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Internal Revenue Service Informative - FYI - What to expect - Tax Year 2007
Tax Year 2007
I've processed about 25 returns so far and received the following message this morning:
A valid return has been received for this taxpayer, and the return is currently being processed. As a general rule, it typically takes from 24-48 hours to receive feedback on the status of a particular return.
Due to Recent Tax Law changes, the IRS will not be able to process your tax return (paper or efile) until February 11, 2008. This is due to the fact that you are claiming one of the following Alternative Minimum Tax (AMT) credits:
Form 5695 - Residential Energy Credits
Form 8396 - Mortgage Interest Credit
Form 8863 - Education Credits
Once the IRS begins processing these returns, we will submit your return automatically. Please do not submit your electronically-filed return to us a second time.
Soooooo, if you're filing anytime BEFORE the 11th of February AND you claim any of the above, your return will be held until the 11th. It caught me by surprise as I just received 7 acceptance emails and 13 emails with this message. Nice of my tax program to tell me before I filed for them. Thanks TaxAct Professional.
A valid return has been received for this taxpayer, and the return is currently being processed. As a general rule, it typically takes from 24-48 hours to receive feedback on the status of a particular return.
Due to Recent Tax Law changes, the IRS will not be able to process your tax return (paper or efile) until February 11, 2008. This is due to the fact that you are claiming one of the following Alternative Minimum Tax (AMT) credits:
Form 5695 - Residential Energy Credits
Form 8396 - Mortgage Interest Credit
Form 8863 - Education Credits
Once the IRS begins processing these returns, we will submit your return automatically. Please do not submit your electronically-filed return to us a second time.
Soooooo, if you're filing anytime BEFORE the 11th of February AND you claim any of the above, your return will be held until the 11th. It caught me by surprise as I just received 7 acceptance emails and 13 emails with this message. Nice of my tax program to tell me before I filed for them. Thanks TaxAct Professional.
Comments:
Posted by Principissa on 2008-01-25:
That's good to know for those who have already filed. Well not really. Just another way for the IRS to stiff you. We won't be filing until after the 11th that's for sure.
Posted by MRM on 2008-01-25:
Mario the Great, I need some advice on how can I increase my tax refund. What are the areas that will increase my tax refunds? It seems like that the refunds that I received should be more. Any tips will be greatly appreciated. BTW, I do my own taxes online.
Posted by Mario The Great on 2008-01-25:
I'll post some quick tips for everybody tonight.
Posted by Stew.old on 2008-01-25:
Great info Mario! Looking forward to your tips.
Posted by MRM on 2008-01-25:
Thank you, Mario The Great! We all look forward to your tips.
Posted by superbowl on 2008-01-25:
Mario, thanks, guess I have no rush to get it done now. (VH)
Posted by Sparticus on 2008-01-25:
Very helpful!
Posted by GothicSmurf on 2008-01-25:
Thanks much for the help!
Posted by axhandlebill on 2008-01-25:
HERE'S YER SIGN, WHAT DO YOU EXSPECT, A GOV. BEING RUN BY A BUNCH OF REAL DUMB A$$E'S, AND WHILE WE ARE HERE WITH THE irs WHY, WHY DO WE NEED THEM, JUST GO FLAT TAX FOR ALL. HOW WILL WE COLLECT IT, EASY WHEN THEY GO TO BUY FOOD OF ANY KIND THEY HAVE TO HAVE A GOV. STAMP....OR A SEAL OR WHAT EVER, EVERYBODY HAS TO EAT........
Posted by Principissa on 2008-01-25:
Mario that would be awesome. Our accountant says we will be getting a little bit of a bigger refund this year with buying the house and me in school. But we are not exactly sure what documents if any we need to bring along with the W-2's.
Posted by *Brenda* on 2008-01-25:
Principissa, you should get a 1098 from your mortgage company and a 1098-T from school. I bought my house last year and my accountant also wanted the HUD statement.
Posted by Principissa on 2008-01-25:
I will call Navy federal on the 1098 for the mortgage. We closed on Dec. 21st, would we even still get one this year? I just got the tax form from the school. And the HUD statement is in the file with the closing papers. Did yours want anything else aside from that?
