Taxes are done!

[Lassr]

Ya it's super easy to do most taxes. I probably should just be using free software as mine are so simple.

I probably could do mine that way too but i wait for the H&R Block black Friday deal on Amazon and get the tax software for like $2o to $25

[Kraken]

I done forked up. Without going through all the twists and turns that got me here, I screwed up my Login.gov account, which one needs to access any government website. I reconstructed it but now have to wait for a paper authorization letter to arrive in 15-45 days. That means I can't access Business Services Online to report my wages and create my W-2 before the 1/31 deadline. So my only recourse is to use paper forms and mail the appropriate copy to the government. As long as it's postmarked by 1/31 I'll be OK. There are penalties if it isn't on time.

On the advice of the BSO's help desk, I called the IRS to request the forms, but their phone tree disconnected me when transferring me to the forms department. Tried it twice with the same result, so it wasn't a fluke. The forms are available from Staples for the low low price of $26, which is supposed to include free e-filing. I'll pick them up tomorrow and see if I can figure out what to do with them.

This has already turned into a far bigger hassle than it should be, and I ain't done with it yet.

[naednek]

Just got my w2. Still waiting on the wife's. So far 2k back, but it usually goes down when I enter in the wife's. Still need to the rest.

[Kraken]

I realized that I could bypass the Login.gov registration that I screwed up by using ID.me instead, so I created an account there. It took the better part of an hour because I had to wait for a video call verification (because I was using my laptop, not my phone). Finally got that straightened away, successfully logged into Business Services Online, requested permission to enter my wage report and generate my W-2...and found out that I have to wait for them to snail-mail me an authorization code.

Good grief.

Well. There's at least a chance that I'll receive it before 1/31 and be able to enter my info. If I had waited for the Login.gov authorization letter, that would have only gotten me as far as requesting the BSO authorization. So it's progress. Now the question is, do I pick up the $26 package from Staples and hope that I can use it to e-file? Or do I wait for BSO? It would be easy to decide if I knew what the penalty is for late filing -- if it's less than $26, I'll just wait.

Hmmm, or I can try filing form 8809 to request an extension. I'll have to fib about the reason for the request, though, because "you won't let me access BSO" isn't one of the authorized reasons.

[Kraken]

I managed to e-file and print out my W-2 and W-3 this morning with that $26 package that I bought from Staples. It has paper forms for 50 employees, so I have a big stack of paper that I don't need. That's a load off my mind; I've been stressing about it ever since I found out the I couldn't log on to the government's site, and especially when they wouldn't let me file after I managed to overcome that hurdle. Had to pay an additional $2 to e-file with the state, but it's done and now it doesn't matter if my paper authorization letter arrives in time or not.

[stessier]

Filed for another year. I suspect I will not like next year when I don't have an electric car purchase to claim.

[disarm]

Submitted mine over the weekend... getting a net refund between federal and state of about $4k, which is pretty typical for the last few years. While I could try adjusting my withholding to get rid of the refund, that's such a small percentage of what I've paid that trying to make the tiny adjustment could easily put me in the direction of having to pay. I'd rather get the refund than have to make a surprise payment next year, so we'll probably just stay where we are for another year.

Annoying tax rule of the year... you can only deduct medical expenses if they exceed 7.5% of your AGI. That means I would have to pay more than $50k to medical bills before getting any sort of tax break...no deduction for the $7k I had to pay out of pocket for hernia surgery last year.

It's still an unwanted/unexpected medical expense, so why should income level preclude anyone from getting a tax break for healthcare?

[stessier]

It's still an unwanted/unexpected medical expense, so why should income level preclude anyone from getting a tax break for healthcare?

Tax breaks cause less taxes to be collected. If those are targeted to those least able to afford the healthcare bill, the loss to the government is minimized while helping the most number of people.

I'm not saying it's right or wrong - just that's the theory.

[LordMortis]

My theory would be that they consider the burden of your bills against your ability to pay. I've always seemed to pay 1000's a year in medical, upwards or 8-10 and never been able to deduct any of it. I save my receipts every year and they mean nothing. I won't be doing taxes until TD do amended reports on my dividends but this might be the first year I get to claim medical having paid for 10 months of COBRA last year in addition to all of my other out of pocket expenses and having very little income. I have a concern that my COBRA benefits company have no receipts for me though. I'm going to print out a lot of supporting documents, assuming I can declare and it's meaningful but I still have concerns.

