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Advice on 1040 Tax Preparation

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Q: 1040 Tax Preparation Help?
Where should I put Box5, Box6, AND Box 12b information into 1040? Am I supposed to include Medicare Wages and tips into income (line 7) in 1040? What I am supposed to do for Box 12b.(Code=G) Please somebody Help!!

A: You don’t need to enter those amounts onto your 1040. The amount in Box 12 is non-taxable, and boxes 3, 5, 6 and 7 are not related to your income tax.

Q: I’m just looking for a 1040 tax form that I can fill in and print out.?
(I do not want a tax preparation program that calculates my taxes.)

I would be grateful for any advice.

Thank you.

A: The 1040 form from www.irs.gov is fillable if you have acrobat reader or writer.

http://www.irs.gov/pub/irs-pdf/f1040.pdf?portlet=3

Q: Can I expense a computer & tax preparation fees for my business?
My Business Gross income was around 45k

I want to expense the following

$1,100 – computer – dedicated for business use – physically located in office
$250 – monitor – dedicated for business use – physcialy located in office
$150 – tax prep fees – this got my 1040, schedule c and schedule se done.

1,500 total deductions or 3% of Gross Income

Thats reasonable, yes?

A: the computer and peripheral equipment is ‘listed property’ on your 4562 and you possibly can use a 179 deduction for that
if the whole $150 for tax prep was mainly the business I would say yes, but a 1040 is a personal return

Q: Do you know of any tax preparation software that supports the form 1040NR (for non residents)?
I am an internacional teacher with a J-1 visa. I am about to go crazy trying to find such software, it seems that most tax softwares support the 1040-EZ, 1040A, 1040, and 1040NR-EZ, but just can’t find one with the 1040NR , please somebody help me! I have also tried Tax Cut, Turbo Tax, H&R Block Tax Cut and others,

A: Sorry I didn’t read your whole question so I didn’t see that you had tried the one I recommended. I’ll look and let you know if I can find one. Good luck!

Q: Is there a good tax preparation company that doesn’t charge a fortune?
H&R Block charges over 200, Liberty charges about 20 dollars less, and other tax places charge the same or more sometimes. Can someone direct me to the most economical and good customer service tax preparation firm out there? I know JM Accounting and Tax Preparation charges $30 flat rate for your complete 1040, 1040A or 1040EZ… but they are a small and local office, I hear they are pretty good. They are in the Casa Grande Valley Newspapers.

A: Some of the best values you can find are in online tax preparation. You get the low cost of software (it doesn’t cost very much to do one more person’s taxes automatically), but they also have a live help system in case you run into any trouble. I’ve linked to one provider below.

Q: Tax preparation, summer internshp. Should I fill non-resident in both states?
I’m a resident of the state of Illinois, and I had a summer internship (summer 2007) in California. How should I fill the state taxes? Does any of the following options sound reasonable?

1. Fill Illinois state tax as resident (IL-1040, or their free webfile), and fill California’s 540-NR? The problem with this one is that Illinois wants to overcharge me and extra $300 for the days I’ve been in California.

2. Fill IL-1040 and IL-1040-CR and CA-540-NR to get a credit for the California tax in my Illinois forms/

3. For both states, fill as non resident or partial resident. (IL-1040-NR, CA-540-NR). The only problem here is that is that in IL-1040-NR there is no way to mention an exit date AND and a re-entrance date.

4. There is a final option of letting a software such as H&R TaxCut take care of it, but of course I hate to part with $30, which it charges for state tax filing! I’ll be ok with filling the required forms myself if I just knew which strategy to choose.
Here is the answer from the Illinois Department of Revenue, which I put here for future reference:

You are considered an IL. resident and report all income to this state. You file first with CA (non resident), then file the IL-1040 and Schedule CR. You will need to attach a copy of the CA return when submitting the IL-1040. If you need help filling out the CR, go to our web site (under Publications) and click on the PUB 111 (comparison formula for 2007 returns), find the CA return you filled out and then follow the instructions and you will then know what amounts to enter on Col. B and C.

A: Your obvious answer is to go to a tax professional. I live in No. IL. You need to file a Ca. return depending on how much they withheld. Then you will file to IL and claim the credit paid to CA. Help yourself out and go to a professional and get it done correctly. You’ll be happy you did.

