Looks like I'm going to need a CPA. :(

[John Schmidt]

Trying to complete the Wisconsin personal income tax for the first time and only covering the last four months of 2019. Finally gave up for now. I called the DOR and some dude informed me nothing I asked about is deductible although it might be on the Federal return, depending on circumstances. That alone doesn't make sense. So I asked about making estimated deposits during the year and he told me it needs to be 6.27% of expected gross income...not counting my SS. That's a chunk of money each qtr. and a heck of a lot more than my Fed. income tax is per year. I could move back to Florida and have quite a bit more income since Fla. has no personal income tax. I worked for the Fla. DOR for 30 yrs. and my opinion....Wisconsin needs help when it comes to budgeting and taxation. This is ridiculous, I'll find out who my SIL uses and work through this.  

[OnaWingandaPrayer]

 

  Well its still safe in Fl tax wise but I am sure the politicians would love to change that.

[John Schmidt]

  Well its still safe in Fl tax wise but I am sure the politicians would love to change that.

For sure, but there's such a large number of retirees there it would be suicide for the politicians and they know it. It has been floated around Tally a number of times while I was working for the State, usually killed before ever brought out of committee. If I could find a reasonable place to either rent or buy down there, I'd probably moved back....so many roots there after 53 years. Of course my daughter would have a fit but she'd get over it.

[Crackerborn]

As much as I like WI for many things, taxes ain't one of them. We started building our "retirement home " two years ago, completed last April with every stick of wood in it placed by yours truly. We may be selling it next year because the property taxes have tripled in two years. Suddenly lakefront property is not so attractive, especially when I can't put a dock in because all the waterfront is now considered conservancy, i.e., non touchable. It wasn't when we bought the property, only after I pulled permits to build a new home after tearing down the rat, squirrel, and raccoon infested cabin that was here before. That cabin was condemned as uninhabitable long before I bought the place.

You really don't want my opinion of the tax hell WI puts small businesses through. Nor the waste by the state government, especially the DoT.

I once used a free version of turbo tax to file the kids state returns when they were still fledglings and wanted dads help. It was available through the state DoR website. I also never make quarterly payments to WI, only  the feds. I just bite the bullet and write that check to the state every year. It's still smaller than the check I write the fed even after quarterly estimates.

Our forefathers revolted over a 2% tax, image what they would think now.

[0leman]

Don't know about your tax forms but OR has 4 pages of crap to fill out.  The Fed IRS reduced theirs, OR made it more.   Go figure.

[MarkT]

I have for years hired an accountant originally recommended by a friend to do our taxes.  Not only does that eliminate that headache but he is also current with the current tax laws and knows every angle he can use to minimize our tax burden.  The result is, he WAY MORE than pays his cost in lowering our taxes, as well as I don't have to DIY and try to find those latest rulings, and have a ramp-up every year on the procedures and paperwork.  My only burden is keeping good records, then emailing them to him.  Intuit Quickbooks Pro Plus works well for that.  My accountant also uses Quickbooks, making his work easier since he gets the output of QB directly importable into his accountant's version.  I advised my Dad (RIP) who lived in Wisconsin - his house pictured below - to hire an accountant, it's WAY worth it, but he was a proud DIY guy and didn't get the advantages, so he always struggled through it and I'm sure, lost many savings he could have benefitted from.  Typical cost for my accountant is $250 and that's for a small business combined with my wife's employment.  He saves us thousands.  My concern is what happens when he retires - I'll have to find a great replacement.  Maybe by then I'll be retired and my taxes will be simple.

[Wizzard]

I have had an accountant do my taxes for 40 years. I would not think of doing my own.

[Oldfishguy]

I have several neighbors/ acquaintances that spend 6 months and 1 day in no income tax states.  And that is how they avoid state income tax.  Talk to a professional financial advisor on that though; serious implications if done nonchalantly.

[Jess from VA]

Being a simple wage earner most all my life, my taxes have always been pretty straightforward.

My only recourse against the system was to earn less money (and interest).

That one year I was in business for myself is well past the statute of limitations.  

Not that I would have owed much from that $7800 year.


John, there are CPAs and tax preparers, one costs more than the other, but the result may be the same for your return.      

