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Last year halfway through the year I switched from being an employee to being an independent contractor. When do I need to start paying the quarterly self-employment taxes?
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Apr 6, 2012 17:36
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As far as I am aware you should have started paying them last year. See the following link and click on "When To Pay Estimated Tax".
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Apr 6, 2012 18:07
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Question about the American Opportunity Credit for my wife's college time last year. One of the eligibility requirements is "You can pay expenses with a loan, including low-interest student and government subsidized loans, but be sure to deduct the expenses rather than the loan payments." She did indeed use a loan to pay for most of her expenses but her tuition statement (1098-T) doesn't specify how much of the loan went into the payments received in Box 1. Am I reading the above eligibility requirement correctly by assuming that if the entire amount in Box 1 was paid for by the loan, that amount does NOT apply for the American Opportunity Credit?
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Apr 7, 2012 01:30
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quote:This has nothing to do with my own taxes, but I was just curious about something I see constantly with a family business I know... That's not even close to a business expense, and would therefore be thrown out if it was ever scrutinized. quote:Question about the American Opportunity Credit for my wife's college time last year. Whether it was paid for with a loan or in cash is irrelevant. The amount in box 1, less any scholarships/reimbursements, is the amount you should use for the American Opportunity Credit. Keep in mind that the American Opportunity Credit cannot be used for graduate school. Admiral101 fucked around with this message at 03:07 on Apr 7, 2012 |
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Apr 7, 2012 03:04
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Admiral101 posted:Keep in mind that the American Opportunity Credit cannot be used for graduate school. Wait, is the restriction the first four academic or calendar years of post-secondary education? I took classes part time 2000-2005, but returned to school and attended full time as a sophomore in fall 2009 and graduated in summer 2011. Can I claim the American Opportunity Credit for 2009-2011? I'm pretty sure my tax law professor said only the first four calendar years are eligible. If that's not true, between amending my 2009-2010 returns and 2011 I should get back around $5k.
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Apr 7, 2012 07:17
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quote:Wait, is the restriction the first four academic or calendar years of post-secondary education? I took classes part time 2000-2005, but returned to school and attended full time as a sophomore in fall 2009 and graduated in summer 2011. Pub 970 ( http://www.irs.gov/pub/irs-pdf/p970.pdf ) see page 14. "The student had not yet completed the first 4 years of postsecondary education (generally, the freshman, sophomore, junior, and senior years of college) before 2011." I interpret that to mean that you would be eligible for 2009-2011. You should ask your tax law professor for some kind of citation.
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Apr 7, 2012 13:32
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Admiral101 posted:That's not even close to a business expense, and would therefore be thrown out if it was ever scrutinized. There's the IRS' problem right there. They don't have the manpower to catch it. A) The less then 1% chance the guy gets a field audit B) The chance the auditor picks that particular travel expense to inquire about C) The chance that the guy doesn't fabricate some documentation/get witnesses to state they met with him for business on those trips That's the frustrating thing about running a legit tax preparation firm, some guy down the block will happily cheat on his taxes for him and they both will probably never get caught. There are two firms within a mile of mine that work this way.
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Apr 7, 2012 17:29
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AbbiTheDog posted:There's the IRS' problem right there. They don't have the manpower to catch it. That in fact does happen too often. How are the rest of you fellow tax preparers holding up ? Just a little over a week to go !
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Apr 8, 2012 21:06
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seymore posted:That in fact does happen too often.
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Apr 9, 2012 00:12
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I just received a W-2 from an old employer in the mail. Yesterday, April 7th. It is postmarked April 4th. It is for a negligible amount of money (one paycheck). I didn't think I was going to get a W-2 from them this year and I already filed my taxes and got my refund. What do I do?
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Apr 9, 2012 01:05
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scribe jones posted:I've been drinking a lot more, which helps some Helps you? Or your clients?
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Apr 9, 2012 01:25
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Silver Nitrate posted:I just received a W-2 from an old employer in the mail. Yesterday, April 7th. It is postmarked April 4th. It is for a negligible amount of money (one paycheck). I didn't think I was going to get a W-2 from them this year and I already filed my taxes and got my refund. amend, or wait for them to send you a matching notice and deal with it then
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Apr 9, 2012 06:30
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Is it possible/feasible to change your permanent state of residence/domicile without actually physically moving there first? For example, if you plan to be out of the country for years and plan to move there when you return? Is it worth consulting with a tax attorney about? There are some decently significant state income tax implications.
