thread 1 - tax preparation

7/25/2019 Thread 1 - Tax Preparation

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Topics

Topic

Tax Preparation (graded)

IRS Website (graded)

Q & A Forum (not graded)

Tax Preparation (graded)

How do ou genera!! prepare "or tax season# $o ou norma!! owe more taxesw%en ou !e' or do ou receie a re"und# W%at tec%niues do ou use to *eep ourtax burden as !ow as possib!e#

T%is section !ists options t%at can be used to iew responses+

,o!!apse A!! Print -iew S%ow .ptions

Responses

Responses are !isted be!ow in t%e "o!!owing order/ response' aut%or and t%e dateand time t%e response is posted+

Sort b Read01nread Sort b Response Sorted Ascending' c!ic* to sortdescending Sort b Aut%or Sort b $ate0Time2

(an instructor response)

,o!!apse 3ar* as 1nread Tips' Tric*s and Sstems Pro"essor Rodrigue4 5mai!t%is Aut%or 607089:7 :9/:;/


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%ttp/00www+ban*rate+com0nance0taxes0>@was@to@get@organi4ed@"or@t%e@tax@ear@:+aspx

,o!!apse 3ar* as Read R5/ Tips' Tric*s and Sstems era!d Spencer5mai! t%is Aut%or 60B089:7 B/7


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taxes+ Ta*e t%e time to !earn about w%at expenses ou ma %ae eer ear t%atwi!! !ower our tax burden+

,o!!apse 3ar* as Read R5/ Tips' Tric*s and Sstems A!ice ,ontreras5mai! t%is Aut%or 606089:7 ;/86/9B P3

I %ae !earned "rom our tax preparer eer earG I *eep notes and t%en use w%atIe !earned t%e "o!!owing ear+ We %ae rea!! tried to "ocus on !essening on ourtaxes t%roug% using C9:* deductions' FSA accounts' ant%ing we can do pre@tax @we doG .ur re"unds are not t%at big' but t%at is o* @ it means we are not oerpaingand !etting t%e goernment use our mone "or "ree+

T%is !ast ear' I did our taxes using Turbo Tax @ tring to sae mone again b doingit mse!"+ It was actua!! not t%at %ard @ since I %ad eert%ing toget%er (and usedm notes "rom our preious ears o" tax preps)+ ,ost me B9 w%at %ad preious!cost oer


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,o!!apse 3ar* as Read R5/ Tips' Tric*s and Sstems Pro"essorRodrigue4 5mai! t%is Aut%or 60;089:7 ::/9>/9B A3

Stacie' comparing one ear to t%e preious is somet%ing t%at I do a!so+ I %ae maccountant send me a simp!e common si4e ana!sis so t%at I can see eert%ing asa re!atie percentage+ T%is %e!ps me to determine w%ere I can ad=ust to be moreeKectie going "orward+

,o!!apse 3ar* as Read R5/ Tips' Tric*s and Sstems Rane!! 3i!!er 5mai!t%is Aut%or 60;089:7 ::/7B/:; P3

We do not !e taxes in t%e Da%amas so I %ae no idea w%at ou go t%roug% on aear! basis ot%er t%an w%at I read+ In t%e Da%amas we %ae rea! propert taxes (aone time "ee annua!!) and now we %ae -a!ue added taxes w%ic% is a consumer taximp!emented in Lanuar o" t%is ear+ We do not !e taxes "or t%is so we get noreturn+

Per Fox business t%ere are "ew tips to prepare "or taxes+ Mou can set up ane!ectronic !e in w%ic% ou scan documents and transactions t%roug%out t%e eart%at wi!! aKect our tax return+ T%is ma*es it simp!e "or ou to emai! t%is !e to our

tax pro"essiona! w%o wi!! most !i*e! maintain t%e !e "or an audit+

%ttp/00www+"oxbusiness+com0persona!@nance089:C09:09607@tips@"or@preparing@"or@89:C@taxes0


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,o!!apse 3ar* as Read R5/ Tips' Tric*s and Sstems Nico!e 3c$anie!5mai! t%is Aut%or 60>089:7 C/77/:6 P3

3odied/60>089:7 C/7; P3

I %ae neer t%oug%t about taxes as muc% as I %ae in t%e past "ew das readingour wee*! assignment+ It seems to me t%at I am a Onorma!O tax paer in t%at aside"rom m %ouse' I dont rea!! %ae an deductions or exemptions+ I am sing!e' no*ids' and m education is being "unded b m compan w%ic% is tax@"ree up to apoint' t%oug%' m compan a!!ots about 089:7 >/


