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[Maiden Voyage]

It's tax season--everyone's favorite winter activity!

I started my filing this morning and have W2 & deductions/exemptions entered. Somehow, some way it looks like I don't have to pay in this year. In fact, I'm getting a nice refund. Typically, I pay in so this is a pleasant surprise. My wife & I both received some stimulus money, which I expected to work against us. I still need to wait for my 8889 forms for post-tax HSA contributions before I can officially file, but everything else is locked in.

Is anyone else seeing a much more favorable return this year?

 

[ManofOne]

They need to simplfy form 8938. I have to attach that every year with my annual returns plus other 7 or more form declarations with 5-8 pages each. It becoming bothersome.

Then again I don't my ass to end up like Wesley Snipes.

 

[haxan7]

This is slightly OT but:

I noticed on my first payroll of 2021 my deductions increased a little bit meaning lower take home pay. Is there some reason for that? I didn’t have any change in circumstances.

 

[Maiden Voyage]

This is slightly OT but:

I noticed on my first payroll of 2021 my deductions increased a little bit meaning lower take home pay. Is there some reason for that? I didn’t have any change in circumstances.

How much of a swing was it? Tax brackets should not have changed much. Did you get a fat raise or something?

 

[J-Roderton]

All I know is I punch numbers into TaxAct and sometimes I get money back. Shit is confusing .

 

[haxan7]

How much of a swing was it? Tax brackets should not have changed much. Did you get a fat raise or something?

Nope nothing changed at all. It was small, about $89 total

 

[JORMBO]

I always do mine at the end of January and get around 1k back. My dogs are due in February for their yearly vet appointment/shots/meds which normally runs around $1k. Money in and money out right away.

 

[AJUMP23]

I had a federal return last year for the first time since I have been married. I think Trumps tax laws have actually helped middle class Americans.

 

[oldpotatoman]

This isn't new for this year but the removal of personal exemptions hurt me. My son turned 17 so no longer qualifies for the Child Tax Credit and counted for $0 for both of the Stimulus payments. No exemption, no child credits, basically there is $0 benefit to claiming him. He worked a little but not enough to benefit from claiming himself, not that he covered even 1% of his expenses. Also I made around 15 grand more this year but I'm not any better off due to increased healthcare costs and other things. I'm sort of in that area where I make too much to live off taxpayers but not enough to be much of one myself or be anything close to comfortable. I would probably be better off making a little less money but getting EITC, Savers Credit, medicaid, etc. All that said, it looks like I'm still going to get a little bit of a refund, though the IRS won't start processing for almost 4 more weeks. I thought I made too much.

 

[DarkestHour]

I had a federal return last year for the first time since I have been married. I think Trumps tax laws have actually helped middle class Americans.

I don't know how it could have ever hurt middle class Americans. I hate the fucker but his tax plan did nothing but put money in our pockets. Unless you really took advantage of SALT and were hurt by the cap, it was a benefit to you.

 

[raduque]

I did mine on Friday, but I started them on the 13th with the last paystub of 2020.

I'm salty the IRS isn't accepting returns till Feb 12th, but by doing mine this early at least I'll be close to the front of the line.

 

[ManofOne]

This is slightly OT but:

I noticed on my first payroll of 2021 my deductions increased a little bit meaning lower take home pay. Is there some reason for that? I didn’t have any change in circumstances.

Certain deductions/provisions were set to expire at the end of the year. Ranging from mortgages, floors on medical expenses etc. So probably that's why.

 

[haxan7]

Certain deductions/provisions were set to expire at the end of the year. Ranging from mortgages, floors on medical expenses etc. So probably that's why.

So it’s probably company wide? I’m going to ask my boss after the next payroll

 

[ManofOne]

So it’s probably company wide? I’m going to ask my boss after the next payroll

Here's the list

The following tax provisions will expire Dec. 31, 2020, if not extended by Congress:

Provisions for individuals​

• Sec. 35 credit for health insurance costs of eligible individuals.
• Sec. 108(a)(1)(E) gross income exclusion for discharge of indebtedness on a principal residence.
• Sec. 139B gross income exclusion for certain benefits provided to volunteer firefighters and emergency medical responders.
• Sec. 163(h) treatment of qualified mortgage insurance premiums as qualified residence interest.
• Sec. 213(f) 7.5% (instead of 10%) AGI floor for medical expense deductions.
• Sec. 222 deduction for qualified tuition and related expenses.