[cookiedough]

We in WI have done ours manually since age 16 now pushing age 50.  The past 4-5 years though we have  the Turbo Tax software installed on our laptop now that the kids were in college made it harder to do vs. basic income/interest basically prior.  

When my Dad passed in 2008 he had his done thru H&R block for decades prior charging him over 100 bucks to do basic adding/subtracting, pretty easy just a check and interest basically.  After Dad passed I did my mom's since then and she makes so little in a small Dad's pension and his social security rolling over to my mom that she never owes anything and really does not even need to file is so petty chump change.  Is really depressing for me though mom makes thru dads pension and social security more than me working full time 40 hour weeks, now that sucks, yet my moms checking account goes down  over 2K monthly since I have to pay for her assisted living and that is NOT cheap.  

One thing we like about Turbo Tax is we can file electronically the Federal but have to mail in the WI and we do ours married filing  jointly of course, my 2 kids making piddly at part time jobs while in college, and my moms of course.  Ever since forever my wife and I have nearly always had to pay into Federal a lot, but most is made back up in a refund/return with the state of WI but not all of it.

Anyone who thinks like my brother paying in advance all that money into Federal upfront out of his paychecks to get 2-3 grand back at the end of filing is doing it wrong  IMO.  Why give the Federal govt. all that money upfront when you can use that money ASAP to pay bills, etc.?  I say try to break even is the best thing to do combining federal and state taxes.  

As far as WI taxes,  yah, they am sure NOT the worst state to live in, but is definitely in the top worse 20% for sure.   Just last year or so all DOT license/registration fees, etc. went up and I have 2 ATVs, 6 cycles, and 5 cars along with 1 enclosed trailer  and paying for insurance on those 6 cycles and 5 cars as well with 2 under age 25 kids - do NOT get me started all 5 cars going up well over 30% once the 2nd kid got his drivers license 3 years ago!      

I'll be rich again once both kids reach age 25 and on their own out of college but until then being 5-6 more years am eating mac n cheese and ramin noodles weekly...     Eating out in my house is going to the local Culvers once every few months and getting a snack pack or kids meal at 5.99 each or so...  

Also as said, our fricking property taxes in this town and am sure most of WI has jumped HUGELY totally unjustified like this year my property taxes are now assessed at full market value and went up NO fricking joke 20% rate increase vs. since 1993 going up mostly say 3-5% at most per year which is still more than my normal 2-2.5% pay increase.

My wife and I keep joking and getting more and more serious on quiting our jobs age 50 or so and moving way up north buying land building a small house nothing fancy and living off the land hunting and fishing mostly.   l do NOT question anyone on retiring early think it is the best thing anyone can do UNLESS you really really like your job which in today's working world is few and far between.   

 

[98valk]

some info that might help

https://www.kiplinger.com/tool/retirement/T055-S001-state-by-state-guide-to-taxes-on-retirees/index.php?map=&state_id=50&state=Wisconsin

[John Schmidt]

Well, finally got it done. Used Turbo Tax and talked to some CPA's there re. a few questions. The problems seemed to stem from filing joint but telling them my wife didn't live in Wisconsin for any time during 2019....only me from August 24th on. I kept telling them to look at the personal information re. her death in May. The first CPA I talked to wasn't in the top 99% of her class so quit with her and came back later in hopes of getting a different person....which I did. In the end, I ended up owing $10 to Wisconsin, an amount I know if not collected will pinch the state budget. As for the feds, I have over a $200 refund I'm carrying forward to next year. Yes, cost me a few bucks but got it out of the way so I can attend to other things of greater interest. I worked with taxes of various types for 30 yrs. with the Fla. DOR and have had enough of the practice of filling out forms. I'm assuming next year will be easier....and more expensive since it won't be a joint filing. That is unless I find a pet to claim....about 60 and independently wealthy. Yeah...you know that's what I'm shooting for....NOT!   

[f6john]

Glad you got ir worked out John. CPA’s are not a problem for me. My sister who is 3 years older than me is a CPA, her daughter, my niece, is a CPA, my niece has a son in college who will be a CPA in a few more years, and now my son who is a Certified Financial Planner is working on becoming a CPA. Now if I had just availed myself of there services 40 years ago!!!


