hey, in another thread you said this. what type of system would you propose which would be more fair? or how does the current graduated system benefit the wealthy the most?
My girlfriend and I deliver newspapers to get the bills paid while we are in school and we are paid as independent contractors by the paper. I am used to being paid as a regular hourly employee and having my taxes taken out automatically and such. How will this be different than what I am used to?
Also, what can I put as a deduction from my job? (Gas, car payment, insurance, cell phone, etc?)
Also, what can I put as a deduction from my job? (Gas, car payment, insurance, cell phone, etc?)
I do online trading and do my DD online, I think I can deduct my internet access as an expense right? 
CPA,
Do you think a Married couple making right around 100k or maybe a little more depending on what the W2's say, who do not own a home, and have no complicated investments would be well served by off the shelf tax software such as TaxCut, or should we have an accountant do our taxes?
Thanks,
Justin
Do you think a Married couple making right around 100k or maybe a little more depending on what the W2's say, who do not own a home, and have no complicated investments would be well served by off the shelf tax software such as TaxCut, or should we have an accountant do our taxes?
Thanks,
Justin
how about the sale tax that I have to fill in for ny state tax form? I just want to put a 0 in there. too lazy to go over what I have purchased without paying taxes.
I make very little money, not more than $6000 a year and a college student. I worked at burger's king for 3-4 months and made $1600, $300-$400 of those went to taxes. :Q I must get those back or I wouldn't have to file the tax form?
I make very little money, not more than $6000 a year and a college student. I worked at burger's king for 3-4 months and made $1600, $300-$400 of those went to taxes. :Q I must get those back or I wouldn't have to file the tax form?
Justin,
I am certified in taxes as well so I will try to help. Any other comments from other tax preparers/Accountants/CPA's are welcome.
In your case it really doesn't matter which method you use.
A large portion of your income is going to go directly to the government and state because you have no tax deductions to list on the Schedule A.
For example, I would suggest you buying a vacation home (condo, etc) or possibly buy a home, so you have some type of tax writeoff other than the typical standard deduction. When you do this you will have interest income that you can have deducted from your gross salary. You can also deduct: donations, mileage for leaders in Cub Scouts or other volunteer agencies, real estate tax, car tax, etc.
It is only until you buy a home that you really start to save money in taxes and gain more in property.
I would also suggest to you that if you are going to purchase real estate that you should purchase it within the first/second quarter in 2004 as the interest rates will go up once the economy and stock market becomes stable again. 6% on a 120,000 home is approximately $700 a month. Then add $150 (approximately) for escrow (taxes, insurance, etc). $850 for a $120,000 is a great investment. Its probably close to apartment rent in your area.
I am certified in taxes as well so I will try to help. Any other comments from other tax preparers/Accountants/CPA's are welcome.
In your case it really doesn't matter which method you use.
A large portion of your income is going to go directly to the government and state because you have no tax deductions to list on the Schedule A.
For example, I would suggest you buying a vacation home (condo, etc) or possibly buy a home, so you have some type of tax writeoff other than the typical standard deduction. When you do this you will have interest income that you can have deducted from your gross salary. You can also deduct: donations, mileage for leaders in Cub Scouts or other volunteer agencies, real estate tax, car tax, etc.
It is only until you buy a home that you really start to save money in taxes and gain more in property.
I would also suggest to you that if you are going to purchase real estate that you should purchase it within the first/second quarter in 2004 as the interest rates will go up once the economy and stock market becomes stable again. 6% on a 120,000 home is approximately $700 a month. Then add $150 (approximately) for escrow (taxes, insurance, etc). $850 for a $120,000 is a great investment. Its probably close to apartment rent in your area.
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If you rent out the house, then the rent becomes a business income; interest and mortgage payments, maintainence and all those other goodies become a expense against the rent as well as depreciation of the residence.
Most tax S/W handles this situation nicely, however, you have to provide the numbers.
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Follow other advice previously given for those who are self employed.
Fill out Schedule C and take as many expenses against this income as possible.
Sample examples have previously been posted. Most tax S/W will provide you with additional examples and hints.
Just make sure that you can back up your numbers with receipts and/or logs.
Car Payments are not expensed, however, interest on the payment is. The car purchase is the expenses and depreciation is written off against it.
Job expenses are deductable in Schedule A via Form 2106. Only those which an employer would remburse you for within your actual job duties.
The IRS is very specific on this. Only way around is expenses occured with two active job. Then expenses between the two jobs are valid.
Zebo
Elite Member
- Jul 29, 2001
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Buy two homes. Kick the tenat out and pay hardy any taxes.
Married couples or co-owners who file taxes jointly may keep $500,000 in profits tax-free on the sale of a home they have owned and lived in for two of the past five years. Roll them every 4 and live off this profit. I try and pay almost as much intrest as I make in regular job income.
