4th Annual Tax Thread - 2006

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Turin39789

Lifer
Nov 21, 2000
12,219
8
81
Originally posted by: EagleKeeper
Originally posted by: Turin39789
I filed in early February , then received a 1099 for some work I did at a catering company ($635) - they shoulda paid me 36 less). I think I have 1040x ready to go through turbotax. I just wanted to make sure that I added the 1099 in right and that I should be paying self employment tax. I basically worked 3 jobs doing food prep and cleanup for some extra cash.

Does my 1040x need to be postmarked tonight?

1) You do not need to file the 1040X by tonight.

2) Seeing how as you received a 1099 - I would hope that you have now started a Schedule C and also looked through the tax threads to see how to reduce the tax bite by entering any type of related expenses on the Schedule C to lower the overall income.

There are costs incurred to get to the job, special equipment for the job required for safety and cleanup, costs incurred in obtaining the job (communication, smoozing) and costs incurred in asking questinos on how to handle the extra income for tax purposes.

If you squeeze hard enough, you should be able to reduce the extra tax bite considerably.

Thanks, I so far just have my mileage(around 200 miles - drove to an even out of town) but I'll try to scroung up some more to get under the $400 for self employment tax. When it asks for business name, business address, should I put in the caterers address on the 1099 or my house address? Also I currently have checked"I use my name as the name of my business, should that be changed to "my business address is the same as my home address? cash method is checked, and i was active in the operation of the business.

Turbotax put it on a schedule c ez, with the auto under section 3. should this be moved to the misc expenses under business travel?
 

EagleKeeper

Discussion Club Moderator<br>Elite Member
Staff member
Oct 30, 2000
42,591
5
0
Originally posted by: Turin39789
Originally posted by: EagleKeeper
Originally posted by: Turin39789
I filed in early February , then received a 1099 for some work I did at a catering company ($635) - they shoulda paid me 36 less). I think I have 1040x ready to go through turbotax. I just wanted to make sure that I added the 1099 in right and that I should be paying self employment tax. I basically worked 3 jobs doing food prep and cleanup for some extra cash.

Does my 1040x need to be postmarked tonight?

1) You do not need to file the 1040X by tonight.

2) Seeing how as you received a 1099 - I would hope that you have now started a Schedule C and also looked through the tax threads to see how to reduce the tax bite by entering any type of related expenses on the Schedule C to lower the overall income.

There are costs incurred to get to the job, special equipment for the job required for safety and cleanup, costs incurred in obtaining the job (communication, smoozing) and costs incurred in asking questinos on how to handle the extra income for tax purposes.

If you squeeze hard enough, you should be able to reduce the extra tax bite considerably.

Thanks, I so far just have my mileage(around 200 miles - drove to an even out of town) but I'll try to scroung up some more to get under the $400 for self employment tax. When it asks for business name, business address, should I put in the caterers address on the 1099 or my house address? Also I currently have checked"I use my name as the name of my business, should that be changed to "my business address is the same as my home address? cash method is checked, and i was active in the operation of the business.

Turbotax put it on a schedule c ez, with the auto under section 3. should this be moved to the misc expenses under business travel?
On the entry screens for the 1099, it may ask for who provided the 1099. That is used for your internal recordkeeping only.

Where is initially asks for names/address of your business, you can assign anything to it unless you have a recorded name. Against this is for paperwork records only. Use your home address.

I never use the Schedule C-Ez so I can not comment on where it puts the information.

Auto mileage will go under business travel. Make sure that the complete auto info is entered. Depending on the mileage and income percentage, you may get depreciation.
For other type of expense that are personal and this business income related, assign an income percentage if you want to, to the expenses.
Special equipment would be clothing, aprons, gloves, boots, trash containers, cleaning supplies, etc that you may have had to supply.

 

EagleKeeper

Discussion Club Moderator<br>Elite Member
Staff member
Oct 30, 2000
42,591
5
0
Good Luck to those that have procrastinated.

If you do not feel confident, file for an extension rather than making a mistake or needing to file a 1040X.

I will be back on line Wed AM to listen for accolades and crys of pain.
 

spidey07

No Lifer
Aug 4, 2000
65,469
5
76
Originally posted by: EagleKeeper
Good Luck to those that have procrastinated.

If you do not feel confident, file for an extension rather than making a mistake or needing to file a 1040X.

I will be back on line Wed AM to listen for accolades and crys of pain.

Crys of pain...

I e-filed with turbo-tax. Not confirmed yet. I owed on fed, refund on state. What can I do for owing on fed? *calling IRS now*

-edit-
LOL! So that didn't turn out so great. I ask a few simple questions of the IRS rep (like can I give you a card or bank account to withdraw funds if you do not receive my e-file as a backup?) and got hung up on. At least I tried, I know they are probably slammed out the wazzoo but jeez.
 

her209

No Lifer
Oct 11, 2000
56,352
11
0
Originally posted by: EagleKeeper
Good Luck to those that have procrastinated.

If you do not feel confident, file for an extension rather than making a mistake or needing to file a 1040X.

I will be back on line Wed AM to listen for accolades and crys of pain.
LOL... thank god I filed last night. Our electricity went out right when I got home and just came back on.

:D
 

Mloot

Diamond Member
Aug 24, 2002
3,042
25
91
My wife e-filed our taxes last night at around 10:30pm. She had done the preliminary figures back in February, and it looked as if we were going to have to pay a few hundred to the IRS, and by gum, we were not going to give the government any more $$ before we absolutely had to. Anyway, while double-checking the figures last night, she found a mistake she had made and it turns out we are getting a refund instead. :D
 

EagleKeeper

Discussion Club Moderator<br>Elite Member
Staff member
Oct 30, 2000
42,591
5
0
Originally posted by: spidey07
Originally posted by: EagleKeeper
Good Luck to those that have procrastinated.

