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My wife and I filed jointly for 2014. In the last quarter of 2015, she became self employed. For the 2015 Estimated Tax Worksheet for the 1040es, what do we put for her Expected Adjusted Gross Income on line 1? The instructions say to use your last year's return to get the estimated adjusted gross income. If we filed jointly the year before, how do we figure this for her as an individual?
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Jan 15, 2016 06:18
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FogHelmut posted:My wife and I filed jointly for 2014. In the last quarter of 2015, she became self employed. For the 2015 Estimated Tax Worksheet for the 1040es, what do we put for her Expected Adjusted Gross Income on line 1? The instructions say to use your last year's return to get the estimated adjusted gross income. If we filed jointly the year before, how do we figure this for her as an individual? What? You're not filing jointly in 2015 as well? If you're filing jointly, you are one taxpayer.
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Jan 15, 2016 13:49
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Are spouses who are residents of separate states able to file jointly?
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Jan 15, 2016 14:52
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Admiral101 posted:What? You're not filing jointly in 2015 as well? I don't know. Is it better to do it jointly? She is self employed now. I'm not sure which is better. But she has to pay the quarterly estimated taxes, which is conveniently due today. They want you to estimate it on last year's taxes, which doesn't really work in this situation. Tell me if I'm wrong, but now she pays regular income taxes + self employment tax. So she is paying 15.3% more this year, or am I missing something? I guess - is it a requirement to use the 1040es form to calculate the estimated taxes owed? Since this self employment has only been in the last quarter, can't I just reasonably take the total income for the year - taxes already paid and use that? FogHelmut fucked around with this message at 17:14 on Jan 15, 2016 |
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Jan 15, 2016 16:52
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Hello and good day, is there any way for me to find out an employers state tax ID number (for Virginia,) ive been search high and low with no luck. The company is Nordstrom Inc.
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Jan 15, 2016 20:44
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Isn't it on your W2?
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Jan 15, 2016 21:22
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FogHelmut posted:I don't know. Is it better to do it jointly? She is self employed now. I'm not sure which is better. quote:Generally, you will not have to pay a penalty for 2014 if any of the following apply.
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Jan 15, 2016 22:51
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FogHelmut posted:I don't know. Is it better to do it jointly? She is self employed now. I'm not sure which is better. You're way overcomplicating this. Just pay in (between estimates and withholding) at least the same amount as the number that was on line 63 of your 2014 1040. This will safe harbor you against interest/penalty.
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Jan 15, 2016 23:33
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Guy Axlerod posted:Isn't it on your W2? It will be, but I am knee deep into buying a house and my lender needs me to file like now.
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Jan 16, 2016 00:25
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Bojanglesworth posted:It will be, but I am knee deep into buying a house and my lender needs me to file like now. Just call HR and ask them. Or a manger or someone who might know or know someone who does. Or dig up an old W-2, it's unlikely it changed.
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Jan 16, 2016 04:54
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SiGmA_X posted:https://www.irs.gov/publications/p505/ch04.html Admiral101 posted:You're way overcomplicating this. Just pay in (between estimates and withholding) at least the same amount as the number that was on line 63 of your 2014 1040. Thanks, we ended up sending a check for a little more just to be extra safe. If its too much we will get the refund when we do our returns. We are meeting with an actual accountant next week.
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Jan 16, 2016 17:00
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Bojanglesworth posted:It will be, but I am knee deep into buying a house and my lender needs me to file like now. You lender wants you to file your taxes before tax filing even opens? That is pretty demanding
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Jan 16, 2016 22:16
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BEHOLD: MY CAPE posted:You lender wants you to file your taxes before tax filing even opens? That is pretty demanding Yeah, tell them to go gently caress themselves, you're not filing until the deadline. Unless they're a crap lender or you really shouldn't be buying a house, they should be fine with it. Source: myself buying a house this time of year.
