Finished our taxes today.

Did you by chance apply a refund for 2019 to your 2020 wisconsin tax. Assuming you pay quarterly that would make a difference in what you might be calculating?

 

I just finished my taxes, had 1 w2g from Iowa, where they do a forced 5% state hold, so I had to file an iowa return and end up getting it all back, pretty pointless.

 

I Just turned ours in. Fiancés unemployment didn't have enough taxes taken out so that brought us down a bit. Still ahead for the year as we only made 3 student loan payments. That has been nice to use that money elsewhere (Investing in our ROTHS, and paying down higher interest debt)

 

We’re doing ours this weekend....so the mantra may change.

 

Filed early and refund is already in the bank as of this morning. $80 on Turbo Tax (which I've been using for 20 years). Since I retired, everything is pretty straightforward, but still amazed that I already have the refund.

 

No one is asking for endorsements but we used turbo tax for years and we’re pleased. A friend said to check out H&R Block. We did and we’re ok with it. A couple of “do you wanna....” but no big deal. Very efficient for free!!! Not sure of ceiling for income to be free but if you’re reading this for advice you are probably ok..

 

What software do you use? TaxSlayer Pro? Drake? Others?

 

CJ,
the tax office uses Lacerte, by Intuit, same co that makes TurboTax.

Drake is more used for C/S Corp, that like.

 

Mine are substantially done except for getting K-1’s and LP statements. A way to speed up refunds, if any, as well as get stimulus checks deposited into your bank account faster is to be on the EFTPS, which is where you give the IRS your bank account and bank routing number, and it makes federal payments a snap. Yes I know it deducts them faster as well, but there’s a shorter wait time than for the proverbial check in the mail.

 

All's good and the return was accepted. Operator error. In my spreadsheet I transposed two numbers which ended up being a $10 error. Did you ever double check a number three different times and see the number you wanted to see, not what was actually entered?

 

I haven't seen a tax refund since the Clinton administration. Our tax bill has become much higher due to the SALT deduction cap and the RSUs that we have vesting. Typically, we equate what we owe to a type of a new car that we could buy. Last year it was a BMW 3 series. I think it will be more of the same this year.

 

Been there. Done that.

Usually only find it by re-entering numbers. Followed my a self administered slap up the side of the head.

 

I can relate to alot of posts. I didn't file my returns until after the initial stimulus last year and got it because of the prior year returns being leveraged. We were out if 2020 was filed in the normal time frame. In fact, I actually waited until July for filing to see what the impacts were going to be at work. Work also took ALOT of my time March to July due to the pandemic.

One of the things that I have to say I really have gotten used to is deductions based on a side business I created and my wife runs a home daycare (God bless her). The home daycare is a literal slate wiper of epic proportions IMO. She can take so many legit deductions that this year I expect it to save us from the next tax bracket rate. My side business is much much smaller but does allow for some leverage. About the only crummy thing is it kills her ability to use credit on her own due to the net income being so low comparatively and self-employed. She can get a car loan or credit card, but bigger items like a second home or raw land is out of the question.

 

Now I see why you are such an advocate of session accounting.

I started taking Soc Sec last year.

Had $10,121 in handpays but a net win on the year of only about $1,500. I was able to itemize, so I was able to offset most of the W2Gs.

But having the $10,121 included in AGI bumped the taxable amount of the Soc Sec income from 7.2% to 25.8%.

 

Wow.....the minimum for w2g’s needs to be raised for that reason alone or a closer inspection in situations such as yours when involving far less “take home” dollars.....wow.

 

I always use my tax software to also do an estimate for the next year, but I didn't include any handpays when I ran my simulation last time and I just didn't grasp the effect.

$10,121 is a lot of handpays for me. I had one year where I had a single $12,000 one, but that was a long time ago on a $25 denom. I think the next best year was only about mid $5k.

I'm think I'm definitely gonna have to drop down from $5/spin this year though.

 

Included above the line causes a hit in SS for sure.
For those with private insurance (ACA) - if those W2G take you over the income level, it can cost you $10,000 or so a year. I did not realize that for a year or so and was really tempted to go back and refile, but opted out. too many other "issues" that might trigger a deeper audit.

(any discussion about changing the $1200 thing are well meaning and wishful, but are just that - wishful - we are stuck with it for now and that is what we have to deal with)

 

Yeah I saw that too, because my COBRA runs out in a few months and I have to switch to an ACA plan, I looked at what the income limits are and for me, one handpay in AGI this year could be the difference between being able to get a (small) subsidy or not.

 

Re: W2G's...had my largest win ever totally $10K, and losses over 12K.
So glad I still Itemize and can deduct the 10K.
But, yes, it still RAISES your AGI!

 

A little tax time haiku

Self employment tax
rate is fifteen point three, ouch!
makes my hiney hurt