Turbo Tax Reminder - January Estimated Tax


W

Walt Bilofsky

Here are a couple of ways Turbo Tax could cost you money on your
taxes:

1) When it imports tax data from Quicken, it ignores any estimated tax
payments made in 2008. So if you made estimated tax payments around
January 15, 2008 for tax year 2007, you need to enter them yourself on
the Tax Payments Worksheet. Otherwise Turbo Tax will tell you to pay
those amounts again. (If you go through the interview, you might
notice that the January payments are missing. Or you might not.)

2) If you received a state income tax refund in 2007 and paid federal
Alternative Minimum Tax in 2006, then some or all of that refund
should not be included in your income for 2007. But Turbo Tax won't
tell you that. (It caught it as an incomplete form error in 2006, but
I don't think it does in 2007 - correct me if I'm wrong.) This might
not hurt if you're also well into AMT in 2007 because misreporting the
refund as income will not change your total tax.

(Disclaimer: I don't know if the interview helps with these because I
mostly skip it. I'm not an accountant. This advice could be worth
what you paid for it. Any corrections will be cheerfully received.)
 
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