Taxes are done
- TheCalvinator24
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Taxes are done
I used TurboTax online for the first time. It was free as a State Farm customer with an account at StateFarm.com
I'm getting back about $1600 more than I thought I would. Mainly because when I did a cursory scan I didn't calculate the amount I had withheld.
Once again, I am getting more money in a refund than I had withheld as Income Tax. I really like that Additional Child Tax Credit
I'm getting back about $1600 more than I thought I would. Mainly because when I did a cursory scan I didn't calculate the amount I had withheld.
Once again, I am getting more money in a refund than I had withheld as Income Tax. I really like that Additional Child Tax Credit
It is our choices that show what we truly are, far more than our abilities. —Albus Dumbledore
- TheConfessor
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Re: Taxes are done
You're welcome.TheCalvinator24 wrote:Once again, I am getting more money in a refund than I had withheld as Income Tax.
- Sir_Galahad
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- TheCalvinator24
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Re: Taxes are done
I'm pretty sure this is the last time I will experience that phenomenon. We won't be adding a 5th child this year, and my income has gotten high enough that the Child Tax Credit won't pay for the entire tax burden.TheConfessor wrote:You're welcome.TheCalvinator24 wrote:Once again, I am getting more money in a refund than I had withheld as Income Tax.
It is our choices that show what we truly are, far more than our abilities. —Albus Dumbledore
- PlacentiaSoccerMom
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Re: Taxes are done
Your welcome from me as well.TheConfessor wrote:You're welcome.TheCalvinator24 wrote:Once again, I am getting more money in a refund than I had withheld as Income Tax.
We don't even get the rebate.
- PlacentiaSoccerMom
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Re: Taxes are done
Child Tax Credit, what's that. We don't get anything beyond the standard $3,400 for our kids.TheCalvinator24 wrote:I'm pretty sure this is the last time I will experience that phenomenon. We won't be adding a 5th child this year, and my income has gotten high enough that the Child Tax Credit won't pay for the entire tax burden.TheConfessor wrote:You're welcome.TheCalvinator24 wrote:Once again, I am getting more money in a refund than I had withheld as Income Tax.
- kayrharris
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No tax rebate here either. I did sign some kind of tax form today that entitles us to a $2400 refund from some kind of long term contract - I don't know what. I'll take the refund, but I'm sure they'll probably consider it taxable income next year.
I know the State of Alabama taxes us on any type tax refund we may have received from the year before. Ridiculous to tax us on money on which we've already paid taxes.
I know the State of Alabama taxes us on any type tax refund we may have received from the year before. Ridiculous to tax us on money on which we've already paid taxes.
"An investment in knowledge pays the best interest. "
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- TheCalvinator24
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- tanstaafl2
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I believe "rebate" is what the IRS does before they stick another hook in my mouth to reel me in and cut out another pound or two of flesh.
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Some people are like a Slinky. They are not really good for anything, but you still can't help but smile when you shove them down the stairs...
~tanstaafl2
Nullum Gratuitum Prandium
Ne Illegitimi Carborundum
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- Appa23
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Re: Taxes are done
Why are you having anything withheld? If you know that you will not owe taxes, then why not keep the money all year rather than lending it to the Government at no interest?TheCalvinator24 wrote:I used TurboTax online for the first time. It was free as a State Farm customer with an account at StateFarm.com
I'm getting back about $1600 more than I thought I would. Mainly because when I did a cursory scan I didn't calculate the amount I had withheld.
Once again, I am getting more money in a refund than I had withheld as Income Tax. I really like that Additional Child Tax Credit
[We usually are within $50 either way of withholding an amount equal to our federal tax liability, after the tax credits. We do get a good refund from the state, but I can either either calculate exemptions to match federal liability or state liability.]
- silverscreenselect
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If you itemize your deductions and get a refund, then a refund of your state tax is considered taxable income the next year for federal and I would presume most state tax purposes as well. The rationale is that you are getting money back that you deducted the year before. However, if you take a standard deduction then it's not considered federal taxable income.kayrharris wrote:I know the State of Alabama taxes us on any type tax refund we may have received from the year before. Ridiculous to tax us on money on which we've already paid taxes.
