Filing Tax Return Questions

[EWISUCyFan]

So this was my first full year working of working a full time job (graduated from ISU in August 2010). Despite making three times as much this year and paying more than twice as much in income tax, my tax return is a FAR CRY from what I got back in 2010 for just 4 months of work. So my questions are, and please excuse my youth and lack of knowledge...

1. Why am I getting back less when I paid so much more?

2. Would it help to file through a different website? Would I possibly get a different result?

3. I forgot to submit my state taxes in 2010, missing out on a small refund. Is there anyway I can file and get that this year?

Thanks for the advice. GO STATE.

 

[marothisu]

So this was my first full year working of working a full time job (graduated from ISU in August 2010). Despite making three times as much this year and paying more than twice as much in income tax, my tax return is a FAR CRY from what I got back in 2010 for just 4 months of work. So my questions are, and please excuse my youth and lack of knowledge...

1. Why am I getting back less when I paid so much more?

2. Would it help to file through a different website? Would I possibly get a different result?

3. I forgot to submit my state taxes in 2010, missing out on a small refund. Is there anyway I can file and get that this year?

Thanks for the advice. GO STATE.

It really all comes down to how many allowances/exceptions and stuff you put on your W-4. It IS completely possible that while you paid "twice as much in income tax" now, it still wasn't enough. Really, at the end of the day (or year in this case), you will always pay the federal government the same amount of money in taxes.

As far as the different website stuff goes, it really depends. My first year ever of doing my own taxes, I used Turbo Tax online which wanted me to pay the federal govt, but then went to Tax Act and I got a return back..mostly because I moved, graduated college, and started a new job, etc. The next year, they were the same thing..so I used Turbo Tax instead (I like their software better). Really, I would try both those sites as they are free until time to file.

As far as the not filing 2010 returns and small return, well...my last year of ISU I barely made anything in the state of Iowa, but would get a small return. I went to see a finance professor who was a CPA too and he basically told me it's pointless to send it in unless i wanted my $10 return. Never filed it, and nothing has happened to me.

If you really want to file it, I think it's possible, but not sure. I work with a guy who only files his taxes every three years (i.e. he files three years worth of taxes once every 3 years). Apparently you can do that, but no idea how.

 

[ccyclonepower25]

A refund is just a free loan to the government anyway.

If you don't have a lot of itemizable deductions, you probably won't get much more with another website.

Students have more refundable credits available to them. Those, along with the standard deduction, will wipe out most tax that you owe. Now with more income, and a higher taxes due, those deductions/credits don't go as far.

After all you are making 3 times as much, but only paid twice as much taxes. Therefore that would mean less refund.

 

[akclone]

So this was my first full year working of working a full time job (graduated from ISU in August 2010). Despite making three times as much this year and paying more than twice as much in income tax, my tax return is a FAR CRY from what I got back in 2010 for just 4 months of work. So my questions are, and please excuse my youth and lack of knowledge...

1. Why am I getting back less when I paid so much more?

2. Would it help to file through a different website? Would I possibly get a different result?

3. I forgot to submit my state taxes in 2010, missing out on a small refund. Is there anyway I can file and get that this year?

Thanks for the advice. GO STATE.

1. Hard to tell without knowing the details of the prior year return and this years

2. probably not.

3. Yes.

My best advice is to consult a tax pro if you are really concerned. If you just file the 1040 with a standard deduction its should not be expensive at all.

 

[wartknight]

I pay $125 to have my taxes done by a pro and it is well worth it to me with income coming from several different companies and some rental properties. I'd guess its probably quite a bit less than that if you are just doing the standard stuff so its probably well worth your money.

 

[marothisu]

I pay $125 to have my taxes done by a pro and it is well worth it to me with income coming from several different companies and some rental properties. I'd guess its probably quite a bit less than that if you are just doing the standard stuff so its probably well worth your money.

This is pretty smart if you own property or cars, sold stock or options, got married, etc. For a guy coming out of college, renting a place probably with no mortgage or anything you can get away with doing a Turbo Tax type of deal.

 

[Clark]

It really all comes down to how many allowances/exceptions and stuff you put on your W-4. It IS completely possible that while you paid "twice as much in income tax" now, it still wasn't enough. Really, at the end of the day (or year in this case), you will always pay the federal government the same amount of money in taxes.

As far as the different website stuff goes, it really depends. My first year ever of doing my own taxes, I used Turbo Tax online which wanted me to pay the federal govt, but then went to Tax Act and I got a return back..mostly because I moved, graduated college, and started a new job, etc. The next year, they were the same thing..so I used Turbo Tax instead (I like their software better). Really, I would try both those sites as they are free until time to file.

As far as the not filing 2010 returns and small return, well...my last year of ISU I barely made anything in the state of Iowa, but would get a small return. I went to see a finance professor who was a CPA too and he basically told me it's pointless to send it in unless i wanted my $10 return. Never filed it, and nothing has happened to me.

If you really want to file it, I think it's possible, but not sure. I work with a guy who only files his taxes every three years (i.e. he files three years worth of taxes once every 3 years). Apparently you can do that, but no idea how.

You're not supposed to do that. I imagine this guy never owes any tax otherwise the penalties and interest would eat him alive.

Even if he gets money back and thus avoids penalties, it's still a bad idea because he's just given the government a 3 year loan without interest.

 

[IcSyU]

You can still file a 2010 state tax return. If you owe money however it will have penalties tacked on for being late.

