Last Minute Tax Prep Answers - Esther Gulyas


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We welcome Astor believes the tax lady from EG tax tight Esther any why you are you ready to go this morning I am are you kidding I've already blocked two and a half miles did to tax returns. And I'm ready it's 6 o'clock in the morning I get I get up fairly well. You've accomplished more than everyone in this room already this morning hey I think via it may be the big question on everybody's mind because this year we heard so much. About taxes with the new tax law passed him Washington but. For this year's returns. Is that really affecting any. Now I don't know who would eat it doom here its old law. I'm seventeen so what you really have to do. Is when you're doing the seventeen returning needed to in all fairness say okay where are 83 and a half four months into into eighteen. This is what it's gonna look like next year because people are getting more take on day. And so you wanna find out well are you really getting that big of a tax cut or you get it tax cutter all because if you're getting more take home pay that means there's less withholding. If there is no tax cut for you next year you can all money so that's what we're trying to do is get people ready. So like let's say you're getting an extra hundred dollars month take home pay that's 12100 dollars. If you're withholding this year was 4000 and they're taking out 12100 that means 28 hundredths in withholding next year. And if you really didn't get much of a tax cut at all. You while money. And so that's what we're trying to use were kind of mixing up. Eighteen with a seventeen so people get ahead do you find it it's confusing for a lot of people as people think it's the they think now is attacks I can't do really isn't seventeen missiles off. I mean they can and and then on top of everything. In February they said no initially they said no energy credits no PMI deductions not tuition fees deductions. Then in February they said oh wait. We're gonna let you do it so than they made it wrecked and no energy credits so they made it retroactive so somebody that did their tax return in January and February. If they had their own software error that went to professional you couldn't of done it but then they said you can't seem to go Second Amendment the most tax returns. Then last week. They said four 2018. That initially that. In the your home equity credit line and deductible. Last week they said it is so I mean. You know it you're pulling your hair out it's just like crazy because. It's like the politicians don't know what they're doing or how are we spoke to be able to tell people you know so also we say just like hold on. TR EO our socks and will see as the year progresses bottom line may be for looking ahead to next year. That nice check you get for a tax return may be don't expect it could be a bigger dwindled via. Okay that could be kind of this way wanna make sure I know on our website EDT text that economy can go in and plug in your stuff. And they'll tell idea what you're tax liability of beef your projected tax liability using this year's income and expenses what you can expect. For next year that'll help you know. What's your gut thinking about how many people waited till the end to do it how much that I've never seen the week we have that we're extremely busy. Extremely busy I mean people that would come in and I think you know a lot of seniors kept thinking well I'll tell April. Because the weather's gonna break you know getting get this horrible weather this weekend. I mean you know they were talking yesterday about this ad disorder and everything people being seasonally affected. I am very seasonally affected I want some strength so I think people have been waiting for especially Western New York for the weather to break. And break Andy you think that's a big reason I guess we are well. I'm sorry I think that's a big reason for people to you know I don't think there's an ice it seniors don't want a continent and the ice from the stump you know. So. And then I think there's also the confusion about. What's houses houses on an effect me hearing. And and now normally we're looking at April 15 for the deadline April 17 it's gonna say it's a Sunday and is in no. Right. A. Okay been up and that's. So what we see people coming in. Well what's may be good number one question they have for Yule and gonna are just people already know darts off success. Now we saw your commercial with all the books piled up for two years. Soul can we you give us an idea what's gonna happen next year. And and I say welfare were first in this year and then I'll show you next year. You know based upon everything so that everybody walks out knowing what they're looking. You know some people are getting a gigantic tax cut if you're an upper income person or somebody with children. You know under the age of seventeen you're doing very well. But if you're somebody that. Maybe was close to itemize seeing are always itemized a little bit or had employee business expenses. You're getting a small tax cut no tax cut it in our analysts and money so that's the mix. That depending upon what you do professionally here help. Those of you who maybe haven't started maybe you are under way or maybe you're just looking forward till next year. Is asked third cooling is from EG tax Astor. You know these people haven't started yet does that surprise issue I mean were only days away. No it doesn't