ATOT's Second Annual Tax Time Thread!

[cpals]

Okay, thanks, that's all I was wondering. One last question and I'm done, really!

For running my own little side business... I usually bought the computer equipment the person needed and then added that plus labor and charged them. What do I put down on the Schedule C for my business income? The real income that comes after I pay for the parts or the total gross income... can I deduct the computer parts that I bought or is that not correct?

 

[EagleKeeper]

Originally posted by: cpals
Okay, thanks, that's all I was wondering. One last question and I'm done, really!

For running my own little side business... I usually bought the computer equipment the person needed and then added that plus labor and charged them. What do I put down on the Schedule C for my business income? The real income that comes after I pay for the parts or the total gross income... can I deduct the computer parts that I bought or is that not correct?

It is best to put down the total gross income that was paid to you by the client.

You have the line items for equipment, parts, etc. to account for the expenses of the actual computer. You should see then you net income from the business.

Remember that then there are line items for utilities, etc.

 

[cpals]

Yay... here comes $22 to me. It would be $488 if I claim myself, but I'll discuss that with my parents. Thanks eagle.

 

[shopbruin]

how much trouble can a company get into if they don't furnish your w2? i worked at my old job for a month and a half in 2004, and i have NOT received my w2 yet. i complained and they have not gotten back to me. i asked another former coworker of mine (who didn't move. i think mine may have been lost due to my move, but i explicitly gave them my parents address as my forwarding address to ward off this scenario) and he has not received his w2 either.

what do i do if i can't get my w2?

 

[ajayjuneja]

So I just did all my taxes and schedule c stuff this evening, and it looks like I am owed 1,095 bucks woot!! Turbo tax is nice and simple, all of it only took 2 hours

The only thing I left out was my student loan interest payments, cause those documents are with my mom. The thing is, I can't really deduct any more than I already did, since I have a loss from 2004 anyway. Can I file without filling in this information or should I go get it from mom?

 

[EagleKeeper]

A company can get fined.

If you ask them to mail it to an exact address and it it not received a second time, have them fax a copy to you.

If it still is not sent, you can contact the IRS.

Also, the info on your last paystub in 2004 can be used as an estimate for preparing the taxes

 

[EagleKeeper]

Originally posted by: cpals
Yay... here comes $22 to me. It would be $488 if I claim myself, but I'll discuss that with my parents. Thanks eagle.

You are probalby worth more than $466 to you parents:Q

 

[EagleKeeper]

Originally posted by: ajayjuneja
So I just did all my taxes and schedule c stuff this evening, and it looks like I am owed 1,095 bucks woot!! Turbo tax is nice and simple, all of it only took 2 hours

The only thing I left out was my student loan interest payments, cause those documents are with my mom. The thing is, I can't really deduct any more than I already did, since I have a loss from 2004 anyway. Can I file without filling in this information or should I go get it from mom?

You do not have to list additional information of deductions if those deductions will not help you. is has an impact

Estimate the interest anyhow just in case

 

[Leejai]

2004 Federal and CA State Tax Returns have already been filed (and refunds received). However, a new W2 just came in the mail. Should another 1040 and 540 be filed seperately, or how is this handled?

 

[EagleKeeper]

Originally posted by: Leejai
2004 Federal and CA State Tax Returns have already been filed (and refunds received). However, a new W2 just came in the mail. Should another 1040 and 540 be filed seperately, or how is this handled?

Federal 1040X will need to be filed.
CA should have a similar situation.

W2s are from when you were working for employers.
How can you no remember that you worked for some-one over the past year.

You are supposed to file your taxes when all paperwork is available and prepared, not just when you feel like it.

 

[Leejai]

Originally posted by: EagleKeeper

Originally posted by: Leejai
2004 Federal and CA State Tax Returns have already been filed (and refunds received). However, a new W2 just came in the mail. Should another 1040 and 540 be filed seperately, or how is this handled?

Federal 1040X will need to be filed.
CA should have a similar situation.

W2s are from when you were working for employers.
How can you no remember that you worked for some-one over the past year.

You are supposed to file your taxes when all paperwork is available and prepared, not just when you feel like it.

Thanks, I asked her the same question and got the same look from her as the smiley.