If you know the story of the ant and the grasshopper, let me introduce myself, I’m the grasshopper.

[Jess from VA]

Amazing CPA family John.  I suffered through two semesters of accounting... accounts receivable, accounts payable.... man I just hated that stuff.  It was almost as bad as sociology.  Then in law school, I took one look at that 15lb (small print) tax law book, and said the hell with that (like watching paint dry and grass grow).

I did learn (just) enough tax law to stay out of jail and avoid being sued for malpractice, but that was it. 

It was just as well, a almost none of my clients ever had enough money to need an accountant (which probably explained them passing all those bad checks).

Later, the Air Force and VA had lots of money, but they never wanted my opinion on their finances (except claims work). 



   

[John Schmidt]

Jess, I used to teach acctg. both in adult education night school and subsitute teaching in high school. The night school was kinda fun cuz those students(mostly women) were there for a purpose and wanted to learn. In HS...not so much. Filling out tax forms for two different entities is a horse of a different color when compared to teaching acctg., and that expression will give you some insight as to my age. 

[cookiedough]

Jess, I used to teach acctg. both in adult education night school and subsitute teaching in high school. The night school was kinda fun cuz those students(mostly women) were there for a purpose and wanted to learn. In HS...not so much. Filling out tax forms for two different entities is a horse of a different color when compared to teaching acctg., and that expression will give you some insight as to my age. 

agree,  doing taxes is like pulling teeth to me, do not want to ever do them.  Me being in Accounting since 1990 (pion levels mostly) fresh out of college I cringed on the semester of Income Tax class having an old battleaxe strict teacher who made you work for that A.   A/P and A/R doing it long enough with basic accounting is no big deal to me although the idiots I work with internally and externally cannot add 1+1.   

[RDAbull]

Jess, I used to teach acctg. both in adult education night school and subsitute teaching in high school. The night school was kinda fun cuz those students(mostly women) were there for a purpose and wanted to learn. In HS...not so much. Filling out tax forms for two different entities is a horse of a different color when compared to teaching acctg., and that expression will give you some insight as to my age. 

agree,  doing taxes is like pulling teeth to me, do not want to ever do them.  Me being in Accounting since 1990 (pion levels mostly) fresh out of college I cringed on the semester of Income Tax class having an old battleaxe strict teacher who made you work for that A.   A/P and A/R doing it long enough with basic accounting is no big deal to me although the idiots I work with internally and externally cannot add 1+1.   

I kind of enjoy doing taxes, that's why I'm still working at almost 70.  I taught the Federal Income tax class at the University for 20 years as well as ran my financial services firm.  Because I knew everybody in the department I now do the tax returns for 5 CPAs that also have PhDs.  It's not that they couldn't do them, it's just that they HATE to do them.  (knowing that, they pay more than the average client also)  I have two kinds of clients. those who need me and those who just want me to relieve the pain in the but of dealing with the IRS.
 
My outlook is that if I can't save you more than I cost you, you don't need me, but you might want my help anyway.

BTW cookie the proper answer to the question: what is 1+1:    What do you need it to Be!

[John Schmidt]

This all reminds me of an older couple that lived across the street from Rita and me...Ruth and Colson. He was a mechanical engineer by trade, she as a young woman served in what she referred to as the Foreign Service. She didn't go into much detail but let us in on a few things to know she wasn't just a pencil pusher flying a desk. Rita always referred to them as her surrogate parents since both of hers were long gone. In their later years they both became hard of hearing so when we'd invite them to dinner it was free entertainment.

On one of those dinner occasions, Ruth came in all flustered and announced she needed a CPR! Rita asked "don't you mean you need a CPA?" To which Ruth answered..."honey, we just got our tax bill...I need some CPR!"  Apparently they had cashed/liquidated some investments and had totally forgot about the tax impact. They had been planning to use the results of those investments to move into assisted living facilities. Sadly the husband suffered a stroke so those plans went by the wayside, not sure why....just did. Fond memories of my old neighborhood and days gone by. 

[old2soon]

      Not to worry but bernies new tax plan eliminates ALL that frustrating paper work and forms. It's so frikkin simple even you no have English you can do it. What did you earn last year? Send it all in and find $10000.00 to go with it so i can send it to more deserving folks. RIDE SAFE.