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April 15th is over. How did you come out for the 2013 tax year?

How did you come out for the 2013 tax year?

  • Overall I paid in more than 50% in taxes.

    Votes: 1 4.0%

  • Overall I paid in more than 20% but less than 50%.

    Votes: 10 40.0%

  • Overall I paid less than 20% but more than 10%.

    Votes: 4 16.0%

  • Overall I paid less than 10% but more than 5%

    Votes: 2 8.0%

  • Overall I paid less than 5% but more than 0%

    Votes: 1 4.0%

  • Overal I didn't pay any taxes.

    Votes: 7 28.0%

  • I am just guessing. I didn't calculate it. I could be lying.

    Votes: 1 4.0%

  • I calculated it my answer. My answer is true.

    Votes: 2 8.0%
  • Total voters
    25
  • Poll closed .
Lutherf said:
Those figures tie back exactly to what I calculated but I don't understand the 20% withholding on the "other income". Generally speaking mandatory backup withholding is 28%, not 20% and if it isn't mandatory then you damned sure don't need it to be withheld.
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I cashed in a 401(k).

The amount was $3,678.93.

They withheld $735.79 in FITW and $147.16 in North Carolina taxes. I didn't have a choice to fill out a W-4 or anything similar.

You really aren't supposed to cash in a retirement account until you turn 59 1/2 so I figured I deserved the inconvenience.
 
Lutherf said:
Figuring out you were married is easy. It's the only way your EIC could be that much. It's also how I know you must have 2 kids under the age of 17 but I just guessed at that before you posted the details of your tax calculation.
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In most cases it is more beneficial to be married. There is an exception. It seems like you are somewhat familiar with tax returns. Maybe you will understand what I am talking about.

Two people live together for 10 years but never get married but have two kids. They make about $20,000 each. They are both eligible for EIC and Child Tax Credit. One claims one kid. The other claims the other kid.

If they were married they would make $40,000 and be ineligible for EIC.

There are a few unmarried people that would lose out if they were married. It's just a fluke or a "sweet spot". It's not really something to plan your life around because you could have a larger or smaller income in subsequent years and screw yourself.

Does this make any sense?
 
Gipper said:
Ah, the "extender". Lazy. :lamo
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No. It's saving him money. He doesn't have to pay his taxes yet because he is special and deserves an extension because his situation is just oh so unique. :roll:

(Let's not tell him about the penalties.)
 
vasuderatorrent said:
No. It's saving him money. He doesn't have to pay his taxes yet because he is special and deserves an extension because his situation is just oh so unique. :roll:

(Let's not tell him about the penalties.)
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He's a CPA. He knows all about it.
 
vasuderatorrent said:
In most cases it is more beneficial to be married. There is an exception. It seems like you are somewhat familiar with tax returns. Maybe you will understand what I am talking about.

Two people live together for 10 years but never get married but have two kids. They make about $20,000 each. They are both eligible for EIC and Child Tax Credit. One claims one kid. The other claims the other kid.

If they were married they would make $40,000 and be ineligible for EIC.

There are a few unmarried people that would lose out if they were married. It's just a fluke or a "sweet spot". It's not really something to plan your life around because you could have a larger or smaller income in subsequent years and screw yourself.

Does this make any sense?
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I've actually seen that several times but doing that is likely to get you in trouble.

Under the scenario you cite only one person would be eligible for Head of Household filing status. On of the requirements for HOH is that the individual pays more than half the cost of maintaining the home. If two people are living in the home then only one can possibly meet that test. The other would have to file as single.

Do people do it? Yep.
Does the IRS check on it? Occasionally.
 
Lutherf said:
I've actually seen that several times but doing that is likely to get you in trouble.

Under the scenario you cite only one person would be eligible for Head of Household filing status. .
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You are right. Are single filers eligible for EIC? If not, then you are right. You would have to commit fraud to execute it properly.

To be legal about it, the higher income person would probably file head of household thus both kids. The lower income person would probably file single and no kids.
 
vasuderatorrent said:
That's reasonable. He was too busy doing taxes for others to have time to do his own.:doh
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I'd say that in my industry 80% or more of us file extensions. We figure out how much we'll owe and send that in ahead of time so there are no penalties to deal with.

If you were paying me to do your tax return wouldn't you prefer that I spent my time working on your stuff to the best of my ability instead of working on my own stuff and just jamming yours together?
 
Lutherf said:
I'd say that in my industry 80% or more of us file extensions.
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You really think so? Why would your tax return be any more complicated than your clients? This is something I never considered. Is the 2nd and 3rd week of March slow enough to do your own tax return?
 
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vasuderatorrent said:
You are right. Are single filers eligible for EIC? If not, then you are right. You would have to commit fraud to execute it properly.

To be legal about it, the higher income person would probably file head of household thus both kids. The lower income person would probably file single and no kids.
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Single people can get EIC but the income threshold is pretty low. This year it was $14,340. The amount of credit you get is also pretty small. A single person with no dependents making $12k would only get $177 in EIC.
 
I got a refund, which will be going towards a new Army Service Uniform so that I can take a respectable DA Photo for my Warrant Officer packet. :mrgreen:
 
vasuderatorrent said:
You really think so? Why would your tax return being any more complicated than your clients? This is something I never considered. Is the 2nd and 3rd week of March slow enough to do your own tax return?
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LOL!!

