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So i had the same issue and i check my property tax statement direct from my county and it turns out some of the "other taxes" were actually school district taxes which ARE deductible!!! but some were for a local improvement district which AREN'T deductible. tax stuff is so confusing!!!
This is good advice - always check your actual property tax statement from the county rather than just relying on what your mortgage company reports. They often lump things together in confusing ways.
Great thread! Just wanted to add that if you're unsure about what qualifies as deductible property tax, the IRS has a helpful publication (Publication 530) that specifically covers this. The key test is whether the tax is based on the assessed value of your property and benefits the general public (like funding schools, police, fire departments, etc.). Things like special assessments for specific improvements to your neighborhood (new sidewalks, street lighting) typically aren't deductible because they increase your property value rather than benefit the general public. Also, if you've been combining these amounts for previous years and it turns out some of the "other taxes" weren't deductible, you might want to calculate whether it's worth filing amended returns. The statute of limitations is generally 3 years, so you could still amend 2021, 2022, and 2023 if the tax savings would be significant.
This is really helpful, especially the part about Publication 530! I had no idea there was a specific test for what counts as deductible property tax. The "assessed value + general public benefit" rule makes it much clearer. Quick question about the amended returns - if I've been accidentally claiming too much in deductions for the past couple years, would filing amended returns actually cost me money? I'm assuming I'd owe additional taxes if I reduce my deductions, but I want to make sure I'm doing things correctly going forward.
Has anyone mentioned looking at tax transcript? I get confused with all the different kinds (account, return, record of account) but one of them shows if you have balance due. I think its the account transcript.
You're right! The "Account Transcript" is the one that shows any balance due, payments, adjustments, penalties, interest, and refunds. You can order it online through the IRS website or by mail using Form 4506-T. It will have transaction codes that tell you exactly what's happened with your account.
@Anna Stewart - Looking at your specific situation, since you filed on time but are receiving letters, it's likely there was either an underpayment or the IRS processed something differently than you expected. Beyond checking lines 24 vs 33 as others mentioned, also look at line 25a-25d on your 1040 - these show estimated tax penalties that might not have been included in your original calculation. When you get those CP14 notices, they usually include a detailed breakdown of the original tax, any penalties, interest charges, and payments received. The key is to match up what the IRS shows as payments received with what you actually paid. Sometimes electronic payments can take a few days to process, or there might have been an error in how your payment was applied to your account. If there's still confusion after reviewing your forms, you might want to call the number on the notice itself - it goes directly to the department handling your specific case rather than the general IRS helpline.
This is really helpful advice! I never thought to look at lines 25a-25d for estimated tax penalties. As someone who's pretty new to dealing with tax issues, I'm wondering - is there a typical timeframe for how long it takes the IRS to apply electronic payments to your account? I'm asking because I'm in a similar situation and trying to figure out if my payment timing might be part of the problem. Also, when you call the number on the CP14 notice, do you usually get through faster than calling the main IRS line?
For anyone dealing with old tax debts, I can't stress enough how important it is to get your exact assessment dates and Collection Statute Expiration Dates (CSED) from the IRS. I was making payments on what I thought was a 2009 debt for years, only to find out it had actually expired in 2019! The key is understanding that the 10-year clock starts when the IRS officially assesses the tax - not when you file or when the tax year ends. For substitute returns (SFRs) that the IRS files for you, this can be years after the original tax year. For returns you file late, it's when they process your late filing. What really helped me was getting my Account Transcripts online through IRS.gov. Look for codes like "150" (which shows the assessment date) and "434" (which shows the CSED). These dates are crucial for planning your strategy. If you're close to the expiration date, you might want to avoid certain actions that could extend the statute. Just remember - the IRS won't voluntarily tell you when a debt expires. They'll keep sending notices and trying to collect even after the 10 years are up. It's your responsibility to know when the collection period ends and to assert this defense if they try to collect on expired debt.
This is incredibly helpful information - thank you for sharing! I'm in a similar situation where I've been making payments without really understanding when my debts might expire. The codes you mentioned (150 and 434) are exactly what I need to look for on my transcripts. One quick question - when you say the IRS won't voluntarily tell you when debt expires, does that mean they'll actually continue trying to collect even after the 10-year period is legally over? That seems like it should be illegal or at least against their own procedures. I'm definitely going to pull my account transcripts this week and look for those specific codes. It's frustrating that we have to be our own advocates on something this important, but at least now I know what to look for.
