I just finished doing the taxes using Tax Cut. They say a final update is
expected for Fed tax in April.
Is there any reason to wait for that before I file the forms - using
I have no fancy anything, SS, int income and a rental with no depreciation
- only income and expenses..
BTW - inputting the estimated taxes paid in CA was a real 'hunting
Is line 76 ("estimated tax penalty") more than zero? If it is blank,
is line 75 more than $1000? If you don't owe money, is your refund on
line 72 pretty large?
If you're owing money and there is no penalty, then you can wait till
the last minute. If you're owing money and there is a penalty, the
penalty increases the longer you wait. If you owe less than $1000,
there is usually no penalty. If you owe more than $1000 there may or
may not be a penalty. If the penalty is small, say like $20, then
waiting is probably a good idea because the penalty will grow to $22
or so. If you're getting lots of money back, file earlier to get all
this $$$ into your account and earn interest on it, and then file an
amended return. But if you're only getting very little back and don't
need the money now, then might as well wait.
Having said that, I'm not expecting any updates to the basic stuff
like what you have. I kind of hope they increase the AMT exemption
again, but I think that will happen. The software has to probably
update for the recent stimulus act, which includes things like bigger
depreciation, more energy and first time homebuyer credits, etc.
You mean you had to dig up the amounts paid to CA? How did you do
that? I have no idea, just curious.