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Jan 17, 2016 03:01
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BEHOLD: MY CAPE posted:You lender wants you to file your taxes before tax filing even opens? That is pretty demanding Apparently not the only ones, had somebody come in today who apparently was getting pressure regarding FAFSA stuff that was phrased to imply they somehow had to file their 2016 taxes in 2016. I'm guessing they meant they needed an estimate, otherwise I told my client they were asking for something blatantly illegal/impossible considering it's kind of hard to be utterly certain how much money you make in a year before the loving year is actually done. Yeesh you'd think people in the financial industry would know a little better. Bojanglesworth posted:Hello and good day, is there any way for me to find out an employers state tax ID number (for Virginia,) ive been search high and low with no luck. The company is Nordstrom Inc. I know there are federal EIN search engines (Nordstrom Inc is EIN#91-0515058 for what it's worth) but I couldn't find the Virginia equivalent myself. Even an old W-2 should have the number on it though, those don't usually change once they are registered. Note you DO need a current W-2 to file taxes, any tax place that lets you file with pay stubs is breaking the rules and likely to get you in deep crap with the IRS (there's a reason you have to staple the things to a paper return you mail in). You can technically file without one, but it requires you to pretty much wait until the middle of February and have proof you tried to get the thing from your employer then sign a form related to it; I've mainly done it for people filing their taxes years late after leaving the employer in question and getting a W-2 transcript from the IRS as a replacement since oddly enough the IRS doesn't have as many issues if you use the numbers they already have themselves. Kinda bad option though because it doesn't have the state info in the transcript though.
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Jan 17, 2016 08:40
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Yeah, they need my 2015 taxes to be done before I can close. I have freelance income in addition to my salaried job, so the lender wants to be able to show that income. I made about $15k more in freelance income in 2015 than I did in 2014, so I guess it kinda makes sense. Another thing that is concerning to me is they are suggesting that I write off hardly anything so on paper my income looks higher. I would normally write off a good bit of my expenses, all of which are well within my legal right to write off. I understand why they would want me to do that, but in my eyes all I see is me throwing away money.
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Jan 18, 2016 21:08
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Find a new lender. Now.
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Jan 18, 2016 21:28
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No Butt Stuff posted:Find a new lender. Now. Really? It seemed a little odd to me but is it cause for more concern than I thought?
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Jan 18, 2016 21:34
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They're looking out for their best interests, not yours. Bigger income = Bigger loan = bigger payday for them.
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Jan 18, 2016 21:48
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Bojanglesworth posted:Really? It seemed a little odd to me but is it cause for more concern than I thought? "Pay more taxes so your income looks higher." No. That's not how this is supposed to work. Shop around, find a new lender. gently caress that guy. e: Were you not already pre-approved on your existing income?
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Jan 18, 2016 21:55
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So apparently TurboTax no longer includes 1099s in its free service. Any decent alternative or should I just pony up? I itemize but it's otherwise not a complicated return.
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Jan 18, 2016 21:56
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Hello all, First full year of employment and my employer withheld 8318 for Federal taxes, but TurboTax says that I owe 8700. I get if my employer withheld assuming I would take the standard deduction, but I would have thought that I would end up overpaying because I also get a 2500 deduction for paying student loan interest. Why didn't they withhold more if I was going to end up owing?
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Jan 18, 2016 22:35
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Stinky_Pete posted:Hello all, Couple things here: First they only withhold as much as you tell them to when you fill out your W-4. If you wrote down more allowances than you ended up having you end up paying. If you are a single individual and claiming yourself you should have put Single and 1 to break even or get a refund. If you put more allowances down, or if your parents ended up claiming you then you end up owing. Second, there's a difference between deductions and credits. Deductions reduce the income you're taxed on, credits reduce your tax liability. So that $2,500 from loan interest reduces your income. If you're in the 10% bracket for instance that means you only save $250 on your taxes.
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Jan 18, 2016 22:49
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Epi Lepi posted:Second, there's a difference between deductions and credits. Deductions reduce the income you're taxed on, credits reduce your tax liability. So that $2,500 from loan interest reduces your income. If you're in the 10% bracket for instance that means you only save $250 on your taxes. I understand that part, but I meant that I expected to break even as a single filer, and then presumably get a little bit of return, as opposed to owing. Anyway, I talked to our accountant and she explained what an "allowance" is, which as usual has nothing to do with the colloquial usage. I accidentally had 3 when I filled out my W-4. I must've thought I was head of my own household because at no location on the form was it implied that that's mutually exclusive with filing as single. There should really be a taxes.gov for first-time filers or people filling out a W-4 for the first time
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Jan 19, 2016 00:05
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No Butt Stuff posted:"Pay more taxes so your income looks higher." This does sound like a load of horseshit, but if you are stuck with these guys due to timing, you can file their way now and then amend later to take your deductions.
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Jan 19, 2016 00:14
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ChineseBuffet posted:This does sound like a load of horseshit, but if you are stuck with these guys due to timing, you can file their way now and then amend later to take your deductions. Ohhh, I didn't even think about that. Yes, I was pre-approved on my income; but since a portion of my income isn't paid the same way as my salary income I have to provide tax returns including said income.
