Tax preparation fees. The cost of hiring a tax professional, such as a C.P.A., to prepare that part of your tax return relating to your business as a sole proprietor is deductible on Schedule C or Schedule C-EZ. Any remaining cost may be deductible on Schedule A (Form 1040) if you itemize deductions.
You can also claim a business deduction for amounts paid or incurred in resolving asserted tax deficiencies for your business operated as a sole proprietor.
Also, with regard to the Cell Phone usage that you mentioned. My tax preparer last year wrote the whole thing off like you just suggested, but everywhere I look online, they say you have to deduct only the percent of your cell phone and/or internet that you use for business.
Is there a definitive source that says one way or the other?
The IRS will no longer require recordkeeping of business use of an employer-provided cell phone in order to receive this tax-free treatment as long as the phone is issued and used primarily for business reasons.
OP - Can you enlighten me a bit on donations for tax write-offs?
I donated a bit of clothes/handbags to goodwill late 2012 - Will this be as easy as listing them and getting tax dollars back, or is it only useful if you donated at least $X amount or more?
You need to use the Schedule A in order to get the benefit of charitable deductions.
After that, it is just a matter of listing the items, date and amount and charity.
You need to use the Schedule A in order to get the benefit of charitable deductions.
After that, it is just a matter of listing the items, date and amount and charity.
Can you describe in more detail? What is Schedule A precisely? Also, I've read you can basically determine the value, but what would you say is the value for typical hand bags, typical pairs of jeans, and typical shirts/dressware?
What is Alternative Minimum Tax?
I know very little about tax stuff, but I did (sort of) do my own taxes last year and this year with TurboTax. This year I got this page which I hadn't seen before. What is this?:
AMT Income Calculation
Taxable Income [number > 0]
Add Adjustments: Explain This
Personal Exemptions [number > 0]
Taxes [number > 0]
____________
Alternative Minimum Taxable Income [number > 0]
AMT
Alternative Minimum Tax [number > 0]
Subtract: Regular Tax [number < 0]
____________
AMT Amount $9,454
Ok, this seems to be the thread to ask this question.
Made some investments in 2011, sold them for a loss. I filed this on my 2011 taxes, from the 1099-B form. I received an email from etrade that I had a tax document that needed to be read. They are now showing I have an amended 1099-b for the year 2011. I made no trades at all in 2012. What do I do with this new information? I'm using Turbo Tax, btw.
Thank you.
What changed on the amended form?
How much is normal for me to pay an accountant to do our taxes? Not overly complex (two W2 incomes, some minor investment income, and we do itemize, but no business/property income or anything).
Not from like an H&R block type place, but an actual accounting firm. DC area/northern Virginia.
I'm sure there's a large range, but just trying to get an idea.
Basically I got a quote from an accountant and it seemed high to me, so I don't know if I'm just being unrealistic or what. I'll probably call some other places to see what they say, but wanted to see what people here thought too.
Ok, this seems to be the thread to ask this question.
Made some investments in 2011, sold them for a loss. I filed this on my 2011 taxes, from the 1099-B form. I received an email from etrade that I had a tax document that needed to be read. They are now showing I have an amended 1099-b for the year 2011. I made no trades at all in 2012. What do I do with this new information? I'm using Turbo Tax, btw.
Thank you.
One of the stocks I sold changed from a non-covered, to a covered security. I only purchased two stocks, one stayed the same, the other changed.
File an 1040X for the year 2011 and attached the relevant form that shows the changed information.
If you have TT software (not online), it will walk you through the process.
Otherwise, you will have to manually fill out the forms.
All forms will have to be mailed in.
First off, I would like to say Thank you for all the hard work done each and every year to bring the tax thread to life.
Secondly, I would like to confirm the info I have received regarding a TSP rollover into a Roth IRA.
To my understanding normally Roth IRA accounts are often never required to have taxes paid on them prior to withdrawal of funds (at retirement...)
But given my circumstances the fact that I rolled over a TSP (Thrift Savings Plan) into a Roth IRA account with my existing bank, because the TSP funds are pre-tax the taxes on that amount (the rolled over amount) needs to be paid at the end of the tax year. Correct?
I have been told by a financial family friend that I would need to pay the taxes by indicating the form Ill receive from the TSP in my tax paperwork for this year AND include the total amount of the roll-over in my reported annual income. Sound right?
I am not the most financially savvy individual but I would like to get a second opinion about this matter just to make sure (as I plan on filing myself this year, to save some $) , and I figured what better place to come then here with you experienced people.
Any information you could provide in reference to my questions is most appreciated. Thanks!
nobody? :/
Ok thanks. I use turbo tax online so I guess I'll have to fill it out manually. Now, can I still use turbo tax online for 2012 or will I have to do that the old fashioned way as well and mail them in together?
Each year is a separate beast
Sorry for the later response. Since you are rolling over pre-taxed money (TSP) to a post-tax savings vehicle (Roth IRA), you will need to pay tax on the rollover amount when you file in the year you made the rollover. Your family friend is correct.
Take a look at page 4 here.
See page 12-16 on IRS publication 721