3rd Annual AT Tax Time Thread

[woowoo]

Originally posted by: EagleKeeper

Originally posted by: woowoo
In my state public school kindergarden is free for the half day class, you have to pay extra for full day.
Is there a way to recover the extra? ($1400).
Were would that go on federal tax form?

See the post by AnyMal just above.

This was not for after school care.
If was for kindergarden

 

[EagleKeeper]

Originally posted by: woowoo

Originally posted by: EagleKeeper

Originally posted by: woowoo
In my state public school kindergarden is free for the half day class, you have to pay extra for full day.
Is there a way to recover the extra? ($1400).
Were would that go on federal tax form?

See the post by AnyMal just above.

This was not for after school care.
If was for kindergarden

It is still classified as child care in Uncle's eyes

 

[LordSnailz]

Originally posted by: EagleKeeper

Originally posted by: LordSnailz
Hope this is the right question --
In the past I've been doing my own taxes but this past yr. I just a got a new house and I wanted to have someone do that the taxes for me, just to make sure everything is covered.

Any suggestions on the best place to go? Something general or specifc, either way would really help.
I'm from the bayarea if that helps

There is no reason why you can not use tax S/W to do the job. Paying some else $100-$300+ seems to be a waste; when you will still have to do all of the leg work anyhow.

The software wil walk you through the steps needed.
You will just have to locate the closing documents and identify the appropriate items.
Last years tax thread spelled out how to identify what is able to be deducted as closing cost items.

Thanks for the honest response. I guess I was just a little worried that I would miss some of the deductible items that comes with being a homeowner.

I'll dig that thread up, thanks.

 

[Mackie2k]

Hey all,

This year I worked Part Time (aside from my normal full time job) for a company doing their IT stuff at night. They paid me with Medical Benefits, which was $150 a month.

I never received a check, only the benefits, nor filled out a time card, etc...since the work I did was mostly remote/as needed basis.

I did file a W4 when I was hired...

Should my benefits all be paid pre-tax, so I won't be liable for any federal income tax?

Thanks,

Mackie

 

[EagleKeeper]

Originally posted by: Mackie2k
Hey all,

This year I worked Part Time (aside from my normal full time job) for a company doing their IT stuff at night. They paid me with Medical Benefits, which was $150 a month.

I never received a check, only the benefits, nor filled out a time card, etc...since the work I did was mostly remote/as needed basis.

I did file a W4 when I was hired...

Should my benefits all be paid pre-tax, so I won't be liable for any federal income tax?

Thanks,

Mackie

Everything will depend on what information is entered on the W2 that you receive.

 

[A5]

I made $7355 at my summer job this year, while also getting $7700 in scholarships, and my parents paid the rest of my college expenses. The scholarships did not cover all of my tuition costs...it's my understanding that if my parents claim me as a dependent, my taxable income includes the scholarships, and if they don't claim me, then I am only taxed for my work income...is this correct? And what kind of impact are we talking about on their deductions both ways?

 

[EvilYoda]

This is the first year I've solely performed part-time work...I did marketing work for 3-4 different companies in addition to taking out my first student loan (~$2500 for the fall '05 term).

How difficult will things be when I do my taxes and aside from the big differences, are there any nuances I should keep in mind when filing? I don't look forward to it...last year my taxes took me maybe an hour to file and 3 weeks to receive.

edit: asked a friend who did marketing work in college too...she says that she never filed her taxes b/c she never made enough, and that her employers never took it out of her paychecks...? Is this possible? It doesn't sound right, but should I be filling out my paperwork differently when starting a job?

 

[Avalon]

I looked through the thread and didn't quite see the question I was looking for, so here's mine. It's a half tax/half need opinions type question.

I've been part timing while in school for $7hr, but wanted to get a better job to help keep up with my rent. Just to get some more breathing room. To keep it short, I've got a job offer where I work for a guy sort of independantly contracted to go on calls to repair computer systems. One thing I'm worried about is that my car is old. Second is that I'm only going to make about $60 a call, and only do around several calls a week. But I don't get compensated for gas. My car does 20mpg if I'm lucky. Third is that the guy said I have to handle my own taxes. Not only am I not experienced in doing that, but my friend said that I would be paying a boatload of taxes.

This is starting to sound less and less tempting. Thoughts? How would taxes work when I'm independantly contracted like that?

 

[EagleKeeper]

Originally posted by: Avalon
I looked through the thread and didn't quite see the question I was looking for, so here's mine. It's a half tax/half need opinions type question.

