Tax Season!

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Re: Tax Season!

Postby Kraftster on Tue Jan 17, 2012 2:34 pm

mac5155 wrote:Are there any other notable deductions someone of my stature should look into?

I don't think I can deduct tuition if it was paid for by a Stafford loan and/or reimbursed through my employer, can I?


I believe there's a credit for tuition regarding the former.
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Re: Tax Season!

Postby mac5155 on Tue Jan 17, 2012 2:38 pm

Kraftster wrote:
mac5155 wrote:Are there any other notable deductions someone of my stature should look into?

I don't think I can deduct tuition if it was paid for by a Stafford loan and/or reimbursed through my employer, can I?


I believe there's a credit for tuition regarding the former.


There is. Here's how I do it:

get tuition bill
pay tuition with stafford loan
get refunded from employer
pay off stafford loan

I'm not sure if it qualifies that way. I can exclude $5250 of the reimbursement from my AGI, I do know that.
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Re: Tax Season!

Postby eddysnake on Tue Jan 17, 2012 2:38 pm

3rd kid added this year, I'm pretty excited to see this return! Should be able to just about knock off my student loans and be debt free (minus mortgage)
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Re: Tax Season!

Postby PensFanInDC on Tue Jan 17, 2012 2:39 pm

WABBIT SEASON!
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Re: Tax Season!

Postby mac5155 on Tue Jan 17, 2012 2:42 pm

Paid with borrowed funds. You can claim a tuition and fees deduction for qualified education expenses paid with the proceeds of a loan. Use the expenses to figure the deduction for the year in which the expenses are paid, not the year in which the loan is repaid. Treat loan payments sent directly to the educational institution as paid on the date the institution credits the student's account.


But then since it is reimbursed through the employer can I still deduct it?
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Re: Tax Season!

Postby Kraftster on Tue Jan 17, 2012 2:44 pm

mac5155 wrote:
Paid with borrowed funds. You can claim a tuition and fees deduction for qualified education expenses paid with the proceeds of a loan. Use the expenses to figure the deduction for the year in which the expenses are paid, not the year in which the loan is repaid. Treat loan payments sent directly to the educational institution as paid on the date the institution credits the student's account.


But then since it is reimbursed through the employer can I still deduct it?


I think such income is just deductible in its own right (which would be the net result of taking the above deduction but having to report the money from your employer as income anyway).
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Re: Tax Season!

Postby mac5155 on Tue Jan 17, 2012 2:49 pm

Kraftster wrote:
mac5155 wrote:
Paid with borrowed funds. You can claim a tuition and fees deduction for qualified education expenses paid with the proceeds of a loan. Use the expenses to figure the deduction for the year in which the expenses are paid, not the year in which the loan is repaid. Treat loan payments sent directly to the educational institution as paid on the date the institution credits the student's account.


But then since it is reimbursed through the employer can I still deduct it?


I think such income is just deductible in its own right (which would be the net result of taking the above deduction but having to report the money from your employer as income anyway).


It appears if the income is reported by my employer on my W2 then I can deduct the tuition paid.

It will probably end up being a wash either way though. which is probably what you mean
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Re: Tax Season!

Postby IrishEyes on Tue Jan 17, 2012 2:49 pm

I don't own anything, so I use Turbo Tax. And I'm terrible with money, so I always get an additional dollar amount taken out of my paychecks so I get some back. If I don't know I'm missing it, it's like a nice surprise at the beginning of the new year.
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Re: Tax Season!

Postby mac5155 on Tue Jan 17, 2012 2:51 pm

IrishEyes wrote:I don't own anything, so I use Turbo Tax. And I'm terrible with money, so I always get an additional dollar amount taken out of my paychecks so I get some back. If I don't know I'm missing it, it's like a nice surprise at the beginning of the new year.


My parents are this way too.

Myself, I'd rather put the money in a savings account and make interest off of it instead of letting the IRS make interest off it.
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Re: Tax Season!

