The "Tax season confuses me" thread.

[lilboo]

Hi
I have a few tax related questions and I hope we can get some helpful people in here. We usually have some knowledgeable people around here, so I'm not too worried. But I also want this to be where people can come here & ask questions and we can all help each other

I'm just trying to get the most out of my refund (as most people should) so I'm gonna share some of my business.
2007 was a very lousy year for me, financially.
Worked 2 jobs and was on unemployment overall.
Lived with parents until November, as of November 1 I have my own apartment.

That's pretty much it. I don't own my house, nor own a car. Is there anything people whom rent get some kind of tax break? Reductions? I don't know as this is my first time on my own.

What would be the best software to use in my situation? I'd also HAVE to file for state tax too, correct? If so here's a major question. I live in NJ. However, both of my jobs where in PA. I also collected unemployment from PA.. so, would I still file NJ state tax.. or.. PA?

SPEAKING of unemployment, I chose the option to withhold tax from my checks. As a result, I got a 1099G today in the mail. Is this the same a W2?? How would I go about filing with this?

I think that's all. Nothing really deep. Thanks

 

[bigdaddy]

You have to pay taxes for both states. I friends mother had an office in one state and work sometime at home in another and had to do taxes for both states.

I however have no clue how that works, just hire someone to do them.

 

[Zenithian Legend]

Oh what aren't you confused about

Jes playin'

 

[Zenithian Legend]

Oh what aren't you confused about

Jes playin'

 

[The Gifuto]

I think that any of the tax software programs will be able to assist you. I perfer TurboTax, but that's just me. Depending on your total income for the year (less than $54K), you may be able to e-file for free (federal taxes) through the IRS:

http://www.irs.gov/efile/article/0,,id=118986,00.html

There are no federal tax breaks for renting. I'm not sure if NJ offers any rebates (I suspect no).

Yes, a 1099G is handled similar to a W-2. The tax software will walk you through it.

I'm not sure of those 2 specific states, but I think you would need to file in both. However, neighboring states do often have reciprocal agreements (income earned in one state is treated as if you earned it in your home state), which could eliminate the need to file one of those. I'd ask someone in the area or search around on either of the states' Department of Revenue websites to find out.

 

[Sofa King Kool]

I'm a bit confused too. On my W2, I checked the little box stating I want them to take more out of my paycheck (so later on I could get a big chunk of money back and be all happy). Yet, somehow, I owe $150 ing dollars, and I still got money taken out of my paychecks. Somewhere along the line, someone ed something up...

 

[Synergy]

I just used Turbo Tax online to file my returns for the 3rd year in a row. It's great, easy software that will walk you through all the options for deductions to help maximize your return. It really makes it simple. $30 for the 2nd tier service (for people who have special deductions) and you can e-file free and have your money direct deposited into your bank account in like a week.

Highly recommended.

 

[Soodmeg]

All I know is I am going to get done in the buttocks.

As a freelancer I have no taxes taken out ever. I get to write a ton of stuff off but I still get raped.

 

[Pookymeister]

[quote name='Soodmeg']All I know is I am going to get done in the buttocks.

As a freelancer I have no taxes taken out ever. I get to write a ton of stuff off but I still get raped.[/quote]

And you pay those quarterly estimated taxes , right?

 

[Soodmeg]

[quote name='Pookymeister']And you pay those quarterly estimated taxes , right? [/quote]

Yes....uhhh....your checks in the mail?



I wanted to but I was in so much debt putting myself through school I was trying to pay as much off as I could as soon as I started making actual money.

Basically I am ed 3 ways to sunday.

I had to use all the money I had earned to cover all the credit card debt I worked up when I first got out of school and couldnt land a gig if my life depended on it.....which it did.

Now that I am actually making money and get rid of most of my debt I really cant afford taxes.

Bah. It will work out at some point I guess.

 

[wubb]

I agree with pretty much everything The Gifuto said. If you lived in PA until you moved in Nov then I believe you will pay the majority of your state tax to PA. But a decent tax program should walk you through that as well I think.

My general advice for most people that have a simple tax situation - you get a W2/whatever form that shows your income and you maybe have a couple simple deductions for student loans, mortgage and donations then Turbotax et al should be all you need to do your taxes pretty easily.

Absolute bottom line is that if you qualify to do a 1040EZ then there is no way you should pay somebody to do your taxes. That's madness.

If you have more stuff going on, like self employed, income from rental properties, complicated stuff like wanting to deal with income from selling a rental/investment property, etc etc. Then yeah an accountant might be good.

 

[snakelda]

[quote name='Sofa King Kool']I'm a bit confused too. On my W2, I checked the little box stating I want them to take more out of my paycheck (so later on I could get a big chunk of money back and be all happy). Yet, somehow, I owe $150 ing dollars, and I still got money taken out of my paychecks. Somewhere along the line, someone ed something up...[/quote]That's exactly what I put and I'm kind of scared that this might happen to me...how much did you make in '07?