Tax confusion

[DAAS]

SO On the very last page where I click file taxes my refund reads as follows.

Federal: $750
State:$250
Turbo Tax Fees: $89
Direct deposit: $661

Basically My state refund just vanished?? Its telling me the amount being deposited into my account is the federal minus the fees. Why is this? What happened to the state. The page before told me I was getting $1,000 back and the turbo tax fees only totaled $89.

Am I missing something?

[FRDave]

You will file them seperately. Usually a charge for both, some times being able to e-file state for free.

[DAAS]

I filed both of them. It gave me the return for both. But it only showed the deposit as if my state was not being deposited.

[almostgone]

Does your state have a direct deposit option? A fee years ago I ran into the same thing. My state refund was mailed to me. Don't know if that's what's happening w/ yours....just a thought. Since then my state has been sent direct deposit.

[lovbyts]

Why are you paying $89 for turbo tax 1st thing? I have been using it for years and pay from $0.00 - $25.00 including electronic filing and deposit. Start looking for discounts. Most banks, insurance companies and many other places you probably belong to offer a discount code.

#2, only $750 back? Are you using your tax deductions such as charitable contributions? Church contributions, Police, fire, disaster contributions? Most people overlook these and you dont need receipts up to a certain amount, around $2500 for each place per year.

Unless you really have your deductions from each paycheck scrutinized to minimize your taxes through out the year you are shorting yourself probably thousands.

As asked above, make sure your state has a state tax, I know mine does not.

[diesel101]

Tax refund? what is this thing you speak of?

[Times Roman]

Why are you paying $89 for turbo tax 1st thing? I have been using it for years and pay from $0.00 - $25.00 including electronic filing and deposit. Start looking for discounts. Most banks, insurance companies and many other places you probably belong to offer a discount code.

#2, only $750 back? Are you using your tax deductions such as charitable contributions? Church contributions, Police, fire, disaster contributions? Most people overlook these and you dont need receipts up to a certain amount, around $2500 for each place per year.

Unless you really have your deductions from each paycheck scrutinized to minimize your taxes through out the year you are shorting yourself probably thousands.

As asked above, make sure your state has a state tax, I know mine does not.

EXACTLY!

ffor a few bucks more, you can have a bona fide CPA do your returns

[austinite]

EXACTLY!

ffor a few bucks more, you can have a bona fide CPA do your returns

Most of them never have your interest.(at least the one's Ive dealt with). Ripped off one too many times. This time of year, they want you in and out the fastest way possible.

"Ok... yeah yeah... ok, enter enter enter.... You owe $35,259. Do you want to pay now or submit an installment agreement?"... Bye... NEXT!

[Times Roman]

Most of them never have your interest.(at least the one's Ive dealt with). Ripped off one too many times. This time of year, they want you in and out the fastest way possible.

"Ok... yeah yeah... ok, enter enter enter.... You owe $35,259. Do you want to pay now or submit an installment agreement?"... Bye... NEXT!

it's not tough.
they will/should ask for this years forms, and last years returns. this is the basis for this years returns. things don't usually change too much, one year from the next.
they will ask you a bunch of questions, could be as long as a couple of minutes.
total time, start to finish, with a CPA that is efficient and knowledgable is 20 minutes.

the assumption is that only fed/state, and 1040/540, and schedules A & B
I could see a schedule C costing more, and taking more time
schedule D is for investors that have reportable dividends, and may go as no additional charge beyond A & B, depending on how extensive your sched. D activity is for the year
Sched E is for those that have reportable rental income - will increase the basic fee
schedule F is really more agriculturally based, for ranches and farms, that sort of thing. this too increases the basic fee

There's really not much to it. The software is very good, and if you know what you are doing, the data goes in fast. (not turbo tax)

I would expect for most of us, the fee at a smaller cpa firm should be between $150 and $250

make sense?

