Tax Q's Thread

[rass]

We refinanced our mortgage last year, and while I guess I can grasp why in all of the transferring from one holder to another or whatever the total interest paid might be significantly different than 2020, based on the forms from both companies our property tax disbursements were over $2K less than 2020. For sure taxes didn't go down. Any reason to be worried there (other than owing a couple of extra bucks on our state taxes)? I guess I can try getting a real person at the current company and ask them.

[mister d]

I could guess at 5 or 6 things it could be other than a missed payment mid-refinance, but I'd want to be sure.

[rass]

Huh. This all went down March 2021 so I'd like to assume someone would have hunted us down by now for that. Great.

What was paid out through March seems like the expected amount, back of the napkin prorating for a year, and the amount from the new company seems too low.

[The Sybian]

I could guess at 5 or 6 things it could be other than a missed payment mid-refinance, but I'd want to be sure.

It's an internet message board, just guess. It's not like we are talking to real people here.

I can't imagine the taxman didn't get his proper cut with the prorating from the old and new loans. I'd double check the total taxes paid on both loans and see if it adds up to your assessed amount for 2021. It is possible your 2021 taxes are lower than 2020 if they reassessed the town and you had new businesses move in or a lot of new construction, but even still, annual increases would likely wipe out the benefits of increasing the tax base.

[Steve of phpBB]

I could guess at 5 or 6 things it could be other than a missed payment mid-refinance, but I'd want to be sure.

It's an internet message board, just guess. It's not like we are talking to real people here.

I can't imagine the taxman didn't get his proper cut with the prorating from the old and new loans. I'd double check the total taxes paid on both loans and see if it adds up to your assessed amount for 2021. It is possible your 2021 taxes are lower than 2020 if they reassessed the town and you had new businesses move in or a lot of new construction, but even still, annual increases would likely wipe out the benefits of increasing the tax base.

A lot of places (at least out here) have property tax information available online, since it's a matter of public record. You may be able to check that to see if any balance is owed on your property taxes for 2021.

[rass]

Oh yeah...

The property assessment postcard we got included a "net property taxes billed for 2021" line and that differs by about $2300 from the mortgage docs (and is about $100 more than what we included on our taxes for 2020). I'm sure getting support at the mortgage company will be an easy and efficient process that provides near-instant clarification and satisfaction.

[mister d]

I think I'd go to the town, not the mortgage company.

[mister d]

You're good. I checked.

[rass]

Yeah, township shows we are paid up. That's nice, at least.

[sancarlos]

Yeah, township shows we are paid up. That's nice, at least.

Also check your refinance documents and make sure you didn't pay some property tax or prepaid interest as part of the closing costs. (Although you probably received a tax statement for any interest paid in the close.)

[A_B]

Due to some 1099 independent work last year Tax time was not fun this year. Hey everyone, remember to set aside not just income taxes but also Social Security!

[HaulCitgo]

Mortgage companies do not always handle the escrow/tax stuff correctly. My mortgages company fucked it up. Ended up with a tax lien on my rental house that was purchased by some third party vulture with the intent to foreclose after the 1 year redemption period. Anyway found out about it when wife got a new job and failed the credit test. There is a federal law called RESPA that does not allow this and many other escrow shenanigans and provides for attorneys fees and penalties. These can be good cases. Pm me if you or someone in that spot. Need to have lost money behind it. FWIW it happened because I withdrew my homestead exemption when I rented the house and it threw off everything such that the bank didnt pay enough. The renters didnt bother to tell me about the notices. Of course, I should have changed the address with the county.

[Johnnie]

What's the no kidding actual free way to do taxes?

This year I should be ok by using VITA on base like I do every year. But, for next year, I think my wife and I might make too much with our combined AGI once I start working again.

We'll have a few W2s and some dividend stuff. I don't need to give Turbo Tax or Taxslayer money to do paperwork and math.

[Steve of phpBB]

What's the no kidding actual free way to do taxes?

This year I should be ok by using VITA on base like I do every year. But, for next year, I think my wife and I might make too much with our combined AGI once I start working again.

We'll have a few W2s and some dividend stuff. I don't need to give Turbo Tax or Taxslayer money to do paperwork and math.

I don't know what is good for free, but I've been using Express 1040 for a long time. It only costs $15 - or technically, federal filing is free, but a state filing will cost you $15.

(I think it was originally recommended by someone on here.)

The IRS also has a free file page on their website. https://www.irs.gov/filing/free-file-do ... s-for-free

[degenerasian]

What's the no kidding actual free way to do taxes?

This year I should be ok by using VITA on base like I do every year. But, for next year, I think my wife and I might make too much with our combined AGI once I start working again.

We'll have a few W2s and some dividend stuff. I don't need to give Turbo Tax or Taxslayer money to do paperwork and math.

You should get a bunch of people and get turbotax, it's totally worth it. You can do I think 20 returns.

[mister d]

Only time I’ve ever done it free was early 20s where I’d print out the forms in the library and then mail them in.

[Johnnie]

Only time I’ve ever done it free was early 20s where I’d print out the forms in the library and then mail them in.

Reminds me of the first time I did my taxes. Dad got the forms from the post office and I did them myself at 16.

