OK Tax "Refund" question

[TopDaugIn2000]

I heard today that the big whopping $45 we got back from good ole Henry isn't simply to be treated as a "refund", but that we now have to claim it in some way on our state taxes. Also heard that "they" will be watching the returns and might flag those that did not claim it, which could possibly trigger an audit. The lady that does my boss' taxes said they are having to amend many of the early folk's returns now, cause this was just put into effect a few days ago.

What's the scoop?

Also, since I don't have any deductions other than "standard", should I be worried about a possible audit because of this??? (I e-filed last week and already have my return)

[Mjcpr]

Great! I forgot all about that damn thing. :mad:

[yermom]

yeah, me too

[TopDaugIn2000]

yeah, so did I....it was such a BIG REFUND and everything.

my boss said that was the first thing his tax lady asked him "did you get the $90 refund" (he's married). and then told him the story about how we now have to claim it and those that didn't are having to amend.

[Boomer.....]

My tax lady didn't say anything about it. If anything comes of it, I will blame her.;)

[Mjcpr]

Any of our accountants going to confirm that this is supposed to be reported?

[RacerX]

Too late for me.

Screw 'em.

[Sooner_Bob]

I paid NM state income tax last year so I didn't get it . . .

[RacerX]

I can't imagine, well yes I can, that the state ...oh nevermind.

[Taxman71]

The tax refund "Oklahoma Taxpayer Relief" payment is taxable. However, the state of Oklahoma is not sending out any 1099-G reporting the payments. Thus, it will be difficult for the IRS computerized audit systems to pick up omissions. But, yes, you should report this income to be in compliance.

[OklahomaTrombone]

I never got mine.

[RacerX]

the state of Oklahoma is not sending out any 1099-G reporting the payments.

Dorks.

[mdklatt]

I'll just deduct the $45 for car maintenance since they decided they didn't need that money to fix the damn roads. :mad:

[Taxman71]

Dorks.

Obviously, Oklahoma politicians do not want the refund to be taxable. However, since Oklahoma piggy-backs Federal taxable income, if the IRS says it is taxable for Federal purposes, it is also taxable in Oklahoma (unless a special exemption is passed into law). I expect you will hear alot about this in the media in coming weeks and some state politician will likely try to earn some brownie points since the session starts pretty soon.

However, the 6% Oklahoma tax rate is no big deal compared to the Federal 25 - 35%.

[Mjcpr]

The 1099 I received for last year's refund was overstated by more than $45, so I'm not going to worry about it.

[TopDaugIn2000]

but if we've already done our taxes do we need to amend them or something? Or just let it go and play dumb should anything come of it???

[Mjcpr]

but if we've already done our taxes do we need to amend them or something? Or just let it go and play dumb should anything come of it???

Technically, I'm thinking you're supposed to ammend but I don't know that anything would ever come of it. The actual refund amount you received from the state isn't included anywhere on your state return that I know of. It's just figured into you AGI that is carried over from your federal return.

I think.

[Taxman71]

but if we've already done our taxes do we need to amend them or something? Or just let it go and play dumb should anything come of it???

That is a judgment call. If the IRS/OTC notice the ommission, you will have to pay a little penalty and interest in addition to the tax. If you don't get assessed by April 17, 2009, you should be in the clear.

If you decide to amend, I would wait until the filing deadline (April 17 this year) until filing just in case a ruling is issued between now and then that may change this result.

[RacerX]

If you decide to amend, I would wait until the filing deadline (April 17 this year) until filing just in case a ruling is issued between now and then that may change this result.

That's what I'll do.

[TopDaugIn2000]

That is a judgment call. If the IRS/OTC notice the ommission, you will have to pay a little penalty and interest in addition to the tax. If you don't get assessed by April 17, 2009, you should be in the clear.

If you decide to amend, I would wait until the filing deadline (April 17 this year) until filing just in case a ruling is issued between now and then that may change this result.


would the "little penalty & interest" be more than filing an amended return? I had to pay the $24.99 or whatever to file the FIRST time. Would I have to pay again? would it be worth it?

and since I have no house, no kids, no loans, etc. I just take the standard deductions and move along. It's pretty straight forward.

