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The company paid her $12560. They did her a favor and sent part of it to the IRS so she wouldn't have a huge tax bill surprise at the end of the year.
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Feb 12, 2014 21:50
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slap me silly posted:The company paid her $12560. They did her a favor and sent part of it to the IRS so she wouldn't have a huge tax bill surprise at the end of the year. They didn't pay her $12560 though. They paid her $9000 and paid $3560 to the government on her behalf... So by paying on her behalf, you're saying that is considered income?
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Feb 12, 2014 21:56
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It's just like when your employer withholds money for taxes from your regular paycheck. Her income from it was $12560, so she owes tax on $12560. The company withheld some for taxes. Nothing is getting taxed twice.
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Feb 12, 2014 22:01
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slap me silly posted:It's just like when your employer withholds money for taxes from your regular paycheck. Her income from it was $12560, so she owes tax on $12560. The company withheld some for taxes. Nothing is getting taxed twice. What you're saying still isn't making any sense to me. Perhaps I'm dense. The company gave her $9000. Clearly this is income and should go into her W2 box 1 as wages. The company saw that 39.5% of that $9000 should be paid in taxes so instead of having her pay it at the end of the year, the company paid 39.5% of $9000 ($3560) to the tax agencies for her. So, why would the $3560 that the company paid in taxes to cover the tax burden on the $9000 in wages they gave her also be considered wages for her?
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Feb 12, 2014 22:11
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The company paid her $12560 so she would net $9000.
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Feb 12, 2014 22:15
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LorneReams posted:The company paid her $12560 so she would net $9000. So they paid her $12560 but only paid taxes on $9000 of it?
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Feb 12, 2014 22:27
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Scrapez posted:So they paid her $12560 but only paid taxes on $9000 of it? They paid taxes on $12560 (if they did it right that is).
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Feb 12, 2014 22:31
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Scrapez posted:The company gave her $9000. Clearly this is income and should go into her W2 box 1 as wages. No, the company gave her $12560 for moving expenses. Of that, they withheld $3560 for taxes. So yes, the $3560 counts as wages too. The company probably just said "We'll give you $9000" to keep it simple. But that's not completely correct.
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Feb 12, 2014 22:42
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To add to this, my company gives out gift cards every year for Christmas and they add the taxes to the paycheck and it works exactly the same way. The math is actually pretty straight forward.
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Feb 12, 2014 23:43
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Scrapez posted:What you're saying still isn't making any sense to me. Perhaps I'm dense. The company is paying a liability on her behalf. It's the same as if the company started paying her mortgage or any other personal liability on her behalf. Of course that poo poo is income.
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Feb 13, 2014 00:12
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kaishek posted:I attended an academic conference during the year that was related to this field - it was not for work, and I paid for it myself. You could consider this as part of my consulting work, networking, learning skills and conducting research. TaxACT tells me I can deduct the per diem for the location (San Fransisco) but at that rate, my earnings are over 100% used up and I basically record a loss. Are expenses deductible only in the year they were incurred? For example, a $60 membership in a professional association that I paid in 2012 for 2013? If I paid that same membership in 2013 for 2014, can I deduct them both as long as I don't deduct that same expense next year? I realized that my new employer wound up reimbursing most of my expenses for the travel to the academic conference, except for meals/incidentals. So I probably shouldn't deduct those expenses separately from my Schedule C, given that they were reimbursed. However, I did attend an educational trip to the region I study. I paid for flights and program fee out of my own pocket. It was pretty intensely focused on meetings, with definitely less than 25% of time spent on "enjoyment" - can I take these as deductions from my consulting earnings? Sigh - this one check is creating more trouble than it's worth!
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Feb 13, 2014 05:50
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I loving hate NY and their insistence that multi-state W-2's report 100% of box 1 wages as NY income rather than, you know, just the amount that the taxpayer actually loving earned in NY like every other loving state with an income tax   This is the dumbest loving rule in a tax system full of dumb loving rules. I can't see what purpose it can possibly serve other than to trick people in to paying NY state tax on 100% of their earnings by mistake. That is all. 
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Feb 13, 2014 07:21
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furushotakeru posted:I can't see what purpose it can possibly serve other than to trick people in to paying NY state tax on 100% of their earnings by mistake. The New York State Department of Taxation and Finance engaging in shady-as-poo poo practices? Next you'll tell me the sky is blue...