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at tax time+ T%e IRS website a!so %as tax tab!es aai!ab!e t%at gies estimates o"taxes t%at s%ou!d be wit%%e!d (,ircu!ar 5' Pub!ication :7)+ I %ope t%is %e!ps to s%edsome !ig%t on t%e brea* een scenario+

%ttp/00!i"e%ac*er+com07;69C;90%ow@do@i@aoid@owing@mone@or@getting@a@%uge@re"und@on@m@taxes

%ttp/00www+irs+go0

,o!!apse 3ar* as Read R5/ Tips' Tric*s and Sstems Nico!e 3c$anie!5mai! t%is Aut%or 60;089:7 B/8>/88 P3

T%an* ou "or t%e artic!e+

So' I understand %ow I can p!a wit% m exemptions to %ae !ess mone ta*en outo" m earnings t%roug%out t%e ear' w%ic% is diKerent "rom c!aiming 9 as anexemption so t%e ta*e out more and I get more o" a return+ 3 prob!em is w%at doI do wit% t%e extra mone# I am undecided+

T%e options are put t%e extra into t%e C9:' put t%e extra towards paing oK t%eprincipa! o" m %ouse' or put t%e mone into a standard saings account t%at earnsnext to not%ing and is too easi! accessib!e+ T%oug%' paing oK t%e principa! o" m%ouse earns next to not%ing as we!!' un!ess t%e %ousing mar*et gets better+

I" I put t%e mone into a saings account' I!! ineitab! t%in* o" somet%ing I s%ou!dbu suc% as wood oors' or new app!iances+ W%i!e neit%er o" t%ese are bad "or t%ea!ue o" m %ome' I "ee! I need to !earn more about growing m mone as opposedto buing stuK+ W%at saings options do ou uti!i4e#

,o!!apse 3ar* as Read R5/ Tips' Tric*s and Sstems Stacie Tuc*er 5mai!t%is Aut%or 60;089:7 ;/


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Nico!e' t%e exact same t%ing %appens to me in re"erence to t%e saings account (interms o" spending rat%er t%an saing@its a constant strugg!e)G I do %ae asuggestion' set a xed amount "rom our paro!! t%at ou are com"ortab!e wit%being deposited into a separate saings account eac% paro!! (a separate account"rom t%e account w%ere t%e residua! paro!! amount gets deposited)+ I nd t%at i" it

comes direct! "rom our paro!! and ou dont see it eer wee* be"ore it %its t%esaings account' it wi!! tend to bui!d up "aster t%an i" ou made t%e saing depositsourse!"+ I" ou %ae a debit card or c%ec*s "or t%e saings account' !e t%em awaand dont carr it around (t%at ma !essen t%e urge to spend it)+

Mou can a!so sae a portion o" t%e mone to C9:J eer ear during our openenro!!ment' I tr to increase m contribution i" I can+

,o!!apse 3ar* as Read R5/ Tips' Tric*s and Sstems Rane!! 3i!!er 5mai!t%is Aut%or 606089:7 :8/99/9: A3

reat idea StacG Haing monies sent direct! to a separate account wor* becauseou o"ten "orget about+ Mear b ear ou can increase t%e amount+

,o!!apse 3ar* as Read R5/ Tips' Tric*s and Sstems A!ice ,ontreras5mai! t%is Aut%or 60::089:7 :/


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,o!!apse 3ar* as Read R5/ Tips' Tric*s and Sstems Nico!e 3c$anie!

5mai! t%is Aut%or 60:


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Stacie exce!!ent post and artic!e ou proided+ I rea!! en=oed reading our postand particu!ar! %ow ou mentioned i" ou %ae man c%anges in t%e ear to ourincome or deductions brea*ing een cou!d be as dicu!t as tring to %it a bu!!s eeon a dart board+

A ca!cu!ator I "ound on!ine %ttps/00www+ca!cxm!+com0ca!cu!ators0s%ou!d@i@ad=ust@m@paro!!@wit%%o!dings#s*n

%e!ps determine w%et%er ou are !i*e! to be on target based on our currentwit%%o!ding status+ T%is too! is suppose to te!! one eit%er t%e oer@wit%%e!d orunder@wit%%e!d on t%eir taxes+