 

[RIGorous1]

Hi all,

In my USC financial adi package I recieved a cal grant, a pell grant, and a USC grant for $5000, 2000, and 5000 respectively. Do these count as income for my adjusted gross income? How about scholarships? Do scholarships count as taxable income? Also can I claim my book expenses for the lifetime Learning credit? Thanks

 

[bolido2000]

I am an international student and I have been working part time since last sept. I got a W2 where it states that I made around $4200. Could I take advantage of the Hope or Lifetime credit deductions? I got a 1098-T from my school. I know those are limited to US residents and citizens, but I've been in this country for almost 7 years. Thus, I've been filing as a resident for the last couple of years. Thanks

 

[EagleKeeper]

Originally posted by: bolido2000
I am an international student and I have been working part time since last sept. I got a W2 where it states that I made around $4200. Could I take advantage of the Hope or Lifetime credit deductions? I got a 1098-T from my school. I know those are limited to US residents and citizens, but I've been in this country for almost 7 years. Thus, I've been filing as a resident for the last couple of years. Thanks

If you do not have a valid US resident alien ID, you are not classified as a US Resident.

IF the $4200 is your only income, you should be able to avoid paying any Federal taxes due to the imcome level.

Whether you will have to pay CA taxes on your income, we can not answer. Each state has different guidelines.

 

[RIGorous1]

Originally posted by: RIGorous1
Hi all,

In my USC financial adi package I recieved a cal grant, a pell grant, and a USC grant for $5000, 2000, and 5000 respectively. Do these count as income for my adjusted gross income? How about scholarships? Do scholarships count as taxable income? Also can I claim my book expenses for the lifetime Learning credit? Thanks

 

[SarcasticDwarf]

Originally posted by: EagleKeeper

Originally posted by: SarcasticDwarf

Originally posted by: EagleKeeper

Originally posted by: SarcasticDwarf
I am 20 and have always files a 1040EZ as I am claimed as a dependant by my parents. This past year I have made (in addition to my summer job) ~$430 from Google and Comission Junction (ad sales on websites). Where should I report this? I have heard that there are two different spots it can be claimed at.

If you total income will generate no tax liability, there is a line item on the 1040 forms for misc income.

IF there is a tax liability, then you can put the extra income on a Schedule C and then deduct expenses incurred in generation of that income and/or related to it.

So could I deduct the cost of my web hosting?

If it is related to income that you report, yes.

Amazing what can be stretched in terms of expenses for IT/Internet :thumbsup:

ok, I am *finally* starting to do my taxes. What form do I use, the 1040EZ plus attach a schedule C?

 

[EagleKeeper]

Originally posted by: SarcasticDwarf

Originally posted by: EagleKeeper

Originally posted by: SarcasticDwarf

Originally posted by: EagleKeeper

Originally posted by: SarcasticDwarf
I am 20 and have always files a 1040EZ as I am claimed as a dependant by my parents. This past year I have made (in addition to my summer job) ~$430 from Google and Comission Junction (ad sales on websites). Where should I report this? I have heard that there are two different spots it can be claimed at.

If you total income will generate no tax liability, there is a line item on the 1040 forms for misc income.

IF there is a tax liability, then you can put the extra income on a Schedule C and then deduct expenses incurred in generation of that income and/or related to it.

So could I deduct the cost of my web hosting?

If it is related to income that you report, yes.

Amazing what can be stretched in terms of expenses for IT/Internet :thumbsup:

ok, I am *finally* starting to do my taxes. What form do I use, the 1040EZ plus attach a schedule C?

Schedule C requires the 1040.
Use of the 1040 does not affect the tax liability, if anything it allows you to identify other line items that are not in the 1040EX or 1040A.

You may find it very benificial to use Tax S/W. Information is laid out cleaner than the raw forms/schedules and makes erros less likely. Plus the use of it is deductible.

First check to see if you will have a tax liability (tax refund will equal tax paid) by declaring the extra income. If you do not, then by all means use the 1040A, I do not think that the EZ will take non-W2 income.

Make sure that coordinate with your parents on your tax status as a dependant and if you qualify for educational tax credits.

 

[SarcasticDwarf]

Originally posted by: EagleKeeper

Originally posted by: SarcasticDwarf

Originally posted by: EagleKeeper

Originally posted by: SarcasticDwarf

Originally posted by: EagleKeeper

Originally posted by: SarcasticDwarf
I am 20 and have always files a 1040EZ as I am claimed as a dependant by my parents. This past year I have made (in addition to my summer job) ~$430 from Google and Comission Junction (ad sales on websites). Where should I report this? I have heard that there are two different spots it can be claimed at.

If you total income will generate no tax liability, there is a line item on the 1040 forms for misc income.

IF there is a tax liability, then you can put the extra income on a Schedule C and then deduct expenses incurred in generation of that income and/or related to it.

So could I deduct the cost of my web hosting?

If it is related to income that you report, yes.

