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Thanks very much for that info, much appreciated.
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Jan 7, 2014 09:32
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My online sales via amazon/ebay did well this year, increasing roughly 3800% from last year. I estimate my net profit to be around 50k--I'll be getting my 1099-K soon and am working to finish adding up the last of my receipts now. This level of success came as a surprise and I didn't do anything different for my income taxes this year. On the positive side, I am sitting on a pile of cash from Christmas sales. How screwed am I, and what do I do for filling this year? How do I best handle things going forward?
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Jan 9, 2014 03:25
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Sup unexpected 4Q profit buddy. You still have enough time to file an estimated quarterly income tax payment for 4Q13. If you pay your 4Q estimated tax by January 15 you will not pay any penalties, presuming you correctly guess how much you owe. If this was not just all 4Q windfall, you should have been paying estimated quarterlies throughout the year and may face other penalties if this is your only source of income. I would consult a tax professional ASAP.
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Jan 9, 2014 03:41
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I'm single and last year in March 2013 I made $5000 in a short term contracted position with a travel company and from April, May, and June made around $7000 each month in a short term contracted gig with a local tech company. I'm 25 years old and I may still technically be a dependent under my father since I only graduated from a university last year so I am not sure what my requirements are to file taxes this year since, to be honest, I've never done it and just had my fathers accountant take care of it. Any suggestions on what I should do?
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Jan 9, 2014 23:26
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Busy Bee posted:I'm single and last year in March 2013 I made $5000 in a short term contracted position with a travel company and from April, May, and June made around $7000 each month in a short term contracted gig with a local tech company. I'm 25 years old and I may still technically be a dependent under my father since I only graduated from a university last year so I am not sure what my requirements are to file taxes this year since, to be honest, I've never done it and just had my fathers accountant take care of it. Any suggestions on what I should do? Was this a W-2 or 1099 gig? Also, we'd need to know any other sources of income you have (if any). If you want to try and figure out the filing requirements yourself if you are still being declared a dependent by your father, here you go.
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Jan 9, 2014 23:31
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ThirdPartyView posted:Was this a W-2 or 1099 gig? Also, we'd need to know any other sources of income you have (if any). If you want to try and figure out the filing requirements yourself if you are still being declared a dependent by your father, here you go. Pretty positive it was a W-2 gig since I remember federal taxes being deducted from my monthly deposit. I wish I could check my emails but my account was deactivated since my contract ended. And no other sources of income.
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Jan 9, 2014 23:39
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So yeah, you're going to have to file a return since you made ~$26,000 in wages, even if you're a dependent. Luckily, if they were all W-2 gigs, there's no issue about estimated taxes (as the payroll withholdings should suffice). The only real issue is that, if you're being declared as a dependent, you will be disqualified from most credits so it may behoove you to do a 'test return' both as a dependent and as an independent and if it being independent gives you a more favorable tax status (which, more-likely-than-not, it should), you should probably convince your dad not to claim you as a dependent.
Horseshoe theory fucked around with this message at 00:30 on Jan 10, 2014 |
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Jan 10, 2014 00:28
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ThirdPartyView posted:So yeah, you're going to have to file a return since you made ~$26,000 in wages, even if you're a dependent. Luckily, if they were all W-2 gigs, there's no issue about estimated taxes (as the payroll withholdings should suffice). The only real issue is that, if you're being declared as a dependent, you will be disqualified from most credits so it may behoove you to do a 'test return' both as a dependent and as an independent and if it being independent gives you a more favorable tax status (which, more-likely-than-not, it should), you should probably convince your dad not to claim you as a dependent. Interesting, is there an easy way to obtain the relevant tax forms from my previous employers without having to contact them? Also, I'm currently unemployed and am under my father's health insurance plan until I am 26 so I don't know if it would be beneficial for me to lose my dependent status?
