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entris posted:Ha! I already had that on my desk! Hell, if you guys are going that route, try rev. ruling 2009-9 and/or 2009-20.
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Jan 13, 2012 23:32
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Hi this is probably really easy but- I live in a state that has income tax (GA), but for a few months this year I did some work remotely for a company in a state with no income tax, and I did not have them withhold anything for state taxes (oops). I understand that since I was a resident of GA, I owe them taxes on money earned while living here even if it was earned in a different state. How difficult is this going to be to file with H&R block online or whatever? Should I just report it as income earned in GA and say I paid no taxes to GA, and the software will take care of it? Not sure how to proceed.
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Jan 14, 2012 00:59
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Dreadite posted:Hi this is probably really easy but- Since you are a GA resident all income will be taxable to GA. Your software should know to include it on your state return.
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Jan 14, 2012 01:01
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AbbiTheDog posted:You can't claim a deduction for illegal activities. making payments to a blackmailer is not a crime as far as I know. also as a heroin dealer you aren't entitled to ordinary expenses, but you are absolutely allowed to deduct COGS to arrive at gross income on Sch C.
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Jan 14, 2012 01:32
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scribe jones posted:making payments to a blackmailer is not a crime as far as I know. also as a heroin dealer you aren't entitled to ordinary expenses, but you are absolutely allowed to deduct COGS to arrive at gross income on Sch C. No I'm pretty sure that you are not allowed to deduct ANY expenses associated with illegally gained income. Besides, good luck trying to prove your expenses. Everything is cash and it isn't like he is going to get receipts!
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Jan 14, 2012 01:34
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furushotakeru posted:No I'm pretty sure that you are not allowed to deduct ANY expenses associated with illegally gained income. yeah but COGS isn't an expense, it's a component of gross income. from some journal: quote:In accordance with Reg. [section]1.61-3(a), drug dealers compute gross income by subtracting cost of goods sold (cost of sales) for the tax year from total sales of the period. Thus, no differentiation is made here between legal and illegal activities when determining gross income. Cost of goods sold is merely characterized as a negative item of income, not a deduction item. This convention appears to generate a taxable income for drug dealers that is reduced by cost of goods sold.
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Jan 14, 2012 01:38
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Interesting, I'll have to
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Jan 14, 2012 01:44
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furushotakeru posted:Interesting, I'll have to If you flip through Pub. 17, you get all sorts of interesting things- items you stole have to be reported as income unless you return them to their original owner in the same calendar year you stole them, bribes are reportable income. The IRS really covers all their bases, the better to nail people for tax evasion.
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Jan 14, 2012 01:51
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quote:making payments to a blackmailer is not a crime as far as I know. also as a heroin dealer you aren't entitled to ordinary expenses, but you are absolutely allowed to deduct COGS to arrive at gross income on Sch C. Extortion isn't illegal in the US? Real question.
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Jan 14, 2012 02:41
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Admiral101 posted:Extortion isn't illegal in the US? Real question. extortion is a crime, being extorted is not
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Jan 14, 2012 02:42
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If I decide to 'stake' a player in a poker tournament, paying part of his entry fee and getting a portion of his winnings, how do I treat this income? Do both of us have to pay taxes on it?
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Jan 15, 2012 03:49
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Konstantin posted:If I decide to 'stake' a player in a poker tournament, paying part of his entry fee and getting a portion of his winnings, how do I treat this income? Do both of us have to pay taxes on it? Taxable to the staker/horse in proportion to the agreement. If your horse cashes, have him give Form 5754 to the casino so that they can send everybody W-2Gs with the correct amounts.
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Jan 15, 2012 05:10
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I'm a full time student who also works a seasonal job that pays quite well. As a result, I get taxed as though I make the biweekly amount year round, so I usually have huge withholdings. Last year was the first year I discovered the lifetime learning tax credit or whatever, and that massively increased my refund. Problem is that I hadn't taken it the prior two years, both of which were years in which I would have been eligible. Can I amend or something and get adjusted refunds for those years?
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Jan 16, 2012 15:02
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Feces Starship posted:I'm a full time student who also works a seasonal job that pays quite well. As a result, I get taxed as though I make the biweekly amount year round, so I usually have huge withholdings. Yes
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Jan 16, 2012 17:27
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furushotakeru posted:Interesting, I'll have to Here in Oregon I keep having oddball clients that lose their jobs decide to grow medical weed for their friends. I just tell them I'm going to make them put that on their tax returns, and that it's still illegal for federal purposes, and for some reason they don't come back the following year.
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Jan 16, 2012 17:46
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I thought you weren't required to disclose any illegal activity on your income tax forms because of the 5th Amendment. You have to report the income, but you don't have to report where it's from.
