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dwoloz posted:I purchased a single family home as an investment property in 2011. I very thoroughly renovated it this past year and only had it rented for 5 months so lots of expenses but not much income. Is there a way to defer deductions in a situation like this for later years in which I'll have more money coming in from the property? Also, I think you get up to $25k in losses applied against total income from a rental property as long as you were "actively participated" in managing it. "Actively participated" is a fairly low bar as well, as long as the property management company called you to get permission to spend money on the rental it counts.
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Feb 17, 2013 02:47
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ashgromnies posted:How are your withholdings determined? Your withholdings are determined by the form you fill out with your employer (w-4) when you start working. If you're single, no children, then it's just "2" on the w-4. If you have children, receive the appropriate credits for the little nippers, and take the dependent care credit, it's like a million or something. And you'll get almost nothing withheld. So you determine the amount withheld. You can have additional funds withheld as sort of a "mandatory savings" if you want a bigger refund, but obviously that means less in your paycheck each pay-period. If something changed during the tax year to reduce the amount you should have withheld (divorce, children growing up, or otherwise losing the Child Tax Credit) your withholding on the w-4 doesn't automatically change to reflect that; you need to follow up with Human Resources to make the changes. And since those changes apply to the entire tax year, while the new withholding would just apply to the remaining year... it could be painful. And yeah, you'll want to make sure you owe less than $1000 at the end of the year or the government gets in a penalizing mood.
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Feb 24, 2013 21:45
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File a 1040X which is an amended tax return. Add the $1204 that you paid to on line 15 and it should increase the refund you were owed by that amount. Don't know anything about the software you used, but you do need to submit a copy of the original return with your 1040X.
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Mar 3, 2013 00:11
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SilkyP posted:Ok, so halfway through 2012 I was hired on full time by my job. Because of this I have both a W-2 form and a 1099-Misc form to file for. My question is, will I still receive the tax refund on the W-2 wages even though I will be paying through the nose upfront because of the 1099? I realize there will be no refund for the 1099-Misc wages as I haven't payed any taxes on them yet but will I still receive a refund for W-2 wages or is that somehow deducted from what I will owe for the year instead of being sent out to me at refund time. Thanks in advance. Your income from the entire year is taxable. So 1099 + w2 = income. After you go through deductions and exemptions you're left with taxable income, the tax is calculated on that. That includes both the 1099 income and the w2 income. The tax owed is compared to the tax already withheld from the w2. If there's anything left, you get a refund, if withholding doesn't cover the tax owed there is a balance due. So that amount withheld will be deducted from what you owe for the entire year.
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Mar 7, 2013 06:35
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Bears In Mind posted:Hello all. I've got a frustrating situation here. I got permission from my sister to claim my nephew, who I helped support and have helped support for the past few years. When I went to e-file, I was told someone had already claimed him. My first suspect is the child's father, who does not have custody and has been largely absent for years and divorced from my sister for at least ten. He was not given permission, and in the last few years has actually given the child's information to various girlfriends so they could claim him, which is another possible explanation here. This happens a lot, so there are established procedures for getting the EIC and the child tax credit/additional child tax credit applied to the right taxpayer. It's just gonna take forever and be a pain in the neck. So I'd expect to see the refund later this year, definitely not within the 6-8 weeks that paper filing gets you. Still worth it to pursue, though.
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Mar 10, 2013 06:43
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Eggplant Wizard posted:2. Would it be more beneficial for me to take the Lifetime Learning credit (if I'm eligible) or to deduct the tuition I paid directly? I think I can't do both. I guess it would depend on whether your tax rate is above or below 20%. Some states allow you to double-dip on the LLC and tuition & fees deduction (Oregon, at least), but the federales don't.
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Mar 11, 2013 01:15
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Eggplant Wizard posted:I am paying about 13% I think. Sorry, I meant your marginal tax rate. If you're in the 10% or 15% bracket, take the Lifetime Learning Credit and if you're in the 25% bracket, take the tuition and fees deduction.
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Mar 12, 2013 01:39
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AbbiTheDog posted:Camera would be a five year depreciable asset, even if you won't keep it for five years. Couldn't he also take Sec. 179 depreciation on the camera the year he buys it? Nice and easy and he can do it again in 2 years when he replaces the camera.
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Mar 15, 2013 15:53
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Hey, I have a question. I can probably guess the answer, but thought I would check the goon hivemind real quick. States that have medical marijuana... can I take a medical deduction for that expense, even if the feds obviously disallow it? I'm guessing not, because the feds be jerks about it, but hope springs eternal. 
