Tax help

[wiirenet]

So how many of you guys bought your car last year during the tax-break offer? ( http://www.irs.gov/newsroom/article/0,,id=205863,00.html )

I did.. problem is, I've only been doing taxes for 2 years now, both years I went to HR Block and it cost me over $100. And I don't make much to begin with. I want to try to do my taxes online by myself this year, but I don't understand how I do the new car bit.

I have 2 school loans that when I go onto their sites, I printed out "1098-E"s that have everything I need to know, and I'm waiting on my work's W-2. But I have no idea what I need/where I get a paper for my car. I went on toyotafinancial.com but there is no tax form or anything on there.

Oh and any other general tax advice is welcome too. I don't really know anyone who has to do the same stuff as me- new car and school loans. And my parents can't help either.

[sex]

http://www.irs.gov/newsroom/article/0,,id=211310,00.html

Q. Do I have to itemize in order to take this deduction?

A. No. Anyone who qualifies can take this deduction. You will claim this deduction when filing your 2009 federal income tax return in 2010. There will be a line on the 2009 tax forms, just follow the instructions.

[BailOut]

For as simple a setup as your taxes are there is no need to physically go into a tax preparation service. H&R Block Online is a wonderful system that will cost you less than half of what you've been paying, and you'll likely have it done faster. http://www.hrblock.com/taxes/products/31.html

You're lucky, though. After being a certified preparer for 5 years and doing my own taxes for 20 years I am finally having to use professional preparation. Our stuff has just grown to be too complex now, especially with my wife being self employed. The write offs are wonderful but the forms to claim them are anything but clear.

[wiirenet]

Thanks, yea my mom owns her own business and my parents go somewhere special to file jointly, that's why they can't help me or take me where they go.

I think I read that Q&A before, its just that I'm so new that even confuses me. Don't even know the difference between itemizing and claiming a deduction. I'm assuming the government doesn't have my information so I have to get the $ amount from somewhere. I just don't know if I need to know my whole loan amount, or my loan interest paid, or just the amount of tax I paid... hopefully when I file it will make it clear and hopefully I'll have all the info I need. I did save all my papers when I bought the car.

[nemelek]

I have used Tax Cut for the last 5 years and it has served me well. Wait until there is a coupon from Best Buy or Office Max. I never buy the state package. After the fereral the state is simple enough.

[why?]

It depends which state, as some are quite complex. I'd suggest turbotax though, and stay clear of h&r block. eewww, just terrible. They are far too conservative in everything they do.

I've done income taxes professionally off and on for personal, and I've done bookkeeping and helped prepare a few business income tax returns. While it is not that difficult, they can be intimidating simply because of the fear of the IRS.

But if you pick an online site, just make sure they stand by what they say. I am sure they do. As long as they do it won't be that big a deal if you make a small mistake. Heck, there have been a few times recently where I've known people who have had the IRS correct small items on there taxes, and sent them larger checks than they thought they were getting!

After reading the link you wrote, what you need is the closing papers from when you bought the vehicle. You will find the sales tax their. Sometimes car dealers lump that all together and call it something like "tag, title, & license." If they lumped it together, you'll need to figure out exactly what is what. Either call the dealership and ask, or call the local dmv, and ask them what it would've been. Both should be able to give you that information.

Excise tax was billed to you seperately, by the town. Usually. Sometimes it might be wrapped up in everything if you go to a dealer that did all in one, swapped the plates for you and had a registry of motor vehicles right in the dealership, like some of the larger ones do now.

To figure that out though again look at the closing papers. If you keep decent records and the town mailed it, you should hopefully have saved it. Or written a check for it that you can now go look up.

[wiirenet]

Thanks! I actually looked through my papers last night and found a sheet- I dont have it now and don't remember what it said but it did mention taxes and it was in the same format a W-2 or school loan tax form looks like. (With the boxes etc) So I'm pretty sure that was it. They must have given it to me when I got the car, as I don't remember them mailing it.
Haven't made up my mind on what program to use.. but now that I have all my papers I will be doing it soon! *hopes for money back*

[markitect]

Check out http://www.irs.gov/efile/article/0,,id=118986,00.html
Since you don't make much money you probably qualify for using one of the online programs for free. They will all take you through basically the same set of questions that H&R block would ask you and fill out the forms and submit them electronically.

That being said, I would highly recommend going to your local library and/or post office and getting the old fashion tax forms and booklet (I would suggest 1040A assuming you don't want to itemize). You will also want a schedule L(for the car tax credit) and M, and the appropriate state forms and booklet. Do your taxes yourself, and compare it to what the tax program gives you(they all let you print out filled in forms when your done).

If you take your time and look through the instruction book taxes are not hard, but many things about them are ridiculous and I think everyone should know that and express it to their representatives.

[tomato]

Since you don't make much money you probably qualify for using one of the online programs for free. They will all take you through basically the same set of questions that H&R block would ask you and fill out the forms and submit them electronically.




+1

Also, I recommend TurboTax software or online. Just don't wait until the last moment because it gets busy online during the last week or so.