Tax season is upon us

[agesilaus]

Just got an email from the tax prep people I used the last few years, renew for $45, which seemed high. I recall going thru this on AV software before I just began using the MS stuff and found the exact same software on Amazon at a considerable savings. Sure enough Amazon price $29 plus you can download the software years from now at no cost whereas the tax prep co wants $10 to do that.

So get a second price on these things.

[LindaH]

Good suggestion.  

Our taxes are simple enough that I can use TurboTax's free tax preparation online service.

[Kirk W]

Free File: Do your Federal Taxes for Free

 

[rpsinc]

I saw on this morning's news that Turbo Tax has ended their free filing service with IRS.

[Kirk W]

1 hour ago, rpsinc said:

I saw on this morning's news that Turbo Tax has ended their free filing service with IRS.

While they are no longer on the IRS website they do have this link:  TurboTax Free Edition

I'm not sure what they do as I have not used it, yet.

[rpsinc]

1 hour ago, rpsinc said:

free filing service with IRS

 

[vermilye]

For simple returns, check out FreeTaxUSA.  

[D&J]

Our taxes are about as simple as they can get and we tried Turbo Tax free and it's not free and that's probably why it's no longer on the IRS web page. 

We use one of the other free sites linked on the IRS site.

Denny

[k4rs]

I went ahead and spent the $15 for H & R Block Basic.  I usually have to mail a check to the IRS but it looked like I was getting a refund this year.  I thought I must have made a mistake so I went back through and sure enough, I had goofed.  Oh well, at least it appears I am in better shape than previous years.  I'll update the software and go through everything again before submitting.

Safe Travels...

[trailertraveler]

On 1/18/2022 at 10:50 AM, Kirk W said:

Free File: Do your Federal Taxes for Free

 

After seeing the IRS news releases about backlogs in processing tax returns and encouraging electronic filing, I decided to try their system. I had to use the free file fill forms. I have done my own tax returns for decades. Now that we are retired, our returns are relatively simple. I started by filing out all the forms as I usually would. I then accessed the IRS website and entered the data line by line from my completed forms. The first several attempts resulted in rejections. The explanations of the rejections and the proposed fixes were a mix of computer jargon and hard to understand (at least for me) explanations. Several of the errors involved the state field in addresses. It took several times changing the entry and changing it back to finally resolve these errors. Other errors resulted from the creation of multiple 1099R forms and a W2 form (even though I had no W2) which were not visible until logging out and logging back in a day later. Clicking the instructions link when filling out the forms linked to the instructions for the hard copy forms not instructions specific to the online forms. Two submissions to the help desk received no replies. I did finally get the return accepted. In past years, submitting my return by mail in mid-February resulted in a relatively prompt refund. I hope this year's electronic filing will result in similar results.

Edited February 5, 2022 by trailertraveler

[Kirk W]

8 hours ago, trailertraveler said:

After seeing the IRS news releases about backlogs in processing tax returns and encouraging electronic filing, I decided to try their system. I had to use the free file fill forms. I have done my own tax returns for decades. Now that we are retired, our returns are relasrtively simple.

We do not make enough to hit the $73,000 income limit so can go to the "Guided Tax Preparation" and so looked through what they offer. After looking through the choices I browsed my records of past years when I have mostly used either H&R Block or TurboTax products. Because I had used them, both had sent emails to me promoting their free editions. After some discussion with Pam we decided to give the TurboTax Free edition a shot and did so. In past years there was a fee for the actual filing but that was not the case this year. Our income tax situation is very simple nowadays with 2  1099RSS's, another 2, 1099R's , and a 1099INT. With the increased standard deduction we don't have enough deductions to even come close to needing any forms other than the standard 1040SR. The process was very easy and there were no fees. 

As a footnote, just now I received a text from my bank that our refund was deposited today. 

[lappir]

I saw a headline recently about the IRS already having all the information needed to compute our real tax burden, but they won't unless we do it first. (I didn't read the article, but from the title it was my assumption.)

While I don't believe it's true for everyone, but I would be one of the people who could fall under that assumption. I work for a company that figures and pays my portion of taxes out of my wages. I get a W2 form at the end of the year. I have a few investments, but nothing that currently generates "Income" so there are no taxes there. Why do I have to pay a person to fill in the blanks on a form? Don't say do it yourself, because the last time I did it I got audited and it cost me. Even had a CPA review it before submitting. He was the one who had done my taxes before when I had to file in multiple states. I had taken a break from travel for a few years and Florida was a no state tax state so it was pretty easy. 

