Tax Stress

Melliewood · January 2015

I haven't gotten in my paperwork from my job yet, but I am psyching myself up that I did the whole health tax credit thing wrong and will have to owe or something will happen. It will probably be fine but I always worry about the what ifs. Any tips to calm myself down?

Wulfgar · January 2015

I know that there are some who have their own small companies that might help you.

My only suggestion is that you would always want to over estimate your income when dealing with the Federal Government since it is better to get money back from them versus owing

Hopefully you know what you put down as your projected income for this year and have been tracking any changes that would be significant enough that you would have to change your income so that your tax credit would be close to zero.

Melliewood · January 2015

I don't think there has too much of a big change, but *fingers crossed*

hoffse · January 2015

Do you have your most recent pay stub from 2014? If so, you can plug in some numbers and get an estimate.

I think you asked about Tax Act in a previous thread. Honestly, this year I would pay the $30-$40 to have HR Block or TurboTax with whatever schedules you might need. Those are both pretty reliable, and I know HR Block has been updated for the healthcare stuff (I have already done most of our taxes and there were questions about this). I am confident TurboTax has been updated as well. I tried to backcheck some stuff on TaxAct, and I just didn't like it. As I recall, it was missing some basic stuff from the free version, and I didn't think it was asking enough questions. Admittedly, I didn't pay for the upgrade, but if you are going to pay anyway then pay for something that has a a good track record. Taxes are going to be weird for everybody this year.

HR Block and TurboTax are virtually identical - I have used both. The interfaces on them are a bit different, but they are both very VERY self-explanatory and easy to navigate. You won't go wrong with either one. Buy whichever one is cheaper for your needs.

You should be getting W2s within the next two weeks, so you will know soon. Try to calm down. Once you have your W2, then go ahead and get the taxes prepped as soon as possible. That way if you owe, you can have a couple months to save before you have to actually file/pay on April 15. If you don't owe, you can file on Jan. 31 and hopefully get your refund more quickly.

Erikan73 · January 2015

Relax & just start putting your tax papers aside as they come in. I'll give you the advise my parents gave me. Do you taxes as soon as you have all your paperwork. If you get a refund, you'll get it faster the earlier you file (generally) and if you owe, you have time to save up the money to pay it before the due date of April 15th. If you can't pay it off by then, you can always set up a payment plan. If you do end up owing, make sure to adjust your tax with holdings on your pay to hopefully help to avoid owing next year.

Melliewood · January 2015

Thank you! I will try to use TurboTax this year. Would I need to cancel my TaxAct account before moving on?

Wulfgar · January 2015

No, you don't have to cancel your TaxAct account. I have switched from paid to free to paid tax programs over the years and you don't have to cancel accounts. Just make sure that you don't have an auto pay to TaxAct first.

Melliewood · February 2015

If you owe a little bit, would it just come out of the refund? Sorry, I am not new to filing but new to the whole credit mambo jumbo.

Melliewood · February 2015

I mean if you owe because you used more of the health tax credit than you predicted...not sure if I am making sense.

Xstatic3333 · February 2015

Melliewood said:

I mean if you owe because you used more of the health tax credit than you predicted...not sure if I am making sense.

That will get wrapped in with all of the other tax stuff. If you "owe" in net, you'll have to pay, but if you are "owed" in net, the government will pay you.

Melliewood · February 2015

I plugged in my info and I would be getting a 3,000 refund but only getting about 100 because of the health insurance crap. What's the deal?

als1982 · February 2015

Melliewood said:
I plugged in my info and I would be getting a 3,000 refund but only getting about 100 because of the health insurance crap. What's the deal?

Does your subsidy come out of the premium cost?

Xstatic3333 · February 2015

Melliewood said:
I plugged in my info and I would be getting a 3,000 refund but only getting about 100 because of the health insurance crap. What's the deal?

My guess is that you made more this year than you thought you would when you signed up for your ACA plan. Therefore, you are paying back some of the subsidy you recieved so that it lines up to what you actually made. It sucks, but at least you don't owe. A lot of people will be in the same boat this year. Sorry you didn't get better news.

smerka · February 2015

Look at lines 61 and 69 on the 1040. You may have filled out the form wrong and you're getting a penalty (you shouldn't assuming you and everyone in your tax household had coverage all 12 months of the year). Or what Xstatic3333 said is right.

Melliewood · February 2015

I'm going to go over to h and r block next week to see if they can help me figure things out.

vlagrl29 · February 2015

Xstatic3333 said:

I plugged in my info and I would be getting a 3,000 refund but only getting about 100 because of the health insurance crap. What's the deal?
My guess is that you made more this year than you thought you would when you signed up for your ACA plan. Therefore, you are paying back some of the subsidy you recieved so that it lines up to what you actually made. It sucks, but at least you don't owe. A lot of people will be in the same boat this year. Sorry you didn't get better news.

This is what I would say is going on. Luckily I estimated our income higher than expected so i'm wondering if we will get more back….

Melliewood · February 2015

You probably will

wish I did that! I just don't have 200+ to spend every month moving forward.

Melliewood · February 2015

When I went through ALL the screens my return was about normal. Phew.

However, now they are saying they sent folks the wrong info when it comes to the health stuff. What the hell? I already sent things in and now this...ugh.

Melliewood · March 2015

I thought everything was done and now I got a letter from IRS. I feel like it never ends

hoffse · March 2015

Melliewood said:
I thought everything was done and now I got a letter from IRS. I feel like it never ends

What does the letter say?

Read it and RESPOND TO IT.

Seriously, I can't tell you how important it is to write back. I once had a client ignore more than 30 letters from the IRS. He actually kept all of them, but he didn't answer a single one. Then he was surprised when they levied his property, and then he cold-called us less than a week before the sale to try to stop it. At that point, there was very little we could do to help. The IRS agent I spoke to had no sympathy left for the guy, and I can't say I blame him. I would be irritated too if I had sent 30+ letters trying to get in touch and never heard back on a single one.

I have found that the IRS is (in general) much more willing to work with folks who communicate with them and try to accommodate them. The agents have quite a bit of leeway to work with you, and remember they are taxpayers too. They understand where you are coming from, but their job is hard, and they spend their day on the phone with irate and/or terrified people. So make sure to be friendly to them and do your best to provide any additional information they request. It's probably just a routine audit, and everything will be fine if you respond promptly.

**None of this is legal advice - just practical advice.

Melliewood · March 2015

I am going to H&R Block on Sunday to sort things out. Is that a good idea? I used their website to do my taxes this year.

jtmh2012 · March 2015

Melliewood said:
I am going to H&R Block on Sunday to sort things out. Is that a good idea? I used their website to do my taxes this year.

Without knowing what the IRS notice actually says, nobody can answer that question.

Melliewood · March 2015

They asked for forms I already sent them (via handr block website)...pretty much.

Tax Stress

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