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Craptacular! posted:EXTREME BEGINNER BULLSHIT You have to report it as self employment income. Use schedule C-EZ. If you had business expenses associated with this job they go on this form as well.
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Feb 9, 2012 07:26
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I have a question about a moving related deduction. I recently moved in October of 2011 from Tampa, FL to Austin, TX to look for work. I didn't have a job offer lined up, but was able to find employment in late November of 2011. After looking online, I passed the distance test, but I don't believe I passed the second test since it requires that you be employed full time in the general area of your new job location for at least 39 weeks during the 12 months after you make the move. If I'm interpreting this correctly, I wouldn't be able to make this deduction until 2012. Is this correct?
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Feb 9, 2012 20:00
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Communist Q posted:I have a question about a moving related deduction. I recently moved in October of 2011 from Tampa, FL to Austin, TX to look for work. I didn't have a job offer lined up, but was able to find employment in late November of 2011. After looking online, I passed the distance test, but I don't believe I passed the second test since it requires that you be employed full time in the general area of your new job location for at least 39 weeks during the 12 months after you make the move. If I'm interpreting this correctly, I wouldn't be able to make this deduction until 2012. Is this correct? You are allowed to take the deduction in 2011 if you expect to meet the test over the 12 month period after your move, but if you later don't meet it (due to job unemployment, etc.) you are technically required to amend your 2011 return to remove the deductions for moving expenses.
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Feb 9, 2012 20:08
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I have a question about deducting student loan interest payments that were paid using an AmeriCorps education award. From my year term in AmeriCorps, Uncle Sam paid roughly $500 of my student loan interest and I received about $5400 to be applied towards my student loans (about $800 of which went to interest). This is fine and dandy, but I have to claim the ~$5800 on my 2011 taxes. I received 1098s from both of my lenders, but they only include interest paid directly by me. I want to deduct all of the interest paid through my AmeriCorps money since I have to claim all of it as income anyway. The lenders say the government paid them, not me, but technically this is my money since I got a 1099 for this "income," correct? I called my lender, and they didn't have an answer. I badly want to deduct all of the interest paid because I am getting boned on my return right now from this and I owe a bunch of money. Will the G-men show up at my door if I deduct this interest on my taxes?
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Feb 9, 2012 21:38
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c0mm posted:I have a question about deducting student loan interest payments that were paid using an AmeriCorps education award. If you received a 1099-MISC for these payments then yes you can deduct the interest.
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Feb 9, 2012 21:54
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furushotakeru posted:If you received a 1099-MISC for these payments then yes you can deduct the interest. I did and you are awesome. Thanks!
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Feb 9, 2012 21:57
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Question on tax status of educational reimbursement via work. All the info I search for on the Web stops at 2010. Up until then everything said that if you receive reimbursement for education below $5250 it is tax free, over that and it is. So, I was approved for $4825 that will be tax free? If for the upcoming year my next round is over $5250 would all of it be taxable or anything ABOVE $5250? Thanks
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Feb 9, 2012 22:23
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quote:Question on tax status of educational reimbursement via work. It has to be a part of a qualified tuition program. Meaning it's not offered only to select employees, not offered in lieu of cash compensation, there's a written policy establishing the guidelines for the reimbursement, etc. Also remember that if you are reimbursed for tuition, you cannot claim educational credits for tuition paid with the reimbursement. And most states just recognize the tuition reimbursement as cash compensation. If it does qualify for the exclusion, only any payments in excess of $5250 would be taxable. I also believe the payments must be paid directly to the institution, though I'm fuzzy on that aspect. There's a fair amount of detail regarding this. I suggest reading: http://www.irs.gov/publications/p15b/ar02.html#en_US_2012_publink1000193667 It's an employers guide, but still outlines the qualifications that need to be met. Admiral101 fucked around with this message at 00:45 on Feb 10, 2012 |
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Feb 10, 2012 00:34
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Maybe a bit of a weird question, any advice would be appreciated! Last year I began working as an independent contractor doing some online tutoring. I live in Ohio, and was physically located in Ohio when I worked, but the tutoring company is based in New York. When I received my 1099-MISC, I noticed that the state was listed as NY in the section where the payer's state ID was listed. Would this income be considered earned in Ohio or NY for the purposes of state income taxes? Thanks in advance!
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Feb 10, 2012 05:09
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rafq posted:Maybe a bit of a weird question, any advice would be appreciated! You may not believe this, but New York will probably take the position that since you are working outside the state for the " convenience of the employer " that your income should be subject to NY income tax. You of course would not pay Ohio tax, NY is very aggressive about this. You could try to get the payroll department to change the state ID, but I bet they will not.