[disarm]

I understood the theory, but it still stinks...especially when you're someone who is already paying huge amounts of income tax, have caps placed on your SALT deductions while living in a state with high property values and property taxes, and receive no forgiveness or deduction on my student loan interest despite working as a physician taking care of a patient population that is now 60% government-pay with constantly declining reimbursement rates that struggle to cover costs.

Excuse me if I'm bitter about paying more taxes just "because I can afford it"

[RMC]

I understood the theory, but it still stinks...especially when you're someone who is already paying huge amounts of income tax, have caps placed on your SALT deductions while living in a state with high property values and property taxes, and receive no forgiveness or deduction on my student loan interest despite working as a physician taking care of a patient population that is now 60% government-pay with constantly declining reimbursement rates that struggle to cover costs.

Excuse me if I'm bitter about paying more taxes just "because I can afford it"

Do providers qualify for the PSLF programs? I work for a hospital system as a director in IT. So don't make what I could outside of healthcare, but still qualified for PSLF. So 10 years of payments and I was able to get the rest forgiven. Still paid quite a bit, but had a lot forgiven as well. And yeah, I pay a lot in taxes, because I make decent money. But my wife does not make that much, so it helps offset my taxable income. I ended up not owing this year, but just by a few hundred bucks, which is what I shoot for.

[Lassr]

The medical expenses helps on my state taxes but never on federal.

Sent from my Pixel 6 using Tapatalk

[gilraen]

Annoying tax rule of the year... you can only deduct medical expenses if they exceed 7.5% of your AGI. That means I would have to pay more than $50k to medical bills before getting any sort of tax break...no deduction for the $7k I had to pay out of pocket for hernia surgery last year.

It's still an unwanted/unexpected medical expense, so why should income level preclude anyone from getting a tax break for healthcare?

It's not a rule "of the year" - it's been in place since 2017. Before that it was 10% of the AGI. I haven't been able to deduct medical expenses since probably grad school. My insurance deductible alone is $6k now, and I make a LOT less than you do, so forgive me if I don't exactly consider $7k OOP for surgery to be such an outrageous expense.

There are plenty of tax-related things to be pissed off about - like, in Colorado, we are looking at a potential 25% property tax rate hike this year. Being able to deduct medical expenses is not even in the same ballpark, considering how little it would actually move the needle past a certain income range.

[disarm]

Do providers qualify for the PSLF programs? I work for a hospital system as a director in IT. So don't make what I could outside of healthcare, but still qualified for PSLF. So 10 years of payments and I was able to get the rest forgiven. Still paid quite a bit, but had a lot forgiven as well.

Unfortunately, I can't qualify for PSLF because I don't work for a government agency or non-profit entity. I am share-holding partner in a physician-owned anesthesiology practice, so no breaks for me. On the upside, my student loan interest rate is locked in incredibly low because I graduated at a perfect time. After 16 years, I'm a little more than halfway paid on my 30yr loan and finally owe less than six figures.

Annoying tax rule of the year... you can only deduct medical expenses if they exceed 7.5% of your AGI.

It's not a rule "of the year" - it's been in place since 2017. Before that it was 10% of the AGI. I haven't been able to deduct medical expenses since probably grad school. My insurance deductible alone is $6k now, and I make a LOT less than you do, so forgive me if I don't exactly consider $7k OOP for surgery to be such an outrageous expense..

I'm well aware that it's not a new rule, but it's the thing that annoys me this year after never having to worry about medical expenses in the past.

I have a high deductible plan as well ($6k deductible + $8k out of pocket max), so my family gets very little benefit out of the $31k/year family insurance plan provided by my employer.

[Zarathud]

I always hit my $10K+high deductible plan, but that’s what happens with two diabetics and a train accident survivor as dependents. I’m just happy I can afford their annual care. Deducting it will never happen. Sigh.

[LordMortis]

I always hit my $10K+high deductible plan, but that’s what happens with two diabetics and a train accident survivor as dependents. I’m just happy I can afford their annual care. Deducting it will never happen. Sigh.