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Jan 10, 2014 01:19
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Busy Bee posted:Interesting, is there an easy way to obtain the relevant tax forms from my previous employers without having to contact them? Also, I'm currently unemployed and am under my father's health insurance plan until I am 26 so I don't know if it would be beneficial for me to lose my dependent status? Your former employer has to provide you and the IRS a copy of your tax form and W-2. If the employer has your address, you'll get one in the mail. Or at least should. 26k of earned income means you won't/can't be your father's dependent. You'll be filing as single/claiming your own exemption. Admiral101 fucked around with this message at 02:19 on Jan 10, 2014 |
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Jan 10, 2014 02:16
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Busy Bee posted:Interesting, is there an easy way to obtain the relevant tax forms from my previous employers without having to contact them? Also, I'm currently unemployed and am under my father's health insurance plan until I am 26 so I don't know if it would be beneficial for me to lose my dependent status? The former employers should be sending you the W-2s in the coming days/weeks since you performed more than $600 of services as an employee for each. Do you have any access to the former employer's payroll systems? Because if so, you may be able to pull them up sooner. And I'm pretty certain the PPACA 26 year old requirement doesn't require you to be a dependent for tax purposes in order to be claimed under your parent's healthcare plan (my brother is under our parent's plan until February and he's independent tax-wise).
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Jan 10, 2014 02:20
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Thank you for your help. This will be my first time actually filing any taxes as a single so I am a little intimidated at the process but it will be okay. Just hoping that I won't be owing the IRS any money!
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Jan 10, 2014 02:30
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kefkafloyd posted:Sup unexpected 4Q profit buddy. Thanks fellow 4Q profit buddy! Yeah, about 75% of it was Q4 sales. Most of the rest would have been covered under my normal withholding, though I'll probably end up paying something. Anyone have advice on finding local tax professionals with experience with online sales?
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Jan 10, 2014 08:48
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If I have a self-directed HSA (contributed to with post-tax dollars), how do I get a refund for the excess Medicare and OASDI taxes I paid?
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Jan 10, 2014 16:10
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I work for a state college, and one of the benefits is waived tution for taking classes at any state college. I took 2 classes last year, which waived tuition at about $3,000. Is that amount deductible?
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Jan 10, 2014 17:32
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Lee Harvey Oswald posted:I work for a state college, and one of the benefits is waived tution for taking classes at any state college. I took 2 classes last year, which waived tuition at about $3,000. Is that amount deductible? You didn't pay anything, why would you think you could deduct anything?
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Jan 11, 2014 00:35
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Dumb(ish?) question. What's the depreciation schedule for inkjet printers? I'm looking at acquiring a new Epson 3880 (the current deal on refurbs is very hard to ignore) and at $850 I think it would pay for itself pretty quickly and help me cut costs in making prints of my photos and artwork. Normally these printers are $1200 so any tax benefits would just be icing on the cake. Can this qualify for section 179?
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Jan 11, 2014 06:34
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kefkafloyd posted:Dumb(ish?) question. What's the depreciation schedule for inkjet printers? I'm looking at acquiring a new Epson 3880 (the current deal on refurbs is very hard to ignore) and at $850 I think it would pay for itself pretty quickly and help me cut costs in making prints of my photos and artwork. Normally these printers are $1200 so any tax benefits would just be icing on the cake. Can this qualify for section 179? Just 179 it dude. If you decide not to do that it's 5-year property.
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Jan 11, 2014 07:06
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179 it is. Those printers are lucky to last three years before a head failure. Thanks.
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Jan 11, 2014 07:29
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I have two quick questions: 1) If I claim a $5,000 deduction for contribution to my IRA, does the money actually have to be deposited at the time I file my taxes, or just before April 15? I ask because I was thinking of just using my tax return to fund the IRA. Meaning I would file my taxes on Feb 1 claiming $5,000, and when I get my tax return ($7,000) I would just take 5,000 of it and put it in my IRA before April 15. Can I do this? 2) I have a full time job with an office, but I work from home. I have a home office that is used exclusively for work. Do I qualify for a Home Office deduction if I don't own a business? If it makes any difference, I have the opportunity to use my office at my work, I just chose not to. Thanks!