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Jan 16, 2012 20:37
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I'm perplexed and my school is being about as useful as a screen door on a battleship. I have my 1098 from school, where it reports on line 2 my tuition ($3449), and on line 3 the amount of a scholarship I won ($2000). I only used half of the scholarship to pay the amount of tuition that my federal loans didn't cover, and I saved the rest to pay in the same way for this quarter. I'm trying to figure out how I should report this and write it down. I'm aware it's not taxable if it's used for tuition, but if I only used half of it last year for tuition (the other half I used just last week to pay for tuition this quarter), does that mean that the half I didn't use in 2011 is taxable, even though I'd earmarked all of it to be used for tuition eventually? My school only gives me the automatic 'tuition-related expenses are not taxable!  ' email response. And does it also count as income, in this case? I have a W-2 from work I gotta file anyway and I'm not sure if the scholarship amount should feed into the total.I also have to figure out how to accurately report for the tuition tax credit. I assume that the amount left over when subtracting the scholarship from the tuition (in this case, $2449) would be the amount I can claim for that? Or... if the entire scholarship was earmarked for tuition anyway, could I just write it off the tuition amount and report only $1449? Sorry if I sound like a ditz about all this. This is the very first time I've had to deal with loans in paying for college (not a freshman, just got lucky with Pell Grants up till last year) and I feel like I'm suddenly in over my head. 
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Jan 16, 2012 22:54
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Later this year I'm going to be possibly renting out my current home and I'm trying to start understanding what laws and tax laws are going to apply to this. Is this a good list to start with? Does anyone have any recommended reading? Should I just hire a tax professional?
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Jan 16, 2012 23:27
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I have a question about Medicare and Social Security tax rates. I assume that my "medicare wages" and my "Social Security Wages" are just my total income (not self-employed, basic of most basic, I guess). TaxACT is telling me that my medicare tax withheld is supposed to be 1.45% of my wages and my social security is supposed to be 4.2% of my income. My W-2 says that I paid WAY more than 1.45% and 4.2% of those. Am I reading this wrong? If I did pay more than that, do I get that money back?
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Jan 17, 2012 05:01
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Capsaicin posted:I have a question about Medicare and Social Security tax rates. I assume that my "medicare wages" and my "Social Security Wages" are just my total income (not self-employed, basic of most basic, I guess). TaxACT is telling me that my medicare tax withheld is supposed to be 1.45% of my wages and my social security is supposed to be 4.2% of my income. Also, if the percentages come out to 2.9% and 10.4%, it's possible your employer included their payments. Edit: And if your employer really did screw up, you're going to need to get them to fix it. Small White Dragon fucked around with this message at 05:15 on Jan 17, 2012 |
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Jan 17, 2012 05:07
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Capsaicin posted:I have a question about Medicare and Social Security tax rates. I assume that my "medicare wages" and my "Social Security Wages" are just my total income (not self-employed, basic of most basic, I guess). TaxACT is telling me that my medicare tax withheld is supposed to be 1.45% of my wages and my social security is supposed to be 4.2% of my income. Boxes 3 and 5 are your medicare and social security wages on your w-2. Box 1, the "taxable income" part can be adjusted for various items like retirement plans and other items. Typically you can take box three, add adjustments from box(es) 12, and come to box 1.
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Jan 17, 2012 17:38
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Does anyone have an official link (on irs.gov or something) stating that the employer must mail your w-2 by Jan 31st? My google powers are failing me and my employer is insisting that they can mail them out in mid-february.
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Jan 17, 2012 19:15
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LeftistMuslimObama posted:Does anyone have an official link (on irs.gov or something) stating that the employer must mail your w-2 by Jan 31st? My google powers are failing me and my employer is insisting that they can mail them out in mid-february. http://www.irs.gov/pub/irs-pdf/iw2w3_11.pdf Page 3, top left. See note about extensions, though.
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Jan 17, 2012 19:22
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AbbiTheDog posted:http://www.irs.gov/pub/irs-pdf/iw2w3_11.pdf Thanks, hopefully that will rattle their cage enough to actually respond to me in a timely manner.
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Jan 17, 2012 19:46
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My family and I just bought a business, and our accountant tells us that we can take money out of the business, up to the amount we spent buying it, and not have to pay any taxes on this. In other words, instead of taking $50,000 or whatever in salary, we can just take the money back out and not have to pay any taxes on it. Does this make sense? I have never heard of this before.
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Jan 17, 2012 20:02
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quote:My family and I just bought a business, and our accountant tells us that we can take money out of the business, up to the amount we spent buying it, and not have to pay any taxes on this. In other words, instead of taking $50,000 or whatever in salary, we can just take the money back out and not have to pay any taxes on it. What your accountant is describing is a distribution, and yes it makes sense. That $50,000 is a part of your overall basis. Pretending that that $50,000 is your entire basis in the company, you can distribute $50,000 of the business's cash to yourself without paying tax (because the money you bought the business with is already post-tax). However, if you distribute that $50,000 to yourself, and your business then loses money, you will not be able to deduct the loss on your tax return because you have no basis. I'm assuming that this business is an S-Corp for simplification purposes. What you need to know is that profits and property contributions increase your basis in the company, losses and withdrawals decrease your basis. The logic is that your profits are going to be taxed regardless of whether you actually distribute them or not, so taxing them again when you make the withdrawal is effectively taxing you twice.
