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I just received a 1099-G in the mail; I've never seen this form before in all my years of filing taxes. I've already filed my taxes for 2012. From what I've found, this is supposed to be for unemployment; in 2011 I had filed for unemployment, was approved, and then was retroactively denied and subsequently paid back the single refund given to me in full. I've since moved states and was not planning on filing in that state because I earned no income there. Box 2 (Refund) says 161.00; is this something I need to amend? It says that there is 0.00 interest on it.
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Feb 7, 2013 04:47
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smackfu posted:Can someone explain why the mileage rate for health expenses is different and much lower than the rate for business expenses? I would have thought the cost to use a car for a mile would just be a single number. Is it not covering depreciation or something?
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Feb 7, 2013 11:26
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Holy poo poo I'm about to lose it. I had posted earlier about my W-2 being wrong for state taxes but it has gotten worse. I moved in June from North Carolina to Texas, HR hosed up the change in location and it wan't until October that they manually stopped withholding NC income taxes from my paycheck. Turns out they never actually fixed the location information and still have me listed as working in NC  . As I fight to get that corrected, they claim they can only correct the W-2 wages earned in NC back to when they stopped withholding and not to reflect my actual move date.I'm fairly sure that North Carolina doesn't give a poo poo where my residency is, if the wages are reported to them as being earned in NC they will expect me to pay them their share (~$1300 more) and not doing so would trigger an audit. If HR digs in and insists that they won't change it, am I simply hosed? The work wasn't being performed in NC because I telecommute and the headquarters is in VA. Is this the point where I need to start calling up for a tax professional in NC?
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Feb 7, 2013 18:01
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GobiasIndustries posted:I just received a 1099-G in the mail; I've never seen this form before in all my years of filing taxes. I've already filed my taxes for 2012. From what I've found, this is supposed to be for unemployment; in 2011 I had filed for unemployment, was approved, and then was retroactively denied and subsequently paid back the single refund given to me in full. I've since moved states and was not planning on filing in that state because I earned no income there. Box 2 (Refund) says 161.00; is this something I need to amend? It says that there is 0.00 interest on it. 1099-G is also used to report a state refund amount. Unless you itemized deductions in 2011 and deducted your state income tax as part of that, it doesn't concern you.
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Feb 7, 2013 18:48
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My tax guy claimed part of my law school tuition ($21k) in 2009 as Schedule C business expenses (I was a 1099 contractor before school), and last year the IRS took issue with it and I had to pay $5k. Now I just got a letter saying that the IRS disagrees with the same thing in 2010, for which it was $28k. The IRS now wants $6800 in back payments, plus $1300 in penalties because it's over the $5k limit for IRC 6662, plus $500 in interest. From reading online, it looks like claiming law school tuition as a business expense was not kosher (and I had told him I wanted to be completely legit), but is it possible to write off the tuition for that year? I wasn't quite sure from my quick search online, but it looked like I could get rid of up to $4k in tax liability if it was for school. If that's true, can I retroactively use it to get my 2010 tax bill from $6800 to $2800, which would also get rid of the penalty? I'm worried I may have given up the right to claim it by instead trying to use it on my schedule c form.
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Feb 8, 2013 00:05
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MomJeans420 posted:My tax guy claimed part of my law school tuition ($21k) in 2009 as Schedule C business expenses (I was a 1099 contractor before school), and last year the IRS took issue with it and I had to pay $5k. Now I just got a letter saying that the IRS disagrees with the same thing in 2010, for which it was $28k. The IRS now wants $6800 in back payments, plus $1300 in penalties because it's over the $5k limit for IRC 6662, plus $500 in interest. $4K DEDUCTION not $4K CREDIT Possibly could qualify for lifetime learning credit too, which is up to $2K CREDIT per year.
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Feb 8, 2013 00:19
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A $4k credit would have been nice but I'll take a deduction over nothing. Does anyone know if I've forfeited my right to claim it now, by claiming it as a schedule c expense instead? I'd hope not, but have no idea.
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Feb 8, 2013 02:12
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MomJeans420 posted:A $4k credit would have been nice but I'll take a deduction over nothing. Does anyone know if I've forfeited my right to claim it now, by claiming it as a schedule c expense instead? I'd hope not, but have no idea. You can still claim it if you qualify. You can either contest the audit findings (if you appeal within your 90 day period) of file an amended return with the credit/deduction. If I were you, I'd go after the tax preparer for your penalties though if you weren't aware of what he was doing. If you and he discussed it and you agreed to it, shame on you.
