April 15th will be here before we know it.Does anyone have some pearls of wisdom that they would like to share?

[ February 18, 2006, 10:37 AM: Message edited by: eddiecat ]

Turbo Tax.

Claim your pets as dependents.

Yes.

1) Last night's trick cannot be claimed as a dependant.

2) No, you can't claim your partner's cat either.

3) Paper cuts from filling out your 1040 forms are not medical expense deductions.

4) You can't request an additional deduction because "easy" on the 1040-EZ is spelled wrong.

5) A joint return doesn't mean you can light 'em if you got 'em.

6) If self-employed, you cannot fire yourself, sue for discrimination, and claim the legal fees next year. (I tried it once )

7) You may be "Head of Household" but that doesn't mean your getting any.

8) No one listens to you when you lobby for an Alternate Maximum Tax.

9) Paying Stinger for services doesn't count as a charitable deduction. eek!

10) Most of all, never let BPT do your taxes for you. Get a real professional do them.

[ February 18, 2006, 11:36 AM: Message edited by: BPT-336 ]

Best computer software ever invented.

I have been using tax software to do my taxes since 1990. Most of the time I have used Turbo Tax primarily because I used to get a discount through my brokerage account. This year I will use Tax Cut for the second time, mainly because the price is cheaper and I believe is now on a par with Turbo Tax.

Turbo Tax deluxe with State comes in around $35-$40. I got Tax Cut deluxe with State at Staples for $25 and got as a bonus Microsoft Money deluxe free after rebate. There are various offers for both software packages of free virus protection/security by Symantec. I didn't need any of this but it could be something you might want. See Staples, CompUSA or Best Buys for what the offers are.

[ February 18, 2006, 02:15 PM: Message edited by: phillyrunner ]

I've been using the online version of Turbo Tax for the past few years as well. It's pretty much idiot-proof, and my return gets filed electronically. I think it's great and highly recommend it.

I totally agree.. Turo Tax is the way to go..I just finish doing my taxes online about a hour ago and it was fast and easy... cant wait to get back that money

-gilbert

oh, please, only little people pay taxes!

Thank you Miss Leona Helmsley! wink

I emphatically agree with Joe on this. It's THE best and THE easiest way to do your taxes. File electronically, get your refund in about 10 days, voila! It's that simple.

And the software's even free to boot!

Mine are not due until June 17 (and the accountants want me to file for a two month extension until Aug 15), but...

First, the general rule: U.S. citizens are taxed on their worldwide income and must file and pay U.S. income taxes regardless of where the income is earned.

An important point to remember is that citizens living outside the U.S. may be able to exclude up to $80,000 of their 2005 foreign source income if they meet certain requirements.

Sigh - Of course, none of this applies to me since I have as my residence a boat that is registered in the US.

I get totally screwed no matter what I do.

I may have to pay the foreign taxes and not get the EIE anyway. However, since the UK and Swiss tax rates are higher than the US rate it may wipe out any US taxes, but according to rule...

I REALLY REALLY REALLY HATE Attorneys and Accountants.


R

What you hate are tax accountants. C'mon now, not all of us do the tax thing. In fact, I know some that would go insane if they were stuck doing tax.

Taxes must be just so tough when you make all that money...

haven't tried turbotax. how does it work?

It's a program that lets you do your taxes on the computer, then gives you the option to file electronically via your Internet connection or file the traditional way by printing your return and you mailing it. If you get a refund, you can choose to have it direct deposited or a check sent.

Turbo Tax is easy because instead of you starting it and filling out confusing forms, it walks you through everything, from beginning to end. Basically, it asks you on-screen questions, the answers of which you get from documents like your W-2's, 1099's, etc. It graphically shows you what these look like, and what certain sections of them look like. This is good for those who feel confused about doing their taxes or who are just idiots when it comes to doing taxes (I'm not including you in that; I'm just expressing it as an example).

Turbo Tax is really an easy, step-by-step program where you can't go wrong. Plus, when you're just about done, the program will check your return for any errors, which would prevent you from electronically filing your return.

One of the best aspects of Turbo Tax that I like is its personal forms and work sheets. These are records for your personal files and not for the IRS. Stuff like 5-year summary of your taxes and deductions and other things are built in to the program. This allows you to maintain, in addition to your actual return, information on your taxes, your expenses, your deductions, and a host of other helpful info.

Finally, when you're finished, you can uninstall the program itself with your basic return and its info left intact on your hard drive in Turbo Tax's program folder. This is a great little feature, because in subsequent years, you install the new program and simply transfer your previous year return's basic information in one or two key strokes, saving you a lot of time and typing.

You know, I do not even mind paying my taxes. The good ol' USA has been damn good to me.

What I hate is that I need to hire an entire REGIMENT of attorneys, solicitors, accountants, factors, directors and bookeepers to tell me how much I actually owe: and then they can't give me a straight answer.

As hard as it may be to believe, I am not trying to cheat. I believe in paying my fair share. I believe in being able to sleep soundly at night.

But if I accepted some of the crazy business schemes that Attorneys and Accountants propose to me, I think I would be in a Federal Pen so fast it would make your head spin.

R

And we all know Rob would not do well in the Federal Pen. You would be traded all around for having such a "pretty mouth". tee-hee wink Mmmmm... I am having a little ITjock prison movie in my head right now. LOL


I have used the online H&R Block software for four years now. It saves your past tax info and all your data and will fill in the new year automatically. I file for free since I make under $50k per year. (sigh) Check it out at IRS.GOV You have to go through the "free file" link. I have e-filed my return and already received my tax refund last week EFT'd directly to my checking account . I used it to have my car painted. I picked up the car yesterday and my mouth dropped to the ground when I saw it. Looks like a freaking new car. I was totally impressed!!!

As for next year.... it will be different. Me and the husband sold a condo and made a huge profit. We closed Friday. Does anyone know anything about the capital gains tax and what you have to pay and how long before you get taxed?

[ February 19, 2006, 06:48 AM: Message edited by: gadbearr ]

Well Gadbear... It actually depends, was the property an investment property? If you did a 1031 exchange you have a limited time frame where you MUST identify a property to which you will be applying your money. It is a legal way to avoid paying your taxes, you simply defer them until you sell the new investment property or properties. If you made a killing, I would recommend purchasing a multi unit property. Especially if you have the oppurtunity to make the property your primary adress.

Simply because, if you make a multi unit property your primary adress, and don't mind moving into a different unit in the building every 2 years, you can sell your individual unit by creating a condo association, and take the primary home tax break (up to $250,000) AFTER you pay the bills, mortgage , commission etc when you sell the condo unit. AND you are allowed to do this every 2 years under current tax laws. SOOOO you have the potential to walk away with with up to a million dollars of non taxable income if you purchase a 4 unit building, condo it out, and sell off each unit as your primary adress every 2 years or so for 8 years.

Sounds like a scam, but .... its completely legal under our tax code.

if it was your primary residence, check with your accountanat and your real estate agent or broker. They can explain better the laws in your state, as well as the Federal laws regarding the sdale of primary residence. Legally married couples are entitled to up to a $500,000 deduction upon which you pay no taxes, and singles are allowed up to $250,000. So ASK YOUR ACCOUNTANT, or double check with a REAL ESTATE LAWYER. Its worth the 300 bucks.

Actually, I think most accountants would play it straight when it comes to tax. That's one of those things you don't mess around with, the IRS is vicious and accountants know it. Normal financials are starting to be that way due to recent legislation in the wake of Enron and Worldcomm.

[ February 19, 2006, 11:29 AM: Message edited by: Illini_fan ]