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Feb 10, 2012 05:31
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seymore posted:You may not believe this, but New York will probably take the position that since you are working outside the state for the " convenience of the employer " that your income should be subject to NY income tax. You of course would not pay Ohio tax, NY is very aggressive about this. You could try to get the payroll department to change the state ID, but I bet they will not. That's almost as bad as CA's "market based nexus" stance. Come on Furu, get your state in gear.
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Feb 10, 2012 18:04
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Hi--looked around for the answer to this, but can't appear to Google adequately. My broker (Vanguard) does not appear to have included a stock sale I made last year on any tax document they provided to me. Were they supposed to, and, if so, on what type of form? Do I have to just figure out cost-basis and everything and report to the IRS myself?
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Feb 10, 2012 18:41
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AbbiTheDog posted:That's almost as bad as CA's "market based nexus" stance. Come on Furu, get your state in gear. Never run into that one myself, thank goodness. That particular problem is above my pay grade 
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Feb 10, 2012 19:15
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I'm in GA, so I qualified to use the free H&R Block program to e-file both my state and federal taxes. I got $140 back from Georgia and...owed the Feds $600.  Maybe this is totally normal? I really don't know. This is my first real job with a living wage (I always got refunds before because I was in a very low pay grade). But I didn't know you could make $45K a year and underpay the feds by that much per month. I don't own a home yet and am single with no dependents. I do have a decent chunk in a Roth IRA (well, "decent" by my standards), so maybe that's it, but I'm still surprised by the discrepancy between state and federal. I feel like I must have made a rookie mistake using the form somehow, but I double-checked everything, and really my situation is pretty simple. So...I don't know. America 
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Feb 10, 2012 19:59
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furushotakeru posted:Never run into that one myself, thank goodness. That particular problem is above my pay grade The example we got from some CA law professor in our state tax update: Say you have a Portland car repo company that only works in the PDX area, but is contracted by a CA sourced bank. Even if the repo guy NEVER steps foot into CA, if enough of his sales were generated by the CA bank, he'd need to file a CA income tax return for his business and pay at least the minimum $800. Yeah, that's going to fly up here. Enforcement for the FTB should be a cinch as well.
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Feb 10, 2012 20:11
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AbbiTheDog posted:The example we got from some CA law professor in our state tax update:
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Feb 10, 2012 23:38
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Small White Dragon posted:How is that even legal? The better question would be how is that even going to be enforced? I asked the speaker (some law professor for tax law at a business school) and her response was "Well, the tax preparers will make their clients do it to reduce their professional liability." I know my clients would throw something at me if I "forced" them to send CA $800. That's professors for you. Common sense? Where?
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Feb 11, 2012 00:56
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AbbiTheDog posted:The better question would be how is that even going to be enforced? Well their ability to enforce ends at their borders without cooperation from the other states, so I imagine they would levy the company's receivables from the CA bank that they are using to claim nexus.
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Feb 11, 2012 01:11
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I've a question for the proessional tax preparers in the thread. I'm working at a VITA site, and yesterday we had a woman come in who wanted us to amend her 2011 return (which we prepared last Friday). Apparently someone at the IRS told her she qualified for a special credit for people who receive Social Security Disability but have started working again. No one here has heard of this credit, and since she was headed to the local IRS office anyway for help amending her 2009 and 2010 returns (definitely out of our scope) we told her to have them help her with 2011 as well. So, can anyone shed some light on this credit?
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Feb 11, 2012 06:40
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urnisme posted:I've a question for the proessional tax preparers in the thread. I'm working at a VITA site, and yesterday we had a woman come in who wanted us to amend her 2011 return (which we prepared last Friday). Apparently someone at the IRS told her she qualified for a special credit for people who receive Social Security Disability but have started working again. No one here has heard of this credit, and since she was headed to the local IRS office anyway for help amending her 2009 and 2010 returns (definitely out of our scope) we told her to have them help her with 2011 as well. Never heard of it.
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Feb 11, 2012 06:58
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onefish posted:Hi--looked around for the answer to this, but can't appear to Google adequately. Yes, or contact Vanguard and try to get them to correct the problem.