W%en I input m persona! in"o onto t%e site' it mentioned %ow I wou!d %ae a taxs%ort"a!! "or t%e next upcoming tax ear and t%at I s%ou!d consider decreasing t%enumber o" tax a!!owances+ Howeer m tax dependents are a!read at 9 I dont

c!aim mse!" and I !et m daug%ters mom c!aim m daug%ter+ Dut sti!! in t%e end Iam "a!!ing s%ort+

Taxes =ust ma*e no sense to me and ma*e m %ead %urt+ /)

,o!!apse 3ar* as Read R5/ Tips' Tric*s and Sstems Rac%e! .Rour*e5mai! t%is Aut%or 60;089:7 ;/C9/8> P3

Nico!e' our post is exact! on point wit% w%ere I am regarding taxes+ I wou!d sa Iam a norma! tax paer as we!! as I do not %ae an big purc%ases or inestments+T%e main c!aim on m taxes is m son and sc%oo!+ I a!so was unaware o" t%e brea*een+ I a!was t%oug%t I was doing somet%ing rig%t w%en I receied a c%ec* in t%emai! wit% m return eer ear+ I wi!! denite! %ae to do more researc% on t%issub=ect+

,o!!apse 3ar* as Read R5/ Tips' Tric*s and Sstems Heat%er 5!!iott5mai! t%is Aut%or 606089:7 B/C


10/39

T%e !ogic be%ind it is' t%e mone ou get bac*' ou cou!d %ae inested or set asidein some manner and earned t%e interest or a return instead o" t%e goernmentdoing so+ I' persona!!' wou!d rat%er get a re"und+ Again' I dont rea!! t%in* aboutm taxes t%roug%out t%e ear and I guess it is about time I did+ I usua!! !e wit%turbo tax and =ust proide t%e in"ormation t%at t%e need+ T%is ear wi!! be tric*

wit% t%e tax brea* "or co!!ege and not being ab!e to c!aim m son t%is ear+

oo*s !i*e I %ae a !ot to start !oo*ing in to and be better prepared "or next ear+

,o!!apse 3ar* as Read R5/ Tips' Tric*s and Sstems Rac%e! .Rour*e5mai! t%is Aut%or 606089:7 C/88/


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,o!!apse 3ar* as Read R5/ Tips' Tric*s and Sstems Lason $ona!d 5mai!t%is Aut%or 60:9089:7 089:7 7/96/99 P3

1n!i*e man t%at %ae commented t%us "ar' I actua!! !oo* "orward to tax season att%e moment+++considering I receie a re"und+ W%at I actua!! dont !oo* "orward to


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t%roug% m emp!oers expense so"tware+ 1n!i*e ot%ers' we dont %ae anaccountant preparing our taxes w%ic% Im sure means we are missing out ondeductions+ I %ope doing it ourse!es oKsets t%e cost o" paing a pro"essiona!' butt%at is up "or debateG


,o!!apse 3ar* as Read R5/ Tips' Tric*s and Sstems Pro"essorRodrigue4 5mai! t%is Aut%or 60;089:7 ::/88/9C A3

,arra%' ou can o"ten nd someone to !oo* oer our taxes in t%e oK season "or a!ow "ee+ T%e can te!! ou w%at cou!d %ae been done and !i*e! een !e anamended return i" it is wort% t%e eKort+ I" t%e diKerence is neg!igib!e t%en *eep

doing it wit%out %e!p and sae t%e mone+

,o!!apse 3ar* as 1nread R5/ Tips' Tric*s and Sstems ,arra% Durton5mai! t%is Aut%or 606089:7 :/


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,o!!apse 3ar* as 1nread R5/ Tips' Tric*s and Sstems e!!i Tot% 5mai! t%isAut%or 60;089:7 >/C


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can ta*e+ I am not use i" t%e standard deduction is better or i" I am !eaing mone"or t%e IRS b missing out on a!! t%e itemi4ed deductions I am a!!owed+

Taxes %ae neer been m strongest area or an area I am rea!! o" interest in+ I am

an accountant but I wor* on t%e regiona! side in more o" AP and AP+ We %ae a taxdepartment so!e! "or tax issues+ As I moe on wit% m 3DA I *now it is rea!!important to understand business taxes and een persona! taxes+ T%e reading t%iswee* in t%e text boo* are good examp!es and a!so denitions o" persona! taxpreparation+ .n m 89:7 taxes I am going to be more ino!ed and be sure I amta*ing a!! itemi4ed deduction !i*e buing a new car' energ credits and ot%er items Ima ua!i" to ta*e+

