2016 Income Tax Status

[VFK57]

I like to file or rather to know what my numbers are as early as possible and purchased H&R Block software the day they issued it. However to file with the IRS you must have supporting documents like 1099 INT, 1099DIV etc. My broker sent me some forms for filing in February last year so if you have interest, dividends, cap gain you must wait at least till all documents arrive.

 

[Alan]

Even though I run the risk of having to file an amended return, I don't like to delay beyond early February since the risk of identity theft increases the longer you delay filing.

This is a real concern these days.

This year will be a split year for us having been tax resident in both the US and UK so I'll be filing for an extension early February.

 

[kcowan]

When expecting a refund (unusual) I file around the middle of March. Our taxes aren't due until Apr 30.

What do you do about tardy T-slips? I guess it is unusual as you said. I am expecting to pay a bunch this year. It will probably be the 29th just in case the technology fails on the 30th due to volumes. Then I will do an e-transfer a week later.

 

[ziggy29]

I have a bunch of tax stuff to deal with: my own tax return, my (now deceased) mother's return (she lived in two states in 2016), and the return for the living trust that I assumed trusteeship for upon her passing in October. (This is what I get for being relatively savvy about taxes and investing -- I handled her investing and taxes for 11 years after Dad passed away. No good deed goes unpunished!) Yep, a lot of work to do here....

 

[rodi]

I did a first cut at taxes in early Dec. using the 2015 turbo tax.
Then, when I got the 2016 version, I did another crack at a close estimate in late December (Christmas week). This allowed me to do my first Roth conversion with good confidence that I hadn't over converted.

I will do it all again with actual numbers in early February when I have all the documents. That's the version I'll file.

As soon as I'm done with our taxes I'll start on mother-in-laws. Hers are pretty straight forward: federal pension, SS, some interest from CDs.

 

[audreyh1]

Even though I run the risk of having to file an amended return, I don't like to delay beyond early February since the risk of identity theft increases the longer you delay filing.

We've started filing in late Feb rather than late March for the same reason. Although the IRS has closed some security holes this year, and we've kept on top of our IRS online accounts.

We'll owe, so it's not like I have to face a delayed refund.

 

[joesxm3]

Ouch. Gee thanks for this thread. I just spent most of the day working on my estimated taxes (stupid old d.i.y. Excel sheet method).

Since I stopped working in August, I was not sure how the half year would affect my withholding, plus I still had some stock sale capital gains to figure in. I did a "back of the napkin" estimate and sent in 1040-ES in September, but wanted to make sure I did not need to send in more.

I usually wait until April to do the taxes since I have been burned by revised tax info being sent at the last minute, so I am not used to going through this in January.

I had hoped to avoid AMT, but I missed by a smidge and had to do all those calculations as well.

I guess the good news is that it seems I will get a decent refund due to them scaring me into overpaying and a last minute decision to bulk up the charitable gift fund this year since it seemed that the charitable deduction would be against a higher tax bracket than next year's hoped for 15% bracket.

Now I can relax for a while. I think it is even money that I will probably still end up mailing my return on April 15th even though I have all the time in the world to get it finished sooner.

I had all summer to repair my mailbox before the snow plow hits it again, but I ended doing that last week after the first snow storm

 

[nash031]

I always file in late January or early Feb. I have had to amend one return in 18 years.


This year, I get to claim a child tax credit! Woo! And deduct 529 contributions from my state return, but not my wife's! Grumble.

Next year, I get to deduct payroll taxes paid. Boo.

The complexity of my tax returns seem to relate exponentially to my age.

 

[TrvlBug]

... ...

How does SS get the information to you? This is my first year taking SS so do they send a 1099R or something?

I just received my first Form SSA-1099 from SS this year. DH and I both started last year with him being on Medicare. His statement was very detailed with net deposit, deductions for Part B and Part D broken out.

I got excited thinking it was the form that finally tells me how much my 2017 SS benefits will be...no such luck! DH received his months ago. I will have to wait until the 3rd Weds of Jan.

 

[Danmar]

What do you do about tardy T-slips? I guess it is unusual as you said. I am expecting to pay a bunch this year. It will probably be the 29th just in case the technology fails on the 30th due to volumes. Then I will do an e-transfer a week later.

I only get a few slips because I keep my banking/investing to one institution. These are generally available in mid Feb online so I get them then. Have never had to refile. Actually, even if all slips were lost, I could reconstruct the whole thing in an hour or two. Getting a big refund this year, but with interest rates so low, doesnt give much incentive to file early.

Our taxes are really simple. Pension, divs, sometimes cap gains (but not this year) some medical expenses and charitable donations. No foreign income or assets. No tax credits claimed( other than for divs) or any other weird stuff. Could do it in an hour if I had everything.

 

[kcowan]

No tax credits claimed( other than for divs) or any other weird stuff. Could do it in an hour if I had everything.

