2016 Income Tax Status

[MichaelB]

Quote:

Originally Posted by Fedup So I have a question for anyone here. How to file extension for one of my daughters. In the past, I've filed extension but I do know roughly how much I owe and mailed in the money. In my kid's case, her CPA for her corporation is late, she changed CPA from last year, so I don't have a clue as to what amount to pay in, she is still waiting for her employee's statement. She paid estimated tax every year, never owed anything. Do I just file the form with zero amount and send it in.

To avoid underpayment penalties, you should pay at least 90% of last year's tax liability. If her income is high enough, she would need to pay 100%. If there is a balance due she will still be liable for late payment and interest, which can get expensive.

Has her total income or deductions in 2016 changed much vs 2015?

[Fedup]

Quote:

Originally Posted by MichaelB To avoid underpayment penalties, you should pay at least 90% of last year's tax liability. If her income is high enough, she would need to pay 100%. If there is a balance due she will still be liable for late payment and interest, which can get expensive. Has her total income or deductions in 2016 changed much vs 2015?

I don't know, I have to ask her. She is New Orleans for another bachelorette party. But I think her tax changed from last year. She was not an S-corp last year, her CPA recommended her company to be an S-corp so her tax situation is different this year.

[MichaelB]

Quote:

Originally Posted by Fedup I don't know, I have to ask her. She is New Orleans for another bachelorette party. But I think her tax changed from last year. She was not an S-corp last year, her CPA recommended her company to be an S-corp so her tax situation is different this year.

Then disregard my earlier post, which assumed this was simple personal income tax. Her tax accountant should determine how to proceed.

[Fedup]

Quote:

Originally Posted by MichaelB Then disregard my earlier post, which assumed this was simple personal income tax. Her tax accountant should determine how to proceed.

Her tax accountant only does her corporation. I do her personal income tax. This is to save her $300.

[gerntz]

Quote:

Originally Posted by gerntz Filed Saturday. Got LLC K-1's Tuesday, finished Wednesday & reviewed everything Friday. We didn't make as much from the LLC as I'd predicted, so grossly overpaid taxes and under withdrew from IRA's. Not the end of world. Did find $500 worth of deductions I'd missed in the review.

E-filed with TT 3.25 & got Fed refund 4.3 & State 4.4. Both PDQ IMO.

[sengsational]

Today I saw that the IRS deposited the check I sent in with my 1040-X.

As a reminder, I filed in early January because the IRS held so much of my cash, and I thought I had all of the accurate numbers.

The biggest number I had wrong was the cost of the second lowest silver plan. I spent quite a while isolating the number, but since I only started looking after open enrollment began for 2017, I couldn't use hc.gov to get the number. I settled on a number that was about $50 off (in my favor), thus, the check I had to write.

The other one was a situation where the 1099-DIV was $30 too low on the main line, but it was also $30 too low on the foreign tax. In other words, correcting that didn't make any difference to the bottom line.

This time, when enrolling, I took a screen shot of the second lowest silver plan. But I don't plan to file early next year because I took money out in December. Even though it had that annoying mandatory withholding, I've already got that money in my account.

[RobbieB]

Hehe, that's why I always wait till the end of March -

[gerntz]

Quote:

Originally Posted by RobbieB Hehe, that's why I always wait till the end of March -

Clearly you're not worried about the identity theft so many on here were. Me neither.

[AllDone]

I do taxes as a volunteer for the AARP and one of the perks is doing one's own taxes and e-filing for free. Done and paid the state, waiting for the federal refund.

[Texas Proud]

Quote:

Originally Posted by sengsational Today I saw that the IRS deposited the check I sent in with my 1040-X. As a reminder, I filed in early January because the IRS held so much of my cash, and I thought I had all of the accurate numbers. The biggest number I had wrong was the cost of the second lowest silver plan. I spent quite a while isolating the number, but since I only started looking after open enrollment began for 2017, I couldn't use hc.gov to get the number. I settled on a number that was about $50 off (in my favor), thus, the check I had to write. The other one was a situation where the 1099-DIV was $30 too low on the main line, but it was also $30 too low on the foreign tax. In other words, correcting that didn't make any difference to the bottom line. This time, when enrolling, I took a screen shot of the second lowest silver plan. But I don't plan to file early next year because I took money out in December. Even though it had that annoying mandatory withholding, I've already got that money in my account.

