7th Annual Anandtech Tax Time Thread

[EagleKeeper]

Previously it was not a serious problem until the governmetn decided to allow child care expenses to be written off. At that point, everyone that had any kid started to take the credit. So the IRS started asking for the provider ID. Now grandparents and relatives are not able to get off scott free by taking care of the little ones and letting the parents write off a chunk of change.

 

[WannaFly]

Question:
I received a 1099-MISC for $4k of side work I did for my last employer (not current employer). When entering it into tax software - it reduces my refund by nearly $1500. From what I read the taxes should only be 15.3% of this - Any idea why is it reducing it so much? I'm in the 25% tax bracket

 

[EagleKeeper]

Question:
I received a 1099-MISC for $4k of side work I did for my last employer (not current employer). When entering it into tax software - it reduces my refund by nearly $1500. From what I read the taxes should only be 15.3% of this - Any idea why is it reducing it so much? I'm in the 25% tax bracket

The 15.3 is for the sel employment taxes. (SS). You still have the normal Federal tax.

So there is about 40% overal tax on you.
Because you will have to file a Schedule C, start digging up related expenses

 

[WannaFly]

The 15.3 is for the sel employment taxes. (SS). You still have the normal Federal tax.

So there is about 40% overal tax on you.
Because you will have to file a Schedule C, start digging up related expenses

Wow - thanks for the response. I was afraid it was correct. I'll have to raise my hourly rate! hah

I'm not sure what expenses I can relate, overall it'd be a very small percentage of my laptop/home office - its less than 80 hours of work.

 

[EagleKeeper]

Internet availability

Reference materials

Travel expenses/Mileage/vehicle depreciation/insurance.

Office utilities

 

[daniel49]

My Granddaughter (2 years old)is half native american and as such recieves a small amount of money each year from the tribe.(800.00 this year)

I am clueless as to how to advise my daughter when it comes to tax time on these funds.
There seemed to be a stipulation for amounts less then 950.00 for unearned income..but thats about all I could find.
any advice appreciated.

 

[alkemyst]

AFAIK Native American income is a 'gift from the government' more or less and not subject to taxes.

 

[daniel49]

AFAIK Native American income is a 'gift from the government' more or less and not subject to taxes.

I think its more fon revenue the tribe generates from casino...etc then a gift.

there also seemed to be some stipulation if they were off or on the res also?
But I think that was for taxes other then income.

 

[alkemyst]

I spoke to my neighbor about his friend that gets the money...his deal is different it had to do with the government displacing his family/reservation at some point in history and their decendants get basically room and board support plus some income for lost wages. He is not sure if they pay tax or not, but it's about $2,000 a month they get.

 

[Eli]

Ah, crap.

So, I filed my taxes last week. Well, today I got a W2 in the mail that I completely forgot about?

What do I do? lol

 

[Xcobra]

Ah, crap.

So, I filed my taxes last week. Well, today I got a W2 in the mail that I completely forgot about?

What do I do? lol

Amended return.

 

[EagleKeeper]

My Granddaughter (2 years old)is half native american and as such recieves a small amount of money each year from the tribe.(800.00 this year)

I am clueless as to how to advise my daughter when it comes to tax time on these funds.
There seemed to be a stipulation for amounts less then 950.00 for unearned income..but thats about all I could find.
any advice appreciated.

If the funds are tracked by the Feds; she (duaghter and/or granddaughter should get a form that details how the funds are allocated. From that point, you can determine what/if any tax is owed.

 

[EagleKeeper]

Ah, crap.

So, I filed my taxes last week. Well, today I got a W2 in the mail that I completely forgot about?

What do I do? lol

Amended return.

1040X - I do not think it can be submitted electronically

 

[milehigh]

Our heat pump quit during 2009 and the replacement cost was $8500. It didn't qualify as an energy efficient model.

However..I work 100% from home and take a home office deduction. Does that $8500 qualify as repairs / maintenance? (of course only for the proportion of the office / the entire house).

 

[alkemyst]

Our heat pump quit during 2009 and the replacement cost was $8500. It didn't qualify as an energy efficient model.

However..I work 100% from home and take a home office deduction. Does that $8500 qualify as repairs / maintenance? (of course only for the proportion of the office / the entire house).

