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Income Tax Return Questions

Reality TVClubHouse Discussions: General Discussions ARCHIVES: Jan ~ Apr 2009: Income Tax Return Questions users admin

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Serate
Member

08-21-2001

Monday, January 26, 2009 - 8:56 pm   Edit Post Move Post Delete Post View Post Send Serate a private message Print Post    
OK so stupid question here.

If my Itemized Deductions are not much more than my Standard Deduction, is it better to go with the Standard Deduction so our State refund doesn't count as income next year?

Kitt
Member

09-06-2000

Monday, January 26, 2009 - 10:06 pm   Edit Post Move Post Delete Post View Post Send Kitt a private message Print Post    
You should really double check anything I (or anyone else) says here about taxes, but I believe that if you itemise for 2008 and at some time in 2009 are likely to get a refund of your state taxes for 2008, then on your 2009 federal return you will have to pay tax on the smaller of
. the difference between your total itemised deductions for 2008 and the standard deduction for 2008
OR
. your state tax refund for 2008 (paid in 2009)

If you know you've overpaid state tax so that your itemised deductions would be less than your standard deduction if you subtracted the refund, then you still do get the benefit of having your refunded money for an extra year before you pay taxes on it, so it might be worth doing it anyway. If your itemised deductions are higher than the standard deduction even without state taxes being included, then I'd definitely itemise.

But don't rely on what I say, ask a professional!

Seamonkey
Moderator

09-07-2000

Monday, January 26, 2009 - 10:44 pm   Edit Post Move Post Delete Post View Post Send Seamonkey a private message Print Post    
Also, if you pay property taxes over a certain amount (the article is upstairs and I'll check later) even if you cannot itemize, there an extra deduction of I think $500 single $1000 married that can be applied. I was quite interested in that because after a few years of not having enough income to even need to file, I have ot file/pay this year and anything that will help lower what I have to pay (or keep me from paying) is all good to me. And if you didn't qualify for that rebate thing last year and you do for 2008, there is that too (and I didn't and now I will, yay).

Colordeagua
Member

10-25-2003

Monday, January 26, 2009 - 10:54 pm   Edit Post Move Post Delete Post View Post Send Colordeagua a private message Print Post    
The immediate prior to the current commissioner of the IRS is an acquaintance of mine. Really.

Serate
Member

08-21-2001

Monday, January 26, 2009 - 11:09 pm   Edit Post Move Post Delete Post View Post Send Serate a private message Print Post    
Thanks Kitt & Seamonkey. Turns out the itemized was alot more than I first thought, and when I clicked overide to use Standard, the little dude popped up and called me a stupid idiot. OK so not really, he popped up and told me that while I could do what I wanted, he'd strongly recommend me itemizing. But what you said Kitt makes sense, take the money now and worry about tomorrow tomorrow.

Sea I think we got $1000 deduction that we didn't get last year, but I didn't print them up yet so can't compare what it was. Our tax rebate stimulus thingy has long been spent. But glad to hear you get one for 2008!

Thanks again!

Thanks again guys.

Seamonkey
Moderator

09-07-2000

Monday, January 26, 2009 - 11:10 pm   Edit Post Move Post Delete Post View Post Send Seamonkey a private message Print Post    
OK, had to go upstairs anyway..

This is from columnist Humberto Cruz..

",,, people who don't itemize could claim an extra standard deduction of up to $1,000 for property taxes paid in 2008 and 2009."

"The original tax break for the 2008 tax year only was included in the Housing Assistance Tax Act passed by Congress in July. In October, as part of the Emergency Econominc Stabilization Act - better knows as the "bailout" bill - Congress extended the deduction to 2009, hoping to help homeowners who won't get any income tax break out of their property taxes."


Then he talks about property taxes being among the typical itemized deductions, but of course those have to be higher than the standard deductions, which, for the 2008 tax year, were $5,450 for singles and $10,900 for couples filing jointly.

Ah I had the criteria a bit off..

"The deduction is the lower of property taxes paid duing the year, or $500 for single filers or $1,000 for joint filers."

Also people 65 and over get a higher standard deduction for 2008 tax year. (which I ignored since it doesn't apply to me).

But the property tax one will give me an extra $500 deduction.