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Feb 11, 2012 08:28
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urnisme posted:I've a question for the proessional tax preparers in the thread. I'm working at a VITA site, and yesterday we had a woman come in who wanted us to amend her 2011 return (which we prepared last Friday). Apparently someone at the IRS told her she qualified for a special credit for people who receive Social Security Disability but have started working again. No one here has heard of this credit, and since she was headed to the local IRS office anyway for help amending her 2009 and 2010 returns (definitely out of our scope) we told her to have them help her with 2011 as well. This link may help ( all I found quickly ): http://www.irs.gov/newsroom/article/0,,id=204070,00.html
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Feb 11, 2012 08:39
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Blue Scream posted:I'm in GA, so I qualified to use the free H&R Block program to e-file both my state and federal taxes. I got $140 back from Georgia and...owed the Feds $600. There really isn't necessarily a correlation between Federal and State income taxes/refunds. What you experienced is not unusual. If you want to you could talk to your payroll person/department and have them take out an additional $ 11/week to cover you for 2012 assuming your tax situation remains the same.
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Feb 11, 2012 08:45
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quote:I've a question for the proessional tax preparers in the thread. I'm working at a VITA site, and yesterday we had a woman come in who wanted us to amend her 2011 return (which we prepared last Friday). Apparently someone at the IRS told her she qualified for a special credit for people who receive Social Security Disability but have started working again. No one here has heard of this credit, and since she was headed to the local IRS office anyway for help amending her 2009 and 2010 returns (definitely out of our scope) we told her to have them help her with 2011 as well. It's possible she's thinking of the HIRE act, which gives the employer a $1,000 general business credit if they hire someone who's been unemployed for 60+ days. It also exempts the employer from social security tax on that employee's wages. All that information may have become mixed up in the woman's (or IRS agent's) mind. Other than that, I've got nothing.
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Feb 11, 2012 15:26
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furushotakeru posted:Well their ability to enforce ends at their borders without cooperation from the other states, so I imagine they would levy the company's receivables from the CA bank that they are using to claim nexus. They'd need to find it first. And we Oregonians take a dark view to our southern neighbors.
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Feb 11, 2012 17:50
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AbbiTheDog posted:They'd need to find it first. And we Oregonians take a dark view to our southern neighbors. If they were using work performed for a CA bank as the basis for the assessment, wouldn't it stand to reason that they would already know where the bank was? 
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Feb 11, 2012 18:00
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seymore posted:Yes, or contact Vanguard and try to get them to correct the problem. Okay, thank you! Will probably contact them rather than just going it alone.
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Feb 11, 2012 22:00
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I sold all 5 of my stocks this year in DRIP's I've held for years. Is there a way that I should send this to a CPA other than the final brokerage statement? Should I type everything into an Excel spreadsheet for the cost basis calculation or is a final statement acceptable? Or will a CPA shoot me if I hand him a final brokerage statement with nothing calculated? I'm asking around at work for a CPA as I think I'm finally going to bite the bullet and quit doing my own taxes from now on.
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Feb 11, 2012 23:00
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Evil SpongeBob posted:I sold all 5 of my stocks this year in DRIP's I've held for years. Is there a way that I should send this to a CPA other than the final brokerage statement? Should I type everything into an Excel spreadsheet for the cost basis calculation or is a final statement acceptable? Or will a CPA shoot me if I hand him a final brokerage statement with nothing calculated? The question is, do you want to get billed more or less. A CPA is always going to check your work, and he'll rely on it if it looks credible. If you make him do more legwork, he's just going to bill you more. Best thing is to give him as much information as possible.
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Feb 11, 2012 23:31
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Evil SpongeBob posted:Should I type everything into an Excel spreadsheet for the cost basis calculation Oh God, I would kiss my clients if they did this. If you do this, make sure to email the CPA/tax preparer the worksheet so they can double-check it as well. If you sold some of the stock prior, make sure to bring in those returns/statements so they can make sure the basis gets properly adjusted. DRIPs are a pain in the butt.
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Feb 11, 2012 23:35
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I worked from home as an independent contractor for all of 2011 and now it seems I have to pay the piper. I didn't make very much but I owe about $1300 according to turbotax. My question is what can I do to bring that number down. I've deducted some of my expenses (rent and some utilities) and read a bit about IRAs, but I don't know what my best option is.
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Feb 12, 2012 01:45
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quote:I worked from home as an independent contractor for all of 2011 and now it seems I have to pay the piper. I didn't make very much but I owe about $1300 according to turbotax. My question is what can I do to bring that number down. I've deducted some of my expenses (rent and some utilities) and read a bit about IRAs, but I don't know what my best option is. You're going to have to give way more information than that. What work do you do? What have you deducted so far besides the rent (hope you're not deducting rent for your personal apartment) and some utilities? Who pays for your health insurance? Do you keep a log of the miles you have driven for non-commuting business purposes? What equipment do you use for your business, if any? You may not have made very much, but remember you still owe a poo poo ton of payroll taxes on your profit, as well as normal income tax.
