2015 tax returns

[mysticmac]

I haven't received all of the forms I need to file my tax returns, but went ahead and filled in all the numbers based on my last paycheck of the year and account statements.

As usual, it looks like I owe the feds some money and will get back slightly more than that from the state. My net return will be a whooping $9! Good thing both the feds and my state offer free efile, or I'd be losing money. Now to dream of all the things I can buy with my newfound wealth...

Has anyone else done their taxes yet? What's the damage? What will you do with your return?

 

[Deleted member 1]

You did perfect.


"Getting money back " means you have the feds a 0% loan over the last year.

You actually lost a few % via inflation on that money.

Your money was in your pocket the whole time.

Good job.

 

[mysticmac]

Yep, that's what I aim for. Usually, I get back enough to pay for dinner with a couple of beers. It is a little less this year due to some stock that I was given and haven't paid the taxes on yet.

 

[ThatOneDude]

How do I get my w4 perfect?

 

[mysticmac]

How do I get my w4 perfect?

Well in my case, it is accomplished by living a very uninteresting life from a tax perspective. I'm a single guy, of working age, with no debt, no dependents, and no health issues and I earn enough income so that nobody feels sorry for me but not enough for rich people to lobby for things that I might benefit from. Basically, I am ineligible for nearly all deductions and credits beyond the standard deduction and exemption.

If you are not like me, take a look at your returns from previous years, look up the exemption amount for 2016, consider how your life and interest payments might change in 2016 and set your number of exemptions to be the closest multiple of the exemption amount to what you anticipate your returns looking like. This way involves more math than my way.

 

[ThatOneDude]

Well in my case, it is accomplished by living a very uninteresting life from a tax perspective. I'm a single guy, of working age, with no debt, no dependents, and no health issues and I earn enough income so that nobody feels sorry for me but not enough for rich people to lobby for things that I might benefit from. Basically, I am ineligible for nearly all deductions and credits beyond the standard deduction and exemption.

If you are not like me, take a look at your returns from previous years, look up the exemption amount for 2016, consider how your life and interest payments might change in 2016 and set your number of exemptions to be the closest multiple of the exemption amount to what you anticipate your returns looking like. This way involves more math than my way.

I live an uninteresting tax life as well. I get a credit for my mortgage interest paid and that's it. Will start a 401k in Feb. I don't understand taxes well.

 

[mysticmac]

Assuming your using a traditional 401k offered through an employer, your payroll department will do most of the work for you. You'll just have new info on your w2 next year. If you're using a Roth 401k, you won't be able to deduct those contributions meaning nothing interesting will happen with your tax returns in this scenario either.

Since all you have is mortgage interest to deduct. Understand your amortization table given the payments you make and how much of each payment goes toward interest versus principle. That's how you can estimate the amount of interest you'll pay in a given year (you pay a lot more interest early in the loan and it drops of significantly as the years go on). If the amount you are paying is around or above the amount of an exemption for 2016, increase the number of exemptions on your w4 so your payroll department stops taking out so much money. Hell, you can use the extra dough to pay down the principle on the mortgage faster.

 

[ThatOneDude]

Assuming your using a traditional 401k offered through an employer, your payroll department will do most of the work for you. You'll just have new info on your w2 next year. If you're using a Roth 401k, you won't be able to deduct those contributions meaning nothing interesting will happen with your tax returns in this scenario either.

Since all you have is mortgage interest to deduct. Understand your amortization table given the payments you make and how much of each payment goes toward interest versus principle. That's how you can estimate the amount of interest you'll pay in a given year (you pay a lot more interest early in the loan and it drops of significantly as the years go on). If the amount you are paying is around or above the amount of an exemption for 2016, increase the number of exemptions on your w4 so your payroll department stops taking out so much money. Hell, you can use the extra dough to pay down the principle on the mortgage faster.

Would you mind talking through pm or email about this stuff? I literally know nothing, and would like it to where I don't get a return and don't pay. Or as close that as I can get.

 

[mysticmac]

Would you mind talking through pm or email about this stuff? I literally know nothing, and would like it to where I don't get a return and don't pay. Or as close that as I can get.

Yeah, that's fine. I'm no tax expert though. There might be more deductions that you are eligible for given home ownership. I've never looked into them since I don't own. I'd use TurboTax or something similar and just answer the questions it ask me and read the help documentation for anything I didn't understand.

For the amortization stuff, use an online calculator (like this one) and input your loan info, then check the schedule. If you have owned the home during previous tax years, you can verify the amount of interest paid by checking your previous tax returns. If that all looks good, you can predict future interest payments based on the schedule and adjust your w4 accordingly.

 

[ThatOneDude]

Yeah, that's fine. I'm no tax expert though. There might be more deductions that you are eligible for given home ownership. I've never looked into them since I don't own. I'd use TurboTax or something similar and just answer the questions it ask me and read the help documentation for anything I didn't understand.

For the amortization stuff, use an online calculator (like this one) and input your loan info, then check the schedule. If you have owned the home during previous tax years, you can verify the amount of interest paid by checking your previous tax returns. If that all looks good, you can predict future interest payments based on the schedule and adjust your w4 accordingly.

Awesome!

 

[IschKabibble]

I pay a CPA to worry about those things for me. Fuck taxes.

 

[ThatOneDude]

I pay a CPA to worry about those things for me. Fuck taxes.

That's for next year

 

[IschKabibble]

That's for next year

A good CPA is invaluable, imo. Especially if plan on running your own business.

 

[ThatOneDude]

A good CPA is invaluable, imo. Especially if plan on running your own business.

I'll be making enough money and starting to invest his year so it'll be worth it. Not needed this year though.

 

[SNIDELY WHIPLASH]

I use Turbo Tax. It's simple.

 

[mysticmac]

I use Turbo Tax. It's simple.

They seem to be getting more and more expensive every year though. Their cost exceeds my $9 return. I used TaxAct to come up with the numbers I have and will fill out the free efile forms that I'll actually use another time (after I actually get my w2 and 1099s).

 

[SNIDELY WHIPLASH]

They seem to be getting more and more expensive every year though. Their cost exceeds my $9 return. I used TaxAct to come up with the numbers I have and will fill out the free efile forms that I'll actually use another time (after I actually get my w2 and 1099s).

I don't know what you mean. I just download the product from......wherever.......