2006 Tax Season

[Mike Olbinski]

Using TurboTax.com is a dream.

I've used it for like 6 years now, and it carries over all your information and has all your old returns accessible easily all year long.

They also have a very good deductions tool for things like if you donate to charity or whatever. You can itemize all that and get real value for everything you donate. I liked that last year.

Mike

 

[Renz]

I use a CPA and it's the only way to go, IMO. When I was single and renting it was fine to use Turbo Tax etc., but now I would never do them myself. JMO.

 

[Jersey Girl]

Okay, so can anyone recommend a good, not-expensive CPA in the East Valley?

 

[DeAnna]

Another question about TurboTax...looking at their package, it has no provisions for investments (specifically losses on invstmts). Or did I miss it somewhere? Do I need to get the other version that's $75?

And what about 401k, IRAs, etc?

 

[jw7]

Another question about TurboTax...looking at their package, it has no provisions for investments (specifically losses on invstmts). Or did I miss it somewhere? Do I need to get the other version that's $75?

And what about 401k, IRAs, etc?

Yes, it handles all that. I don't think you need the $75 version unless you run your own business. You enter date of purchase of your investment (stock, bond, or whatever) and it figures out if it is a long-term/short term gain or loss. The $49 should be fine.

401K should already be deducted by your employer and reduce taxable income. No need for a separate entry.

Not sure about IRA, but the s/w asks you for these deductions. Pretty easy.

 

[abomb]

Not sure about IRA, but the s/w asks you for these deductions. Pretty easy.

It does. I think the only thing it asks you is what your total 2006 contribution was.

 

[Russ Smith]

Another question about TurboTax...looking at their package, it has no provisions for investments (specifically losses on invstmts). Or did I miss it somewhere? Do I need to get the other version that's $75?

And what about 401k, IRAs, etc?

About the only problem I've found with Turbo tax(I do it online) is how it handles stock options. My sister used to do my taxes and even she couldn't figure out one year how to get Turbo tax to correctly handle options so she did it manually. Last year it worked fine, it's something with disqualifying dispositions or incentive stock options, beyond my area of expertise but IIRC I don't have to worry about it anymore as my company changed the type of options we have because the other kind is not tax friendly.

IRA's and 401k's they might ask the balance, that's it.

Very convenient to have all your info in there from the last time you did it. I have to change my address this year since I moved but otherwise it's all in there for me.

 

[abomb]

Thanks for merging, Assface.

 

[Assface]

Thanks for merging, Assface.

At least someone around here finally appreciates me.

 

[Alan]

My next question. I live in PA, but work in NJ. My W2 for New Jersey lists $0 for State wages and $0 for State income. But it shows like $30 for local income tax. Do I still file a return for NJ? It seems very insignificant.

 

[Jersey Girl]

My next question. I live in PA, but work in NJ. My W2 for New Jersey lists $0 for State wages and $0 for State income. But it shows like $30 for local income tax. Do I still file a return for NJ? It seems very insignificant.

Damn, I should totally know this. I think that there is some sort of agreement between Philly and Jersey regarding all this crap, but, damn, it's been over 10 years since I've had to deal with this crap (but living in Jersey and working in PA).

I THINK you only file a state return in PA. There should be something in your PA state taxes that talks about if you work over the bridge. As I recall, it is pretty self-explanatory. I do not believe you have to file an NJ return. I never filed a PA return and worked in that state for almost 4 years. Of course, things change.

You still might get screwed though. From what I remember, you gotta pay state income tax in either Jersey or PA. The local tax is different. It seems every city by the Ben Franklin or Walt Whitman bridge has some sort of local tax ... and I assume that that is because everyone lives in one place and works in the other.

If you are doing your taxes yourself, I say read your PA state tax booklet NOW and call NOW if you have questions. The lines get really tied up after February. But, from what I remember when I was in your situation, it was pretty self-explanatory.

Good luck!!!

 

[abomb]

Did you not file an amended return? I don't see how you were screwed unless H&R wouldn't give you a refund.

My H&R Rep, likely here on a work visa, just asked basic questions. The whole process was incredibly painful.

How did you get screwed? I am guessing with the capital gains thing?

Yeah, I probably shouldnt have filed, since I was missing a hard amount on how much I had put into the house. I dont think H&R block took into account that I had lived there 20 of the prior 24 months, which should have equated to a pro-rated capital gains calculation.

Using a CPA may be cheaper than many people think, especially if they find some deductions you may have missed. If you do consider a CPA shop around as prices can vary widely.

I went to a CPA about a month later and he said he could probably get me $1500 or so back, but the likelyhood of being audited would basically be guaranteed. His belief was the that IRS doesnt look kindly upon people saying "Ooops, I made some mistakes, I'm re-filing" as it makes it look like I just dug up some stuff to change. I ended up paying about $6000 in taxes, when I generally had gotten about $5000 in refunds per year for the prior three years.

This year should be another big return as I had mortgages on three properties and a HELOC.

 

[Alan]

Damn, I should totally know this. I think that there is some sort of agreement between Philly and Jersey regarding all this crap, but, damn, it's been over 10 years since I've had to deal with this crap (but living in Jersey and working in PA).

I asked our business editor and he agrees with you. thanks!

 

[Duckjake]

when I generally had gotten about $5000 in refunds per year for the prior three years.

This year should be another big return as I had mortgages on three properties and a HELOC

You need to take a look at your withholding. No reason to let the feds have your money for free. Especially that much.