Venting about taxes

Beryana · #1 02-08-2003, 09:27 PM

I just wanted to vent about taxes. Okay, this year I thought it would be a rather straight-forward year for taxes, nothing surprising, etc. I was using the return to pay my property taxes. Big burst of that bubble! A few days ago I get a 1099 for the Roth distribution that I took to use as my downpayment on my house. Didn't think it would be any problem because my financial advisors didn't say that there would be any penalties, extra taxes, etc (I payed the taxes on the money when I rolled my 401K over into the Roth just for this purpose). I plug the info into TurboTax exactly as it was on my 1099 and WHAM! I'm hit, as it is right now, with have to PAY the IRS $300 (instead of a return of $500!)! Needless to say, I have calls into people to figure out WHY I would have to pay double taxes on this money - and no one has called me back. I would not have done payed the taxes on the rollover, opened a Roth, or bought a house if I had known I was going to have to pay large chunk of the money I earned and invested (though I lost a good chunk when the market nose-dived) to taxes!

ARGH!!! I just wanted to vent - this is the MOST annoying year for taxes yet (though next year could be worse because of business taxes, expenses, etc - though I may actually get above the standard deducation for once with my martgage loan and all my reenacting expenses!)d

Roses!

Sarah

AOIIalum · #2 02-08-2003, 09:50 PM

I'm getting ready to do our taxes in the next week. Hopefully it won't be such a pain for us!

You know what I thought was weird this year? Intuit sent us a copy of Turbo Tax Deluxe in the mail. I didn't request it or order it from anyone. We can go on and install it, but have to pay $39.99 to 'activate' that copy (it does include the Federal, State and free Federal online filing so it's not that bad.) Weird. Hopefully I can find it on sale locally for less

Sarah, take that 1099 back to your financial advisers and question them on why you're getting hit when they advised you otherwise. I'd expect that to be a routine question for them. Good luck!

Roses,
Christin

Beryana · #3 02-09-2003, 01:07 AM

I know that Intuit sent me an order form for this year's copy. I may just have to borrow my dad's copy next year for my taxes as I'll have my Pampered Chef stuff on my return (more than the basic copy could handle

)

I plan on talking to my advisors (I left messages for them on Friday morning) because I definitely should not have to pay taxes on a post-tax investment distribution. I also know that it was coded wrong (a box was checked saying it was a tradition IRA and it was a Roth. . . ). This on top of employers not taking enough out in taxes - and needing as much of a return as I can possibly get to pay the balance of my property tax bill.. . . I'm just glad that I'm not an accountant and have to deal with this on a larger scale

Sarah

AOIIalum · #4 02-09-2003, 09:14 AM

One of my good friends is a Pampered Chef consultant and I think they do their own taxes. I just started with PL as an independent candle consultant in January. I've been told to keep every receipt possible and document everything!!! Luckily I won't have to worry about any of that until next year's tax return

I think that some of the tax software has some kind of block to keep you from using it on more than one computer? I remember it was a pain for us when we bought a new computer and had to transfer the old files and program on the new system. Hey, another thought...can you claim the price of the tax prep software as a business expense? If so, you can buy your own software next year and write it off the following.

Roses,
Christin

SnowLady · #5 02-11-2003, 10:59 AM

I agree with Christin about going back to your financial adviser.

But - anytime you take out retirement money - whether it was pre or post tax you are penalized for early withdrawl.

I'm really surprised that they didn't automatically tell you that. It's pretty standard.

SnowLady · #6 02-11-2003, 11:02 AM

http://www.rothira.com/

I found this for you. Perhaps you can find your answers. And keep this for future use.

Beryana · #7 02-11-2003, 08:38 PM

Quote:

Originally posted by SnowLady
I agree with Christin about going back to your financial adviser.

But - anytime you take out retirement money - whether it was pre or post tax you are penalized for early withdrawl.

I'm really surprised that they didn't automatically tell you that. It's pretty standard.

Actually I'm not penalized because I used the entire amount withdrawn for the down payment on a house (first-time homebuyer - which is one of a number of reasons for early withdrawal without penalty). I just need to find time during the day to contact the company who held my Roth to see when they will be sending an adjusted 1099 as I am not supposed to pay taxes o n that money again. . . . . .

Sarah

Aphigal · #8 02-15-2003, 09:17 PM

Hi...I owe too I actually won a car (which is cool) but it counts like I made $20,000 extra this year...which I didn't. ARRRG!

Beryana · #9 02-16-2003, 12:45 AM

APhiGal -
Ouch! That's a good chunk of change to have to pay on! I actually figured mine out and just needed to manually fill out a form and basically stated that I pulled out all the money that I had put in or previously paid taxes on during the roll-over. Now I just have to do the state taxes from working in Michigan, Wisconsin, and Indiana!

Sarah

Aphigal · #10 02-17-2003, 04:41 PM

Yes its not a happy moment although I calculated its costing me about $4,000 for a new car...so not bad at all!!

Stacey