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Thread: Tax time

  1. #1
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    Tax time

    So now that the standard deduction for married filing jointly has gone up to $24k, i ended up taking the standard deduction last year even with deductions for RE taxes, mortgage interest, etc. Nearly all of my investment goes into my 401k so no investment interest/dividends of note to write off, and not much else that would raise my itemized deductions above the standard. I'm wondering if i even need to buy tax software anymore.

    I haven't heard a lot of discussion about this anywhere and wondering if I'm missing something. It must be affecting tax accounting businesses .unless most people don't realize it. Somebody at work was bragging how she saved 12% on turbo tax for filing early. She is single with no deductions. I didn't want to bum her out and tell her she could do her taxes in 15 minutes by hand.

  2. #2
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    Last year medical deducts kept us in the Schedule A game -barely
    But we also file schedule C income on three different businesses, so tax software is still necessary
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  3. #3
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    I suspect I'm gonna have to pay through the nose again this year.

    NTTAWWT.

  4. #4
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    Small biz owner

    Drumpf gave me a happy ending last year. Expect the same this year.

    Unfuckingbelieveable

    If you are independently employed and can create the right biz for 2020 you can win bigly too

    Accountants lawyers and famous folks can’t do it. But otherwise see what you can do. I didn’t change anything but my 2018 tax bill was schweet
    ďLife has become immeasurably better since I have been forced to stop taking it seriously.Ē
    Hunter S. Thompson

  5. #5
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    I read that only around 13% of filers are expected to itemize this year. Wife's employer is a 1099-abusing ass clown so I still needed software last year to deal with the fact that she's "self" employed. Has to pay self- employment tax but has no (legitimate) business expenses to deduct.

  6. #6
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    Quote Originally Posted by Core Shot View Post
    Small biz owner

    Drumpf gave me a happy ending last year. Expect the same this year.

    Unfuckingbelieveable

    If you are independently employed and can create the right biz for 2020 you can win bigly too

    Accountants lawyers and famous folks can’t do it. But otherwise see what you can do. I didn’t change anything but my 2018 tax bill was schweet
    need deets to believe any of that

  7. #7
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    Quote Originally Posted by k2skier112 View Post
    need deets to believe any of that
    Not posting my returns

    But it’s legit. Google it.

    If you are a professional, accountant, lawyer, doctor no go
    If your famous, no go

    S Corp. 20% reduction in net income, as long as you aren’t too big
    ďLife has become immeasurably better since I have been forced to stop taking it seriously.Ē
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  8. #8
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    Same boat
    And yes unfuckingbelievable

    I run a c Corp and get treated like an employee get paychecks just like my employees

    Went from paying over 20k in taxes to not paying dick thought I was doing something illegal

    And I couldn't file my own taxes if I tried pay my money team to do it usually at least an inch of paper work forms and assorted govt bullshit

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  9. #9
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    Quote Originally Posted by Dantheman View Post
    I read that only around 13% of filers are expected to itemize this year. Wife's employer is a 1099-abusing ass clown so I still needed software last year to deal with the fact that she's "self" employed. Has to pay self- employment tax but has no (legitimate) business expenses to deduct.
    Vibes

    Sorry to hear that

    Companies/ businesses that 1099 their "employees" piss the hell out of me

    Dont even get me started.

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  10. #10
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    I get pissed about the needless complexity associated with small business ownership every year, but there are a lot of advantages to being on 1099's: an employer can dictate schedule, how and where, but if a customer/client tries to do that they risk having to give full benefits and overtime pay retroactively--so powder days. Working from a home office creates legitimate deductions, and mileage between places of work is deductible, as are health insurance premiums and SEP IRAs. As of 2018 it's better to pay self employment tax and take the 20% QBI deduction for lots of (most?) people than if they were on a W2.

    If you want to feel sorry for poor 1099ers, though, tax season is the right time. At least until they repeal the "Trump" changes.

  11. #11
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    Quote Originally Posted by Core Shot View Post
    Not posting my returns

    But it’s legit. Google it.

    If you are a professional, accountant, lawyer, doctor no go
    If your famous, no go

    S Corp. 20% reduction in net income, as long as you aren’t too big
    Sole proprietor usually paying 10-12k in fed and state, OR taxes, helped me a little the first year. But I sold my property and building was last year, so now I get fuct like the average Joe. Not many are getting any benefit from this "trickle down" tax break. Were screwed long term, massive deficit growing to cover it

  12. #12
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    Quote Originally Posted by Core Shot View Post
    Not posting my returns

    But itís legit. Google it.

