Tax Time...Questions...

[ptbrwn]

Originally Posted by rdub1968

I thought TT only came with one state download. Can you tell me how you get two states?
I am looking to buy it soon, probably from Costco.

Just install the software in one computer and install software for one state. When you install that same CDROM software into another computer, you can select another state without any problem. We've done it for two years.

[BagongBuhay]

Originally Posted by ptbrwn

Just install the software in one computer and install software for one state. When you install that same CDROM software into another computer, you can select another state without any problem. We've done it for two years.

Hmmmmm....don't those two states need to "talk" to each other to get it right on the Fed? How can you do what you're doing if the states are on separate PC's? Are you sure your results are right???? Be careful when you try to do workarounds like these because you defeat the controls and checks of the software in the interest of saving. You may never know if you are entitled to something more, or that you actually owe somewhere and you're setting yourself up for an audit. Just saying....

[SilverSagess]

The two states' returns don't have any baring on your Fed return.

However, I suppose you'd have to file your states in the correct order because you will claim credit for taxes paid to State #1 on the tax return you file with State #2.

[greenvillesc]

There are online efile programs that you can go to yourself, and you don't have to buy software. They step you right through everything you need. First go to Internal Revenue Service then click on efile for free. You have to go through the irs site to get the free federal efile, I believe. There is a long list of web-based programs you can use to file your federal taxes for free. We use TaxAct, and the program will also do your state taxes for a minimal fee (around $15 or so if I remember correctly.) We have the dual state situation (Live in SC, husband works in NC, I work in SC, etc.) and have used Tax Act Online for several years with no problems.
Internal Revenue Service
Free TaxAct (takes you to TaxACT Online taxes: FREE online tax filing, IRS efile & income tax preparation)

[BagongBuhay]

Originally Posted by SilverSagess

The two states' returns don't have any baring on your Fed return.

However, I suppose you'd have to file your states in the correct order because you will claim credit for taxes paid to State #1 on the tax return you file with State #2.

My husband and I prepare taxes for a living. Yes the state returns have a bearing on your federal return and vice-versa.

[BagongBuhay]

Originally Posted by greenvillesc

There are online efile programs that you can go to yourself, and you don't have to buy software. They step you right through everything you need. First go to Internal Revenue Service then click on efile for free. You have to go through the irs site to get the free federal efile, I believe. There is a long list of web-based programs you can use to file your federal taxes for free. We use TaxAct, and the program will also do your state taxes for a minimal fee (around $15 or so if I remember correctly.) We have the dual state situation (Live in SC, husband works in NC, I work in SC, etc.) and have used Tax Act Online for several years with no problems.
Internal Revenue Service
Free TaxAct (takes you to TaxACT Online taxes: FREE online tax filing, IRS efile & income tax preparation)

You have to make less than a certain amount to be able to use the IRS filing. It is also limited in the type of schedules and forms you can use. This is for those who have very simple returns.

[SilverSagess]

Bibit... how do your state returns impact your feds (other than reporting your previous year's return as income for this year)? Maybe I've been missing something? (I'm not trying to sound sarcastic... I'm really curious to see where/how I am mistaken here.)

As far as free filiing your fed... The IRS refers you to a list of sites at which you can free file, most of which have an income limit (I believe your AGI must be less than $57K, some sites say $32K), but I believe Express1040 does not have this restriction (or at least, their income limit is MUCH higher). I don't think Express1040 is on the IRS list. Also, if I remember correctly, Express1040 will file your state return for around $12. I've never tried filing 2 states with them, I don't think.

[BagongBuhay]

Silver - I don't believe you're being sarcastic or anything like that! Your state refunds for the prior year are taxable on the current year on the feds, for one. Depending on the state, there are also limitations on credits that may affect the fed return. That's why, in response to the other poster who was suggesting a workaround and splitting up the states by downloading the software on separate computers is a dangerous thing to do. It overrides the built in audit checks within the software, and conceivably, you could have differing results on the fed return from re-keying another state. I don't know what type of questions are asked by TT, Taxcut or any of the applications geared toward individuals because we use a professional multistate application which has all the schedules and forms, including corporation returns. We don't go through an interview process inside the application since we go straight to the appropriate forms and schedules. My only caveat on self-preparing is that on some of the items, you would actually have to know the tax rules to be able to figure out which is the best way to go for you. Examples are taking mileage vs actual expenses, some unreimbursed emp expenses, many of the credits that have to do with energy, vehicles, etc. etc. Throughout the tax season, our application continues to receive downloads from the IRS. An off the shelf application probably does not get updated once released, not sure about this.

Self preparing works for very uncomplicated returns. So do online apps directly from the IRS. We have a client on EIC every year and we have done her return every year for the last 7 years. She makes an average of $18K, so income is not the guiding rule for a "simple" return. We are experiencing return customers this year who have decided that doing it themselves last year was not worth it to them, and some of them just have schedule A's. These customers are from out of state.