[Mjcpr]

would the "little penalty & interest" be more than filing an amended return? I had to pay the $24.99 or whatever to file the FIRST time. Would I have to pay again? would it be worth it?

and since I have no house, no kids, no loans, etc. I just take the standard deductions and move along. It's pretty straight forward.
If you do it, just do it on paper (download the forms) and mail it in. I had to do one last year, it was pretty easy.

[TopDaugIn2000]

ok. now what category does this go under????

[mdklatt]

since I have...no kids

That you know of....

[Mjcpr]

On the 1040 it's line 10.

It's called "Taxable refunds, credits, or offsets of state and local income taxes".

[TopDaugIn2000]

great. thanks. I'll fill it out, print it off, and wait 'til closer to the deadline.

[Mjcpr]

And write the check. :D

[TopDaugIn2000]

heh, yeah.

[Sooner_Bob]

would the "little penalty & interest" be more than filing an amended return? I had to pay the $24.99 or whatever to file the FIRST time. Would I have to pay again? would it be worth it?

and since I have no house, no kids, no loans, etc. I just take the standard deductions and move along. It's pretty straight forward.


$24.99 to file your taxes?

It was only $9.95 on taxslayer.com . . . and my state return was free.

[TopDaugIn2000]

I did it on TurboTax last year and it was free, but made too much this year. They were gonna charge $20 for Fed and $25 for state. H&R block online charged 0 for Fed and $25 for state. Went with them.

[Hamhock]

It is taxable. It goes on line 21 of the 1040.

If you itemized last year, then you used that $90 to create a schedule A deduction, so it is definitely taxable this year.

If you didn't itemize last year, it is still taxable and you are getting a screwjob.

[OhU1]

I would have forgot if not for the article in the Oklahoman on Saturday which is when I did my taxes.

I heard Republicans wanted to make the refund a tax credit to apply toward this year rather than a refund which is taxable and cost many thousands to print and process the checks.

[mdklatt]

I heard Republicans wanted to make the refund a tax credit to apply toward this year rather than a refund which is taxable and cost many thousands to print and process the checks.

Well that just makes too much damn sense for the Oklahoma state government. Why are we getting refunds in the first place? Fix the damn roads! And why did everybody get the same amount? We don't pay the same amount of income tax.

How much good is $45 going to do anyway? An extra 2-3 cartons of cigarettes or cases of beer isn't going to do the typical Oklahoman much good. If they bought 45 lottery tickets on the other hand....

[Mjcpr]

Well that just make too much damn sense for the Oklahoma state government. Why are we getting refunds in the first place? Fix the damn roads! And why did everybody get the same amount? We don't pay the same amount of income tax.

How much good is $45 going to do anyway? An extra 2-3 cartons of cigarettes or cases of beer isn't going to do the typical Oklahoman much good. If they bought 45 lottery tickets on the other hand....

http://www.soonerfans.com/forums/showpost.php?p=1077912&postcount=12

[Taxman71]

How much good is $45 going to do anyway? An extra 2-3 cartons of cigarettes or cases of beer isn't going to do the typical Oklahoman much good. If they bought 45 lottery tickets on the other hand....

So every political candidate can claim credit for the refund (regardless of amount). Elderly taxpayers (who vote at a high rate) love ANY tax refund regardless of how much, etc. Very poor taxpayers are the same way, but don't vote as much. Either way, the refund merely bought approval ratings, votes, etc.

[mdklatt]

Either way, the refund merely bought approval ratings, votes, etc.

*********s and *******s, in other words.

[Hamhock]

I went to a luncheon today featuring an IRS Revenue Office.

In between hands of solitaire on my phone, I heard her say the rebate is fully taxable to everyone who received it. Also, if you have filed a 1040EZ or 1040A (short form) in the past, you will not be able to this year, as only the 1040 has the line for the rebate.

Then she said, and I quote "I have no idea how we're going to enforce this, except by simply asking you to do the right thing".