    If you are a professional, accountant, lawyer, doctor no go
    If your famous, no go

    S Corp. 20% reduction in net income, as long as you arenít too big
    Accountants, Doctors, Dentists and Lawyers can tax advantage too, just can't make more than 321k (married). then it gets partially phased out. fully phased out at 421k taxable income

    Based on most postings here, I assume most of the dentists are way above 421k taxable income

  13. #13
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    Quote Originally Posted by fastfred View Post
    Vibes

    Sorry to hear that

    Companies/ businesses that 1099 their "employees" piss the hell out of me

    Dont even get me started.
    It's just the tip of the iceberg with these clowns. They paid all their people through Venmo for almost 2 years, because apparently having ADP do all that shit for you is too difficult. Didn't get her 1099 last year until almost March (expecting the same this year). It's a franchise and they do shit all the time that violates their franchise agreement. Sooo tempting to submit a Form 3949-A along with my taxes.

    Quote Originally Posted by jono View Post
    I get pissed about the needless complexity associated with small business ownership every year, but there are a lot of advantages to being on 1099's: an employer can dictate schedule, how and where, but if a customer/client tries to do that they risk having to give full benefits and overtime pay retroactively--so powder days. Working from a home office creates legitimate deductions, and mileage between places of work is deductible, as are health insurance premiums and SEP IRAs. As of 2018 it's better to pay self employment tax and take the 20% QBI deduction for lots of (most?) people than if they were on a W2.

    If you want to feel sorry for poor 1099ers, though, tax season is the right time. At least until they repeal the "Trump" changes.
    Here employer dictates how/when/where she works. She's a trainer/manager at a boutique fitness studio, there is no home office or travel between places of work. QBI deduction requires income that is derived from sole proprietorship
s, partnerships, s-corps or LLCs. I supposed I could set up Altachic Training, LLC, but I assume she'd then have to start sending them invoices and the whole thing starts to get more complicated than she's willing to deal with.

    I also assume that for health insurance premiums to be deductible they have to be paid through her LLC or whatever, which they're not. The possibility of using a SEP IRA to stash income and maintain my ACA subsidies is about the only upside, but not really necessary since I have a 401k and we both have Trad IRAs. Half of self-employment tax is an above-the-line deduction for ACA MAGI, so there's that I guess.

    Quote Originally Posted by k2skier112 View Post
    Not many are getting any benefit from this "trickle down" tax break. Were screwed long term, massive deficit growing to cover it
    Wait, there's a deficit?

  14. #14
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    I did my taxes recently and the standard deduction was better for me. I used turbo tax in the past and checked with them again. The software tried defaulting me to the Deluxe version which costs money. I looked into it and am able to use their software with the standard deduction and could do both my federal and state taxes for no cost so I imagine the standard deduction is costing tax prep services a lot of money.


  15. #15
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    Quote Originally Posted by k2skier112 View Post
    Sole proprietor usually paying 10-12k in fed and state, OR taxes, helped me a little the first year. But I sold my property and building was last year, so now I get fuct like the average Joe. Not many are getting any benefit from this "trickle down" tax break. Were screwed long term, massive deficit growing to cover it
    I'm no CPA, but I hang out with them... You should be an s-corp if you're making more than 40k per year net income off your business. You'll save bigly on taxes, regardless of Trumpian tax laws.

  16. #16
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    I used a CPA when back when I had depreciation schedules, K-1 LLC income, carried losses, paid CG tax every couple years or so, etc. I currently DIY file a schedule C and pay SE tax, but I do it all on paper (well, actually, PDF fill-in). Takes me less than an hour each year.

    The $24K (now $24,400) married couple standard deduction is a boon for older couples with paid-off residences, but threatens some charities and results in some weird sets of incentives. A CPA with whom I share a client tells me that some LDS tithers are giving 20% every other year, itemizing the years they double tithe and taking the standard deduction for non-tithing years.
    Last edited by GeezerSteve; 01-31-2020 at 11:59 AM.

  17. #17
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    Hey Prince guy, later on (when the rain freezes?) I'd like to compare notes on that S-corp and similar topics if you're up for a meeting.

    Quote Originally Posted by Dantheman View Post
    I also assume that for health insurance premiums to be deductible they have to be paid through her LLC or whatever, which they're not.
    I don't think that's the case--in fact, if the family is on one plan it might be deductible even if it's in your name.