I'm for a level tax on all depending on income. There are no deductions for anything. The more you make the more you pay. Balance the budget on top of that. I cannot believe how the government is just throwing money at so many different things and having no way of repaying it. It may not affect me, but it sure will my Grandkids and their kids. It's like they want to print money till there is no paper left. 

 

Rod

[Kirk W]

4 hours ago, lappir said:

Why do I have to pay a person to fill in the blanks on a form? Don't say do it yourself, because the last time I did it I got audited and it cost me.

You do not have to pay someone else to do your taxes and if you do it correctly there is no problem at all. Modern income tax software asks the user about income sources and deductions. If you use the more advanced versions of them they will cover the very same issues that a tax preparer would and in fact, most tax preparers (if not all) use one of the same tax programs but in a commercial version that costs more and has more forms and askes more questions. Even if you pay some professional tax preparer, the information that he uses must come from you so if you have a complicated return you need to keep detailed records. The most expert tax preparer that is can not file your taxes accurately if you do not supply them with accurate information and all of it. 

Since we live in TX and no longer take paid positions, we do not have a state income tax to file. Back when fulltime we did have to file a state return from stipend income a couple of times but it was never a very large amount.

We have never paid anyone to do our income taxes. We did do a lot of study of the requirements and the changes for many years but today that is not needed if you use one of the major software packages and follow the instructions accurately. I began to do ours on my computer in the late 80's and that simplified things but today those programs are much improved and require far less skill but the user still has to supply accurate information. The program that I used this year allowed me to scan all of my 1099's and such and then got the needed information directly from the documents. I did verify the accuracy of that information, just as the program suggested that I should. What used to take me several hours on the computer took about 30 minutes this year, but I did have all of the documents at hand when I started. 

Edited February 5, 2022 by Kirk W

[trailertraveler]

1 hour ago, Kirk W said:

Our income tax situation is very simple nowadays with 2  1099RSS's, another 2, 1099R's , and a 1099INT. With the increased standard deduction we don't have enough deductions to even come close to needing any forms other than the standard 1040SR.

Like yours, our return is simple. With the increased standard deduction we also do not itemize. Schedule B (for interest income) and Schedule 1 (for early withdrawal penalty) were the only forms needed in addition to the 1040. I had no problems related to these schedules. There is no 1040SR in the online forms that I saw.

The program creates blank 1099 & W-2 forms that you have to enter data into. The problems encountered all involved the creation of extraneous blank forms (1099R & W-2) that did not immediately show in the onscreen list and the failure of the program to recognize the entries in the drop down State field of several addresses. 

1 hour ago, Kirk W said:

As a footnote, just now I received a text from my bank that our refund was deposited today. 

How long did it take to get your return?

Edited February 5, 2022 by trailertraveler

[Barbaraok]

I use TurboTax because we have used them for years and because of the way our 403b investments are paid out, we have 16 different 1099R included with them (working for numerous colleges, with all having slightly different 403b programs) plus our IRA and taxable investment accounts.   I get the basic version,  don't do the walk through because I already know which forms we need, and fill them out, then use the "easy steps" to run their checking software.   We never get a refund as any overpayment is directed into our estimated taxes for the year.   We do use Schedule D as well as Schedule B because of the gains/losses on the taxable accounts.     And I especially like the "WhatIf" form that TurboTax has that lets me look at next year, trying different scenarios, to see if I need to adjust the amount of the estimated taxes.   

[Kirk W]

1 hour ago, trailertraveler said:

How long did it take to get your return?

The IRS began accepting online filed returns this year on January 24 and I filed mine on January 29, the same day as my last statement arrived. I received notice that the return had been accepted about 6 hours later. This being February 5, the refund took 1 week from filing to deposit. The length of time from the IRS accepting the return and the refunding of any overpayment does increase as the number of filings increases. 

 

Edited February 5, 2022 by Kirk W

[bigjim]

Does  RMD create any special issues using one of these programs? Never used one before but am considering it. I have RMD from Fedearal TSP and a very small IRA.  I also wait for my mailed  statements. INT-1099- SSA etc.

 

 

[sandsys]

3 hours ago, lappir said:

He was the one who had done my taxes before when I had to file in multiple states.

I suspect you got audited for not have income from multiple states since that was previously your normal.

Linda

[Kirk W]

1 hour ago, bigjim said:

Does  RMD create any special issues using one of these programs? Never used one before but am considering it. I have RMD from Fedearal TSP and a very small IRA.  I also wait for my mailed  statements. INT-1099- SSA etc.

