Federal Income Tax.

[bobsallyh]

Well one of the reasons so many winter visitors  in Yuma, AZ. and probably other snowbird areas, always say they need "to beat feet home" is to do taxes. Well the Feds just extended that out 90 days.

[Ray,IN]

Gives the scammers more time to steal other peoples returns. I never did return home to file taxes. I mailed my paperwork to my accountant, she faxed me the papers to sign, I faxed them back.

Edited March 18, 2020 by Ray,IN

[D&J]

We already did ours online like we have for years, it gets easier every year but we've done our own for years even when I was in business. 

Denny

[hemsteadc]

It's so easy to do them online and not have to go home.

[2gypsies]

I could never understand that comment "I have to get home to do my taxes".

[sandsys]

8 minutes ago, 2gypsies said:

I could never understand that comment "I have to get home to do my taxes".

I suspect those are people who don't carry their paperwork with them nor do business online. If your 1099s are mailed to your house, you would need to go home?

Linda

[Barbaraok]

27 minutes ago, sandsys said:

I suspect those are people who don't carry their paperwork with them nor do business online. If your 1099s are mailed to your house, you would need to go home?

Linda

We get all of our 1099s by downloading.  The only one that still sends them is Social Security, and we already know what the numbers will be, so we have the taxes all done by the time the snail mail copy arrives.   

[sandsys]

1 minute ago, Barbaraok said:

We get all of our 1099s by downloading.  The only one that still sends them is Social Security, and we already know what the numbers will be, so we have the taxes all done by the time the snail mail copy arrives.   

Yes, our taxes are done and small refund deposited. But, not everyone is as comfortable doing things on line as we are.

Linda

[hemsteadc]

6 minutes ago, sandsys said:

. But, not everyone is as comfortable doing things on line as we are.

Linda

Hence they have to go home and deal with paper.

[Kirk W]

7 hours ago, Barbaraok said:

We get all of our 1099s by downloading.  The only one that still sends them is Social Security, and we already know what the numbers will be, so we have the taxes all done by the time the snail mail copy arrives.  

The same is true for us. With the increase in the standard deduction, few retired people on fixed incomes gain anything from filing long form. We have friends who continue to pay someone for doing their taxes, more from fear or lack of understanding than anything else. I really think that most people who use a computer at all would be surprised by how easy it has become. Nearly all of the software today will interview you and you just supply the numbers and it figures out the most beneficial way of filing. Unless you have more than $12,200 per person in deductions, you can use the standard deduction and it even determines if you SS will be taxed and if so, how much of it. 

Many of us qualify to use the IRS, free file option that takes you to various company programs to use with no cost at all. 

 

[hemsteadc]

My retirement system (city gov't), through fear or incompetence, stopped posting 1099s online, so this year I had to wait out the paper mail to get my duplicate because the first one is lost.  Rather frustrating to say the least when that took 9 days from WA to CA.

And of course they couldn't just take a picture of it and send it to me, or just tell me the 2 numbers I need.  Oh no, that's "unsecure" and "not our policy".  Meanwhile, someone has my original 1099 with my SSN on it. 

Edited March 18, 2020 by hemsteadc

[vermilye]

8 hours ago, Barbaraok said:

We get all of our 1099s by downloading.  The only one that still sends them is Social Security, and we already know what the numbers will be, so we have the taxes all done by the time the snail mail copy arrives.   

Social Security started making 1099R forms available on line last year.  Prior to that, when on the road  I had to go to a SS office & wait 4 hours for them to print one.

[Pappy Yokum]

11 hours ago, sandsys said:

I suspect those are people who don't carry their paperwork with them nor do business online. If your 1099s are mailed to your house, you would need to go home?

Linda

IMO - "I have to go home to file my taxes" - may just be a "convenient" reason.

Taxpayers have always had the option of filing for an extension.  If the Feds and/or State "owe" you - it's not a big deal. The "at home" tax preparer should be able to easily coordinate same.

Mailed to your house? - Ask for a duplicate 1099 to be mailed to your current location.

Maybe it works - maybe not.  No harm in trying.

.

 

[sandsys]

2 hours ago, Pappy Yokum said:

Taxpayers have always had the option of filing for an extension.

Yes, but. My understanding is if you think you owe them money you must pay it on time even if you file late. This year, however, is different because of COVID19. Now you have to file but payment can be delayed. Please, be sure you are getting right information from a valid source before deciding what you should do. Don't quote me as your source because I am already passing on second hand information.

Linda

[richfaa]

We have been filing online for years no problems with1099's of any kind. Filed both State and  Federal  3-2-2020 and deposited the refunds  3-12-2020.