Seamonkey
Moderator

09-07-2000

Monday, January 26, 2009 - 11:12 pm   Edit Post Move Post Delete Post View Post Send Seamonkey a private message Print Post    
Hmm, that thing about state tax refunds (which isn't me since I didn't pay them any ahead of time), but in California the threat is that they will be issuing IOU's in lieu of refunds after a certain date.

Serate
Member

08-21-2001

Monday, January 26, 2009 - 11:14 pm   Edit Post Move Post Delete Post View Post Send Serate a private message Print Post    
OK so now I have NO idea where that extra $1000 deduction came from!

Thanks for the info. I'll be doing my dad's taxes at the end of the week and he's 70. Tho his shouldn't be too hard. No mortgages, no interest, nothing.

Serate
Member

08-21-2001

Monday, January 26, 2009 - 11:21 pm   Edit Post Move Post Delete Post View Post Send Serate a private message Print Post    
I'd like to get ours down to getting hardly any refund, or even paying just a tad. Just with moving all around the past 4 or 5 years, and last year buying a house, this year dropping one of the kids off, I'm afraid I'll adjust it too much and we'll owe a huge chunk.

Seamonkey
Moderator

09-07-2000

Tuesday, January 27, 2009 - 2:12 am   Edit Post Move Post Delete Post View Post Send Seamonkey a private message Print Post    
Well I hate to pay anything ahead if possible, but I suspect that IF I end up owing for this year, then I'll be saddled with quarterly estimates again. After virtually no or little income I started social security early (which means I get less) about half way through the year, also took one IRA distribution and from a 401K rollover started getting $500 a month (just for the last two months of 2008) and no taxes paid on any of that, yet.

But if you can itemize and it is more than standard, go for it!

For your Dad if he's single, he can take an extra $1,350 standard deduction for 2008 ( joint filing spouses both over 64 can take $1,050 each.)

Serate
Member

08-21-2001

Tuesday, January 27, 2009 - 8:52 am   Edit Post Move Post Delete Post View Post Send Serate a private message Print Post    
Thanks again Sea for the info! Yes he's single. Never changed his W4 to reflect my mom's death so income withheld as if he was married, but he "retired" in March and has 10% held from his SS so he should be ok.

Might be looking into the 10% withheld now that SS is all he gets, but then again he's always been one that would rather pay in a little extra to get that refund check in Jan/Feb. Savings that he couldn't do on his own.

Serate
Member

08-21-2001

Tuesday, January 27, 2009 - 9:27 am   Edit Post Move Post Delete Post View Post Send Serate a private message Print Post    
Woo hooo both Federal and State returns have been accepted! Federal to be direct deposited w/i 2- 3 weeks. State will probably be with in a few days. Iowa's really quick with E-file and direct deposit returns.

Mocha
Member

08-12-2001

Tuesday, January 27, 2009 - 10:07 am   Edit Post Move Post Delete Post View Post Send Mocha a private message Print Post    
I've already gotten my State refund. Filed it last Sunday.

Dipo
Member

04-23-2002

Tuesday, January 27, 2009 - 10:12 am   Edit Post Move Post Delete Post View Post Send Dipo a private message Print Post    
How do you guys do your taxes so soon? I haven't even gotten my W2's or 1099s from the bank.

Wargod
Moderator

07-16-2001

Tuesday, January 27, 2009 - 10:21 am   Edit Post Move Post Delete Post View Post Send Wargod a private message Print Post    
Some people get all their forms pretty early, Dipo. I had the mortgage tax statement in early Jan and my W-2's came the day after that. Bil got his W-2's (only thing they really have to wait for) last week. If I only had to worry about my stuff, mine would be done, but Darren's company doesn't send their W-2's out til the last week of Jan. and I still haven't recieved the banks.

Denecee
Member

09-05-2002

Tuesday, January 27, 2009 - 10:31 am   Edit Post Move Post Delete Post View Post Send Denecee a private message Print Post    
I'm too scared to even look at what our tax situation will be. DH claims 0 on his w4 and I claim just married, so I should hope it came out about even. I did re-finance the mortgage so that will help some.

