Corp000085 Posted January 26, 2006 Share Posted January 26, 2006 i started doing my turbotax stuff today and i'm horrified to see that i owe a nice chunk of change. All things considered, last year's wages and contributions equal this year's wages and contributions. The only difference is the interest paid on my mortgage. I received a nice fedral refund last year but this year its saying that i owe. I'm very new to doing my taxes, so someone let me know what gives?? Link to comment Share on other sites More sharing options...
Alaska Darin Posted January 26, 2006 Share Posted January 26, 2006 If the only difference is your mortgage deduction then the difference in how much you paid should only be whatever your tax bracket percentage is of that amount. Are you sure you took all the same deductions? Link to comment Share on other sites More sharing options...
Corp000085 Posted January 26, 2006 Author Share Posted January 26, 2006 After further review, our income did increase by $8000. I also haven't added the education expenses in yet, but the refund/amound due box did not change on the federal return when i added the mortgage/real estate tax value. Will those values come into play with the state returns only? Link to comment Share on other sites More sharing options...
sullim4 Posted January 26, 2006 Share Posted January 26, 2006 Try running the calculations on paper, the rules and whatnot should become clearer. I've never liked the online services because I can't just fill out the forms and submit them. Link to comment Share on other sites More sharing options...
Fezmid Posted January 26, 2006 Share Posted January 26, 2006 After further review, our income did increase by $8000. I also haven't added the education expenses in yet, but the refund/amound due box did not change on the federal return when i added the mortgage/real estate tax value. Will those values come into play with the state returns only? 584840[/snapback] If you added the mortage/real estate taxes and nothing changed, that's because the standard deduction is higher than if you itemize. You might be out of luck. My wife works for H&R Block, so we get our taxes done for free CW Link to comment Share on other sites More sharing options...
Corp000085 Posted January 26, 2006 Author Share Posted January 26, 2006 My wife works for H&R Block, so we get our taxes done for free 584850[/snapback] you are very blessed. Link to comment Share on other sites More sharing options...
stuckincincy Posted January 26, 2006 Share Posted January 26, 2006 you are very blessed. 584852[/snapback] If you get audited, say nothing about yourself. None of this bubbly, "I like my kids, my car, my garden, my boat", they are great, I AM so proud etc etc etc. Rule #1 in the IRS battle plan is to find out what is important to the victim, - where can I apply the most pain to my target, then endeavor to take that away and make them cry uncle. It is a collection agency that rewards those who bring in receipts. Very sweet talkers, they are. And very experienced - the prototection of Civil Service and assurance of a taxpayer-funded paycheck is pretty much the only thing that keeps a number of them from becoming aluminum siding salesmen. So they persist for 30 years or so, immune from firing and become wily. Be a dull boy. Hobbies? No. Cars? No. Fancy food or wine? What's that? Art? Huh? Kids going to college? No - they are pretty stupid. And so forth. Link to comment Share on other sites More sharing options...
BB27 Posted January 27, 2006 Share Posted January 27, 2006 If you get audited, say nothing about yourself. None of this bubbly, "I like my kids, my car, my garden, my boat", they are great, I AM so proud etc etc etc. Rule #1 in the IRS battle plan is to find out what is important to the victim, - where can I apply the most pain to my target, then endeavor to take that away and make them cry uncle. It is a collection agency that rewards those who bring in receipts. Very sweet talkers, they are. And very experienced - the prototection of Civil Service and assurance of a taxpayer-funded paycheck is pretty much the only thing that keeps a number of them from becoming aluminum siding salesmen. So they persist for 30 years or so, immune from firing and become wily. Be a dull boy. Hobbies? No. Cars? No. Fancy food or wine? What's that? Art? Huh? Kids going to college? No - they are pretty stupid. And so forth. 584928[/snapback] If you get audited, and you have done your taxes honestly and correctly, then what do you care? Sounds like number 1 is more geared towards someone who has something to hide. Link to comment Share on other sites More sharing options...
