When to expect your Federal refund?

If you file a “paper” return the IRS says that it should take from six to eight weeks to get your refund. An “electronically” filed return should cut your wait time in half. If you choose a “direct deposit” you can assume that that will cut as much as another week off your wait time.

When to expect your Minnesota refund?

We have found that Minnesota Income Tax Refunds, when both the Federal and State returns have been efiled, arrive a little sooner than the Federal refund.

Minnesota Revenue states in the Instructions for the Minnesota Property Tax Refund that those refunds should arrive by mid-August if you are a renter or mobile home owner and you file by June 15, or within 60 days after you file, whichever is later. They also state that your Property Tax refund should arrive by the end of September if you are a homeowner and you file by August 1, or within 60 days after you file, whichever is later. Remember that you can file for your 2005 Property Tax Refund (M1PR) up until 8/15/07.

Tulberg & Greenslit does not offer Refund Anticipation Loans (RALs). An e-file along with a direct deposit gives similar results while saving you money.

Paying your Taxes

You can pay your Federal, State and possibly County taxes with your credit card by clicking on the logo. You will be charged an additional 2.49% convenience fee. You can also pay by phone, 24/7 by calling 1-800-2PayTax. Tulberg & Greenslit is not affiliated with the Official Payments Corporation.

You can make payments from your checking account, without a fee, to Minnesota Revenue by clicking on their logo. Plan to make the payment a few days before it is due.

You can make payments from your checking account, without a fee, to the IRS by clicking on the Electronic Funds Tax Payment System (EFTPS) logo. You will have to enroll before you can make a payment, so we suggest you enroll one month before the payment is due. Future payments can then be made a day or two before they are due.

What’s my Minnesota 1099G amount?  You can check your prior year state refund amount on-line. We typically ask our new clients to bring us a copy of their prior year's tax return, but sometimes that is unavailable. The refund can matter, and is taxable if you deducted state income taxes paid on your prior year's 1040. The refund is not taxable if you didn't. There is also the in between situation where you received some benefit, but the benefit was less than the full state refund amount. Minnesota Revenue has gotten away from mailing the 1099Gs which saves the state some money. You can check on your Minnesota Revenue refund here: MN 1099-G This link goes off-line toward the end of the year, as Minnesota Revenue changes over for the next year. If that is the case, call: 651-296-3781.

Your non-cash donations are deductible. If your deduction is over $500, we need four things from you, the: 1) Acquisition date 2) Donation date 3) Acquisition price 4) Donation value. You can use IRS form 8283 as a guide of the required information.   A price list to value your donation can be found at: Cincinnati Goodwill and here: ARC

The rules for vehicle donations have changed. Generally, if the organization that you donate your car to is going to sell it, you are limited to what the sale brings, and you will not end up deducting the usually higher blue book value.

Click on the Goodwill icon to find a store near you.

Lee is a Boardmember of The Gillespie Center, a Senior and Community Center serving the Westonka Area that is located right across the street from Tulberg & Greenslit, PA.

A web site about Mound Westonka. It focuses on the Mound, Minnesota area and includes a little history, and some photos and pictures. The area includes western Lake Minnetonka, Spring Park, Minnetrista, Saint Bonfacius and Orono. The site includes the: Mound Westonka Blog where one can read about local happenings.

Penalties and Interest

The IRS will access additional charges if you do not pay on time. There are three main categories that most assessments fall into and we describe them to our clients this way:

1) Interest: Currently it is at a 8% rate. The question is, when did you owe the tax, and when did you pay it? They bill you 8%.

2) Failure to Pay penalty. If you owe money on April 15th (the 17th this year), and you did not pay it, they charge ½ percent per month. The trigger for this penalty is the due date of the return.

3) Failure to File penalty. If you don’t file your 1040 on time, and you don’t file a valid extension, you pay this penalty. The rate is 4 1/2 percent per month, for up to 5 months which would be 22 1/2 percent.

A “valid” extension in our experience is anything that is reasonable. For instance: If you owe $25,000 and had zero withholding, and made zero estimates, and make no extension payment, your extension might be challenged. A valid extension in this case would include a payment of $15,000 or more in our opinion.

Penalties can be appealed, in cases where a "reasonable cause" exists. Some example of reasonable cause are: A serious illness or unavoidable absence, IRS error, Inability to obtain records, Death, and there are others. For more see: IRS topic 653 and publication 594.

With effective interest rates like the above, you have an incentive to pay on time.

Vanguard PlainTalk® investment guides cover subjects such as: Investment plans, Investing for retirement, Saving for college, and Investment basics. Have a look by clicking on their icon.
Tulberg & Greenslit is not affilliated with Vanguard.