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Feb 8, 2013 03:02
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I was aware he claimed it but he told me it was legitimate. The frustrating thing is when I first started going to him I had said I wanted to be conservative and not claim anything that wasn't valid, precisely to avoid this kind of poo poo.
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Feb 8, 2013 21:04
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MomJeans420 posted:I was aware he claimed it but he told me it was legitimate. The frustrating thing is when I first started going to him I had said I wanted to be conservative and not claim anything that wasn't valid, precisely to avoid this kind of poo poo. Was he credentialed (CPA/LTC/EA)?
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Feb 8, 2013 21:24
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Maybe he totally misremembered the holding in Singleton-Clarke v. CIR and it was an honest mistake? Or else he's just a crook. Keep us posted 
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Feb 8, 2013 23:30
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scribe jones posted:Maybe he totally misremembered the holding in Singleton-Clarke v. CIR and it was an honest mistake? Or else he's just a crook. Keep us posted Here's what I would do (if I were you). Ask him to pay your penalties. The tax/interest you're probably stuck with, but you could also try asking for the interest as well. As part of it, ask him to amend your returns he did incorrectly (as "warranty work") to take the education credits. If he's credentialed, and he starts to complain, threaten him with a complaint to the state Board of Accountancy (every state has one). Also threaten him with an ethical complaint to said Board as well alleging that he knowingly prepared a fraudulent return.
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Feb 9, 2013 00:04
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Tomorrow I'm going to be helping my dad do his taxes online. He has a few confusing issues that I'll relay here as well as I can possibly remember them: Issue 1: His company was bought out at the end of 2012. The 401K account was closed and rolled into an IRA managed by the old company. He has a 1099 from them only showing the distribution. They said he'd receive a form in May to document the rollover - but that's a little too late for filing taxes. He's worried that the IRS will see the distribution, think that he went hogwild with it, and mess him up. The company's employee line told him not to worry about it. Issue 2: I'm using notes I took on a phone call, so make of this what you will. I don't even quite remember what the problem was: He has a FSA account managed by United Healthcare. In box 14 for his old company it says MDFSA followed by a dollar amount. In box 12a. for his new company it says DD - Non-Taxable.  Again, I don't really know what's up here.Thanks guys. Gaspy Conana fucked around with this message at 08:40 on Feb 9, 2013 |
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Feb 9, 2013 08:15
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Gaspy Conana posted:Tomorrow I'm going to be helping my dad do his taxes online. He has a few confusing issues that I'll relay here as well as I can possibly remember them: Check the distribution code on the 1099, that might give you a better idea of whether to be worried. If you want to wait for the rollover form your dad could always file for an extension, assuming he doesn't think he'll owe anything when he does file.
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Feb 9, 2013 08:33
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Gaspy Conana posted:Tomorrow I'm going to be helping my dad do his taxes online. He has a few confusing issues that I'll relay here as well as I can possibly remember them: The form they're referring to is probably the Form 5498, which simply tells the IRS that your dad did a rollover. The software should handle this for you without a problem, and if he rolled over the whole amount nothing should be taxable. The second issue - box 14 is info only, the DD code in Box 12 is info only as well (telling you how much in health insurance premiums the Company paid on your behalf). The FSA withdrawals are handled under Publication 969 http://www.irs.gov/publications/p969/ar02.html#d0e2879
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Feb 9, 2013 19:49
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When deciding to file taxes jointly or separately, what are the factors that might help you decide? My husband and I just got married last January, so this is the first time we could file together. I made about $24k and I think he made ~$35k. I thought we were going to have to file together because we had been planning on claiming ~20k in un-reimbursed losses from a fire, but since we're getting reimbursed for the rest of the losses this year I'm going to leave it off the taxes entirely. Now I'm guessing we should just see how our tax burden would look if we did it separately or jointly and pick the cheapest option?
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Feb 9, 2013 20:24
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dopaMEAN posted:When deciding to file taxes jointly or separately, what are the factors that might help you decide? My husband and I just got married last January, so this is the first time we could file together. I made about $24k and I think he made ~$35k. Filing jointly is going to be much cheaper. Trust me.
