Tax Time!

[tvguy]

Great! I'm so glad to hear that. I hate to hear from people who pay the paid preparers for what can be done in less than 1/2 hour or so. When I worked for the United Way, doing taxes, I heard it a lot-actually, too much.

Took me 90 minutes just to go through my checkbook register, credit card statements looking for deductions.
Sadly, the income side will take about 30 seconds. Income last year was IRA distributions and investments, 2 forms from the bank and the investment house list it all.

 

[DLgal]

Latest on this. IRS is saying Californians should wait to file until they determine if that tax rebate is taxable. They are still reviewing it! It isn't like the IRS didn't know about the rebates 6 months ago. Apparently Colorado taxpayers are being told the same thing, don't file yet.

Well, I can go ahead and file since I JUST finally got my debit card yesterday. I suppose I may have to pay taxes on it in 2024 if they decide it that way, although I feel like the fact that it's called a "Middle Class Tax REFUND" would mean it's not subject to income taxes, as it's technically a return of taxes paid.

 

[tvguy]

Well, I can go ahead and file since I JUST finally got my debit card yesterday. I suppose I may have to pay taxes on it in 2024 if they decide it that way, although I feel like the fact that it's called a "Middle Class Tax REFUND" would mean it's not subject to income taxes, as it's technically a return of taxes paid.

Well, that is another issue since California is saying it is 2022 income, even if you didn't get the card until 2023. But if the IRS says it isn't taxable, no need to worry.

 

[DLgal]

Well, that is another issue since California is saying it is 2022 income, even if you didn't get the card until 2023. But if the IRS says it isn't taxable, no need to worry.

They didn't even process ours until Jan 15. How does that make any sense?

Anyway, it's tied to 2020 tax filing status, so I'm guessing the IRS will rule its a non-taxable stimulus payment anyway.

 

[tvguy]

They didn't even process ours until Jan 15. How does that make any sense?

Anyway, it's tied to 2020 tax filing status, so I'm guessing the IRS will rule its a non-taxable stimulus payment anyway.

Good question. One I ask often when it comes to taxes.

 

[sam_gordon]

Funny you should mention this. I have used Tax Act for years (more for convenience at this point since it has the previous year's info). My husband always had self-employed income so I had to pay for that edition, but last year, he was strictly W-2, so I was happy that that was one less thing I was going to have to do today.

It took a little less time than usual without the self-employed stuff, but still took me about an hour and a half because of educational expense stuff. I go to file/pay and the only option it gives me is the self employed edition/price, even though one of the first questions it asked me was if I had any self-employed income this year.

I didn't see a way to change it, so I requested a call and someone did call me within minutes, but they said because I previously filed self-employed and it used other info unrelated to the self-employed stuff from last year (my employer, etc.), that I had to start over and specifically make a point to select the not self-employed options (even though I didn't select anything to begin with -- I just "started" my return once I logged in). I was sooooo pissed! This was after I put away all my documentation in various folders.

So now I can do it all over again, just say the heck with it and pay the higher amount, or just start over with another online platform. I'm so damn mad today that even though I'll probably do it over, I don't have it in me to do it twice in one day. I will NEVER use them again. I don't believe for one second there wasn't a workaround with that, he just didn't want to inquire.

Many of the online companies will allow you to upload a PDF of last year's taxes so you don't have to enter it all again. FreeTaxUSA did that and I had to correct some things, but it prevented me from typing it all again.

H and R Block website here says they charge $60 to file a Federal Return and an additional $85 to file a state return. Of course in states with no income tax, you can avoid the second charge.

Interesting. Here's my "checkout cart":

I didn't like that they made me go to the "Deluxe" because my company put money into my HSA.
Here's their website cost chart:

Not one shows state taxes at $85. Or are you saying that's their "in person" cost.

Took me 90 minutes just to go through my checkbook register, credit card statements looking for deductions.
Sadly, the income side will take about 30 seconds. Income last year was IRA distributions and investments, 2 forms from the bank and the investment house list it all.

Since they upped the standard deduction years ago, I'm no where close to needing to find available deductions. Even with a mortgage, real estate taxes, and donations, the standard is more.

 

[tvguy]

Many of the online companies will allow you to upload a PDF of last year's taxes so you don't have to enter it all again. FreeTaxUSA did that and I had to correct some things, but it prevented me from typing it all again.

