Tax Time

[hev]

Just curious how folks around here do thier taxes. I am a turbo tax user and find the web software well done, easy to use, and reasonably priced. I have a fairly standard filing so it's not really a big deal but I'd recommend the software to just about anyone. Intereting new "feature" this year is that they will bonus your refund 20% if you accept it in gift certs to a set of retailers.

A few questions though for the more expereinced and profesionals...

Federal-
How do I aproximate volunteer time into a dollar amount? I have done work for a non-profit and want to declare it, but haven't kept detailed time sheets or anything, am I safe to declare a modest dollar amount?

State (Colorado) -
Alternative fuels rebates - The software mentions that up to 85% of alternatively powered vehicle purchases can be dedutable. I am thinkng about buying a car in the next year and diesel/bio-diesel is pretty convincing to me. How can I find out about the eligibility of specific models under this tax law? Also what portion of fuel purchases are deductable?

[mcsquared]

First of all if you do some research you can probably get your federal taxes done "turbo tax style" for free. Go to www.irs.gov and look up Free File. I did mine through the H&R Block website for free. Since you live in Colorado you can file your state return for free at www.colorado.gov

You can't deduct anything for time spent volunteering. Just out of pocket expenses. Like if you had to use your own vehicle to deliver meals on wheels or you bought supplies or something like that. Also you get a deduction for mileage driven for volunteering. But you like "volunteered" your time, you know.

I am not sure about your other question.
Edit: Google is your friend. http://www.revenue.state.co.us/fyi/html/income09.html

[lemon boy]

Hev-

Everything you ever wanted to know about the Alt-Fuel Credit

As for charitable cont's, CCH sez:
(g) Contributions of services. --No deduction is allowable under section 170 for a contribution of services. However, unreimbursed expenditures made incident to the rendition of services to an organization contributions to which are deductible may constitute a deductible contribution. For example, the cost of a uniform without general utility which is required to be worn in performing donated services is deductible. Similarly, out-of-pocket transportation expenses necessarily incurred in performing donated services are deductible. Reasonable expenditures for meals and lodging necessarily incurred while away from home in the course of performing donated services also are deductible. For the purposes of this paragraph, the phrase "while away from home" has the same meaning as that phrase is used for purposes of section 162 and the regulations thereunder.

IRS sez:
Value of Time or Services

You cannot deduct the value of your time or services, including:
Blood donations to the Red Cross or to blood banks, and
The value of income lost while you work as an unpaid volunteer for a qualified organization.
Personal Expenses
You cannot deduct personal, living, or family expenses, such as the following items.
The cost of meals you eat while you perform services for a qualified organization, unless it is necessary for you to be away from home overnight while performing the services.
Adoption expenses, including fees paid to an adoption agency and the costs of keeping a child in your home before adoption is final. However, you may be able to claim a tax credit for these expenses. Also, you may be able to exclude from your gross income amounts paid or reimbursed by your employer for your adoption expenses. See Form 8839, Qualified Adoption Expenses, and its instructions, for more information. You also may be able to claim an exemption for the child. See Exemptions for Dependents in Publication 501 for more information.

(sorry nerds, no cite provided. None of the above should be construed as professional advice, the income tax is by no means an area of my specialization)

[Shaggy]

Just curious how folks around here do thier taxes.

Pen, paper tax forms from the govt., calculator, and some spreadsheets.

[smmokan]

I used TaxAct.com from the IRS.gov link, but when I finished they wanted $30 to file them... so I cancelled that and went to taxfreeusa.com or something like that. It was $8.95 and they did both for me... and I got my refund a week later.

[hev]

sweet! thanks guys. I'll have to look int the free and cheaper filing options. TT also wants 30 bones when you go to file.

pen and paper sounds pretty tedious to me. took me all of maybe 45 minutes online.

[cj001f]

pen and paper sounds pretty tedious to me. took me all of maybe 45 minutes online.

the pain is figuring out what you can put in each of the boxes and gathering the paperwork to support it. The math/boxes are simple

[pappag]

Find an accountant that is a former IRS agent.



PM me if you live in eastern PA/western NJ.

[hev]

the pain is figuring out what you can put in each of the boxes and gathering the paperwork to support it. The math/boxes are simple

exactly and that's where the software helps most. It does stuff like importing pay roll information and interest amounts from brokerages as well as conveniently displaying your last years entry to that box.