    Obviously this doesn't mean the legwork is necessarily worth it, as you clearly know. But it might be worth a quick back of the napkin calc to see if it's potentially worth talking to a CPA since the results changed quite a bit with the two recent additions of "above the line" deductions for insurance and QBI. A sole proprietorship ought to include pretty much anyone that gets a 1099 for services--last I knew the IRS didn't require a name to be registered or anything because a sole proprietorship is just a "disregarded entity" to them. (FTR, also not a CPA, but hanging out with one a lot.)

  18. #18
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    Quote Originally Posted by jono View Post
    I don't think that's the case--in fact, if the family is on one plan it might be deductible even if it's in your name.
    Yes, family plan in my name. I look into it, thanks.

    Quote Originally Posted by jono View Post
    Obviously this doesn't mean the legwork is necessarily worth it, as you clearly know. But it might be worth a quick back of the napkin calc to see if it's potentially worth talking to a CPA since the results changed quite a bit with the two recent additions of "above the line" deductions for insurance and QBI. A sole proprietorship ought to include pretty much anyone that gets a 1099 for services--last I knew the IRS didn't require a name to be registered or anything because a sole proprietorship is just a "disregarded entity" to them. (FTR, also not a CPA, but hanging out with one a lot.)
    She only made about $15k last year so there's not that much juice to squeeze in the first place. I do know a guy though, can't hurt to ask.

  19. #19
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    Jono- I have attempted to schedule a few consultations with you but it seems as my meeting invitations are being missed. I had a great meeting this week with my physician and a local tgr dentist, you should have been there.

  20. #20
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    anyone have experience with freetaxusa.com?

    Been using turbotax for years, but it makes me pay for the expensive "premier" version because I have a tiny amount of investment income. And every year the price goes up. freetaxusa.com purports to handle everything turbotax does, and state/federal returns would cost something like $80+ less.
    "fuck off you asshat gaper shit for brains fucktard wanker." - Jesus Christ
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  21. #21
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    Quote Originally Posted by Danno View Post
    anyone have experience with freetaxusa.com?

    Been using turbotax for years, but it makes me pay for the expensive "premier" version because I have a tiny amount of investment income. And every year the price goes up. freetaxusa.com purports to handle everything turbotax does, and state/federal returns would cost something like $80+ less.
    No experience with that one, but Costco often has tax software on sale about this time, including the "premier"/advanced versions that will handle investment income.

    This year, I picked up H&R Block's software on an Amazon sale. Slickdeals shows that Newegg has it on sale now too - with a warning to be careful about which version you get:
    https://slickdeals.net/f/13831856-h-...src=SiteSearch
    Quote Originally Posted by powder11 View Post
    if you have to resort to taking advice from the nitwits on this forum, then you're doomed.

  22. #22
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    I think next year I will try a free option. Wanted it just done. For like $100 it's worth it. Will check next year though.

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  23. #23
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    Quote Originally Posted by El Chupacabra View Post
    No experience with that one, but Costco often has tax software on sale about this time, including the "premier"/advanced versions that will handle investment income.

    This year, I picked up H&R Block's software on an Amazon sale. Slickdeals shows that Newegg has it on sale now too - with a warning to be careful about which version you get:
    https://slickdeals.net/f/13831856-h-...src=SiteSearch
    Yeah, but I don't want software. Our household only has one computer, and it's mostly commandeered by my wife, and it's slow as shit. I'd rather just use my work laptop (when not at work) to do it, but can't install software on it.

    Quote Originally Posted by Skidog View Post
    I think next year I will try a free option. Wanted it just done. For like $100 it's worth it. Will check next year though.

    Sent from my Pixel 2 using TGR Forums mobile app
    It's not truly free, as you pay for the state return, but it's like $12 for that. Versus $55 (with a discount) for federal and $40 for state by TurboTax.
    "fuck off you asshat gaper shit for brains fucktard wanker." - Jesus Christ
    "She was tossing her bean salad with the vigor of a Drunken Pop princess so I walked out of the corner and said.... "need a hand?"" - Odin

  24. #24
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    I've been super happy with taxhawk.com for The last 5 years. it's been free for me but if you have a state return I think they charge less than $10 to file. It's so nice to have everything Auto filled every year and I just update it.

  25. #25
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    Quote Originally Posted by The Artist Formerly Known as Leavenworth Skier View Post
    I'm no CPA, but I hang out with them... You should be an s-corp if you're making more than 40k per year net income off your business. You'll save bigly on taxes, regardless of Trumpian tax laws.
    I was borderline for it to pencil out. Biggest advantage was to be able to "cook the books" and charge the business rent at a rate the Corp showed no profit and paid the min tax, $100 in OR. The cost of setting up the Corp and tax preparation stopped me from it, plus I wouldn't have contributed to SS

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