,o!!apse 3ar* as 1nread R5/ Tips' Tric*s and Sstems Ange!a Wi!!iams5mai! t%is Aut%or 60;089:7 B/:


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I o!unteered during some part o" t%e ear and was ab!e to use it toward m taxes+

W%at I %ae !earned' w%en it comes to m W8 in"ormation' and setting up min"ormation "or tax purposes at wor*' I enter "or t%em to ta*e 89 extra "rom m

c%ec* towards state' 89 extra towards m Federa! and I enter 9 exemptions so t%att%e can ta*e a!! t%at is needed "or now+ At t%e end o" t%e ear' I am ab!e to getbac* some o" t%at mone t%at was ta*en out+

,o!!apse 3ar* as Read R5/ Tips' Tric*s and Sstems 3ic%ae! Fa*e%5mai! t%is Aut%or 60;089:7 :/87/C6 P3

ast ear it was toug% "or me' as i was wor*ing :966 and m accountant to!d met%at i %ae to *eep eer sing!e inoice i %ae' and it was %ass!e to !e a!! t%isinoices P!us m daug%ter staK too+

because i was wor*ing to =obs W 8 & :966' it was con"using "or me+

so a!! w%at i do is !!ing a!! m inoices ' a!! paments needed to s%owed up at t%etax !ing+


,o!!apse 3ar* as Read R5/ Tips' Tric*s and Sstems Pro"essorRodrigue4 5mai! t%is Aut%or 60:9089:7 :/C


19/39

Actua!! pro"' %e to!d me w%i!e ou !! t%e W C "orm 'ma*e our c!aim 4ero t%at att%e end o" t%e ear i didnt paid ant%ing+

so t%e deduct "rom m W 8 wor* as i am sing!e and at t%e time i didnt paid antaxes "or t%e :966 +

so i didnt paid and didnt get re"und+but w%en i was wor*ing on! W 8 i used to get re"und as i %ae a daug%ter and c%i!dcare+

,o!!apse 3ar* as 1nread R5/ Tips' Tric*s and Sstems Lacinda Smit%5mai! t%is Aut%or 606089:7 >/99/9< P3

Pro"essor'

I wi!! %ae to admit t%at I am not "u!! aware o" w%at I need to do to prepare "or taxtime+ I %ae a "ami! tax person t%at I %ae used "or t%e !ast seera! ears but didntuse t%is ear and I do regret it+ Next ear I wi!! be going bac* to %im and as*ing !otso" uestions since m prep "or taxes is now going to be diKerent t%an be"ore+

A!so I appreciate t%e inestopedia !in*' I "ound it %e!p"u! "or simp!e or "reuent! as*concerns "or tax time+

,o!!apse 3ar* as 1nread R5/ Tips' Tric*s and Sstems Abdu! Ra%eem3o%ammed 5mai! t%is Aut%or 60:9089:7 ::/9C/9: P3

3odied/60:


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,o!!apse 3ar* as Read R5/ Preparing "or Tax Season Nic* Drown 5mai!t%is Aut%or 60>089:7 B/78/79 P3

3odied/60>089:7 B/76 P3

As a co!!ege student w%o %as a "u!! time =ob wit% an additiona! dependent in mdaug%ter tax season is a!was somet%ing t%at ma*es m %ead t%rob because Ineer tru! *now t%e correct route to go w%en it comes to !ing taxes+ .er t%eears' I %ae tried to use serices !i*e H&R D!oc*' Lac*son Hewitt' and ibert+ 5enone ear I tried to use Turbo Tax+ And %onest! a"ter using t%ose serices Turbo Tax"e!t !i*e t%e most easiest to compre%end since it is se!"@sere+ Turbo Tax now %asmore conenient "eatures t%en preious! wit% its smartp%one app t%at gies out%e easiest route to !ing our taxes b proiding ou wit% exact! w%at ou need toinput into t%e sstem "or accurac+

T%e one p!us side about taxes "or mse!" %appens to be t%at since I do not %ae anpropert or retirement accounts or mu!tip!e saing accounts I ua!i" "or t%e :9C95U"orm and t%at is a more simp!e "or peop!e !i*e mse!" w%o =ust *now er !itt!e abouttaxes+

,o!!apse 3ar* as Read R5/ Preparing "or Tax Season era!d Spencer5mai! t%is Aut%or 60;089:7 7/


