SWharton Posted February 18, 2019 Report Share Posted February 18, 2019 This is our first year as a full-timer with no state income tax. I am trying to figure out how to handle the Sales Tax deduction. The program asks where I was at the end of the year and assumes I was in that state all year. If I check off I lived in more than one place the program asks where I lived at the end of the year. Both answers are AZ though our domicile is TX. Am I over analyzing this? Just go with the flow and let the program think I lived in AZ all year? I would ask this on the HR Block community site but all my browsers stop me as they think the Community site is a security risk Thanks Link to comment Share on other sites More sharing options...
JRP Posted February 18, 2019 Report Share Posted February 18, 2019 In the past when I itemized, I've done it both ways. Some years I just said I was a resident of SD the whole year (even though I was traveling fulltime) and used their rate. Other years for reasons I don't remember I went to the trouble of documenting how many months I was physically in SD, CO, NM, TX, etc ; and used multiple sales tax rates proportionately. Lately, with the increases in the standard deduction, it harder for most to utilize the itemized deductions. I would also point out that if you use Tx as your sales tax residence, its 6.25% plus whatever the local rate adds on top that. In AZ it would be 5.6% plus any local adder. Jim Link to comment Share on other sites More sharing options...
SWharton Posted February 18, 2019 Author Report Share Posted February 18, 2019 OK, thanks for the insight. I did go through and figure out how many days we spent in each state thinking I would need to do the calculation that way and was floored when the program only asked me where I was in January and in December. I am thinking TX as a full year just to keep things in sync with our domicile. I didn't expect this deduction so I look at it as a bonus deduction. This will be our last year for having deductions unless the law changes again. Link to comment Share on other sites More sharing options...
rynosback Posted February 18, 2019 Report Share Posted February 18, 2019 I would really think about this and consult a tax attorney. As if you file AZ state taxes, there is a chance they could come after you to register everything with them and force you to change your domicile from TX. I am full time and stay maybe a month or two at most in one spot. My legal domicile is SD. I never file any state taxes as SD does not have any. 2015 Ram 3500 RC DRW CTD AISIN 410 rear 2016 Mobile Suites 38RSB3 Link to comment Share on other sites More sharing options...
JRP Posted February 18, 2019 Report Share Posted February 18, 2019 1 hour ago, SWharton said: and was floored when the program only asked me where I was in January and in December. Hmm, I'm only familiar with TurboTax, it asks "were you a resident of the state for the whole year?" If Yes you fill in their tax rate and you're done. If No, then it asks you to fill in durations and states and tax rates for as many states as you want to use. Jim Link to comment Share on other sites More sharing options...
SWharton Posted February 18, 2019 Author Report Share Posted February 18, 2019 I am having problems with the Federal Tax Program. Planning to file as if TX for the full year to not create a domicile situation. I would have skipped the whole Sales Tax section but the program wouldn't let me. Link to comment Share on other sites More sharing options...
SWharton Posted February 18, 2019 Author Report Share Posted February 18, 2019 Just now, JRP said: Hmm, I'm only familiar with TurboTax, it asks "where you the resident of the state for the whole year?" If Yes you fill in their tax rate and you're done. If No, then it asks you to fill in durations and states and tax rates for as many states as you want to use. Are you talking about this years Turbo Tax? Everything has changed. Link to comment Share on other sites More sharing options...
JRP Posted February 18, 2019 Report Share Posted February 18, 2019 Yes, I just did mine last week. My perspective is from using their questionnaire option where leads you through the itemized deduction questions (including state sales taxes), even though for most of us, at the end it determines the standard deduction is better. Jim Link to comment Share on other sites More sharing options...
Barbaraok Posted February 19, 2019 Report Share Posted February 19, 2019 I use Turbo Tax but really just use the forms, since they are the same year to year and we long ago ended up with standard deduction being the way to go. The only thing I use the "easy step" for would be for Capital Gains, especially when I have some gains and some loses. Barb & Dave O'Keeffe 2002 Alpine 36 MDDS (Figment II), 2018 Ford C-Max HYBRID Blog: http://www.barbanddave.net SPK# 90761 FMCA #F337834 Link to comment Share on other sites More sharing options...
docj Posted February 19, 2019 Report Share Posted February 19, 2019 1 hour ago, Barbaraok said: I use Turbo Tax but really just use the forms, since they are the same year to year and we long ago ended up with standard deduction being the way to go. We itemized for the past several years, but with the increase in standard deduction this year, there's no way we can beat it. But, if you haven't already realized it, this year there are no personal exemptions which means that ~$8k of deductions aren't available any longer. So with the standard deduction and no exemption our taxable income remains roughly the same. The tax rate for us goes down by 3% but that's the only change we see. Sandie & Joel 2000 40' Beaver Patriot Thunder Princeton--425 HP/1550 ft-lbs CAT C-12 2014 Honda CR-V AWD EX-L with ReadyBrute tow bar/brake systemWiFiRanger Ambassador Follow our adventures on Facebook at Weiss Travels Link to comment Share on other sites More sharing options...
SWharton Posted February 19, 2019 Author Report Share Posted February 19, 2019 This will be our last year of itemizing. I just never expected the Sales Tax deduction, didn't know it even existed since we had always lived in a state with an income tax. Link to comment Share on other sites More sharing options...
hamrs_62 Posted February 19, 2019 Report Share Posted February 19, 2019 doesn't matter any more with the 24,000 deduction, I had only 18,000 worth of deductions, all useless, it also seems that california is taxing social security this year, because I had to pay state this year Mark & Annette Link to comment Share on other sites More sharing options...
