skagen said:Thank you, Jim - I've emailed my realtor asking the realty company to correct the issuance of the 1099 and simply mentioned that I would include a statement along with my return if it didn't get corrected.

Here's to hoping I don't get a bill later on from the IRS .

If you do get a bill, you are well within your rights to contest it using the information in the prior post. Of course, nobody wants to spend time doing that if it can be avoided!

mrng said:Really stupid question, someone may just know:

1. Is the annual vehicle registration fee deductible. In Florida this is $37.50.

2. Given I have earned income for 2008 and will have for 2009 whether I can use my tax refund money to fund my Roth IRA for 2008 and 2009. I am expecting a large refund, and my earning for IRA contributions are within the IRS limits and I will do so within April 15th 2009.

Thanks1. Vehicle registration deductibility depends on how the state calculates the fee.

If the fee is the same for all vehicles of a particular class, say automobiles, then no, you can't deduct it. If it varies according to the value, then you can deduct it. If part of the fee is fixed or is based on weight, then you can't deduct that portion - only the portion of the fee which is based on value. The deductible portion of the fee is claimed on Schedule A as a "personal property tax."

2. I'm not grasping your question. If you qualify to fund an IRA, it doesn't matter to the IRS whether the funds come from a refund or savings or a loan or under the mattress. What counts is that you open the IRA between January 1 of the tax year and the tax filing deadline for that year.

JimTravel73 said:mrng said:Really stupid question, someone may just know:

...Thanks a lot Jim and Xnarg.

Regarding:
"..See other posts in this thread for discussion about large refunds and why they are generally considered a bad thing".

I have read many posts on that, the argument being that why give Uncle Sam a tax free loan. Financially they are right. I see it a little differently. At a minor cost, I have an automatic saving plan. Since I have more tax cut every paycheck, I am forced to live within a smaller amount. During tax time, I get a large refund. I can then invest/save this money. One may argue, I could use payroll deduction to a savings account. That could be the case, then I have the situation, I know I can tap into that money since its readily available. I know this is not for everyone, but it works for me..in sort of a forced saving.

Xnarg said:With interest rates being so low, unless one is into investments (and really good at it), the impetus to minimize the size of a refund is reduced. With savings rates in the 1% range, minimizing the size of the refund (or maximizing the size of the balance due) is not as big a deal as it used to be when passbook accounts paid >5%.

While that is absolutely true, having those funds available to you in case of emergency or really-outstanding-CD-deal might be beneficial. In the mean time, I'll take earning 1% (or 4.11%) and having the opportunity to jump on something I want to do with the money when the time comes vs. earning nothing and being less liquid until I get around to filing. The "I do not have the discipline to save that money a little at a time" argument takes it to the other extreme, and there's nothing wrong with that. But from a strictly financial perspective, it is still the wrong move to make.

Informed consent, my friend. All I'm asking for is informed consent, and OP seems to have given it.

Regarding the recovery rebate credit in filing a 2008 tax return. In 2007, was married with a child. We received $1,500 in rebates ($600 her, $600 me, $300 for my child). We divorced in 2008, and now are filing sperately. One of the first questions on my online tax preparer it asks how much did you receive, and make sure it's correct because it could be bounced by the feds if incorrect amount is inputted. Both my ex-wife and I got $750. Do I put that amount or the full amount?