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I owe IRS $1500 !!!!

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You get a credit for any tuition and/or books you buy throughout the year. Did you give your tax accountant this information? Are your parents claiming you? If so, they are getting the college credit.

I'm certified in taxes let me know if you have any additional questions.
 
Originally posted by: axiom
If your employer was not witholding the tax money already then you will have to pay taxes. $15,000 is pretty damn good pay for a college student. In fact, that is probably the best pay I have ever seen for a full time college student. I'm sure that amount raises an alarm with the IRS. In my work study program to contribute towards my college costs I only managed $2500 per year.

What kind of work are you doing?
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You could make 15K doing a co-op. Also MBA & PhD students can make 15K just working over the summer at an internship.
 
Good News and Bad news:


Good news - as an independent contractor you can write off costs of business, such as mileage, supplies, phone usage and other business related expenses, as well as deduction to AGI for half of SS tax paid in. And since it seems you will file as single you will have standard deduction at least, as well as possible tuition interest or other educational expenses (depending on your situation). Your FIT will probably be below $1500.


Bad news - as an independent contractor you will have to pay in Social Security taxes.
 
Welcome to the world of form 1099. Form 1099, as opposed to form W-2 you usually get when you are a real employee, pretty much means that your employer reports your earnings to the IRS so that they know to hit you up, but they don't actually deduct the tax from your pay check.

Quite frankly, it's really the way it ought to be done. Everybody likes to get a tax refund, but guess what: IT'S YOUR MONEY! They just sat on it for the whole freaking year collecting interest on it. The gov't takes more than it needs, uses it for its own benefit, and then they make you ask for it back! Sometimes they make it HARD for you to get it back! It's absurd.

Anyway, 10% is about what I was paying, too, but I knew what it meant to be on a 1099 and I kept a couple thousand dollars separate for when I had to pay the piper.
Another important thing is that you can be penalized if you owe too much! One year I owed so much (I was also a high-paid college pauper) that I had to pay an extra 5% or something like that. I later learned to send in some money quaterly to avoid this penalty.

Good luck.
 
think i did but i must've missed a lot, that's why i need to talk to someone expert


Remember you can file deductions for expenses, either you itemize them or you go by mileage (something like around 35cents/mile) So, if you drive, say 30miles/day for 365 days, thats around $3,000. I think if you are a full-time student, you get a deduction too. You better talk to an accountant or a tax guy about it.
 
If he was misclassified I believe the company that employed him would end up having to pay his backtaxes. Most companies are ignorant of the fact that you can't just call somebody an independent contractor; they have to meet certain requirements.
 
Originally posted by: SyahM
just find out that I owe them freaking $1500!! why? Ok, when I was at school I part-timed as an independent contractor so the company sent me form 1099-MISC with over $15k in nonemployee compensation. I know i'm obligated to pay taxes but with that money, I pay my college fees and expenses. According to IRS website, I could request a waiver, but how am i going to go about requesting one? Can you guys recommend me a good tax lawyer/accountant that could help me with this issue. Really, $1500 is too much 🙁 🙁
BTW, i'm from st. louis.
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maybe you can deduct your tuition as a business expense....

 
when i worked as an independent contractor/paid by 1099 , i kept out 10% of each check and paid estimated quarterly income taxes

you best start selling your non-essentials and get it paid off
 
fettsbabe, thanks for your offer. I'll PM you if i have addy questions.
I own the business, and of course, they are a lot of expenses. I'm going to see tax accountant soon but afraid they might charge arm and leg for this.
 
Whining about $1500? LOL. Plenty of us are paying much more than that, I can only DREAM of $1500 in taxes. If you want some help, hire H&R Block, or an accountant -- they may be able to assist you. The money we pay to an accountant saves us a lot when it comes to paying taxes. Their fee is even deductable!

vash
 
what exactly did you do as an independent contractor..

when i was in school, i worked for a auto finance company as a file clerk.. they labelled me as an independent contractor (and the letter stating that they hired me also mentioned that fact). i really didnt think about it till it was tax time and then realized that i was going to have to pay mucho on taxes.. did alittle research and found out that technically i wasnt considered a independent contractor. they treated me as any other employee that worked there, i had set hours and wages, and i used their equipment (not equipment of my trade, like there is one for a file clerk.. 😛)

to make the long story short, i went thru the long process with the irs to determine whether or not i was considered an independent contractor or an employee. in the end, the ruling was in my favor and i didnt have to pay all that self-employment tax.. 😀

so definately talk to a lawyer/tax consultant. dont know any myself. good luck. 🙂
 
It almost doesn't matter what an accountant will charge if your tax bill is reduced because of the expertise they have.

Here's a tip - document all your expenses - out-of-pocket costs, mileage, etc. Organize them and all your other tax-related documentation neatly by category. You want to make it as easy for the accountant as possible, so you don't end up paying $50 per hour for someone to sort out a big shoebox of receipts.

By all means, ask up front what you will be charged. Show them how you have your expenses organized.And get to it now, because as time goes on they get so busy you might have a hard time finding someone to take you.
 
So some people in this thread are saying that you can claim tuition and book expenses towards tax credit? How is this done and how much can you claim? I have done my taxes the last couple of years with TaxCut. I have claimed the Hope learning credit, but there has been nothing about claiming credit for tuition and book expenses incurred. Would you have to itemize to do this? If someone has information on this please respond. Thank you.
 
Originally posted by: X-Man
Originally posted by: n0cmonkey
10% is too much? Jeez, I wish I only had to pay 10% in taxes...
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No crap, I paid 27% . . . . almost $14,000.
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Just finished mine today. I was whining to the wife about what we owe. Now I don't feel so bad.
 
Originally posted by: Aceshigh
So some people in this thread are saying that you can claim tuition and book expenses towards tax credit? How is this done and how much can you claim? I have done my taxes the last couple of years with TaxCut. I have claimed the Hope learning credit, but there has been nothing about claiming credit for tuition and book expenses incurred. Would you have to itemize to do this? If someone has information on this please respond. Thank you.
Click to expand...

Bump.
 
well .. i didnt get a chance to meet with tax accountant today mainly because I didnt know where to look for a good one. I ask ppl around and most of them gave negative comments on H&R. Maybe I go see tax professor at my school.

yeah, 10% is not that bad... it just that I wish i had known earlier that I have to pay so that I could have save the money.
 
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