Taxes

[Saggy Aggie]

This is my first year dealing with taxes legitimately so i honestly don't know much.

My taxes seem somewhat complicated since I was a student through may of 2013. I then started working in June and have worked since. I know there are a lot of things that are tax deductible like interest on student loans, so I'm just trying to figure out whats the best way to maximize my return.. if I get anything...

I'm hoping I do since I claimed 0 dependents.. but ya never know with the IRS. Should I have a professional do it, or can i do something like H&R block or turbotax fairly easily?

[regaleagle]

Sounds to me like you have a simple return. HR Block would be an inexpensive and efficient way for you to go this year. They can help you get back your overpayment quickly. You should have a refund coming back to you this year....just from what you have stated above.

[LH Panther Mom]

I've never used Turbo Tax, but I'm sure it works roughly the same as H&R Block. It's not difficult & the questions are straight forward. You should be able to do yourself, but if you're not sure, you may want to go to someone. I've used H&R Block for years, through a relocation move where we rented out our first house & built another, then several years later when we sold the first house.

[Saggy Aggie]

Is it a general rule that if you claim 0 exemptions, you will not owe in come April?

[Farmersfan]

Turbo Tax online is very simply and most of the time it will be free. A simple 1040EZ is done by just answering questions. You can also set up a pin and then use them again next year and they will import all your previous information....

[44INAROW]

Turbo Tax online is very simply and most of the time it will be free. A simple 1040EZ is done by just answering questions. You can also set up a pin and then use them again next year and they will import all your previous information....

I agree with Farmersfan ... our youngest son has used the 1040EZ via TurboTax the last couple of years (well, actually I used it for him) Now that he's working fulltime - it will be interesting to see how his turns out - before, he always got 100% back - not so sure this time.. Our accountant suggested he use the Turbo Tax, so we felt comfortable with it for his sitatuion...

[Old Tiger]

This is my first year dealing with taxes legitimately so i honestly don't know much.

My taxes seem somewhat complicated since I was a student through may of 2013. I then started working in June and have worked since. I know there are a lot of things that are tax deductible like interest on student loans, so I'm just trying to figure out whats the best way to maximize my return.. if I get anything...

I'm hoping I do since I claimed 0 dependents.. but ya never know with the IRS. Should I have a professional do it, or can i do something like H&R block or turbotax fairly easily?

If you have school and such on them, I'd let H&R Block walk you through it. They charge quite a bit but worth it your first time.


2014 Taxes you can do on your own because all you will likely get is a w2 1040ez and 1099-INT from your bank. Unless you are self employed and get a 1099 or you plan to itemize it will be easier to let someone handle it for you.


I already filed mine for 2013 on my own because it was just a w2 and 1099-INT as stated above. Just waiting for January 31. I used Turbo Tax Free.

[Old Tiger]

Is it a general rule that if you claim 0 exemptions, you will not owe in come April?

Generally, but not always. I will be getting back close to $1900.

[YTBulldogs]

Claim zero SA, and yes---you should not have to pay anything (often get a refund) when you file. Younger filers often see the extra cash per check they can get NOW, and want it. Then, struggle come tax time.

[Saggy Aggie]

Claim zero SA, and yes---you should not have to pay anything (often get a refund) when you file. Younger filers often see the extra cash per check they can get NOW, and want it. Then, struggle come tax time.

Yeah that's exactly what I did not want to do. I claimed 0 exemptions last year and plan to continue doing so.

[Macarthur]

Turbo Tax online is very simply and most of the time it will be free. A simple 1040EZ is done by just answering questions. You can also set up a pin and then use them again next year and they will import all your previous information....

This.

I've used turbotax for years. It's good.

It walks you through it pretty well. You don't have to be a finance major to do it yourself.

[Saggy Aggie]

Millions of people screw themselves out of money by filing their own taxes though...

[Old Tiger]

Millions of people screw themselves out of money by filing their own taxes though...

That is if you are itemizing or have multiple forms. As I stated earlier with school on your 2013 tax information let a company such as H&R Block handle it. Also H&R Block employees aren't Tax experts, a lot of times they are just hourly people hired for tax season.



For 2014 you will likely only have a W2 and 1099-INT form which are simple. Turbo Tax does walk you through it and makes it easy as heck.

[ronwx5x]

I've used TurboTax Basic for years. I buy it because I do my own taxes plus those of my sister. We are both retired, have W-2's, 1099's, 1099R's. INT, Div and always qualify to itemize because of property taxes and interest. Piece of cake. My son-in-law uses the free TurboTax online. I think we leave nothing on the table. As a single person, you should owe nothing and probably have a refund coming if you claimed 0 dependants. Since it's free online, use it and for reassurance have H&R Block do yours the first time and compare them.

