Octopus Overlords

MHS wrote:

Isgrimnur wrote:

MHS wrote:Singly, we'd each only be in about the 15% tax bracket. Together, it shoots way up.

I find it hard to believe that each of you earn less than $36,900.

Hmmm. You are correct. TurboTax estimator gave me that amount as my effective tax rate when I only had me listed but that's definitely not right.

Effective tax rates and brackets are different. I've definitely been paying 25% on a good chunk of my earnings since 2008, but with the standard and student loan deductions, my effective rate is below even where the 15% bracket sits.

El Guapo wrote:

ImLawBoy wrote:On the plus side, we have two new (very cute) deductions this year!

I'll bet you do.

2. Paying Your Lover. In Bruce v. Commissioner, Bruce hired his live-in girlfriend to find furniture, oversee repairs at rental properties, and to run his personal household. The IRS said deducting her pay was not legit, but Bruce went to Tax Court and won. The court said $2,500 of the $9,000 he paid her was a business expense, but paying for her housekeeping chores was nondeductible.

Did you mean to copy the first item in that list?

1. Breast Augmentation. Cosmetic surgery costs are usually non-deductible, but an exotic dancer named Chesty Love tested this rule. If you want bigger tips, you go bigger, she reasoned. So she decided to go way bigger, shelling out for breast implants that would bloat her bra size to 56-FF. When she wrote off the bill, the IRS said it was nondeductible cosmetic surgery. But in Hess v. Commissioner, the Tax Court allowed tax benefits, allowing her to claim the implants as depreciable assets, a type of stage prop.

I meant to copy both, seeing as how you are deducting the augmented breasts of your live-in lover.

RunningMn9 wrote:I did prelim taxes yesterday. Looks like the Feds are going to want an extra $1700. Savages.

Imagine it without the solar credit. Yikes.

LordMortis wrote:I don't even want to know how much you must have paid out of pocket to qualify for medical tax deductions. I don't make a shitton of money and I've had years where I've spend over $5000 out of pocket, dutifully saved all of my paperwork, and none of it qualified for deduction as I had to hit something like 10% of my income to claim any of it.

I don't know the numbers, but we have insanely high medical costs (even with pretty good insurance). My wife does our taxes (I get too easily frustrated), and she saves all of our medical related receipts. I know it helps us every year.

On selling his company, my former boss wrote some pretty sizable checks (2x annual salary, in one lump sum) to several of us employees who have been here since early days.

I have no idea what to expect this year in terms of how that is going to affect us, but I imagine we will lose quite a few deductions that were previously possible.

I am certainly not complaining, as it was good and welcome fortune obviously, and the generosity of my ex-boss to do that, but it's interesting how you get "penalized" for that, policy assuming perhaps, that that is your typical income, as opposed to a one off thing, which in our case, it certainly was.

He mentioned something about the withholding at the time, and considering the sum of the check, vs. what was deposited I HOPE to get a sizable return, but who knows how it will balance out.

It may be a good idea to defer listing charitable contributions this year? IIRC, you can write those off at least one year after actually making them.

Plus, we get a deduction for the wheelchair accessible conversion done to the minivan we bought this year. Not sure if that qualifies as a medical expense or not, but the conversion itself was something like $27K.

LordMortis wrote:I don't even want to know how much you must have paid out of pocket to qualify for medical tax deductions. I don't make a shitton of money and I've had years where I've spend over $5000 out of pocket, dutifully saved all of my paperwork, and none of it qualified for deduction as I had to hit something like 10% of my income to claim any of it.

I had over $12,000 in medical expenses last year and didn't qualify. I told my wife she can't have another baby until she pays this one off.

RunningMn9 wrote:

LordMortis wrote:In increased my withholding from 0 to insane last year in hope that I won't owe thousands this year like I have every year for the last decade or so.

I can only hope that you phrased this poorly. I assume you mean that your are withholding at 0 deductions, but are taking out an insane amount extra per pay period?

Because if you increased your deductions from 0 to some insane number...well...