21/39

amendment+ T%is ear I used a tax preparer and receied an unbe!ieab!e amountbac* in a re"und+ I %ae neer seen t%at amount and I am sti!! s*eptica! about iteen more so now because m brot%er' w%o used t%e same person two earsconsecutie!' receied a !etter "rom t%e IRS stating %e receied too muc% in 89:


22/39

OHow to et t%e 3ost .ut o" Hiring an Accountant+O Forbes' 3a :/8:/C7 P3

Nic*'

I wi!! agree t%at using Turbo Tax is a er simp!istic wa to get taxes done+ It doesntcost a !ot o" mone eit%er' w%ic% is a p!us ersus going to see someone+ I %ae usedit be"ore and I t%in* as !ong as ou %ae a simp!e W@8 t%en using Turbo Tax is a goodidea and sometimes t%e c%eapest+ Howeer' I t%in* i" ou %ae somet%ing a !itt!e


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more comp!icated !i*e se!" emp!oment it becomes a !itt!e more dicu!t to do onour own and I t%in* using Turbo Tax isnt as %e!p"u!' at !east "or me w%en I tried it' itbecame more dicu!t+

,o!!apse 3ar* as Read R5/ Preparing "or Tax Season Nic* Drown 5mai!t%is Aut%or 60:


24/39

T%an* ou t%e !in*' I "ound it er use"u!G I wi!! sa t%at I wi!! be going bac* to m"ami! tax person t%is coming spring instead o" doing it on m own "rom %ere onout+ I a!so "ound out t%at i" w%en se!" emp!oed i" ou do not pa into 3edicare orSocia! Securit t%en w%en ou are read to draw our Socia! Securit one B8 t%oseears wor*ed at t%at =ob dont count as earnings towards our retirement+ So it is

a!most as i" ou are wor*ing "or "ree because t%e do not count in t%e !ong run+I a!so wou!d %ae to agree and sa t%at I !i*e some o" t%e new options emp!oersare giing to obtain a W@8 instead o" waiting "or t%em to come in t%e mai!+ At m =obwe can =ust print t%em out "rom our emp!oee website+

,o!!apse 3ar* as 1nread Quic*en and turbo tax so"tware 3ic%ae! W%ite5mai! t%is Aut%or 60;089:7


25/39

,o!!apse 3ar* as Read R5/ Quic*en and turbo tax so"tware Nic* Drown5mai! t%is Aut%or 60:9089:7 :9/79/98 P3

Pro"essor and c!ass+ A %orror stor I can spea* about using t%ese serices was a "ew

ears bac* w%en I was tring to be mr+ *now@it@a!!J I used t%e same tax so"tware"rom a preious ear+ . %ow I t%oug%t I was doing good "o!!owing t%e directions andsteps success"u!!+ I actua!! went a!! t%e wa and comp!eted and submitted mtaxes "or t%e ear+ Lust so %appen t%at es' I was getting a sma!! re"und %oweer t%eIRS "ound out I was using o!der so"tware so t%e sent me a !etter in"orming me and!etting me *now because o" t%is error I signicant! didnt comp!ete t%e processrig%t+ In t%e end I actua!! %ad t%e IRS comp!ete m taxes in"orming me t%at I %ad toowe about c!ose to :'799 do!!ars+

W%at a cra4 stor and a"ter t%is I =ust despise taxes and t%e season and a!! t%e

drama t%at it bringsG So muc% t%at I sti!! %aent een !ed "or 89:C et+ I %ae a!!m w@8s =ust dont want to do t%em incorrect! but I mig%t tr to get some %e!p and!e a!most a ear !ater+

,o!!apse 3ar* as Read R5/ Quic*en and turbo tax so"tware Heat%er5!!iott 5mai! t%is Aut%or 60::089:7 B/99/98 A3

T%an*s "or s%aring our experience Nic*' I wondered i" not getting new so"twareeac% ear wou!d aKect our tax return+ I *now t%roug% t%e credit union' eac% ear't%e usua!! oKer some tpe o" discount on it+

I wou!d get t%e 89:C taxes !ed especia!! i" ou are going to owe t%e goernmentmone+ T%e dont mind %o!ding on to our mone i" ou are getting a re"und but i"ou owe t%em' t%e are !i*e t%e maa+ I %ope ou !ed some sort o" extension+


,o!!apse 3ar* as Read R5/ Quic*en and turbo tax so"tware Pro"essorRodrigue4 5mai! t%is Aut%or 60::089:7 ::/7B/79 A3