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Feb 9, 2013 21:39
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I want to file taxes on my own this year since it can't be that hard, right?  I'm a single medical student, so my 1098-T is payment of $22k. I am not taking out any loans for school, so this is all being paid with personal money. I have a small amount of interest from my bank accounts on my 1099-INT. I have a trust, but my K-1 is No Reportable Income. I own a house, but do not make mortgage payments. Those are all the forms I received this year. Last year my adjusted gross income was -1895.00, and got a $2.00 federal refund (lol). My question is, is it really as simple for me to just run through an online filer and plug in what it asks for? My return last year was a bit more complex, but I only received the 1098-T, 1099-INT, and K-1 this year. Secondly, can I qualify for the Lifetime Learning Credit? I asked the accountant that filed my taxes last year and he said, "no." As an aside, since I basically have no income at the moment, is it even possible for me to have tax deductions? I only know what other people have told me, which in my experience ends up being total bullshit, so is it true that if you don't have an income then you can't have deductions? What exactly is itemizing? Sorry for the dumb questions, reading stuff from the IRS, even their dumbed down stuff, confuses me. I don't want to make a mistake and then go to IRS prison.
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Feb 10, 2013 02:19
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Laminator posted:My question is, is it really as simple for me to just run through an online filer and plug in what it asks for? My return last year was a bit more complex, but I only received the 1098-T, 1099-INT, and K-1 this year. Secondly, can I qualify for the Lifetime Learning Credit? I asked the accountant that filed my taxes last year and he said, "no." You would probably be fine to use an online tax-filing system, unless the K-1 is very complex. You probably do qualify for the Lifetime Learning Credit, but it's a non-refundable credit, so without any income (and income tax liability) it won't do you any good. The only credit I can think of (aside from state-specific credits) that you could qualify for without any taxable income, is the American Opportunity Credit. As you're a Medical student, I assume you've already completed your undergrad, which would disqualify you from claiming that credit. As far as deductions, they are basically a dollar-for-dollar reduction in gross income. They work differently than tax credits. Deductions reduce gross income while credits reduce income tax liability. Each taxpayer is automatically allowed two deductions; the standard deduction and the personal exemption. These deductions are basically what the Department of Treasury decides are the average costs of living for an individual. Certain taxpayers may qualify to itemize. In this case, they add up certain expenses (real estate taxes, medical expenses, mortgage interest, state taxes paid, etc.) and if the sum of these exceeds the standard deduction ($5,950 for 2012), then the taxpayer may deduct that amount instead. Regarding your situation, its possible that you are not even required to file. It would still be a good idea to confirm this with a professional, but here's a small guideline from the IRS. http://www.irs.gov/Individuals/Do-You-Need-to-File-a-Federal-Income-Tax-Return%3F- Note that your state may still require you to file, even if you are not required to file federal.
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Feb 10, 2013 02:53
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Hi there, I posted earlier in the thread but didn't really get any clear advice. I got a computer to use for school and am looking to see if I can put it in. Turbotax tells me for this question, "Q6. Does an expenditure for a computer qualify for the American opportunity tax credit? A. Whether an expenditure for a computer qualifies for the credit depends on the facts. An expenditure for a computer would qualify for the credit if the computer is needed as a condition of enrollment or attendance at the educational institution.". One of my classes had an online component that required me to be online, from the course description "Web and classroom - Students receive instruction in the classroom and on the web with reduced classroom time." Does that mean I can claim that laptop because I did use it for school as well as the books? I paid for it all out of my own pocket and didn't get any aid if that matters.
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Feb 10, 2013 05:13
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Ramadu posted:A. Whether an expenditure for a computer qualifies for the credit depends on the facts. An expenditure for a computer would qualify for the credit if the computer is needed as a condition of enrollment or attendance at the educational institution.". One of my classes had an online component that required me to be online... I am not a lawyer. I am not a tax preparer.
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Feb 10, 2013 05:36
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Ramadu posted:Hi there, I posted earlier in the thread but didn't really get any clear advice. I got a computer to use for school and am looking to see if I can put it in. Turbotax tells me for this question, "Q6. Does an expenditure for a computer qualify for the American opportunity tax credit? The practical answer is typically your tuition is enough to "max out" the amount that qualifies for the credits/deductions anyways.
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Feb 10, 2013 18:44
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AbbiTheDog posted:The practical answer is typically your tuition is enough to "max out" the amount that qualifies for the credits/deductions anyways. Well, I'm going to a community college and my tuition was only 1060 because I only went in the fall.
