Viewer - Ask tax professionals: How do I file my 2012 returns?

Ask tax professionals: How do I file my ...

Thursday February 21, 2013

12:02

Mandy Hofmockel:

Hi everyone, we're about ready to get started today, taking your tax preparation questions. Please feel free to submit your questions in the comment box below.

Thursday February 21, 2013 12:02 Mandy Hofmockel

12:03

Mandy Hofmockel:

We've got H&R Block tax professionals Jose Cruz and Ken Collins here answer any questions you might have about your 2012 returns.

Thursday February 21, 2013 12:03 Mandy Hofmockel

12:03

Ken Collins:

Hi. My name is Ken Collins and I am a Tax Professional at the H&R Block office in Westfield on East Main St.

Thursday February 21, 2013 12:03 Ken Collins

12:03

Jose Cruz:

Good Afternoon. I am Jose Cruz a Tax Pro and Office Manager with H&R Block. My office is located at 448 N. Main Street in East Longmeadow.

Thursday February 21, 2013 12:03 Jose Cruz

12:04

[Comment From JimJim: ]

How/ where on the tax return do you properly file a Roth IRA withdrawal that met the 5 year time limit and how do you prove/ do you have to document that it did indeed meet the five year limit? Thank you very much.

Thursday February 21, 2013 12:04 Jim

12:08

Ken Collins:

You should receive a 1099-R about your withdrawal and your should only have to pay taxes on the interest. For more details, please call our office at 562-6939.

Thursday February 21, 2013 12:08 Ken Collins

12:08

[Comment From BenBen: ]

Any new deductions for home office workers this year? If not, are there any hidden deductions you recommend taking advantage of?

Thursday February 21, 2013 12:08 Ben

12:10

Jose Cruz:

Ben, no new or hidden deductions for home office workers, but if you contact me directly I can check what you have done in the past three years to insure you have taken all proper deductions and credits. I hope this helps...

Thursday February 21, 2013 12:10 Jose Cruz

12:11

[Comment From AnneAnne: ]

I have received form 1099s from the sale of a house that I owned for about 7 years It was not my permanent residence.It was given to me by my aunt while she was still living there. the house was sold for less than what she paid for it. What do I do with this form and do you think the IRS is interested in this as we take the standard deductions? Thanks for your help.

Thursday February 21, 2013 12:11 Anne

12:15

Mandy Hofmockel:

We're still accepting questions for our live chat with tax professionals Ken and Jose. Submit your questions to the comment box below.

Thursday February 21, 2013 12:15 Mandy Hofmockel

12:16

Ken Collins:

Anne, it may be classified as rental property for the 7 years that you owned while your aunt lived there. Did she pay rent? In any case, the IRS wants to know what you did with the property, hence, the 1099-S. Based on the information here, you may not owe any taxes on the sale. For a more detailed answer, talk to one of our experienced Tax Pros at our Westfield office at 562-69-39.

Thursday February 21, 2013 12:16 Ken Collins

12:17

[Comment From MassLive.comMassLive.com: ]

What happens if I don't file by April 15?

Thursday February 21, 2013 12:17 MassLive.com

12:21

Ken Collins:

It depends if you are getting a refund or if you owe a balance due. If you are getting a refund, there should be no penalty and you are required to file in three years. If you have a balance due, you will be subject to a late filing penalty.

Thursday February 21, 2013 12:21 Ken Collins

12:21

[Comment From MassLive.comMassLive.com: ]

What materials do I need in hand to file my taxes?

Thursday February 21, 2013 12:21 MassLive.com

12:26

Jose Cruz:

In general, if you are visiting our office for the first time you should bring; proper ID for your self and any dependents you intend to claim, all W2's, any and all tax documents, year end bank statement, morgage statement, 1099's, and any other documents related to yor financial situation... It is a good idea to contact your tax preparer to insure you have everything you need.

Thursday February 21, 2013 12:26 Jose Cruz

12:26

[Comment From MassLive.comMassLive.com: ]

What if I can't pay the full amount I owe right away?