Postby Kraftster on Tue Jan 17, 2012 2:52 pm

Our withholdings have been all effed up since I became employed. My wife did not adjust hers after I started working, and I think I did my W4 wrong when I started working. We owed a couple years and then last year with buying a house we got a refund. This year we should get an even bigger refund with adding a child to the equation and a full year of mortgage interest payments. After this year things should stay relatively consistent and I hope to finally get my withholdings in order so that I am as close to $0 as I can be.
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Re: Tax Season!

Postby Loaf31 on Tue Jan 17, 2012 3:01 pm

What is the child deduction? My son is only 18 months old and i cannot remember what it was last year.
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Re: Tax Season!

Postby mac5155 on Tue Jan 17, 2012 3:01 pm

Loaf31 wrote:What is the child deduction? My son is only 18 months old and i cannot remember what it was last year.


$3600 per child I think?
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Re: Tax Season!

Postby KennyTheKangaroo on Tue Jan 17, 2012 3:02 pm

mac do you pay 4 your own books? or is that reimbursed too?
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Re: Tax Season!

Postby JS© on Tue Jan 17, 2012 3:04 pm

Point Breeze Penguins wrote:For tax purposes I am considered a "independent contractor" and receive a 1099 instead of a W-2. I could pay my taxes quarterly but choose to pay at the end because between the Child Tax Credit and Earned Income Credit I end up with a refund.


no kid credit or EIC for me. :(

I know I'm gonna owe a ton because of being contracted for 6 months, guessing at least $7k. Thankfully I stashed away enough money and then some just in case.

I'm hoping that the 6 months of paying into the system offsets the damage a little.

It probably won't.
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Re: Tax Season!

Postby mac5155 on Tue Jan 17, 2012 3:04 pm

KennyTheKangaroo wrote:mac do you pay 4 your own books? or is that reimbursed too?


I used loan money one semester and the other semester I used a credit card on half.com. Do I need to provide receipts and itemize for that or can it just be lumped into education costs?
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Re: Tax Season!

Postby JS© on Tue Jan 17, 2012 3:05 pm

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Re: Tax Season!

Postby JS© on Tue Jan 17, 2012 3:06 pm

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Re: Tax Season!

Postby Loaf31 on Tue Jan 17, 2012 3:09 pm

Didn't they get rid of the "working" tax credit? Cannot remember what it is called..... I think it was worth $1200
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Re: Tax Season!

Postby Kraftster on Tue Jan 17, 2012 3:10 pm

Oh yeah. I have to learn about this daycare cost tax credit too. Anyone an expert on that?
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Re: Tax Season!

Postby Kraftster on Tue Jan 17, 2012 3:15 pm

Loaf31 wrote:Didn't they get rid of the "working" tax credit? Cannot remember what it is called..... I think it was worth $1200


Make Work Pay or whatever. I think its gone, thankfully. It did far more harm than good for me.
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Re: Tax Season!

Postby mac5155 on Tue Jan 17, 2012 3:17 pm

Loaf31 wrote:Didn't they get rid of the "working" tax credit? Cannot remember what it is called..... I think it was worth $1200


The American Opportunity credit?
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Re: Tax Season!

Postby pensfan1989 on Tue Jan 17, 2012 3:18 pm

Nine Nine Nine
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Re: Tax Season!

Postby Kraftster on Tue Jan 17, 2012 3:20 pm

Kraftster wrote:Oh yeah. I have to learn about this daycare cost tax credit too. Anyone an expert on that?


Looks like 20% of expenses? Not bad. In a full year that is like a $2800 credit, which is basically a $10k deduction. Niiice.
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Re: Tax Season!

Postby viva la ben on Tue Jan 17, 2012 3:35 pm

Pitt87 wrote:
viva la ben wrote:I have another child to claim this year too, booya!


Have a question about that... and if you are uncomfortable answering or would like to PM me, please do, but how many allowances do you take? I have a new baby at home and my wife is likely staying home, and my calculation is coming up with 5. Seems like a lot. Thoughts? Experience?


There are a number of factors

do you file jointly with your wife?
did she receive income in 2011?
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Re: Tax Season!

Postby mac5155 on Tue Jan 17, 2012 3:36 pm

Doesn't look like I can claim the Lifetime Learning Credit cause my employer reimburses me but I can deduct the tuition.
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