Amazing what can be stretched in terms of expenses for IT/Internet :thumbsup:

ok, I am *finally* starting to do my taxes. What form do I use, the 1040EZ plus attach a schedule C?

Schedule C requires the 1040.
Use of the 1040 does not affect the tax liability, if anything it allows you to identify other line items that are not in the 1040EX or 1040A.

You may find it very benificial to use Tax S/W. Information is laid out cleaner than the raw forms/schedules and makes erros less likely. Plus the use of it is deductible.

First check to see if you will have a tax liability (tax refund will equal tax paid) by declaring the extra income. If you do not, then by all means use the 1040A, I do not think that the EZ will take non-W2 income.

Make sure that coordinate with your parents on your tax status as a dependant and if you qualify for educational tax credits.

What do you mean by having tax liability? All told, I made about 5200 last year.

Edit: I tried going through TaxAct, but once I got to the point of business codes, I was lost, so I think I need to see someone to help fill it out. My return is only going to be about $300 anyway, so is there someplace I can go to get it done cheaply?

 

[sohcrates]

My company pays for my graduate degree. The finance office at work directly pays the college all tuition and fees.

I just received a form 1098-T, saying i got "2377.75" in "scholarships or grants" (that is 1 semesters fees that company paid for)

I'm using taxact online. If put this number in under "scholarships or grants" my refund is reduced almost in 1/2 (over $700).

My question is: do i have to report this money as scholarship? OR can i report it as "other income"? Or do i even need to report it?

Thanks

 

[EagleKeeper]

Originally posted by: SarcasticDwarfWhat do you mean by having tax liability? All told, I made about 5200 last year.

Edit: I tried going through TaxAct, but once I got to the point of business codes, I was lost, so I think I need to see someone to help fill it out. My return is only going to be about $300 anyway, so is there someplace I can go to get it done cheaply?

When one does their tax forms, they end up with a taxable income after deductions.
If that taxable income is above a certain level, then there is a tax due on it. Tax Liability

Now enough funds may have been withheld from a paycheck during the year so that you do not have to send in additional funds to the government.

Use Business Code 541990 - Covers professional services for Computer systems and Design

Most places Block, Hewitt, etc will charge you at least $50 for the return plus the costs of the state.
You may find a small office or a temp fly-by-night that will charge you less.

You need to decide if your time is worth the cost of doing your return or do you wish to pay some-one else to do it for you.

 

[Taggart]

What form do I use to deduct career counseling? I paid $1000 this year. Thanks.

 

[EagleKeeper]

Originally posted by: sohcrates
My company pays for my graduate degree. The finance office at work directly pays the college all tuition and fees.

I just received a form 1098-T, saying i got "2377.75" in "scholarships or grants" (that is 1 semesters fees that company paid for)

I'm using taxact online. If put this number in under "scholarships or grants" my refund is reduced almost in 1/2 (over $700).

My question is: do i have to report this money as scholarship? OR can i report it as "other income"? Or do i even need to report it?

Thanks

If you are reporting the funds, then you should also be reporting the costs of education.
Most times, you only report the differences between what you received vs what was actually spent in educational costs.

 

[EagleKeeper]

Originally posted by: Taggart
What form do I use to deduct career counseling? I paid $1000 this year. Thanks.

That would fall under misc business expenses - Schedule A/Form 2106.
You must itemize to take advantage of it.

 

[Taggart]

Thanks!!

 

[SarcasticDwarf]

Originally posted by: EagleKeeper

Originally posted by: SarcasticDwarfWhat do you mean by having tax liability? All told, I made about 5200 last year.

Edit: I tried going through TaxAct, but once I got to the point of business codes, I was lost, so I think I need to see someone to help fill it out. My return is only going to be about $300 anyway, so is there someplace I can go to get it done cheaply?

When one does their tax forms, they end up with a taxable income after deductions.
If that taxable income is above a certain level, then there is a tax due on it. Tax Liability

Now enough funds may have been withheld from a paycheck during the year so that you do not have to send in additional funds to the government.

Use Business Code 541990 - Covers professional services for Computer systems and Design

Most places Block, Hewitt, etc will charge you at least $50 for the return plus the costs of the state.
You may find a small office or a temp fly-by-night that will charge you less.

You need to decide if your time is worth the cost of doing your return or do you wish to pay some-one else to do it for you.

ok, I understand the tax liability part. My small business (unregistered) is a website with book information that on the side has affiliate links to book sellers. Would it fall under 541990? I saw a listing for booksellers, but was confused as that seems more a B&M type thing.