US INCOME TAX!

Did ours yesterday, rah turbotax - made even a complex messy year (self employment, employment, unemployment) not too daunting.

those of you in creative or otherwise non-regular-paycheck types of careers might look into an accountant who specializes in that kind of thing. i dunno know common it is, but there's a youngish dude here who runs an accountancy shop pitched to artists, performers, freelancers and the like. he doubles his office as an art gallery in off hours. countdown to quiddities article on the 'hipster accountant' in 10, 9...

uh, i resemble that dude.

Did turbotax on the web, but I'm just going to file both my 2010 and 2011 at the same time. I can't e-file this year, so everything's getting printed out and chucked inna manila envelope.

do not put multiple years' returns in the same envelope when mailing them in. things tend to get lost/misplaced.

I need to remember to send in my state tax payment, all twelve bucks of it.

Ah, good suggestion

Debating regular TurboTax or the $150 version that says it helps with business/self-employment deductions.

for $150 I'll do your taxes.

About six years ago I learned that I owed the IRS about $200 for taxes filed three years earlier. Yet I've gotten returns every year since. Am I to assume that IRS got its money by deducting the amount from my return at some point?

return = refund

xp - that is highly likely.

That's what everyone's told me. But you'd think the IRS would send a letter or something letting me know it'd done it.

they generally do send letters when they do this.

Did you learn about it from the IRS, or from your tax preparer?

IRS.

i've been reading some message boards about the irs and i'm pretty sure you're going to prison? idk

b-b-but I've said nice things about Reagan!

I always do the taxes for my household. I have for my entire adult life. This encourages me to keep our finances quite simple and straightforward, but it also means I fully understand where our money comes from and where it goes. This seems a Good Thing.

lol last time I turn to a bunch of internet hardmen for tax advice -- I'm saving my $20 and copying the stuff that it filled out for me and submitting a hard copy.

gah our tax system really sucks can't believe I owe money MAYBE I SHOULD GET SOME HOUSES AND KIDS

I haven't had a refund in years. But then I don't pay a lot from my check either. I basically pay the minimum to avoid the under payment penalty.

MAYBE I SHOULD GET SOME HOUSES AND KIDS

Houses? Sure. Buy small ones, tho. And if you want to come out money ahead, skip the kids.

xxp - maybe it's because you make a lot of money (relatively speaking), iatee?

If he were making money, he wouldn't be paying taxes. /half-joking

no, it's true -- it is really atrocious (to me) the way passive (investment) income is taxed so low relative to earned income. They should be taxed the same imo.

rly, rly do not make a lot of money

More than $15,000 per annum, amirite?

more...by exactly $3

well... there you go!

the eitc needs to reward poor people *without kids* not poor people *with kids*

People with kids consume more apple pie and play more baseball. This is what makes America great.

dude, if you owe federal tax on $15k a year, either it's from self-employment income or your withholding is seriously fucked.

http://www.businessweek.com/printer/articles/18010-the-people-vs-dot-the-irs

yeah my withholding is messed, but I'm mostly just offended that there isn't a single deduction or tax credit that I (/ the gf) qualify for.

Do you pay student loans? Deduct the interest.

no I don't maybe I'll get some

alfred: statute of limitations for audits is 3 years, and 10 years from date of assessment for a tax liability. i think you're fine.

for COLLECTION of a tax liability.

Thanks! I also read, however, that if you DON'T file taxes at all there's no statute of limitations. So be warned.

there isn't a single deduction or tax credit that I (/ the gf) qualify for

Not even the 'standard deduction'? Even if you can be claimed as a dependent by someone else there is a minimum standard deduction of $950, and you and the gf might qualify for that deduction up to $5800 - presuming you are each filing as single. Ferret out IRS publication 501 and fill in the worksheet on page 24. And don't forget about the 'personal exemption', either!

yeah I meant beyond the standard deduction

not that smaller deductions would matter w/ that in mind, it's still insulting that there aren't any that affect me. my gf could have deducted books n'stuff for grad school but it didn't come close to approaching the standard deduction.

i don't have any figures, but there are many millions of wage earners who don't itemize, so you are in a crowded boat. Mortgage interest is the biggest reason to itemize. Pretty much the only other way to make itemizing pay off for ordinary people is to have a shit ton of medical expenses and who wants that?

so my gf is filing a schedule c for her grad stipend - can we submit that without pay stubs?

that's a good question! but i don't know the answer. no expert, etc.

generally speaking, the documentation is only really going to matter if you're audited, and the audit risk on small potatos tax returns is vanishingly small. i would expect her grad school has a record of it somewhere, so if they try to pinch you, you can probably dig up some proof and beat the rap. just read the irs instructions slowly and carefully before you file to make sure you understand them.

yeah I think a lot of her grad school friends just pretend like they don't have to pay taxes

xp - was it reported on a 1099 Misc? Generally stipends/fellowships for grad school are considered wages (not subject to self-employment tax).

hmm other things I read online suggested a schedule c but maybe 1099 misc is better.

Often these things are reported on Form 1098-T (which reports tuition/fees payments made). The amount in the scholarship/fellowship box will be significantly larger than the amount in the box for tuition/fees paid. The difference would be considered taxable income. However, you can reduce that by relevant expenses.