3rd Annual AT Tax Time Thread

[msi1337]

Question:

I have one single W2 from one employer.. I made about $25k taxable and according to the 2005 tax tables I have about $3,300 worth of tax that I will owe. So far the company I work for has taken out roughly $3,000... I have claimed 0 all year and am wondering if I will probably owe the IRS? I went to school part time one quarter, and am 27 years old...any general deductions I should be able to claim? I am sorry to be so vague.. I am by no means a tax expert...my friend TurboTax usually helps me with them.

 

[EagleKeeper]

Any S/W should be able to walk you easily through your situation.

By claiming 0 on your W4 for all year should have relieved you of any tax obligations when filing.

As to why your employer has withheld less than estimated, you would have to discuss that with your payroll department once you get the final numbers cranked out.

 

[lein]

Hopefully I can make my parents lives a little easier with these questions:

I am a college student and have received a lot of scholarships. It covers almost all of my tution and housing. So far, I think I do not have to pay taxes on the scholarship that paid for the tution, but I do have to pay taxes on the rest (housing, meal plan, etc.). Am I correct?

I live in Texas, but go to school in MO. There is no state tax in TX, but there is state tax in MO. Since my official residence is in TX, am I correct in saying that I do not have to file state returns in MO?

I am 18. Do I have to file my own returns, or can I still be claimed as a dependent under my parents?

Also, any other insight/tips you have for a college student would be greatly appreciated.

Thanks a lot

 

[LukFilm]

Have a Russian au-pair in the house solely for the reason so I can do business (self-employed) and don't have to watch my son. Is her weekly pay tax deductible?

 

[EagleKeeper]

Originally posted by: lein
Hopefully I can make my parents lives a little easier with these questions:

I am a college student and have received a lot of scholarships. It covers almost all of my tution and housing. So far, I think I do not have to pay taxes on the scholarship that paid for the tution, but I do have to pay taxes on the rest (housing, meal plan, etc.). Am I correct?

I live in Texas, but go to school in MO. There is no state tax in TX, but there is state tax in MO. Since my official residence is in TX, am I correct in saying that I do not have to file state returns in MO?

I am 18. Do I have to file my own returns, or can I still be claimed as a dependent under my parents?

Also, any other insight/tips you have for a college student would be greatly appreciated.

Thanks a lot

No income - no Filing.
If you have income for working in MO; then you have to file tax returns for MO.
File as a dependent if needed.

Dependent status for you on your parents return.

 

[Carrot44]

Very big oops.......... I sorta kinda forgot to file my 2004 taxes Actually did forget. Just put it off and put it off till I forgot about it.

Anyway how do I file it now? Do owe them 66 bucks and I am sure there will be some interest and what not. Can I just file it or can I file it with my 2005 return somehow?

Signed
Jail Bird to be

Ken

 

[SarcasticDwarf]

I am in the Army (yeah!) and was injured (sh!t). They *ahem* neglected to pay me for the last four months and are just now doing so. They have also issued my W2. I have not yet been paid for September or December, but will be in January and February. My W2 does not include these two months. Do I need to worry about them, or do they just stay on my 2006 taxes?

 

[The Wildcard]

If I want to deduct my donations to various charities this year (with reciepts for proof), will I need to itemize my deductions? Donations would total to about $100-150

Which federal and state (california) form should I use if I wanted to deduct those donations?

 

[amish]

Originally posted by: Carrot44
Very big oops.......... I sorta kinda forgot to file my 2004 taxes Actually did forget. Just put it off and put it off till I forgot about it.

Anyway how do I file it now? Do owe them 66 bucks and I am sure there will be some interest and what not. Can I just file it or can I file it with my 2005 return somehow?

Signed
Jail Bird to be

Ken

I would file it ASAP. the longer you wait with a balance due the more penalties and interest are going to pile up. I'm guessing that you don't have any extensions, therefore your penalty will be the smaller of $100 or 100% of the total tax due.

interest is a different story. interest is charged on any unpaid tax from the due date of the return until the date of payment. The interest rate is determined every three months and is the federal short?term rate plus 3 percent. Interest is compounded daily.

hope this helps.

 

[CPA]

Originally posted by: Carrot44
Very big oops.......... I sorta kinda forgot to file my 2004 taxes Actually did forget. Just put it off and put it off till I forgot about it.

