Comments on: 2007 Taxes Filed (Sorta)

By: My Dollar Plan

My Dollar Plan — Thu, 17 Apr 2008 03:10:40 +0000

Nickel- Thanks, I learned something new today! I see now, the penalty would be zero since it’s a percent of the amount you owe. I stand corrected:)

By: nickel

nickel — Thu, 17 Apr 2008 02:48:36 +0000

Madison, if you don’t owe anything, then what are the repercussions for filing late? Any penalties are typically based on the amount you failed to pay on time. Since we don’t owe anything, there’s no penalty. Moreover, Turbo Tax didn’t even give us the option of filing an extension since we didn’t owe. We’re just supposed to attach a copy of our federal extension to the front of our state return when we file it.

For what it’s worth, this is how it works for federal taxes, too. Since the penalties are based on late payment, you don’t actually get into trouble for filing late if you don’t owe. Of course, if you’re due a refund, there’s no sense in delaying.

By: My Dollar Plan

My Dollar Plan — Thu, 17 Apr 2008 02:25:58 +0000

Now I’m even more intrigued. You don’t have to file an extension if you are going to turn it in late? My state would never go for that! Even if we didn’t owe money…

By: FMF

FMF — Wed, 16 Apr 2008 14:47:04 +0000

Nickel –

You’re right — using a pro doesn’t mean you can forget about the tax code — you still need to know what it says to help your tax person help you.

By: nickel

nickel — Wed, 16 Apr 2008 11:55:29 +0000

MDP: Sorry for the confusion. We didn’t file our state return yet, but we also didn’t have to file an extension since we don’t owe anything.

By: My Dollar Plan

My Dollar Plan — Wed, 16 Apr 2008 03:35:18 +0000

AMT… congrats and sorry both come to mind!

I’m surprised you can file your state return without having the federal completed. That wouldn’t fly here since our state uses the numbers from the federal to get started.

By: Mike

Mike — Wed, 16 Apr 2008 03:27:14 +0000

I have a close family member who’s a tax professional and that person told me that using TurboTax is usually just fine for most people. I’ve heard bad stuff about H&R Block so I would think that if you are going to hire a professional then it should really be a professional and not somebody who’s getting paid just over minimum wage…

By: SomeGuy

SomeGuy — Tue, 15 Apr 2008 17:06:40 +0000

AMT does suck. Welcome to the upper-middle class, Nickel!

Having a pro do me and SomeGal’s costs a little over $300. Ours is a little higher due to multiple income sources for both of us. It’s absolutely worth it, though. Our CPA gives us analysis sheets comparing current year to previous, and breaking down income sources (earned, cap gain, dividend, etc), and expenses as well. Of course almost all of this can be generated through Quicken, too. We also go through our actual 1040 and other forms in detail. I can’t imagine doing my own ever again!

By: No Debt Plan

No Debt Plan — Tue, 15 Apr 2008 16:40:10 +0000

Do you think they will ever fix the AMT? Sucks… sorry to hear you got snagged.

By: nickel

nickel — Tue, 15 Apr 2008 14:30:58 +0000

Yeah, I don’t mind the idea of using a tax pro, but I still like doing things myself at least as a dry run because it gives me a much better feel for our finances.

By: FMF

FMF — Tue, 15 Apr 2008 14:22:26 +0000

Using a tax professional is a deductible expense — and well worth it in my experience.