Taxes / Tax return questions

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Obtenor_sl

shitlord
483
0
Hey guys.

I just got my first ever W-2 (I'm a recent immigrant to the US). What would be the best way to file? H&R? TurboTax? I have no idea which one is better or any recomendation on what to do. It would be my first time filing for taxes in the US And would like to avoid an audit, I'm guessing since they have no previous data on me if I file one of those "I have 6 children" fake claims that a lot of people file I'll be flagged for an audit.

Any suggestions?
 
OneofOne

OneofOne

Silver Baronet of the Realm
6,616
8,074
If you have 6 SS#'s that won't get flagged let me know, I'd love to use them =P What Corndog said, but DO NOT pay any of those businesses for your state return. Check and see if your state taxing authority has an online tax form you can fill out and file instead.

As long as: you don't own a home, didn't have tons of medical bills, didn't buy a new car, don't own a business, don't have tons of interest income, yadda yadda you can fill out the EZ form, and it's well, super easy.
 
K

Kedwyn

Silver Squire
3,915
80
Given that I figure you likely don't know what to look for and might screw yourself if you do it on your own.
go to H&R Block or one of the quickie tax places and get it done. You are supporting local employees and the cost is minimal.

One mistake on a dependent or EIC or something stupid you might not be aware of might cost you a lot of money. A few times through and you'll know as much as they do for the most part. You didn't give us nearly enough information to help you otherwise.

Otherwise post your:

Income
Interest paid on mortgages, property tax and sales tax deductions
Medical expenses if they exceed 7.5% of income
Number of dependents (you, wife, kids, people you totally care for etc)

and people can give you a better idea if you are missing anything by doing it yourself.
 
O

Obtenor_sl

shitlord
483
0
Well,

I only worked 6 months in the previous year so what it says there in the income paid is 52k.
I rent, I do have a car loan (bought not leased), 0 dependant, but I'm doing a graduate degree and paying off that tuition as a student loan. That pretty much sums it up.
 
kegkilla

kegkilla

The Big Mod
<Banned>
11,320
14,738
why would you bother paying taxes? that's one of the perks about being an immigrant here. it's not like they're going to do shit about it.
 
O

Obtenor_sl

shitlord
483
0
If I get even a speeding ticket on my current visa I can be deported; so, no thanks. Also if I already PAID them and I'm getting money in return then not why file?
 
K

Kedwyn

Silver Squire
3,915
80
You can claim yourself as a dependent so you have 1 (assuming no one else claims you) and you can deduct your student loan interest up to $2500

Any method you desire should be adequate. I recommend using a local place that won't charge you much. Wait for your refund and have it direct deposited.
 
OneofOne

OneofOne

Silver Baronet of the Realm
6,616
8,074
Hrm no. Student loan interest is not itemized and has nothing to do with your standard deduction. It's a separate deduction. As are school costs.

I take back what I said - not knowing your legal status, I would see a professional this first year. Just badger them with questions to understand as much as possible.
 
O

Obtenor_sl

shitlord
483
0
OneonOne:

Yea that's why I thought I should do them at a place where I can talk with somebody.

Burnesto:

It's a private loan from a local bank in Iowa.
 
S

Soriak_sl

shitlord
783
0
What kind of visa do you have? If you're on a nonimmigrant visa, you don't get the standard deduction and HAVE to itemize. You're also not eligible for the earned income credit or education credits. You also can't file online and must submit a hardcopy.

On top of all that, you're also subject to a much higher tax rate on capital gains (which includes dividends, interest, and selling stocks) - a whopping 30% tax.

On the upside, you don't pay FICA taxes (social security, medicare). Many employers don't realize this and will withhold the amount regardless... I'm still trying to get them refunded from my previous position. If they're not complying, there's an IRS form you can submit to get previously paid FICA taxes refunded. But you must document that you made an effort to try and get it back from your employer.


edit: also, do not go to H&R block. They receive minimal training and will have no clue whatsoever how things work for a nonimmigrant. Your country of origin will also matter, as the US has tax treaties that can exempt or reduce some of the taxes you pay. (Koreans, for example, pay zero capital gains taxes - don't ask me why.)

It's probably worth spending $200 on a tax professional the first year and figuring out what's up. Chances are he can get more than $200 back for you that you'd otherwise have missed. You should be able to meet with someone free of charge and use that to see how knowledgeable they are about your specific situation.
 