Anyway how do I file it now? Do owe them 66 bucks and I am sure there will be some interest and what not. Can I just file it or can I file it with my 2005 return somehow?

Signed
Jail Bird to be

Ken

Go to the IRS website and print up the 2004 1040, prepare it and send it in. Here is a copy you can print and use. You will need to calculate your penalty on line 48. Search Google for 1040 Instructions. IRS may send you a statement for interest also - which can be as high as 25%.

edite: oops, Amish beat me to it.

 

[CPA]

Originally posted by: SarcasticDwarf
I am in the Army (yeah!) and was injured (sh!t). They *ahem* neglected to pay me for the last four months and are just now doing so. They have also issued my W2. I have not yet been paid for September or December, but will be in January and February. My W2 does not include these two months. Do I need to worry about them, or do they just stay on my 2006 taxes?

IRS considers individuals cash (as opposed to accrual) based filers. This means you file for what you received and paid in that year. They wages you receive in January are 2006 wages, no matter what year they relate to.

 

[EagleKeeper]

Originally posted by: The_Wildcard
If I want to deduct my donations to various charities this year (with reciepts for proof), will I need to itemize my deductions? Donations would total to about $100-150

Which federal and state (california) form should I use if I wanted to deduct those donations?

Federal will require itemization using Schedule A.
As stated previously, there is talk in Congress about allowing charitable without itemization, however, it is talk only.

There is a form identified on the Schedule A for charitable deductions.

 

[amish]

Originally posted by: SarcasticDwarf
I am in the Army (yeah!) and was injured (sh!t). They *ahem* neglected to pay me for the last four months and are just now doing so. They have also issued my W2. I have not yet been paid for September or December, but will be in January and February. My W2 does not include these two months. Do I need to worry about them, or do they just stay on my 2006 taxes?

sucks to hear that you were injured. question, was it due to being in a combat zone?

you have the ability to exclude income that you received while being in a combat zone. officers have a limitation on how much can be excluded but enlisted men do not. IRS publication

as for your wages that were not paid until january this is mainly a payroll issue. i would assume that since you did not receive the compensation until january the amounts will be included on your 2006 w-2. i'd contact someone to make sure. fort benjamin harrison is a good place to start since that is where your checks probably come from.

 

[CPA]

Originally posted by: The_Wildcard
If I want to deduct my donations to various charities this year (with reciepts for proof), will I need to itemize my deductions? Donations would total to about $100-150

Which federal and state (california) form should I use if I wanted to deduct those donations?

Yes, you must itemize. Unfortunately Congress still has not changed how charitable contributions are deducted. I guess they assume only homeowners give to charities.

Schedule A for Fed. I can't help you on the state (see OP).

 

[Chaotic42]

Does anyone know if my gasoline expenses for travel to college are deductable? Would Turbo Tax do that kind of stuff for me, or do I need to go to an accountant?

Also, does anyone know when the tax breaks Katrina victims will be settled?

 

[CPA]

Originally posted by: LukFilm
Have a Russian au-pair in the house solely for the reason so I can do business (self-employed) and don't have to watch my son. Is her weekly pay tax deductible?

This is not generally considered a business expense. Let's put it this way, if you took your kids to daycare, you would not write that off as a business expense.

That said, if you are expecting her to claim her wages (file), then you could use the Child Care Credit. Make sure she is filing though, otherwise you can get her into trouble, because you have to report her SSN number (or taxpayer ID number) on form 2441.

Now, here is the really bad part: because she is performing the service in your home and I assume you did not hire her through and agency, you are technically required to file a schedule H and will owe Social Security taxes on the wages you paid her. The reason is the IRS considers you her employer and her an employee. In fact, you are required to get and EIN and file quarterly 941s (Federal Withholding Tax) and annual 940 (Fed Unemployment Tax).

 

[CPA]

Originally posted by: Chaotic42
Does anyone know if my gasoline expenses for travel to college are deductable? Would Turbo Tax do that kind of stuff for me, or do I need to go to an accountant?

Also, does anyone know when the tax breaks Katrina victims will be settled?

Off the IRS website:

Qualified education expenses do not include amounts paid for:

*

Insurance,
*

Medical expenses (including student health fees),
*

Room and board,
*

Transportation, or
*

Similar personal, living, or family expenses.

This is true even if the amount must be paid to the institution as a condition of enrollment or attendance.

Not sure about Katrina.

