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Haven't started yet, but i'm going to do them this coming week. After years of doing it by hand, I tried TurboTax last year and loved it- I'll use it again this year. I usually get a pretty good refund from the Feds, which I don't mind. I hate to owe, and I'd rather err on the side of getting a refund. What I get back isn't enough that I'll miss it during the year, and it would generate enough interest to get upset about.
 
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I am so pissed... I owe $6... is that even worth sending the check to them???

But I am with grad... I don't own a house yet and single, so very hard to fill out the long forms if the deductions don't add up to enough. Unfortunately that will change next year when I might actually have a wife :crazy:
 
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I haven't even looked at my taxes yet but if it's continues like it has for the past several years, I'll still have to send more money to both the Federal and State. Sorry if I appear to be climbing on my soap box but a single tax payer takes it in the shorts. The feds took out almost $8,000 in deductions last year from my check and I still ended up owing more money on top of that. So I requested to have an additional $50 withheld to try to make it zero out. Guess I'll find out if that helps much.
 
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Thump,

No... the home improvements (save those receipts :wink2: ) raise your cost basis in the home.

Example if you purchased the home for $100k and sold it years later for $200k you would have taxable gains of $100k. If you put $20k into the house, then your increased cost basis is $120k, so the taxable gain is now $80k (again at the time of sale).

Most folks 1031 "exchange" when the sell... (sell one house, buy another). If this is done, the sale is a non taxable event.

In short, you get to increase your basis, however it doesn't really help you out for quite a long time (sell the home and don't 1031).

Although your mortgage interest is tax deductable.
 
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DEBuckeye said:
I hate to owe, and I'd rather err on the side of getting a refund.
That is a foolish stance to take.

The government is using your money and not paying you any interest on it. If you had it in an investment or low interest savings account you would have more money.

Try to balance it out to where you owe nothing and get nothing back. If anything, always err on the side of owing.
 
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Thump,

Some folks will just spend it. If they are not too good at cash management, it might be worth giving up the interest in order to get the lump and use it for a predetermined purpose.

Skins,

Actually married folks get the screw.

Example:

A single person making $60k is in the 25% bracket.
Two married folks who combine to make $120k and file jointly are in the 28% bracket. (Even if they are married filing separately the $60k is in the 28% bracket).

As we all know, every dollar isn't taxed at 25% or 28%... however the money that falls into the higher bracket does get screwed.

In years past it was much worse. The tax laws are getting much better for married folks (bringing them more equal to their single counterparts). In 2009 the married folks will be on equal footing (unless they change the rules again)...
 
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BuckeyeSkins said:
Sorry if I appear to be climbing on my soap box but a single tax payer takes it in the shorts. .


Wait untill you get married. You'll still take it in the shorts, in a different way!!! :biggrin: :biggrin:

The money you save by being married, will more than be offset by being married. :biggrin:
 
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how about this:

the company i work for believes in lower salaries and then giving bonuses. granted getting a nice bonus is pretty sweet, but they tax it as if that how you got paid all of the time..

example

if you make 30K/year you make approximately 1150 per 2 weeks and thats what you get taxed on. if you get a 5k bonus check its taxed as though you made 130k that fucking sucks
 
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Thump - some of those improvements may be elibigible for tax credit status if they are energy related.

FWIW if you are at all good with numbers and can tolerate a little frustration it is worth learning to do your own. Most of the pros are major ripoffs (stay away from H&R Block) who will make more errors than you can. Once you get the hang of it things stay pretty much the same from year to year. Different story if you get into running your own business (although not overwhelming) or start racking up lots of investments (in which case you can afford a pro).

Even if you pay to have them done take a shot at it yourself first and and see how far off you end up.

Brutus - that is a bummer about the way bonuses work, but it all works itself out at the end of the year.

(As for Block - Last year my daughter and her husband went to H&R and they charged them $200 for short form. I managed to head them off before they had actually paid the fee. Did them myself in half an hour and got them a bigger refund.)
 
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I'm just getting ready to do mine. I have used turbo tax for the last 3 years and it has been great.


I am scared as to what they will look like this year. I had a lot going on including an out of state move, buy and sell of house, rent for awhile. The company gave me money for the move, but I didn't claim against all of it so I have a 1099 to contend with also.
 
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got the taxes done yesterday. getting a nice little chunk back from feds but have to pay state :( . Going to pay off our wedding credit card, and then savings for new siding, (70's yellow aluminum siding must go!)
 
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WSJ: What You Need to Know Before Filing Your Taxes

What You Need To Know Before Filing Your Taxes
April 2, 2008; Page D1

By TOM HERMAN

The taxman giveth, and the taxman taketh away.

As millions of taxpayers scramble to meet the April 15 filing deadline, they need to pay attention to several new tax-law twists -- and watch out for a few classic blunders.

Among the new provisions: a deduction for mortgage-insurance premiums and special relief when a lender forgives a debt on your home. There's even a new break for people who work for the Central Intelligence Agency, the National Security Agency and other similar organizations -- and it's not top secret.

But there are also new restrictions, such as a new record-keeping rule for cash donations. Separately, the Internal Revenue Service issued a long-awaited ruling last year shooting down an investment idea that some accountants had recommended to their clients.

Even if you've mastered all the new rules, it's easy to trip over a few old ones. For example, most married couples probably realize they're better off filing jointly, rather than separately. But for some people, filing jointly can be a major error. Separately, many upper-income taxpayers who worked for two or more employers last year may have paid too much in Social Security taxes.

If you can't finish your return by April 15, you can file for an automatic six-month extension. But filing on time is especially smart this year because the Treasury Department will be handing out more than 130 million economic-stimulus payments, starting in May. To get a check this year, you have to file a return for 2007.

Here are a few significant changes to look for this year, as well as other last-minute tips and warnings from accountants and enrolled agents:

* Individual Retirement Accounts. You can still make a contribution for 2007 to an IRA as long as you do it by April 15.

[...]

* New breaks. The new mortgage-insurance deduction is limited to those with income below a certain level. The deduction begins to disappear once your adjusted gross income exceeds $100,000, or $50,000 for a married person filing separately. It disappears completely once income exceeds $109,000 or $54,500, respectively.

[...]

* Charity. You are no longer allowed to deduct a cash contribution, no matter how tiny it may be, unless you have proof. Proof includes a "bank record," such as a canceled check, bank statement, credit-union statement or a credit-card statement, showing the name of the charity, the date of your gift and the amount. Or you could get a receipt from the charity showing all those details.

[...]

* Don't forget to check to see whether it would make sense to deduct your state and local sales taxes, instead of state and local income taxes. This is especially important for people in Florida, Texas and other states with no income tax. But many people in other states also may benefit from it. Just remember: You can't deduct both sales taxes and state and local income taxes. And you can't deduct either unless you itemize.

* If you've been looking for work, certain job-search expenses may be deductible -- even if you haven't yet landed your dream job. But you can't deduct any of these expenses if you're looking for a job in a new occupation, or if you're looking for work for the first time, or if there was a "substantial break" between the end of your last job and your search for a new one, the IRS says. This can get tricky. Consider consulting a tax pro.

* Many people automatically claim the standard deduction even though they would be better off itemizing, government studies have shown. Crunch the numbers both ways to see which is better.

[...]

ADDITIONAL READING
* For more details on tax-law changes, see IRS Publication 553 (.pdf)
* For more information on tax issues affecting individuals, see IRS Publication 17 (.pdf)
* Here is the IRS form to use to apply for a filing extension. (.pdf) This extension will give you more time to file -- but not more time to pay what you may owe.
 
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