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Jan 12, 2014 20:08
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magic_toaster posted:I have two quick questions: quote:2) I have a full time job with an office, but I work from home. I have a home office that is used exclusively for work. Do I qualify for a Home Office deduction if I don't own a business? If it makes any difference, I have the opportunity to use my office at my work, I just chose not to.
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Jan 12, 2014 20:29
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Thanks!
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Jan 12, 2014 20:30
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baquerd posted:If I have a self-directed HSA (contributed to with post-tax dollars), how do I get a refund for the excess Medicare and OASDI taxes I paid? You don't. Only contributions made through pre-tax payroll deductions avoid FICA taxes.
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Jan 12, 2014 21:53
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Is it my AGI or MAGI that determines how much can be contributed to a Roth IRA?
Total Confusion fucked around with this message at 15:07 on Jan 13, 2014 |
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Jan 13, 2014 14:22
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I earned some income from affiliate sales in November but won't be paid until February. What year do I claim this income?
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Jan 13, 2014 20:27
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Gold and a Pager posted:Is it my AGI or MAGI that determines how much can be contributed to a Roth IRA? MAGI for Roth IRA purposes. There are several ways to calculate MAGI for different purposes so make sure you use the right one. FCKGW posted:I earned some income from affiliate sales in November but won't be paid until February. What year do I claim this income? The year you get paid.
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Jan 13, 2014 20:39
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Earlier this year I was living with my parents and owned clothes, a car, and a laptop. I had a private student loan from Sallie Mae of around 18,000 that was settled for 9,000. Obviously I'm expecting the forgiven 9,000 to be tacked on to this years tax return but would I possibly qualify for an insolvency exemption? Pretty much all my income at the time was going towards saving up for that lump sum I was able to settle for.
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Jan 14, 2014 03:52
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SaltLick posted:Earlier this year I was living with my parents and owned clothes, a car, and a laptop. I had a private student loan from Sallie Mae of around 18,000 that was settled for 9,000. Obviously I'm expecting the forgiven 9,000 to be tacked on to this years tax return but would I possibly qualify for an insolvency exemption? Pretty much all my income at the time was going towards saving up for that lump sum I was able to settle for. Insolvency is described in this pub: http://www.irs.gov/publications/p4681/index.html There is a worksheet towards the bottom of the page you can use to figure out how much, if any, you can not claim due to insolvency.
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Jan 14, 2014 06:03
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How on earth did you manage to settle a student loan for a portion of its value? 
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Jan 14, 2014 15:54
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furushotakeru posted:MAGI for Roth IRA purposes. There are several ways to calculate MAGI for different purposes so make sure you use the right one. OK. I've been trying to make sense of Publication 590 as it looks like any income excluded by the Foreign Earned Income Exclusion can still be counted when determining your MAGI and because the CPA at the expat tax service I've hired this year to do my return said that "You can certainly contribute to [a] Roth IRA in 2013 since you have earned income. [The] FEIE is just a tax treatment on your earned income based on your expat status; it does not stop you from [an] IRA contribution." But now based on the reactions I've gotten from the long-term investment thread (based on foreign earned income not being "compensation"), I'm starting to think my CPA is grossly uninformed. Total Confusion fucked around with this message at 16:55 on Jan 14, 2014 |
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Jan 14, 2014 16:53
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100 HOGS AGREE posted:How on earth did you manage to settle a student loan for a portion of its value? Private student loans were all the rage back in 2007/08. It wasn't a federal loan so when I defaulted on it I had the option to settle with a collector.
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Jan 14, 2014 17:29
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Gold and a Pager posted:OK. I've been trying to make sense of Publication 590 as it looks like any income excluded by the Foreign Earned Income Exclusion can still be counted when determining your MAGI and because the CPA at the expat tax service I've hired this year to do my return said that "You can certainly contribute to [a] Roth IRA in 2013 since you have earned income. [The] FEIE is just a tax treatment on your earned income based on your expat status; it does not stop you from [an] IRA contribution." From my quick reference desk book: "MAGI for Roth IRA purposes is AGI minus conversion income (any income resulting from the conversion or rolloever from a qualified retirement plan to a Roth IRA), plus: traditional IRA deduction, student loan interest deduction, foreign earned income exclusion, foreign housing exclusion or deduction, exclusion of US savings bond interest used for education, exclusion of employer-provided adoption benefits, domestic production activities deduction, and tuition and fees deduction." In other words, income excluded under FEIE is added back to AGI when calculating MAGI for Roth IRA purposes. Your reading of pub 590 is correct.