That was me with a $8000 OOP max every years in addition to $140 semimonthly pull from my check at the end of my career, turned almost $700 a month for COBRA the first year I left my job. Now I think I will be able to claw back some tax relief for this for 2023. I haven't gotten all my tax paperwork from TD yet.

[Punisher]

Taxes are mostly done but waiting for the IRS to finish updating some forms in HR Block.
Bad year. Gonna owe about 1500 fed and 300 state.
Pretty much due to Amazon Vine. Gonna have to cut back a lot this year.

[Octavious]

Still haven't gotten my refund. Apparently filing quickly is a terrible idea. The IRS flagged me and sent me a letter to confirm that I was the person who filed the taxes. Logged in and confirmed and it said it would take up to 9 weeks to process that confirmation. Holy hell. Good thing I don't need the money.

[Carpet_pissr]

Can someone verify that if you purchased a hybrid vehicle, you get no tax credit for that?

I ask because I always assumed (and read) that you only get a credit for plug in vehicles, or all electric vehicles. But I saw some wording on my state form from 2022 that indicated that an alternative fuel vehicle tax was available, and was specifically NOT available to plug ins or electric vehicles. Anyone dealt with that?

[Skinypupy]

I'm dropping all the stuff off to my tax guy on Thursday, and am dreading the bill I'm going to get this year. In 2023 we closed out all of mom's accounts and split the $$ between my brother and me, and we sold her house, and I had a much larger than usual commissions year. I should have probably done some adjustments along the way and just got too busy and forgot.

I know I'm going to get absolutely hammered on taxes and am proactively wincing at what the damage will be.

[Kraken]

I started drawing SS last fall, Wife's teaching checks are always underwithheld, and we're earning a lot of interest on the short-term savings we're holding to buy a house. I sent in 1040 ES payments in Q3 and Q4 in hopes of averting an April surprise. But the estimated payments were conservative so I won't be surprised if we still owe.

I've finished my share of the tax prep and handed off to Wife for her input. She'll avoid it for weeks, as usual. Will it go to the CPA in time for the April deadline, or will we end up filing for an extension again? That's up to her. My 80% of the work is done.

[stessier]

Can someone verify that if you purchased a hybrid vehicle, you get no tax credit for that?

I ask because I always assumed (and read) that you only get a credit for plug in vehicles, or all electric vehicles. But I saw some wording on my state form from 2022 that indicated that an alternative fuel vehicle tax was available, and was specifically NOT available to plug ins or electric vehicles. Anyone dealt with that?

The federal tax credits are based on battery size. I don't know of any hybrid that meets the minimum requirement, but I also haven't done any research into that.

I am unaware of any SC tax credits for hybrids. Turbotax didn't ask me any questions about it even after indicating I had bought a new car last year.

Edit: These look to be all the available credits. I don't see one that fits what you describe.

Edit 2: Maybe this one?

[coopasonic]

I expect a pretty big return. We usually get a solid return and I should be getting a $7500 tax credit. Paperwork goes to the preparer this week so I should know in a few weeks. A little something to help with college or a potential employment gap, I guess.

[Carpet_pissr]

Can someone verify that if you purchased a hybrid vehicle, you get no tax credit for that?

I ask because I always assumed (and read) that you only get a credit for plug in vehicles, or all electric vehicles. But I saw some wording on my state form from 2022 that indicated that an alternative fuel vehicle tax was available, and was specifically NOT available to plug ins or electric vehicles. Anyone dealt with that?

The federal tax credits are based on battery size. I don't know of any hybrid that meets the minimum requirement, but I also haven't done any research into that.

I am unaware of any SC tax credits for hybrids. Turbotax didn't ask me any questions about it even after indicating I had bought a new car last year.

Edit: These look to be all the available credits. I don't see one that fits what you describe.

Edit 2: Maybe this one?

Yes, that second one! I even looked it up on the tax code but still see no definition of ‘qualified’. I wonder if this credit refers to NG vehicles maybe?

[Punisher]

I started drawing SS last fall, Wife's teaching checks are always underwithheld, and we're earning a lot of interest on the short-term savings we're holding to buy a house. I sent in 1040 ES payments in Q3 and Q4 in hopes of averting an April surprise. But the estimated payments were conservative so I won't be surprised if we still owe.