I was getting like $300 back when everyone else was getting like $800-$900. That was the day I learned about withholdings and how my claiming of "1" meant less money back compared to a "0." I was bummed.

I don't know what is good for free, but I've been using Express 1040 for a long time. It only costs $15 - or technically, federal filing is free, but a state filing will cost you $15.

(I think it was originally recommended by someone on here.)

The IRS also has a free file page on their website. https://www.irs.gov/filing/free-file-do ... s-for-free

Ooh. Gunna look into this. Thank you.

You should get a bunch of people and get turbotax, it's totally worth it. You can do I think 20 returns.

Like I should charge people to do their taxes and then do mine for "free" because I've made money?

[sancarlos]

What's the no kidding actual free way to do taxes?

If you use the short form (don’t itemize deductions), you can do it for free on TurboTax. I did my daughters taxes that way last year. Personally, I’ve used TurboTax for 25 years.

[Johnnie]

What's the no kidding actual free way to do taxes?

If you use the short form (don’t itemize deductions), you can do it for free on TurboTax. I did my daughters taxes that way last year. Personally, I’ve used TurboTax for 25 years.

Thank you. That's reassuring.

We don't itemize, so this may be the best bet.

Is there an AGI limit? And am I just able to upload a digital copy of W2s and dividends when doing it?

[sancarlos]

Is there an AGI limit?

I don’t think so.

And am I just able to upload a digital copy of W2s and dividends when doing it?

I believe that’s correct.

(Going from memory from last year.)

[The Sybian]

Only time I’ve ever done it free was early 20s where I’d print out the forms in the library and then mail them in.

Wow, I forgot I used to do my taxes by hand back in the day. I've been using Turbo Tax for the last 3 or 4 years. We used to go to HRBlock, and I hate it. It's easier to do it myself. I think I used the HRBlock software one year, it was similar to TurboTax, but TT is easier and much more thorough. I like playing around with a lot of different factors to see if it will make a difference. Like before calculating my medical expenses, I'll enter in double what I think my total medical expenses were, and when the program tells me it won't affect my taxes, I don't bother collecting receipts. TT is kind of expensive, but they make it so easy, it's worth it.

[mister d]

I don’t like HR Block but all my history is there and it’s easier to not move for a once per year task.

[Reaper]

Hasan Minhaj's Patriot Act tax episode went pretty in-depth into how to get to the actual free part of these online companies, including links and how to do it. I watched this a couple years ago, but I would imagine the info is still correct.

[Johnnie]

Nope. Gotta go to an archived website now:

http://web.archive.org/web/202101301803 ... ksass.com/

[A_B]

I don’t like HR Block but all my history is there and it’s easier to not move for a once per year task.

Not saying it's still true, but about 10-12 years ago I thought something looked off on HR Taxcut. Just didn't jive with previous years which were similar. I went into Turbotax and reentered all the information exactly the same and ended up with about $1,100 more. that was enough to make me switch after I triple checked the numbers. I do think that year there ended up being several things they had to do with amended returns because it happened to a few people. I was just lucky enough to catch it. So I use TurboTax now, though every few years (last year was one) I do the exercise again. Numbers in TaxSlayer matched exatcly, so I felt pretty good about that.

[A_B]

[EdRomero]

A few years ago, I went through the entire process of a free tax file with H&R Block and when I was done, they told me I was too wealthy for a free return and tried to get me to pay a fee, so I googled one with a higher threshold and went with Taxslayer. They've been ok for the last two years, so I went with them again, did my taxes and when it was time for a return, they said I was too wealthy again (they dropped the AGI almost 50%). So I went to the IRS and found a company I never heard of for which I qualify for E-file. So I either completed my taxes or had my identity stolen. Maybe someday I'll learn to check this before going through the work, but they don't really advertise that they lowered the max AGI. I have a w2, bank interest and I contribute to an IRA..that's it; it shouldn't be this much of a pain in the ass.

[The Sybian]

A few years ago, I went through the entire process of a free tax file with H&R Block and when I was done, they told me I was too wealthy for a free return and tried to get me to pay a fee, so I googled one with a higher threshold and went with Taxslayer. They've been ok for the last two years, so I went with them again, did my taxes and when it was time for a return, they said I was too wealthy again (they dropped the AGI almost 50%). So I went to the IRS and found a company I never heard of for which I qualify for E-file. So I either completed my taxes or had my identity stolen. Maybe someday I'll learn to check this before going through the work, but they don't really advertise that they lowered the max AGI. I have a w2, bank interest and I contribute to an IRA..that's it; it shouldn't be this much of a pain in the ass.

I've been using TurboTax for the past 4 or 5 years and I'm happy with it. I don't know if they have a free version, though.

[sancarlos]

TurboTax has a free version. My daughter filed her taxes just now. And it was free. I was a bit surprised because she did earn reasonably good money (but was between jobs for awhile, so maybe that’s why it was free.)

[govmentchedda]

Some states have access to the new IRS free filing system. I know because one of my legislators has been complaining about it. Says it will confuse people who have to pay state income tax. Of course, Florida has no state income tax, but when H&R Block is a donor, you do what they ask.