Free Tax Help for Scubaboarder Members!!!!

[Dive-aholic]

What type of Alabama form did you file? You should file a Non Resident form and file the information requested on the form.

It was the non resident form and was completed using just the income earned in AL. However, AL apparently has access to federal returns and modified the return to include FL income as well. I thought it was very strange they would do that.

 

[mike_s]

It was the non resident form and was completed using just the income earned in AL. However, AL apparently has access to federal returns and modified the return to include FL income as well. I thought it was very strange they would do that.

you have to turn in the first two pages of your federal return with your Alabama return. part of the process.

Turbo Tax even prints the pages for you as part of your state return.

 

[Dive-aholic]

you have to turn in the first two pages of your federal return with your Alabama return. part of the process.

Turbo Tax even prints the pages for you as part of your state return.

Okay, I may have done that. It's been a year since I did that and I can't remember what I did last week!

 

[mike_s]

It was the non resident form and was completed using just the income earned in AL. However, AL apparently has access to federal returns and modified the return to include FL income as well. I thought it was very strange they would do that.

can you explain what you mean by " (Alabama) modified the return to include FL income as well " ?




does that mean they sent you a 'bill' for tax owed based on adding your Florida Income?



Or did you use Turbo Tax and it included it on your state return? (there is an option on Turbo Tax that will let you exclude income for states based on it being in another state).

 

[Scott L]

I don't think you can count expenses with pay porn sites and the "personal messages" from them. I'm just saying....




those aren't "message girls". Their hookers... BIG difference. BIG, BIG difference.

I am blaming that typo on spell-check. Good eye!

 

[denisegg]

Okay, I may have done that. It's been a year since I did that and I can't remember what I did last week!

I am not sure what happened but Mike is correct. As a Non Resident, you only pay tax to that state for earnings in that state. However, some states require that you list your income from the nonresident state and also from all sources and then they allocate deductions based on the percentage.

 

[Dive-aholic]

We completed the AL non-resident form including only AL income. It resulted in X amount to be returned. A few weeks later we received a letter stating the claimed income was incorrect, they modified it to include FL income and decreased the amount of the return to reflect the new, higher overall income.

 

[denisegg]

You can't just include Alabama income and take the full itemized/standard deduction and full personal exemptions.
Here is an example
Federal Return W2 income all sources $139,079 Total Itemized Deductions $17,967 and Personal Exemption $3,000.
Alabama Return W2 income is $23,224. The % of Alabama to Total Income is 16.70%. Therefore, you can only take 16.70% of your itemized deductions which leaves you $3000 and you can only take 16.70% of your personal exemption which is $501.
Although they are not taxing your Florida income, they are using it to allocate your Alabama deductions. If you took the full itemized deductions or standard deduction and personal exemption that is where the problem is.
Now if you did all of this correctly then they made a mistake and you need to write them about it. The IRS and state taxing agencies do make errors. I have written them many times for clients when the error was there's. I even discovered a form one time years ago that was not calculating the numbers properly and they corrected it.

 

[Ana]

I also have a related question.
My son, a 26 y/o on his own, that hasn't file returns for several years because he was a non-earner punk. Started school January 2010, had a grant and also Florida Prepaid. He received a 1099-Q from the Florida PrePaid but nothing else, maybe he didn't recognize it as important mail and went to the garbage with the 20% off coupon from Bed Bath N Beyond and the pizza flyer.

On the financial page of the school website, it says that no 1098 was issued for 2010. With the following message:
While there may have been payments made by you or on your behalf, the total of scholarships and grants for the year either matched or exceeded the total amount paid in the year. Our institution's policy is to not issue a 1098-T under this condition.

Would the grant people have to issue the forms, or if the school doesn't issue one it means there isn't one made?

So if the only thing he has is a few K’s gross distribution with about a thousand earnings from the Florida PrePaid, does he have to file?

I guess that's more than 1 question.

He'll have to figure it out on his own, but I'm curious.

 

[denisegg]

Here is a link to the rules on calculating whether or not you have a taxable distribution:

Publication 970 (2010), Tax Benefits for Education