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Mar 19, 2013 04:03
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AbbiTheDog posted:Here in Oregon I get asked that question more than I'd care to admit. Illegal for federal is illegal for federal taxes. Pub 17 1/2 posted:Your net Oregon itemized deductions are your: Yeah, I figured. Even though it's legal for medical treatment in the state, the Pub says you can only itemize whatever the federales allow, and since isn't allowed on the Schedule A, it means that we can't allow it on the Oregon return either. Thought there might be some hope since Oregon says that RDPs can disregard DOMA, but without any specific provisions saying that MM users can also, seems like we gotta follow the federal rules. Nuts. I'm gonna write my state rep and get him to change it.
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Mar 19, 2013 20:09
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10-8 posted:Not only can't you deduct your own personal expenses relating to medical marijuana, a recent Tax Court ruling held that medical marijuana dispensaries can't deduct their otherwise ordinary and necessary business expenses because they're related to a federally criminal activity. That ruling effectively means that dispensaries are taxed on their gross receipts rather than net profits, which tends to make the whole endeavor unprofitable. Shortest episode of Tax Court ever: 26 IRC 280E posted:No deduction or credit shall be allowed for any amount paid or incurred during the taxable year in carrying on any trade or business if such trade or business (or the activities which comprise such trade or business) consists of trafficking in controlled substances (within the meaning of schedule I and II of the Controlled Substances Act) which is prohibited by Federal law or the law of any State in which such trade or business is conducted. The tax code seems pretty clear on that issue. I think that's the only specific limitation on illegal activity, too, so a cat burglar could deduct the cost of his tools, his steaks, and his mileage between houses, while a hitman could deduct his ammo expenses (might have to depreciate his fancy guns though), the humble crack dealer or meth manufacturer can't deduct anything. To say nothing of the worst scourge of them all, the medical grow-op.
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Mar 19, 2013 23:21
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Dixie Strauss posted:Here is my situation: File a 1040 with a form 2555 attached, if you meet the criteria, (sounds like you should) you can take the exclusion on your foreign earned income. Up to 95K as you said. In the future that will hopefully be helpful. The main exception is if the income is sourced in the US (the Amazon stuff) in which case it is taxed and not excluded. That linked site is for unamerican taxpayers who are selling on Amazon because they need to pay taxes on their US income and need an ITIN to do so. Since you're an American, you'll include the Amazon income on your 1040.
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Mar 30, 2013 06:29
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scribe jones posted:Sure they do! They take your balance due, divide it by 12, and that's your monthly payment. And the worst thing they do is they won't hire me. Bastards.
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Apr 7, 2013 21:49
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asaf posted:stuff I'm guessing that your employer doesn't issue a W-2? Nor does he probably withhold social security and Medicare taxes. Since I doubt he'd want to do that, the self-employment option seems to be the way to go. In that case, keep track of your expenses, such as the software you use to telecommute, bank fees, and the like, and also set up a room in your apartment as a home office and only use that for your job. So that you can take the home office deduction for a portion of your rent & utilities. (Supposedly the IRS is simplifying the procedure to calculate that expense, but I'll believe it when I receive notice of the committee to decide the schedule of the hearings in the federal register). Also, any taxes withheld to pay Turkey could be taken as a credit or deduction on the US taxes. As far as now, yes, technically you are supposed to report your income and the fact that it is below the exclusion level to the IRS. Couldn't hurt to start, the forms aren't terribly complicated (form 2555-EZ should suffice), but once you're back in the US claiming self-employment income, it couldn't hurt to go to one of the tax-preparing places to make sure everything is in order and filed correctly.
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Apr 10, 2013 16:15
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Mandalay posted:Are you supposed to indicate anywhere on the 1040 that you're a nonresident alien living in the US on a work visa? I didn't see any check boxes. No, they don't care what your status is. If you don't have an SSN assigned to you, you need to get an ITIN.
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Apr 18, 2013 21:20
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Two things: remember the payroll tax (Medicare and Social Security) is gonna run about 15%, a.d if you have any deductible work expenses, keep track of them.
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Sep 4, 2013 17:38
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Duckman2008 posted:I've had a few changes at once for this year (2013) so I figure I might as well start doing research now on if I need to change how I file (currently jointly through turbo tax). You can't list a spouse as a dependent. File jointly. How she paid for grad school will dictate which education credit you guys can use.
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Dec 12, 2013 16:45
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scunish posted:Looking at the link Epi Lepi posted, it seems I was in 25%, she was in 15%, and combined we're in 25%. So I guess that, plus losing her standard deduction, is gonna kill us. I was bummed about it tonight and she sweetly said, "do you want to get a divorce?" Hey, wait a minute!! So in the past, you itemized and she took the standard deduction? That makes sense, that's 5700 getting folded back int AGI, at 25%, equals about 1400, what you're seeing for 2011.
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Jan 4, 2014 14:14
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The IRS does have freefile for people making under $57k. Unfortunately it will be a few weeks before it's up and running, but they won't start processing the returns until Jan 31st anyhow, so no point in rushing things out the door.
