Did My Taxes Today, Start to Finish Four Times

[RSteve]

My taxes should not be all that complicated. No RMA in 2020. Some interest, annuity, and dividend income, and social security. I wound up using Turbo Tax and Tax Act, as a checker . After I completed Turbo Tax, my refund looked too large; ridiculously large, and I couldn't figure out why. I looked over my 2019 taxes done on Turbo Tax and couldn't catch the problem. I called a friend who is a CPA with the MN Department of Revenue. "Steve, do you remember a couple of years ago, when you got hit with a penalty and back taxes for 2015 because Turbo Tax software had a major gaff, when it didn't include and/or forward Social Security on your MN taxes?"
After hours of searching, that's what it was. As it does with all other prior income sources, it didn't bring forward my Social Security for the year. I showed less income with virtually the same deductions of the prior year.

So, I cleared the program started over from scratch, searching for the glitch, and found it. On an early page of their forms, Turbo Tax now requires you to check a graphic if you have Social Security or Railroad Retirement, etc. I didn't see the graphic on a page with 16 others, just assuming that Turbo Tax would bring the item forward.

When it got to my state taxes, I was already in a less than favorable mood. The tasks that Turbo Tax used to do automatically with a simple Q & A, now is a complicated jumbled mess. The Q & A are gone, replaced by a facsimile of the paper copy you'd get in the mail. Only the facsimile is very hard to see unless you have perfect uncorrected vision and no cataracts.

Thank goodness, it's done. Hopefully, my medical expenses will diminish, and I'll make my charitables directly from my IRA account. Standard deduction and short form would be such a relief. 40 years ago when I was in North Dakota, state taxes were simple. I don't know if they're remained that way. Depending on your income category, you paid a flat percentage of your federal adjusted gross income. The tax form was the size of a postcard.

 

[Ranger107]

I was told Minnesota devised a new simple 2 line tax form. Line 1, how much did you earn this year? Line 2, enter the amount from line 1 and send it in. LOL

 

[Carlos]

Easy peasy! Save everything. Stuff it in an envelope. Give to the sister-in-law CPA. When she calls with a few questions, answer them. Get the paperwork back. Sign and mail. Done!

 

[RSteve]

Wow, filed April 8th and today I got refunds.

 

[Timbo]

I agree with Carlos. In Australia, you can do your returns yourself or go with an accountant. I used to always do my tax return myself but often ended up owing the government more money which is odd for a salaried empoyee in Aus. So I switched to an accountant, been getting a tax return ever since and for a claimable 150 bucks a year, I'm happy to pay her as the refund is much highr than that. Plus doing my tax via her takes me half an hour, it used to take me at least 3 to 5 hours when doing it myself.

 

[RSteve]

Thank goodness, taxes are done. Hopefully, my medical expenses will diminish, and I'll make my charitables directly from my IRA account.

That was wishful thinking. So far for 2021, C7 surgery and rehab and tooth extraction, bone graft, and preparation for implant. I'll be itemizing again.

 

[RSteve]

Taxes on the schedule for tomorrow.

 

[Blackhorse]

I have people for that. Well…my wife.

 

[RSteve]

Taxes on the schedule for tomorrow.

It took all day, but I am done. I've used TurboTax for many years. This year it was a mess.

 

[Blackhorse]

Just turned ours in today. Whew.

 

[Ranger107]

Did mine last week. Discovered at the last minute I had not received a 1099 from SS. Tried to call SS 3 times. Last time I waited them out and it took over 2 hours to finally get a person on the phone.

 

[RSteve]

Discovered at the last minute I had not received a 1099 from SS. Tried to call SS 3 times. Last time I waited them out and it took over 2 hours to finally get a person on the phone.

I had an issue with my property tax statement and called MN Department of Revenue. All I kept getting for 15 minutes was a repeat of the automated menuing and boilerplate Q & A. Finally, after recycling the menu over and over, I got a recorded message with a phone number to call to actually talk with someone. Very frustrating!

 

[RSteve]

I was told Minnesota devised a new simple 2 line tax form. Line 1, how much did you earn this year? Line 2, enter the amount from line 1 and send it in. LOL

MN is an exceptionally high tax state. State income tax, property tax, sales tax, excise tax on many items, high auto license fees, and various cities and counties have additional sales taxes. Any number of very wealthy people maintain an official residence in South Dakota and a "vacation" residence in MN. According to the law, they must reside in S. Dakota for 6+months annually, but there's no one actually keeping track. S. Dakota is one of seven states that do not collect a personal income tax.

 

[RSteve]

I honestly find this troubling. The C.E.O. of a major health insurer in MN, last year, was paid 63.3 million dollars. Because of how the pay was structured, his tax bite will be very low. In terms of sales tax, he will pay a lesser percentage of his income than a person making basic minimum wages.