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Jan 14, 2014 18:48
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Pub 590 also says that you have to have taxable compensation to contribute to a Roth IRA, and foreign earned income is explicitly excluded from that. So I am still confused.
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Jan 14, 2014 19:21
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Does anyone have any recommendations for a free or inexpensive online Tax service that can deal with investments? Or am I stuck paying $49.99 for TurboTax Premier because I sold 3 stocks last year?
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Jan 14, 2014 20:07
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slap me silly posted:Pub 590 also says that you have to have taxable compensation to contribute to a Roth IRA, and foreign earned income is explicitly excluded from that. So I am still confused. You must have earned income, but I am not aware of any provision that states that it must be taxable. In fact there have been several times where I have had clients contribute to Roth IRAs in years that they have compensation but no taxable income.
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Jan 14, 2014 21:01
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Very basic question about withholding as I just got married. I've always claimed "1" because I was single and I liked getting refunds. My husband always claimed "2" because he'd rather have the money now. Going forward I'm curious as to what to claim so that we don't end up owing every year. We have no kids, neither one of made more than $65k last year (nor do I suspect either of us will this year) so would simply switching to "married" and still claiming "1" be safe for each of us? I did try the worksheet on the W-4 and either I'm dumb or getting married means I take home less money to avoid paying taxes at the end of the year - (it said to claim "0" and have an additional amount deducted to avoid owing.) Does that sound about right?
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Jan 14, 2014 21:08
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Another pretty basic tax question. My husband and I got married in 2013. Now this might be a really dumb question but I have never filed taxes jointly before. Do we literally have to file them at the same time? I already have all my tax documents and his probably won't come until the very last possible second. Can I file mine now (just going to use TurboTax) or do we have to wait until we get ALL the tax documents from BOTH of us to file? Also, I created a Roth IRA in my name and contributed $5,000 which was a gift. Do we have to do anything about that on our taxes? Thanks!
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Jan 14, 2014 21:27
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It's one filing that both of you fill out and sign together. If you're doing your taxes online or with software, you could start entering your stuff now, and his as you get it. For the Roth IRA, if you qualify for the "Saver's Credit" you will file Form 8880 and enter your Roth IRA contributions there. It sounds like you are a full time student, so you may not qualify for the credit. See http://www.irs.gov/pub/irs-pdf/f8880.pdf
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Jan 14, 2014 21:41
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Guy Axlerod posted:It's one filing that both of you fill out and sign together. If you're doing your taxes online or with software, you could start entering your stuff now, and his as you get it. Yep, I was a graduate student in 2013 so I guess I am not eligible for that credit. Why is that? I was technically a student but I got paid a stipend through the graduate school.
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Jan 14, 2014 23:20
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razz posted:Another pretty basic tax question. Nothing needs to be done with regard to the Roth. E: I *think* (not yet a CPA) 8880 is only needed if you have IRA, or IRA+Roth, contributions. Your Roth isn't deductible so nothing needs to be done anyway. Please correct me if I am wrong, taxmasters.
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Jan 14, 2014 23:26
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razz posted:Yep, I was a graduate student in 2013 so I guess I am not eligible for that credit. Why is that? I was technically a student but I got paid a stipend through the graduate school. For whatever reason the powers that be have decreed that students do not qualify for the savers credit  Esmerelda posted:Very basic question about withholding as I just got married. It depends on whether one of you is making significantly more than the other. If you are both making the same amount then I would not normally expect you to need additional withholding on top of Married 0 or whatever. I also find the W-4 worksheet to be almost worthless.
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Jan 14, 2014 23:56
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