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Feb 13, 2014 12:35
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My wife just received an unexpected 1099-MISC for about $1000, but I've already e-filed without accounting for any of this income. The reason it was unexpected is because we also received a W-2 from the same employer. Do I need to file a corrected return? Or can I wait for the IRS to just adjust my refund? I've never actually dealt with 1099 income before. vv Thank you! Initio fucked around with this message at 18:04 on Feb 13, 2014 |
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Feb 13, 2014 16:27
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Initio posted:My wife just received an unexpected 1099-MISC for about $1000, but I've already e-filed without accounting for any of this income. The reason it was unexpected is because we also received a W-2 from the same employer. If you don't have any expenses to offset, the IRS will send you a CP2000 automated matching notice in about 10-12 months. If you don't dispute the amount they will calculate the adjusted tax and you can just pay it. They also will copy any applicable state agency if you have a state income tax.
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Feb 13, 2014 17:27
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1) I had opened and closed an investment account with Betterment last year and received a 1099-B Short-Term Summary with a long list of transactions attached that they reported to the IRS. Do I need to include these transactions on a Form 8949 as well, and/or do I just fill out the short-term summary on a 1099-B with "Various" for my acquisition and sale dates? 2) Similar to my first question, I received a 1099-B for stock received and sold through my ESPP and RSU bonus (all short term). Do I need to report each sell separately in either/both 1099-B and Form 8949, or can I combine them on a single 1099-B as a summary since they are all short term and from the same company? Any help is appreciated, thanks. EDIT: Never mind, figured it out. Reading is hard. ETB fucked around with this message at 19:20 on Feb 13, 2014 |
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Feb 13, 2014 18:49
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Hi Professionals, My girlfriend was misclassified by her employer as a contractor for 3 pay periods last year and one this year, and now is a W2 employee, like she should have been all along. The parent company is not, but her company (wholly owned subsidiary) is brand new as of November. She is going to file an SS-8 and 8919. My question is what does the employer have to prove that she was a contractor and now an employee? She has had one employment contract/agreement since she started, and it's a pretty bad one. Definitely does not say she was a contractor, and she completed a W4 upon hire. However they had her fill out another one before she received her first W2 check. I wouldn't have filled that out myself, but she is less knowledgeable. We want to ensure that her statement regarding classification is accurate, and that the employer can't contest it from a legal basis. She is an office administrator, and has had the same position the whole time she has been with the company. Thanks!
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Feb 13, 2014 22:19
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Have a basic tax question - hire an accountant or do it on my own? 25 year old with no dependents, living in WA state, single, out of college, and living with my mother. My W2 from a company I did consulting for paid around $35k and took $7k Federal Income Tax, $2k Social Security, and $500 for Medicare. Another company I did consulting for three weeks sent me a 1099-MISC with $5k as non-employee compensation and all blank on Fed Income Tax, Social Security, Medicare etc. Also have an interest income from my local bank.
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Feb 14, 2014 01:32
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kaishek posted:Are expenses deductible only in the year they were incurred? For example, a $60 membership in a professional association that I paid in 2012 for 2013? If I paid that same membership in 2013 for 2014, can I deduct them both as long as I don't deduct that same expense next year? I'm sorry to repost this question so quickly, but is travel deductible in the year it was paid for or the year it was taken? (thank you for helping all of the clueless taxpaying goons)
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Feb 14, 2014 02:43
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Busy Bee posted:Have a basic tax question - hire an accountant or do it on my own? Should take you less than an hour on TurboTax or similar.
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Feb 14, 2014 03:57
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Busy Bee posted:Have a basic tax question - hire an accountant or do it on my own? kaishek posted:I'm sorry to repost this question so quickly, but is travel deductible in the year it was paid for or the year it was taken? (thank you for helping all of the clueless taxpaying goons) E: VVVVVV I could be wrong, but I don't think so. Deduction for most things must be taken in the year paid vs year expense incurred. I re-read your original post, definitely do not deduct reimbursed expenses. And only 50% for food expenses. http://www.irs.gov/taxtopics/tc511.html SiGmA_X fucked around with this message at 04:36 on Feb 14, 2014 |
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Feb 14, 2014 04:00
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SiGmA_X posted:Year it was paid for. Crapshit. If there's no exceptions for that, sounds like I'm out of luck other than maybe the per diem rate for the time I was there. Thanks. edit:^^^^^^muchos gracias. Leaving off the reimbursed expenses but including (50% of) meals and incidentals that were not reimbursed. Hufflepuff or bust! fucked around with this message at 05:53 on Feb 14, 2014 |
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Feb 14, 2014 04:27
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I've got a question regarding Chapter 33 (Yellow Ribbon Campaign, VA) benefits and income taxes. I'm attempting to file my taxes online, and my school sent me a 1098t with only 2000 dollars listed in block 5. Naturally TurboTax has saw fit to give me a tax credit (American Opportunity) Is this correct? What the hell am I supposed to do with this 1098t?