Q: Tax on qualified dividends on state return?
I am a non-resident of MA. I am using turbotax for my tax preparation. My “ordinary dividends” & “interest” was carried from 1040 to my MA 1-NR/PY automatically. However my qualified dividends did not get carried over. Should qualified dividends be reported in MA return for a non-resident? Though I don’t pay any tax on any dividends & interest, I still have to report it for exemption ration calculation. I am not sure if I have to include qualified dividends in that calculation because turbotax did not do this for me automatically and hence I am not sure if it is a software error or intentional. I called them up but they didn’t have a clue what I was asking.

A: States do not distinguish between ordinary and qualified dividends. All dividends are taxed evenly at the state level.

On your federal return, there is a line showing Dividends and another line showing Qualified Dividends. Qualified Dividends are a subset of the ordinary dividends.

Example: Ord Divs = $400; Qual Divs = $150. Your “non-qualified” dividends are $250 and the total of ALL dividends is $400, NOT $550.

- A Damn Fine Tax Advisor

Q: Cost of Tax Preparation?
What does it usually cost to have H&R Block or Jackson Hewitt prepare a tax return? We have no home business, and just the normal 1040 with schedule A deductions – married filing joint, if that helps.
I’m considering having someone else do them because my husband is adamant – we’ve used turbo tax for the last several years with no issues, but I can’t convince him that we’re not “getting less than we should.” That’s the only reason I’m entertaining this option – if it were up to me, I’d do them myself.

A: H&R Block and Jackson Hewitt base their prices on the number of forms that need to be completed. I can tell you that most tax professional business prices start anywhere at $90 and up. You can go online with 1040NOW.com and prepare your federal return at no cost, but it will cost you from $14.95-19.95 to efile. It will cost you about $14.95 to prepare your state. Or you can purchase Turbo Tax software for as little as $39.88, that software will allow you to include one state return at no additional charge. There will be a small fee to e-file both returns. Or you can print your returns at no charge.

Q: I found this on the SBBT site regarding Tax rebates?
SBBT INFORMATION

If you qualify for an economic stimulus payment and if you used SBBT to pay your tax preparation fees from your refund, the IRS will mail the economic stimulus payment directly to the address on your tax return. Your payment will not be direct deposited. For more information on the economic stimulus payments, go to www.irs.gov or call 800-829-1040.

A: old news sweetie!

Q: How do I efile the 1040 form online?
I think I can E File online but I’ve a lot of questions and I know I can’t file a 1040ez. Anyone know if the online tax preparation services that E-File have a help section or live help so I can get answers quickly? I really want to efile this weekend so any help you can provide would be appreciated! Thanks in advance

A: There is still plenty of time to use an online program to e-file your taxes today. An advantage of filing today with an online tax program is the professional assistance that it offers. Programs like TurboTax offer professional online assistance to help answer any tax questions you have.

Afraid of being audited? The online tax programs provide programs like the Audit Support Center from TurboTax that scans your return for possible scenarios that will raise flags to the IRS. The program will show you where in you tax return they found these possible flags and ask you to verify the data while providing suggestions to decrease the chance of your taxes being audited by the IRS. Programs like the Audit Support Center will help you receive more money from your refund while helping you not get audited.

Another advantage of using the TurboTax is that it allows you to find answers to your tax questions very easily. TurboTax provides an online blog, email and a phone number for you to contact if you have any questions. The online tax blog gives you access to others who are having or have had similar questions and provide the solutions they used to solve their tax problem. You can use the email feature to contact a tax professional with questions on your return. This is a great method if you are not sure who to ask your question to. The system will make sure your question is answered by a professional in the particular tax field. If you prefer to speak to a live person than write an email I would suggest calling them. A telephone number is available on their site and will give you access to a live tax professional. This method is great if you have your papers in front of you and you know your questions ahead of time.

I recommend checking out the site FileTaxesToday.com in order to take advantage of the assistance available to file your taxes. I’ve used this program for the past few years and it helps me file correctly, accurately and on time.

Q: how does turbo tax compare to other tax preparation?
I did my taxes at H&R block and it costs alot of money doing it that way. Can anyone tell me how I can do my taxes and get the best result’s. I want to try turbo tax, can someone tell me if it is worth using? And have you tried the free version on the web? They have other choices but you have to pay for them. are they better? Is the one you buy in the store any good?I know i ask alot of questions but times are getting tough and i know that if someone out there has tried this it just might help someone like me. THANKS I use the 1040. my income is 26,000 approx, and can you claim a 19 year old still in school not living at home but you still support?
She goes to job corp. and gets paid only a few dollars for going to school. she has to claim her own tax return can i still claim her.