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Jan 19, 2016 00:26
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Bojanglesworth posted:Ohhh, I didn't even think about that. Yeah but you should be able to provide them from last year. Are you stuck with them? If not, tell them to pound rocks and go find someone else. (Just do not use Cherry Creek Mortgage, because gently caress THEM)
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Jan 19, 2016 02:35
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ChineseBuffet posted:This does sound like a load of horseshit, but if you are stuck with these guys due to timing, you can file their way now and then amend later to take your deductions. Sounds kind of like lending fraud to me.
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Jan 19, 2016 03:44
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No Butt Stuff posted:"Pay more taxes so your income looks higher." Yeah, I admit to not being as familiar with the loan end of things, but this stinks; I'm highly suspicious on basic principle of anybody suggesting you somehow "game" things with your tax return. If they want to see how much income you make pre-expenses it's right at the top of the Schedule C before you deduct expenses anyway, why tell you to gently caress yourself over with extra tax bills? Not to mention plenty of businesses take a loss for tax purposes the first year or two anyway, and if I know that just from doing the taxes I would think any sane lender should be familiar with that and take it into account instead of suggesting you not report expenses. Stinky_Pete posted:I understand that part, but I meant that I expected to break even as a single filer, and then presumably get a little bit of return, as opposed to owing. We should probably add something to the OP about W-4s honestly. Say something akin to "take one allowance if you are filing by yourself, add one for every other person (spouse/dependents) you will claim on your next tax return. Make sure to have some money available by next April the first time in case it wasn't enough, file a W-4 with fewer allowances to fix next time as needed". And while I'm coming up with things everybody should know, "if you take an early distribution from a 401K/IRA, do NOT trust that automatic 10% withholding to cover the whole thing on your taxes". Seriously, practically every return I file with a large bill due boils down to messed up withholding or taking an early distribution. Or new independent contractor/sole proprietor not knowing how things change from having everything handled on the W-2, but I can hardly blame people for misunderstanding that.
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Jan 19, 2016 04:14
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Stinky_Pete posted:There should really be a taxes.gov for first-time filers or people filling out a W-4 for the first time https://www.irs.gov/Individuals/IRS-Withholding-Calculator
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Jan 19, 2016 05:44
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MadDogMike posted:Single vs. married on the W-4 just affects your withholding; marking "married" reduces the withholding rate. It's not actually required to choose the married withholding rate even if you are married, many married people use single to withhold extra money for various reasons. I'd just look at your refund vs. your take home pay; if your refund is really big you can make the switch and get less withheld. You're referring to line 3 on the W-4, right? Part of my reason for wanting to mark down "married" is that we have our green card interview coming up and they put a lot of stock into joint finances, but I just realized that since her petition is in process she's considered a non-resident alien so I have to stay "single" anyway. Looking ahead, what's the difference between "single" and "married but withhold at single rate"? Generally speaking I'd rather err on the side of withholding a little too much than a little less than needed.
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Jan 19, 2016 18:06
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I don't think your company files your W4, so there's really no difference.
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Jan 19, 2016 18:28
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I work for a small company, of less than 10 employees. We do a lot of independently contracted work for local businesses around the state, and I'm usually never reimbursed for anything other than just making my hourly wages. I'd like to ask if some of this can be itemized and wrote off in the 2016 Tax season. I've worked for a state-funded college so I'm used to the idea of keeping track of everything I do (I had a company phone & used a company vehicle often and had to keep track of everything). Out of all of this what can I write off? What records do I need keep and forms should I fill out? *I use my own vehicle to travel to surrounding towns. I am not reimbursed for gas/milage by my employer. I will need to buy snow tires for my vehicle soon to get around during the Winter, my vehicle is primarily only used for work. *I use my personal cell phone for many work-related calls/texts (Roughly 4-8 hours a week on the phone, and clients text me at all hours with quick issues or requests). The cell phone is on my mother's family plan because it saves me an extra $40 a month, it's not in my name. *I bought a Macbook Pro out of pocket for personal use, but because we've expanded a little I no longer have a computer at work, so I use my personal laptop 6-10 hours a day for Work. *I've bought my own backup drives to save work-related data (IE: Final Cut projects, which can be gigs of data each). Drives are $70-$100 and I've got two (I have receipts for both) Generally the only thing I'm reimburse for are things that are billed directly to a company, which I'm not worried about. But almost everything related directly to my day-to-day desk job + travel is unpaid, and just gas alone is costing me chunks of my paycheck (Especially on days where I have to drive around town a lot). What can I do here (Other than quitting my job)
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Jan 19, 2016 18:35
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Bojanglesworth posted:Ohhh, I didn't even think about that. https://www.eitc.irs.gov/Tax-Preparer-Toolkit/faqs/income quote:I know self-employed individuals have to report all income. My question is about deducting expenses. Are taxpayers required by law to claim all expenses pertaining to their business? You get some leeway in how to elect to deduct certain expenses, but you are supposed to claim everything that is legally allowable.