26/39


27/39

How I genera!! p!an to prepare "or taxes is bu using expense reports' and doingm part in researc%ing an !aws t%at wi!! benet me+ I use eer tax credit i can usepossib!e w%et%er its income tax credit or t%e education tax credit+ I nd t%at wit%t%e %e!p o" m ,PA and staing current wit% paing m uarter! tax paments t%eend o" t%e ear tax can generate a return

,o!!apse 3ar* as Read Tax Preparation (graded) Lason $ona!d 5mai! t%isAut%or 60;089:7 >/:8/C8 P3

How do ou genera!! prepare "or tax season# $o ou norma!! owe more taxesw%en ou !e' or do ou receie a re"und# W%at tec%niues do ou use to *eep ourtax burden as !ow as possib!e#

I start to prepare "or tax season at t%e beginning o" t%e ear b gat%ering m taxin"ormation t%at arries in t%e mai!+ A !ist o" w%at s%ou!d be expected (tax "orms) iswritten down on a s%eet o" paper and c%ec*ed oK upon arria!+ A p!ace isdesignated ("o!der) to put a!! o" t%e "orms and statements so I can *eep up wit%t%em+ I set up an appointment wit% t%e tax person around mont% be"ore t%e Apri!dead!ine+ I %ae an IRA so t%e rest o" t%e mone t%at counts toward t%e ear iscontributed to m account+ 3 tax "orm "rom !ast ear is iewed to see i" a!! o" t%e"orms are co!!ected t%at is needed "or m taxes+ T%e !ast coup!e o" times t%at mtaxes %ae been done I %ae receied a re"und' so I am t%an*"u!+ T%e on! time I%ad to pa was ma*ing t%e mista*e o" doing m own taxes and using wrong "orm+


,o!!apse 3ar* as Read R5/ Tax Preparation (graded) Pro"essorRodrigue4 5mai! t%is Aut%or 606089:7 :9/8>/:9 A3

Lason' %ow !arge is t%at re"und# I" it is greater t%an :'999 t%en it ma be a goodidea to %ae !ess pu!!ed out during t%e ear+


28/39

,o!!apse 3ar* as Read R5/ Tax Preparation (graded) e!!i Tot% 5mai! t%isAut%or 606089:7 /:B/76 P3

I %ad t%is issue wit% m re"und a"ter m rst "u!! ear as a "u!!@time emp!oee a"ter

co!!ege+ 3 re"und was oer two t%ousand do!!ars' w%ic% was rea!! nice+ Howeer'I wou!d rat%er %ae t%at mone t%roug%out t%e ear in eac% o" m pac%ec*s+ Irea!i4ed t%at I %ad entered 4ero exemptions w%en I comp!eted m W@C w%en I beganwor*ing+ Form W@C' 5mp!oees Wit%%o!ding A!!owance ,erticate' is a "orm giento emp!oees b t%eir emp!oer so t%e can decide %ow man exemptions toc%oose' w%ic% aKects t%eir "edera! wit%%o!dings (IRS+go)+ A!so' "orm W@C a!!ows anemp!oee to deduct an additiona! amount o" mone eac% wee* i" t%e emp!oeedetermines it is necessar to do so+ I c%anged m W@C to reect one exemption' andI began to %ae !ess deducted eac% pac%ec* and receied a sma!!er re"und duringt%e "o!!owing tax season+ An indiidua! can a!so use tax tab!es prepared b t%eInterna! Reenue Serice to determine t%eir tota! tax based oK o" t%eir ear!

income+ First' t%e taxpaer needs to determine t%eir !ing status' !i*e sing!e'married !ing =oint!' married !ing separate!' or %ead o" %ouse%o!d+ T%e taxpaercan t%en nd t%eir ear! earnings and nd out %ow muc% t%e owe in taxes' notinc!uding an specia! deductions and credits+

89:C Form W@C/ %ttp/00www+irs+go0pub0irs@pd"0"wC?:C+pd"

89:C IRS Tax Tab!es/ %ttp/00www+irs+go0pub0irs@pd"0i:9C9tt+pd"

,o!!apse 3ar* as Read R5/ Tax Preparation (graded) wendo!n eeer5mai! t%is Aut%or 60: P3


