummy 1099-DIV and -INT forms and summary capital gain and loss items so I have a rough idea of where I stand. I'll owe a ton thanks to capital gains, but owed zero last year so there should be no penalty.


Not looking forward to 2017, tax-wise. I will file as Single and that's going to have a major effect on the taxes.
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Old 01-06-2017, 11:14 AM   #25
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I haven't received any 1099s yet, nor ordered any forms. I need to pay 4Q2016 state taxes next week.

I don't use any filing SW, I do everything by hand/paper. From my point of view, that forces me to READ the instructions and regulations and understand what I am doing. I'm not sure what advantage filing SW would provide,other than eliminating any math errors. But then again, I haven't tried any.

Interesting thread discussion.

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Old 01-06-2017, 01:10 PM   #26
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Since the OP mentioned 1099-B, then they must have had a taxable brokerage account and that will usually mean a 1099-DIV. I cannot imagine that anything on a web site has accurate numbers for ETFs and mutual fund QDI and foreign taxes. I can guess that if one did not have any funds, then the stock dividends would be easy to see and QDI percentage would be the same as last year.

I must say this whole thread gives new meaning to "jumping the gun."
I agree, it's jumping the gun. But it annoyed me that 20% of my 401k withdrawal is in the hands of the wrong entity. And when "fairness" is involved, logic goes out the window. I'm ready to file an amended return if any of my numbers are wrong (but I think I got 'em all).

Fidelity has a page you can see what they've got (see below). Is this not to be trusted?

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Wow, I've got to admit to total surprise that folks on this forum are considering filing so early, very little upside and a whole lot of downside.
When I filed, I didn't know it wouldn't be of any use until 1/23. I would not have filed if I knew that because, as you say, no ability to change anything now.

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The problem that seemed to happen year after year was the IRS system would crash the first day they started accepting returns and sometimes returns would be acknowledged as accepted but in reality were lost in cyberspace. Could be very frustrating trying to explain that to a client that was counting on their money on a certain day and it didn't show up.
Lovely. Hopefully we won't have THAT happen this year.
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Old 01-06-2017, 01:15 PM   #27
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I'm not sure what advantage filing SW would provide,other than eliminating any math errors. But then again, I haven't tried any.
For me, the main advantage of using tax software comes in second and subsequent years, because it keeps track of everything that carries over from year to year and prevents me from having to manually find and enter numbers from the previous year on this year's forms. Just off the top of my head, I know we have passive loss carryovers; prior year AMT; education deductions that have a lifetime maximum; tIRAs with after-tax contributions; last year's state tax refund; and rental property depreciation. I like that the interview mode also helps me identify any new forms that should be filled out.

The smaller benefit is that it reduces the entire process of doing the state return down to about 3 minutes because I've already entered everything on the Federal.
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Old 01-06-2017, 02:12 PM   #28
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I always thought the IRS won't start accepting returns until the end of January.

I start to input data in TT in early February but don't usually efile until the end of the month. If I'm due a refund I always went with direct deposit.
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Old 01-06-2017, 03:28 PM   #29
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Fidelity has a page you can see what they've got (see below). Is this not to be trusted?
Definitely not to be trusted. I have accounts at Fidelity and it shows the wrong information.

Do ANY of your investments in taxable accounts have Qualified Dividends for 2016? None of mine do, but I know the percentage of QDI will be above 70% eventually when they get this corrected.
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Old 01-06-2017, 03:40 PM   #30
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Definitely not to be trusted. I have accounts at Fidelity and it shows the wrong information.

Do ANY of your investments in taxable accounts have Qualified Dividends for 2016? None of mine do, but I know the percentage of QDI will be above 70% eventually when they get this corrected.
Part of my career was at a transfer agency. Tax reporting is a real PIA for many reasons. Don't trust anything early, the chances of it being correct are slim. Of course if you don't mind corrections....YMMV
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Old 01-06-2017, 03:41 PM   #31
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^ I sold my last bit of already taxed stock this year, so everything now is in a tax advantaged accounts. These dividends are very small numbers anyway, and none next year. For the little bit of dividend, I believed what Fidelity said...it was the same as last year. If it's changed, and it makes a difference, I'll file an amended return, but I kind of doubt it would make a difference.
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Old 01-06-2017, 04:14 PM   #32
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I've never filed early or even have that much of a refund or payment due but always get revised 1099s around the middle of March and don't like doing an amended return. I think wise planning in advance can reduce a lot of issues.
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Old 01-06-2017, 04:20 PM   #33
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I never get all the information I need until early February at the soonest and usually wait a couple of weeks to file to make sure I didn't forget about something coming in. But I did order TurboTax from Amazon just a few minutes ago. Still $39&change.

How does SS get the information to you? This is my first year taking SS so do they send a 1099R or something?
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Old 01-06-2017, 04:52 PM   #34
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Definitely not to be trusted. I have accounts at Fidelity and it shows the wrong information.

Do ANY of your investments in taxable accounts have Qualified Dividends for 2016? None of mine do, but I know the percentage of QDI will be above 70% eventually when they get this corrected.
+1.

85% of my dividends were Qualified in 2015 but Fidelity's website shows 100% non qualified in 2016.

The information cannot be trusted. I'll wait for the official 1099-DIV before I file.
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Old 01-06-2017, 04:59 PM   #35
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How does SS get the information to you? This is my first year taking SS so do they send a 1099R or something?
Your postal carrier will grace you with a Form SSA-1099.
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Old 01-06-2017, 05:17 PM   #36
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My first year of a combined ER and retirement. The net result is an excessive witholding on income and disbursements. Therefore I plan on filing a paper return with refunds applied to next years taxes.
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Old 01-06-2017, 05:47 PM   #37
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What's the rush? Only if you gave Feds too much to begin that I can see. Why would you do that?

Relax. I'm drinking another bottle tonight.
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Old 01-06-2017, 05:59 PM   #38
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Heck, I filed 2015 taxes a short time ago--10/15/2016. It's too early to think about last year's taxes. And boy, was I surprised on what income was reported on some ETF's I'd never touched.

I had to go to the IRS to get a printout that showed everything reported to them before completing my taxes.

We'll see if Fidelity's a little more efficient this year on getting my funds info together.

And to think I try to keep my business nice and simple in my retired years. I've found over $14K in healthcare expenses alone in the past year--and that's with a good Medicare Supplement.
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Old 01-06-2017, 07:17 PM   #39
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Fidelity defaults everything to non-qualified until they have been provided the official information. So you definitely do not want to use this information. But the split can be easily estimated from prior-year returns. My US stock ETFs are always 100% qualified. The internationals are a mix, but the percentage for each ETF is quite stable from year to year. I also estimate foreign tax credit using the ratio of prior-year credit to non-qualified dividends. This ratio is also quite stable from year to year, and thus quite reliable for estimates. I would never actually file a return until the 1099s are in-hand, but estimates are pretty straightforward. I doubt my final tax will vary by more than $100 vs what's in TurboTax right now.
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Old 01-06-2017, 07:26 PM   #40
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It will be up to 10 or 11 weeks until I receive the breakdown of foreign taxes paid, return of capital (if any), qualifying dividends vs non-qualifying.

But since I didn't have any taxes withheld, and don't owe anything, there is no rush. I'll file in April and collect a small refund based on DW splitting some pension income with me.
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