<p>notrichenough–we are over the amount now for the rental deduction so we aren’t getting any deduction on our taxes but I think maybe that is what threw us into AMT?? Turbo Tax “fills out” your schedules for you. Our taxes are not that complicated and I have been doing them via Turbo Tax for years, 7 years with this rental property (which was our main home that we couldn’t sell). Turbo calculated the 12K loss, which has been about the same figure for the past several years so I’m pretty sure that is correct. What is new is this AMT. It appears that we can deduct that loss via the AMT but I’m not sure if I am double counting things or not. The full program isn’t up yet and I’m just using pay-stubs for now. I’ll investigate further when we have our official documents and do our taxes for real. I just wanted to get some numbers down for FAFSA next week. </p>
<p>Doubled checking the numbers–our witholdings for fed/state/FICA/etc. are at 40% of gross depending on if we owe $6000 or $16,000 depending on how we are supposed to enter the rental property or not??</p>
<p>sewhappy–I would be SO much happier with a flat tax rate personally. See, the issue I have is that I can’t figure out which numbers I am supposed to enter and how. I used the help section, no real help. I entered them the best I could figure out BUT, if I am wrong, guess what, I get penalized for that. How about we just make it simple and say that you pay XX% and be done with it. No, that would stop a lot of good things that happen like charitable deductions, etc. but seriously, do I need to pay 40% of our income in taxes, really???</p>
<p>dstark–we are not anticipating anything but loans, however, DD’s plan now is to go to medical school and those dollars are cheep to borrow now and pay back later–when you can’t get subsidized loans :D. She has most of her schooling paid for (UG) through various scholarships. She, however, has a twin brother and we don’t know where we stand having 2 go off to college with the federal aid given that their combined tuition and costs is pretty substantial so there might be a work study or something. What we are really considering is outside scholarships. Many of those want a FAFSA yet their income thresholds are a lot higher then the federal threshold for aid.</p>
Oh, I thought you were referring to just the Federal income tax.</p>
<p>
There’s no way taking or not taking a $12,000 loss can affect your taxes by $10,000.</p>
<p>In general for something as simple as rental property you should not have to manually enter anything on the 6251, your tax program should do it all for you. If you can’t take the rental loss this year on your 1040, you can’t take it on the 6251 either. It gets calculated into form 8582 (Passive Activity Loss Limitations, the most heinous form ever invented), where it will be carried forward for use in future years or when you sell the property. The AMT adjustment on line 19 should only be for differences in depreciation for certain asset classes, and should be small. Line 20 is for non-passive activities, which excludes rental property.</p>
<p>I suspect most of the difference is that TurboTax is assuming no AMT patch. What does line 29 on your 6251 show?</p>
<p>“Direct Stafford Loans: The Department of Education offers unsubsidized Stafford loans for graduate/professional students that have better interest rates and loan terms than many private loans. Stafford loans for
graduate/professional students have a fixed 6.8 percent interest rate. Students are not required to make payments while in school, but interest accrues on unsubsidized Stafford loans during that period. Unsubsidized Stafford loans for Health Professions Students are limited to $32,000 annually. The Budget Control Act of 2011 (BCA, P.L. 112-25) eliminated subsidized Stafford loan for graduate/professional students, which will increase repayment for medical students between $10,000 and $20,000
over the life of their loans.”</p>
<p>SteveMA, my unqualified advice is that is you are confused and think you might be making a mistake on your taxes, just make sure it is in your favor.</p>
<p>Cuz I guarantee you, if you make a mistake and penalize yourself, the IRS isn’t going to contact you and send you a check!</p>
<p>notrichenough–I thought I was looking at the total tax withheld too at first. Again, I am using pay stubs, not W-2’s yet :D.</p>
