Taxes Are Done !

[Jluke]

K-1’s are notorious for being issued late. And overly complicated for me.

I had an investment that issued K-1 that impacted my taxes. I sold it the second year (and hired someone to do my taxes) just so I didn’t have to deal with the K-1

[disneysteve]

K-1’s are notorious for being issued late. And overly complicated for me.

I had an investment that issued K-1 that impacted my taxes. I sold it the second year (and hired someone to do my taxes) just so I didn’t have to deal with the K-1

I looked up why K-1 forms take so long. They are kind of a second generation tax form. They can't be issued until the company issuing them has completed their own tax return. That's where the delay comes in. If the issuing company doesn't file their taxes until April (or later with an extension), the K-1 forms won't be issued until sometime after that.

[LivingAlmostLarge]

k1 never come until september. That being said I am so frustrated. In 2022 and 2023 I hired someone to do my taxes. I do it myself and I can. But it was suggested by a lawyer I don't do my own tax return and I help people do theirs! Anyway we filed 10/2023 and 10/2024 with extensions. Long story but my life has been crazy for about 2 years (as anyone who reads my blog knows).

So I paid $2k to have my taxes done in 2022. I was at a funeral when it finished so I let DH sign and not worry about. I come back 2 weeks later and I realize the CPA has made 2 blatent mistakes. I talk with him and he says he'll do an amendement. So I feel obligated to file 2023 while waiting for my amendment. Now i found another mistake last night () i am literally cursing the guy that it causes my 2023 to need to be amended. I'm so frustrated. I don't want to file the amendement myself, and I can. Because I want the liability on someone else. And now with these mistakes I am worried.

things he missed

1. solo 401k deduction (i uploaded the document)
2. Taxed my backdoor roth ira (I uploaded 5498 and IRA statement showing the $0 balance).
3. Fat Fingered and mistyped my capital losses so my carryforward in 2022 was off by $10000 ($24,313 instead of $34,313).

Everything in my favor. At this point I'm not sure what to do. I hired him for 2024 because I was still waiting on my amendement for 2022. But I'm between a rock and hard place.

[kork13]

I finally took the time (~4-5hrs, until nearly 1am) to get my taxes done ... Ended up owing $510 in federal taxes, which I call a win (anything between $1-$999 owed qualifies in my book).

I do still need to get my kids' returns done (due to UTMA dividends & Alaska PFDs pushing them above the kiddie tax limit) ... But those returns are relatively straightforward once I get the first one done. That first one just takes a while, because I can't use the same software I use for DW & I. So I just use the IRS free-file fillable forms, dig through the 1040 instructions, and churn them out. In the end, I normally only need to pay a couple hundred dollars for each of them.

[Fishindude77]

Got ours back from the CPA yesterday approx. $11,000 in state and fed taxes to pay.
Also got hit with our home property taxes for (6) different pieces of real estate, approx. $8,900 due for all of that.

Ouch, expensive week !

[disneysteve]

We just got ours back. I have to review it in more detail but it looks like we're getting $3,900 back from Fed and owe $330 for state. I had paid a $1,600 estimate in January which turns out was unnecessary but there was no way to know that at the time. At least I didn't lend them the money for too long.

[ua_guy]

Ours came in last week. We paid on Friday, including the first half of our real estate property taxes. For the last several years we've paid both our federal and county taxes online, and it feels fake...just numbers on a screen. Bye bye, money! I'm glad we changed course this year and decided to have a CPA do our taxes instead. Theirs came in $2k less, and we didn't know how to report a couple of events this year for some consulting services DH did for a startup. This is the first year we got dinged for under-withholding. We'll be paying extra quarterly from now on.

[disneysteve]

This is the first year we got dinged for under-withholding.

That's exactly why I paid the estimate . Since it was the first year of retirement, everything was different. Most of our income didn't come from a W-2 job so no taxes were withheld on any of that money. I had a tax planning meeting with our CPA in mid November I think and came up with the amount to send in to be completely safe. As it all worked out, that payment wasn't needed but I'm glad I did it anyway.

[myrdale]

For 2024 I overpaid the Federal government by $40 while I owed the state government $130. So a net obligation of $90. It's not $0, but I was tickled that I managed to get sub $100 this year.

[kork13]

I do still need to get my kids' returns done (due to UTMA dividends & Alaska PFDs pushing them above the kiddie tax limit) ... But those returns are relatively straightforward once I get the first one done. That first one just takes a while, because I can't use the same software I use for DW & I. So I just use the IRS free-file fillable forms, dig through the 1040 instructions, and churn them out. In the end, I normally only need to pay a couple hundred dollars for each of them.

