vicarz | (no subject)

(no subject)

Normally I'd rant about getting the government out of my life...maybe I'll save the inane stuff for facebook.

But I just checked the mail and got an audit-type notice from the IRS. They agreed with my computations for income and totals after taking out deductions, but disagreed with my tax computation. They think I owe $500 less.

I took their figures, same as my own, and returned to the tax table (which this year I can do due to not selling taxable stocks for a change).
My figures appear right. Their figures appear wrong, and unsupportable by any tax table or computation of which I am aware (their tax includes 5¢, seemingly not from a tax table).

I'm not going to argue but I think America just gave me a free $500.
I blame my liberal posts and Obama's socialist agenda?

Flat | Top-Level Comments Only

Keep the money and donate it to Obama's re-election campaign. Or Planned Parenthood.

Valiant ideas!

Are you using the qualified dividends worksheet to figure your tax?

Nope - perhaps that's the issue? I had dividends but didn't buy or sell stock so by my (wrong?) view I had to use tax tables and not any gain thingys. However, perhaps I missed a step where I had to compute dividends in a different way to get to a different tax?

Yes, if you got any 1099-DIVs you probably need to use the worksheet to figure your tax. See the instructions for Form 1040 Line 44, and the Qualified Dividends and Capital Gain Tax Worksheet.

Thanks and sorry this is a late thanks - inexplicably this email-comment notice got stuck in my spam folder :(

GOT IT!
Ok, I didn't have to file schedule D so I thought I was done, skipping right over the fact I had dividends taxed at a different rate if I used the worksheet as noted.

I re-ran my numbers and came within a dime of the Fed's tax computation.

I will contribute that dime to the cup of coffee I would treat you to fund - except you'll never collect most likely. So also thank you!

Edited 2012-03-29 22:23 (UTC)

Oh cool!

Flat | Top-Level Comments Only