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furushotakeru posted:Just in case it wasn't obvious I was channeling Mitt Romney there, and I wasn't serious. drat, I call myself a professional writer, but it seems like I'm always the worst at gauging sarcasm in writing. Sorry Mr. President!
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Jun 9, 2012 00:22
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furushotakeru posted:Just in case it wasn't obvious I was directly quoting Mitt Romney there, and I wasn't serious. Fixed. Thanks safety net!
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Jun 11, 2012 15:20
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I've never dealt with quarterly taxes before or even known anyone who has so forgive me if my questions are stupid. I have no deductions or items, I basically just have a single small amount that barely qualified me as having to file. This shouldn't be difficult right? Edit: From what I'm reading I shouldn't even start paying them yet. I only made $500 for the quarter and this is the first quarter I've been receiving self employment income. Advice from a friend was to wait until the last quarter then pay, is this wrong? Space Crabs fucked around with this message at 10:34 on Jun 13, 2012 |
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Jun 12, 2012 14:33
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Space Crabs posted:I've never dealt with quarterly taxes before or even known anyone who has so forgive me if my questions are stupid. I think, if you're making enough to have to file, then you should file each quarter, or you automatically face a penalty.
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Jun 14, 2012 03:33
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Space Crabs posted:I've never dealt with quarterly taxes before or even known anyone who has so forgive me if my questions are stupid. If your withholding and other payments aren't enough to cover your tax liability for the year and you expect to owe $1,000 or more, then you should generally plan to make estimated payments. $500 of self employment income is not going to increase your tax very dramatically so you are probably fine for now.
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Jun 14, 2012 20:21
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quote:If your withholding and other payments aren't enough to cover your tax liability for the year and you expect to owe $1,000 or more, then you should generally plan to make estimated payments. $500 of self employment income is not going to increase your tax very dramatically so you are probably fine for now. You should probably just add the estimated tax penalty exceptions to the OP. Estimated tax questions have come up 3 times in the past two pages.
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Jun 14, 2012 20:50
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Admiral101 posted:You should probably just add the estimated tax penalty exceptions to the OP. Estimated tax questions have come up 3 times in the past two pages. This and multi-state tax questions are 75% of the things posted in here.
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Jun 14, 2012 22:22
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Also the formatting of the OP should be corrected - that much bold text is difficult to read.
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Jun 15, 2012 14:23
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We're 45 pages into this thread, if someone wants to start a new one they are welcome to.
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Jun 15, 2012 16:05
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I'd rather continue criticizing somebody else's OP rather than putting thought into my own.
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Jun 15, 2012 18:42
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I wasn't trying to be snarky, my guess is that the OP is missing a [/b] somewhere. I figured it was an easy thing to fix.
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Jun 15, 2012 18:48
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entris posted:I wasn't trying to be snarky, my guess is that the OP is missing a [/b] somewhere. I figured it was an easy thing to fix. Ha, you were right. It was actually just missing the /. I guess I should look at my own OP once in a while. Fixed.
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Jun 15, 2012 18:59
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http://www.straightdope.com/columns/read/3057/can-i-avoid-paying-a-tax-bill-by-writing-accepted-for-value-on-itquote:Dear Cecil: Heh.
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Jun 17, 2012 16:41
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Furushotakeru - this is going to be one of those questions where you slap yourself on your forehead and shake your head, but that's OK. I looked at my withholdings, and according to the IRS' web site unless I start withholding an extra $100 (biweekly) I'm going to owe over $1000 in taxes for 2012. I can handle this increase, but it took me a bit as a surprise. I've always taken two deductions for my federal taxes (living alone with no dependants) and a few thousand bucks to charity, and made out with a refund. I think that what I'm doing is basically taking two deductions, then by having the extra $100 withheld per paycheck, I'm removing two deductions, so it's like having zero deductions. It's cheesy, but it appears that it'll work to keep my tax liability less than $250 or so. I think what happened was I got a big refund in 2011, so I cranked back my withholdings, and now it might bite me in the rear end. Anyhow, bottom line: have there been some tax changes/increases going from 2011 to 2012? Like, credits that expired for people making mid-five figure salaries? Three-Phase fucked around with this message at 01:52 on Jun 19, 2012 |
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Jun 19, 2012 01:48
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Three-Phase posted:Furushotakeru - this is going to be one of those questions where you slap yourself on your forehead and shake your head, but that's OK. Not that I can think of off the top of my head. Most of the big changes are scheduled for next year, assuming Congress doesn't slap another band aid on and extend everything for another year.
