Author Topic: claiming zero... (Read 536 times)

Eagler · « **on:** February 11, 2003, 09:13:21 AM »

dependents all year, is that how you guys get a refund?

I claim three, my wife claims zero, home owner (lower interest rate loan doesn't help here) .. having to pay again, over 2k - depending on my creativity

Found out I lost the $600 child credit as youngest turned 17 in Nov last year

I want a refund! What am I doing wrong ...........

Creamo · « **Reply #1 on:** February 11, 2003, 09:17:55 AM »

Depend on a good professional tax service’s "creativity" instead. I hear they can work wonders.

ra · « **Reply #2 on:** February 11, 2003, 09:23:21 AM »

Why do you want a refund? It just means you sent in too much. You should go for owing them as much as you can without incurring a penalty.

ra

Eagler · « **Reply #3 on:** February 11, 2003, 09:30:26 AM »

Quote

Originally posted by ra
Why do you want a refund? It just means you sent in too much. You should go for owing them as much as you can without incurring a penalty.

ra

actually there is a penalty this year and last - $30,$50 something like that...

just seems crazy they want more - ya, I am not for tax cuts

capt. apathy · « **Reply #4 on:** February 11, 2003, 10:02:41 AM »

2 words 'creative acounting'

j/k

actually you need to shop around for an accountant. find one who is honest but not afraid to claim EVERY deduction you are allowed.

there are guys I work with who where told by their accountants that they could claim either, their room or meal expenses when out of town but not both. or the aren't told about minimum daily deductions (amount you can claim without itemising for days you where out of town on work), or mileage deductions (you can deduct about $.35 per mile for each mile you travel over 50 from your house) that don't require you save every car expense recept.

save your receipts from anything you give 'Goodwill' or the like.

I claim married and 9 on my w-4's and get about 2-4k back at the end of the year.

Ripsnort · « **Reply #5 on:** February 11, 2003, 10:12:44 AM »

Don't squeak, I get to pay in $2300 this year. We made $12k more than last year, putting us into a very high tax bracket.

Vermillion · « **Reply #6 on:** February 11, 2003, 10:17:23 AM »

Yes, if you claim less dependents for withholding purposes (you still claim the correct amount on the income tax form) they will hold more out of each paycheck, but you will be much less likely to end up paying at the end of the year.

Back when I claimed "1" deduction for myself, I ended up having to pay like $300-$400 at tax time each year, plus owing money to the state. But when I claimed "0" deductions, I paid slightly more on each paycheck, but I end up getting a healthy refund each year.

You pay the same amount, its WHEN you pay it. A little more each month and maybe some back? Or owe alot each spring to the IRS.

CyranoAH · « **Reply #7 on:** February 11, 2003, 10:18:01 AM »

Classic Engineer Joke:

An engineer, a scientist, a mathematician and an accountant are selected for a very simple contest. They must enter a room and solve a simple problem. How much is 2+2?

The Engineer enters the room and goes out in some 20 seconds, saying "well, rounding up, the result is approximately 4".

The Scientist goes in, and after 2 minutes, comes out and says "the result is 4 with a .02% error probability".

The Mathematician is next, and it takes him 3 hours, but at last he comes out and states "the series converges and the limit is 4".

The accountant calls the judge to the room, locks all doors, closes all windows and asks: "how much do you want it to be?"

Daniel

Eagler · « **Reply #8 on:** February 11, 2003, 10:18:41 AM »

Quote

Originally posted by Ripsnort
Don't squeak, I get to pay in $2300 this year. We made $12k more than last year, putting us into a very high tax bracket.

that's about what the first go round came to for us also .. same last year but without the 12K increase either year....

yes, we save all goodwill. amvets receipts. don't travel anymore so that's out... like to know how you claim 9 and don't have to pay ?? you donate your $250,000 summer home to charity??

is there a limit to the number of years you can claim a small (home) business a loss? I think I heard 5 years about 6 years ago ...

SOB · « **Reply #9 on:** February 11, 2003, 10:38:08 AM »

Tithing = Charitable Contribution. Give more to your church. If you aren't using Turbo Tax or the like, but a copy and use it...it can help you find lots of deductions that you wouldn't think about.

SOB

capt. apathy · « **Reply #10 on:** February 11, 2003, 11:18:35 AM »

I used turbotax a couple years ago. huge mistake. first it had 'issues' and wouldn't run corectly, tech suport was fee based (per minute) and they count the time they put you on hold. they ended up e-mailing a patch to get it to work after about $80 in tech fees. then it's electronic filing had problems. It billed me for the filings on the charge card but only actually filed the federal. so a couple years later (didn't notice my lack of a $30 refund from the state) OR Dept of Rev. wants to know why I never filed.

so I explain the problem to them, they say send in a copy of the return and it will be 'no problem'. but I did a format on my HD since the year in question. of course I did a back up of important files but when I went to reinstal turbotax so I could open the file it had the same issue again.

so i figure 'great, not only did this program end up costing me $80 more than the sticker price, and screw me by not filing state, but now I'm going to have to pay $80 again to get at my record' but no, things couldn't go that well. they no longer suported the version for the year in question.

so I end up paying an accountant to do them again anyway. the only upside to this is that when the accountant did them she came up with about $400 from state instead of the $30 I got with turbotax. I then had her redo my federal and send in an emended return changing my return from $1600 to $2300.

all totaled the bottom line of my turbotax experience was-
about $75-100 for the program
$80 for tech suport
major headache with the state tax division
and the privalage of letting the gov't keep about $1100 of my money for a few years interest free.
and paying the same money for the accontant as if I'd skiped turbotax from the start

bottom line F..K turbotax

Ripsnort · « **Reply #11 on:** February 11, 2003, 11:21:56 AM »

I used Turbo tax for the first time last night. Normally we pay someone $200 to do it for us...this year, $39 for TT, plus $10 rebate, write off the TT software, life is good. I'll buy TT again next year.

AKIron · « **Reply #12 on:** February 11, 2003, 11:25:00 AM »

I've used Turbo Tax for several years. Always seemed to work well. No idea if it took me down the path of least taxes though.

Ripsnort · « **Reply #13 on:** February 11, 2003, 11:29:48 AM »

Quote

Originally posted by AKIron
I've used Turbo Tax for several years. Always seemed to work well. No idea if it took me down the path of least taxes though.

Compared to previous years returns, and income increase and bracket, its within 1% of my previous tax return years. For 1%, I'm not willing to take it to an account to double check.(shrugs)

capt. apathy · « **Reply #14 on:** February 11, 2003, 11:30:06 AM »

I may have just had a bad experience.

i'd recomend if anyone was thinking about using it, that they go ahead and pay an accountant, then do the turbo tax on their own (it's much less expensive than it was years ago anyway) then send in wichever return has the better return. then if it gives you as good a refund (or at least not enough less to justify paying an accountant) then skip the accountant next year.

personally though there is no way I'd set my self up for that kind of headache again after what I went through with it.

ps- if you get audited with tubo tax you'll have no accountant to go with you to your audit.