Tax Season

MrKennethTKangaroo
Posts: 12368
Joined: Sat Mar 28, 2015 3:50 pm

Tax Season

Postby MrKennethTKangaroo » Mon May 03, 2021 2:24 pm

I'm using an accountant for the first time ever and just got an estimate on how much I'll owe them for preparing my taxes...$1200-$1500...


that seems like...a **** lot. I went to an accountant because I exercised ISOs and wanted to help figure out what the full tax responsibility was (I knew I was going to owe AMT) but otherwise my tax situation is very straightforward. Single, own a house, one source of income, no dependents, no deductibles, etc.

not really sure what to do here. I feel like I got very overcharged. I guess my only recourse is to pay them and then never use them again?
Look at it this way, the base rate you are going to pay to do it yourself is $120 or so to use turbo tax for your federal + state. So your incremental cost is somewhere between $1200 and $1400 bucks really. It might only be 5 hours but stock options are complicated sht and there is a lot of different rules for different types. It sucks to pay that much for a few hours of work but you might as well get it right, take the "L" as far as the cost for them to prepare the return, and take the rest of the bucks, go bet on idiotic stocks, then complain about it in the investment thread.

willeyeam
Posts: 39523
Joined: Wed Mar 25, 2015 12:49 pm
Location: hodgepodge of nothingness

Tax Season

Postby willeyeam » Mon May 03, 2021 2:44 pm

Yes. 5 hours to research and ensure it's right is reasonable and now you have the piece of mind that you're good

mac5155
Posts: 13813
Joined: Wed Mar 25, 2015 12:47 pm

Tax Season

Postby mac5155 » Mon May 03, 2021 3:24 pm

Now someone answer my question for free, dammit

MrKennethTKangaroo
Posts: 12368
Joined: Sat Mar 28, 2015 3:50 pm

Tax Season

Postby MrKennethTKangaroo » Mon May 03, 2021 3:49 pm

I have no idea

mac5155
Posts: 13813
Joined: Wed Mar 25, 2015 12:47 pm

Tax Season

Postby mac5155 » Mon May 03, 2021 5:36 pm

Preciatecha

Beveridge
Posts: 5336
Joined: Wed Mar 25, 2015 6:17 pm
Location: 8-8-1

Tax Season

Postby Beveridge » Mon May 03, 2021 6:27 pm

It's supposed to be like the first two. No take backs.

mac5155
Posts: 13813
Joined: Wed Mar 25, 2015 12:47 pm

Tax Season

Postby mac5155 » Mon May 03, 2021 10:01 pm

It's supposed to be like the first two. No take backs.
Da real MVP... Thanks dawg.

willeyeam
Posts: 39523
Joined: Wed Mar 25, 2015 12:49 pm
Location: hodgepodge of nothingness

Tax Season

Postby willeyeam » Mon May 03, 2021 10:04 pm

Yeah mac there's no taking it back. Make it rain homie

mac5155
Posts: 13813
Joined: Wed Mar 25, 2015 12:47 pm

Tax Season

Postby mac5155 » Mon May 03, 2021 10:25 pm

Boom. Checks in the mail

MalkinIsMyHomeboy
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Joined: Wed Mar 25, 2015 1:45 pm
Location: (=^_^=)

Tax Season

Postby MalkinIsMyHomeboy » Wed May 05, 2021 1:57 pm

my tax bill is pretty high and I'm going to pay it back late. I understand that there's a late payment penalty (0.5% of the taxes owed per month) and an interest owed. The interest rate is 3% plus the current federal rate. I'm try8ing to find what the current federal rate is...the best I can find is here, where it's 0.13%: https://www.irs.gov/pub/irs-drop/rr-21-08.pdf

is that correct? so my interest calculation will have an interest rate of 3.13%?

eddy
Posts: 22280
Joined: Thu Mar 26, 2015 9:49 am
Location: Emmet's barn loft

Tax Season

Postby eddy » Tue Jun 01, 2021 2:25 pm

This child tax credit monthly payment deal coming up is just an early release of what you would normally get on next year's tax return, correct? I should opt out if I want the lump sum on tac return, right? By doing that, I'm not missing anything that would be an extra perk except that money, now?

Beveridge
Posts: 5336
Joined: Wed Mar 25, 2015 6:17 pm
Location: 8-8-1

Tax Season

Postby Beveridge » Tue Jun 01, 2021 2:30 pm

That's correct on all questions.