Posted by *Brenda* on 2008-01-25:
If you closed so late in the year I would think you'd just use the HUD because your first payment would be due the first of January or February right? The bank should know if you're being sent one or not. I get mine online (Countrywide). Maybe Mario knows!
My school still hasn't sent my tuition thing grr. They are always down to the last minute with those things!
I think that's all the accountant wanted other than the regular W-2s and 1099s. My accountant sends out this client organizer thing that helps you get everything together, makes it a little easier!
My school still hasn't sent my tuition thing grr. They are always down to the last minute with those things!
I think that's all the accountant wanted other than the regular W-2s and 1099s. My accountant sends out this client organizer thing that helps you get everything together, makes it a little easier!
Posted by *Brenda* on 2008-01-25:
Oh, you can deduct some student loan interest if you have that too. I'm not sure what the guidelines are for that.
Posted by superbowl on 2008-01-25:
Brenda, if you pay any points or fee's in full during 2007 you can also take those as a deduction. Mario may correct me on this but if you wrap points and fee's into the loan you can not take them as a full deduction in the year you took out the loan.
Posted by Principissa on 2008-01-25:
I didn't get a loan since it was only one class, but I have the receipt for the course and the books, as well as that little form the school sent me.
Posted by MRM on 2008-01-25:
Mario, I have one last question with regards to refund: Is there any difference in the refunds if you do taxes online vs. an accountant. Any kind of tips you will offer tonight will be greatly appreciated.
Posted by Principissa on 2008-01-25:
MRM that is a great question! I never even thought to ask that.
Posted by MRM on 2008-01-25:
I hope Mario will answer that burning question tonight!
Posted by Stew.old on 2008-01-25:
I guess it's obvious why they call him Mario the Great.
Posted by lobo65 on 2008-01-25:
Thanks for the info. I haven't even received my W-2 yet though, and I'm a govt. employee. Heh.
Posted by Slimjim on 2008-01-25:
Good post
Posted by Mario The Great on 2008-01-25:
Alright kids. Here's some tips:
1. If you make less than $54K per year, you can file for FREE. Just go to www.irs.gov and click on the FREE FILE link that will take you to other websites that have been approved by the IRS. Mind you, your Federal return is free but your state isn't. You can file your state return for free (most states) just by going to the Dept. of Revenue for your state and enrolling in their free e-file.
2. If you are legally married or common law, have children and decide to file separately, you will lose the majority of credits including EIC and the Child Tax credit. I'm not sure why some people do this, but they do.
3. If you will make more than $35K, you will not receive ANY EIC BUT you will receive the CTC (Child Tax Credit)
4. If you make less than $35K, you may be eligible for EIC but will receive it based on no more than 2 children. The more you make, the less your EIC is and the greater your CTC is. The less you make, the greater your EIC is and the lower your CTC is. (Some people believe that the more children you claim the more you get.) That is partly true with the CTC but only up to 4 children.
5. A general rule of thumb. You can claim ANYONE in your house so as long as you provide for their food, house and clothing. Want to claim mom and dad for eating your food? Go ahead and claim them as a dependent. It's legal so as long as they don't make more than approx. $3k a year and if so, they have to file taxes (applies to anyone) as well AND make sure that they check the box that says CAN BE CLAIMED AS A DEPENDENT ON SOMEONE ELSES RETURN.
6. You MUST claim unemployment (1099-G) on your taxes.
7. If you receive a 1099-MISC with your wages in box 7 (NonEmployee Compensation) and NO Federal Taxes withheld (Box 4), expect to pay roughly 20% of that amount in taxes and don't forget your SE TAX too.
8. You can claim mortgage interest, points (not rolled into your mortgage) and even real estate taxes (not paid by your mortgage). Upkeep of the house (paint, repairs, etc.) is not tax deductible until you sell the house.
9. You can claim education credits (HOPE & LIFETIME LEARNING) for any child in college. The HOPE is generally used for the Freshman and Sophomore year and can not be used after that.
10. If you purchased a Hybrid vehicle last year, you can claim up to $3,400 in CREDITS!!! Qualifying vehicles purchased on or after January 1, 2006, will be eligible for a tax credit ranging from $400 to $3,400 based on fuel economy.