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Jan 16, 2014 05:21
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ThirdPartyView posted:Get a qualified appraiser to appraise that poo poo. More specifically you'd want to fill out Form 8283 (Noncash Charitable Contributions).
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Feb 17, 2014 23:04
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FCKGW posted:But he is married, 24 and earned $18,000 last year He appears to be filing MFS, so not using the MFJ numbers.
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Feb 20, 2014 06:03
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Anyone know what the consequences are for an employer that fails to provide a w2 to an employee? Even after the employer receives the IRS letter and fails to send it.
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Mar 14, 2014 18:11
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ThirdPartyView posted:Section 6721(e) would apply. Cool, thanks, that answers the question nicely. Of course, when it comes to the employees, it's just a he said/he said situation, so there probably isn't any action taken from the IRS.
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Mar 16, 2014 01:37
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SiGmA_X posted:Sounds like those 3 employers, or just one of them, under withheld. And you over withheld. Also, if he claimed EITC it would have been adjusted down due to the increase in income.
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Apr 1, 2014 16:07
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Moogs posted:Thanks for the thread, this is great! I'm living a pretty simple life, and just realized I put excess money into my Roth account. I also did it last year, but not by much at all, so I wasn't concerned. This year is more significant, and I'd like to fix it. I understand I could start a traditional IRA and move the excess there (along with any earnings... how do I calculate this?) or I could just let it go and put that amount less in next year? Any recommendations? The earnings on a Roth are withdrawn tax free (if you're above 59.5).
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Apr 7, 2014 04:23
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SardonicCheese posted:Ok here is the situation. Pub 503 says no. See the section on transportation.
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Apr 18, 2014 22:24
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QuiteEasilyDone posted:I think I might be in trouble. Earlier this spring I filed for an extension to get all my tax information in order because I was going to jointly use my parents accountant, and was still collecting all the applicable information. Just now I finally got my report back from my accountant and it appears that they've failed to account for all of my 1099 income, representing about 93% of my taxable income last year. At this point in time, it appears that there are two possible failure modes. Either the accountant received the forms and proceeded to lose them, or they were lost between me handing them to my mother to send to the accountant. What in the living hell am I going to do now? If the return was already filed, file an amended return with the additional income. And maybe get a new accountant.
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Jun 7, 2014 02:21
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AbbiTheDog posted:Not really. "Believes" != "what actually happened." You should have gotten a paystub showing withholdings - no paystub, no withholdings. I see some clients come through every now and then with a check that had "withholdings" but the payer was just keeping the money. Wouldn't the payer be liable for failing to turn over withheld monies?
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Aug 6, 2014 01:29
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uG posted:I'm not current on my quarterly taxes, and need to get on an installment plan for the remainder of last years tax return. Am I right in my understanding that they won't allow me to get on an installment plan because of the quarterly taxes, and not just roll it all together? Can I just eat the penalties until Jan 1st and 'then' roll my quarterlies (as if they were a complete 2014) into my 2013s? So you filed in 2013 and have a balance due. You also aren't current on your 2014 estimated tax payments. You want to know if you can enter into an installment agreement? Assuming that you meet the IRS's criteria, you should be able to enter into an installment agreement, regardless of the 2014 quarterly payments. Obviously, it would be best to catch up on those payments before the end of the year to avoid any penalties, but if that isn't possible, just keep in mind that if you have a balance due at the end of 2014, the IRS will charge you an additional fee to add the new balance to the existing installment agreement. If you've received letters from the IRS regarding the 2013 balance, you should definitely respond to them either by mailing in an installment agreement request (Form 9465) or calling up them up and setting one up over the phone. Even if they haven't sent you a letter, you should probably call them up and get one set up.
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Sep 7, 2014 05:33
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If you want to make tax decisions on behalf of your parents, you need to get a power of attorney for tax issues. There's a form, Form 2848 that you'd need to submit to the IRS. Now, if you're going to dispute the underlying tax liability with the IRS, than it couldn't hurt to talk to an attorney. I don't really know how you'd go about doing that. You say that they didn't file any returns, so you'll want to see if the IRS filed a "substitute for return" for your parents and is basing the liability on that. You'll want to file the missing returns even if the IRS has done that, because the substituted returns don't include any expenses or deductions that the IRS is unaware of, and the actual liability may be lower. If you're not confident about doing that yourself, a tax preparer should be able to do that for them pretty easily. But if you agree that they owe the money, what you're going to want to do is enter them into a monthly payment plan with the IRS. You can call up the IRS and do that (once you've successfully filed your POA form, that is) without too much trouble. As far as any liens go, if one has already been placed on their house, you can request to have it lifted once you're in a payment plan. Requesting a payment plan is pretty straightforward, and once you're in one, the IRS will generally stop bothering you (as long as you start filing and paying future year's taxes... you'll want to look into that). You can also request an abatement of the penalties and interest once you're on the line with the IRS. Whether or not it can be granted... who knows? But they may be eligible for that. Now, if your parents are unable to make payments, there are two options; the first is an "Offer in Compromise", to settle for a lower amount and enter into a payment plan on that. There should be a tool on the IRS website to see if that is something they might qualify for. Probably not, but you can look into it. If they don't qualify for that, but making payments would be a serious hardship, you can request to have them placed in "Currently non-Collectible" status, which means that the IRS will go ahead with the lien, but not take any further collection action until their financial situation improves.