If you have one kid under 6, you can opt out and get the full $3,600 when you file, assuming you are under the phase out limit. Or you can take 6 monthly payments of $300 for a total of $1,800 by December and then claim the other $1,800 on your 2021 tax return. You can take this example and expand upon it based on number of children and ages.

eddy
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Location: Emmet's barn loft

Tax Season

Postby eddy » Tue Jun 01, 2021 2:31 pm

Many thanks

tifosi77
Posts: 51457
Joined: Wed Mar 25, 2015 1:07 pm
Location: Batuu

Tax Season

Postby tifosi77 » Tue Jun 01, 2021 6:37 pm

We each just got notices from the IRS that our 2018 taxes have been reviewed and we underpaid by $8,000. Fun.

eddy
Posts: 22280
Joined: Thu Mar 26, 2015 9:49 am
Location: Emmet's barn loft

Tax Season

Postby eddy » Tue Jun 01, 2021 6:38 pm

Oh, wow, that's horrible.

PFiDC
Posts: 9248
Joined: Wed Mar 25, 2015 2:23 pm

Tax Season

Postby PFiDC » Tue Jun 01, 2021 8:09 pm

We each just got notices from the IRS that our 2018 taxes have been reviewed and we underpaid by $8,000. Fun.
That happened to me last year re: my 2015 taxes. Underpaid $3000. And since my name was at the top of the return they went after me and me alone.

faftorial
Posts: 14773
Joined: Tue Nov 05, 2019 10:35 pm
Location: Lengeschder

Tax Season

Postby faftorial » Tue Jun 01, 2021 8:26 pm

We each just got notices from the IRS that our 2018 taxes have been reviewed and we underpaid by $8,000. Fun.
That happened to me last year re: my 2015 taxes. Underpaid $3000. And since my name was at the top of the return they went after me and me alone.
How does that happen? You filing was wrong?

faftorial
Posts: 14773
Joined: Tue Nov 05, 2019 10:35 pm
Location: Lengeschder

Tax Season

Postby faftorial » Tue Jun 01, 2021 8:27 pm

We each just got notices from the IRS that our 2018 taxes have been reviewed and we underpaid by $8,000. Fun.
How does that happen? Your filing was wrong?

PFiDC
Posts: 9248
Joined: Wed Mar 25, 2015 2:23 pm

Tax Season

Postby PFiDC » Tue Jun 01, 2021 8:38 pm

We each just got notices from the IRS that our 2018 taxes have been reviewed and we underpaid by $8,000. Fun.
That happened to me last year re: my 2015 taxes. Underpaid $3000. And since my name was at the top of the return they went after me and me alone.
How does that happen? You filing was wrong?
My accountant filed wrong. I didn't check it well enough but that's why I hired an accountant.

Also, ....why?

faftorial
Posts: 14773
Joined: Tue Nov 05, 2019 10:35 pm
Location: Lengeschder

Tax Season

Postby faftorial » Tue Jun 01, 2021 8:41 pm

We each just got notices from the IRS that our 2018 taxes have been reviewed and we underpaid by $8,000. Fun.
That happened to me last year re: my 2015 taxes. Underpaid $3000. And since my name was at the top of the return they went after me and me alone.
How does that happen? You filing was wrong?
My accountant filed wrong. I didn't check it well enough but that's why I hired an accountant.

Also, ....why?

Just wondering how that happens and sloppy work by the accountant explains it. That sucks.

tifosi77
Posts: 51457
Joined: Wed Mar 25, 2015 1:07 pm
Location: Batuu

Tax Season

Postby tifosi77 » Wed Jun 02, 2021 10:05 am

Not entirely sure what happened in our case. That was year I was let go from PlayStation, and so I only worked through March, then had 6 months of UI after that. Mrs Tif's income was unchanged, but my income was cut by something like 70% that year. Unless '2018' taxes means for the year 2017? I don't know. But the news is most unwelcome.

willeyeam
Posts: 39523
Joined: Wed Mar 25, 2015 12:49 pm
Location: hodgepodge of nothingness

Tax Season

Postby willeyeam » Wed Jun 02, 2021 10:09 am

do you know enough on the situation to tell if the notice is an error or if you actually owe it?

mamaemeritus
Posts: 968
Joined: Sun Jun 14, 2015 12:54 pm
Location: I just wasn't made for these times

Tax Season

Postby mamaemeritus » Wed Jun 02, 2021 10:16 am

Not entirely sure what happened in our case. That was year I was let go from PlayStation, and so I only worked through March, then had 6 months of UI after that. Mrs Tif's income was unchanged, but my income was cut by something like 70% that year. Unless '2018' taxes means for the year 2017? I don't know. But the news is most unwelcome.
Any chance you rolled over a 401k that year that wasn't marked as a rollover erroneously?

tifosi77
Posts: 51457
Joined: Wed Mar 25, 2015 1:07 pm
Location: Batuu

Tax Season

Postby tifosi77 » Wed Jun 02, 2021 10:29 am

We really just got the notices, so we haven't had a chance to delve into it yet. There was no retirement account rollover.

meow
Posts: 30412
Joined: Thu Mar 26, 2015 8:53 am
Location: I have four degrees and am a moron. Don’t let that fool you

Tax Season

Postby meow » Wed Jun 02, 2021 11:28 am

Maybe they meant to go after Guy Fieri?

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