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I a!was wondered about t%at+ Peop!e t%at %ae er sma!! re"unds due to %aing!ess taxes ta*en out during t%e ear+ 3 re"und is norma!! prett substantia! andIm not sure t%e best wa to update m income tax wit%%o!dings to receie moret%roug%out t%e ear+ I guess it is a!! w%at our pre"erence is+ I persona!! !i*e %ainga credit t%at comes bac* in one !ump sum+ I use t%at to go on trips and "or m

upcoming on to ma*e a coup!e o" updates to m %ouse+ It is better to do it one waor t%e ot%er#

,o!!apse 3ar* as Read retirement Fausto 3e!ara 5mai! t%is Aut%or60;089:7 :9/98/9: P3

Somet%ing I did nd interesting w%en spea*ing wit% a re!atie o" mine' wasretirement+ T%e to!d me t%e receied t%eir pension in one !ump@sum some w%ere

around


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Dased on Pro"essors response I decided to !oo* up bonus since t%is is a!so a !umppament+ I "ound out t%at bonuses are a!so taxab!e and it depends on t%e tpe o"bonus gien+ A !ump sum pament is added to t%e tota! sa!ar "or t%e ear andt%ere is a separate ca!cu!ation "or wor*ing out primar and secondar emp!oments+

T%ere is an option to pa taxes on a !ump sum at a %ig%er rate+

%ttp/00www+ird+got+n40paro!!@emp!oers0ma*e@deductions0staK@benets0bonuses0

,o!!apse 3ar* as Read Tax preparation 3ic%ae! W%ite 5mai! t%is Aut%or606089:7 :8/7B/C9 P3

Norma!!' I receie a sma!! re"und+ I reiew m estimated taxab!e income andexpenses in September and $ecember o" t%e tax ear+ I compare m estimated taxwit% t%e wit%%o!ding "or t%e ear and determine t%e course o" action to pursue+ Ima increase m contribution to m retirement account to reduce m tax burden+A!so' I !oo* at m deductions !i*e c%arit+ I ma decide to ad=ustment t%ewit%%o!ding a!!owance to increase or decrease t%e "edera! and state tax wit%%o!ding"rom m emp!oer+ I" I %ae a tax !iabi!it I ma decide to ma*e estimate taxpaments+


,o!!apse 3ar* as Read R5/ Tax preparationPro"essor Rodrigue4 5mai! t%isAut%or 60::089:7 :8/9


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,o!!apse 3ar* as Read Preparing "or Tax Season wendo!n eeer 5mai!t%is Aut%or 606089:7 :/98/76 P3

I sae m tax in"ormation in a !ing cabinet t%roug%out t%e ear to prepare "or taxseason+ ." course most o" m documents come at t%e end o" Lanuar it is sti!!important t%at I *now w%ere m ot%er documents are *ept+ Suc% as c%aritab!e

donations' receipts' and ant%ing e!se t%at I mig%t need "or tax season+ I used tonot *eep a!! o" m documents in one p!ace and it was suc% a strugg!e to tr andremember a!! o" t%e documents and w%ere I %ad p!aced t%em+ I "ee! now t%at I %aea "o!der =ust "or t%ese tpes o" documents it %e!p me to be more prepared and !essstressed w%en I %ae to !e m taxes+ I dont %ae an accountant' I comp!ete mown taxes using t%e H&R b!oc* site+

Pro"essor and c!ass' Is it better to %ae a accountant comp!ete our taxes or dot%em ourse!"#

,o!!apse 3ar* as Read R5/ Preparing "or Tax Season Lason $ona!d 5mai!t%is Aut%or 606089:7 >/79/C; P3

Pro"essor and c!ass' Is it better to %ae an accountant comp!ete our taxes or dot%em ourse!"#

I" ou %ae condence t%at ou can do our own taxes' t%en go "or it+ I "ee! at easew%en someone !oo*s at m taxes+ .n one occasion I was doing t%e wrong "ormw%en comp!eting m taxes+ I" I %ad not %ad HR D!oc* c%ec*ed it be"ore it was turnedin' it wou!d %ae cost me a !ot o" mone in t%e !ong run+ Anot%er reason I !i*e to%ae someone c%ec* m taxes because o" computation errors+ Sometimes I %ae atendenc to ma*e mista*es w%en adding numbers or entering numbers on wrong!ines o" "orms+ A!so' a tax pro"essiona! can gie ou important in"ormation ondeductions and credit t%at ou can ua!i" "or at tax time+ Lust t%is ear w%en I gotm taxes done t%ere were a seera! sc%oo! credits t%at I ua!ied "or t%at I wou!dnt%ae ta*en adantage o" i" doing m own taxes+