I do not know where it is, but on the .gov site there is a page that will calculate the second lowest cost silver plan for you... just plug in the BD of the people on the plan... I have used it the past two years...


For this year (2017 taxes) I decided to get the credit monthly so I think they will be sending me that info... at least I hope...

[Fedup]

It's officially done. Everything is printed and waiting for my husband's signature. We will mail it today when we go out.

[38Chevy454]

Finished up mine today and e-filed. Now just send the two checks to fed and state this week. I also prepare a pretty simple trust tax return for a trust I am trustee for. I do those on paper and mail in, since I don't have the TT version that does these.

[meierlde]

Quote:

Originally Posted by 38Chevy454 Finished up mine today and e-filed. Now just send the two checks to fed and state this week. I also prepare a pretty simple trust tax return for a trust I am trustee for. I do those on paper and mail in, since I don't have the TT version that does these.

Note that Turbo Tax business does 1041s however at about at about $103 at Amazon you have to decide if it is worth it.

[Souschef]

Quote:

Originally Posted by AllDone I do taxes as a volunteer for the AARP and one of the perks is doing one's own taxes and e-filing for free. Done and paid the state, waiting for the federal refund.

I am also, but I use TT at home and it carries everything forward, so much less input from me.
It is worth it to me to pay for the state that to have to input everything.

[athena53]

Quote:

Originally Posted by lem1955 Last year, after I completed my tax return using Turbo Tax I took it to a CPA and asked for advice, suggestions, pointing out errors. I was pleased to learn I had done a pretty good job. There were a few suggestions that helped get state income distributed more accurately between the states and probably reduced my tax in 2016. It was a pricey lesson but enabled me to feel more confident continuing to do my taxes myself.

In 2014 I got large bills from the state and the Feds for two different years- "perfect storm" of several blunders. Some easily fixable (since I hadn't attached my State B return to my State A return, State A gave me zero credit for taxes paid to State B; my former employer had correctly classified an IRA rollover as tax-free but left the "Taxable amount" field blank so the IRS decided it was all taxable). Others were blunders made when I attempted to do State A taxes using manual forms and Excel instead of paying to download software for a second state.

Long back story, but... I found a good CPA who helped me straighten it all out and asked if he'd be interested in reviewing future returns. He said he'd actually have to go through the full process of preparing it and charge accordingly. Is that what yours did? I guess I can understand why he doesn't want to just go through paper forms generated by a software program over which he has no control, but didn't want to have to pay him to essentially do it all over again. Up till then (and since then) I had a pretty good track record doing my own returns.

[lem1955]

Quote:

Originally Posted by athena53 In 2014 I got large bills from the state and the Feds for two different years- "perfect storm" of several blunders. Some easily fixable (since I hadn't attached my State B return to my State A return, State A gave me zero credit for taxes paid to State B; my former employer had correctly classified an IRA rollover as tax-free but left the "Taxable amount" field blank so the IRS decided it was all taxable). Others were blunders made when I attempted to do State A taxes using manual forms and Excel instead of paying to download software for a second state. Long back story, but... I found a good CPA who helped me straighten it all out and asked if he'd be interested in reviewing future returns. He said he'd actually have to go through the full process of preparing it and charge accordingly. Is that what yours did? I guess I can understand why he doesn't want to just go through paper forms generated by a software program over which he has no control, but didn't want to have to pay him to essentially do it all over again. Up till then (and since then) I had a pretty good track record doing my own returns.

No, my CPA didn't go through the whole process again. I didn't give her all the source docs so she would have have been unable to do so.

[DrRoy]

We ran the #'s in mid Feb when all the info was in. Used Turbotax Deluxe free from Fidelity. Owed $ so sat on it for a month. Filed in late March because we had a trip in early April and didn't want to forget, plus you get squat on cash these days.

[mrfeh]

Received refunds from both the feds and state today, 1 week after e-filing.

[RobbieB]

Federal refund arrived in snail mail today.

Not bad, e-filed 3-27 so refund in 2 weeks the slow way.

[harley]

I'm cranking! Downloaded TT today, and found my folder with all the paperwork. Nothing can stop me now!