Taxes...happy(:)), then sad(:()

Canelek · Post by **Canelek** » February 22, 2006, 1:08 am

So I was working my way through the turbotax online deali-o and the happiness mounted...the little ticker in the upper left of the screen got up to around $2500. Yay me!

Then, the next form arrived in the make and model of a 1099g. Hmmm, oh yeah, I forgot that I did the fun-employment thing for 5 months...don't I pay taxes for that already??--also, I had never used unemployment before...I should be covered...

Thanks to turbotax online, the user is able to see the numbers rise (green-refund) or fall (red-owe) according to information entered...

I got to see a nice little windfall go from $2500 (green) to $450 (red). Such a tease, this little bitch is.

Any ideas on turning the frown upside down? I am no accountant--in fact, I am barely a talking ape when it comes to numberfication and whatnot. Can I avoid the whole inconvenience of the "unemployment compensation" thing? I really have nothing to itemize, so that is out, unless there are some creative cpa-types around.

Cheating methods are welcome, as long as I do not get audited.

Ashur · Post by **Ashur** » February 22, 2006, 1:49 am

Nope, Unemployment is taxable income. You often have the option to have taxes withheald, but let's face it, when you're on Unemployment you normally need every stinking dime and are banking that you'll get a job to cover the deficit.

Sorry Canno - all I can say is, Student Loan Interest? Katrina donations (worth more than you'd think in most cases!)?

I got my own 1099g from the state income tax return I had last year, yeah, such suckage to get taxed on a tax refund.

I am a huge fan of the TurboTax online dealie myself. I haven't finished my taxes yet because I still have to input the 1099g and find out how much I paid in Student Loan Interest, I just had what we paid on my wife's loans.

Deward · Post by **Deward** » February 22, 2006, 11:07 am

I get lots of itemized deductions through rental properties. One way to increase refunds is to donate to goodwill. You don't need a receipt from goodwill if you drop off less than $250 worth of goods PER drop. So if you donated 4 times at $200 a pop, that is $800 of deductions. You would be amazed at soem of the values placed on things. I use that it's Deductible program. With a new baby, we constantly have old crap that could be thrown away but instead we dump it at the goodwill's back door. An old pair of jeans in wearable shape is worth like $5. I have learned to never throw anything of value away.

Aabidano · Post by **Aabidano** » February 22, 2006, 11:24 am

Did mine with TaxCut and I owe too freaking much and got hit with a penalty. Don't think it'll help but I'm going to visit an accountant sometime this month. No idea what's going on, I paid a lot last year as well.

Changed my W4 and bumped my 401k percentage up for next year

Homercles · Post by **Homercles** » February 22, 2006, 11:28 am

One way to increase refunds is to donate to goodwill. You don't need a receipt from goodwill if you drop off less than $250 worth of goods PER drop. So if you donated 4 times at $200 a pop, that is $800 of deductions.

Hold on. No receipt required? So what prevents me from claiming a $600 Goodwill deduction when in fact I did no donating whatsoever?

Aslanna · Post by **Aslanna** » February 22, 2006, 11:37 am

Honesty is the best policy.

Funkmasterr · Post by **Funkmasterr** » February 22, 2006, 11:39 am

Homercles wrote:
One way to increase refunds is to donate to goodwill. You don't need a receipt from goodwill if you drop off less than $250 worth of goods PER drop. So if you donated 4 times at $200 a pop, that is $800 of deductions.
Hold on. No receipt required? So what prevents me from claiming a $600 Goodwill deduction when in fact I did no donating whatsoever?

Yes, do tell. I donated about 250 dollars or so to them this year, but that 250 could turn into 6 or 800 in a reall hurry if I think I can pull it off... er.. JK , I would never do that...

Canelek · Post by **Canelek** » February 22, 2006, 11:52 am

What about deferred payments to state?Is this viable? I would still get a good federal return and do some kind of a payment plan to OR. Hmmm. That may work. I don't really want to cheat on it, especially fraudulant donations. "Working the system" is fine, but illegal means for paltry sums of money seems a bit pointless.

Tenuvil · Post by **Tenuvil** » February 22, 2006, 12:18 pm

Canno,

if you itemized you may be able to squeeze a little bit more out. If you took the standard deduction then the charitable contribution thing, or searching for any more deductions period, don't mean shit.

Basically, if you own a home, you itemize; if you rent etc, you take the SD.

As far as making payments to the state, I scanned the Oregon state income tax web page and here's what I found:

http://www.oregon.gov/DOR/PERTAX/faq-as ... ml#Anchor8

4. I owe money and need to make payment arrangements. What should I do?

File your return and pay as much as you can. As soon as possible or after you receive a billing, call the Department of Revenue in Salem at 503-378-4988 or toll-free from an Oregon prefix at 1-800-356-4222 to speak with a representative who will assist you.

5. What credit cards does the department accept?

The department accepts VISA and MasterCard credit card payments on accounts that have been assessed. After you receive your notice of assessment from the department, call to speak to a representative who will assist you. You can now pay your current-year balance due or make 2005 estimated tax payments with your Discover, MasterCard, or VISA credit card. The credit card payment is made through a service provider. For more information go to Pub 17 1/2.

Xyphir · Post by **Xyphir** » February 22, 2006, 1:00 pm

If you moved last year more than 50 miles closer to a new job you can deduct the moving expense directly from your Adjusted Gross Income (see line 26 on the 1040 - Form 3903). You mentioned that you cannot itemize, so that will rule out charitable contribution, business expenses, mortgage interest, tax prep, taxes paid and medical expenses. If you paid interest on your student loans those are deductible from your AGI as well. You can also consider putting money into an IRA if you qualify, for up to $2,000. You have until April 17, 2006 to deposit it to get the tax credit. The rules and worksheet are in the 1040 instruction manual.

Good luck.

Aabidano · Post by **Aabidano** » February 22, 2006, 2:04 pm

Tenuvil wrote:Basically, if you own a home, you itemize; if you rent etc, you take the SD.

Standard deduction was more than my itemized this year, first time since we've owned a home.