|
They go on schedule A and count as tax prep fees. If you use the standard deduction you don't need to worry about them.
|
#
¿
Mar 6, 2011 03:50
|
|
|
|
| # ¿ Apr 28, 2024 21:23 |
|
|
ShadowHawk posted:I did some contracting and the 1099-MISC form I was sent 1) Yea you want your employer to know they made a mistake so that they can file an ammendment to the IRS. Considering you were a 1099MISC I doubt they will even bother because most places I see are terrible at fixing anything for 1099MISC. 2)When you fill out your schedule C you will list those parts you buy as expenses so you reduce that income by the ammount you were reimbursed. You won't be paying tax on it. Captain Beans fucked around with this message at 19:16 on Mar 12, 2011 |
|
#
¿
Mar 12, 2011 17:02
|
|
|
Your boss is either an idiot or is trying to commit fraud. If you are a normal employee your bonus would just be like extra wages. As such your employer would also be on the hook for their portions of FICA, medicare ect. When you get a 1099MISC you are treated as your own business so you pay self employed taxes on your income to make up the lack of FICA, medicare, ect portions from the employer. He probably gave it to you as a check so he woudln't have to deal with either of the situations and only gave you a 1099MISC because you asked about it. Or they already did their books and didn't want to go fuddling around with everything to add bonuses. You need to talk to him about this, because you didn't work as an independent contractor so there should be no 1099MISC. If he 'just whipped it out' he might not have even filled it with the IRS so that is good for you. If he already filled it then you are going to have to go through some more poo poo that I couldn't specifically tell you. ShadowHawk posted:Regarding 2, do you mean a deduction? I'm concerned about the self-employment equivalent of payroll taxes here. You won't pay SE tax on those parts. You only pay SE tax on net income for self business. You take their costs(reducing the actual income) before you figure the SE tax owed. Obviously you will be paying some SE tax from the other income on the 1099MISC. Captain Beans fucked around with this message at 21:23 on Mar 15, 2011 |
|
#
¿
Mar 15, 2011 21:12
|
|
|
amishsexpot posted:Maybe he is considering this work as "independent contractor" wages? He better not. It doesn't matter if you only worked to weeks. If you did the same stuff when you were working fulltime it isn't independent contractor work. If you worked at their job location, they could tell you how to do your work, used their computers/tools you were an employee and that should be included on a W2 not a 1099MISC. Your bonus and any of that 2 week work needs to be included on an updated W2. Check and see if the 2 weeks already is included. If he files a 1099MISC for that stuff to the IRS you'd kind of be hosed and would then need to file a SS-8 to request they rule you as an employee instead of a contractor. This isn't good for either of you. If he doesn't update this to a W2 then you get to pay all the SE tax or you tell the IRS he is trying to shaft you.
|
|
#
¿
Mar 15, 2011 21:56
|
|
|
manderson posted:Another self employment/1040 contractor question... At least it sounds like you really are a independent contractor instead of people who just get issued a 1099misc because their company wants to cheap out on their employee taxes. Your situation isn't too different than someone geting a w2 that can't itemize. IRA, student loan interest, few other things are about all your are gonna get, plus you get a little bit of business expense. You said this was your first year getting paid as an independent contractor, I hope you have been making your estimated payments to the IRS every 3 months or you are going to owe penalties for not sending in money durring the year. Tax is a pay as you go system and when doing contractor you gotta take care of it yourself.
|
|
#
¿
Mar 30, 2011 21:46
|
|
|
intensive purposes posted:Is a taxable student fellowship/stipend "earned income" for the purpose of the Earned Income Tax credit? It seems more like the examples of earned income than the examples of not-earned income listed here, but I'm not sure. The fellowship/stipend income is definitely taxable (confirmed by my school) because receipt of the stipend was conditioned on my completing services (the University paid me a few thousand $ to do an otherwise unpaid public interest internship for a non-university business over the summer)... but they don't generate any tax documentation like a W-2 for it. I'm confused why they don't generate any kind of tax document for you, they probabl should especially if they confirmed that it is taxable. Make sure you meet the other requirements for EITC which is you can't be a dependent and if you are under 25 must have a dependent of your own.
|
|
#
¿
Apr 1, 2011 21:55
|
|
|
|
| # ¿ Apr 28, 2024 21:23 |
|
|
Insurrectum posted:Another question: As a PhD graduate student, I get my tuition paid for to the tune of ~40k a year. I never see any of this money, since I assume it comes out of my university right back into my university. We receive a sheet of paper every year basically telling us "We paid this much to cover your tuition this year." However, I was talking to some other graduate students and it seems like a good portion of them use that to take a deduction, even though we never actually see the money. Is that kosher? Depends. If you have, or can get on their website, a 1099T showing tuition payments then yea you can use it towards the education deductions or credits. ChiliMac posted:So this year was a little unique for me since I had severance from a previous company and I also moved states (I had 4 W2s from only "2" companies). Due to the extra income I couldn't deduct the few normal things I usually do (i.e. Student Loan interest and IRA contributions) so I am/was stuck with ~800 dollars owed for federal. I filed for an extension and put 100% towards it for now. Bottomline: Is there a reasonable expectation that hiring a professional will cover the amount I'd have to pay him? You will probably get more than enough insight and over the long run to cover the cost of meeting with him. For example is there any specific reason why you are making contributions into a traditional IRA(you mentioned the deduction for it) instead of a Roth IRA(pay the tax now)? If you made enough money to have things like student loan interest phase out your paying taxes at a 25%+ level. Tax rates are actually pretty low historically, so the chance of them being higher when you retire in 30-40 years is pretty good. Might be better to pay tax on it now and be able to withdraw it tax free in the future. Captain Beans fucked around with this message at 00:58 on Apr 17, 2011 |
|
#
¿
Apr 17, 2011 00:44
|
|