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Apr 9, 2012 12:48
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I have a unique situation that I'd like some advice on. Well, actually, my fiance would like advice and I came here knowing you guys might be able to shed some light on the subject. Ok, so, my fiance has a crazy ex-boyfriend. Go figure. She also has an 18-month old baby, who does not belong to said boyfriend. However, the ex is on the babies birth certificate. There's all the background. She is working on getting him removed with a court ordered paternity test and such, but right now, he is claiming to be the father (I said he was crazy.) She started filing her taxes this week, late, I know, but while she was gathering documents she found out some interesting news. Her parents told her that he already claimed her baby on his taxes. She is the custodial parent and has been filing with all her jobs as having a dependent. Now she is thinking she is screwed because you can't claim a child on more than one return. He literally never sees the baby and really has no right to any tax money from her. What we want to know is, should she just go ahead and file her taxes and claim her child, or should she just go ahead and owe hundreds of dollars she doesn't have because her rear end in a top hat ex decided to claim more money for himself? Advice?
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Apr 10, 2012 00:55
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Oneday for Life posted:I have a unique situation that I'd like some advice on. Well, actually, my fiance would like advice and I came here knowing you guys might be able to shed some light on the subject. Just kidding!! Have her claim the kid. She'll need to paper file (if he's already filed claiming the kid's SSN then she'll get a reject if she tries to e-file). Have her attach a statement saying she's custodial parent, provides 100% support, etc. It will likely go to exam but she should win out in the end. Next year have her e-file ASAP so the ex can't do it again.
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Apr 10, 2012 01:28
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Awesome, I will let her know! Also, hopefully she won't have to worry about it later since he will be removed from the birth certificate and will have absolutely zero ties to the kid. Thanks man!
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Apr 10, 2012 02:35
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scribe jones posted:It will likely go to exam but she should win out in the end. It usually doesn't even go this far. The IRS sends a letter, you respond, life goes on. Expect two-three months for the refund money though.
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Apr 10, 2012 02:48
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AbbiTheDog posted:It usually doesn't even go this far. The IRS sends a letter, you respond, life goes on. Expect two-three months for the refund money though. A letter audit is still an audit  Totally unrelated, but Abbi since you're (presumably still) in Oregon: any idea how aggressive the DOR is about residency issues? Got a friend who is here most of the year but could probably claim NV domicile with a straight face, and I just wish I knew how likely she is to catch grief over it. I do know she is registered to vote here, which seems relevant.
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Apr 10, 2012 03:14
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Maybe this is a stupid question, but I've gotten pretty frustrated with irs.gov. What is the easiest way to find out how much I still owe on an installment agreement I've been paying down for a year or so now?
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Apr 10, 2012 03:42
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IntangiblePanda posted:Maybe this is a stupid question, but I've gotten pretty frustrated with irs.gov. You need to call, or look on your monthly statement.
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Apr 10, 2012 04:58
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scribe jones posted:A letter audit is still an audit There was a recent court case in OR where the voting registration was a crucial factor in determining residency. If I was being paid to prepare the return, I'd probably make them claim OR.
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Apr 10, 2012 16:14
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Doing taxes through H&R Block online. I lived in Maryland for all of 2011, but I worked in Virginia and also own a rental property in Virginia. (The rental property income was $-500 after factoring in deprecation and expenses, according to my Federal return.) I know I need to file a nonresident return for Virginia. When I first filled it out, it asked how much of my total wages were from Virginia. I entered the $50K in wages as well as the -$500 from the rental property. The system then told me I owed $2000 in taxes to Virginia. If I remove those wages, the amount owed goes to zero. Did I do this wrong? I paid Maryland income tax on my Virginia taxes all year long, so it's not like I had no withholding. I've moved between states before and I don't remember ever having to pay an amount like this to the nonresident state.
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Apr 11, 2012 01:48
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The Macaroni posted:Doing taxes through H&R Block online. I lived in Maryland for all of 2011, but I worked in Virginia and also own a rental property in Virginia. (The rental property income was $-500 after factoring in deprecation and expenses, according to my Federal return.) there should be a section where you tell it how much you paid MD and it credits you for taxes paid to another state.
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Apr 11, 2012 02:08
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I was expecting that, didn't find it. Going back to look. Fuckin H&R block. Edit: Thanks!
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Apr 11, 2012 02:21
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Tyro posted:Is it possible/feasible to change your permanent state of residence/domicile without actually physically moving there first? For example, if you plan to be out of the country for years and plan to move there when you return? Is it worth consulting with a tax attorney about? There are some decently significant state income tax implications. Given what few facts you have shared, I would say the answer is no. You have to do several things to proactively change your place of tax residency. Among the most important are actions like changing where you vote, changing your drivers license, having a new permanent address, where is your car registered, where are your active banking accounts located and so forth.
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Apr 11, 2012 03:05
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Searching around online doesn't seem to find me much of an answer, so I figure asking here might help. I'm wrapping up my tax return and I'm putting in all of my expenses and I've come to the point where it mentions reimbursement. I was reimbursed for some of my expenses, but that money is also previously entered into my return as income via a 1099-Misc form. Do I need to still put that in as a reimbursement or because it was filed as income it's already in the return? My intuition tells me that if it's already in as income that I shouldn't enter it again.