I've been part timing while in school for $7hr, but wanted to get a better job to help keep up with my rent. Just to get some more breathing room. To keep it short, I've got a job offer where I work for a guy sort of independantly contracted to go on calls to repair computer systems. One thing I'm worried about is that my car is old. Second is that I'm only going to make about $60 a call, and only do around several calls a week. But I don't get compensated for gas. My car does 20mpg if I'm lucky. Third is that the guy said I have to handle my own taxes. Not only am I not experienced in doing that, but my friend said that I would be paying a boatload of taxes.

This is starting to sound less and less tempting. Thoughts? How would taxes work when I'm independantly contracted like that?

You actually can make out like a bandit :thumbsup:

The education credit (Hope or LLC) will help to remove some tax liability.

Keep track of your actual expenses with respect to the independent job.
This includes; tools, vehicle costs (fuel, repairs, gas, insurance, registration, work mileage). Initially record the current mileage.

Make a spreadsheet to track each item for the date & cost.

You will be responsible for your own taxes; however all expenses that directly are related to the work and those that are proportional indirectly related will be used to reduce the taxable income.

Tax S/W make life easy for you when you have all the above information readily available.

 

[Avalon]

Hmm...thanks for the quick answer Eaglekeeper! :thumbsup:

After discussing it with a few friends/family members, and driving around today in my car listening to it creaking and groaning, I think I've decided I'll pass on the job and see if I can find something that will keep me in town. Poor thing is ready to fall apart

 

[CPA]

Originally posted by: EvilYoda
This is the first year I've solely performed part-time work...I did marketing work for 3-4 different companies in addition to taking out my first student loan (~$2500 for the fall '05 term).

How difficult will things be when I do my taxes and aside from the big differences, are there any nuances I should keep in mind when filing? I don't look forward to it...last year my taxes took me maybe an hour to file and 3 weeks to receive.

edit: asked a friend who did marketing work in college too...she says that she never filed her taxes b/c she never made enough, and that her employers never took it out of her paychecks...? Is this possible? It doesn't sound right, but should I be filling out my paperwork differently when starting a job?

It is somewhat true. If you do not have a liability you may not have to file. Also, if you made less than $8200 (filing single) you may not have to file. In fact, there is no requirement to file if you are due a refund, but you won't get any refund due you if you don't. In you situation, if you had federal withholding, then file.

If you have paid any student loan interest, that may be an adjustment to your income.

 

[CPA]

Originally posted by: A5
I made $7355 at my summer job this year, while also getting $7700 in scholarships, and my parents paid the rest of my college expenses. The scholarships did not cover all of my tuition costs...it's my understanding that if my parents claim me as a dependent, my taxable income includes the scholarships, and if they don't claim me, then I am only taxed for my work income...is this correct? And what kind of impact are we talking about on their deductions both ways?

I'll answer the last question first - it's almost impossible to give you an impact either way because there are so many other factors in determining taxable liability. Plus, we try not to get in the area of predicting exposure in this thread.

Now, the meat of your question. If you scholarship money was used for qualified education expenses (tuition, books, fees, supplies etc.) and not paid with a condition of service (you have to work at the school or something like that), then they are not taxable. Room and Board are not qualifying education expenses and the portion of your scholarship used for such would be taxable. A School is not required to send you or the IRS a W2, but if they do, you will need to send a letter stating what your scholarship was used for and that it is nontaxable.

 

[CPA]

Originally posted by: Mackie2k
Hey all,

This year I worked Part Time (aside from my normal full time job) for a company doing their IT stuff at night. They paid me with Medical Benefits, which was $150 a month.

I never received a check, only the benefits, nor filled out a time card, etc...since the work I did was mostly remote/as needed basis.

I did file a W4 when I was hired...

Should my benefits all be paid pre-tax, so I won't be liable for any federal income tax?

Thanks,

Mackie

Generally the cost of benefits, whether self-insured (company pays claims) or premium based is not income.

 

[A5]

Originally posted by: CPA

Originally posted by: A5
I made $7355 at my summer job this year, while also getting $7700 in scholarships, and my parents paid the rest of my college expenses. The scholarships did not cover all of my tuition costs...it's my understanding that if my parents claim me as a dependent, my taxable income includes the scholarships, and if they don't claim me, then I am only taxed for my work income...is this correct? And what kind of impact are we talking about on their deductions both ways?