The two things that I spend too much time on are
1. Medical expenses because DW gets to claim for both of us.
2. T1135

The last two years may have been exceptions. I sure hope so. The tax software does everything else. And when we get to be able to download the T-forms from the government site, it will be a breeze.

Already there is no need to be at home in April. Even the revenuers accept receipts by email.

 

[FIREd]

At least I am not expecting any K-1s this year, so I should be able to file a little bit earlier than usual. But I will still probably wait until late March. I already started working on my return though.

 

[Finance Dave]

Like many, I don't get too involved until all paperwork is in...and we are still working so that will be early Feb. I am preparing some of the worksheets for our rental business, as we have 5 houses and have to separate all expenses into various categories...so I spend about 10 hours doing all that work in January.


Going to Hawaii in mid Feb, so hope to have things handed in to the CPA by then. Don't do my own...we have several complexities.

 

[Danmar]

Don't do my own...we have several complexities.

Then you should change your "moniker".

 

[meierlde]

Of course if you own stocks in a brokerage account it is mid feb till you get the 1099s for the account. So one can not start till then.(I do enter info from 1099s as they arrive and also scan the 1099s into a folder as well)

 

[Finance Dave]

Then you should change your "moniker".

Finance and taxes are two different things. My moniker came from my job at Megacorp, which I "retired" from 4 years ago. I did mergers and acquisitions financial analysis and due diligence for large projects. Very different than doing your taxes.

 

[Pilot2013]

Since still working, it's easy. I take mine and DW's last paystub, remove the pretax amounts from totals to get taxable, then take last years Sched A as guestimate for this year plus exemptions and see what I owe, compare to what I paid, and hope I did it right and State and Fed come out pretty damn close to $0!

If not, I take a "better look' at the Sched A items....

 

[foxfirev5]

Finance and taxes are two different things. My moniker came from my job at Megacorp, which I "retired" from 4 years ago. I did mergers and acquisitions financial analysis and due diligence for large projects. Very different than doing your taxes.

Really? Arithmetic is arithmetic in my book. Just kidding, however I feel if you have the capability it is very important to understand the moving parts of your tax situation. Personally I've never had to pay a preparer a dime since I've repeatedly shown them that my paper returns are more accurate than what they produce.
Just today I had to call a vendor regarding a 1099S for timber sales. Wrong info regarding two separate invoices. One was a sale of timber, the other was actually a reimbursement for land damage which partially offset other losses for reclamation. I doubt a CPA would have caught it. While this is not a normal business transaction for me I took a couple of hours and researched it. You really need to be a micro manager of your affairs.

 

[Danmar]

Finance and taxes are two different things. My moniker came from my job at Megacorp, which I "retired" from 4 years ago. I did mergers and acquisitions financial analysis and due diligence for large projects. Very different than doing your taxes.

Ok if you say so. I would still think a "finance" guy might want to do his own taxes, but whatever.

 

[DrRoy]

My complete tax info is not usually available until mid to late Feb. I will file with the free Turbotax available through Fidelity.

 

[kcowan]

Really? Arithmetic is arithmetic in my book. Just kidding, however I feel if you have the capability it is very important to understand the moving parts of your tax situation. Personally I've never had to pay a preparer a dime since I've repeatedly shown them that my paper returns are more accurate than what they produce.

Ever since Turbotax (or whatever they called themselves then) came out in the 80s, I was into doing it. I said "What spreadsheets can possibly be more important than these?" It actually caused me to change some things for tax reasons. It took about 3 days then and about 1 day now. When I took over DWs finances, her accountant, bookkeeper and tax accountant had all overlooked several key deductions.

(Finance Dave should change his moniker to M&A Dave...) I agree that M&A has little to do with accounting and finance. It is skilled but a very different set.

 

[GrayHare]

When I took over DWs finances, her accountant, bookkeeper and tax accountant had all overlooked several key deductions.

My experience was similar. It's not that the accountants were sloppy but more that things are inevitably lost in communication. The cost of tax prep software all but disappears when compared to the savings realized by optimizing finances after seeing how various forms of income are taxed.

Per another thread, taxes are a large, perhaps the largest, outflow of funds, consequently even a little time spent learning about them can generate significant effective returns.

 

[RobbieB]

What I love about TT (or any other software I guess) is I don't have to do it all at once. As the info comes in (week by week and month by month) I can enter that info and put "TT' on the form so I know I entered it and wait for the next stuff to arrive.

No big piles of papers anymore -

 

[Souschef]

Not me

I spoke to my BIL, who used to work for the IRS. I had my year end statements, and asked if I should skip my last estimated payment. He said that in many cases the statements are wrong.

 

[audreyh1]

I skip my last (Jan 15) estimated tax payment if I'm very sure that I've already paid 90% of the taxes owed for the current year, and I already paid 3 equal installments at the correct times based on the prior year taxes.