A: log into www.irs.com click on free file link it is simple to file your own taxes and free if you make less than 34K a year.I use turbo tax and it is easy.It won’t be available until Jan 16 Try it They give you lots of options but i chose turbo tax and to file your state tax is 9.99 payed with a credit card.Your son is still a dependent

Q: need tax return pro on this issue of form 1041 vs. not.?
My father died June 3rd, 2009. His Merrill Lynch individual investor account is still open and there was a TOD (transfer on death) form listing my brother and I as co-beneficiaries.
It’s open because of estate settlement issues.
I got the 1099 from M. Lynch and dividends were paid quarterly. The tax preparer said that he could calculate and estimate the dividends that belonged on my father’s tax return for the period before June 3rd and the dividends that my brother and I would report on our tax returns.
Then suddenly, the preparer said they were more comfortable doing the 1040 for my father before June 3rd and then filing a 1041 just for the dividends earned between June 4th and Dec. 31st.
So, if dividing of the dividends for 2009 could be calculated-estimated to the satisfaction of the IRS, but now using the 1041 is “more comfortable” to the preparer, this sounds like there are two ways to do it and both are ok with the IRS. One brother does not believe cats have hair (if the other brother says it’s true with proof) so this brother is insisting that the tax preparer file a 1040 for my father for 2009 and a 1041 for the estate for the small dividends paid after June 3rd and then another 1041 in 2010. My questioning this decision is based on the fact that the TOD transfers the account to the beneficiaries on the date of death so why are the 1041’s required? The brothers are co-beneficiaries and they will pay any tax due on the dividends whether there are form 1041’s or not.
So, it boils down to the tax preparation being for a single 1040, or a 1040 and a 1041 for 2009 and a 1041 for 2010 since this ML account will be closed some time between April 1 and July 31, 2010.
What is wrong with calculating the dividends in 3 pieces (my father, myself, and my brother) based on the date of death of June 3rd?
The gross income to the estate via the dividends on this one account, is under $600. The IRS told me that if it is under $600 then form 1041 is not “required”. If the tax prepaper insist on using that form, one option is to go elsewhere.
The total income to the estate after death is only about $250, so according to the IRS, form 1041 is not required. I would like to try to elimintate the two extra forms, 1041 for 2009 and 1041 for 2010. I’m the estate too, as well as the beneficiary so I’m going to pay the taxes on the “after” death estate income any way.

A: Here’s the problem. The title has not yet transferred to you.

From IRS publication 559:

How To Report
Income in respect of a decedent must be included in the income of one of the following:

(1) The decedent’s estate, if the estate receives it;

(2) The beneficiary, if the right to income is passed directly to the beneficiary and the beneficiary receives it; or

(3) Any person to whom the estate properly distributes the right to receive it.

The income in question fell into category 1, NOT category 2 as the account has yet to be transferred. If the account had been transferred the 1099-DIV would have been in YOUR name and SSN.

Did the estate distribute any money or assets during the year? It doesn’t have to be from this account. If the amount distributed exceeds the income (less expenses), the 1041 k-1s will pass the income and the tax obligation through to you anyway. If no money was distributed, then the estate pays the income tax.

Q: 1040 NR-EZ for Non-resident aliens: What should we do with figure in box 12?
I am using CINTAX for tax preparations. However CINTAX does not allow me to enter the figure in Box-12 of my W-2 which is related to my 401K (Code D). Can somebody please let me know what should I do with this figure?

Thanks in advance!

A: If you are exempt individual, you will file Form 1040NR-EZ and 8843. You do not do any thing about box 12.
Read: http://taxipay.blogspot.com/2008/03/us-tax-filing-requirements-for-non.html

Q: New Rebate Info Posted Today…..?
I know this info is not new to many people. So keep your stupid comments in the bag.
**************************************…
WASHINGTON, D.C. (SUBMITTED) — Paper stimulus checks are being mailed starting today, a week ahead of the posted schedule. Some, but not all, taxpayers will receive their checks early. There is no way to tell who will or won’t get their check early.