[Times Roman]

I think that for most tax practioners, they don't know the tax law as well as you think they might. The sobering truth is, very very few practioners fully know the tax code. It's just too damn big and complex. Instead, tax practioners are adept at knowing the right questions to ask, and knowing how to manage the inputs into the software. At some point, you really must trust the software. Some of this stuff, if you were to try and do it manually, it would be extremely time consuming, and would increase the risk of errors.

[RaginCajun]

I think that for most tax practioners, they don't know the tax law as well as you think they might. The sobering truth is, very very few practioners fully know the tax code. It's just too damn big and complex. Instead, tax practioners are adept at knowing the right questions to ask, and knowing how to manage the inputs into the software. At some point, you really must trust the software. Some of this stuff, if you were to try and do it manually, it would be extremely time consuming, and would increase the risk of errors.

You bring up a thought of mine.

Do CPA's have to go thru a re-certification process in order to keep up with all the new laws our wonderful president and congress has put through every year?

[DAAS]

Why are you paying $89 for turbo tax 1st thing? I have been using it for years and pay from $0.00 - $25.00 including electronic filing and deposit. Start looking for discounts. Most banks, insurance companies and many other places you probably belong to offer a discount code.

#2, only $750 back? Are you using your tax deductions such as charitable contributions? Church contributions, Police, fire, disaster contributions? Most people overlook these and you dont need receipts up to a certain amount, around $2500 for each place per year.

Unless you really have your deductions from each paycheck scrutinized to minimize your taxes through out the year you are shorting yourself probably thousands.

As asked above, make sure your state has a state tax, I know mine does not.

Not sure how it ends up being $89. they say federal is $25 then you end up paying for the state or they dont let you file it. Im only getting a G back because my above table work was minimal. i dont really care about the $89 because my taxes were done 30 minutes after I recieved my w2 and it will be direct deposited in a few weeks

[Times Roman]

You bring up a thought of mine.

Do CPA's have to go thru a re-certification process in order to keep up with all the new laws our wonderful president and congress has put through every year?

to maintain an active license, a CPA must maintain his continuing education. If a CPA is a tax practioner, it is very common for them to take a tax refresher course each year.

Not sure how it ends up being $89. they say federal is $25 then you end up paying for the state or they dont let you file it. Im only getting a G back because my above table work was minimal. i dont really care about the $89 because my taxes were done 30 minutes after I recieved my w2 and it will be direct deposited in a few weeks

there is an income test to qualify for these discounted rates. if your taxable income exceeds a certain threshold, then the "discount" is no longer available.

sorry, not taxable income, the correct threshold would be an AGI limit....

[lovbyts]

Not sure how it ends up being $89. they say federal is $25 then you end up paying for the state or they dont let you file it. Im only getting a G back because my above table work was minimal. i dont really care about the $89 because my taxes were done 30 minutes after I recieved my w2 and it will be direct deposited in a few weeks

You should still care about getting the maximum return you can. Its not hard to turn that $700 into $3500 with a few deductions. Its worth the extra 20 minutes.

[almostgone]

SO On the very last page where I click file taxes my refund reads as follows.

Federal: $750
State:$250
Turbo Tax Fees: $89
Direct deposit: $661

Basically My state refund just vanished?? Its telling me the amount being deposited into my account is the federal minus the fees. Why is this? What happened to the state. The page before told me I was getting $1,000 back and the turbo tax fees only totaled $89.

Am I missing something?

I will say that I prefer tax act. It's an online service that I've used for the last 5 years or so. I e-filed state and federal for under $30 and will receive a decent refund this year. On the other hand, a CPA could be VERY handy/ indispensable if you were audited or have a complicated financial situation. If you have a good bit of cash flow, I would look for a CFP/CPA.

[lovbyts]

I will say that I prefer tax act. It's an online service that I've used for the last 5 years or so. I e-filed state and federal for under $30 and will receive a decent refund this year. On the other hand, a CPA could be VERY handy/ indispensable if you were audited or have a complicated financial situation. If you have a good bit of cash flow, I would look for a CFP/CPA.