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Jun 19, 2012 02:25
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furushotakeru posted:Not that I can think of off the top of my head. Most of the big changes are scheduled for next year, assuming Congress doesn't slap another band aid on and extend everything for another year. Huh. I'll need to take a look at the numbers. I think the problem may have been that I backpedaled too far on my withholdings.
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Jun 19, 2012 02:31
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Three-Phase posted:Huh. I'll need to take a look at the numbers. I think the problem may have been that I backpedaled too far on my withholdings. Probably. The IRS withholding calculator is pretty worthless IMO.
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Jun 19, 2012 02:36
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Not to mention that it also depends on the withholding tables that your employer's payroll people use. I've seen payroll people using 5 year old tables and poo poo.
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Jun 19, 2012 02:41
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How much of a hassle does getting relocation benefits cause with doing income taxes? I got paid by Amazon to move halfway across the country, and was reimbursed for 2 months rent and travel costs in addition to the service of movers, and they kept suggesting that a tax professional do my taxes next February; what do I need them to do specifically?
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Jun 19, 2012 03:14
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Multiple finance blogs state that you can withdraw funds from your Roth IRA tax-free as long as it is equal to or less than the total contributions that you have made. Some even state you can use your Roth as an emergency fund because of this fact. See http://www.mint.com/blog/saving/does-using-a-roth-ira-as-an-emergency-fund-a-good-idea-052012/ However, on the IRS 590 bulletin, I can't see this described anywhere. I do see that: "You generally can make a tax-free withdrawal of contributions if you do it before the due date for filing your tax for the year in which you made them." This would suggest you can only withdraw contributions you've made earlier that same year. I would like to withdraw the $2000 I contributed in 2006. Is there a way I can do this tax-free? Note: I would not qualify for early withdrawal otherwise. Black Jasper fucked around with this message at 20:10 on Jun 19, 2012 |
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Jun 19, 2012 19:54
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This year I had a job interview on the other side of the country. The company I interviewed with offered to reimburse my travel expenses. The flight was quite expensive, $900, and I was sent a 1099 misc that the company paid me ~$900. Is there anyway to not count this as taxable income? Seems like a pretty big rip off since I wasn't really being paid for anything, and now I'm paying taxes on something that I shouldn't have paid in the first place? 
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Jun 19, 2012 20:37
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murderDEATHkill posted:This year I had a job interview on the other side of the country. The company I interviewed with offered to reimburse my travel expenses. The flight was quite expensive, $900, and I was sent a 1099 misc that the company paid me ~$900. Is there anyway to not count this as taxable income? Seems like a pretty big rip off since I wasn't really being paid for anything, and now I'm paying taxes on something that I shouldn't have paid in the first place? Just report the $900 as income, with a $900 deduction offsetting it on the "miscellaneous income" part of your 1040.
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Jun 19, 2012 22:46
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furushotakeru posted:Probably. The IRS withholding calculator is pretty worthless IMO. Tell me about it. With the same setup, the IRS seems to think I'm going to owe $250ish. Taxslayer says I'm going to get like $500 back. 
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Jun 19, 2012 23:23
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Black Jasper posted:Multiple finance blogs state that you can withdraw funds from your Roth IRA tax-free as long as it is equal to or less than the total contributions that you have made. Some even state you can use your Roth as an emergency fund because of this fact. See http://www.mint.com/blog/saving/does-using-a-roth-ira-as-an-emergency-fund-a-good-idea-052012/ You can take out money from your Roth IRA at any time and only amounts in excess of your basis (total contributions less total previous withdrawals) are taxable or subject to penalty.