<p>I know I am confused. I’m really not sure what to put into the AMT form at this point. I just changed the AMT form and took everything out of that form and now it only changes my tax by $779. I’m more confused than ever. :D. I can deal with $800, but not the $10,000 it was showing originally :eek:. Looking over the forms, I am guessing there is a glitch in the program right now.</p>
<p>^^Seriously, they just send you a check without requesting it? That’s a new one for me. I’ve heard of people who got audited and got money back, but not of those who made a mistake and got a refund. I’ve probably made a mistake or two (not in my favor) every time I’ve done the taxes in the last 30 years…and never got a check back. Got plenty of requests for me to send more money for penalties or late fees, though!</p>
<p>So do I understand this right?? There is a good possibility that health insurance benefits might get TAXED now? My husband and I are a two-person business (S Corp). Our monthly health insurance premium is going up 40%, to $1,690. And we might have to pay TAXES on that??? I’m going to be sick.</p>
<p>We also have gotten a refund when our CPA made a mistake, but not often. It was a simple math miscalculation–they don’t delve into the return LOOKING for mistakes and to refund you.</p>
<p>Have also gotten requests to send more money for late fees and penalties. We were able to get them to waive the late fee and penalty they requested, fortunately. It was a miscommunication between IRS & CPA. Made us happy to have the waiver, as it was 4-5 figures!</p>
<p>“So do I understand this right?? There is a good possibility that health insurance benefits might get TAXED now? My husband and I are a two-person business (S Corp). Our monthly health insurance premium is going up 40%, to $1,690. And we might have to pay TAXES on that??? I’m going to be sick.”</p>
<p>I had heard some were talking about that, but I sure hope that doesn’t happen (I’m sure Congress will be exempt). If you consider that many people with family health benefits have a value of 15-20K, that would run into so much money. But I can’t imagine you’d have to pay taxes on the premium that you pay yourself, that would be insane. I would think it would only be on what the company provided you. Did I get that right? That would still be A LOT of money.</p>
<p>" We were able to get them to waive the late fee and penalty they requested, fortunately. It was a miscommunication between IRS & CPA. Made us happy to have the waiver, as it was 4-5 figures!"</p>
<p>Wow!!! That’s a huge late fee and penalty!!</p>
<p>Maybe I should question the fees and penalty. I generally disagree with it, but since it’s never been over $300-$400, I just pay it. I don’t want to mess with the IRS!</p>
<p>Actually, the only reason we questioned it and asked that it be waived was because we thought we had gotten an extension, which our CPA said he had obtained. IRS said that we hadn’t but because we had gotten extensions all the other years and had always paid out taxes before the extension deadline, they would waive the penalty & late fee just this one time.</p>
<p>The Kiplinger site I posted above had good info about the potential penalty on medical insurance premiums, but since it isn’t until 2018, it could easily have more revisions between now and then.</p>
<p>busdriver, the issue is that we pay our premiums through the company, so it is a “benefit.” </p>
<p>If the change isn’t going to happen until 2018, I guess I won’t lose sleep over it now. I don’t even see how we will be able to afford the PREMIUMS in five years, much less any taxes…</p>
<p>Okay, I understand. But a huge bill in 2018 is still a huge bill in one’s future, and yes, imagine what the premiums will be in five years, so much more. I am losing sleep over this, there are so many bad possibilities.</p>
<p>Unless you can get over the 7.5% of AGI threshold, you do pay taxes on any premiums that you pay yourself. People in employer plans get both a break on premiums (just try getting comparable coverage with no proof of insurability in the individual market!) and a break on taxes.</p>
<p>^^I know what you mean, allyphoe, about employer plans. We pay about $150 or so a month for amazing family benefits. I just had surgery that cost the insurance company about 10K. Cost me $50 total. Unbelieveable. No prior conditions to declare, no proof. I can see how someone would work for insurance benefits alone.</p>
<p>I wish that people who have individual plans could get the same sort of deal, and I personally don’t mind paying a bit extra so they can do so. But taxes on a 20K/year policy benefit…that’s so much money, I might just have to retire before I pay more than 50% of my income in taxes.</p>