Foo - Stuck inside- this sucks!

It's a beautiful day outside here... and I'm stuck inside preparing the taxes. This sucks so bad- I hate math, taxes, and not being able to go out and ride on a nice day like this. :(

I know it's my fault. I procrastinate every friggin year, and I don't know why. Taxes are tedious. But I've learned... I'm going to keep all of this year's receipts together and drop them off at H&R Block in January and let them do my taxes. There are way too many deductions and crap that I have to deal with- I'm over my head. I'm just feeling lucky that I have 7 years to refile in the event of mistakes.

*sigh*

All right, go TurboTax!

Koffee

Just finished my taxes yesterday. I feel for you. Next year I'm paying to have my taxes done to.

Well, a big part of my headache is that the laws are so confusing. I cashed out my Roth when I quit my job, since I didn't plan to work for the next few months. So now, I'm trying to figure out what they mean by the 10% tax... like 10% of the profit I made off the IRA or 10% of all the money that was in the IRA? I spent all last night reading through the laws, and I'm still not understanding. So now, I'm hoping TurboTax will tell me how to do it and figure out this Roth crap.

*sigh* :(

Koffee

Unfortunately, it may be 10% of the total value of the IRA you cashed out. Might be different for a Roth IRA than a traditional IRA, so don't take my word for it (I cashed out some traditional IRAs a few years back).

My best guess is 10% of total value for traditional IRA, 10% of profit for a Roth IRA, but again, don't take my word for it.

If there's one thing I hate about taxes, it's the ambiguous instructions provided by the IRS...:(

Here in Vermont, and I think(?) where you are we have 'til the 18th this
year ! So my 6 month extension form will be deposited on Monday :roflmao:

Well, a big part of my headache is that the laws are so confusing. I cashed out my Roth when I quit my job, since I didn't plan to work for the next few months. So now, I'm trying to figure out what they mean by the 10% tax... like 10% of the profit I made off the IRA or 10% of all the money that was in the IRA?
The 10% is a penalty, not a tax -- and is in addition to any taxes (which will be only on the gain, since a Roth is done with post-tax money). The penalty does not apply to what you contributed to the Roth, only on the gain (see the excerpt below from http://www.aarp.org/money/financial_planning/sessionseven/roth_iras.html)

Penalties
There is no early withdrawal penalty on the money you contributed to a Roth IRA. But there may be a penalty for withdrawing earnings from the Roth IRA unless you meet the same exceptions that apply to Traditional IRAs (see the comparative table). In addition, though, you may withdraw money without penalty to pay health insurance premiums after losing your job.
I believe penalties don't apply in all cases, though, so TurboTax may be able to guide you to an avoidance of the penalties.

I did my taxes 2 months ago... feels soooo good. :p

Stuck inside- this sucks!

I get my accountant to do my taxes :D

Well, im off for a ride!!!

suckkkkerrrrsssssssssss!!!!!!!!

Well Koffee, get out that calculator and punch those numbers like crazy!! It's still not too late! You can still ride if you hurry! So log off of BF and get to work, girl! ;)

This is the biggest consumer rip-off going. The tax laws should be changed so that 90% of the population can simply fill their taxes out on a postcard-size form once a year. The small minority in the upper income brackets can fill out their brain-teasers as usual, but there is no excuse for subjecting the average taxpayer to this nonsense...paying taxes is one thing, but forcing us to keep extensive records and to become amateur accountants is plain onerous.

^^^^ Having suffered penalties twice for stuff I had no idea I
was doing worng and at a Personal Adminstrators advice I see why they
do it....ITs very easy for them to make zillions of dollars in interest and
penalty fees because things are so complicated. In 1995 they hit me up for
a mistake I made in 1989 about my 401 k plan one month before it would
have to be forgiven. So.....not only did they make sure they waited 7 years
to call me on it I owed a phenomenal amount of interest......enuff to have
to go time payment. There is no recourse. What can you do ?? I cant
see why people cry about socialism when this stuff goes on on top of
the 32% that gets stolen from most people.

Thats what they invented H & R Block for. Of course i went to Jackson Hewitt for the first time this year and i was stepping the person through all of the screens, explaining to them what they meant, what type of information and they charged me 175 bucks for me explaining to this tax preparer what to do.

I should have just done them using a 25 dollar piece of software with wizards :p Definitely aint complaining about the refund though, even after they raped it by taking their fee.

Because tax codes are written by and for the top 2%ers, the rest of us are just cash cow suckers.

Because tax codes are written by and for the top 2%ers, the rest of us are just cash cow suckers.
Lol, I used to believe that, until I got this year's refund :p I was like wholly freaking balllzzzzzzzzzzzzz.

Lol, I used to believe that, until I got this year's refund :p I was like wholly freaking balllzzzzzzzzzzzzz.
That's just 'cause your employer has you down for too few exemptions. File a new W4, don't let the feds keep your money interest-free all year long.

Actually I put 0 exemptions down on purpose just for that purpose :p I'd rather get money back then pay money in. Its like a nice little suprise at the end of the year. A 2nd christmas as you could say. And it forces you to budget along what you're left with.

Yeah, but it's an illusion - you're paying in all year long, and more than you need to. IMO, the best thing is to try and balance your exemptions so you're paying just enough - not too little and not too much.

I like suprises so this is better :p Cause i'd never notice an extra 100 a month. I just wouldn't But I do notice an extra 1200 at the end of the year. Like whoa. sweet what can i do now with this..

The 10% is a penalty, not a tax -- and is in addition to any taxes (which will be only on the gain, since a Roth is done with post-tax money). The penalty does not apply to what you contributed to the Roth, only on the gain (see the excerpt below from http://www.aarp.org/money/financial_planning/sessionseven/roth_iras.html)

I believe penalties don't apply in all cases, though, so TurboTax may be able to guide you to an avoidance of the penalties.