Since you can't deduct federal taxes in the first place, taxing a refund is taxing money that was taxed the first time around and I'm not sure how they can justify that. It seems like there also could be some Supremacy Clause issues here as well.
- TheCalvinator24
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I spoke too soon. The IRS rejected my e-filing. It seems that TT online omits any cents that you enter, so when I entered last year's AGI for an "electronic signature" it doesn't match what the IRS has on file for me. Apparently, there's no way to "fix" this, so I'll have to print out some form and mail it in.
It is our choices that show what we truly are, far more than our abilities. —Albus Dumbledore
- gsabc
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I've never had this problem with TT. Seems odd. Did you try just entering the dollar portion of your AGI?TheCalvinator24 wrote:I spoke too soon. The IRS rejected my e-filing. It seems that TT online omits any cents that you enter, so when I entered last year's AGI for an "electronic signature" it doesn't match what the IRS has on file for me. Apparently, there's no way to "fix" this, so I'll have to print out some form and mail it in.
I just ordered chicken and an egg from Amazon. I'll let you know.
- MarleysGh0st
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- PlacentiaSoccerMom
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The State of Oregon may be similar to the State of Alabama. I know when I do my mother's taxes in Oregon that you get a lump sum to write off as a standard deduction and in addition to that, you can write off your Federal taxes paid, up to $5,500. So if you get a refund, they consider it income.silverscreenselect wrote:If you itemize your deductions and get a refund, then a refund of your state tax is considered taxable income the next year for federal and I would presume most state tax purposes as well. The rationale is that you are getting money back that you deducted the year before. However, if you take a standard deduction then it's not considered federal taxable income.kayrharris wrote:I know the State of Alabama taxes us on any type tax refund we may have received from the year before. Ridiculous to tax us on money on which we've already paid taxes.
Since you can't deduct federal taxes in the first place, taxing a refund is taxing money that was taxed the first time around and I'm not sure how they can justify that. It seems like there also could be some Supremacy Clause issues here as well.
It's similar to when I write off my State Taxes for California on Schedule A, then receive a refund of part of that amount.
- TheCalvinator24
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All TT is showing is the dollar portion. I think that's the problem. Last year, I did my taxes by hand and kept all the cents throughout.gsabc wrote:I've never had this problem with TT. Seems odd. Did you try just entering the dollar portion of your AGI?TheCalvinator24 wrote:I spoke too soon. The IRS rejected my e-filing. It seems that TT online omits any cents that you enter, so when I entered last year's AGI for an "electronic signature" it doesn't match what the IRS has on file for me. Apparently, there's no way to "fix" this, so I'll have to print out some form and mail it in.
It is our choices that show what we truly are, far more than our abilities. —Albus Dumbledore
- Bob Juch
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I had the same problem when I went from my accountant to using TaxAct Online. Yes, it's the cents. The IRS should ignore that; don't blame TT.TheCalvinator24 wrote:All TT is showing is the dollar portion. I think that's the problem. Last year, I did my taxes by hand and kept all the cents throughout.gsabc wrote:I've never had this problem with TT. Seems odd. Did you try just entering the dollar portion of your AGI?TheCalvinator24 wrote:I spoke too soon. The IRS rejected my e-filing. It seems that TT online omits any cents that you enter, so when I entered last year's AGI for an "electronic signature" it doesn't match what the IRS has on file for me. Apparently, there's no way to "fix" this, so I'll have to print out some form and mail it in.
I may not have gone where I intended to go, but I think I have ended up where I needed to be.
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- Douglas Adams (1952 - 2001)
Si fractum non sit, noli id reficere.
Teach a child to be polite and courteous in the home and, when he grows up, he'll never be able to drive in New Jersey.
- TheCalvinator24
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Well, I agree that the IRS should be more flexible, but I also believe that TT should include the cents if I typed them in. There's blame to go around.Bob Juch wrote:I had the same problem when I went from my accountant to using TaxAct Online. Yes, it's the cents. The IRS should ignore that; don't blame TT.TheCalvinator24 wrote:All TT is showing is the dollar portion. I think that's the problem. Last year, I did my taxes by hand and kept all the cents throughout.gsabc wrote: I've never had this problem with TT. Seems odd. Did you try just entering the dollar portion of your AGI?