Business credits​

• Sec. 45A Indian employment credit.
• Sec. 45D new markets tax credit.
• Sec. 45N mine rescue team training credit.
• Sec. 45S employer credit for paid family and medical leave.
• Sec. 51 work opportunity credit.

Depreciation and expensing​

• Sec. 168(e)(3)(A) three-year recovery period for racehorses two years old or younger.
• Sec. 168(e)(3)(C)(ii) seven-year recovery period for motorsports entertainment complexes.
• Sec. 168(j)(9) accelerated depreciation for business property on Indian reservations.
• Sec. 181 special expensing rules for certain film, television, and live theatrical productions.

Energy provisions​

• Sec. 25C 10% credit for qualified nonbusiness energy property.
• Sec. 30B credit for qualified fuel cell motor vehicles.
• Sec. 30C 30% credit for the cost of alternative (nonhydrogen) fuel vehicle refueling property.
• Sec. 30D 10% credit for plug-in electric motorcycles and two-wheeled vehicles.
• Sec. 40(b)(6) credit for each gallon of qualified second-generation biofuel produced.
• Sec. 45(d) and Sec. 48 beginning-of-construction date for renewable power facilities eligible to claim the electricity production credit or investment credit in lieu of the production credit.
• Sec. 45(e)(10)(A)(i) production credit for Indian coal facilities.
• Sec. 45L credit for each qualified new energy-efficient home constructed by an eligible contractor and acquired by a person from the eligible contractor for use as a residence during the tax year.
• Sec. 168(l) depreciation allowance equal to 50% of the adjusted basis of qualified second-generation biofuel plant property.
• Sec. 179D deduction for energy-efficient commercial buildings.
• Sec. 451(k) special rule for sales or dispositions to implement Federal Energy Regulatory Commission or state electric restructuring policy for qualified electric utilities.
• Sec. 6426(c) excise tax credits for alternative fuels and Sec. 6427(e) outlay payments for alternative fuels.

Empowerment zone tax incentives​

• Secs. 1391(d) and (h) designation of an empowerment zone and of additional empowerment zones.
• Sec. 1394 empowerment zone tax-exempt bonds.
• Sec. 1396 empowerment zone employment credit.
• Sec. 1397A increased expensing under Sec. 179.
• Sec. 1397B nonrecognition of gain on rollover of empowerment zone investments.

Other provisions​

• Sec. 954(c)(6) lookthrough treatment of payments of dividends, interest, rents, and royalties received or accrued from related controlled foreign corporations under the foreign personal holding company rules.
• Sec. 4121 Black Lung Disability Trust Fund increase in excise tax on coal.
• Sec. 4611 Oil Spill Liability Trust Fund financing rate.
• Various provisions modifying the excise tax rates on beer, wine, and distilled spirits, and other rules under Secs. 263A(f)(4), 5001, 5041, 5051, 5212, and 5414.
• The American Samoa economic development credit (P.L. 109-432, as amended by P.L. 111-312).

 

[SLoWMoTIoN]

Fuck the IRS. That is all.

 

[ManofOne]

Fuck the IRS. That is all.

 

[AJUMP23]

Sec. 168(e)(3)(A) three-year recovery period for racehorses two years old or youngerSec.

The most rich person tax credit ever.

 

[West Texas CEO]

 

[Maiden Voyage]

Here's a decent breakdown of the different e-filing services available online, if anyone if interested.

 

[Maiden Voyage]

The IRS accepted my return. Woo!

 

[Celcius]

I did my taxes with turbo tax and my filing was accepted. However, this year I had to pay something back so setup to have it done via having the payment taken directly from my bank account (like reverse direct deposit). I know how long it normally takes to get a refund, but how long does it normally take for them to take the money?

 

[Maiden Voyage]

I did my taxes with turbo tax and my filing was accepted. However, this year I had to pay something back so setup to have it done via having the payment taken directly from my bank account (like reverse direct deposit). I know how long it normally takes to get a refund, but how long does it normally take for them to take the money?