[slpybear the bullfan]

My sister does Taxes for HRBlock. We did the Turbo Tax thing until we started buying and selling businesses and now its just too easy to drop things off and have it all done for us.

[waterboy]

NEVER, EVER use H & R Block! I used to work there. They will rob you blind, not to mention there are some that don't know what they're doing. I would suggest finding a certified CPA to do them if you find it difficult to do them on your own. I used to do them myself, but after taking them to a CPA I started getting a whole lot more money back for some reason. There's deductions most people don't know about, and they add up quick. I paid a CPA about $100 to do my taxes last year, and got back nearly $5,000. I used to average about $2,500 to $3,000 on my return when I was filling them out myself.

[Saggy Aggie]

I just did it online on h&r block. I'm getting a pretty good return. Probably could've gotten more if I had taken it to a pro but I'm happy anyways

[Old Tiger]

I just did it online on h&r block. I'm getting a pretty good return. Probably could've gotten more if I had taken it to a pro but I'm happy anyways

Enjoy that help you got with the student stuff on there. It will greatly reduce without that next year for you.

[Saggy Aggie]

Enjoy that help you got with the student stuff on there. It will greatly reduce without that next year for you.

Like I said when you commented on my Facebook, I didn't get any school credits for 2013.

I think the reason why is because my school was 100% paid for by grants/scholarships or loans. I didn't pay anything out of pocket at the time, therefore I get no return.

I'm now paying back loans so I get the interest from that deducted, which amounted to 285$ off my taxable income and maybe like 75 additional dollars on my return since I've only started paying that back in November.

I got a pretty big return but that was based solely on me claiming 0 exemptions.

[LH Panther Mom]

I just did a coworker's taxes using NO tax program, just filled out the necessary forms off of IRS.gov. She's getting over $4600 back. AND, I even printed off a W-4 for her so that she can adjust her withholding. It's all fine & good to get a good size refund, but when you have a baby, are flat broke all year & have times where you barely have enough money to buy gas, it's time for a change.

SA, you "might" have gotten more, but you also would've had the out of pocket paying someone to do it.

[bwdlionfan]

I just did a coworker's taxes using NO tax program, just filled out the necessary forms off of IRS.gov. She's getting over $4600 back. AND, I even printed off a W-4 for her so that she can adjust her withholding. It's all fine & good to get a good size refund, but when you have a baby, are flat broke all year & have times where you barely have enough money to buy gas, it's time for a change.

SA, you "might" have gotten more, but you also would've had the out of pocket paying someone to do it.

I used to get $2,000-$3,000 back every year. I finally realized it was dumb to let the government hold on to that money all year when I could have it in an account drawing interest or overpaying my house principal to reduce my interest that I pay. After adjusting here and there throughout the years, when I did my taxes this year it came out to a $60 refund. I try to get it as close to zero as I can without having to pay anything.

[panfan]

I used to get $2,000-$3,000 back every year. I finally realized it was dumb to let the government hold on to that money all year when I could have it in an account drawing interest or overpaying my house principal to reduce my interest that I pay. After adjusting here and there throughout the years, when I did my taxes this year it came out to a $60 refund. I try to get it as close to zero as I can without having to pay anything.

Yep - I try to get close to zero or pay, but never let the gubment have my money while it could be in my pocket. Last several years, I've had to pay, and yep it sucks coming up with the money at the end, but at least they didn't get it early.

[Saggy Aggie]

Yep - I try to get close to zero or pay, but never let the gubment have my money while it could be in my pocket. Last several years, I've had to pay, and yep it sucks coming up with the money at the end, but at least they didn't get it early.

What difference does it make if they get it now or in april?

You could paya little extra on your mortgage monthly or make a lump sum in april? Whats the benefit? How much interest are you gonna gain in an account? probably none.. because if you have the money, i doubt you save that tiny amount of money you gain every month.

And yes LHPM, not worth the hassle. Thats why i did it on my own.

[BwdLion73]

One problem with getting the extra money real time with your paycheck is most will not figure it in or invest in paying off a bill early. Most young people see this as free money and would not save that much in a year if they had too. I still remember the excitement as a youngster getting that free check!

Many years later April 15th has a completely different meaning for me...paying a CPA, writing a check to the U.S. Treasury and getting the next quarterly payment ready. :crying:

I overheard two kids talking about what new Tattoo they were going to get with their check. :)

[Saggy Aggie]

One problem with getting the extra money real time with your paycheck is most will not figure it in or invest in paying off a bill early. Most young people see this as free money and would not save that much in a year if they had too. I still remember the excitement as a youngster getting that free check!

