Personal IRS Problem

I thought it was ideal to not get (a lot of ) money back (also not to owe)

Answer:

Many people consider a tax refund a great way to save money or a nice way to get a bonus at the beginning of the year. But in reality you are giving the government extra money each month interest free when you receive a large tax refund. If you adjust to get a smaller refund you get the money throughout the year, and you can use it to do the things you want to now instead of waiting until the end of the year. If you do have a large refund this year, create a spending plan for your refund so that you can use the money effectively.

is this wrong?

ThoughtCouture wrote: Bribby wrote: ThoughtCouture wrote: oh wait.  you filed a return yourself, right? Yes I did, with the W2 I received from work and I got back what taxes they took out, so they were saying like there was something wrong because I didn't document all of my income, but I didn't know about that money so that's why it wasn't included, they received info I had more income and then that's why they sent the notice.   oh ok so this is assoicated with YOUR return.  so yeah...like mzmee said, see if she still has the acct statement (with the stock purhase and sell...she may need to rerequest it) because there is a chance they are assessing tax on the full $14K when you only need to pay on the gain.   you can then calculate for yourself to see if the amount they say you owe is more than what you actually owe.   also, look at the statement form the irs to see if they assesed penalties and interest...

Okay thank you so much. Yes it has to do with my return it is all under my name. I see they did put $39 interest. But okay this is what the Assessor was saying on the phone get the info because the transaction is incomplete. File the schedule D and return the form saying I disagree. But i'll only do this if the amount comes out less? But it should from what you're saying.

Bribby wrote: Ohh ok I understand you now. So, how can I get this information? I just tell my mom to ask the institution she had the stocks at for proof of purchases to be sent to us?

mzmee wrote: Bribby wrote: SamoneLenior wrote: wait, she must have forged your signature I have accounts in my name but I had to sign so they could be opened She said it was so "college thing" that she opened when I was younger and cashed out when I turned 18 but this was in June 2011, I didn't turn 18 until October 2011 Wow, that sucks.  Just to help you understand this a little better. She sold the stock when you were technically a minor because she is able to have full control over the account.  BUT for tax purposes, they put the liability on you because as of December 31, 2011 you were no longer a minor. See how they do this ish?? Why didn't she just transfer the stock to your name solely upon you no longer being a minor???

I have no idea I didn't even know these accounts and stocks existed until I got the letter

 

 

There is the Earned Income Credit.

 

It works something like this, if you file as Head of House Hold with one dependent child and earned under around $35,000 from wages you can get back a maximum of about $3,043 refund from the government (even if you paid no net income taxes). This is a refundable credit.

 

You do not qualify for the Earned Income Credit if someone else can claim you as a dependent or if you got more the $3,200 in unearned income for the year. Unearned income can be interest income among other things.

 

 

There is the Child Tax Credit

 

Basically you get $1,000 back form the government for each child that is your dependent 13 years of age or younger. You may qualify for this credit even if you paid no net income taxes. This is a refundable credit.

 

 

There is the Child and Dependent Care Credit

 

Basically you get from around $3,000 (one dependent) to $6,000 (two or more dependents) deducted from you tax liability for the dependents that you provide care for so that you can work.

 

 

 

There are other rules and requirements that go along with the Earned Income Credit , the Child Tax Credit and the Child and Dependent Care Credit.  You can check out the IRS website.

 

 

Edited by bindy - Jan 03 2013 at 2:25pm