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Feb 10, 2013 19:16
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I'm having a hard time figuring out whether I need to file state taxes as a full-year or partial-year resident. I moved permanently from state A to state B in December. However, I kept my lease (and paid rent) in state A through January 2013. The rules say that I'm a full-year resident if Iquote:A) Maintains a permanent place of abode in State A; and quote:terminates his or her status as a State A resident during the taxable year and establishes a residence outside the state.  To make it even more confusing, I was working remotely for a few months, so my new job paid taxes to State B while I was living in state A. Cuddlebottom fucked around with this message at 22:29 on Feb 10, 2013 |
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Feb 10, 2013 22:20
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In addition to a W-2 for a retail job, my girlfriend works as an independent contractor. It's a confusing setup though. She works out of a salon, by appointment, but they handle collection of payment and then pay her (she makes a % of each service). Her income is reported on a 1099-MISC and they don't take out taxes. Is this a situation where she can deduct mileage for having to drive to the salon and back for each appointment, or does the IRS consider her an employee of the salon and her driving is just a commute like any salaried job?
Hillridge fucked around with this message at 15:34 on Feb 11, 2013 |
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Feb 11, 2013 15:27
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Hillridge posted:In addition to a W-2 for a retail job, my girlfriend works as an independent contractor. It's a confusing setup though. She works out of a salon, by appointment, but they handle collection of payment and then pay her (she makes a % of each service). Her income is reported on a 1099-MISC and they don't take out taxes. Is this a situation where she can deduct mileage for having to drive to the salon and back for each appointment, or does the IRS consider her an employee of the salon and her driving is just a commute like any salaried job? Those would be considered commuting miles and nondeductible. Most salons have an owner of the location and the gals "rent" the chairs and all act as independent contractors. Make sure that the salon's cut has been subtracted from the 1099, and then any other expenses (state licensing fees, product, equipment, cell phone [if her clients primarily use her cell phone to contact her], etc.). Her miles to/from the bank, supply store, etc. would be deductible though. Since she's 1099, is she paying after-tax dollars for health insurance? That would be SEHI.
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Feb 11, 2013 17:17
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I have some questions that tie into the implementation of PPACA (aka Obamacare) next year; not sure if it's beyond the scope of this thread but I'm not sure where else to ask. I'm self-employed, and will be purchasing my health insurance through the new state exchanges beginning next January. 1. As far as I know, the health-insurance subsidies for 2014 will be calculated based on 2012 income. Is this correct? 2. The wording of the Act says that the subsidies will be based on Modified Adjusted Gross Income, as defined here. TowersWatson describes it thus: quote:Modified adjusted gross income: Modified adjusted gross income (MAGI) means adjusted gross income (within the meaning of IRC Section 62) increased by (i) amounts excluded from gross income under Section 911 related to certain "foreign earned income," (ii) tax-exempt interest the taxpayer receives or accrues during the taxable year and (iii) Social Security benefits (within the meaning of IRC Section 86(d)) not included in gross income under IRC Section 86. The final regulation reflects the amendment Congress made to the PPACA to clarify the MAGI definition as part of the 3% Withholding Repeal and Job Creation Act of 2011 and now includes Social Security benefits not included in gross income under IRC Section 86. However, this page talks about MAGI for the purposes of calculating IRA contribution thresholds, and says to arrive at MAGI, a taxpayer should add back in things like IRA contributions made, and some other deductions. Sooo, this is a longwinded way of getting to the meat of question 2: Will IRA contributions count toward MAGI for the purpose of the PPACA subsidies, or are there multiple definitions of MAGI for different things such as PPACA subsidies vs. IRA thresholds?
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Feb 12, 2013 08:17
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I think I know the answer to this, but my mom has confused me. 1098-E. If my stepfather is a cosigner on my student loans; he and my mom cannot take the deduction for paying interest if they do not claim me as a dependent, correct? Also my stepfather will not receive a 1098-E addressed to him?
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Feb 12, 2013 19:13
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I have a question about the 1098-T. Mine has Box 7 checked, which means that they included the tuition costs for my spring classes along with the fall ones. Do I include the cost of all of the books I bought for my spring classes along with the books I bought for the fall? By the way, I paid for most of my books out of pocket while the costs of the actual classes were paid using grant money, if that makes any difference. Also, it only lists half of the amount that I was actually rewarded in the scholarships/grants box. I assume they applied the spring costs, but didn't apply the actual aid that was used to pay it. Adnachiel fucked around with this message at 04:11 on Feb 13, 2013 |
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Feb 13, 2013 03:58
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If I filed my returns around Feb. 7th, when can I expect the refund to be direct deposited?