I've finished my share of the tax prep and handed off to Wife for her input. She'll avoid it for weeks, as usual. Will it go to the CPA in time for the April deadline, or will we end up filing for an extension again? That's up to her. My 80% of the work is done.

Question. Not sure I'll actually be able to do this but can you send those payments in as extra tax money during the year and if you end up sending too much do you get it back on next years tax returns even if you take standard deductions?
Also, is it a specific general form for everything or do you need different forms for different payments? Like if I need to send payments for Amazon Vine vs rental income vs SSDI deductions.
Finally if it's a single form can you please privide a link to it?

[Kraken]

I started drawing SS last fall, Wife's teaching checks are always underwithheld, and we're earning a lot of interest on the short-term savings we're holding to buy a house. I sent in 1040 ES payments in Q3 and Q4 in hopes of averting an April surprise. But the estimated payments were conservative so I won't be surprised if we still owe.

I've finished my share of the tax prep and handed off to Wife for her input. She'll avoid it for weeks, as usual. Will it go to the CPA in time for the April deadline, or will we end up filing for an extension again? That's up to her. My 80% of the work is done.

Question. Not sure I'll actually be able to do this but can you send those payments in as extra tax money during the year and if you end up sending too much do you get it back on next years tax returns even if you take standard deductions?
Also, is it a specific general form for everything or do you need different forms for different payments? Like if I need to send payments for Amazon Vine vs rental income vs SSDI deductions.
Finally if it's a single form can you please privide a link to it?

Form 1040-ES

You can also make estimated payments electronically

Any estimated payments you send in with this form will be treated just the same as the money withheld from your paychecks. If you overpay, you get a refund.

1040-ES is meant to be sent in quarterly. Each quarter, I keep a running tally of how much untaxed or undertaxed income we had. For example, I'm not having taxes withheld from SS, but 85% of it is taxable because we're both still working and earning good money. My check is $2,100 * 3 months = $6,300 * 0.13 = $819. (Our effective federal tax rate hovers between 12-13%.) We earned $400/mo in savings interest, and Wife had two teaching checks underwithheld by $220 each, so that's another $1,660 in untaxed income * 13% = $216, for a grand total of approximately $1,035 in taxes owed. So by the end of this quarter I'll send in 1040-ES with $1,035, then start counting again for the next quarter.

You don't have to show your work. The IRS doesn't care how you figured it out.

Why would one want to go to the trouble of doing this four times a year and forgoing the interest that your money would earn if banked until the end of the year? Besides avoiding a nasty April surprise, if your underpayments exceed a certain percentage of your total obligation you can be subject to late payment penalties.

Finally, your state revenue department almost surely would appreciate quarterly payments as well. Since Mass. doesn't tax SS, and our tax rate is only 5%, my Q1 estimated payment to the state would only be $1,660 * .05 = $83 -- not worth bothering with IMO. I'll send the state one estimated payment of $325 for the whole year in Q4.

[Punisher]

Yeah, my SSDI is pretty much tax free. Even with our rental income we were going to get about 1700 back. As soon as I entered the Amazon Vine stuff we owed around 500.
I mean technically it's still a good deal but I wasn't expecting that big of a hit at tax time as we generally get a refund. Last year was my first year in the program so I wasn't prepared. Have to cut back this year or if possible send in those payments. I'm already gonna have to go on a payment plan with the IRS but I've started to go rhrough some old things and sell them to help. Obviously not gonna get anywhere near what I paid but every little bit will help.

[MHS]

Weird year for us because the company I've worked for for 18 years was acquired last fall. I was fortunate enough to get a sizable bonus and also some stock profits. They taxed everything as if I'd be getting that level of pay for the rest of the year so they withheld way too much, resulting in us getting a refund of almost $30k. Which is always nice but especially so right now because I think Kayla will be getting engaged soon so we'll have a wedding to pay for in the near future.

[LordMortis]

Wow. How did you not notice that kind of money deducted from you check. That's... Wow...

Nice.

I just finally got the last of my forms today. So taxes are started! I'm not sure I have all of the paperwork I need but I am sure I have all I'm going to get without demanding them from a provider. It will depend on whether I can deduct medical and what evidence I need to provide to do so.

[MHS]

Wow. How did you not notice that kind of money deducted from you check. That's... Wow...