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Apr 11, 2012 05:41
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rockcity posted:Searching around online doesn't seem to find me much of an answer, so I figure asking here might help. Correct. If you are sure they included it in your Form 1099 then you do not have to pick it up yet again.
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Apr 11, 2012 11:43
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seymore posted:Correct. If you are sure they included it in your Form 1099 then you do not have to pick it up yet again. Ok, good, because putting it in again changed me from getting money back to owing just about as much, which is what was the red flag for me.
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Apr 11, 2012 13:39
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So if I have income of 0, I sold stocks at a loss of over $400, and TurboTax says I owe Federal and State $0, what is the worst that could happen if I didn't file state taxes this year? I ask not because I am lazy, but because I am broke and TurboTax already made me upgrade to figure out my investment sale. Will the state write me angry letters looking for their share of $0? Will they charge me? Long ago when I was a student, I didn't file state taxes on my income of less than $1,000, and then I moved to Florida where there are none, so maybe it is laziness at play, too. Sorry if this question sounds beyond stupid. Edit: \/\/\/\/ Awesome, thanks! 
Liebfraumilch fucked around with this message at 18:08 on Apr 11, 2012 |
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Apr 11, 2012 16:37
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Liebfraumilch posted:So if I have income of 0, I sold stocks at a loss of over $400, and TurboTax says I owe Federal and State $0, what is the worst that could happen if I didn't file state taxes this year? I ask not because I am lazy, but because I am broke and TurboTax already made me upgrade to figure out my investment sale. Will the state write me angry letters looking for their share of $0? Will they charge me? You could always just paper file the state returns. Print out a copy of the federal, staple it to the state, and mail them off. All state forms are online in a PDF format if you google them.
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Apr 11, 2012 18:03
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The issue is that the IRS and state won't necessarily know that your stock sales were a loss unless you file the return and tell them what your net gain or loss was. If you don't file a return at some point they will propose a balance due based on the gross sales proceeds (assuming that it is all 100% gain), and you will end up filing the return then to tell them otherwise.
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Apr 11, 2012 18:29
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A question about capital gains: I sold some stock this past year, and the thousand dollars of long term capital gains was included in my AGI. This wikipedia page indicates that since I was in the 15% income bracket, I shouldnt have paid any tax on those gains. I had my taxes prepared by a professional. I got a full refund because of withholdings, but since they were included in my AGI, the tax I paid included the capital gains. Does that sound right?
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Apr 11, 2012 22:07
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quote:A question about capital gains: The LT gain will remain in your AGI, regardless of whether you're paying 15% or 0% tax on it. Are you absolutely positive that you were taxed on that gain? Try to recalculate your tax liability from taxable income. Your accountant may or may not have also provided you with a Qualified Dividends and Capital Gains Tax Worksheet.
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Apr 11, 2012 22:24
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Admiral101 posted:Your accountant may or may not have also provided you with a Qualified Dividends and Capital Gains Tax Worksheet. I give my clients the mushroom treatment. Makes me seem smarter than I really am.
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Apr 11, 2012 23:03
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Ah. They were reported as short term and not long term. When I use the worksheet, the benefits are clear. Thanks.
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Apr 12, 2012 00:04
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I didn't receive a w2 since I was unemployed this past year, but I've been attending school. I understand I can get a credit on that tuition paid, but I'm sorta unsure about how to go about filing without a W2, with a 1098T. I went to my school but they fired the dude who helps students with their taxes. Now I'm here. What do I do to make sure I get the most out of my return without getting in  trouble
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Apr 12, 2012 20:48
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I need a tax attorney, and I have no idea how to pick one. Any reviews I find online sound too polished to be real. How do I know who to trust?
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Apr 12, 2012 20:50
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quote:I didn't receive a w2 since I was unemployed this past year, but I've been attending school. I understand I can get a credit on that tuition paid, but I'm sorta unsure about how to go about filing without a W2, with a 1098T. Graduate or undergraduate school? If you have no taxable income, and aren't eligible for the American Opportunity credit, there's no point because you'll receive literally no benefit.
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Apr 12, 2012 21:21
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Atarian posted:I need a tax attorney, and I have no idea how to pick one. Any reviews I find online sound too polished to be real. How do I know who to trust? Start with your banker/tax preparer (if you have one) and ask for a referral. If you have another attorney, ask them as well. Other than that just start calling, ask for a brief minute to discuss, and see if you like the guy/gal. You're looking at $300 - $500/hr for one, though, depending on how complex your issue is.
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Apr 12, 2012 21:53
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Atarian posted:I need a tax attorney, and I have no idea how to pick one. Any reviews I find online sound too polished to be real. How do I know who to trust? If you aren't going to tax court over your issue you probably do not actually need a "tax attorney". If it is an administrative or collection issue with the IRS then most likely your friendly local EA or CPA can assist you. OK most of us are going to be a little less friendly than normal over the next five days.
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Apr 12, 2012 22:31
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