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Feb 14, 2014 06:24
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I got my federal return in a week. Wow e-filing is fast.
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Feb 14, 2014 09:23
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Is there a general rule about what qualifies as state residency? I know that there are some states (California, South Carolina, Virginia (I think)) that have really strict requirements (having a driver's license or a bank account qualify you as a resident) but for the majority of states, if you don't live/work there and are a tax resident somewhere else, having a bank account or driver's license in that state doesn't make you resident, right?
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Feb 14, 2014 18:09
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I got my first "stable" paycheck today (the others had all sorts of reimbursements and bonuses and so on) and I think they are withholding too much from me for federal income. Tell me if I'm calculating this wrong: I take my gross yearly salary, subtract my personal exemption and standard deduction (single, male, so should be $10150 total for the 2914 year). This gives me my taxable income. My salary schedule/bracket says is $5081.25 + 25% of the amount over $36900. I take this number and divide by the number of pay periods I have (26) and this gives me the dollar amount of federal taxes I owe per paycheck. My pay stub is withholding $75 more per month so I'd get about a $900 refund next year. I'd like to reduce this amount withheld so that I get a $0 refund (or +/- $20, something in the tens). How can I do this? When I started this job I only got a form that asked how many dependents/exemptions I can claim, which I think = 1 for my case. I remember my very first job in college they asked me to give them a percentage to withhold but I don't see this option.
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Feb 14, 2014 18:44
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So last weekend, I went to visit some friends/roommate back in Rhode Island having since moved to NY a few months ago. Turns out a W-2 was mailed there, from my employer back in 2011 & 2012. It was a paid internship that lasted for a few months, then I graduated and worked else where. Anyways, this W-2 is claiming that I earned $1800 from them during the 2013 year, but I never worked for them. I shot my old boss an email and he said he'd look into it, that was Monday. Yesterday I sent a follow up, no response. I should mention it's a small staffing agency, maybe 15 actual employees plus whoever they've placed for contracts and stuff. What I should do? What's the likelihood of me getting a random check for however much after taxes? I assume I'd have to declare that as income from them for 2015 when filing taxes? I've already filed my taxes and gotten returns so it's not like I can just add it in now.
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Feb 14, 2014 22:30
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Zeta Taskforce suggested I seek assistance in this thread.devoir posted:Not sure if this warrants its own thread, but here's my situation and I'm looking for advice. Because of the slightly oddball situation I'm not even sure what questions I should be asking. General advice would be great, and I'm open to someone with a firm confidence in their understanding of my particulars (multiple streams of income, non-US citizen, recent Australian immigrant to Oregon, etc) providing a quick proposal on how they would handle things, or a referral to someone they can vouch for. I have PMs, and can provide my e-mail address if need be.
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Feb 15, 2014 01:05
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Akumu posted:Getting a 1098-T where Box 5 has a larger amount than Box 2 is totally hosed, right? I have the same situation. As a TA, I got health insurance as part of a union employment contact; strangely enough, the university puts that amount on my 1098-T instead of the box on my W-2. I've brought this up a couple times to the payroll office over the years and they said they couldn't fix it, and to have an accountant deal with it. So I got one, and they adjusted it for me. It's been that way since I started in 2006. I wish the university would just fix it, though; it's maybe $200/year difference on the return for thousands of employees that could really use it. 