O

Obtenor_sl

shitlord
483
0
Soriak_sl said:
What kind of visa do you have? If you're on a nonimmigrant visa, you don't get the standard deduction and HAVE to itemize. You're also not eligible for the earned income credit or education credits. You also can't file online and must submit a hardcopy.

On top of all that, you're also subject to a much higher tax rate on capital gains (which includes dividends, interest, and selling stocks) - a whopping 30% tax.

On the upside, you don't pay FICA taxes (social security, medicare). Many employers don't realize this and will withhold the amount regardless... I'm still trying to get them refunded from my previous position. If they're not complying, there's an IRS form you can submit to get previously paid FICA taxes refunded. But you must document that you made an effort to try and get it back from your employer.


edit: also, do not go to H&R block. They receive minimal training and will have no clue whatsoever how things work for a nonimmigrant. Your country of origin will also matter, as the US has tax treaties that can exempt or reduce some of the taxes you pay. (Koreans, for example, pay zero capital gains taxes - don't ask me why.)

It's probably worth spending $200 on a tax professional the first year and figuring out what's up. Chances are he can get more than $200 back for you that you'd otherwise have missed. You should be able to meet with someone free of charge and use that to see how knowledgeable they are about your specific situation.
Click to expand...
Thanks.

Yes, I'm F1 and am not paying FICA, thanks for all that data, I thought it would've been simpler but guess not =/
 
G

Gadrel_sl

shitlord
465
3
Without making a new thread here's a quick, hopefully, tax question:

I received a 1099-MISC from a company I sued earlier this year for the settlement payment they made to me. However, under IRS rules, the underlying basis for the claim wouldn't normally be taxable. How do I inform the IRS of the 1099-MISC while simultaneously not counting it on my income? The only solution I've been able to google up is to file the 1099-MISC on Schedule C and deduct the same amount as an "expense." Sounds pretty funky to me.

Thoughts?
 
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Soriak_sl

shitlord
783
0
Two more things: you'll have to file a 1040NR (for non-residents), which is a bit longer than the regular 1040. You also can't make any withholding adjustments - so when your employer asked you to fill out a form where you count how many deductions you have, you need to fill in 1 no matter what the real answer is. I didn't know this and my employer spotted it and made the adjustment... but if the IRS bitches about it, they can fine you.

I'll have to meet with a tax professional myself to figure out what kind of deductions I can make. Although my plan is to first calculate taxes owed with and without possible deductions to figure out if it's worth spending $200 on.
 
Shano

Shano

Golden Knight of the Realm
250
74
I just did mine online about a week ago through H&R block website. I have a couple more things than just a W-2, but it was still really easy and free. I imagine even though you are an immigrant you could still get on there and do yours for free also. If you have all your documents that you need it wouldn't hurt to just mess around with it. Honestly, with all the step by step guides on there it's setup to be dummy proof. And if you don't feel comfortable during it or if something feels off then just simply don't submit it. Nothing happens until you actually file and you won't do that by mistake.

Plus I'm sure you're smarter than half the people in this Country anyways. And it even tells you before you file your risk of being audited (no idea how accurate that is though). I wouldn't go anyplace where someone will do it cheap. The last thing you want is someone who could give a crap less about you doing your taxes.
 
OneofOne

OneofOne

Silver Baronet of the Realm
6,616
8,074
Except you miss the part the free programs only offer the most basic of tax returns, which I'm willing to bet our non-resident alien (guessing) can't do. Obtenor, go talk to a tax guy, seriously. And don't be afraid to walk out if s/he seems incompetent.

The ONLY reason H&R Block and the rest offer free (basic) Federal returns is because the IRS was going to offer its own program for free, and the big tax prep companies lobbied hard to nip that in the bud. In return for the IRS not releasing it's own program, everyone else has to offer the service instead. Which they don't like, but at least they can still wrangle you in to pay for your State return (which, you shouldn't do).
 
Shano

Shano

Golden Knight of the Realm
250
74
You're probably right. I imagine it'd be free until you check a certain box or something and then would get the message of having to upgrade to premium / deluxe or whatever else they would want to call it.

I'll concede that'd it be best to just find a professional and have them do it for you and show you all you need to know, so next year you'll have a real understanding of what needs to be done so you can do it yourself.
 
S

Soriak_sl

shitlord
783
0
One thing worth keeping in mind is that things like business travel expenses have to add up to 2.5% of your income before you can deduct them. If you really just paid rent, bought stuff for home use, and didn't have any large medical expenses... there isn't a whole lot that you can deduct.
frown.png


But if he can come up with $1k to $2k in deductions that you'd have missed, he just paid his own salary.
 
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