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Jun 19, 2012 23:25
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Is there any sort of risk for a penalty if you claim more allowances on the W-4 than what you calculate with the worksheet? I'm working a seasonal job this summer, and the total amount that I'll earn is below the standard deduction, so I shouldn't owe any taxes, but my employer is deducting as though I'll be making the same wages for the entire year. I don't think I'm exempt since I didn't have any income last year, so I didn't file a return. Could I just up the number of claimed allowances on W-4 so they stop withholding, or will that raise a red flag when it doesn't equal the total on the worksheet?
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Jun 21, 2012 22:37
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ChipNDip posted:Is there any sort of risk for a penalty if you claim more allowances on the W-4 than what you calculate with the worksheet? I'm working a seasonal job this summer, and the total amount that I'll earn is below the standard deduction, so I shouldn't owe any taxes, but my employer is deducting as though I'll be making the same wages for the entire year. I don't think I'm exempt since I didn't have any income last year, so I didn't file a return. Could I just up the number of claimed allowances on W-4 so they stop withholding, or will that raise a red flag when it doesn't equal the total on the worksheet? If you are sure you won't have a filing requirement then fill out a W-4 and claim exempt so they will stop withholding income taxes.
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Jun 21, 2012 22:40
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furushotakeru posted:If you are sure you won't have a filing requirement then fill out a W-4 and claim exempt so they will stop withholding income taxes.
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Jun 21, 2012 23:13
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ChipNDip posted:Does it matter that I had no income last year? The way it's worded on the IRS website, you need to have filled a return and received a refund for all the tax you paid last year in order to claim exempt this year. No it does not matter
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Jun 22, 2012 03:31
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I'm considering taking an early distribution from my 457 deferred compensation plan. As I understand it there are no tax penalties, just income tax on the distribution and a 20% federal withholding towards that tax? Is that correct?
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Jun 22, 2012 14:15
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Tyro posted:I'm considering taking an early distribution from my 457 deferred compensation plan. As I understand it there are no tax penalties, just income tax on the distribution and a 20% federal withholding towards that tax? Is that correct? Yes. 457 distributions are exempt from early withdrawal penalties.
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Jun 22, 2012 18:21
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Awesome, thanks for the confirmation. Wish I didn't have to pull the money out but that takes some of the sting out of it.
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Jun 22, 2012 21:32
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I'm starting a new job soon, and it's the first time that I'll ever be making real money and might have to owe something significant to the IRS. I'll have to fill out my W-4 soon, and last time the HR person just told me to enter 0 for my allowances, so I did. I'd like to figure a few more things out -- More exemptions = less is withheld in paychecks, correct? If so then I feel pretty silly for entering 0 for my last job! -- Taking a look at the form W=4, I get 1 exemption for being independent (field A) and 1 exemption for being single and having only one job (field B), therefore field H should be 2. For an example salary of $50k, how much less might be withheld from a weekly paycheck with 2 exemptions versus 0 exemptions? I would really rather write a tax check with less being withheld than receive a tax refund -- It's looking like I'll have an opportunity to itemize this year. I see here that this can further increase my exemptions! -- Is it possible to be penalized if my allowances aren't correctly calculated? Obviously I'm going to try to do this correctly, but what happens if something gets screwed up and I end up with more/fewer exemptions than I am entitled to? The consequence is just a change in withholding which should only affect how much is owed for 2012 taxes, right? Or could I be charged additional "idiot" fees by the IRS?
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Jun 24, 2012 09:08
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So I am so thoroughly confused here that my head is spinning. I mistakenly omitted $10 in interest income from an online peer to peer site, and because of this, the IRS took away my credits for Education credits and Refundable Education credit, is that how it works? An misstatement just eliminates them? And if that is indeed the case, is there any way to amend a return, add on the interest, and still receive credits? As I understand it, you can use those credits for four years of education expenses, but does one year of getting credit and then losing it still take up one of the years, or can you apply it again?