If you do not feel confident, file for an extension rather than making a mistake or needing to file a 1040X.

I will be back on line Wed AM to listen for accolades and crys of pain.

Crys of pain...

I e-filed with turbo-tax. Not confirmed yet. I owed on fed, refund on state. What can I do for owing on fed? *calling IRS now*

-edit-
LOL! So that didn't turn out so great. I ask a few simple questions of the IRS rep (like can I give you a card or bank account to withdraw funds if you do not receive my e-file as a backup?) and got hung up on. At least I tried, I know they are probably slammed out the wazzoo but jeez.
when you e-file, you have the option of putting in your bank account or a CC so they can take the funds that you owe.

Same as direct deposit, but in reverse.

Because you e-filed, the time stamp will indicate the first filing attemtp if there is problems.

 

spidey07

No Lifer
Aug 4, 2000
65,469
5
76
Originally posted by: EagleKeeper
Originally posted by: spidey07
Originally posted by: EagleKeeper
Good Luck to those that have procrastinated.

If you do not feel confident, file for an extension rather than making a mistake or needing to file a 1040X.

I will be back on line Wed AM to listen for accolades and crys of pain.

Crys of pain...

I e-filed with turbo-tax. Not confirmed yet. I owed on fed, refund on state. What can I do for owing on fed? *calling IRS now*

-edit-
LOL! So that didn't turn out so great. I ask a few simple questions of the IRS rep (like can I give you a card or bank account to withdraw funds if you do not receive my e-file as a backup?) and got hung up on. At least I tried, I know they are probably slammed out the wazzoo but jeez.
when you e-file, you have the option of putting in your bank account or a CC so they can take the funds that you owe.

Same as direct deposit, but in reverse.

Because you e-filed, the time stamp will indicate the first filing attemtp if there is problems.

Thanks again for the assistance and re-assurance. Checked my bank and the IRS got their Money on Monday when I filed. The withdrawl wasn't on my account Monday/Tuesday/Wednesday. Only until 4/19 did a withdrawl for 4/16 appear.

Might have been a "back dated" transaction or whatever Intuit/IRS figured out what to do.

 

Muse

Lifer
Jul 11, 2001
37,404
8,038
136
I've been wondering for years now:

If you don't efile ($16 if you use Turbotax), does that mean some federal worker has to sit there and enter your return on a computer?

If so, I have to wonder why the government doesn't let you efile for free (i.e. upload your digital return). :confused: Same with state, of course.
 

axelfox

Diamond Member
Oct 13, 1999
6,721
1
0
What is the available write off for depreciation of office equipment (for a sole prop)?

Is it a straight line? How many years?

Does it depend on the equipment? Laptop, MFC?

How does this relate to writing the entire expense off in the first year?
 

EagleKeeper

Discussion Club Moderator<br>Elite Member
Staff member
Oct 30, 2000
42,591
5
0
Originally posted by: Muse
I've been wondering for years now:

If you don't efile ($16 if you use Turbotax), does that mean some federal worker has to sit there and enter your return on a computer?

If so, I have to wonder why the government doesn't let you efile for free (i.e. upload your digital return). :confused: Same with state, of course.
Someone has to develop the S/W for e-filing.

If you look at the OP, there were ways to e-filing the Federal for free.
There is not a way to do it from home and then upload the file. :(

 

EagleKeeper

Discussion Club Moderator<br>Elite Member
Staff member
Oct 30, 2000
42,591
5
0
Originally posted by: axelfox
What is the available write off for depreciation of office equipment (for a sole prop)?

Is it a straight line? How many years?

Does it depend on the equipment? Laptop, MFC?

How does this relate to writing the entire expense off in the first year?

Each type of equipment has its own depreciation schedule.

There is also what is called the Section 179 for the Schedule C for immediate write offs.

 

TraumaRN

Diamond Member
Jun 5, 2005
6,893
63
91
How screwed am I that I accidentally mailed for my refund without including my W-2's..... :(

I'm such an idiot...
 

bmacd

Lifer
Jan 15, 2001
10,869
1
0
I've switched jobs within the US Army and I'm no longer able to claim all of my mileage and job purchases. I did my taxes for the first time on my own this year (using TaxCut), so I'm not very savvy with all of the lingo. If I purchase items to use at work, can I get reimbursed for them in my taxes as long as I keep receipts? (itemizing ???)

Thanks,

-Bill
 

EagleKeeper

Discussion Club Moderator<br>Elite Member
Staff member
Oct 30, 2000
42,591
5
0
Originally posted by: bmacd
I've switched jobs within the US Army and I'm no longer able to claim all of my mileage and job purchases. I did my taxes for the first time on my own this year (using TaxCut), so I'm not very savvy with all of the lingo. If I purchase items to use at work, can I get reimbursed for them in my taxes as long as I keep receipts? (itemizing ???)

Thanks,

-Bill
If the items are needed for present employment or to enhance your employment value, then they can be considered a business expense.

They will have to be entered on Form 2106 and you must use the Schedule A for the Form 2106 to have any impact.

 

bmacd

Lifer
Jan 15, 2001
10,869
1
0
Should I expect to get a full reimbursement for these items that I claim or am I going to get a small percentage? How will claiming these items affect the rest of my taxes?