Yes, the IRS absolutely will continue collection efforts even after the 10-year statute has expired! They don't have automated systems that stop collection when the CSED passes. I've seen cases where people received levy notices and garnishment actions years after their debt had legally expired. The burden is entirely on you to raise this as a defense. When they try to collect on expired debt, you need to contact them and specifically cite the expired Collection Statute Expiration Date. They'll usually back off once you point it out, but they won't proactively stop on their own. This is why pulling those transcripts is so critical. Look for Transaction Code 150 (original assessment) and 434 (CSED). The 434 code will show your exact expiration date. If you don't see a 434 code, the debt is still within the collection period. One more tip - keep documentation of your CSED dates in a safe place. If the IRS tries to collect after expiration, you'll need to prove when the collection period ended. Having that transcript showing the 434 code is your best evidence.
This is such valuable information for anyone dealing with old tax debt! I've been struggling with IRS debt from 2009 that I didn't file until 2014, so based on what everyone is saying here, my 10-year clock probably started in 2014 when they processed my late return. What really concerns me is reading that the IRS will keep trying to collect even after the statute expires. That seems incredibly misleading - how are taxpayers supposed to know their rights if the IRS doesn't inform them when collection periods end? I'm definitely going to request my account transcripts and look for those 150 and 434 codes that Alice mentioned. It's frustrating that we have to become tax law experts just to understand when our own debts might be uncollectible, but this thread has been more helpful than hours of trying to get through to the IRS phone lines. Has anyone here actually had success getting the IRS to stop collection on an expired debt? I'm curious how difficult it is in practice to get them to acknowledge when the 10-year period has passed.
Don't forget about currency conversion fees! When I transferred my savings from Europe, my bank charged me an outrageous amount. Check if your bank has a partner bank in the US - sometimes they offer better rates. Or use a service like Wise or OFX for better exchange rates. I ended up losing almost $800 in fees and bad exchange rates because I didn't look into this first!!
One thing I haven't seen mentioned yet is the timing of when you transfer the money. If you're planning to transfer a large amount, consider spreading it across multiple smaller transfers over a few months rather than one big lump sum. This can help avoid triggering automated bank reporting systems that might flag large international transfers. Also, make sure to keep records of the exchange rates on the day you transfer - you might need this information for tax purposes later. The IRS uses specific exchange rates for different dates, and having your own documentation can save headaches if there are any questions about the USD equivalent value of your foreign earnings. Finally, if you haven't already, consider opening your US bank account first and letting it "season" with smaller deposits before doing the big transfer. Some banks are more comfortable with large international transfers when they already have a relationship with you.
This is really smart advice about spreading out the transfers! I'm actually dealing with a similar situation right now - have about $22k sitting in my German account that I need to bring over. Was planning to do it all at once but now I'm thinking maybe I should do it in chunks of like $7-8k each month? The point about exchange rates is something I hadn't thought about either. Do you know if there's a specific IRS source for historical exchange rates, or would screenshots from xe.com or similar sites be sufficient documentation? Also curious about the "seasoning" your account advice - how long would you recommend waiting between opening the account and doing the first transfer?
Victoria Brown
One thing nobody mentioned - if youre tracking mileage for a bunch of diff't charities, the Stride app is free and lets you track diff't categories. I use it for my volunteer work at the animal shelter, food bank AND habitat for humanity and it keeps everything seperate. Super helpful at tax time!!
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Samuel Robinson
ā¢Does it calculate the deduction amount automatically? And is it easy to export for taxes? I'm using a paper logbook right now and its a huge pain to add everything up.
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PixelWarrior
ā¢Yes, Stride automatically calculates everything using the current IRS rates (14 cents per mile for charitable work). At the end of the year, you can export a detailed report that shows total miles and deduction amounts for each organization separately. Way better than adding up a paper logbook! The export works great for uploading to tax software or giving to your accountant.
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Connor Richards
Great question! Yes, you can definitely deduct the full round-trip mileage for your volunteer work. The IRS allows you to claim both directions - from your home to the food bank and back home again. So if it's 15 miles each way, you can deduct the full 30 miles at 14 cents per mile for each volunteer day. Just make sure to keep detailed records with dates, destinations, and mileage. Also remember that you'll need to itemize deductions on Schedule A to claim this, so compare that total to the standard deduction to see which benefits you more. Keep up the great volunteer work!
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Hailey O'Leary
ā¢Thanks for confirming this! I was worried I might be doing something wrong by claiming the full round trip. One more question - do I need to keep gas receipts too, or is just tracking the mileage enough? I've been saving all my gas receipts but wasn't sure if that was necessary when using the standard mileage rate.
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Toot-n-Mighty
ā¢You don't need to keep gas receipts when using the standard mileage rate! The 14 cents per mile already covers all your vehicle expenses including gas, maintenance, depreciation, etc. You're essentially choosing between two methods: either track actual expenses (gas, repairs, etc.) OR use the standard mileage rate - but not both. The mileage rate is usually simpler and often more beneficial for most people. Just keep your mileage log with dates, destinations, and miles driven - that's all you need for the standard rate.
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