 

[SarcasticDwarf]

It was not in combat, it was during training here in the US. I've contacted the finance department to verify that it is set up correctly, who knows when they will respond though.

Originally posted by: amish

Originally posted by: SarcasticDwarf
I am in the Army (yeah!) and was injured (sh!t). They *ahem* neglected to pay me for the last four months and are just now doing so. They have also issued my W2. I have not yet been paid for September or December, but will be in January and February. My W2 does not include these two months. Do I need to worry about them, or do they just stay on my 2006 taxes?

sucks to hear that you were injured. question, was it due to being in a combat zone?

you have the ability to exclude income that you received while being in a combat zone. officers have a limitation on how much can be excluded but enlisted men do not. IRS publication

as for your wages that were not paid until january this is mainly a payroll issue. i would assume that since you did not receive the compensation until january the amounts will be included on your 2006 w-2. i'd contact someone to make sure. fort benjamin harrison is a good place to start since that is where your checks probably come from.

 

[Carrot44]

Originally posted by: CPA

Originally posted by: Carrot44
Very big oops.......... I sorta kinda forgot to file my 2004 taxes Actually did forget. Just put it off and put it off till I forgot about it.

Anyway how do I file it now? Do owe them 66 bucks and I am sure there will be some interest and what not. Can I just file it or can I file it with my 2005 return somehow?

Signed
Jail Bird to be

Ken

Go to the IRS website and print up the 2004 1040, prepare it and send it in. Here is a copy you can print and use. You will need to calculate your penalty on line 48. Search Google for 1040 Instructions. IRS may send you a statement for interest also - which can be as high as 25%.

edite: oops, Amish beat me to it.

Allready have the forms completed. For the life and death of me I can not figure out that penalty form. Should I just send the forms off and let the IRS send me a bill?

Ken

 

[Trey22]

Originally posted by: The_Wildcard
If I want to deduct my donations to various charities this year (with reciepts for proof), will I need to itemize my deductions? Donations would total to about $100-150

Which federal and state (california) form should I use if I wanted to deduct those donations?

Similar question (gave donations, live in CA)... I've given approximately $2400 to church this year, and only have the cancelled checks (no receipts).

Is it an either/or situation when it comes to itemizing deductions vs taking the standard deduction?

 

[wasamicron]

I sold my home in Sept. '05. At closing, I had to pay the property taxes for Jan.-Sept. I just rec'd my Form 1098 in the mail from mortgage co. which reflects only property taxes paid in '04. Can I claim the taxes paid in '05 on this years return?

 

[EagleKeeper]

Originally posted by: Carrot44

Originally posted by: CPA

Originally posted by: Carrot44
Very big oops.......... I sorta kinda forgot to file my 2004 taxes Actually did forget. Just put it off and put it off till I forgot about it.

Anyway how do I file it now? Do owe them 66 bucks and I am sure there will be some interest and what not. Can I just file it or can I file it with my 2005 return somehow?

Signed
Jail Bird to be

Ken

Go to the IRS website and print up the 2004 1040, prepare it and send it in. Here is a copy you can print and use. You will need to calculate your penalty on line 48. Search Google for 1040 Instructions. IRS may send you a statement for interest also - which can be as high as 25%.

edite: oops, Amish beat me to it.

Allready have the forms completed. For the life and death of me I can not figure out that penalty form. Should I just send the forms off and let the IRS send me a bill?

Ken

Mail the 2005 tax forms seperately from the 2004.
With the 2004 forms, enclose a check for the tax owed. Uncle will then send you a bill for the additional procrastination damages. Pay that bill and receive a "Get out of Jail Free" card.

 

[EagleKeeper]

Originally posted by: wasamicron
I sold my home in Sept. '05. At closing, I had to pay the property taxes for Jan.-Sept. I just rec'd my Form 1098 in the mail from mortgage co. which reflects only property taxes paid in '04. Can I claim the taxes paid in '05 on this years return?

Yes

 

[imported_Doghouse]

Childcare expenses. Our child care expense have gone through the roof with a second child. Our childcare expenses are now 20 to 25% of our gross income. Besides the normal child deduction and the pre-tax $5000 max per year/family cafeteria plan are there any other deductions when it becomes this high?

 

[Al Neri]

Where's the best spot where I can learn how to set up a LLC, SCorp or any other type of corporation? There is only 1 share in the company (myself) with the possibility of adding no more than 4 people in the long run.