Same timeframe usually. It’s been pretty quick in my experience.

 

[Mistershine.]

Does everybody in the US have to do their own taxes?

 

[Starlight Lotice]

Does everybody in the US have to do their own taxes?

I think they do on nearly everything.

You only have to do your own Taxes in the UK if you are self employed, but even that is much more simpler than what you have to do in the US. I think you only have to report Profits if you are Self Employed and if you made X amount in Income, you pay 20% over that amount.

You have to calculate National Insurance yourself though if you want to add that. (I think it is mandatory), which is something like 11% over £8K or something.

If you are employed your Payroll Manager or Company Accountant does your Taxes for you, which is usually Income Tax, National Insurance and Pension/Trade Union. You cannty claim those back but your Wages are free from claiming anything back afterwards if done right. If done wrongly you either have to owe HMRC (UK equivalent of the IRS) or they owe you back, but you have to claim it back from them since they won't do it for you.

You can however, tell HMRC that you can only pay back X amount and pay it off over the years, which tends to annoy them but they cannot do anything about that if you are in dire straights. (Sorry for being Off Topic)

Looking at US Tax Returns, I am glad I don't have to do that. The amount of Paperwork would probably make me worry about getting one thing wrong!

 

[Maiden Voyage]

Does everybody in the US have to do their own taxes?

It's actually fairly simple for the vast majority of filers. Your work gives you a W2 form which you use to complete the 1040, mostly just by transposing data. That's it for most Americans.

It gets more difficult if you want to claim tax breaks above the standard deduction ($12.4k for individuals), but is fairly simple for the vast majority who do file, as it only requires additional transposing of data from forms from banks or other institutions.

It's a basic exercise people do once a year once they begin earning income on their own (independent of parents). I'm not sure if all school teach how to do it, but mine did so it's never been an issue. Additionally, e-filing is free online for most filers, which takes all the transposing out of the equation.

The whole thing can be done in under 20 mins if you know what you are doing.

 

[mango drank]

I filled out my taxes through TurboTax yesterday. My state tax bill was way higher than I was expecting. I figured TurboTax had screwed up the math or something, so I held off on submitting, and instead I filled in all the same info in TaxAct to see what result I'd get. Hilariously, they gave me a $500+ higher state tax bill. Wondering if I should fill in the info a third time on Tax Slayer to see what happens, or if I should just save time and go ahead and file through TurboTax.

 

[Maiden Voyage]

I filled out my taxes through TurboTax yesterday. My state tax bill was way higher than I was expecting. I figured TurboTax had screwed up the math or something, so I held off on submitting, and instead I filled in all the same info in TaxAct to see what result I'd get. Hilariously, they gave me a $500+ higher state tax bill. Wondering if I should fill in the info a third time on Tax Slayer to see what happens, or if I should just save time and go ahead and file through TurboTax.

I’ve never had different results from platform to platform. Are you doing the standard deduction or itemizing?

 

[mango drank]

I’ve never had different results from platform to platform. Are you doing the standard deduction or itemizing?

I tried itemizing on both platforms, but in both cases it told me the standard deduction was higher, so it went with that. For the amount owed, the federal number was the same for both, it's just the state that's different.

Funnily enough, I don't qualify for Free File through TurboTax, but I do qualify through TaxAct--except using Turbo will still save me hundreds of dollars even if I pay to use it.

Unless Tax Slayer is known for aggressively trying to lower your tax bill, I don't know if I feel like trying it too.

 

[DESTROYA]

Not paying taxes this year, after getting raped by the tax collector last year ( sold my business ) I decided to take a year or two off.

 

[Sub_Level]

My wife & I both received some stimulus money, which I expected to work against us.

I see in a later post that you already filed. Nice. But I'd like to reiterate for posterity since this is a common question:

THE STIMULUS PAYMENTS ARE NOT TAXABLE INCOME

You only report if you received them & their amounts on your taxes because some people didn't get them/got less even though they qualified. Those folks get a refundable recovery rebate credit dollar for dollar what they were supposed to get.

 

[Maiden Voyage]

Got my refund yesterday. I think most of it will get set aside for vacation funds for later this year.

 

[eddie4]

 

[MaestroMike]

Got my refund a couple of days ago.