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Jun 26, 2012 18:40
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quote:So I am so thoroughly confused here that my head is spinning. The IRS doesn't just eliminate credits/deductions etc. Was there a 1098-T issued for your tuition? Did the IRS notice you receive say nothing about the tuition credit?
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Jun 26, 2012 19:10
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All it says about education credits is: "Since we changed your income and tax, we also adjusted the amount of the education credits. (AOC an LLC) on your tax return" (to zero, wtf) The next page says that they received notice of the $10 I did not disclose, and where it came from, which I admit I did not report. My taxable income bumps up from $16,949 to $16,959 which is too an arbitrary number to just zero out my education credits, and it says nothing of a missing 1098. Now that I think of it, I went to a trade school in 2010, and that is where the money went. All I got from them was a letter that says "To whom it may concern, Mr. Moneyball has paid $xxxx amount" etc etc and I actually kept that until not even a month ago. Dammit. Alright, so I suppose the plan will be to get another paid invoice from the tech school (they don't do 1098s apparently) go back to HR block and see what they can do for me. If it turns out I can't get the credit, I suppose I'll just apply it to 2011 and 2012 and use this year's return to pay for 2010. I thought I was going to be able to move out. 
Moneyball fucked around with this message at 19:26 on Jun 26, 2012 |
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Jun 26, 2012 19:16
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Don't go to HR Block. There should be a phone number on the notice, possibly with a name of an agent. There should be a section detailing what you should do if you do not agree with the notice. Call the IRS. Get details of what they need/want.
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Jun 26, 2012 19:32
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I was only saying HR Block because they did my return that year. I've requested a copy of my 2010 return, as well as a copy of the invoice from the school I attended. I couldn't find a number for anything other than requests of documents, but I'll look up and go to the nearest office as soon as I get those two documents, rather than HR Block
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Jun 26, 2012 19:43
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I am considering forming an LLC for my wife however this year she will probably not make enough in tax savings to cover the insane costs of starting one in Illinois. She is still going to get a 1099 from the people she freelances for (she does interior design for designers who get swamped with work) at the end of the year. My question is, do we have any avenues to 'expense' work related purchases? She works 90% from our apartment and we would like to buy her a new computer. At the end of the year could we deduct part of the costs from the rent and the total cost of the computer?
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Jun 26, 2012 23:33
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quote:I am considering forming an LLC for my wife however this year she will probably not make enough in tax savings to cover the insane costs of starting one in Illinois. She is still going to get a 1099 from the people she freelances for (she does interior design for designers who get swamped with work) at the end of the year. You may depreciate portion of the computer that you use for work. If the computer cost $1000 and she uses it 50% for work, she may depreciate $500 over 5 years. Or she can use special bonus depreciation and depreciate all $500 in one year (that is a temporary thing). As for the apartment rent/utilities: to qualify for a home office, you have to part of your home exclusively for business purposes. Meaning if your wife's "office" is a computer desk that she uses for work and you use for gaming/browsing/porn, you won't be able to legitimately deduct rent/utilities. See http://www.irs.gov/newsroom/article/0,,id=108138,00.html and associated links for more information. How much does it cost to create an LLC in Illinois that makes it so prohibitive? Couple things though: Assuming you don't get health insurance through work, you could potentially deduct any health insurance you purchase on your taxes as an AGI adjustment (which is vastly superior to itemizing). What sort of interior design does she do? Care to go into more detail? She's clearly some kind of subcontractor, but it's not clear whether you mean she's remodeling kitchens or designing the antechamber of somebody's new mansion. edit: don't forget to deduct the cost of any software she may use. Admiral101 fucked around with this message at 00:37 on Jun 27, 2012 |
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Jun 27, 2012 00:33
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I recently won a lawsuit and I am supposedly getting around $15,000, the money was originally supposed to be an inheritance (and triple that  ). My mother claims I don't have to pay tax on it since it's an inheritance, while I'm pretty sure technically it's something different because it's been through a lawsuit (damages?). So who is right here?
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