Income tax thread 3.0

Frisco

Frisco

Well-known member
Last year I owed around $4K in federal taxes and my preparer said it would likely go up $2K this year. Since our taxes are pretty straightforward, I thought I’d give TurboTax a try. I diligently entered my data.... $27K!?@

Needless to say, I called my tax guy. Federal is $8K. I made a bit more this year and work took out less witholdings. He was right, about $2K more.

Anyone know what I might have done wrong with Turbo? I didn’t stick around with them long enough to figure it out. I swear I entered my info accurately. Let’s just say I’m more appreciative of my tax preparer and $450 to I’m seems like an ok deal.

CJ
 
E

ejv

Untitled work in progress
Are you saying TT said you owe $27K more or $27K is your 2018 total federal tax bill. Your preparer can come up with all kinds of numbers. It's up to you to review the return and make sure it's accurate. It's you that signs it under penalty of perjury.
 
Frisco

Frisco

Well-known member
ejv said:
Are you saying TT said you owe $27K more or $27K is your 2018 total federal tax bill. Your preparer can come up with all kinds of numbers. It's up to you to review the return and make sure it's accurate. It's you that signs it under penalty of perjury.
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$27K total. I didn’t follow through with TT, so I wasn’t able to review the final product. My preparers return was accurate.
 
E

ejv

Untitled work in progress
So approximately $19K different between the two calculations if I understand you correctly. That may just be a single line item error but it should be obvious during any review if it was. I had something similar this year. I was looking at about a $20K refund which I knew to be wrong. After doing all my entry I did a review and found the error quickly. Turned out I fat fingered the keyboard when typing in the withholding from a W-2. Real obvious and once fixed I ended up with a few hundred dollars refund. So that one item wiped out almost $20K. But if you couldn't find something obvious maybe it was several smaller issues.
 
ThumperX

ThumperX

Well-known member
The only thing I can think of is you didn't go through each line item 1 by 1 on Turbo Tax. There are a lot of deductions and they're pretty good about hammering them out. Regardless glad your tax guy gave you a more palatable number.
 
J

jacob11379

Banned
I saved 11k from new changes.

But still wrote checks for 30k to feds and 12k to state.

Own a business so I pay every year.

Thought we where being slick keeping payroll salary below 66k so we didnt have to pay the $1200 a month for medical insurance. Found out that since we switched to an S-Corp the business profits roll over to personal income. So we got dinged and had to pay the $1200 after all.

This year we are paying the medical, upped our salary, claiming 0 and pulling money from checks.

Lessons learned. But I'm sure there will be more to learn end of this year.
 
mrzuzzo

mrzuzzo

Well-known member
My work just gave me the option to open a 401k.

I have a traditional IRA to which I already contributed this year.

How do I open the 401k and not incur a tax penalty for having both a 401k and an IRA in 2019?
 
afm199

afm199

Well-known member
Frisco said:
Last year I owed around $4K in federal taxes and my preparer said it would likely go up $2K this year. Since our taxes are pretty straightforward, I thought I’d give TurboTax a try. I diligently entered my data.... $27K!?@

Needless to say, I called my tax guy. Federal is $8K. I made a bit more this year and work took out less witholdings. He was right, about $2K more.

Anyone know what I might have done wrong with Turbo? I didn’t stick around with them long enough to figure it out. I swear I entered my info accurately. Let’s just say I’m more appreciative of my tax preparer and $450 to I’m seems like an ok deal.

CJ
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Dunno, but I have used it and its predecessors since it came out and have been super happy. I spend a day, minimum, looking at everything. I am never in a hurry to file. Some years, it's a week. (Complicated returns)
 
ThumperX

ThumperX

Well-known member
afm199 said:
Dunno, but I have used it and its predecessors since it came out and have been super happy. I spend a day, minimum, looking at everything. I am never in a hurry to file. Some years, it's a week. (Complicated returns)
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This is us.
After W's accident we were in the hole big time and had carry overs for several years. The paid accountant never paid the self employment tax because we were in negative numbers. 10 years of $0.00 towards Social security results in an additional 5 years of working to try and catch up :mad

I redid 4 years of returns with Turbo Tax and was able to retro-actively pay the self employment and penalties. I usually go over it twice before submitting.
 
JesasaurusRex

JesasaurusRex

Deleted User
So i JUST received a 1099s yesterday from a home sale last year. I've already filed my taxes (day before, doh). I assumed i wasn't getting a 1099s since it's been 2.5 weeks or so past the end of Jan. Anyways, my gain isn't taxable as per section 121 of the tax code. Do i need to amend my tax return now that I got this stupid form?
 
afm199

afm199

Well-known member
JesasaurusRex said:
So i JUST received a 1099s yesterday from a home sale last year. I've already filed my taxes (day before, doh). I assumed i wasn't getting a 1099s since it's been 2.5 weeks or so past the end of Jan. Anyways, my gain isn't taxable as per section 121 of the tax code. Do i need to amend my tax return now that I got this stupid form?
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Only if don't mind the IRS looking up your ass with a proctoscope.

If you got a 1099, you need to account for it on your return. The return will show that the income is not taxable. Save those records forever.

1040X is ridiculously easy on Turbotax.
 
JesasaurusRex

JesasaurusRex

Deleted User
afm199 said:
Only if don't mind the IRS looking up your ass with a proctoscope.

If you got a 1099, you need to account for it on your return. The return will show that the income is not taxable. Save those records forever.

1040X is ridiculously easy on Turbotax.
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Amend only if i don't mind or don't amend only if I don't mind?

I'm assuming you meant the latter? As in i would mind so i should amend...
 
Smash Allen

Smash Allen

Banned
Better to amend. Take a look at the seller statement and make sure any taxes and interest were correctly reported as well. They usually match the 1098 but not always :thumbup
 
JesasaurusRex

JesasaurusRex

Deleted User
Smash Allen said:
Better to amend. Take a look at the seller statement and make sure any taxes and interest were correctly reported as well. They usually match the 1098 but not always :thumbup
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Yea i'm going to amend, when i can anyways, apparently the 1040x isn't available yet. Kinda seems like a waste of time especially since i used the standard deduction for 2019 tax year, not really much to audit there but whatever.

Thanks guys
 
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