We received our SS statements almost a month ago. The law requires that all 1099's must have been mailed by Jan. 31 so you should have them all soon. The only ones that we got by mail were from SS, with all others received electronically.

As to the RMD, assuming that you mean "required minimum distribution" then you should receive a 1099R from the fund manager and it will be taxable income but requires no special handling. Tax software will ask if you have another 1099R and you just report each one until all have been reported. In the case of TurboTax you can scan each one and then upload it into the program. As I stated before, I used the Turbo Tax Free File and it didn't charge me anything but I believe that if I had not had a pretty simple return, it probably would have and it also had I needed to do state income tax that would have cost. You can find pretty much the same with H&R Block or E-File and I believe that their rules are pretty much the same. I did use the H&R Block program last year and it charged me a small fee for the filing, I believe that it was $15 but am not sure now. I paid nothing at all to Turbo Tax this year. 

Edited February 5, 2022 by Kirk W

[lappir]

1 hour ago, sandsys said:

I suspect you got audited for not have income from multiple states since that was previously your normal.

Linda

No, it was the other way. I had not had multiple states for many years and then went back to them. Maybe the change is what happened. I had traveled for 10+ years with no problems. Used the same CPA for all those years. Stopped in Florida for bit, got a different CPA or "TurboTax" until I moved to Kansas and then started to travel again. 

I often wonder how I got picked, but then what does it really matter. 

Rod

[bigjim]

Yes, RMD, required minimum distribution.  Mail forwarding from Livingston is running slow to my current spot in TN for my statements. I like to have them in my hot little hand before doing my taxes.

[Barbaraok]

10 hours ago, bigjim said:

Does  RMD create any special issues using one of these programs? Never used one before but am considering it. I have RMD from Fedearal TSP and a very small IRA.  I also wait for my mailed  statements. INT-1099- SSA etc.

 

 

Have 10% tax withheld on your RMD, then you will get a 1099R on the payout along with the amount deducted for federal tax.   You don't have mot do that, but it makes it easier if you have some taken out ahead of time.   The RMD will be added to your other income, so it may bump you up a bracket.   Just be prepared for that.     And really, in this day and age, you should be getting everything via downloads.  Go paperless, saves time and it is just so much easier to download the info you need.   Same for everything from SS and Medicare, go all paperless.    IF you need something in hard copy you can always print it out.   

[Kirk W]

9 hours ago, Barbaraok said:

Have 10% tax withheld on your RMD, then you will get a 1099R on the payout along with the amount deducted for federal tax.

I do the same, even though I always get some refunded because I do not have the RMD withdrawn until December so the government only has the extra funds for a couple of months. 

9 hours ago, Barbaraok said:

 Go paperless, saves time and it is just so much easier to download the info you need.   Same for everything from SS and Medicare, go all paperless.    IF you need something in hard copy you can always print it out.   

And with most paperless reports, should you ever need to replace something you can go online and get a new copy. I have access to bank statements and tax documents easily for 5 years if I wish them. 

[LindaH]

11 hours ago, Barbaraok said:

And really, in this day and age, you should be getting everything via downloads.  Go paperless, saves time and it is just so much easier to download the info you need.   Same for everything from SS and Medicare, go all paperless.    IF you need something in hard copy you can always print it out.   

Absolutely!  We download all our 1099s from our brokerage account and from Social Security.  There's only one 1099 that we have to wait to receive via snail mail and that's the one from DH's  previous employer for a life insurance policy for him.  Usually, he calls the woman who handles it and gets the number over the phone before we ever receive the physical 1099.

[pinger]

On 2/5/2022 at 5:36 AM, Kirk W said:

We do not make enough to hit the $73,000 income limit so can go to the "Guided Tax Preparation" and so looked through what they offer. After looking through the choices I browsed my records of past years when I have mostly used either H&R Block or TurboTax products. Because I had used them, both had sent emails to me promoting their free editions. After some discussion with Pam we decided to give the TurboTax Free edition a shot and did so. In past years there was a fee for the actual filing but that was not the case this year. Our income tax situation is very simple nowadays with 2  1099RSS's, another 2, 1099R's , and a 1099INT. With the increased standard deduction we don't have enough deductions to even come close to needing any forms other than the standard 1040SR. The process was very easy and there were no fees. 

As a footnote, just now I received a text from my bank that our refund was deposited today. 

Filed 2 weeks with turbo tax and received my refund within a week..today I get an E-Mail form turbo tax that says you haven't filed your income tax yet ..log into turbo tax and we will guide you thru the process..SCAM alert I tried to reply but there was a mailer- daemon