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3 Does anyone know if the May 17th extension also applies to IRA and HSA contributions for 2020? I usually max these out right at the tax deadline and was planning to do the same this year.
14 Yes, the IRS has confirmed that the deadline for making 2020 contributions to IRAs (both traditional and Roth) and HSAs has also been extended to May 17, 2021. This gives you about a month of extra time to maximize those contributions. This extension also applies to 2020 contributions to Coverdell education savings accounts if that's relevant to your situation. However, remember that the deadline for 2021 Q1 estimated tax payments remains April 15th, even though the filing deadline has been extended.
22 My sister told me that some states aren't following the federal extension and are still requiring taxes to be filed by April 15th. Can anyone confirm if this is true and which states are sticking with the original deadline? I live in Ohio if that helps.
10 I know for sure that Hawaii, Idaho, and Ohio aren't automatically following the federal extension - they're still requiring filings by April 15th unless they announce something different. Several other states are also sticking with their original deadlines. You should definitely check with the Ohio Department of Taxation directly. Their website should have the most current information, or you could call them to confirm. Don't assume your state deadline changed just because the federal one did!
I just wanted to add that TurboTax's policies on data retention are actually pretty terrible. They only guarantee they'll keep your returns for 7 years, but in practice, their system "loses" returns much more frequently. Something similar happened to me, and when I pressed their customer service supervisor, they admitted they had a system migration in 2022 that caused many accounts to lose data from 2019-2021. They won't publicly admit this though and keep giving people the runaround.
Is that actually legal though? Aren't they required to keep tax records for a certain period of time since they're an authorized e-file provider? Seems like there should be some regulation about this.
There's a difference between what's legally required and what they promise customers. Tax preparers are required to keep certain information for their compliance purposes, but that doesn't mean they're required to make it available to customers indefinitely. Their terms of service (which nobody reads) actually states they only "strive" to maintain access to returns for 7 years but make no guarantees. It's buried in the fine print. The IRS requires them to keep certain records, but that's for audit purposes, not customer convenience.
Has anyone tried the TurboTax Audit Defense team? I remember when I filed, I paid extra for some kind of protection plan that supposedly included keeping records longer. Wonder if that would help in this situation?
TurboTax Audit Defense is completely separate from their data retention policies. It's basically just insurance that provides representation if you get audited. I paid for it too thinking it included document storage, but when I called about missing returns, they told me it was completely different departments and services.
One thing I learned from my CPA friend - create a simple coversheet/checklist with everything you're providing them. It makes it super obvious if something is missing and gives them a quick overview of your situation. My friend says clients who do this tend to get their returns done faster because they don't have to keep coming back asking for missing documents. It also helps you keep track of what you've already given them vs what you still need to track down.
Do you have a template for this coversheet you could share? I'm trying to visualize what should be on it besides just a list of documents.
I don't have a specific template, but I include these sections: Personal Info (names, SSNs, address), Income Documents (list all W-2s, 1099s by source), Deduction Documentation (charitable contributions, home office, etc.), Credits (child tax credit info), Estimated Tax Payments (dates and amounts), and Questions (things I specifically want the CPA to address). I also add a section for "Changes from Last Year" that highlights anything new (like your new baby) so they immediately know what's different.
I've been using a CPA for years and the best thing I started doing was keeping a "tax events" note on my phone. Whenever something happens that might affect taxes (bought something for business, made a donation, started using part of house for work), I just jot it down with the date. By tax time I have a chronological list of everything that happened.
Smart! What app do you use for this? Just regular notes app or something specific for tracking expenses?
Quick question - does anyone know which box on the 1099-MISC the Zazzle royalties are usually reported in? I just got mine and trying to figure out if I'm looking at the same thing as OP.
On my Zazzle 1099-MISC, the royalties are in Box 2 "Royalties." Some older forms might have it in different boxes, but as of the last few years, that's where Zazzle reports royalty payments.
Slight tangent but related - has anyone noticed that the reporting thresholds for these forms keep changing? I know for 1099-K (for payment processors) they were going to lower the threshold to $600 for 2023 taxes but then delayed it. Is there a similar threshold change happening for 1099-MISC too? Just wondering if more people will be getting these forms for small amounts like OP.
The 1099-MISC threshold for royalties has consistently been $10 for many years, which is much lower than most other reporting requirements. That's why even small earners like OP receive them. You're right about the 1099-K threshold changes though - it was supposed to drop from $20,000 to $600 but has been delayed again for the 2025 filing season.
James Maki
Be very careful with boat deductions. My brother-in-law tried to write off his boat for his real estate business saying he used it to show waterfront properties. He got audited and ended up owing thousands in back taxes plus penalties. The IRS specifically looks for this kind of thing.
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Mikayla Davison
β’That's definitely concerning. Do you know what specifically triggered the audit or what documentation your brother-in-law was missing? I want to make sure I'm doing everything properly if I go forward with this.
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James Maki
β’From what he told me, he didn't have adequate documentation proving business use. He had some receipts and calendar entries, but nothing detailed enough to satisfy the auditor. The IRS agent specifically told him they scrutinize "dual-use luxury items" like boats and RVs extra carefully. His biggest mistake was claiming too high a percentage for business use without documentation to back it up. He claimed 70% business use but couldn't provide logs showing each use. The agent also pointed out that some of his "business" trips didn't align with actual client meetings or listings.
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Jasmine Hancock
Just an FYI - I use QuickBooks Self-Employed to track my business expenses and it has a feature specifically for tracking mileage and usage of vehicles/equipment. It might be helpful for logging your boat usage, especially since it timestamps everything. You can categorize each trip as business or personal.
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Cole Roush
β’Does it have a specific boat or watercraft category though? Last time I used QuickBooks it was pretty car-focused for the tracking features.
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