Ok, that's enough and if you have any questions, lmk.
1. If you make less than $54K per year, you can file for FREE. Just go to www.irs.gov and click on the FREE FILE link that will take you to other websites that have been approved by the IRS. Mind you, your Federal return is free but your state isn't. You can file your state return for free (most states) just by going to the Dept. of Revenue for your state and enrolling in their free e-file.
2. If you are legally married or common law, have children and decide to file separately, you will lose the majority of credits including EIC and the Child Tax credit. I'm not sure why some people do this, but they do.
3. If you will make more than $35K, you will not receive ANY EIC BUT you will receive the CTC (Child Tax Credit)
4. If you make less than $35K, you may be eligible for EIC but will receive it based on no more than 2 children. The more you make, the less your EIC is and the greater your CTC is. The less you make, the greater your EIC is and the lower your CTC is. (Some people believe that the more children you claim the more you get.) That is partly true with the CTC but only up to 4 children.
5. A general rule of thumb. You can claim ANYONE in your house so as long as you provide for their food, house and clothing. Want to claim mom and dad for eating your food? Go ahead and claim them as a dependent. It's legal so as long as they don't make more than approx. $3k a year and if so, they have to file taxes (applies to anyone) as well AND make sure that they check the box that says CAN BE CLAIMED AS A DEPENDENT ON SOMEONE ELSES RETURN.
6. You MUST claim unemployment (1099-G) on your taxes.
7. If you receive a 1099-MISC with your wages in box 7 (NonEmployee Compensation) and NO Federal Taxes withheld (Box 4), expect to pay roughly 20% of that amount in taxes and don't forget your SE TAX too.
8. You can claim mortgage interest, points (not rolled into your mortgage) and even real estate taxes (not paid by your mortgage). Upkeep of the house (paint, repairs, etc.) is not tax deductible until you sell the house.
9. You can claim education credits (HOPE & LIFETIME LEARNING) for any child in college. The HOPE is generally used for the Freshman and Sophomore year and can not be used after that.
10. If you purchased a Hybrid vehicle last year, you can claim up to $3,400 in CREDITS!!! Qualifying vehicles purchased on or after January 1, 2006, will be eligible for a tax credit ranging from $400 to $3,400 based on fuel economy.
Ok, that's enough and if you have any questions, lmk.
Posted by Mario The Great on 2008-01-25:
By the way MRM, there is a huge difference between your CPA and online yourself. One charges a heck of a lot more and uses the same programs you and I have access to. Here's what I recommend to people.
1040 EZ
Tax Firms - $80+ bucks
online - FREE or Minimal ($15-$25) + State
1040A
Tax Firms - $200+ bucks
Online - $Free or up to $50 including State
1040
Tax Firms - $300+ bucks
Online - $Free or up to $50 including State BUT it's a lot harder to understand exactly what you're eligible for. Almost ALL tax programs ask you the right questions. At the end of them, you can run alerts and it'll let you know whether something isn't right.
Hope this helps.
Don't pay the tax services money for something you can do in 5 minutes and for free.
1040 EZ
Tax Firms - $80+ bucks
online - FREE or Minimal ($15-$25) + State
1040A
Tax Firms - $200+ bucks
Online - $Free or up to $50 including State
1040
Tax Firms - $300+ bucks
Online - $Free or up to $50 including State BUT it's a lot harder to understand exactly what you're eligible for. Almost ALL tax programs ask you the right questions. At the end of them, you can run alerts and it'll let you know whether something isn't right.
Hope this helps.
Don't pay the tax services money for something you can do in 5 minutes and for free.
Posted by Lidman on 2008-01-25:
Mario, how can I run away from they?
Posted by qualityappliance on 2008-01-27:
Mario, Are you licensed to dispense tax advice? All the real tax people that I know were well aware of the AMT problem when it passed, which was around the first week in December. So, it was foolish to file returns that had anything to do with the AMT that early.
Posted by Mario The Great on 2008-01-28:
Licensed? If you know as much about taxes as you do appliances, we're all being audited. Sure, EVERYONE KNEW about the Alternative Minimum Taxes. If you look at the amount of people on this board that knew, they all rated this informative as not helpful. Thanks for your advice, but I'll have to pass on it.
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