I had nothing more (less?) for to claim take than 0, so I'm giving them more money than just claiming 0. In the past they were saying "If we foresee taxing you the maximum possible for your wage then you will still owe us about $2,000 every year" and that was including mortgage deductions. I have no more mortgage deductions as of last August, so I bit the bullet and started telling them to take even more money from me than just claiming 0. To me, that insane.

pr0ner wrote:Not even close to being ready to do my taxes yet, as I'm waiting on at least 3 forms.

Anyone using TurboTax this year? Is everything on the internet true that you need Premier and not Deluxe now to get Schedule D stuff done?

See my link above.

Edit:

http://www.bloomberg.com/bw/articles/20 ... -turbotax-

Still researching the real costs but probably not today.

I used H&R Block online the past couple years, and I'll probably use it again. My taxes aren't *super* complicated - house, kids, mutual funds, so the question is whether I try to save a few bucks using TaxACT. But H&R Block also has the incumbent advantage of carrying information over from my previous return.

Yeah, I've seen all the stuff on the internet. Was hoping for a first hand account, but it's probably too early for most people who'll be filing a Schedule D.

Ask me around the 1st of April. I might have some idea by then. No idea what to expect since it mostly hinges on what my wife's investment advisor has done over the course of the year.

El Guapo wrote:I used H&R Block online the past couple years, and I'll probably use it again. My taxes aren't *super* complicated - house, kids, mutual funds, so the question is whether I try to save a few bucks using TaxACT. But H&R Block also has the incumbent advantage of carrying information over from my previous return.

Yep, they win out every year as my desire to spend as little time as possible on this chore exceeds my desire to save a few $$$.

A year and a half ago I changed my witholdings from like 2 to 8 because we'd get so much money back in the end. I rather have the $$$ upfront to deal with the monthly costs. The plan was to do that temporarily and then push it back down the next year. Well I never did that so we weren't sure if I'd be oweing money at the end. Turns out I was still ahead of the game getting about $500 back before inputting anything else.

We moved last year and sold a house, that put us in the $1400 range for a refund. Then I inputted Erin's 1 of 2 W-2 and since she doesn't have federal or state taxes taken out (don't ask) our refund is now $330 with Fed, and about $250 with State. Now I'm just waiting on her 2nd W-2. Was hoping to be in the $1,000 range to help pay off the fridge we were forced to buy.

It may help everyone in this thread to know that, now that I work for the federal government, you are all contributing in a small way to my livelihood. So sure, filing taxes is a pain, and it's expensive, but you are helping ensure the livelihood of El Guapo. Doesn't that make it all worthwhile?

Where'd we leave the pitchforks?

El Guapo wrote:It may help everyone in this thread to know that, now that I work for the federal government, you are all contributing in a small way to my livelihood. So sure, filing taxes is a pain, and it's expensive, but you are helping ensure the livelihood of El Guapo. Doesn't that make it all worthwhile?

I prefer to think of my capital loss writeoffs as coming out of your lunch money.


By the way, what changed from last year to this year? I'm getting all my tax documents way early. 1099s, W2, etc.

LawBeefaroni wrote:By the way, what changed from last year to this year? I'm getting all my tax documents way early. 1099s, W2, etc.

Eat me.

El Guapo wrote:It may help everyone in this thread to know that, now that I work for the federal government, you are all contributing in a small way to my livelihood. So sure, filing taxes is a pain, and it's expensive, but you are helping ensure the livelihood of El Guapo. Doesn't that make it all worthwhile?

Right under the check box for contributing $3 to the presidential campaign fund is a box to check whether we should continue funding of federal El Guapos.

Should he relocate to the capital, he would be the new ElGuapoDC.

Isgrimnur wrote:Should he relocate to the capital, he would be the new ElGuapoDC.

Someone should really should start emailing ElGuapoDC and warning him, assuming he hasn't been missing all these years by design.

Both of the other Guapos disappeared in 2008. I sense a hidden coup.