Interesting. Here's my "checkout cart":
View attachment 738941
I didn't like that they made me go to the "Deluxe" because my company put money into my HSA.
Here's their website cost chart:
View attachment 738942
Not one shows state taxes at $85. Or are you saying that's their "in person" cost.

Since they upped the standard deduction years ago, I'm no where close to needing to find available deductions. Even with a mortgage, real estate taxes, and donations, the standard is more.

Well, I am in California, so prices may be highter.
I don't know yet on deductions, I've taken the standard for about 20 years but I had a lot of medical expenses in 2022 so we will see.

 

[tvguy]

They didn't even process ours until Jan 15. How does that make any sense?

Anyway, it's tied to 2020 tax filing status, so I'm guessing the IRS will rule its a non-taxable stimulus payment anyway.

IRS just ruled it is NOT taxable income.

 

[disneychrista]

IRS just ruled it is NOT taxable income.

Well that's good because I already filed my returned last week. I owed the exact same amount as I did for 2021, even though I had different income & withholdings.

 

[starry_solo]

They didn't even process ours until Jan 15. How does that make any sense?

Anyway, it's tied to 2020 tax filing status, so I'm guessing the IRS will rule its a non-taxable stimulus payment anyway.

I got mine two weeks ago too. Not sure how CA or IRS can say it’s taxable income from 2022 when it wasn’t received until 2023, but I am hoping to start taxes next week.

 

[JLTraveling]

TurboTax Home/Business. I'm self-employed, so the business deductions are pretty tedious, but the site walks me through it step by step. And I don't have anything that would further complicate my returns, so I don't see a reason to hire someone.

 

[DCLMP]

I use turbo tax deluxe.

 

[DCLMP]

Well, I am in California, so prices may be highter.
I don't know yet on deductions, I've taken the standard for about 20 years but I had a lot of medical expenses in 2022 so we will see.

I know I can only get relief on state taxes from medical. I think your medical expenses have to be a huge portion of your income to get any kind of cut from the Fed.

 

[georgina]

The deduction value for medical expenses varies because the amount changes based on your income. In 2022, the IRS allows all taxpayers to deduct their total qualified unreimbursed medical care expenses that exceed 7.5% of their adjusted gross income if the taxpayer uses Schedule A to itemize their deductions.

 

[Cheburashka]

The deduction value for medical expenses varies because the amount changes based on your income. In 2022, the IRS allows all taxpayers to deduct their total qualified unreimbursed medical care expenses that exceed 7.5% of their adjusted gross income if the taxpayer uses Schedule A to itemize their deductions.

This. If you don't have a big income yet have a lot of medical expenses (a lot of Americans are in this position), it's quite possible to have significant medical expenses to deduct.

 

[tvguy]

I got mine two weeks ago too. Not sure how CA or IRS can say it’s taxable income from 2022 when it wasn’t received until 2023, but I am hoping to start taxes next week.

All the refunds were issued in 2022. It just seems the company they picked to distribute the money had issues getting the money out in a timely fashion. But moot point now that the IRS says it isn't taxable income.

 

[tvguy]

I know I can only get relief on state taxes from medical. I think your medical expenses have to be a huge portion of your income to get any kind of cut from the Fed.

Well, 2022 was our first full year of retirement with zero earned income. Combined with record medical costs, I might make the cut with the Feds this year. My taxable income fell by 40% over 2020, which was the last full year we worked.

 

[kdonnel]

Pushed the button and filed today.

My Federal return has already been accepted. The state is pending.

My estimated refund date is March 4th.

 

[DLgal]

All the refunds were issued in 2022. It just seems the company they picked to distribute the money had issues getting the money out in a timely fashion. But moot point now that the IRS says it isn't taxable income.

That is not true. There were several batches of payments that were not even processed until mid January, as in the CA FTB did not send the info over to Money Network until that time. I know because I contacted my state senator about our missing refund and he looked into it for us. We were inadvertently placed into the last batch even though we didn't meet the criteria of that batch. Our refund was processed on Jan 31. Prior to that, there was no record of our account.

 

[_19disnA]

H&R block software still indicates that not all of the Federal forms have been finalized. I wouldn't file your return until the forms are final. If one of the forms you use changes, might cause you to have to refile an amended return. Racing to file your return with forms that might change seems like a bad idea.