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Feb 13, 2013 08:32
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Peven Stan posted:If I filed my returns around Feb. 7th, when can I expect the refund to be direct deposited? Typically it can take up to 2-3 weeks depending on the number of returns that are being processed, although it took me only a week to get my refund from the IRS.
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Feb 13, 2013 14:00
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Ok, so mine is a pretty simple question, I just hope the answer is straight forward: This is my first year filing my taxes with my wife and i. For the most part our taxes are all straight forward W2s, just plug it into Turbo tax and done. We also have our forms to file our student loans as well, pretty straight forward there. My wife worked every Sunday as a Church organist at a Church in New Jersey (we live in PA) and she also did a 2 month internship. Both are 1099 MISC. Naturally, we were irresponsible and did not save any receipts, although we both use almost exclusively credit/debit card and rarely use cash. So we could dig up a paper trail of sorts if needed. More specifically, her weekly church job was a 70 mile trip each way, which i would think is beyond normal commuting. Can I file the mileage, and if so what paperwork do i need prepared to do so?
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Feb 13, 2013 17:37
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coreycoryecorey posted:I think I know the answer to this, but my mom has confused me. I'm not a tax anything, but I would think the only person that can take the deduction for paying interest is the person who actually paid the interest. Did your stepfather make the student loan payments? Duckman2008 posted:More specifically, her weekly church job was a 70 mile trip each way, which i would think is beyond normal commuting. Can I file the mileage, and if so what paperwork do i need prepared to do so? I'm almost positive you cannot. There's no rules on what is 'normal commuting'. There are some things in the laws about deducting the costs of travel to a temporary workplace that is not your normal place of work, but that doesn't seem to apply here. I put 800 miles a week on my car and would love to deduct the mileage, but it's not happening.
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Feb 13, 2013 18:06
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Duckman2008 posted:Ok, so mine is a pretty simple question, I just hope the answer is straight forward: When you leave your house and travel to your first job site for the day, that is a commute and is non deductible regardless of how many miles it is.
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Feb 13, 2013 18:41
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ThirdPartyView posted:Typically it can take up to 2-3 weeks depending on the number of returns that are being processed, although it took me only a week to get my refund from the IRS. The IRS processes all E file forms on the friday of that week, as long as you're efiled by noon on thursday (or close to it). The refunds will be direct deposited on the friday following the friday the returns were processed. Or at least it happened that way in the past.
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Feb 13, 2013 18:42
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AbbiTheDog posted:The IRS processes all E file forms on the friday of that week, as long as you're efiled by noon on thursday (or close to it). The refunds will be direct deposited on the friday following the friday the returns were processed. They aren't doing it that way any longer. With the introduction of modernized efile they are generally processing returns and refunds on a more real-time basis. Although they are no longer providing a timetable for refunds since they are implementing counter-fraud measures, so it might be a few days or it might be up to 3 weeks. 
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Feb 13, 2013 18:44
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I do my parent's taxes and they acquired a rental property in 2012. The property was not placed in service for rental until 2013. I'm aware that (to my knowledge) all improvements will be added to the cost basis and depreciated starting in 2013. However, what do I do with the expenses from 2012? I know they cannot be deducted in 2012. Do I add them to the cost basis of the home, or otherwise depreciate them? Does 'expenses' include things like buying new towels or a shovel for the garden? Thanks.
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Feb 13, 2013 20:42
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furushotakeru posted:They aren't doing it that way any longer. With the introduction of modernized efile they are generally processing returns and refunds on a more real-time basis. Although they are no longer providing a timetable for refunds since they are implementing counter-fraud measures, so it might be a few days or it might be up to 3 weeks. Ah. I haven't bothered to check up on that since we're just now starting to get returns out the door.
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Feb 13, 2013 21:22
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furushotakeru posted:When you leave your house and travel to your first job site for the day, that is a commute and is non deductible regardless of how many miles it is. Ugh, I wish they could consider stoping at McDonalds for coffee as a first site. Oh well, I appreciate the heads up. I'll just file my return and be done with it then.
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Feb 13, 2013 21:31
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coreycoryecorey posted:I think I know the answer to this, but my mom has confused me. They cannot take the interest deduction on your student loans if you are not their dependent. However, you can deduct the interest (these payments are a gift from your parents to you). The 1098-E will be addressed to you.
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Feb 13, 2013 22:01
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