My tax season starts in November with getting my corporate clients squared away. Beginning in January I've got 4th Quarter payroll reports that have to go out, 1099's that need to get filed and finalization of corporate financial statements. Corporate returns are due March 15th and get mixed in with individuals who need to file early so they can get the information they need for their kids FAFSA applications. That basically leaves me 4 weeks to get the bulk of the individual returns done. Interspersed with all of that is answering correspondence from the IRS and state tax agencies as well as at least one person who comes in with an audit issue. You also have to keep in mind that whatever Congress changed in Nov and Dec means that both the IRS and the software companies have to get those changes into the system so filing ANY return before the middle of February is pretty much a shot in the dark....if it's even possible.

As far as the complexity of my return...well, I've got two corporate returns that need to be done before I can do my personal which isn't really complicated but it sure is time consuming.
 
Luckily we only have to file one return - the one for Uncle Sam. God bless New Hampshire, the Live Free or Die state. No income taxes here.
 
Lutherf said:
LOL!!

My tax season starts in November with getting my corporate clients squared away. Beginning in January I've got 4th Quarter payroll reports that have to go out, 1099's that need to get filed and finalization of corporate financial statements. Corporate returns are due March 15th and get mixed in with individuals who need to file early so they can get the information they need for their kids FAFSA applications. That basically leaves me 4 weeks to get the bulk of the individual returns done. Interspersed with all of that is answering correspondence from the IRS and state tax agencies as well as at least one person who comes in with an audit issue. You also have to keep in mind that whatever Congress changed in Nov and Dec means that both the IRS and the software companies have to get those changes into the system so filing ANY return before the middle of February is pretty much a shot in the dark....if it's even possible.

As far as the complexity of my return...well, I've got two corporate returns that need to be done before I can do my personal which isn't really complicated but it sure is time consuming.
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You don't outsource your indy returns to some 8 dollar an hour street-scrubs? I haven't met a CPA yet who doesn't think that individual returns are beneath him, unless they were incredibly difficult.
 
Lutherf said:
As far as the complexity of my return...well, I've got two corporate returns that need to be done before I can do my personal which isn't really complicated but it sure is time consuming.
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Oh. I get it. Those corporate returns have a tax year that ends in a different month. If your corporate tax year ends on June 30, 2014, does that effect your 2013 individual tax return?
 
Gipper said:
You don't outsource your indy returns to some 8 dollar an hour street-scrubs? I haven't met a CPA yet who doesn't think that individual returns are beneath him, unless they were incredibly difficult.
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I have one other preparer in the office and there is no way I'm going to farm out returns to some "flunky". I know a lot of CPA's who use an interviewer and a data entry person but I'll be damned if I'm going to sign something I didn't thoroughly review. It's just too damned easy to make a mistake.

Every year I have stuff come across my desk that was prepared by other firms and on better than half of those returns I've found issues (which is usually why they came to my desk in the first place:lol:). On top of that, after working with a client for a few years I can tell whether something is missing or just doesn't make sense. No data entry clerk is going to notice those differences and if I farm it out I'll be prone to lose that insight too.
 
vasuderatorrent said:
Oh. I get it. Those corporate returns have a tax year that ends in a different month. If your corporate tax year ends on June 30, 2014, does that effect your 2013 individual tax return?
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Their tax year generally isn't different but the due date for their return is earlier than for individuals. If you happen to have a fiscal year instead of a calendar year then your corporate return is due on the 15th of the third month after your year ends. For individuals it is the 15th of the 4th month after the year ends.
 
tres borrachos said:
Luckily we only have to file one return - the one for Uncle Sam. God bless New Hampshire, the Live Free or Die state. No income taxes here.
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Back in 2002 I did a report advocating abolishing the North Carolina income tax. At that time Florida, Texas, South Dakota, Alaska, Arizona, Nevada and Washington were the only states that didn't have a state income tax. I was surprised to learn that New Hampshire wasn't one of the no income tax states.

I think at that time New Hampshire required income tax on interest income. Is that still the way it is in New Hampshire? or have that done away with all income taxes in New Hampshire?
 
Lutherf said:
if I farm it out I'll be prone to lose that insight too.
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That is one reason that automation scares the banana split out of me. Technology has the potential to be a great help but it can be a crutch that makes us lazy and forgetful.
 
Lutherf said:
I have one other preparer in the office and there is no way I'm going to farm out returns to some "flunky". I know a lot of CPA's who use an interviewer and a data entry person but I'll be damned if I'm going to sign something I didn't thoroughly review. It's just too damned easy to make a mistake.

Every year I have stuff come across my desk that was prepared by other firms and on better than half of those returns I've found issues (which is usually why they came to my desk in the first place:lol:). On top of that, after working with a client for a few years I can tell whether something is missing or just doesn't make sense. No data entry clerk is going to notice those differences and if I farm it out I'll be prone to lose that insight too.
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I love Intuit products. I've used ProSeries and it's practically idiot-proof. Does the job for ya.

I heard that, a few years back, the IRS said that 85% of individual returns turned in were incorrect or incomplete. It was the first year of that Schedule M (Making work pay...damn Obama), so I imagine that contributed to a good chunk of them.

The flunky wouldn't do complex returns, but they usually handle EZs and minor As. The firm I worked for, the partner pretty much didn't touch it unless it was a 179, had multiple difficult schedules, or was a family member/friend.
 
Taxes? Is for suckers

This government will have to do a helluva lot better to get a hold of my hard earned $
 
Got back enough for a new heavy-duty diesel truck tranny. Realllllly needed it.
 
Lursa said:
Got back enough for a new heavy-duty diesel truck tranny. Realllllly needed it.
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Yeah but did you pay in enough for 3 heavy-duty diesel truck trannies, 2 heavy-duty diesel truck trannies or were you like me and made a profit on your taxes?
 
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