ExiledInIllinois Posted January 27, 2006 Share Posted January 27, 2006 If you get audited, and you have done your taxes honestly and correctly, then what do you care? Sounds like number 1 is more geared towards someone who has something to hide. 585389[/snapback] I see your point. Is ANYTHING correct? That is what I fear? Please don't take this advice but, I will throw it out there: Apply logic, reason and stay within the thresholds. Besides, just live pay check to pay check! Link to comment Share on other sites More sharing options...
Alaska Darin Posted January 27, 2006 Share Posted January 27, 2006 If you get audited, and you have done your taxes honestly and correctly, then what do you care? Sounds like number 1 is more geared towards someone who has something to hide. 585389[/snapback] Newflash: There are few professional tax preparers who get ITR's correct because the laws are so screwed up. Consumer Reports proves it every year. SiC gve excellent advice that shouldn't be cast aside so easily. Link to comment Share on other sites More sharing options...
BB27 Posted January 27, 2006 Share Posted January 27, 2006 Newflash: There are few professional tax preparers who get ITR's correct because the laws are so screwed up. Consumer Reports proves it every year. SiC gve excellent advice that shouldn't be cast aside so easily. 585677[/snapback] Hiding assets is not good advice. Link to comment Share on other sites More sharing options...
Alaska Darin Posted January 27, 2006 Share Posted January 27, 2006 Hiding assets is not good advice. 585688[/snapback] That wasn't what he was advocating but carry on. Link to comment Share on other sites More sharing options...
Chef Jim Posted January 27, 2006 Share Posted January 27, 2006 Hire the best CPA you can. I see tax returns all the time. The most effed up ones are the ones people do themselves. It's worth every penny to have a professional do them. Link to comment Share on other sites More sharing options...
Fezmid Posted January 27, 2006 Share Posted January 27, 2006 Hire the best CPA you can. I see tax returns all the time. The most effed up ones are the ones people do themselves. It's worth every penny to have a professional do them. 585796[/snapback] Actually, a lot/most CPAs don't know what the heck they're doing with individual tax returns either. My wife says that the returns that CPAs have done in the past are usually worse than what individuals do. YMMV. Link to comment Share on other sites More sharing options...
Chef Jim Posted January 27, 2006 Share Posted January 27, 2006 Actually, a lot/most CPAs don't know what the heck they're doing with individual tax returns either. My wife says that the returns that CPAs have done in the past are usually worse than what individuals do. YMMV. 585808[/snapback] That'll be why I said the BEST CPA you can find. Link to comment Share on other sites More sharing options...
Fezmid Posted January 27, 2006 Share Posted January 27, 2006 That'll be why I said the BEST CPA you can find. 585830[/snapback] Yeah, but how do you figure out if you have a good one or not (before being audited)? Link to comment Share on other sites More sharing options...
Chef Jim Posted January 27, 2006 Share Posted January 27, 2006 Yeah, but how do you figure out if you have a good one or not (before being audited)? 585846[/snapback] That'll be what we in the biz call a referral. Link to comment Share on other sites More sharing options...
KD in CA Posted January 27, 2006 Share Posted January 27, 2006 Actually, a lot/most CPAs don't know what the heck they're doing with individual tax returns either. My wife says that the returns that CPAs have done in the past are usually worse than what individuals do. YMMV. 585808[/snapback] A lot of people think that CPA = tax guy when in reality there are probably more of us doing corporate finance than personal tax returns. I've been a CPA for over 10 years and have never done anyone's taxes but my own. Find someone that has built a practice doing personal returns; not just someone who has the initials. As for Corp85's question, if you paid less in mortgage interest, that's probably your answer. Also, check out your AMT calculation; depending on your income level, that could be part of the issue. Link to comment Share on other sites More sharing options...
ExiledInIllinois Posted January 27, 2006 Share Posted January 27, 2006 As for Corp85's question, if you paid less in mortgage interest, that's probably your answer. Also, check out your AMT calculation; depending on your income level, that could be part of the issue. 585927[/snapback] Good point. Isn't it true that if they don't reform the AMT (I think first instituted in the early 1970's...1972 or so?) that in about 10 years the AMT level will be effecting people making 50 grand or so. I recall seeing something on this. ?? Link to comment Share on other sites More sharing options...
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