The top questions about Economic Stimulus Payments (ESPs) the IRS continues to get from taxpayers are:

Q. Why am I getting a paper check when I chose direct deposit on my 2007 tax return?
A. If you requested that your electronic filing or tax preparation fee be deducted from the amount of your refund, you have entered into a financial agreement with the tax preparation provider or e-file software company for a refund anticipated check (RAC). Both Refund Anticipation Checks (RACs) and Refund Anticipation Loans (RALs) are bank products. The money that is deposited into your bank account comes from the financial institution associated with your electronic filing software provider or tax preparation provider, not directly from the IRS. Taxpayers who use RALs, RACs or enter into similar loans or financial agreements with their tax professional or tax software companies will not receive their economic stimulus payments by direct deposit. Instead they will get a paper check that will be issued according to the schedule that has been published for paper check distribution.

Q. I received my stimulus payment, but it was less than I expected. Why?
A. Your economic stimulus payment is based on information provided on your 2007 income tax return.
Many but not all taxpayers qualify for the maximum basic payment of $600 for singles or $1,200 for married couples. Many parents are also receiving an additional $300 for each qualifying child, born after Dec. 31, 1990.

Your payment may be less than the maximum for one or more of the following reasons:

# You are single and your net income tax liability is less than $600. If you file Form 1040 net income tax liability is the amount shown on Line 57, plus the amount on Line 52.
# You are married and your net income tax liability is less than $1,200.
# You are single and your adjusted gross income (AGI) is more than $75,000. On Form 1040, AGI is the amount on Line 37.
# You are married filing a joint return and your AGI is more than $150,000.
# You owe back taxes that reduced your payment.
# You have non-tax federal debts such as unpaid student loans or child-support obligations that reduced your payment.

Around the time you receive your payment, you will also receive a notice from the IRS explaining how your payment was calculated. It is important to keep this notice as a record of your economic stimulus payment. In addition, you’ll get a separate notice if you owe back taxes or non-tax debts that were offset or deducted from your stimulus payment.
Posted May 9th 2008
http://www.volunteertv.com/home/headlines/18801039.html
Feel free to repost

A: Thanks for posting. I wish there was some way for Yahoo to keep this on top for everyone to read, or to make people read it before they post to this section – would sure cut down on the postings!

Q: Has anyone received that email from Taxbrain yet?
I have..
Dear Andrew Kamerdula:

On January 15, 2010 some of the initial tax returns sent to the IRS by Taxbrain were incorrectly coded to have their tax refund deposited to Republic Bank rather than to Santa Barbara Bank & Trust. You are receiving this email because we have received confirmation that a tax return filed from your Taxbrain account was among those returns.

Because the direct deposit information included with your tax filing was incorrect, the deposit has been returned to the IRS. As a matter of procedure, when a deposit is returned to the IRS, the refund is sent to the taxpayer in the form of a paper check through the mail to the address listed on the tax return.

We are working with the IRS and the banks to identify a faster way to get your refund delivered to you, but at this point we do not know if this will be possible. The typical time to receive a refund by mail is six to eight weeks.

* To check the status of your refund please use the online “Where’s My Refund” IRS tool.
* You can also contact the IRS Toll-Free at 1-800-829-1040. Hours of Operation: Monday – Friday, 7:00 a.m. – 10:00 p.m. your local time (Alaska & Hawaii follow Pacific Time).

You may wish to use this communication as evidence that your tax refund has in fact been filed and that your tax refund is being delayed due to events beyond your control.

We know that our customers look forward to, and often rely on the timely receipt of their tax refund. We take our business very seriously and I want to personally assure you that this outcome is entirely unacceptable. We sincerely apologize for the inconvenience and frustration this situation has caused. All tax preparation and service fees associated with your tax return have been waived and will not be withheld from your refund amount.
Thank you,

Craig Petz
Vice President
Taxbrain America’s Online Tax Service
LOL at the Taxbrain troll! It’s not about needing the money it’s the principal if we pay someone for their services and they don’t do it right or they don’t acknowledge their faults until 5 days later! If you got so much money go out and do fun stuff instead of trolling.

A: It’s the troll( i support taxbrain) answering with the generic response again..If anyone looks at the questions he posts to, you will see that he is only posting on the ones where there is talk about this refund mess up and taxbrain…
Trollbrain..
You really should be hard at work with all that money you brag about making..If i was above you, i would be very upset to have an employee who sits around all day and post stuff while working..

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