surprise me I mean. There are people that traditionally. It's magic pesticide kind the other day. That is somebody that comes in like today is Friday they'll say I'm an early this year it didn't come in on the seventeenth. You know they're just some people that are traditionally. Did death they like to file at the end. And that's especially if they go right SP bright especially if they now because who wants to write a check ahead bets per share ends there's. In a bit. There's yet you know they say there's 30% of the people that do stuff and that 70% and thirty I mean. That's a way people are and so there are people that traditionally violate and then there's some people that say. Our MIA ever late this year you know solve. Now a lot of people at this point they haven't done yet a lot of people are looking at extensions right to they need to know about that okay solve the the important thing to know is your taxes are due. Midnight the seventeenth. So a lot of people say. I'll file an extension pushes it up till October it doesn't Italy extends the time to mail in or send in the tax return. But on the seventeenth your taxes or do so a lot of that federal and state. So a lot of people that are looking for extensions. The date it's have to get the money into the government by the seventeenth now you file a form 48. 68 on the federal IT 370 on the state if you want to extend it now one of the good things you can use an extension as a tour golf. If you have to make it SE pier 401K. So in deduction because then extensive time to make contribution your pension plan until October the fifteenth. So like let's say somebody that has wants to put money into a pension plan self directed pension plan. And it made it to produce 20000 but they don't have a thing of the money for the Texas. But not for the pension plan if they file the extension that extent they have to pay their taxes but extend the time. To make that contribution to their pension plan so they get the deduction now even though they don't make that catch mission until later so it is a tool. Or where in studio this morning with Esther coolly as the tax lady from Ichi tax busy weekend it's the last weekend before you have to file your taxes which is Tuesday. I from the text line sentences can I deduct prepaid property taxes. Our cap so you had to make sure that you what you get a warrant there was a warrant issued from the city. So the governor made the proclamation. If the city followed suit and gave the warrant and you prepaid it. It would be up to the IRS for a final decision but most people like taken yes. We are live in studio with Esther goalie is for EG tax taking your questions this morning Nasser I'm sure doesn't surprise you that there are the questions that just. Roland especially moral only a few days away. Firm deadline day so while lets you rate to it over on our text line somebody saying if I contribute money to my IRA will I get a bigger refund. If fuel put money into a traditional IRA and you qualify this car you know with tax lie is nothing easy but here's the bottom line. Even a 25% bracket federal estate you put in 6500 pitcher age fifty year old older you'd saved 2000 an eighty dollars. I mean I just think 2000 an eighty dollars you know so yeah it's a wonderful thing to do. Especially if you have money available in your just transferring it from one account to another. Here's another is there a maximum education deduction for what I pay in college tuition for my child yes so the American opportunity tax credit is 2500 dollars State of New York also offers one. That's like 400 but you can also use it as an itemized deduction. On the state CF don't weigh it both ways so if you're. Kind of a heavy hitter on New York State he tried to better take he has an itemized deduction as opposed to a credit but it's around 2900 dollars between the two that's a lot of money. This person sounds like they might be a little bit like me bit of a procrastinators. To satisfy itemized in 2015 but didn't claim my property taxes. Can I go back in clean those deductions now yet you can amend actually 2014. Is closing. I'm April the fifteenth so you eat this is split last time to do your 2014 or amended 2014. Catcher during make sure you send it certified. Yeah you can amend that to laugh at three years they can't either you and you can't bother them after three years. Larry here's another. How long should I keep my taxes. How long is it is it is so solid here's the thing anytime you add something on your tax return that you think you got to prove I never throw away. But it didn't understand it the statute closes on. And a for 2014 on April the fifteenth. Pretty much error free to get rid of those tax returns make sure you stretch them so 34 years three years is a statute yes so. That first 314 with two on fifteen it for the fiftieth so. 2015. Self prior to that. If you don't have any stock basis that your proving our. Or rental property. It is just a little simple and party yeah I would worry about it you know as we enter into this final weekend of taxis in who do you find are the types of people who like to procrastinate the most. You know I mean it's all walks drop all swatches of life every you'll you'll find in our lobby. Then everybody I mean that from rich deplored to old and young. It's kind of like carnival atmosphere that's the irony here because everybody knows there under the gun is Esther heavy files in no. I got it ready okay here your leg got ready and I'm gonna