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Hopefully someone can help me out with this question. Last year, my wife started her own business as a sole proprietorship. At this point, it's becoming obvious that we don't have the time or resources to invest to make this work. Is there anything we need to do to signal to the IRS that she's giving up and the business is closing? We filed all the schedule C, etc, for 2010 taxes, and we'll do that for 2011 as well (as the business has continued to operate this year). Do we just not do that in 2012 and thats the end of it? If it makes a difference, this was a seriously tiny home business, so there were no business premises, employees, etc.
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Sep 28, 2011 16:19
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| # ¿ May 12, 2024 11:52 |
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I would love to get some clarification on a question. Am I correct that you should regard income/expenses from when they were actually received/paid, not when the underlying event occurred? Specifically, my wife started working at the very end of 2012, so her first actual paycheck wasn't issued until the first week of 2013. Even though she did the work in 2012, that is classified as income for 2013, right? She hasn't gotten a W-2 from them, so that seems right? Does that also apply to other income? We sold some stuff in the 2012 Christmas season but the payment for it wasn't actually deposited until 2013 (basically we sold some art through a gallery, it sold Christmas week, we didn't get the checks until January). Is that also going to be 2013 income? I know that things like medical expenses are counted based on when you pay the bills, not when you get sick, so this seems to make sense to me. It is also a pretty tiny amount of money, but I am terrified that I will do something wrong and the IRS will burn down our apartment.
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Feb 21, 2013 19:48
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Thank you, that's a big help! I wouldn't have considered received versus deposited - we'll have to check, because it's possible we got one check right before the end of the year and didn't actually deposit it until the new year. I appreciate the help!
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Feb 22, 2013 00:43
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Belated, but it's important to note that whether or not you are a 'resident' for tax purposes is a separate matter from your immigration status. You can be (and many people are) a non-resident alien for immigration reasons but still file as resident aliens for tax purposes.
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Apr 20, 2013 15:27
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I didn't see this mentioned anywhere in the OP, maybe it isn't something anyone else struggles with and I am just a dumbass. My wife recently started working, and so I wanted to make sure we were both doing our W-4s correctly. I work full time, she is now working part time (10-15 hours a week) and we have two kids, but no property and we have always taken the standard deduction. I understand that its best for all the withholding to happen on my W-4 (because its the higher income) and for her to put 0, but I am getting kind of befuddled about how many that should be. I used the multiple earner worksheet that comes with the W-4, and it came out to 6. Then I used the IRS W-4 calculator on their website, and it came out to 2. Then I used the ADP one, and it came out to 7. Many of these calculators ask information that isn't listed on the form, but then they're not even consistent across each other? I don't know if this is something people here can/will help with. If not, is there somewhere I can go to get help? Would a tax preparer even help with this, or is it too trivial for them to bother?
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Jan 15, 2015 04:51
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DrBouvenstein posted:I assume this is tax deductible, right? And probably only if I itemize? Post-tax insurance premiums count as medical expenses. However, you can only deduct the cost of medical expenses that exceed 10% of your AGI for the year, and only that if you are itemizing. So if you are paying $2500 in health premiums a year, you would only be able to deduct a fraction of that (if at all) and it will only benefit you if your itemized deductions exceed the standard deduction. This is why pre-tax premiums are a thing and considerable benefit.
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Nov 6, 2015 18:05
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You won't get a 1099-INT if the interest amount if under $10. I am not a tax professional but I don't think that means you can not report that interest, though, you just have to work it out and enter it yourself? I assume that they 1099 is only required above that threshold because generating one for every account that earned any interest at all would increase the number of forms by an order of magnitude and create more burden than it's worth.
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Feb 11, 2016 16:45
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Both my wife and I work, and my job allows me to contribute to a Dependent Care Account with pre-tax dollars. We used this to pay for childcare for our kids during the year. The DCA contribution was $5000, but our actual childcare expenses were considerably more than that. My understanding is that for the tax credit, we can only claim $6000 (Max $3000 per kid, 2 kids), minus the DCA contributions - so $1000 - even if our actual costs were still more than that. Is that right? Mostly I want to make sure that using the DCA doesn't prevent us claiming the credit at all.
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Jan 30, 2018 16:21
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ChineseBuffet posted:That's right. Thank you, I appreciate the confirmation!
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Jan 31, 2018 16:18
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I was filling out my taxes and got a notification that there was an error in my W-2; apparently my SSA withholding was $14 dollars more than it should have been. I notified my employer to get a corrected W-2. Since then there has been a constant rolling promise the new one would be available soon. Last week they finally told me it would be 3-6 weeks to receive the corrected W-2c. I had originally notified them of the mistake the last week of February. This seems pretty unreasonable to me, particular as it means I might be right up on the deadline to file. Is this an acceptable or typical timeline? Can I bring any real pressure to bear on the payroll company? It seems like you can tell the IRS to call your employer, but I don't know if that would actually speed up the process.
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Mar 10, 2024 23:02
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| # ¿ May 12, 2024 11:52 |
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I don't care about the $14, but once the error was flagged it seems like the options are either to wait and file with a corrected W-2c, or paper file with a form 4852 providing the corrected information. It didn't seem like I had the option to ignore it and file anyway.
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Mar 11, 2024 00:27
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