Ive been using TurboTax for over 10 years. I use to use tax act also but found turbo tax had more features and just as cheap. Either way its worth doing the maximum deductions and getting the maximum return.

[almostgone]

Absolutely!!! We're rural and poor, but by stuffing as many $$ as we can afford into 401k, IRA, and HSA accounts, we've managed to get a decent refund. We don't have a mortgage anymore, just a plain( and I do mean plain) old basic house and some acreage, but with a little forethought and research it is possible to minimize the pain of taxes.
If our mastiffs had SSNs, I'd really be raking in the $$.

[JJ78]

How the F*ck do you get money back?

I ama W2 Employee and they have taken over $10K from me this year. I never get more than $100 back.
The Wife:
They took $5K from here W2 and we will probably have to pay another $22K for here 1099 employment
So that will be $37,000 that we will be paying in taxes after deductions. And yes, we use a CPA

[diesel101]

How the F*ck do you get money back?

I ama W2 Employee and they have taken over $10K from me this year. I never get more than $100 back.
The Wife:
They took $5K from here W2 and we will probably have to pay another $22K for here 1099 employment
So that will be $37,000 that we will be paying in taxes after deductions. And yes, we use a CPA

Welcome to the American dream!

[JJ78]

Soooo ready to get out of the system. This country is swiftly turning to shit.

I am a patriot and I love what America is supposed to be, but it aint no more, and is progessively getting worse.

[diesel101]

You make too much money! That's the BS I here when I complain about getting raped by the IRS!

[lovbyts]

How the F*ck do you get money back?

I ama W2 Employee and they have taken over $10K from me this year. I never get more than $100 back.
The Wife:
They took $5K from here W2 and we will probably have to pay another $22K for here 1099 employment
So that will be $37,000 that we will be paying in taxes after deductions. And yes, we use a CPA

Its called creative accounting. You have to make sure to take every deduction available by law.

[Times Roman]

Its called creative accounting. You have to make sure to take every deduction available by law.

it's even more basic than that. two aspects:

1) Payroll tax withholding - has no impact on your total tax liability for the year. You control via W4 and your state form equivalent.
2) Income tax liability - a little tax planning (something turbo tax is incapable of) can help minimize your tax liability. But you start at the beginning of the tax year, not at the end.

Each item is independent of the other. If you want more back at the end of the year, increase your withholding.

A good CPA should be able to provide a basic tax plan for the subsequent year.

[RaginCajun]

to maintain an active license, a CPA must maintain his continuing education. If a CPA is a tax practioner, it is very common for them to take a tax refresher course each year. there is an income test to qualify for these discounted rates. if your taxable income exceeds a certain threshold, then the "discount" is no longer available. sorry, not taxable income, the correct threshold would be an AGI limit....

That's what I thought, thanks bud

[lovbyts]

Actually TurboTax does make suggestions such as to modify your w4 withholding so you get more back each paycheck if you are getting back to much of a refund.

It also make suggestions such as putting money into an IRA and lets you see how much more you will get back. By putting $2500 into an IRA a few years ago I got back $1800 more on my refund.

[Times Roman]

those "suggestions" are more common sense than anything else. I'm talking about if your kid is in college and only going part time, and you have another kid getting ready to go to college, is it better to take the hope credit now or to wait until later. (you can only take claim it for two years total). Or if you have a business with assets, is it better to retain certain real assets within the business, or is it better to create a new "business", such a schedule E type, shift the real assets to this new "business" and then rent the property back to your schedule C business. This is called income recharacterization, and is a common strategy to avoid paying SS tax (16%). Reason is that Schedule E income is considered passive and is therefore not subject to the same taxes as you would expect with a more active income as you would expect with either 1120 income or schedule C income.

Show me a turbo tax program that can talk to you on this level, and i'll eat my hat....