Well, thanks. I am trying to figure out how much I originally paid. With my move, somehow, some of my papers are long gone (how, I don't know). So I call my fund folks, and they're just gone for the weekend. So I have to wait until Monday and call. Luckily, I get out of work at 2pm, so I should be home by 3:15pm, and I can fill in the blanks. But for now, I'm just trying to do as much as possible.

Koffee

Here in Vermont, and I think(?) where you are we have 'til the 18th this
year ! So my 6 month extension form will be deposited on Monday :roflmao:

I think when you get an extension, it's only for 3 months...

This is the only time I wish I lived in DC so I would have that extra day, but I'd still be frazzled. The point is, I procrastinated, so now I'm paying for it with this brain drain.

Koffee

Unfortunately, it may be 10% of the total value of the IRA you cashed out. Might be different for a Roth IRA than a traditional IRA, so don't take my word for it (I cashed out some traditional IRAs a few years back).

My best guess is 10% of total value for traditional IRA, 10% of profit for a Roth IRA, but again, don't take my word for it.

If there's one thing I hate about taxes, it's the ambiguous instructions provided by the IRS...:(

Yeah, it's ambiguous and cumbersome too. For instance, I took three trips that were job related, and I rented cars on two occasions for job interviews. I had to pay for parking once. But it separated parking expenses from travel expenses. And when you say you used an auto, so far, it's only giving me room for when I own an auto, not rent. So I'm including my rental cars under travel expenses, because I don't know where else to put it for now.

I donated all my clothes to a church when I moved, so that stuff will need to be deducted. So I have to call the guy who I gave my donations to and get the address and name of the church. I'm sure he donated them because I got a phone call from someone from the church whose mother got one of my business suits and wanted to thank me for the suit. $300 bucks on that suit, and I donated it with the tags still on it. But how much to deduct because I've never worn it, I will have to figure that out.

*sigh*

Koffee

Thats why life should be kept simple :p

I like suprises so this is better :p Cause i'd never notice an extra 100 a month. I just wouldn't But I do notice an extra 1200 at the end of the year. Like whoa. sweet what can i do now with this..
Gov't pays no interest. :mad:

You could take $100 a month and invest/save, you still wouldn't notice it, but you'd have a lot more than $1200 at the end of the year.

:)

I think when you get an extension, it's only for 3 months...
Extension good 'til August 15. Taxes not due til Monday 4/17, you can still talk to your fund folks.

I did my taxes 2 months ago... feels soooo good. :p
+1 I spent today riding in the sun and working on my arm tan.

Extension good 'til August 15. Taxes not due til Monday 4/17, you can still talk to your fund folks.

I was thinking about that exetension. I just need about a day to wrap it up with my health insurance premiums (gotta call BCBS and get that info), plus the fund folks, and now, I can't get this info for a cycling conference I attended either- they never gave me a receipt, and they're doing a two week training camp, so it'll be hard enough to track them down!

*sigh*

Koffee

By MARY DALRYMPLE The Associated Press

"WASHINGTON — The Internal Revenue Service made it a little easier to procrastinate this year. Not only do taxpayers have two or three extra days to file, they also can ask for the first time for an automatic six-month extension.
People whose returns go to a processing center in Massachusetts have one additional day because of Patriots Day. That holiday means residents of Maine, Maryland, Massachusetts, New Hampshire, New York, Vermont and the District of Columbia have until April 18 to file."

So that six month exension is just automatically given to us, regardless of why, just because we ask for it?

Koffee

The IRS has not cared about collecting taxes since Bush came into power :p

The IRS has not cared about collecting taxes since Bush came into power :p
???? Who is / How do you think they are paying for the war, then???

HA! I did my taxes well over a year ago!

All Simpsons quotes aside, I did mine in march. I'm getting a nice check back from the feds, but I owed the SOB's in Michigan some serious coin. Next year I'll make up some bogus write off if it happens again.:)

???? Who is / How do you think they are paying for the war, then???
Thats what the deficit is all about. duhhhhhhh

The deficit would be even bigger without tax revenue, and the 2%er's certainly aren't paying their fair share...

???? Who is / How do you think they are paying for the war, then???

In case anybody wondered, 29 cents out of every tax dollar you pay goes to Iraq.

I get my accountant to do my taxes :D

Well, im off for a ride!!!

suckkkkerrrrsssssssssss!!!!!!!!


HAHAHA! me too!....cept my dad's my accountant :p

7 Years to re-file? Check on that, it WAS 3 years. Would hate to see you wait that long thinking you are going to get more back and then find out it's not happening!
JC

Ugh...be glad you aren't in the middle of Fl right now, sweltering inside a 90f apartment because your air conditioning went toes up :(

....I think I'm turning into a roast human...and keep that effing fork away from me...I am not food!

Hmmmm... I don't know if it's 3 years. I think it's longer than that, even if it isn't 7 years. But they do say to keep your tax records for 7 years.

Koffee

*sigh*

Update- I finished about an hour ago. Uuuugh, I owe Illinois, and I can't e-file... so that will come in late. But I only owe 14 bucks to them. I'm all good.

Koffee

The deficit would be even bigger without tax revenue, and the 2%er's certainly aren't paying their fair share...
Microsoft pays some several billion dollars in taxes :p

*sigh*

Update- I finished about an hour ago. Uuuugh, I owe Illinois, and I can't e-file... so that will come in late. But I only owe 14 bucks to them. I'm all good.

Koffee
Heh. when I was in the navy i had some navy person prepare my taxes. I got like 87 bucks from new mexico and 90 bucks from the feds. New mexico for the last coupld of years has said that I didn't pay taxes for the year they send me my refund :p