Isgrimnur wrote:Both of the other Guapos disappeared in 2008. I sense a hidden coup.

I'm not hiding.

Isgrimnur wrote:Both of the other Guapos disappeared in 2008. I sense a hidden coup.

On advice of counsel, I am declining to respond to this post.

pr0ner wrote:Yeah, I've seen all the stuff on the internet. Was hoping for a first hand account, but it's probably too early for most people who'll be filing a Schedule D.

The Intuit website says that Schedule D is only available on Premiere and higher.

wonderpug wrote:

pr0ner wrote:Yeah, I've seen all the stuff on the internet. Was hoping for a first hand account, but it's probably too early for most people who'll be filing a Schedule D.

The Intuit website says that Schedule D is only available on Premiere and higher.

Sooooooo stupid.

I may be leaving TurboTax for H&R Block.

pr0ner wrote:

wonderpug wrote:

pr0ner wrote:Yeah, I've seen all the stuff on the internet. Was hoping for a first hand account, but it's probably too early for most people who'll be filing a Schedule D.

The Intuit website says that Schedule D is only available on Premiere and higher.

Sooooooo stupid.

I may be leaving TurboTax for H&R Block.

I just made that switch, and so far H&R Block seems just as easy to use as TurboTax has been for me the last decade+. If you stuck a TurboTax logo at the top I don't know if I could have told you if I was on different software or if TurboTax had just had a UI change. Importing my 2013 TurboTax file was also no issue at all.

pr0ner wrote:

wonderpug wrote:

pr0ner wrote:Yeah, I've seen all the stuff on the internet. Was hoping for a first hand account, but it's probably too early for most people who'll be filing a Schedule D.

The Intuit website says that Schedule D is only available on Premiere and higher.

Sooooooo stupid.

I may be leaving TurboTax for H&R Block.

Being my first year filing a Schedule D, I am probably right there with you. I still have to research the total pricing.

Edit:

H&R Block:


$29.99
$36.99 per state filed
http://www.hrblock.com/online-tax-filin ... hoose.html

Not sure how they import my turbotax as I filed online last year, so I assume importing won't work. Also can't find out how much it costs to file my state return.

TaxAct

$19.99

http://www.taxact.com/

All inclusive. No importing of my past data.

Tubo Tax

https://turbotax.intuit.com/personal-taxes/

Premier $54.99
Price per state $36.99*

Claims are there are no additional filing fees. My memory was there were charges for state (and possibly federal) based on using direct deposit/withdraw.


...


So anyone use TaxAct? Does it walk you through your taxes with a UI understandable by normal people as well? This is particularly important this year because 2014 was the first time I ever sold securities, so I have no idea what I am doing.... apparently with a Schedule D...

You should have made your decision back on Jan 1st where H&R Block was $14.99 for the deluxe version.
Last year I got it for free I believe.

LawBeefaroni wrote:

El Guapo wrote:It may help everyone in this thread to know that, now that I work for the federal government, you are all contributing in a small way to my livelihood. So sure, filing taxes is a pain, and it's expensive, but you are helping ensure the livelihood of El Guapo. Doesn't that make it all worthwhile?

I prefer to think of my capital loss writeoffs as coming out of your lunch money.


By the way, what changed from last year to this year? I'm getting all my tax documents way early. 1099s, W2, etc.

Lucky maybe as I have yet to get a single 1099. I can never file early anyway though as I have parts of two businesses and so must wait for the accountants to finish with those.

As an aside I just did my companies w-2s today. They are due out by the end of the month.

I fill out the Illinois tax forms myself. I use a program for the Federal returns so I don't miss any limitations, but I also get to prepare my wife's S Corporation return.

Scuzz wrote: As an aside I just did my companies w-2s today. They are due out by the end of the month.

A couple of years ago I had trouble logging into the SocSec website and had to request a password reset...which they do by snail mail. When the letter finally came, their code didn't work. I was still locked out so I had to ring them up and ask for help. The fellow on the telephone was baffled. He could only reset the password by issuing another letter of the type that had just failed. I would have to create a new account...which I couldn't do because my EIN is permalinked to the broken one, and he couldn't delete it. So he asked if I had any employees.

