2007 taxes

[Liz2254]

Re: 2007 taxes

Do you have a yarn shop?!?!?! That is such a dream of mine... although truly I'd rather just hang out in someone else's shop... good luck!!!

[HouseofWool]

Re: 2007 taxes

I so wish it was a yarn shop. But honestly, no, I knit and sew some stuff that I sell at craft fairs.

http://www.shopbagatelle.com

I am in the process of updating the site, but as I also work full time and have a 5 yo - the website gets pushed to the back burner.

[medpedspouse]

Re: 2007 taxes

medpedspouse, how did you decide who to go with? Anybody familiar with Cleveland have a suggestion of who to go to?

word of mouth. I asked A LOT of friends. The first one we chose I really did not like. May have been the very best but I had loads of questions and he did not seem too patient - tried to hurry me out of his office. :huh: Maybe he had another appointment. Regardless, I thought we did not "click" so I asked some more friends about who they worked with if they had an accountant. We ended up choosing the accountant for DH's office. The partners use her and I thought if she was good enough for the office and the partners, she would be good enough for us. Have not met her though. Just spoken over the phone.

Re: 2007 taxes

Hey I noticed several articles on late tax changes in 2007 causing issues with filing in 2008.

As a result of Congress' late action, the IRS says that 13.5 million taxpayers who use one of five forms to claim certain credits--including college credits; the child and dependent care credit (if claimed on a 1040A); and residential energy credits--won't be able to file their 2007 returns when tax filing season officially opens Jan. 14. Instead, the IRS is aiming to begin processing those returns Feb. 11--meaning it won't accept forms that claim the credit electronically until then, and any it receives via postal mail will be put aside for later processing. Confusingly, taxpayers who use the forms are subject to the delay even if they don't owe and have never owed AMT; taxpayers who pay AMT--but don't claim the credits--can file on time.

Meanwhile, Intuit (nasdaq: INTU - news - people ), maker of the top-selling TurboTax program, plans to offer a way for taxpayers who claim one of the credits to get part of their refund from the IRS sooner. Taxpayers who buy the program or use a basic "free edition" of TurboTax available at the TurboTax web site can file electronically, beginning Jan. 14, without claiming the credits. Then, after Feb. 11, they can return to the TurboTax site, and with one click, generate an amended tax return (known as a 1040X) claiming the additional credit, which they can print out and mail to the IRS.

http://www.forbes.com/2008/01/09/congre ... d=rss_news

Turbo Tax is sappose to have online warnings of any changes.

[DCJenn]

Re: 2007 taxes

They do- they update you via messages and the forms every time you log on.

Jenn

[fluffhead]

Re: 2007 taxes

Ouch!!! My first time getting hit with AMT - $3,445.
So what does that buy - one screwdriver getting sent to Iraq?

Re: 2007 taxes

Taxes are PAINFUL. We owe - again. This time about $7K. Not the AMT, but we cashed out a 403b to get rid of our consumer debt, and although we had tax witheld, it wasn't enough. uch: One step forward, two steps back.

Have I mentioned how I think "wealthy" needs to be re-evaluated? The idea that people who make millions of dollars are in the same tax bracket we are makes me crazy.

[Liz2254]

Re: 2007 taxes

I had the same thing happen - cashed out some stock options and they didn't withold enough - to the tune of $4K. It's painful.

[fluffhead]

Re: 2007 taxes

I never get a refund, because I always take too many deductions, and pay too little estimated. I don't care about owing at the end - I'd much prefer to pay later than earlier. But this AMT thing makes me furious.

[Amiens]

Re: 2007 taxes

We hired someone the first year dh was out, and this will be our third year with our accountant, and we absolutely love him. He is definitely worth the $400, as he helps us plan for about 2 years out. We figured we were going to have to owe this year about $3600, and we owe Uncle Sam. Mostly because my inlaw's have an LLC which all 6 kids are partners in, and they sold livestock and made money on a rental property. It kind of upsets me that we have to pay $2000 on the LLC taxes for something we have no control over. Another part of it was from having a nanny, and having to pay employment taxes. Otherwise I think we would have had a small amount to pay like hundreds instead of thousands. I really hate AMT- we got knicked big time this year, and our deductions got gradually phased out because of income.

(little rant: really makes me mad that we paid almost 40% to the federal government (& we pay 8% to our state), and people who paid no taxes are getting rebates (another issue in itself as the government doesn't actually have that money to hand out thanks in part to the huge national debt), and yet here we are busting our butts to make it and we won't see a penny. :banghead: I keep telling myself that it's ok, because that money is more like a loan instead of an actually rebate)

Luckily because we have a smart plan in motion, and dh has enough with held we will not have to pay quarterly taxes this year.

Please let the 15th come and go quickly.

Re: 2007 taxes

But this AMT thing makes me furious.

Ditto. Pretty much the only write-offs we can claim are mortgage interest, property taxes, charitable contributions and one child and we still get slammed with the AMT every year. Those don't seem like excessive write-offs to me....it's not like we're claiming interest on a multi-million dollar house. :banghead:

[HouseofWool]

Re: 2007 taxes

But this AMT thing makes me furious.

Ditto. Pretty much the only write-offs we can claim are mortgage interest, property taxes, charitable contributions and one child and we still get slammed with the AMT every year. Those don't seem like excessive write-offs to me....it's not like we're claiming interest on a multi-million dollar house. :banghead:

Since DH is still a student, the ATM doesn't affect us yet. The one thing the accountant kept says was "have more kids". I can't wait to start on that again. Just 6-8 more months before we start trying!

Re: 2007 taxes

I never get a refund, because I always take too many deductions, and pay too little estimated. I don't care about owing at the end - I'd much prefer to pay later than earlier. But this AMT thing makes me furious.

on all counts. We are getting back too much but should have that sorted out for 2008. I know we will get hit with the AMT next year.

[DCJenn]

Re: 2007 taxes

I'm so glad we don't get hit with the AMT.

and according to our taxes, we (together) made under 100k. (remember that the income from deployment time doesn't count.)

Our taxes amused me this year.

Jenn

[fluffhead]

Re: 2007 taxes

Our taxes amused me this year.

If you can find the humor in my taxes, I'd sure like to hear it. I'm gonna be writing about $27K of checks this week.