Regarding the software choice, they mostly ask the same questions and should come back with the same result if you're inputting the information correctly.

I haven't heard of the situation maroth is talking about on the every 3 years. Something doesn't seem right to me because extensions are only for six months on personal returns.

 

[Nycclone]

If u do not owe money it doesn't really matter when u file cuz, well, u owe no money. If I remember the law correctly, as long as you file within three years u get ur refund. I have done something like that before. Basically in 07 I knew I did not owe anything and was too lazy too file. In 08, cuz of the 08 stimulus I figured I'd file so I did 07 & 08 at the same time. Don't think I'd go so far as waiting say three years. . .

 

[kilgore_trout]

1. The relative amount of your payroll witholdings decreased plus you're likely in a higher tax bracket. The result, you overpaid less this time around.
2. No.
3. Yes, but why bother.

 

[EWISUCyFan]

As was mentioned earlier, I'm a single guy, one year out of school. I rent a place, and don't have any investments besides what I pay into 401K. For some reason, I figured that since I paid so much more in income tax, that I was going to receive a larger return. I guess we didn't learn otherwise in the Greenlee School of Journalism.

Anyways... The 2010 state tax refund was for $157 and I don't remember why I didn't file it. I'm just using the TurboTax online forms and don't see an option for putting in 2010 data. However, it will be worth the trouble. $150 = 3/4 of a new 3 wood.

 

[kingcy]

So this was my first full year working of working a full time job (graduated from ISU in August 2010). Despite making three times as much this year and paying more than twice as much in income tax, my tax return is a FAR CRY from what I got back in 2010 for just 4 months of work. So my questions are, and please excuse my youth and lack of knowledge...

1. Why am I getting back less when I paid so much more?

2. Would it help to file through a different website? Would I possibly get a different result?

3. I forgot to submit my state taxes in 2010, missing out on a small refund. Is there anyway I can file and get that this year?

Thanks for the advice. GO STATE.

1. You make more you pay more.
2. No the rates are the same.
3. You need to file reguardless. You have to pay a fine also. Better than in 4 years the state coming back and saying you now owe us.

 

[NickTheGreat]

Everyone has already answered your questions. A few more points

1. Taxact.com is GREAT for the simple tax people.
2. Remember this come W4 season. It sucks to pay out for taxes, but getting a "huge return" means you didn't plan accordingly.
3. Remember the $$$ you're paying out and VOTE how you see fit

 

[The_Architect]

Taxact.com

 

[isufbcurt]

So this was my first full year working of working a full time job (graduated from ISU in August 2010). Despite making three times as much this year and paying more than twice as much in income tax, my tax return is a FAR CRY from what I got back in 2010 for just 4 months of work. So my questions are, and please excuse my youth and lack of knowledge...

1. Why am I getting back less when I paid so much more?

2. Would it help to file through a different website? Would I possibly get a different result?

3. I forgot to submit my state taxes in 2010, missing out on a small refund. Is there anyway I can file and get that this year?

Thanks for the advice. GO STATE.

1. Chances are you moved into a higher tax bracket requiring you to pay more in taxes but I can't say for sure wthout looking at your information.

2. There are small variances between website but nothing that would cause one to be better than the other.

3. Yes you can file. You may get hit with some late penalties but I would go file it to avoid quaetions from the state later. Plus that refund amount is taxable income on your 2011 federal return.

If you need anymore help PM me because I am a CPA.

Curt

 

[ISUCyclones2015]

You're not a dependent of your parents anymore. So there goes a $5,800 deduction. BOOM! Can't believe no one mentioned that.

I've gotten most of my taxes back all 4 years of paying because of being a dependent.

 

[BCClone]

I just reread your statement. You mentioned making 3 times last year, paying 2 times of last year. That kinda says something right there. Not figuring in tax brackets or anything (You are not thinking about standard deductions chewing up the same amount each year I'm guessing) wouldn't you guess a 1 for 1 rate of last year.

 

[ricochet]

You're not a dependent of your parents anymore. So there goes a $5,800 deduction. BOOM! Can't believe no one mentioned that.

I've gotten most of my taxes back all 4 years of paying because of being a dependent.

Wouldn't his parents be the ones losing the deduction? It's been a long time since I did taxes as a dependent but I thought not only don't you get an additional deduction you can't even take your standard personal deduction (assuming you don't itemize) if you are claimed as a dependent by someone else.

 

[Three4Cy]

If you're filing a 1040 EZ, there's not much to it, so going to another tax provider isn't going to get you anymore money.

 

[Gitwitit]

1. Chances are you moved into a higher tax bracket requiring you to pay more in taxes but I can't say for sure wthout looking at your information.

2. There are small variances between website but nothing that would cause one to be better than the other.

3. Yes you can file. You may get hit with some late penalties but I would go file it to avoid quaetions from the state later. Plus that refund amount is taxable income on your 2011 federal return.

If you need anymore help PM me because I am a CPA.

Curt

You should PM Curt..he knows what he is talking about. I also am a CPA and out of my own curiosity ran a fairly simple tax return through turbo tax, taxact and my business software and came up with 3 slightly different results. You are recently graduated and your return is simple, I recommend taxact or going directly to a CPA and paying the $100 for a simple return. Depending where you are, it may be less than $100. People underestimate the value of a CPA these days, just because there are so many cheap alternatives. If you are ever audited you will wish you had a CPA preparing your return.