Kitt
Member

09-06-2000

Tuesday, January 27, 2009 - 10:38 am   Edit Post Move Post Delete Post View Post Send Kitt a private message Print Post    
My dh got a letter from the people who hold his 401K saying that this year they won't get their 1099s out until Feb 17th, due to some new government thing for 2008 that allows an extension. So it'll be even longer before we can get to do ours. Not that I'm looking forward to it.

Serate
Member

08-21-2001

Tuesday, January 27, 2009 - 10:51 am   Edit Post Move Post Delete Post View Post Send Serate a private message Print Post    
Hubby's W2's came yesterday - pretty late for his company, usually get by the 15th. Interest at our three banks was not over $10 so none would send a 1099 out - just took the year end total off of December's statements, mortgage paper came about Jan 6th which has interest paid and real estate taxes, and hubby's 401K stuff is on his W2's. We don't get anything from the bank on 401k unless we spend any, and aint going to do that and get the penalty. Iowa and Kentucky's state refund form came early in January letting us know what we had to report, tho it's the first year we've ever got a form, in the past always used numbers off the previous year's tax return.

Not very often does it pay to not be rich or not have alot of investments, but tax time is one of those times.

Mocha
Member

08-12-2001

Tuesday, January 27, 2009 - 11:25 am   Edit Post Move Post Delete Post View Post Send Mocha a private message Print Post    
I got my W2s 1st week in January an I file electronically. I have no savings or investments so don't have to wait for other forms cept my mortgage statement which came early too.

Dipo
Member

04-23-2002

Tuesday, January 27, 2009 - 12:11 pm   Edit Post Move Post Delete Post View Post Send Dipo a private message Print Post    
Darn, I wish I was so lucky. I got that same thing Kitt for the 401K. And you would think I would already have my mortgage stuff, but I don't.

Seamonkey
Moderator

09-07-2000

Wednesday, January 28, 2009 - 5:16 am   Edit Post Move Post Delete Post View Post Send Seamonkey a private message Print Post    
I definitely have more forms to come.. have gotten several, but I had an IRA distribution, a 401-K rollover (what was left after it lost over half its value :-( ), started social security and cashed out an annuity that had taken a hard hit and moved it elsewhere. So I have forms and more forms to come. Hey, at least I don't have a mortgage.

Dipo
Member

04-23-2002

Wednesday, January 28, 2009 - 9:36 am   Edit Post Move Post Delete Post View Post Send Dipo a private message Print Post    
LOL, Seamonkey, I am actually happy to have a mortgage, this will be the first year that I get a good refund (I hope). I did get my W2 and my mortgage statement yesterday. Damn, I forget all the income I have that isn't taxed because it is for 401K or flexpay and stuff like that. My SS wages and taxable income are way different. I would like to take home that SS wages, LOL.

Seamonkey
Moderator

09-07-2000

Thursday, January 29, 2009 - 3:51 pm   Edit Post Move Post Delete Post View Post Send Seamonkey a private message Print Post    
Oh yeah, that used to be a great deduction, but once I wasn't making a ton of taxable income, since I was laid off and then both parents had died, and I wasn't getting back to earning, I went ahead and paid that mortgage off and never had one here.

Yes you will enjoy entering in that mortgage interest amount and of course your property taxes too :-)

Serate
Member

08-21-2001

Thursday, January 29, 2009 - 4:45 pm   Edit Post Move Post Delete Post View Post Send Serate a private message Print Post    
Iowa refund direct deposited today!

Tntitanfan
Member

08-03-2001

Sunday, March 01, 2009 - 11:12 am   Edit Post Move Post Delete Post View Post Send Tntitanfan a private message Print Post    
With the exception of investment houses, all tax documents are supposed to be in the mail by the last day of January. Due to the wildlly fluctuating market this year, there was an extension for investment entities to 2/15. Since that date fell on a Sunday, there were two more days of "grace" for the mailing.

All of the info I have read here re the property taxes deduction is correct. Just be sure to check the little box that says such deduction is included in the total deduction taken.

This is entirely different from the Stimulus Payment last year. A deduction reduces your tax liability. The SP was a flat rebate whether or not you HAD any tax liability.

There is another similar program happening this year for SS, SSI, RR, and Disabled Vets ONLY. AND these people do not have to file a return to receive the money. The information will be gathered from government records about who is/is not eligible. Those of us who prepared 200 extra tax returns each last year are pleased to hear this!