Hey there folks,
This may seem like a silly question.... I am just afraid of being wrong on my taxes.
I have always used turbotax and have always done my texes myself... this year was much more diificult. I have quite a few changes so it may be common. I bought a 2nd home, and spent quite a bit of $$ fixing my original home to get it ready to be a rental (finally rented it out in January 2007). So I have two mortgages. Two properties with real estate taxes and lots of interest paid.
I also started a side business out of my home office
on top of my normal everyday job, that had significant upfront investment costs for machinery, computer and software, ending up only drawing a profit of $30 for the year, after all the start up costs.
Turbo Tax shows that I should be getting about $10,000 back, which doesn't sound right, but i have never had so many write off's either. Wondering is this uncommon?
2007-02-06 04:57:31 · 5 answers · asked by Tinker925 2 in Business & Finance ➔ Taxes ➔ Other - Taxes
Well, I paid almost $15,000 to state and fed taxes on my job alone so maybe it makes sense?
2007-02-06 06:26:26 · update #1
It's not common, but not unheard of either. It depends on how much you paid in. Unless you paid in a lot, yes, that sounds high. But if you paid in that much or more, and your expenses were high enough to knock your taxable income down to next to nothing, it could be right.
The side business sounds like it would not have affected your taxes much, if your net was just $30. Depending on the machinery, it might have to be capitalized and depreciated rather than deducted up front. You mention "quite a bit of $$" to get your property ready to rent, and you don't say what "quite a bit' means - check to be sure that none of those expenses should have been capitalized and depreciated.
If you didn't pay in that much, then it's probably not right, since you probably aren't eligible for the EIC, and even if you are, that maxes out a little over $4000.
It wouldn't be a bad idea to have a CPA look it over. DON'T go to someplace like H&R Block - this is way out of their league.
2007-02-06 05:12:49 · answer #1 · answered by Judy 7 · 2⤊ 0⤋
I only imagine that is a shame that the U.S. authorities received't even attempt to respond to human beings's concerns. i don't have a code 1301 yet each and every thing else has similarities. I had funds back date of feb a million and under no circumstances some thing, then this morning I examine and the hot date is feb 22. I called and develop into advised this develop right into a "wide-spread" message and that i might want to get carry of it in the previous then yet no longer to call again till after the twenty-2d. I only imagine the authorities might want to do extra to ease the worries of tax payers.
2016-11-25 20:22:59 · answer #2 · answered by rensing 4 · 0⤊ 0⤋
You really should go to a tax professional, like a local CPA...not H&R Block. Turbo Tax is out of its league on this one.
Nothing worse than thinking you are getting back $10K and have the IRS re-calculate your return.
2007-02-06 06:30:35 · answer #3 · answered by Pure_Alpha 2 · 0⤊ 0⤋
It's uncommon unless you're a really high wage earner. I would have the return checked by a professional.
2007-02-06 05:06:15 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Go to H. R Block.They might be able to help you.
2007-02-06 05:05:42 · answer #5 · answered by Anonymous · 0⤊ 1⤋