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Feb 15, 2014 01:29
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devoir posted:Zeta Taskforce suggested I seek assistance in this thread. I assume you are a US resident for tax purposes (do you have a green card? have you been in the US for more than 183 days in 2013?). If so, you would pay taxes and file exactly as if you were a US citizen. Did your former Australian employer withhold US taxes and provide you with a W-2? (Please say yes, life gets a lot less fun if the answer is no). File 1040 (or A or EZ, depending). If you didn't make a lot of money you can use one of the free file services listed on the IRS website. Your savings in Australia may give rise to an obligation to include form 8938 with your return and file a FinCEN form 114 by June 30 to report any foreign bank or financial accounts over $10,000. As far as bringing it into the US, I don't see any issues, other than maybe a currency gain, but I'd have to do some actual research to answer that question  Multiple streams of income shouldn't matter, just report based on 1099s or W-2s received. If the income is from outside the US and you did not receive any US tax forms, things get more complicated; hopefully that's not the case. As for Oregon tax filings, I'll defer to my colleagues who may know more.
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Feb 15, 2014 01:47
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PatMarshall posted:I assume you are a US resident for tax purposes (do you have a green card? have you been in the US for more than 183 days in 2013?). If so, you would pay taxes and file exactly as if you were a US citizen. Did your former Australian employer withhold US taxes and provide you with a W-2? (Please say yes, life gets a lot less fun if the answer is no). File 1040 (or A or EZ, depending). If you didn't make a lot of money you can use one of the free file services listed on the IRS website. Your savings in Australia may give rise to an obligation to include form 8938 with your return and file a FinCEN form 114 by June 30 to report any foreign bank or financial accounts over $10,000. As far as bringing it into the US, I don't see any issues, other than maybe a currency gain, but I'd have to do some actual research to answer that question I very much appreciate the assistance. Specific clarifications: 1) I have a green card. 2) I arrived in March 2013 and have not left the country since. 3) I was not an employee of a US entity at any stage. 4) For part of the time since March to November (I will have to check exactly when) I was being paid into a US bank account, but with Australian taxes withheld. The money came via international wire transfer from Australia. 5) I received no US tax forms from my former employer. 6) I have over $10,000 in Australian accounts. 7) I'm not sure what qualifies as a lot of money for the purposes of this discussion? My salary was below six figures for the duration of my time in the US, but I received a significant severance after resigning due to cached leave. 8) One of the consulting gigs has me filling out a W9 at the moment as an independent contractor, the other has kind of said they'll just pay me money directly and I'm assuming I take on extra burdens regarding paperwork and tax payment. All the streams of income from this point forward will be from the US, but the consulting gigs are from outside Oregon. I guess I need to continue looking for someone to take me on as a client, I don't think this is something I want to muddle through by myself.
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Feb 15, 2014 02:05
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Yeah, you need an accountant. You're a US resident, probably from March. When you were being paid from Australia, were you providing services from the US or Aus? If it was from the US, the income would likely be US source, and Australian taxes should not have been withheld unless you were still an Australian resident at the time. You might need to file a dual resident return (part US resident, part Australian) or file for a refund from Australia. You can only take tax credits for taxes paid to Australia if you have non-US source income. You would need to report all of your income earned while you where a US resident and pay US tax on it at graduated rates. For your 1099 income, you may deduct business expenses (if any). Posters who actually prepare 1040s could tell you more.
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Feb 15, 2014 02:33
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PatMarshall posted:Yeah, you need an accountant. You're a US resident, probably from March. When you were being paid from Australia, were you providing services from the US or Aus? If it was from the US, the income would likely be US source, and Australian taxes should not have been withheld unless you were still an Australian resident at the time. You might need to file a dual resident return (part US resident, part Australian) or file for a refund from Australia. You can only take tax credits for taxes paid to Australia if you have non-US source income. You would need to report all of your income earned while you where a US resident and pay US tax on it at graduated rates. For your 1099 income, you may deduct business expenses (if any). Posters who actually prepare 1040s could tell you more. The company had some existing contractor employees in the US. Part of my role was opening an office and entity (none of it in my name), getting those contractors to shift to direct employees. Other work was directly relevant to the US market, as well as managing global resources (including those in Australia and UK) of my team. I'm not sure how that fits into the situation you described, but thanks for the starting point.