I over-estimated ... This year will end up only owing $41 apeice for each of our 3 kids -- not enough variation between their UTMA earnings to even have a difference in their tax due. I did our oldest son's return tonight, and I'll take care of the other two over the next couple days, which will be alot easier now that the first one is done. It'll be good to finally be past this annual speedbump .... there's way too much other junk crowding my plate with work, family, and otherwise.

[disneysteve]

I mailed off the e-file forms, our NJ state tax check, and my SEP-IRA contribution check this morning so we are done. We just have to wait on the Federal refund.

[LivingAlmostLarge]

I think roughly i'll land with a $5k refund. I won't have time until end of april at the earliest to know. i have to much to work on now.

[kork13]

One of the RELPs I'm in recently sent an email recommending that we file for an extension, because their K-1s are going to be delayed. Not a factor for me right now, because I didn't get any income from it in 2024 .... But that may be a sign of years to come.

I just got the 2024 K-1 packet from one of the my RELPs (not the one that said K-1's would be delayed), and I was surprised to receive the K-1 because I only bought into the RELP on ~20 Dec & didn't receive any distributions from during 2024. But the K-1 says I actually have a $53 net loss from rent income (not sure how that's possible). I already filed my taxes (again, because K-1s were not expected) ... now I'm just trying to decide if I need to/should try to file an amendment, or just ignore it & let go of the $53 loss. In any case, when next year comes around, I'll have to think long & hard about if I want to continue doing my own taxes (as I've done since college), or if I need to find a tax preparer for myself....

k1 never come until september. That being said I am so frustrated. In 2022 and 2023 I hired someone to do my taxes. I do it myself and I can. But it was suggested by a lawyer I don't do my own tax return and I help people do theirs! Anyway we filed 10/2023 and 10/2024 with extensions. Long story but my life has been crazy for about 2 years (as anyone who reads my blog knows).

LAL --- a question for you, in general terms ... Would you say that it's better to file on-time then file an amendment with K-1 information later on? Or better to just file for an extension & delay filing entirely until the K-1s come in?

I've never done an extension before, but my understanding is that if there's a chance of owing, I need to make an estimated payment before 15 Apr to prevent penalties... The complexity of guessing & likelihood of missing the mark is always why I've avoided extensions (even while deployed at tax time) .... although my father ALWAYS does an extension, for whatever reason.

[LivingAlmostLarge]

I just got the 2024 K-1 packet from one of the my RELPs (not the one that said K-1's would be delayed), and I was surprised to receive the K-1 because I only bought into the RELP on ~20 Dec & didn't receive any distributions from during 2024. But the K-1 says I actually have a $53 net loss from rent income (not sure how that's possible). I already filed my taxes (again, because K-1s were not expected) ... now I'm just trying to decide if I need to/should try to file an amendment, or just ignore it & let go of the $53 loss. In any case, when next year comes around, I'll have to think long & hard about if I want to continue doing my own taxes (as I've done since college), or if I need to find a tax preparer for myself....



LAL --- a question for you, in general terms ... Would you say that it's better to file on-time then file an amendment with K-1 information later on? Or better to just file for an extension & delay filing entirely until the K-1s come in?

I've never done an extension before, but my understanding is that if there's a chance of owing, I need to make an estimated payment before 15 Apr to prevent penalties... The complexity of guessing & likelihood of missing the mark is always why I've avoided extensions (even while deployed at tax time) .... although my father ALWAYS does an extension, for whatever reason.

You should wait for a bit to file and amendment. And absolutely do not file by the deadline if you know you get a k1. And k1 often changes. I'd file an extension and do an expectation.

[jenn_jenn]

You all are a timely on top of it bunch so much that I had to scroll to the bottom of the page to find this thread! Unlike us, who procrastinated and just finished our taxes last night.

The marriage tax penalty is real for us so owing is not new or unsurprising. We are both W2 workers, which makes up the vast majority of our income, and claim zero deductions. We still owed $18k in federal taxes, $400 to one state, and $7k refund from the other. It was only a $200 underpayment penalty so I’m not beating myself up for it.

It took me about 9 hours total on TurboTax bc one particular form (which I think was really a software issue bc things weren’t summing correctly) was giving me a lot of trouble and had me practically in tears trying to figure out it out. I’d love to hire a CPA to do our taxes but stories like LAL scare me!