FL-JOE Posted February 19, 2019 Report Share Posted February 19, 2019 16 hours ago, SWharton said: This is our first year as a full-timer with no state income tax. I am trying to figure out how to handle the Sales Tax deduction. The program asks where I was at the end of the year and assumes I was in that state all year. If I check off I lived in more than one place the program asks where I lived at the end of the year. Both answers are AZ though our domicile is TX. Am I over analyzing this? Just go with the flow and let the program think I lived in AZ all year? I would ask this on the HR Block community site but all my browsers stop me as they think the Community site is a security risk Thanks Yes, you are over analyzing it. If you are a AZ resident then go with that. You may have traveled all year and only been in AZ briefly. But say for example you purchased a new car while traveling in New Mexico. You would have ended up registering it in AZ and paying the sales tax there. If you are a AZ resident then file your taxes (Fed/State) just like you were sitting there all year in a sticknbrick. At least that is the way we approach it. Joe & Cindy Newmar 4369 Ventana Pulling 24' enclosed (Mini Cooper, Harley, 2 Kayaks) Link to comment Share on other sites More sharing options...
Kirk W Posted February 19, 2019 Report Share Posted February 19, 2019 For those on fixed incomes, many of us can file electronically for free! Just visit IRS.com and follow the instructions. Federal taxes should be filed from your state of domicile. Good travelin !...............KirkFull-time 11+ years...... Now seasonal travelers.Kirk & Pam's Great RV Adventure Link to comment Share on other sites More sharing options...
FL-JOE Posted February 19, 2019 Report Share Posted February 19, 2019 I believe Kirk is correct, as long as you are below a certain income threshold. Our friend filed hers a couple weeks ago and got her refund deposited into her bank account about 10 days later using Turbo Tax. We also use it. For $39 it is pretty quick and easy. Joe & Cindy Newmar 4369 Ventana Pulling 24' enclosed (Mini Cooper, Harley, 2 Kayaks) Link to comment Share on other sites More sharing options...
chirakawa Posted February 19, 2019 Report Share Posted February 19, 2019 49 minutes ago, FL-JOE said: I believe Kirk is correct, as long as you are below a certain income threshold. Our friend filed hers a couple weeks ago and got her refund deposited into her bank account about 10 days later using Turbo Tax. We also use it. For $39 it is pretty quick and easy. I think the threshold is about $60,000 adjusted gross income for a single person. I've been filing mine electronically for several years now at no charge. I use FreeTaxUSA which I found through the IRS.gov website. I think there is a small fee if you need to also file a State return. They file it for you and this year I got a refund deposited into my bank account in four days. Everybody wanna hear the truth, but everybody tell a lie. Everybody wanna go to Heaven, but nobody want to die. Albert King Link to comment Share on other sites More sharing options...
Barbaraok Posted February 19, 2019 Report Share Posted February 19, 2019 It is $66,000 AGI for married, filing jointly. I stick with TurboTax because I use their "What-If" worksheets to plan out the coming year using various withdrawals from our IRAs (RMD, RMD*2, RMD*3) to figure out what I will need to pay in quarterly taxes with the various withdrawals and what big expenditures we think we will need. Big one this year was the new car. I am always upset if I end up with a refund > than $200 - don't like giving my money for the government to use as float. And we never get a refund, just use that amount to pay ahead on the upcoming year's taxes. This year we paid $70 more than we owed - I'm not sure I can figure it any closer than that! Barb & Dave O'Keeffe 2002 Alpine 36 MDDS (Figment II), 2018 Ford C-Max HYBRID Blog: http://www.barbanddave.net SPK# 90761 FMCA #F337834 Link to comment Share on other sites More sharing options...
Sehc Posted February 19, 2019 Report Share Posted February 19, 2019 Thank god, I have outlived my savings. My income tax has become very easy to do. I do use www.olt.com. Link to comment Share on other sites More sharing options...
Twotoes Posted February 19, 2019 Report Share Posted February 19, 2019 I have a South Dakota domicile, which has no state income tax, but all my income is from rentals in Calif. I file a Federal Tax Return and a Non Resident Calif Tax Return. CA does not tax my Soc Sec. because I am not a resident of CA. 2015 Itasca Ellipse 42QD 2017 Jeep Wrangler Unlimited Rubicon Hard Rock Edition 2021 Harley Street Glide Special Fulltimer Link to comment Share on other sites More sharing options...
whj469 Posted February 20, 2019 Report Share Posted February 20, 2019 Does CA tax your income that you made in CA? If I was domiciled in TX I would use TX's sales tax. Link to comment Share on other sites More sharing options...
hamrs_62 Posted February 20, 2019 Report Share Posted February 20, 2019 11 hours ago, whj469 said: Does CA tax your income that you made in CA? If I was domiciled in TX I would use TX's sales tax. you will have to ask a tax pro for your specific retirement, but most the time it is no, Mark & Annette Link to comment Share on other sites More sharing options...
hamrs_62 Posted February 20, 2019 Report Share Posted February 20, 2019 On 2/18/2019 at 1:02 PM, SWharton said: This is our first year as a full-timer with no state income tax. I am trying to figure out how to handle the Sales Tax deduction. The program asks where I was at the end of the year and assumes I was in that state all year. If I check off I lived in more than one place the program asks where I lived at the end of the year. Both answers are AZ though our domicile is TX. Am I over analyzing this? Just go with the flow and let the program think I lived in AZ all year? I would ask this on the HR Block community site but all my browsers stop me as they think the Community site is a security risk Thanks with the 24,000 deduction started this year itemized deductions didn't matter with me, the 24,000 was more then what I had figured for my deductions Mark & Annette Link to comment Share on other sites More sharing options...
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