Tax Guru's Mortgage Question!

[347Mike]

So I was playing around with Turbo Tax the other day to get an idea of what my tax return would be and I did not see a place for interest/tax on the "free" Turbo Tax. Is there something I am missing or do I need to pay for Turbo Tax and get the deluxe version to claim those two deductions?

Anyone with first hand knowledge and would like to provide feedback would be appreciated!

Thanks!

[yellowstang]

Isn't the free version for a basic tax return, like someone who makes minimum wage and has no itemizied deductions? I think you need a schedule A or whatever to claim all that type of stuff.

[Broncojohnny]

You need to do a schedule A if you are going to itemize deductions. Make sure and compare it to the standard deduction you would get.

[347Mike]

Isn't the free version for a basic tax return, like someone who makes minimum wage and has no itemizided deductions? I think you need a schedule C or whatever to claim all that type of stuff.

Well, I have always used the free one as it covered my income, taxes and investments. That's all I ever really needed so this is all new to me.


I have another question. My bank who the mortgage is through sent me a form 1099 or something like that, that has all my taxes and interest on. I also received a letter last year for taxes that I owed on the property for the first 4 months before I moved in. Can I add both of these to my filing or no? They are both technically for 2010.

[SVT Lurch]

I have another question. My bank who the mortgage is through sent me a form 1099 or something like that, that has all my taxes and interest on. I also received a letter last year for taxes that I owed on the property for the first 4 months before I moved in. Can I add both of these to my filing or no? They are both technically for 2010.

1098 and yes anything on there (interest, mortgage insurance, basically anything paid into escrow by the lender) is deductible subject to your income (I believe single is $50,000).

[347Mike]

1098 and yes anything on there (interest, mortgage insurance, basically anything paid into escrow by the lender) is deductible subject to your income (I believe single is $50,000).

The 1098 and the letter I got in the mail for previous taxes (prior to me moving in) are two different forms. Well the one I got in the mail isn't even a form. It is more of a "bill". I normally wouldn't be concerned with it but it is a nice chunk of change.

[SVT Lurch]

If it was paid into escrow it should be deductible. I use a friend/CPA so I can't say for sure.

[The King]

Use H&R Block's free tax return software if Turbo Tax no longer offers the 1040 return with their free version. I used H&R Block's free version to check my return so I know they offer it.

[347Mike]

If it was paid into escrow it should be deductible. I use a friend/CPA so I can't say for sure.

Alright thanks. I will have to ask around more. I am just a cheap fuck and do not want to pay someone to do my taxes. Especially this year since I got a crap load of OT and I actually owe taxes.

[jdgregory84]

Use H&R Block's free tax return software if Turbo Tax no longer offers the 1040 return with their free version. I used H&R Block's free version to check my return so I know they offer it.

Just did mine on turbo tax and there is an added "return processing fee" that I don't remember seeing before. It was $29.95 to use it, then another $29.95 for that fee. I was like WTF? After dealing with all my shit though, I just paid it.

[SVT Lurch]

Alright thanks. I will have to ask around more. I am just a cheap fuck and do not want to pay someone to do my taxes. Especially this year since I got a crap load of OT and I actually owe taxes.

If it wasn't a family friend I wouldn't either (and I don't technically pay him a just get him a gift card to a restaurant).

[Trick Pony]

Don't forget that in a state like TX with no state income tax you can deduct sales tax as well.

[The King]

Just did mine on turbo tax and there is an added "return processing fee" that I don't remember seeing before. It was $29.95 to use it, then another $29.95 for that fee. I was like WTF? After dealing with all my shit though, I just paid it.

I was a cheapskate and didn't want to pay anything for preparing my return, because we wound up owing the IRS $38. I'm glad I checked my calculations with the H&R Block free version though because I was going to claim mortgage insurance premiums and I noted that their software wasn't figuring that amount in. So, I checked the Schedule A instructions again and one of the worksheets there showed our combined income was a little too high to claim that deduction.

[The King]

Don't forget that in a state like TX with no state income tax you can deduct sales tax as well.

Also make sure to claim the Making Work Pay credit again for 2010. That goes away in 2011.

[Broncojohnny]

Don't forget that in a state like TX with no state income tax you can deduct sales tax as well.

As well as the taxes you pay for buying a car, on top of the standard state sales tax deduction.