It is our choices that show what we truly are, far more than our abilities. —Albus Dumbledore
- tlynn78
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.Well, I agree that the IRS should be more flexible, but I also believe that TT should include the cents if I typed them in. There's blame to go around
Do you guys treat 'instructions' the same way you treat 'directions'? I used TT, and distinctly remember something in the instructions about not putting in cents....
I'm just sayin'..
t.
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- MarleysGh0st
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I think Cal's point is that the IRS gives you the option of entering in cents or rounding off to the nearest dollar, so TT shouldn't force you to use the round off method. It shouldn't be that difficult for them to program in support for those two decimal places.tlynn78 wrote:.Well, I agree that the IRS should be more flexible, but I also believe that TT should include the cents if I typed them in. There's blame to go around
Do you guys treat 'instructions' the same way you treat 'directions'? I used TT, and distinctly remember something in the instructions about not putting in cents....
I'm just sayin'..
t.
- TheCalvinator24
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It doesn't matter what TT's instructions are. In order to electronically sign the return, I have to enter my AGI from last year. That is, the amount listed on my 2006 return. So, the IRS won't accept the e-filing unless the AGI matches exactly. To match exactly requires the cents. TT won't include the cents; therefore, the flaw is with TT, not with the user.tlynn78 wrote:.Well, I agree that the IRS should be more flexible, but I also believe that TT should include the cents if I typed them in. There's blame to go around
Do you guys treat 'instructions' the same way you treat 'directions'? I used TT, and distinctly remember something in the instructions about not putting in cents....
I'm just sayin'..
t.
FTR, I didn't see any "instructions" online.
It is our choices that show what we truly are, far more than our abilities. —Albus Dumbledore
- Bob78164
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But you pay AMT, if memory serves, so you may not receive a tax benefit from the portion of your state taxes that was withheld and refunded. If that's the case, then the refund isn't taxable.PlacentiaSoccerMom wrote:It's similar to when I write off my State Taxes for California on Schedule A, then receive a refund of part of that amount.
Let me give an example to make it concrete. Assume that in 2006 you had $10,000 in state taxes withheld, and you received a $1000 refund in 2007. Thanks to AMT (for purposes of which you don't get credit for state taxes), your 2006 federal tax liability would have been exactly the same if you had only had $9000 in state taxes withheld. Then you didn't get a tax benefit from the last $1000, so the refund you received in 2007 isn't taxable. --Bob
"Question with boldness even the existence of a God; because, if there be one, he must more approve of the homage of reason than that of blindfolded fear." Thomas Jefferson
- peacock2121
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Re: Taxes are done
I don't even mind supporting you.TheCalvinator24 wrote:I used TurboTax online for the first time. It was free as a State Farm customer with an account at StateFarm.com
I'm getting back about $1600 more than I thought I would. Mainly because when I did a cursory scan I didn't calculate the amount I had withheld.
Once again, I am getting more money in a refund than I had withheld as Income Tax. I really like that Additional Child Tax Credit
- peacock2121
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Made me laughtlynn78 wrote:.Well, I agree that the IRS should be more flexible, but I also believe that TT should include the cents if I typed them in. There's blame to go around
Do you guys treat 'instructions' the same way you treat 'directions'? I used TT, and distinctly remember something in the instructions about not putting in cents....
I'm just sayin'..
t.
and roll my eyes
and curl my lip
- TheCalvinator24
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Okay, I went back and undid the electronic signature. I can still e-file (hopefully), but I'll have to send in Form 8453-OL as a signature form.
I hope I'll still get the refund as quickly. Next year, this problem should not happen because TT will carry forward everything from this year.
I hope I'll still get the refund as quickly. Next year, this problem should not happen because TT will carry forward everything from this year.
It is our choices that show what we truly are, far more than our abilities. —Albus Dumbledore