Technically, yes, you should file a Schedule C. I'll bet you have enough or close enough in deductions to offset most of that income.
CPA do you mean potential deductions directly related to the earning of that income? Or just deductions in general?
My only real deduction is student loan interest. Paid about $800 of it this year. Otherwise no house/wife/kids etc.
Deductions in terms of items to offset the income reported on the Schedule C.
Things you use and/or purchase to enable that income. Directly or indirectly.
Many clues have been identified in previous threads.
Example, you posted the question here. Tax advice is deductible. How did you post, telepathy ?
Computer, internet.
What drives the computer, water power
Is the computer sitting outdoors?
Did the computer show up magically?
Above is just one small piece of a deduction puzzle.
Research@
Yes, that is correct. He got a full ride scholarship PLUS several others. I'm trying to work out were books included in this amount. I know they gave him vouchers to buy his books ahead of time, but I'm not certain if they were included in the 1098-T. Not sure if I can deduct the cost of his laptop or not (comp. sci. minor - math major).
Before I tell him to panic (which I don't know why he would panic, I'll be paying the tax bill) since the difference between his award's refund and the standard deduction for an individual (which I'm assuming he can take in this case) - his taxes owed would be 'not much' - correct? Or am I thinking all wrong. Also since adding him to my taxes does not result in 1$ more of a refund - am I even required to file him on them? If I'm not - I don't need to mention the 1098-T or anything on my taxes do I? (trying to simplify things here). I had a 600 dollar refund with him and a 600 dollar refund without him - so I'm seeing no advantage.
Thanks EK. I have read more about this, and I think I was misunderstanding before. I always thought if you did not make a certain amount of income from your hobby, you could not deduct expenses related to it.
But from what I'm reading, I can actually deduct expenses up to the amount I made? So I made $1500. But my comptuer and camera together cost much more than that. So I can deduct a full $1500 worth of expenses. Correct?
EagleKeeper or CPA,
I have a 1099-R form for my wife and she took out 15,100 of her 20,000 Roth IRA out to buy a house. But all of the 15,100 was contributions and and no interest was taken out and she has had this account for more than 5 years. The 1099-R has code J marked in box 7. is this a qualified distribution or do i have to check the box for the first time homebuyer?
Thanks.
EITC - do I qualify for it if my Adjusted Income is below $13,980, even though my full income (before standard deductions and adjustments) is above that limit?
It's based on Earned Income.
When did you buy the computer and camera? If not 2012, then, no, you can't deduct them on Schedule C. If you did, then by all means do it.
If it was for first-time home purchase, then you will need to fill out Form 5329 since the 1099-R did not list an exception. Part I, particularly question 2, is the important section for you. Since you said this amount did not include interest or gains, then you shouldn't need to worry about the rest of the form.
I'm using turbotax and I'm not quite sure where/what form to use for a particular income.
It was a one-time contract work and I just received a check ($500).
Thanks for your time
Thanks! So I still need to fill out Form 5329? I really dont want to use the $10K first time home buyer if it was all contributions.
I usually get a 1099-INT from a couple of banks where I have accounts, but I have not received them yet his year. Is there any reason that I wouldn't receive them this year (maybe a change in the tax laws saying the banks don't need to issue them if the total interest was less than some amount)? How long should I wait before I just go ahead and file without the forms I usually have?
My wife is receiving a free trip to Washington DC/NY in May for being on the committee, organizing the trip and chaperoning while there. The parents and the committee came to the decision to allow the 4 committee members to use 2 of the six free trips received and donate 4 of the trips back to the students. 4 Committee members are splitting 2 free trips. Therefore receiving half a free trip and paid the other half to the students accounts to help with their trip. Are the payments paid to the account to be split among the students considered a donation?
I got a 1099-C from a bank due to a foreclosure (yea, long story).
Box 5 is checked saying I am liable for the debt, but this was a purchase money loan. Loan was never refi'ed. It should be non-recourse. The lender disagrees with me and refuses to fix it.
Did I just lose thousands of bucks due to a bank error, causing me to pay taxes? Or could I still fall under the foreclosure relief act? Or since it was my primary residence and technically this is a sale and I lost money on the sale, do I still pay taxes on this "gain"?
My understanding is that you can exclude this from your income if it was your primary home and you had mortgage loan that was secured against the house.