Nice.

I just finally got the last of my forms today. So taxes are started! I'm not sure I have all of the paperwork I need but I am sure I have all I'm going to get without demanding them from a provider. It will depend on whether I can deduct medical and what evidence I need to provide to do so.

Oh, trust me, I noticed, because it was all from one check with the bonus and the stocks. And when I saw the amount, I knew they had withheld too much but there wasn't anything I could do about it other than assume we'd get a big amount back, which we thankfully did.

[Jaymann]

Sorta. Mailed my forms off to my tax guy, so I am done unless there is a payment needed.

[naednek]

So, should I be waiting for the government to figure out the child credit increase before I send my taxes in? We are not itemizing so not sure if anything would make a difference.

[Max Peck]

I'm sort of done. I've punched the numbers into the tax preparation application (GenuTax, one of the free/pay-what-you-want options here) and know how much I owe. Now I just need to decide if I want to file now and get it over with or wait until the end of April, as is tradition.

[Carpet_pissr]

DONE!
(with 2022 taxes)

[Kraken]

Every spring, Kraken Enterprises has to pay the DOR $456 in corporate excise tax and $110 to file my annual report with the secretary of state. This year I paid them both the second week in January. So a couple of days ago my CPA notified me that my 2023 returns are done and I need to make those payments. Already done, says I. After investigating he says Nope. You paid your 2024 taxes in advance. You still owe for 2023. Oh sorry, says the state, no backsies.

Crap. If I'm still alive and in business a year from now I'll be glad that I screwed this up, but right now I have a $566 hole to plug, so this month's paycheck will be light by that amount.

[Jeff V]

I sent all of our papers to the accountant last week. Wife is asking daily if I heard back yet, if it's anything like last year, I might hear back around the first week of April.

If she does what she did last year and multiplies the Uber-reported miles by 1.5 to account for non-clock mileage incurred (such as driving 50 miles home from the last drop off), then it'll be another wash, probably with a small loss. This would mean I could keep working as I am after filing for SS in a few months. Both me and the wife would like me to find something that pays and doesn't involved driving all day, but I'll have to keep an eye on such income as there's a limit on how much net income I can receive.

[Scuzz]

Wow. How did you not notice that kind of money deducted from you check. That's... Wow...

Nice.

I just finally got the last of my forms today. So taxes are started! I'm not sure I have all of the paperwork I need but I am sure I have all I'm going to get without demanding them from a provider. It will depend on whether I can deduct medical and what evidence I need to provide to do so.

Oh, trust me, I noticed, because it was all from one check with the bonus and the stocks. And when I saw the amount, I knew they had withheld too much but there wasn't anything I could do about it other than assume we'd get a big amount back, which we thankfully did.

When I ran the office for the family company we would pay bonuses out in good years (after the sep/ira’s were fully funded) and often the amounts withheld from those checks made little sense, but the payroll system treated them as if they represented a normal paycheck.

[LordMortis]

I understood the theory, but it still stinks...especially when you're someone who is already paying huge amounts of income tax, have caps placed on your SALT deductions while living in a state with high property values and property taxes, and receive no forgiveness or deduction on my student loan interest despite working as a physician taking care of a patient population that is now 60% government-pay with constantly declining reimbursement rates that struggle to cover costs.

Excuse me if I'm bitter about paying more taxes just "because I can afford it"

If misery wants to love company. I just spent hours tallying all of my medical expenses in 2023 after saving every little thing over the last year, totaling over $8000 in expenses. My total income was capital gains of less than $20,000. Even though my expense was enough to allow me to deduct a portion of my health care, TT says the standard deduction is preferable.

(Of course my tax liability at that level is pretty much 0 anyway)

[LordMortis]

Filing. I think this may be the last year I use TurboTax. My taxes are much simpler (for them. No more schedule Ks to pay for. I have to keep and track a lot more than ever on my side) and the price keeps going up. $178 to file with them this year and they make it hassle to opt out of further costs and selling... excuse me, sharing with 3rd parties to improve my experience... at every turn. I need put a reminder in my calendar to look at TaxSlayer and HR Block and others for 2024.

[Jaymann]

Officially done! I planned it well this year: $4,378 refund from club fed, $899 refund from state of decay.