[Big Rick]

Deadline to file has not changed, the 90 days is to pay if you owe

[rickeieio]

Not everyone has so simple a financial situation as to be able to file on-line.  Just yesterday, we spent two hours with our accountant, going over  insurance, rents, crop sales, land sales, the list goes on.  And this for the personal return, the business return gets filed in Sept.

On the flip side, we don't full time, our kids and grandkids are here, and we love spring in the Ohio Valley.  It's no hardship to make sure we're back in time.

Thank goodness we get another 90 days to pay.  We'll owe.😭

[Twotoes]

The IRS did not extend the time to file. You still must file by April 15th. However, if you owe taxes you have 90 days interest free to remit payment. 

[Ray,IN]

On 3/17/2020 at 10:32 PM, bobsallyh said:

Well one of the reasons so many winter visitors  in Yuma, AZ. and probably other snowbird areas, always say they need "to beat feet home" is to do taxes. Well the Feds just extended that out 90 days.

Today my CPA told me taxes must be filed NLT April 15, no change. What did change was; there will be no interest or fees assessed for late payments for 90 days after taxes are due.

[Kirk W]

12 hours ago, rickeieio said:

Not everyone has so simple a financial situation as to be able to file on-line. 

No question that you are correct in that but have you ever tried one of the income tax programs? We have done our own taxes for many years and we shifted to a computer program in the early 90's, when our taxes were more complicated and the programs mostly helped to fill out the same forms and you had to print them out and mail them to file. Over the years since then the programs have become much better and they cover more things with very few situations today which a good program does not have built into it. You may be the exception, but my son the financial analyst estimates that perhaps as many as 60% of those paying to have their taxes done could do their own if they  realized it. 

For those that don't want to prepare their taxes online, downloadable versions of the tax software are available: TurboTax: $39.99 to $109.99. TaxACT: $24.95 to $124.90. H&R Block: $19.95 to $79.95 plus the cost of state returns and state e-file. On the other hand,.....

Quote

The average cost for tax preparation is $225 per return. Hiring a tax accountant to file your taxes, you will likely spend between $99 and $450 per return. The price of tax preparation can vary greatly by region (and even by zip code). The average cost for tax preparation is $225 per return. Hiring a tax accountant to file your taxes, you will likely spend between $99 and $450 per return. The price of tax preparation can vary greatly by region (and even by zip code). 

 

Edited March 19, 2020 by Kirk W

[rickeieio]

Kirk,

Yes, I've looked in to the programs like Turbo-Tax.  With rental property, and multiple renters, health care, insurances and a host of other considerations, the fees paid to the accountant are worth it.  I'm a semi-retired farmer, so we are leasing out the land, which is owned by multiple entities, again for tax purposes.  Being the only employee of a corporation, which we own, makes health care and insurance "interesting".  And now we're selling some assets, which triggers capital gains, so if I sell a tract of land or equipment, I give Uncle Sam 20%.

Some day the IRS will have the "Really Short Form", which might say,  "How much did you make.....send it."

 

 

[Twotoes]

I too have rental properties with depreciation schedules and have to file a Schedule C for each property in addition to my 1040. The IRS computers will more likely kick out your return for a review by a live person if done by the individual rather than a professional tax preparer, mostly for math errors. So paying a professional is like buying insurance so as not as likely to be reviewed. Just my two cents. Hopefully I don’t have to pay tax on that two cents, lol lol lol. 

[Pappy Yokum]

3 hours ago, rickeieio said:

 

Some day the IRS will have the "Really Short Form", which might say,  "How much did you make.....send it."

 

 

 

"Some day.... the IRS".........combine the two, and you have.....   "THEIRS"

😉

[D&J]

22 minutes ago, Twotoes said:

I too have rental properties with depreciation schedules and have to file a Schedule C for each property in addition to my 1040. The IRS computers will more likely kick out your return for a review by a live person if done by the individual rather than a professional tax preparer, mostly for math errors. So paying a professional is like buying insurance so as not as likely to be reviewed. Just my two cents. Hopefully I don’t have to pay tax on that two cents, lol lol lol. 

I understand your misgivings of doing it yourself but when had my Electrical, Refrigeration and HVAC buisness we used a lawyer first and then a CPA and had nothing but problems with our taxes, the CPA was the worst. Then we started using TurboTax and after we got all our information inputted including all our buissness depreciation schedules, 1099s, rental depreciation, investment schedules and income it was easy even when we sold the rental property and sold off my business equipment. It checks all math and deductions plus everything will carry over to the next year so the second year is even easier. We no longer use it because our taxes are so simple now we use free fill.

Denny

[Twotoes]

Thanks Denny. I have been using the same account now for about 15 years. He is great. I pay very little in income taxes due to his ability to get me the maximum depreciation on my property. What I save on tax more than offsets what I pay him vs turbo tax.