write out the check on the seventeenth at midnight postmarked. Get it all set. It is tax time the final tax weekend before the deadline which is Tuesday the seventeenth. Esther goalie is from EG tax is here to take your questions let's score rafter back to the text line Simon Says Esther that their client. Had 32000 dollars in student loan debt canceled due to the death of her son she was the signer on the loan is that taxable. It's if it's her obligation is still going to be tax on but debt cancellation. Dude insolvency can be forgiven by doing formed 982. So. It is taxable on the left hand side but on the right hand side she may not be able to get out of the penalty. Ford debt cancellation by using form 92. I know this is something we talked about earlier bugged out for people just tuning in are still questions ruling him. About the new tax on how it impacts your refund somebody taxing and I got a big refund for 2017. And then 2016. Does that have anything to do with the new tax why doesn't sound effect you know each year is. Is independent of one another. But a lot of changes are happening in eighteen. Of which we are now in but those returns aren't due until next April the fifteenth. So it's next year that would turn to IOC Beasley went as planned now for next year. But next year cause actual tax return type dude too late for the fifteenth of nineteen okay. Parents with kids you wanted to get into this idea I mean tax credit and child tax credit has doubled in eighteen and up to up 400000 dollars worth of income merit by drug return that's remarkable. Because it phases out as a thousand dollars of face is not like at about a 1101000. So parents I hate to see if text that is to have children but added it is don't think kid is seventeen it's like remarkable. The the other thing is many times parents have kids who have been working and they don't know what to do their W two forest so they file when they don't does tech trader at. Don't skits to actually Jersey got money coming back and you can file of the fourteenth fourteen hit a chilly for the fiftieth here. So all I mean I did have a parent the other day she he says I. My kid up only made 4000 dollars tonight file the return he had a 250 dollar refund coming. So I mean today you know that's a lot of money yeah yeah I just a lot of ways. My kids both Arabs you know part time workers more full time students and they just file their returns and they get back so if even not filing your kids returns take a look at them because. They kind of money coming was generally responsible for that particular prepare. White kids have kids are responsible and a parent there on the they need illegally you know it DI arrest we'll keep your money seed they'll say well I'm getting refunds are still penalty. But it is after three years that they keep your money you can't get it back I I like. An idea though for parents everywhere you know a failure Cuba some planning on doing is its tank you ask you file the return. Here's a two under fifty dollars come and then you just waited in front of their fans in my case that's true then it's like your take another room and board Brian bathroom. That's right. I here's another one what year did property tax relief checks start do you need to claim them on your. Property tax relief so it is she trying to find your check yet property tax. It was like in sixteen and seventeen. And you don't claim them what you do is you reduce. The deductibility. Of the property taxes yard taking on your schedule a by the property tax Ridley if you received in seventy. It's all so confusing to so many people as this why you recommend just having somebody. Check your taxes over instead of doing a lot of. Yeah I'm in. And tiger appealed and file she had earned income credits coming she hadn't filed at ten years. She lost like a 100000 dollars in refunds because she didn't file so. Make sure you file your return if you are if you're at it's nice to have a double checked really because it's the money your saving as jurors. And if any question DG Texas about the. Org goes to yourself first is there one thing in particular that you see maybe when you double checked them. That they miss yeah I mean there's like prince's people claim their New York State refund and with all the credits and New York State. Many of us in the many of us three fronts aren't taxable and all they don't need to going your federal return. People include the W twos for their kids on their own W twos. That's wrong I mean there's so many very people don't know. You know ignorance is not bless it there were a lot of changes during the tax season uncle who may have filed early. You missed out on a son to earth and Democrat I mean India energy credit from. Wasn't allowable when you started filing your returns but they're now allowable retroactive. Tuition and fees deduction now lab MIP that you couldn't get it you're getting a second statement from your mortgage company that's because the MIP is now deductible even not to be any of the taxis and that wasn't. So you can amend. Your return you can't. You're running around like crazy over the next few days say at this time next week he's going to be a sitting back concert somewhere in Florida. Pinata a lot of common umbrella here perhaps I ultimately. Our pit stop Esther we always appreciate your help and don't forget tomorrow and a radio show will get my tips OK at BS 3 o'clock. Every year I don't TV and it's Esther goalie as the tax lady from EG ten.