Actually TurboTax does make suggestions such as to modify your w4 withholding so you get more back each paycheck if you are getting back to much of a refund.

It also make suggestions such as putting more eyes into an IRA and lets you see how much more you will get back. By putting $2500 into an IRA a few years ago I got back $1800 more on my refund.

[gearbox]

Great thread.
still waiting for TR or Lovbytes to offer to do mine

[lovbyts]

TR will. He's right although remember, common sense is not very common and most people overlook even those little things.

[Times Roman]

Great thread.
still waiting for TR or Lovbytes to offer to do mine

Sure, drive out your tax package to me mate.....

....I'm just a little east of Turkey right now! =)

[Times Roman]

Actually TurboTax does make suggestions such as to modify your w4 withholding so you get more back each paycheck if you are getting back to much of a refund.

It also make suggestions such as putting money into an IRA and lets you see how much more you will get back. By putting $2500 into an IRA a few years ago I got back $1800 more on my refund.

That would put you at over 70% tax rate on your highest earnings level. Are you sure about that, LB? Or are you talking about back in the '60's (old man!)

[JJ78]

So a totally hypothetical question:

If we made a whole bunch of new deductions than we did last year, will that throw up red flags?
i.e. church, charity?
Last year was the first time we hired a CPA, and he is a lawyer as well. Because we got married and she started getting commision based and w2. I thought that we did all of the possible deductions, and still paid out the ass.

Its fuc** cause my brother has 3 kids, no income, no job, gets EBT assistance, and still gets $8K+ back everyyear.

[gearbox]

So a totally hypothetical question:

If we made a whole bunch of new deductions than we did last year, will that throw up red flags?
i.e. church, charity?
Last year was the first time we hired a CPA, and he is a lawyer as well. Because we got married and she started getting commision based and w2. I thought that we did all of the possible deductions, and still paid out the ass.

Its fuc** cause my brother has 3 kids, no income, no job, gets EBT assistance, and still gets $8K+ back everyyear.

Now you know why Obama won! There are more people that live in your brothers situation and like it vs working hard like you and your wife.

[JJ78]

Yup.
Ive also been reading where people are choosing to work less or not at all because of the costs of Obamacare.
Just blows my mind. Its never going to get better because these people are breeding and instilling these lazy entitlement values in their children. A very bad cycle that is only going to get worse.

What is the end result?

[kelkel]

This country needs a low "Flat Tax" that "everyone" pays, without exception. Take out all the ambiguity.

[JJ78]

Heres a question.

Why doesnt the government make people work for their unemployment or welfare?

Like picking up trash, cleaning parks. Why just give it to them for free?

[Igifuno]

What is the end result?

I typically don't chime in on these conversations, but IMO, the end result is more people doing less because they can.

As a result of those people doing less, those of us who work hard to get ahead in life will no longer see the point in it since those who do less get the same, and therefore we hard workers will do less as a result.

This will cause our country, our people, our children, to become a mediocre society that is not driven by the benefits of hard work.

The end result scares me to death.

[JJ78]

But what is the end result?? Everyone 100% dependent on the government? Just complete control?
I mean this shit is going to come to a head at some point.

[JJ78]

So everyone collecting a government paycheck?
Everyone with a tv and electronics in their house that has facial recognition software?
Tracking devices in all cars, phones?

This is where it is headed. Reminds me of a book that ive read a few times. 1984
This is not conspiracy, this is what is happening.

[lovbyts]

That would put you at over 70% tax rate on your highest earnings level. Are you sure about that, LB? Or are you talking about back in the '60's (old man!)

No it was about 3 years ago but since then I have grossed to much for it to help or give me additional refund.

[lovbyts]

But what is the end result?? Everyone 100% dependent on the government? Just complete control?
I mean this shit is going to come to a head at some point.

The end result is the system implodes and we become Russia. A few very rich and a lot more poor with no government assistance and no middle class.