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Nov 17, 2014 06:28
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ThirdPartyView posted:If she's a US citizen or resident alien, then it's taxable, although she can reduce her US tax liability by foreign taxes paid on it via the foreign tax credit. The education expenses can be taken (if he qualifies) even if he ends up using the standard deduction.
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Nov 22, 2014 00:15
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It's mor3 that Congress established a distinction between short term assets and long term assets, and do the IRS needed to establish a clear cut demarcation between the two. Why should holding the asset another 24 hours be rewarded? Who knows? That's what Congress wanted, so that's why the IRS had fo come up with tbe definition.
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Nov 28, 2014 00:30
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Scrapez posted:I am currently going to school full time and my employer is paying tuition assistance. However, they pay only the "tuition" portion of my bill. There are many other fees that the school charges such as library fee, lab fees, ID card fee, etc, etc. The tuition portion per semester accounts for about $1000 while the "other" fees are around $200-$250. ThirdPartyView posted:
Fees are generally deductible if they are a mandatory part of the education; eg lab fees, materials fees, and so forth. If they're optional extracurricular activities (fee to use college gym, frat expenses, bribes for professors) they are not deductible. The American Opportunity credit is limited to undergrad studies, IIRC.
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Dec 5, 2014 03:19
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Amara posted:I lived in Michigan for half of this year and Massachusetts for the other half, but only worked and made money from MA while living in MA. Do I need to file taxes in MI? If I do, will I be paying income tax in two states? Any income you earned while a Michigan resident is taxed by Michigan, and any income earned while a MA resident is taxed by MA. Things get complicated if you have MA or MI sourced income during the periods of non-residency, but that doesn't sound like the case for you. Each state should have a special "partial year" resident form available on your tax preparation software of choice. So if there's no MI income, no form needs to be filed. sullat fucked around with this message at 04:28 on Dec 13, 2014 |
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Dec 13, 2014 04:24
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The way it works when two people try and claim the same dependent is that the first one to e-file goes through, and then later filers get rejected because the dependent's SSN is already used in the IRS system. Now, this has nothing to do with who is eligible for the credit, just the way that the system responds to disputes about whose dependent it is. The second filer (if they are eligible to claim the dependent) would need to paper file their taxes, claiming the dependent. A few months later, the IRS will send paperwork to both parties asking them to prove who is actually eligible for the dependent, and then demand whatever money is owed to be returned by the ineligible filer.
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Dec 17, 2014 23:52
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ThirdPartyView posted:Here are the tiebreaker rules. Remember that while you believe that you will qualify for the dependency exemption, if she believes that as well, you will need to prove that to the IRS. Records showing how long the child lived at your address, where the child's address of record is with the school district, doctor's office, that sort of thing. It would be much easier to contact the kid's mother and see if an arrangement can be reached, because it may be easier than dealing with the IRS. Although it may not be; I don't know your particular situation.
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Dec 19, 2014 04:33
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Paladine_PSoT posted:I just got a letter from the IRS via certified mail that says "Call immediately to prevent property loss" "Final notice of intent to levy and notice of your right to a hearing". It claims I owe ~800 from my 2011 taxes (from which I got a refund of roughly 1700). I called the number and listened to the detailed explaination and they mentioned that the last thing to happen to my 2011 taxes was an adjustment in march of 2013 of ~300. I never received any notice of this adjustment until this "final notice". Your taxes were probably adjusted because someone reported income to the IRS that wasn't on your return. You can get transcripts from the IRS website for 2011 to see what it was.
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Dec 30, 2014 04:56
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flowinprose posted:Not only do you have to meet that threshold to deduct at all, you can also only deduct the PORTION of the expenses that is over the 10% And it (plus your other deductible expenses) has to be over the standard deduction as well. Seems like they really don't want people deducting medical expenses any more.
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Jan 9, 2015 14:57
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AbbiTheDog posted:The IRS has skilled tax lawyers draw up their regs and guidance, but the skilled tax lawyers don't, you know, actually prepare returns. Or worry about the "small guys." Woo! Who's ready for filing season?!
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Jan 15, 2015 21:41
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Deviant posted:Is this the appropriate place to ask how many allowances to list on my W4 when I start a new job here soon? Go to the IRS website and use the withholding calculator.
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Jan 26, 2015 22:13
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