It should be deductable based on the percentage of the home office...there is alot of rules on the home office deal as everyone with a Dell and a consulting business thinks they can write off everything.

 

[daniel49]

If the funds are tracked by the Feds; she (duaghter and/or granddaughter should get a form that details how the funds are allocated. From that point, you can determine what/if any tax is owed.

they sent a 1099misc form with the amount on it and thats about it.
whats the minumum amount required where a minor has to file a claim with unearned income like this? I thought I saw 950.00 in turbo documentation.

 

[EagleKeeper]

they sent a 1099misc form with the amount on it and thats about it.
whats the minumum amount required where a minor has to file a claim with unearned income like this? I thought I saw 950.00 in turbo documentation.

$950 is correct
IRS FAQ

 

[Chrono]

Question. My sister is 25 and unemployed. In 2009 she worked part time for about 4 months earning about 8-9k for that time period. She lives with me. Can I claim her using head of household?

 

[onza]

Question. My sister is 25 and unemployed. In 2009 she worked part time for about 4 months earning about 8-9k for that time period. She lives with me. Can I claim her using head of household?

http://forums.anandtech.com/showpost.php?p=29099915&postcount=27

I would look here.

 

[EagleKeeper]

Question. My sister is 25 and unemployed. In 2009 she worked part time for about 4 months earning about 8-9k for that time period. She lives with me. Can I claim her using head of household?

You can not based on the income test described below

From Pub 501 - Dependants

Qualifying Relative
There are four tests that must be met for a person to be your qualifying relative. The four tests are:

• Not a qualifying child test,
  
• Member of household or relationship test,
  
• Gross income test, and
  
• Support test.

Age. Unlike a qualifying child, a qualifying relative can be any age. There is no age test for a qualifying relative.

Not a Qualifying Child Test
A child is not your qualifying relative if the child is your qualifying child or the qualifying child of any other taxpayer.

Member of Household or Relationship Test
To meet this test, a person must either:

Live with you all year as a member of your household, or

Be related to you in one of the ways listed under Relatives who do not have to live with you .

Relatives who do not have to live with you. A person related to you in any of the following ways does not have to live with you all year as a member of your household to meet this test.

• Your child, stepchild, foster child, or a descendant of any of them (for example, your grandchild). (A legally adopted child is considered your child.)
  
• Your brother, sister, half brother, half sister, stepbrother, or stepsister.
  
• Your father, mother, grandparent, or other direct ancestor, but not foster parent.
  
• Your stepfather or stepmother.
  
• A son or daughter of your brother or sister.
  
• A brother or sister of your father or mother.
  
• Your son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law.

Gross Income Test
To meet this test, a person's gross income for the year must be less than $3,650.

Support Test (To Be a Qualifying Relative)
To meet this test, you generally must provide more than half of a person's total support during the calendar year.

 

[JeffreyLebowski]

FYI. Don't cheat on your taxes. IRS is getting shotguns.
https://www.fbo.gov/index?s=opportu...aba699e80621d&tab=core&_cview=1&cck=1&au=&ck=

 

[alexeikgb]

Hey everyone,
I have a 5405 question.... I bought a house in August 2009, and as far as I can see I have the option of amending my 2008 return via 1040x or file the 5405 with the 2009 return.

The issue is that if I file with 2009, my AGI would prevent me from collecting the $8,000 Home Buyer Credit. BUT if I amend the 2008 return, I would get the full $8,000.

Is there any rules about when I can amend my 2008 return. Is it just a 1040x + 5405?
I am hoping to send the 1040x within a week, and then e-file the 2009 return.

Any thoughts?

Thanks in advance....
Alexei

 

[trmiv]

My wife is a teacher and spends a lot of pocket on teaching related things for her classroom, students, etc. There is a $250 deduction we can take, but she spends much more. If we itemize can we claim all of these types of expenses, or are we still limited to the $250?

 

[Homerboy]

Can I deduct my COBRA payments for me and my dependents (wife and children) at all?

I'm using Turbo Tax and I searched but all they have is a wizard to see if you need to repay the premium assistance program (the 35% program) which I did take part in, but do not have to repay.

 

[Joemonkey]

I have 3 accounts that earn interest but none of them earned over $10, so I received no 1099 on any of them. Do I still need to report the interest? It may sound petty but I don't want to be audited over $15 I didn't report