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Jan 19, 2016 18:39
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RealFoxy posted:I work for a small company, of less than 10 employees. We do a lot of independently contracted work for local businesses around the state, and I'm usually never reimbursed for anything other than just making my hourly wages. This should sum it up for you: https://ttlc.intuit.com/questions/1899845-can-employees-deduct-any-job-related-expenses Then read about the 2% rule, the link is on the page above. It is a pretty hard burden to overcome and you need to really keep track of everything, the mileage being the hardest one. Things like your phone and computer you have to divide out usage for business and it gets even move complicated. Also if you don't itemize now it may not even be worth it because it could be really hard to get past the number where it matters. You can calc it out both ways though and see what you get.
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Jan 19, 2016 18:59
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saltylopez posted:https://www.eitc.irs.gov/Tax-Preparer-Toolkit/faqs/income It certainly doesn't get any more clear cut than this, especially for the IRS 
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Jan 19, 2016 19:34
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spwrozek posted:This should sum it up for you:
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Jan 19, 2016 19:46
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RealFoxy posted:If I'm understanding this correctly, I can itemize up to .02% of my yearly income for returns? I would probably hit that in gas/milage alone. I'm used to filling out the travel sheets from an old job, so all it would take is just making a template, putting it in a binder, and then writing down milage while I'm out + Keeping gas receipts, correct? No, when you itemize business expenses only the amount that exceeds 2% of your income is deductible. So if you make $100k you need more than $2k of expenses before they start to count and then, that excess plus other itemizable deductions (state income or sales taxes, mortgage interest, real estate taxes, charitable donations, medical expenses) must exceed your standard deduction amount to actually benefit you. Edit: Well, yes that's what you should do to keep track of everything, plus keep repair receipts that show mileage. Just wanted to make sure you understood how itemized deductions work.
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Jan 19, 2016 20:25
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I have a general question about charitable donations. People always talk about "oh he/she/some company just doing it as a tax write off." I understand how deductions work, but why would it ever make sense to do something solely as a tax write-off? Like, if you donate $5k, sure you might pay $1k less in taxes as a result, but you still gave away 5k  So since it's a net loss for the donator no matter what, why do people talk about tax write-offs as a motivation for charitable donations?
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Jan 19, 2016 23:31
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alnilam posted:I have a general question about charitable donations. People always talk about "oh he/she/some company just doing it as a tax write off." I understand how deductions work, but why would it ever make sense to do something solely as a tax write-off? Like, if you donate $5k, sure you might pay $1k less in taxes as a result, but you still gave away 5k The intelligent answer: major businesses have to place themselves in the best situation to maintain customers or even add new ones. One way to do this is to review their numbers and determine how much they can afford to donate, and find high profile ways to do so. Depending on how they do it, it promotes good will within their customer base, and allows for others to feel good about themselves. Some people are able to see through artificial caps, though. We all know the routine: "For every X purchased in this period of time, our company will donate Y dollars." The company KNOWS how much they're willing to donate, and yet they will somehow get the consumer to buy products out of guilt! Less intelligent (but probably more common reality) answer: people don't understand that deductions are not dollar for dollar credits...
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Jan 20, 2016 01:38
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balancedbias posted:The intelligent answer: major businesses have to place themselves in the best situation to maintain customers or even add new ones. One way to do this is to review their numbers and determine how much they can afford to donate, and find high profile ways to do so. Depending on how they do it, it promotes good will within their customer base, and allows for others to feel good about themselves. Some people are able to see through artificial caps, though. We all know the routine: "For every X purchased in this period of time, our company will donate Y dollars." The company KNOWS how much they're willing to donate, and yet they will somehow get the consumer to buy products out of guilt! RealFoxy posted:I work for a small company, of less than 10 employees. We do a lot of independently contracted work for local businesses around the state, and I'm usually never reimbursed for anything other than just making my hourly wages. I would suggest you talk to your employer about reimbursement for mandatory expenses. Are you 1099 or W2?
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Jan 20, 2016 04:12
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