Wednesday, February 6, 2013

No Fee-File-Fillable-Fo-Fum IRS Forms -OR- The Taxford Files

**Second update 11:52PM 6/5/2014: A few references (all on same topic) were have been removed from this entry. These are not called out below.**

Updated 8:55PM 2/8/2013: See below.

This is a Tuesday night posted on Wednesday after midnight. The images I have for it are a bit forced and mediocre except for this lead one (left side) of an illustration from Jack in the Beanstalk (refer to entry title bad pun).

My apologies.

First off, I've gone to the gym two nights in a row and had a good workout both nights plus a swim. Also, my weight is back to 162 pounds (from 165 pounds last Saturday). It's not that I don't want to gain any additional muscle mass -- I would love to do that -- but I still have about 10 pounds of fat I'd like to lose.

Secondly, I received a jury duty summons as a potential petit juror on March 18th. I knew that was coming -- it has been almost 26 months now or just over the two-year cycle that runs in D.C. where the eligible pool of jurors is small compared to the need.

The main topic I wanted to discuss is that I completed and sent off my taxes including both my Federal using the Free File Fillable Forms site and my D.C. one in hardcopy form I snail mailed today. (My AGI is over $57,000 so I couldn't take advantage of the free e-file and I didn't want to download any software on my work computer.)

The Federal tax online filing was an interesting process as I filled in the series of fillable forms that you can get from the Free File Fillable Forms site (rather than directly from the IRS site).

By way of explanation, my income and taxes were very simple this year and all I would have had to use was the 1040-EZ this year, but a stupid 1099-C form from a sh!tty collection agency / law firm with which I settled back in April reported the $1636.17 reduction and I had to count it as "income" and so I had to use the  Form 1040.

As it turned out, I didn't actually have to report any of that income. Instead, I used my Form 982 to fill out just a few lines as explained in Example 1 of pages 5 and 6 in IRS Publication 4681 to show that an insolvency exclusion applies to me because my assets are less than -- actually, dwarfed by about two orders of magnitude by -- my liabilities (primarily student loan debt to the tune of a quarter million dollars).

Yes, I'm technically insolvent and thus Line 21 on that Form 1040 was zero as were all the other income / interest / whatever lines after Line 7 for wages, salaries, tips, etc.*

*For me in 2012, it was a little under $62,000 in 2012 -- the highest I've ever earned but still a fraction of what Wall-P collects on a monthly basis -- and about $1,000 less than the Social Security wages part but this involves the 401k contributions.

"Eh. Eh. Accelerated depreciation of the capital gains helps to limit tax liability on a quarterly basis when you index -"

Ohhh, shut-up, Wall-P.

The FreeFillableForms site supported both the IRS Form 1040 and the Form 982. It also allows you to recreate your W-2, which I did. I submitted it just after 1AM and by 248AM it had been rejected -- I got an e-mail but was already logged off and in bed**.

**Or rather on my floor in the pile of quilts, blankets, and pillows and assortes plush hippos and other stuffed animals) with fans, window a/c on blower, and a radiator hissing away, a whole veritable symphony of sound,

The error message said the following:

"Field/Xpath: /efile:Return[1]/efile:ReturnData[1]/efile:IRS1040[1]/efile:SelfEmploymentTaxAmt[1 Issue: The XML data has failed schema validation."

I surmised it was an extra "0" on the left side of Line 56 (or somewhere around there) that it was assuming required more information. I removed the zero, resubmitted at 9:27AM and it was accepted by 9:36AM. And there you have it. The refunds go out on Friday but it requires 72 hours to process, so if all goes well and no glitches or flagged returns, I should have my Federal refund by next Friday (Feb. 15th).

Update / clarification at 8:55PM 2/8/2013: The 72 hours simply refers to when the IRS begins to process it. The timeframe given for the actual refund arriving is 21 days thereafter (assuming no other issues), so that is actually February 26, 2013.

In the case of D.C., I was able to use the D40-EZ Form since the 1099-C amount simply vanishes.

I'm supposed to get a $927 Federal refund (if I did my math right) and a $334 D.C. refund. I really need to spend about half to two thirds of his on new clothing and some new bedding (see above). Oh, yes, it would be nice to have more than 1 spoon and 2 forks in the kitchen.

Yes, that's how I live.

OK, that's all for now. My next update will probably be on Friday night followed by the delayed New Jersey trip themed ones over the weekend.


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