Married couples or co-owners who file taxes jointly may keep $500,000 in profits tax-free on the sale of a home they have owned and lived in for two of the past five years. Roll them every 4 and live off this profit. I try and pay almost as much intrest as I make in regular job income.
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See above response regarding house rent.
The same circumstances apply to a room rent. Just adjust the percentages based on square footage.
I had this situation before and per the IRS advice; one can take the
room area / house area
or
room area / sum(bedroom areas)
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Originally posted by: richardycc
I do online trading and do my DD online, I think I can deduct my internet access as an expense right?
Expenses related to the trading (Internet Access & computer equipment) can go against the trading profits. Computer equipment will have to be depreciated base on % of time the used for On-line trading/research.
DD & Trading at same time will cost you money :evil:
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There seems to be no need for an accountant. Tax S/W and/or by hand should do you fine.
You are donating are large amount of wealth to your Uncle.
Start on getting a house to start with, possibly adding a dependent
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Originally posted by: DaWhim
how about the sale tax that I have to fill in for ny state tax form? I just want to put a 0 in there. too lazy to go over what I have purchased without paying taxes.
I make very little money, not more than $6000 a year and a college student. I worked at burger's king for 3-4 months and made $1600, $300-$400 of those went to taxes. :Q I must get those back or I wouldn't have to file the tax form?
I do not know about NY state taxes. If you choose to put 0, they will be happy. More money for the pols to spend :disgust:
If you have money due to you from the Fed, you do not have to file. Donate your money - they do not care.
the state may require you to file regardless.
If you are owed money, at least determine the amount owed to you.
If then you do not want it, I will provide my Paypal account for you to have it sent there.
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Tax S/W will easily allow you to perform what ifs
Set up two scenerios.
a) Your mother w/ you and play with #1,2 - record the best option
b) You as an indendent - record the best option
Then choose the number that makes the most sense to the overall household.
The Hope deduction for the $4k (tuition?) will have a greater impact on reducing the bottom line (50% = $2K) than the Lifetime Credit(20% = $800).
Normally, the larger amount that can be removed from the higher income level, the better benefit to the bottom line
ie. The tax rate on $48K is higher than that on $10K - therefore either type of reduction should be worth more to the $48K income
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Originally posted by: m2kewl
1- yes, i would take it that OTB means in cash. let's assume that the employer wrote mrs x payments in business checks and not report on 1099. then i assume it's traceable - since banks are forced to report to irs deposits correct?? supposed the employer said "look, i'll eat the taxesfor you but pay you very low rate for your work"
2- true, but i was answering eaglekeeper's question about paying it all back then no harm done. how does soemthing like that work?
that is all - my last questions on this fictitious tax situation.
Response:
If not reported on 1099or W2, then the employer is not reporting it as income to the IRS. If the employer gets audited, then the checks are an indication of a business expense only. If a finger gets pointed to Mrs x, and the checks are not cashed by her, she is clear. If she cashes a check then it should be reported even if there was no 1099/W2.
If the employer eats the taxes, then they would have to indicate those taxes being paid on the 1099/W2 for Fed, State, SS and any others that Mrs x is responsible for.
ok, this is probably a waste of your time, so you dont have to answer if you dont want to.
im 17 and i know NOTHING about taxes. i also make very little of course :-/ can you just explain to me what i need to do, if anything, regarding taxes this year?
my paycheck that i recieved 12/19/03 says
and
my next paycheck, that i recieved 1/2/04 has reset the YTD earnings, even though the pay period ended 12/27/03. why is this?
sorry if this is a waste of your time, i am just so confused what i need to do? do i get money back? i dont think i have to pay anything since i make so little...
also, i just thought of this.. i quit a job in 4/03... got another one, quit that (yeah i know.. too many jobs.. i got really sick though, so i was forced to quit the second), and then got my current job. do my two previous jobs effect anything?
ok this is getting long, thanks for your help
im 17 and i know NOTHING about taxes. i also make very little of course :-/ can you just explain to me what i need to do, if anything, regarding taxes this year?
my paycheck that i recieved 12/19/03 says
:*(
and
my next paycheck, that i recieved 1/2/04 has reset the YTD earnings, even though the pay period ended 12/27/03. why is this?
sorry if this is a waste of your time, i am just so confused what i need to do? do i get money back? i dont think i have to pay anything since i make so little...
also, i just thought of this.. i quit a job in 4/03... got another one, quit that (yeah i know.. too many jobs.. i got really sick though, so i was forced to quit the second), and then got my current job. do my two previous jobs effect anything?
ok this is getting long, thanks for your help
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Originally posted by: caitlion
ok, this is probably a waste of your time, so you dont have to answer if you dont want to.
im 17 and i know NOTHING about taxes. i also make very little of course :-/ can you just explain to me what i need to do, if anything, regarding taxes this year?
my paycheck that i recieved 12/19/03 says
:*(
and
my next paycheck, that i recieved 1/2/04 has reset the YTD earnings, even though the pay period ended 12/27/03. why is this?
sorry if this is a waste of your time, i am just so confused what i need to do? do i get money back? i dont think i have to pay anything since i make so little...
also, i just thought of this.. i quit a job in 4/03... got another one, quit that (yeah i know.. too many jobs.. i got really sick though, so i was forced to quit the second), and then got my current job. do my two previous jobs effect anything?
ok this is getting long, thanks for your help
------------------------------------------------------------------------------
Response:
YTD earnings show as the year when paid, not when earned.