Thursday February 21, 2013 12:26 MassLive.com

12:26

Ken Collins:

If you owe more than you can pay, send a payment in with your return along with a note to please put me on a payment plan. They will contact you soon thereafter with a payment schedule.

Thursday February 21, 2013 12:26 Ken Collins

12:27

[Comment From MassLive.comMassLive.com: ]

How fast can I expect my refund?

Thursday February 21, 2013 12:27 MassLive.com

12:30

Jose Cruz:

Currently the IRS is projecting 21 days from the day they accept your return. This of course is assuming you efile...

Thursday February 21, 2013 12:30 Jose Cruz

12:31

[Comment From MassLive.comMassLive.com: ]

How do I file for an extention? What are some circumstances that would qualify for an extension?

Thursday February 21, 2013 12:31 MassLive.com

12:35

[Comment From GuestGuest: ]

Are they accepting education credits as well as home energy credits?

Thursday February 21, 2013 12:35 Guest

12:36

Ken Collins:

You file for an extension with a form 4868. But, the extension is only for filing the paperwork, If you have a balance due, you must estimate what that is and send in your money by the April 16th deadline this year. One of the circumstances might be that you do have all of your paperwork.

Thursday February 21, 2013 12:36 Ken Collins

12:39

Jose Cruz:

Great Question: The education credit is now being accepted, but not the energy credit.

Thursday February 21, 2013 12:39 Jose Cruz

12:39

[Comment From MassLive.comMassLive.com: ]

Are there tax credits that parents and college students should be aware of?

Thursday February 21, 2013 12:39 MassLive.com

12:44

Ken Collins:

Yes, education credits are available for college students such as the $2,500 American Opportunity Credit with up to $1,000 of which can be refundable. Just a reminder, the credit goes with the dependent being claimed. If the college student claims him or her self, they get the credit not the parents.

Thursday February 21, 2013 12:44 Ken Collins

12:44

[Comment From MassLive.comMassLive.com: ]

What other materials do I need to file my state taxes?

Thursday February 21, 2013 12:44 MassLive.com

12:45

Jose Cruz:

Your state tax forms are generally completed from information on your federal tax forms. You do need to have Health Insurance information for MA Form HC.

Thursday February 21, 2013 12:45 Jose Cruz

12:46

Mandy Hofmockel:

And we have time for just one more fun one. What's the most interesting tax-related question you've been asked in your time as a preparer?

Thursday February 21, 2013 12:46 Mandy Hofmockel

12:53

Jose Cruz:

Most funny question about tax deductions: a client asked if cost of food for her two growing teen age boys were deductible...

Thursday February 21, 2013 12:53 Jose Cruz

12:53

Ken Collins:

One of the many interesting stories occurred last week when a client called to say that she spent $1,000 on her cat at the vet and wanted to know if she can claim the expense as a medical deduction. I asked if the cat was a service animal that is trained to assist the handicapped. She said no so, sadly, I had to say no, she cannot claim the medical expense.

Thursday February 21, 2013 12:53 Ken Collins

12:53

Mandy Hofmockel:

That about wraps it up for this MassLive.com live chat. Thanks everyone for participating! And thanks to Ken and Jose for coming in to take all these questions.

Thursday February 21, 2013 12:53 Mandy Hofmockel

12:56

Ken Collins:

I wish to thank all those who wrote questions. At times, it may be difficult to provide THE definitive answer but if you wish to follow up for more detailed information, please feel free to call our office in Westfield at 562-6939.

Thursday February 21, 2013 12:56 Ken Collins

12:57

Jose Cruz:

Thanks everyone for all your questions. if you have any additional questions, please feel free to contact me at 413 525 0270 and ask for Jose Cruz or visit my office at 448 N. Main Street, East Longmeadow. If you have not filed call me and make an apointment today.

Thursday February 21, 2013 12:57 Jose Cruz

1:10