Okay hillbillies, now's your chance to do the right thing even though doing the wrong thing is without consequence (from the IRS anyway) and a chance to stick it to the IRS.

[TopDaugIn2000]

So if I've already done the wrong thing (without knowing I was doing the wrong thing), I should be fine...right?

[TopDaugIn2000]

and what are we talking about here....like $5??????

[1stTimeCaller]

I'm still trying to figure out why I never got that $45. I didn't live in the State of Oklahoma in 2004 or 2005 but I sure paid some income tax there both years.

[Hamhock]

So if I've already done the wrong thing (without knowing I was doing the wrong thing), I should be fine...right?


I'm pretty sure that I've subscribed to some sort of code of rules or ethics somewhere that prevent me from telling you yes.

[mdklatt]

I went to a luncheon today featuring an IRS Revenue Office.

In between hands of solitaire on my phone, I heard her say the rebate is fully taxable to everyone who received it. Also, if you have filed a 1040EZ or 1040A (short form) in the past, you will not be able to this year, as only the 1040 has the line for the rebate.


I used a state-approved e-file service. This service filed the equivalent of a 1040EZ for me. My returns have been "Accepted" by both the IRS and the OTC. If the government can't even get its **** together, how are we supposed to?

[Hamhock]

and what are we talking about here....like $5??????


Tell that to your cell mate. :texan:

[Hamhock]

I used a state-approved e-file service. This service filed the equivalent of a 1040EZ for me. My returns have been "Accepted" by both the IRS and the OTC. If the government can't even get its **** together, how are we supposed to?


Just because it has been "accepted" doesn't mean that they agree you have included all of your taxable income. I bet you didn't report any of your cash income from chicken sales.

[soonerbrat]

i got $90

and i filed online with turbotax and i don't know if it figured it in or not

[1stTimeCaller]

what was the criteria to get that $45 refund? I pay income taxes in OK every year although I don't live there anymore.

I'm thinking Brad screwed me.

[mdklatt]

Just because it has been "accepted" doesn't mean that they agree you have included all of your taxable income.

If everybody in Oklahoma was supposed to do a 1040 this year, how come the IRS accepted my 1040EZ? How hard is that to check?

[1stTimeCaller]

If everybody in Oklahoma was supposed to do a 1040 this year, how come the IRS accepted my 1040EZ? How hard is that to check?

Because folks like me that file the 1040A and pay OK income tax and yet didn't get the $45 refund.

[mdklatt]

i got $90


How did you swing that? I thought every tax payer got $45.

[soonerbrat]

How did you swing that? I thought every tax payer got $45.


i don't know. I didn't even know we were getting a "refund" I just got a check in the mail for $90 one day and i was like "neato" and cashed it.

[RacerX]

brat must be married.

[Mjcpr]

i got $90

and i filed online with turbotax and i don't know if it figured it in or not

How? Unless you are/filed married.

You would've had to have told it.......when it was asking for your income sources.

[soonerbrat]

brat must be married.



no, brat is not married.

brat is quite single.

[mdklatt]

i don't know. I didn't even know we were getting a "refund" I just got a check in the mail for $90 one day and i was like "neato" and cashed it.

Did you file as Married Filing Jointly in 2004? If so, all of that money isn't yours.

[soonerbrat]

Did you file as Married Filing Jointly in 2004? If so, all of that money isn't yours.


nope. i have been filing "head of household" since 1999.

[TopDaugIn2000]

If the government can't even get its **** together, how are we supposed to?

WORD

[Hamhock]

If everybody in Oklahoma was supposed to do a 1040 this year, how come the IRS accepted my 1040EZ? How hard is that to check?


Plenty of people who didn't get the refund or didn't even live here in 2004 can use the EZ.

But...the IRS and the OTC coordinating that type of thing?? ha...that's a good one..

[1stTimeCaller]

I'm guessing that the criteria to get that $45 was to live in the State and pay income taxes?

[Hamhock]

I'm guessing that the criteria to get that $45 was to live in the State and pay income taxes?