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Jan 17, 2012 20:13
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I have a tax document question: ETrade is telling my now that they're not going to send out their 1099s (DIV/INT) until Feb 15 when everything I can find says that they're required to send them by the end of January. Last year I didn't get them until almost the end of February and then they sent a correction in late March. Is there anything I can do (besides switching brokers and I'm working on that)?
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Jan 18, 2012 00:47
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qirex posted:I have a tax document question: ETrade is telling my now that they're not going to send out their 1099s (DIV/INT) until Feb 15 when everything I can find says that they're required to send them by the end of January. Last year I didn't get them until almost the end of February and then they sent a correction in late March. Nope. They have the right to file for extensions, and there's not much you can do about it. They've all seemed to migrate that way anyways. A lot of the other brokerage houses are doing the same crap.
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Jan 18, 2012 01:03
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Lame. Oh well, March is a 3-paycheck month for me so I'll just have that month be a really big spike on my Mint graph.
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Jan 18, 2012 02:14
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I got married in August last year, and I am confused as hell by W-4's. I'm making about 45k a year. My wife is making about 17k a year. How should we both fill out our W-4's?
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Jan 18, 2012 03:37
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Rakekniven posted:I got married in August last year, and I am confused as hell by W-4's. I sliced open a chicken in order to divine the answer from its guts, and the answer appears to be liver on top of colon. Hope that helps, cause I have no loving idea what that means.  In other words it is impossible to answer that question without a lot more information. furushotakeru fucked around with this message at 04:30 on Jan 18, 2012 |
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Jan 18, 2012 04:25
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Oh boy. This is the first tax year that I haven't been a freelancer so I have no idea how to deal with the stock I was awarded. I work for a company that awarded me RSUs and today was the first vesting date. Out of 32 shares that were supposed to vest today, etrade awarded me 18. I'm assuming because the tax rate on the RSUs is 41%. My question is- where did the other shares go? Did they just get re-absorbed by the company? Did the government take them? Do I have to pay any additional taxes other than capital gains when I decide to sell the stock? How on earth do I report this to the government?
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Jan 18, 2012 05:54
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pancaek posted:Oh boy. This is the first tax year that I haven't been a freelancer so I have no idea how to deal with the stock I was awarded. The 'missing' shares were sold to pay your taxes. The taxes withheld as a result will be reported on your W-2 for 2012. You don't have to report the remaining shares at all until you dispose of them.
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Jan 18, 2012 07:58
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Admiral101 posted:What your accountant is describing is a distribution, and yes it makes sense. Thanks for the response. Looks like I'll have to read up on what basis is and see if it makes sense to do this.
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Jan 18, 2012 08:19
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In Feb. 2011, I made my first ever backdoor Roth contribution for 2010. This means for my 2010 return I had to send form 8606 saying the 5000 that I put in the Trad IRA was non-deductible. But since it was done in calendar year 2011, the conversion to a roth didn't go on the 2010 form. Now, for my 2011 form I've done another backdoor roth and converted it both in 2011. So if I understand correctly, my basis in my Trad IRA for 2010 was 5000, and for 2011 I've then contributed another 5000 and converted it all to a Roth. Does that sound right? Have I screwed anything up?
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Jan 18, 2012 12:14
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Chin Strap posted:In Feb. 2011, I made my first ever backdoor Roth contribution for 2010. This means for my 2010 return I had to send form 8606 saying the 5000 that I put in the Trad IRA was non-deductible. But since it was done in calendar year 2011, the conversion to a roth didn't go on the 2010 form. That's fine as long as you don't have any other balances in an IRA anywhere
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Jan 18, 2012 16:20
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Bisty Q. posted:The 'missing' shares were sold to pay your taxes. The taxes withheld as a result will be reported on your W-2 for 2012. You don't have to report the remaining shares at all until you dispose of them. Box 12 on your W-2 for 2012 will have a code showing the gain on the stock sales. You also will get a sales statement from the broker that handled the trade, don't forget to put that on schedule D (and now Form 8949 as well) showing the short term sale, the only loss will be the commission on the transaction. If you forget this step the IRS will send you nasty letters asking for thousands of dollars, so be careful.
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Jan 18, 2012 17:47
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AbbiTheDog posted:Box 12 on your W-2 for 2012 will have a code showing the gain on the stock sales. RSUs not ISOs, Abbi. The withheld shares that were sold to cover never show up on a 1099-B either, that would make our lives too easy now wouldn't it?
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Jan 18, 2012 17:50
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furushotakeru posted:That's fine as long as you don't have any other balances in an IRA anywhere Excellent. Nope, before 2010 I had done no tax-advantaged savings, and besides the Backdoor Roths the only other tax advantaged account I have is a 401k. Thanks!
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Jan 18, 2012 18:25
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furushotakeru posted:RSUs not ISOs, Abbi. Oooh, skipped over that part. Trying to lay off coffee.
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Jan 18, 2012 19:09
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