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Feb 15, 2014 06:05
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I'll try to explain the US international tax system, as convoluted as it is: The US taxes its citizens and residents on their worldwide income, but allows a credit for income taxes paid to other countries on income earned in those countries to avoid double tax. The basic model is that the source country gets first crack at the income, but the US reserves the residual right to tax. For instance, say you earn $100 for work you performed in France, France assesses a $30 tax on this income. The US would assess a $40 tax on this income, but allows you to take a credit for the French taxes you paid. You would file a US return and pay $10 of tax to the US. You are no better or worse off than someone who earned $100 in the US and paid $40 of US tax. Now, what if France has a higher tax? Suppose you paid $50 of tax to France, you would not be allowed a $50 credit against US taxes, only $40, the amount the US would have taxed. You now pay no tax to the US, but are worse off than if you had earned the income in the US. On the other hand, you are no worse off than others earning income in France. The theory is that the US should not subsidize another country's treasury by allowing credits in excess of the tax the US would have charged. Problems arise, however, when countries disagree on the source of income. Say that France imposes the $30 tax as before, but for work you performed for a French company from the US. The US would not allow any credit because for US tax purposes you have not earned any foreign source income. The services were all performed in the US and are therefore US source. You would owe US taxes on all of the income, for total French and US taxes of $70. You are now clearly worse off than either French persons or persons earning income only in the US who do not pay French tax. Thankfully, this rarely happens; France would agree that the income was US source and would refund the $30 you paid to France. I believe this is your situation, you had taxes withheld in Australia for income that was actually US source (compensation for services is sourced to the location the services were performed, regardless of the residence of the employer or employee). If you were still an Australian resident at the time, then this would be appropriate: Australia would be the residual tax country and the US would be the source country. You would file a return in Australia and claim a credit for taxes paid on this income in the US. In the US, you would file a dual resident return, filing as a non-resident for the first part of the year when you were an Australian resident, and as a resident of the US for the second part of the year. So in this situation you pay taxes first to the US, and claim a credit and refund from Australia. The other possible situation is that you were a US resident when you were paid from Australia and Australian taxes were withheld. If this is the case, you would file as a US resident for the entire year and would claim a refund of all the taxes withheld from Australia as you would not owe any taxes to Australia for US source income you earned while you were not a resident of Australia. Sorry for all the words, hopefully this makes the situation somewhat clearer.
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Feb 15, 2014 20:15
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are girl scout cookies deductible?
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Feb 15, 2014 20:42
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SuppressdPuberty93 posted:are girl scout cookies deductible? If you bought the cookies for yourself, then no as you bought a good at fair market value. If you either donate money to the girl scouts or choose the donate cookie option, then yes like any other charitable donation.
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Feb 15, 2014 20:47
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notjf posted:I have the same situation. As a TA, I got health insurance as part of a union employment contact; strangely enough, the university puts that amount on my 1098-T instead of the box on my W-2. I've brought this up a couple times to the payroll office over the years and they said they couldn't fix it, and to have an accountant deal with it. So I got one, and they adjusted it for me. It's been that way since I started in 2006. Could you explain what you mean by "adjusted it"? Do you have to file something additional attesting that your school/employer was incorrect? What's worrying me right now is that the IRS is pretty clear that scholarship amounts that exceed qualified expenses are taxable. But people also brush off the 1098-T as "non-essential," so can I just say "nope that taxable income stated by my school/employer doesn't actually exist"?
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Feb 15, 2014 20:50
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asur posted:If you bought the cookies for yourself, then no as you bought a good at fair market value. If you either donate money to the girl scouts or choose the donate cookie option, then yes like any other charitable donation. I have seen some preparers take the stance that you are paying more than FMV for the cookies, and claim a donation of the excess paid over FMV. Amounts to $1-2 a box usually, not really worth bothering with unless you are buying cases of them.
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Feb 15, 2014 21:01
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furushotakeru posted:I have seen some preparers take the stance that you are paying more than FMV for the cookies, and claim a donation of the excess paid over FMV. Amounts to $1-2 a box usually, not really worth bothering with unless you are buying cases of them. You don't buy cases of them?
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Feb 15, 2014 22:13
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asur posted:If you bought the cookies for yourself, then no as you bought a good at fair market value. If you either donate money to the girl scouts or choose the donate cookie option, then yes like any other charitable donation. Is the Girl Scouts considered a Charity, or is any donation to any sort of non-profit thing valid? I donate a small chunk to Wikipedia but I assumed that didn't count for anything since they're strictly just nonprofit.
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Feb 15, 2014 22:26
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