Well, I decided that my wife technically works for Kraken Enterprises. I was able to create a new login under her name and complete my W-2. The telephone guy assured me that I'd be able to create a new account under my own name next year -- which is to say, this year.

Nope, still munged (which they don't tell you until you've gone through the multiscreen creation process). I have to log in as my wife forevermore. And because SocSec resets passwords after 30 days, "she" has to reapply to be a company agent each time. Which kicks out a snail-mail verification letter, much to her amusement.

Issuing my own W-2 is a pain in the ass if something goes wrong because their computer system is stuck in the '80s.

RunningMn9 wrote:I did prelim taxes yesterday. Looks like the Feds are going to want an extra $1700. Savages.

I know the feeling. Owe $1234 this year. Got back $81 last year. Luckily state return will pay half that.

El Guapo wrote:It may help everyone in this thread to know that, now that I work for the federal government, you are all contributing in a small way to my livelihood. So sure, filing taxes is a pain, and it's expensive, but you are helping ensure the livelihood of El Guapo. Doesn't that make it all worthwhile?

Me too, So I pay in that $1234 and get it back in the next paycheck....

Long term gains, short term gains, either way they weren't very much gains. Still waiting on about four different pieces of paperwork before I can file for the wife and I this year.

Zarathud wrote:I fill out the Illinois tax forms myself. I use a program for the Federal returns so I don't miss any limitations, but I also get to prepare my wife's S Corporation return.

The IL form is simple, and I should do this, but it's convenient to have it available as needed on HR Block, so I just spend the money on it.

Intuit apologizes and offers $25 refund http://www.bizjournals.com/kansascity/n ... omers.html

em2nought wrote:Intuit apologizes and offers $25 refund http://www.bizjournals.com/kansascity/n ... omers.html

I switched to H&R Block software this year, and not because I needed those forms in TurboTax but HR Block was $10 cheaper and it was wrong on Intuit to stealthily take away those forms and catch customers by surprise. I will say I liked TurboTax SW interface & layout better than HR Blocks though.

I'm thinking of switching to H&R block this year. I have been using turbotax for the last 10 years or so, but paying $90 (to go to 'premier' to get one form is puppies. even with their $25 rebate - which you have to give them your SS# online to get. F that.

The prices LM quoted are true, but F that. the reason I liked turbotax was I could gt the fed + 1 state, file fed electronically (free) and print the state and mail it in. $0.48 as opposed to $20 state electronic file.

$37 to file the state is such a load of crap. I know that is for doing everythign online, but I would rather go "old school" get the disk and do it on my HDD. I saw on amazon H&R block has the disc (Fed + 1 state) for like $34? IIRC. I don't want to have to file electronically for exorbitant prices. $0.48 is fine by me.

We usually have to pay in a bit, because we are in lower tax brackets individually, but combined we jump to the next bracket, which bends us over, even with the worksheet of zero dependents + extra$$. This year we are going to get reamed by the state of NC as well as the wonderful governor decided all child tax credits were of no use and eliminated them, plus anything that would help people with children. There was an article in Money or somesuch that boiled down to - given the same income for two couples (say $50K) the couple with children will pay more taxes due to the elimination of credits and elimination of deductions for children.

oof. Plus we sold a house and bought a house in Oct of last year, (kind of broke even on the house sale) so I don't know how this will complicate things. Even with a higher mortgage adn higher interest, I don't think it will help us.

So, the short of it, Is everyone who switched from turbotax to H&R block happy with H&R? Guapo?

Sorry for the LM rant

Yeah I'm happy with H&R Block. My experiences with them (at least two previous filings, possibly three) are pretty consistent with my experiences with TurboTax before. The interface is fine, everything seems reasonably intuitive, no audits yet.

Like Jeff V I am always tempted to file state forms myself to avoid the state fees, but laziness and convenience has trumped frugality so far.