I'd love to go over your return, and learn how someone with your demographics can deduct over $5300. Maybe you did. But it sounds VERY screwy.

 

[QUOTE=Scot,Feb 21 2008, 01:31 PM] turbotax ftw!!!!

does anyone actually use paper forms any more?

 

I already make my maximum contribution to my Roth every month. I guess it's to each his own. I get the same amount back at the end, so what's the big deal. Like I said also, I only had half a year's gross income to be taxed, so my bracket was much lower than the taxes that they were taking out. I'm sure this year it will be much much different with a full year's salary.

And I love getting kicked in the balls. Sometimes I have my fiancee step on them in heels for the thrill...

 

And stack, what is taxslayer? Free definately sounds better than $50

 

Quoted from the IRS:

"For the tax year, you may be able to claim a Hope credit of up to $1,650 for qualified education expenses paid for each eligible student."

Car registration and moving couldn't have been $3500?

Eh, in the end it's not any of my business, I just am curious as to how this makes sense.


EDIT: Looks like Chris already is asking the right questions.

 

Uh, lost interest in the meantime. I'll tell you what. I get 5% on my money market account. Give me $5k (your tax return) today, and I'll give it back a year from now. You'll get it back in the end, so no biggie, right? Meanwhile, I make $250 for nothing. Everybody wins!

No, that part makes sense, and I've been there (has nothing to do with using TurboTax, though.) However, like I said, that is different than your deductions exceeding your standard deduction. There are two issues at play here: 1. Poor tax planning by getting a $5k return, and 2. you having >$5350 in deductions to itemize. 1 is normal, but kinda dumb; 2 just seems incorrect.

 

I dunno, I started e-filing in like '99, and it was one of the free websites the IRS suggested.

Edit, I just looked, it's $10, not free. Oops.

 

Well, I have to admit I am new to this (this being my first real job with a significant income). How can I fix it in the future so I have less withheld. (Again, cost accountant, not tax accountant)?

 

Well, most of the problem is that you have only a half year's income while being taxed at a full year's rate (IE, you make $50k/yr, you're going to have to pay $7k in taxes; but since you only made $25k, you still were taxed $3500 which is too high for making $25k.) Most of the problem will take care of itself next year. Just make sure your withholdings make sense with your position in life, that you are single/married/whatever, and you take enough deductions (1 for yourself, etc.) You probably have "0" as your deduction; I have 2 for Fed, 1 for State I think.

 

I still use the paper form.. well, I download the PDF, fill it out, print it, and attach the stickers. I went through the turbo tax process on a friends computer, and honestly, it took me about half the time to just fill in the damned PDF for myself and seal up the envelope. Those stupid e-file sites take just as long. They make you fill in all the boxes.