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,o!!apse 3ar* as Read R5/ Preparing "or Tax Season wendo!n eeer5mai! t%is Aut%or 60:8089:7 :/ P3

Lason I agree' I a!so ears ago was using t%e wrong tax "orm and t%e websites seemto miss some deductions+ Now t%at eert%ing is on!ine it is so muc% easier+ I %aeused in t%e past coup!e o" ears a coup!e o" diKerent tax preparing websites+ I %ae

used turbo tax' H&R b!oc* and tax s!aer+ I wou!d not suggest tax s!aer and bot%turbo tax and H&R b!oc* were simi!ar+ T%e on! t%ing about using t%ese websites is I"ee! t%at it can miss some deductions+ 5en i" ou answer a!! t%e uestions t%at t%e%ae aai!ab!e it is eas but I "ee! t%at it misses some mone saing deductions+

,o!!apse 3ar* as Read R5/ Preparing "or Tax Season S%andanee S%aw5mai! t%is Aut%or 606089:7 6/7C/


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I wis% I was pro"essor+ Mou wou!d be surprised %ow man peop!e see us 3arinesaround t%e base or een inside as stated and t%e see do!!ar signs+ I neerunderstood t%e !ogic be%ind it because t%e cou!d basica!! see w%at we get paid b=ust searc%ing "or it on goog!e or suc%+ We do not get paid we!!' I!! =ust sa t%at+ Dutt%ats t%e countr we protect' and I wou!dnt c%ange it "or t%e wor!d+

,o!!apse 3ar* as Read R5/ Tax PreparationHeat%er 5!!iott 5mai! t%is Aut%or60:8089:7 >/:6/C6 A3

T%an* ou "or our serice Andrew+ Wow' I wou!d t%in* t%is person wou!d %aeactua!! gien ou a!! a discount or somet%ing+ Sounds !i*e %e prett muc% %ad acaptie c!ient base and wou!d %ae made descent mone wit%out %aing to resortto deceit and unet%ica! was+ .ne word "or peop!e !i*e t%at' arma+

,o!!apse 3ar* as Read Tax Preparation Loann 3ora!es 5mai! t%is Aut%or606089:7 6/9:/7> P3

I do not !e m own taxes+ I purc%ased t%e Neat scanner and scan m receipts andimportant documents+ T%e %ard copies I put in a "o!der+ T%e programs %as an optionto create a Tax Report+ I must con"use t%at I %ae not ta*e adantage o" a!! t%e

programs t%e options+ T%e good t%ing about t%is program is it can %e!p oucategories our receipts b a!so proiding IRS tax categories+

I *eep trac* o" m m spending and expenses' w%en it is time to !e m taxes I printout m reports+ .rgani4e and separate a!! o" our %ard cop receipts0document andbring t%em to t%e tax preparer+


,o!!apse 3ar* as Read R5/ Tax PreparationPro"essor Rodrigue4 5mai! t%isAut%or 60:8089:7 >/7>/:> A3


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It is ama4ing to me %ow comp!icated taxes can be to understand and !e+ i*eot%ers in t%e c!ass %ae said i" ou are going to %ire pro"essiona! %e!p it is a goodidea to read reiews on!ine or een isit t%e Detter Dusiness Dureau+ T%ere is a !ot o"tax serices rated wit% a d or F on t%e DDD site+ I %ae a "riend w%o used one o"t%ese serices rated an F on DDD and it is *now September and t%ere re"und is sti!!

being %e!p up in reiew due to being !ed incorrect!+

,o!!apse 3ar* as Read R5/ Preparing "or tax season Andrew P!a4a5mai! t%is Aut%or 60:


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How I genera!! p!an to prepare "or taxes is bu using expense reports' and doingm part in researc%ing an !aws t%at wi!! benet me+ I use eer tax credit i can usepossib!e w%et%er its income tax credit or t%e education tax credit+ I nd t%at wit%t%e %e!p o" m ,PA and staing current wit% paing m uarter! tax paments t%eend o" t%e ear tax can generate a return

,o!!apse 3ar* as Read tec%niues 3ic%ae! Fa*e% 5mai! t%is Aut%or60:8089:7


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,o!!apse 3ar* as 1nread Persona! Tax iabi!ities S%andanee S%aw 5mai!t%is Aut%or 60:

thread 1 - tax preparation

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