I'll answer the last question first - it's almost impossible to give you an impact either way because there are so many other factors in determining taxable liability. Plus, we try not to get in the area of predicting exposure in this thread.

Now, the meat of your question. If you scholarship money was used for qualified education expenses (tuition, books, fees, supplies etc.) and not paid with a condition of service (you have to work at the school or something like that), then they are not taxable. Room and Board are not qualifying education expenses and the portion of your scholarship used for such would be taxable. A School is not required to send you or the IRS a W2, but if they do, you will need to send a letter stating what your scholarship was used for and that it is nontaxable.

Thanks for the info.

 

[EvilYoda]

Thanks for the answer CPA...I imagine that I'd probably have a decent refund, so I'll still file this year...that should be fun.

For the next tax year, how should/would I go about paperwork with marketing companies so that taxes aren't deducted? A good week, I'll make $300-400 for PT work, but that's not consistent...however, I doubt I could stay under $8200 when I include the student loans paid out to me. So I guess I'm kinda SOL?

 

[EagleKeeper]

Originally posted by: EvilYoda
Thanks for the answer CPA...I imagine that I'd probably have a decent refund, so I'll still file this year...that should be fun.

For the next tax year, how should/would I go about paperwork with marketing companies so that taxes aren't deducted? A good week, I'll make $300-400 for PT work, but that's not consistent...however, I doubt I could stay under $8200 when I include the student loans paid out to me. So I guess I'm kinda SOL?

Much will depend on the companies.

If they treat you as a W2 (Employee) then they will be responsible for withholding taxes.

If they treat you as an independant (1099); then they will not grab any taxes; You will be responsible for those.
However, you can also then deduct any related expenses against such income.

 

[bamacre]

I had a job last year (2005), which I quit in May, and also was self-employed during the year. Do I need to file two returns? Or just one combined?

 

[EagleKeeper]

One return.

W2 form the employer and a Schedule C for self employment.
Remember to dig up all related expenses for the self employment.

 

[bamacre]

Originally posted by: EagleKeeper
One return.

W2 form the employer and a Schedule C for self employment.
Remember to dig up all related expenses for the self employment.

Thanks!

 

[jEnus]

I reciently got married this year and purchased a new house aswell. First, what expenses can I write off for the house? Such as sprinkler systems, bringing in top soil, sod? I also wired my house during construction (Cat5) to ever room, can I write this off? Also - What are the benifits to filing jointly? Since this is the first year that I'm married, is there any tips or write offs that I should be aware of (lol like writing off the wedding!).

Thanks again

 

[CPA]

Originally posted by: jEnus
I reciently got married this year and purchased a new house aswell. First, what expenses can I write off for the house? Such as sprinkler systems, bringing in top soil, sod? I also wired my house during construction (Cat5) to ever room, can I write this off? Also - What are the benifits to filing jointly? Since this is the first year that I'm married, is there any tips or write offs that I should be aware of (lol like writing off the wedding!).

Thanks again

You can only deduct (itemize) certain closing costs (not all closing costs are deductible). Your mortgage company should send you a 1098 showing the amount of points you paid at closing. These are deductible, but only if you itemize. None of the costs you listed are or ever will be deductible. They are only used to calculate the basis of your house when you sell it.

Generally, there are no "benefits" to filing jointly. In fact, in some unique situations it may be better to file "joint filing seperately". But this is rare. While congress has tried to straighten it out, there are still remnants of the "marriage penalty" where you pay more tax than a single person with similar income. For instance, the AMT exemption is about $32K for single. You would think married it would be double that, but in fact it's only $43K. It screw married people and is totally BS (actually the whole Alternative Minimum Tax (AMT) is BS)!

 

[gopunk]

i worked as a contractor for two companies in 2005... are they going to mail me the equivalent of a w2 or something? i'm just sort of clueless about how to figure out how much income to report... thanks!

 

[EagleKeeper]

You should get a W2 or a 1099. The 1099 will allow you to use a Schedule C and write off expenses directly against income.

 

[gopunk]

Originally posted by: EagleKeeper
You should get a W2 or a 1099. The 1099 will allow you to use a Schedule C and write off expenses directly against income.

ok thanks! are they required to send it to me by a certain date? or do i have to request it... sorry i guess these are newbie questions

 

[EagleKeeper]

Uncle states that they are to provide the forms to you by the 31 Jan.

That does not meen that you have to have them by that date.

Allow time for the mail; if you do not have them in you hands by the first week of Feb; call them and get a copy faxed to you.