Not sure..probably just live in the state and file a return. The idea that a citizen should actually have to pay taxes before said taxes are refunded to him is too novel a concept for most. See the Earned Income Credit.

[Mjcpr]

I'm guessing that the criteria to get that $45 was to live in the State and pay income taxes?


Those who filed as an individual or married filing separately in 2004 will receive their check in the amount of $45. Those who filed as a surviving spouse, head of household or married filing joinly will receive $90.

The only groups that will not receive a check are people who did not file in 2004, prison inmates, and those who claimed zero personal exemptions.

Knowing what I know about you.....I'm guessing you were an inmate.

:D

[1stTimeCaller]

:D Looks like Brad cheated me out of $45.

[Mjcpr]

:D Looks like Brad cheated me out of $45.

Did you claim 0 personal exemptions?

[mdklatt]

Did you claim 0 personal exemptions?

Is there a reason to claim 0 personal exemptions?

[1stTimeCaller]

I have no idea what a personal exemption is. I'm not a dependant nor do I have any if that's what we're talking about.

[mdklatt]

I have no idea what a personal exemption is. I'm not a dependant nor do I have any if that's what we're talking about.

You can always claim yourself as an exemption unless you're claimed as a dependent by somebody else, and each exemption you claim gets deducted from your taxable income. I suppose you can claim 0 exemptions if you want, but I don't know why anybody would. Of course, you have to specify how much of your refund you actually want (all of it, bitches!) so maybe a significant number of people want to pay extra.

[1stTimeCaller]

The personal exemptions are, like many other tax benefits, phased out for taxpayers with substantial taxable incomes. The phase-out begins at $209,250 in 2003 indexed for inflation for persons filing joint returns and a lower amount for all other taxpayers (for 2004, the phase out begins at $214,050).

I'm not able to. :(

[1stTimeCaller]

I don't think I have ever claimed myself as an exemption. According to the thing I quoted the personal exemption is about $3k. So I guess I could take the standard deduction and the exemption? Hell if I know.

[mdklatt]

I'm not able to. :(

Damn personal exemption phase-outs.

[1stTimeCaller]

:D I wish

[mdklatt]

I don't think I have ever claimed myself as an exemption. According to the thing I quoted the personal exemption is about $3k. So I guess I could take the standard deduction and the exemption? Hell if I know.

Yes, you can take both, which lowers your taxable income by an extra $3200. Man, you've really been getting bent over. Do you usually end up owing money?

[Taxman71]

Exemptions and deductions are apples and oranges. Personal "exemptions" (you, your spouse if filing joint, and any dependents) are $3,200 each. You always take yourself as 1 exemption unless someone else, such as a parent, claims you as a dependent on their return.

Your "Deductions" equal the greater of the standard deduction for your filing status or your itemized deductions.

[1stTimeCaller]

I always get money back. I'll check but I'm sure my accountant puts me down as an exemption. We're talking $640 roughly here. Hell, I don't even know what tax bracket I'm in.

[TopDaugIn2000]

The more I read this thread, the more and more confused I get.

[1stTimeCaller]

The more I read this thread, the more and more confused I get.

No doubt. WTF is wrong with saying if you make this much you pay this percentage? No deductions, no exemptions. Below seems simple enough.

If Taxpayer's Income Is... Then Estimated Taxes Are...
Between But Not Over Base Tax + Rate Of the Amount Over
$0 - $7,300 $0 10% $0
$7,300 -$29,700 $730.00 15% $7,300
$29,700 -$71,950 $4,090.00 25% $29,700
$71,950 -$150,150 $14,652.50 28% $71,950
$150,150 -$326,450 $36,548.50 33% $150,150
$326,450 - - - - - $94,727.50 35% $326,450

[mdklatt]

WTF is wrong with saying if you make this much you pay this percentage? No deductions, no exemptions.

But then how are politicians supposed to buy votes?

[1stTimeCaller]

The Old Fashioned way?

;)

[Hatfield]

uhmmm....thread reported...TO THE IRS!!!!! bwaaaaahaaaaa


i got nutin