The sum of all income from all the jobs is what your taxes are calculated on. Make sure that you enter data from all jobs using the provided W2s
Multiple jobs may cause a slight reduction in the overall withholding required.
With your income, use TurboTax Web. Free use and filing for the Federal.
I do not know about the AZ state. The state should have a simple form that you can copy information from your Federal printout.
i will get w-2s from my current job, correct? but what about the other two? will they send me them or something?
thanks so much for the help
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Originally posted by: caitlion
i will get w-2s from my current job, correct? but what about the other two? will they send me them or something?
thanks so much for the help
Every employer is required by law to provide a W2 for the earnings from the previous year. This is supposed to be provide by the end of January.
If you do not recieve one by the first week of Feb, contact the employer and ask for a copy.
For jobs that started and ended work within the same year, the numbers that you see on the last paystub should match the W2 and allow you to due advance entries/planning for your taxes.
Question about Capital Gains and Losses
I am re-filing my 2000 tax returns due to a mistake I made with some Non-Employee Compensation.
In addition to the Schedule SE stuff, I am also wanting to file a Schedule D.
In 2000 I sold a total of $5,416.00 in stocks/bonds that I took a failrly significant loss on (in terms of price purchased vs. price at sale time)
What kind of deduction can I expect to receive for this ?
I am re-filing my 2000 tax returns due to a mistake I made with some Non-Employee Compensation.
In addition to the Schedule SE stuff, I am also wanting to file a Schedule D.
In 2000 I sold a total of $5,416.00 in stocks/bonds that I took a failrly significant loss on (in terms of price purchased vs. price at sale time)
What kind of deduction can I expect to receive for this ?
Originally posted by: EagleKeeper
Originally posted by: caitlion
i will get w-2s from my current job, correct? but what about the other two? will they send me them or something?
thanks so much for the help
Every employer is required by law to provide a W2 for the earnings from the previous year. This is supposed to be provide by the end of January.
If you do not recieve one by the first week of Feb, contact the employer and ask for a copy.
For jobs that started and ended work within the same year, the numbers that you see on the last paystub should match the W2 and allow you to due advance entries/planning for your taxes.
ok, cool. thanks again!
alkemyst
No Lifer
- Feb 13, 2001
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I have to figure out the $30k I made last year as a self-employed contractor (not bad considering I sit at home and this was my first year) and then offset that I am hoping to make $60k this year. I was going to switch to a 'real job' but I am glad I stuck with this...how else could I nef all day and be paid
Last year I wrote off part of my PC, car for a few business trips, stationary and the like....with my wife's INS stuff though my records are a little lousey since I was focusing on that. I am sure there are a lot of other expenses I am overlooking.
I will probably owe a penalty too....I am trying to minimize the impact of this, and plan ahead for next year now.
Thanks
Å
Last year I wrote off part of my PC, car for a few business trips, stationary and the like....with my wife's INS stuff though my records are a little lousey since I was focusing on that. I am sure there are a lot of other expenses I am overlooking.
I will probably owe a penalty too....I am trying to minimize the impact of this, and plan ahead for next year now.
Thanks
Å
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As a rough estimate, look at the tax bracket % that you were in. Take that % and calculate against the loss.
Make sure that you also account for brokerage fees and other expenses used to keep track of the investments.
Here is my situation. Me and my girlfriend bought a house last december and curious how to handle this. I run a small uniform business out of my basement probably did about 10k worth of sales this year(maybe 3k-4k profit). I have a few questions. should i just leave the uniform business out of the picture and pretend like it doesn't exist? also last year we had about 1500 in closing costs that they sent us a form for. I sent it to the guy that did my taxes last year, but he didn't do anything with it. I kinda forgot about it and curious if I should have gotten some extra $ back with it. and lastly if we both live in the house and the mortgage is in both our names, does it matter which one of us files with the house, or can we both do it? and lastly, I've spent a few grand on home improvements is there anything I can do with those?
I'd just like to thank you in advance this has been on my mind for quite awhile, and I don't know any tax people.
I'd just like to thank you in advance this has been on my mind for quite awhile, and I don't know any tax people.
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