Many years later April 15th has a completely different meaning for me...paying a CPA, writing a check to the U.S. Treasury and getting the next quarterly payment ready. :crying:

I overheard two kids talking about what new Tattoo they were going to get with their check. :)

Claim 0 exemptions and forget about paying in in April

[bwdlionfan]

What difference does it make if they get it now or in april?

You could paya little extra on your mortgage monthly or make a lump sum in april? Whats the benefit? How much interest are you gonna gain in an account? probably none.. because if you have the money, i doubt you save that tiny amount of money you gain every month.

And yes LHPM, not worth the hassle. Thats why i did it on my own.

I keep a savings, and I have an annuity that I don't touch, but those are held back for extreme emergencies only. Even though I make enough money to not live paycheck to paycheck, I choose to live paycheck to paycheck because when I get a new paycheck, everything that was left from the previous one goes down as an extra payment on the house. I'm on track to pay my house off in 2018 that I bought in fall of 2009 with an interest savings of over $80,000.

So no, I don't want the government hanging on to a few thousand dollars that I could have put down on the house a year earlier.

[Saggy Aggie]

I keep a savings, and I have an annuity that I don't touch, but those are held back for extreme emergencies only. Even though I make enough money to not live paycheck to paycheck, I choose to live paycheck to paycheck because when I get a new paycheck, everything that was left from the previous one goes down as an extra payment on the house. I'm on track to pay my house off in 2018 that I bought in fall of 2009 with an interest savings of over $80,000.

So no, I don't want the government hanging on to a few thousand dollars that I could have put down on the house a year earlier.

I understand the concept completely.

I'm doing the same thing with my student loans. I graduated last may, had a 6 month grace period and I've now paid about 6K in 3 months because my extra money goes into. I'm on track to pay a 22K loan by Sept 2015. It was supposed to be a 10 yr loan.

I'd just rather make a 2500$ payment in april than an additional 200/month. Basically same difference, except I dont have to pay the govt in april.

[Manso/V8]

My tax return usually ends up around 20 pages, I always pay a CPA to do them.

I would rather underpay than overpay, because once the government has your money, they aren't that quick about returning it.

I think I am gonna owe about $8,000 to $10,000 in April.......

[Tejastrue]

Maybe you need a new CPA.

[Manso/V8]

Maybe you need a new CPA.

Naw, I usually underpay and make it up with quarterly payments.

[BwdLion73]

Claim 0 exemptions and forget about paying in in April

I'm not sure if you grasp the difference between being self employeed/business and long form vs. 10-40ez.

;)

[Saggy Aggie]

My tax return usually ends up around 20 pages, I always pay a CPA to do them.

I would rather underpay than overpay, because once the government has your money, they aren't that quick about returning it.

I think I am gonna owe about $8,000 to $10,000 in April.......

I got my return in about 10 days

[Saggy Aggie]

I'm not sure if you grasp the difference between being self employeed/business and long form vs. 10-40ez.

;)

Maybe I missed it but I never saw you say anything about being self employed....

[Manso/V8]

I got my return in about 10 days

If all or most of your income is from salary and you don't have a lot of deductions, it is pretty straight forward, but it doesn't always work as smoothly. As you add some things like rental property, business use of a personal car, self-employment, farm income, etc it get a lot more complicated. I have had big refunds held up in a black hole of government inefficiency for almost a year with no means of getting it sped up.

[BwdLion73]

Maybe I missed it but I never saw you say anything about being self employed....

Your correct I did not say I was self employed. Just thought you would understand that if I payed in $ every year and made quarterly payments it would indicate I did not work a 9 to 5 job. I dont disagree with your points...I just have a different view of tax time.

[Saggy Aggie]

Your correct I did not say I was self employed. Just thought you would understand that if I payed in $ every year and made quarterly payments it would indicate I did not work a 9 to 5 job. I dont disagree with your points...I just have a different view of tax time.

yeah, gotcha.

[Saggy Aggie]

If all or most of your income is from salary and you don't have a lot of deductions, it is pretty straight forward, but it doesn't always work as smoothly. As you add some things like rental property, business use of a personal car, self-employment, farm income, etc it get a lot more complicated. I have had big refunds held up in a black hole of government inefficiency for almost a year with no means of getting it sped up.

Makes sense. Hadn't really thought much into the complicated returns as it hasnt really applied to me yet thus far.