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Feb 12, 2012 02:31
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Admiral101 posted:You're going to have to give way more information than that. I worked for a company called Leapforce doing routine button-clicking online. I am deducting a proportionate about rent for the small space my "office" occupies in the house I share with my roommates and another portion for the utilities. I pay for my health insurance through the state of oregon, $9 a month, there is no driving that I could even construe as work-related, and I only use my computer to do the work. I made $12k last year.
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Feb 12, 2012 09:07
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I have what I hope is just a dumb question. I lived in Illinois for the first 6 months of 2011, but had no income during that period. According to http://tax.illinois.gov/individuals/FilingRequirements/index.htmquote:A part-year resident taxpayer (i.e., you were a resident of Illinois for part but not all of the tax year), must file Form IL-1040 and Schedule NR, Nonresident and Part-Year Resident Computation of Illinois Tax, if None of those conditions apply to me. I interpret this as meaning I do not have to file with Illinois this year. Is this correct?
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Feb 12, 2012 19:52
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quote:I worked for a company called Leapforce doing routine button-clicking online. I am deducting a proportionate about rent for the small space my "office" occupies in the house I share with my roommates and another portion for the utilities. I pay for my health insurance through the state of oregon, $9 a month, there is no driving that I could even construe as work-related, and I only use my computer to do the work. I hope you're keeping a lot of documentation to show that your "office" was being exclusively used for work and not anything personal. I suggest reading http://www.irs.gov/newsroom/article/0,,id=108138,00.html with special emphasis on the "exclusively and regularly" aspect. Same with utilities. If your computer is used for work, you can depreciate some of the cost of your computer. You can only depreciate up the proportion you use for work. EG: you use your computer 50% of the time for business, so you can only depreciate up to 50% of your computer. Depending on the cost of your computer, this may or may not have a significant impact (if the computer only cost $1,000, and you only used it 50% for business, it'll be trivial). Self employed health insurance premiums can be deducted from your AGI on line 29 of your 1040. This is assuming you don't have access to health insurance from any sort of 2nd job, your wife, or whatever. Also make sure a portion of the self employment tax is being deducted on line 27 (if you're using turbotax, this is probably already being done). But yeah, $1,300 sounds about right for self employment tax on $12,000 of what's mostly profit. Do you have any other income besides that 12000? If you continue to do that type of side work, you're going to want to start making quarterly estimated tax payments to cover your tax liability (see the OP). If you don't, you'll end up being subject to interest/penalty in future years for owing that much tax. Admiral101 fucked around with this message at 21:33 on Feb 12, 2012 |
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Feb 12, 2012 21:30
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I read that the regular deductions for all college tuition will be ended at 2011, is this true? Is it going to come back? I'm not talking about the lifelong learning credit. I already have a degree but I take community courses and being able to deduct the tuition was kind of awesome.
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Feb 12, 2012 21:40
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My wife owes a lot of unpaid and long overdue federal student loans. I understand that at some point they may garnish our tax return. My question is, will we get any notice that this going to happen, or will it be a surprise? Edit: I think I found my answer: http://www.fms.treas.gov/debt/questions_top_pub.html posted:How does a debtor know that he/she is in the Treasury Offset Program delinquent debtor database? Dagon fucked around with this message at 22:30 on Feb 12, 2012 |
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Feb 12, 2012 21:59
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seymore posted:This link may help ( all I found quickly ): Thanks. Looking at that I'm thinking she was confused about the requirements for the Credit for the Elderly or Disabled (Pub 524).
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Feb 12, 2012 23:45
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timn posted:I have what I hope is just a dumb question. I lived in Illinois for the first 6 months of 2011, but had no income during that period. According to http://tax.illinois.gov/individuals/FilingRequirements/index.htm I would say you are correct.
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Feb 13, 2012 01:40
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Merou posted:I read that the regular deductions for all college tuition will be ended at 2011, is this true? Is it going to come back? The deduction for college expenses is one of the things that is constantly under threat of expiration along with stuff like the $250 deduction for teachers who spend money on their classrooms, etc, that usually end up being extended for a few more years. That said, you can never truly predict whether something will pass or not, especially in an election year.
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Feb 13, 2012 01:43
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