If you are both working, it should not make a difference. If you are using tax S/W, then it seems to be a flaw.
If you are both working, it should not make a difference. If you are using tax S/W, then it seems to be a flaw.Originally posted by: MustISO
Originally posted by: EagleKeeper
The IRA is based on income of the taxpayer. If the spouse does not work, the spouse is allocated a set amount that can be contributed.Originally posted by: MustISO
I'm trying to figure out why the Taxpayer and Spouse "assignments" make a difference in what is deductable for IRA's. We file married, jointly.
If my wife is the taxpayer and I'm the spouse she can deduct 100% of her IRA contributions. If I'm the taxpayer and she's the spouse we can't deduct any IRA contributions. What difference does it make who is considered the spouse. It's really confusing me.
The amount of income also determines what the taxpayer can contribute.
We both work, we're both taxpayers (aren't we?)
Mileage commuting to the job site is not deductible as an employee (W2).Originally posted by: Viper22
Quick question - I worked as a 1099 contractor from 1/1/2006 - 7/21/2006. Ive already calculated out my expenses for my vehicle use etc up until that point. I am now a W2 contractor at the same location as of 07/22/2006 thru the end of the year.
The business address is not the same location i work at - Ive been told by some people in my office that I can still write off the mileage and/or expenses since the office i work at is not the same as the home office for the company.
I'm guessing this is not correct but want to make sure.
Originally posted by: amdskip
I work (computer guy part time) for a Catholic school (the church in town runs it) and I'm wondering if I qualify for this:
You earned this income for religious employment (clergy, nonclergy, religious sect).
Nonclergy religious employment is:
Religious workers and other church employees who have not been listed above as members of the clergy.
You should not receive a 1099-DIV for that amount. If that is the only dividend that you receive, you do not need to list it.Originally posted by: Macro2
I have a couple/
Do you recieve a 1099 DIV on a stock that paid $.32 in dividends in 2006? I haven't seen one. I recall a 10 dollar minimum?
What is the minimum net income on a schedule C that qualifies you for 4 quarters of social security-Medicare payments in 2006?
Or on the schedule SE? Line 4?
Thanks.
Divide all the joint deductions either 50/50 or by income percentage.Originally posted by: richardycc
if my wife and I file separately, how do we divid the mortage interest payment and taxes? do we have to do 50/50 or 100/0 or any combo in between? would it cause an audit if we divid the numbers, since the amounts won't match on the statement from the bank? thanks!
VA disability income is not taxible.Originally posted by: Fullmetal Chocobo
What difference is it going to make on my taxes now that I have disability through Veterans Affairs (VA)? I can't seem to find anything about this. I'm not sure if it matters at all.
YesOriginally posted by: Don Rodriguez
When I am doing my taxes -- do I include comission as part of my basis on stock trades?
Originally posted by: Don Rodriguez
and if it's at both just use the net amount?
for example
I buy 1 share for 100 dollars with 5 dollar commission
I sell that 1 share for 50 dollars with 5 dollar comission
Pay out 105
Bring in 45
goes in the books as a 60 dollar loss?
Originally posted by: EagleKeeper
If you are divorced, you must both file a single.Originally posted by: Rob9874
I'm recently divorced, but my ex-wife was living with me through September of last year. Do we have to file jointly? If not, how do we handle the house payment deduction?
Also, she was an independent contractor, and never paid her quarterly tax payments, so we would owe every April. Not having the money to pay it off, we would add each year's amount to our monthly payment plan with the IRS (stupid, I know...hence the divorce). So now we collectively owe like $12,000, of which the monthly payment is coming out of my bank account, and she's not contributing. Can I have the IRS split that debt for me? 50% in my SS#, and 50% in hers? Or can I file Equitable Relief, proving that the tax debt was due to her income, and get out of owing it all together?
House payment are based on the divorce decree wording.
If joint responsibility, then you can split 50/50 or by percentage of income.
You can file for injured spouse, however, because you accumulated the debt jointly prior to the divorce, you both are responsible for it; depending on the wording of the divorce decree. You both had to have signed to payment plan, apparently more than one time; so it is difficult to show that you were not aware of the problem.
You must meet all of the following conditions to qualify for "innocent spouse relief."
1)You filed a joint return, which has an understatement of tax, directly related to your spouse's erroneous items. Any income omitted from the joint return is an erroneous item. Deductions, credits, and property bases are erroneous items if they are incorrectly reported on the joint return.
2)You establish that at the time you signed the joint return you did not know, and had no reason to know, that there was an understatement of tax.
3)Taking into account all the facts and circumstances, it would be unfair to hold you liable for the understatement of tax.
4)You request relief no later than 2 years after the date the IRS first attempted to collect the tax from you.
To qualify under "relief by separation of liability" you must have filed a joint return and must meet one of the following requirements at the time you request relief:
1)You are divorced or legally separated from the spouse with whom you filed the joint return for which you are requesting relief; or
2)You are widowed; or
3)You have not been a member of the same household as the spouse with whom you filed the joint return at any time during the 12?month period ending on the date you file Form 8857 (PDF), Request for Innocent Spouse Relief.
In addition, you must request relief no later than 2 years after the date the IRS first attempted to collect the tax from you. If you have actual knowledge of the item that gave rise to the understatement of tax, you may not qualify for relief by separation of liability.
To qualify for "equitable relief" you must establish that it would be unfair to hold you liable for the tax on your joint return. Also, you must meet other requirements listed in Pub 971. You must request equitable relief no later than 2 years after the date the IRS first attempted to collect the tax from you.
Factors for Determining Whether To Grant Equitable Relief
The IRS will consider all of the facts and circumstances in order to determine whether it is unfair to hold you responsible for the understatement or underpayment of tax. The following are examples of factors that the IRS will consider to determine whether to grant equitable relief. The IRS will consider all factors and weigh them appropriately.
Relevant Factors
The following are examples of factors that may be relevant to whether the IRS will grant equitable relief.
Whether you are separated (whether legally or not) or divorced from your spouse. A temporary absence, such as an absence due to imprisonment, illness, business, vacation, military service, or education, is not considered separation for this purpose. A temporary absence is one where it is reasonable to assume that the absent spouse will return to the household, and the household or a substantially equivalent household is maintained in anticipation of the absent spouse's return.
Whether you would suffer a significant economic hardship if relief is not granted. (In other words, you would not be able to pay your reasonable basic living expenses.)
Whether you have a legal obligation under a divorce decree or agreement to pay the tax. This factor will not weigh in favor of relief if you knew or had reason to know, when entering into the divorce decree or agreement, that your former spouse would not pay the income tax liability.
Whether you received a significant benefit (beyond normal support) from the unpaid tax or item causing the understatement of tax. (For a definition of significant benefit, see Indications of Unfairness for Innocent Spouse Relief on page 5.)
Whether you have made a good faith effort to comply with federal income tax laws for the tax year for which you are requesting relief or the following years.
Whether you knew or had reason to know about the items causing the understatement or that the tax would not be paid, as explained next.
Knowledge or reason to know. In the case of an underpayment of tax, the IRS will consider whether you did not know and had no reason to know that your spouse (or former spouse) would not pay the income tax liability.
In the case of an income tax liability that arose from an understatement of tax, the IRS will consider whether you did not know and had no reason to know of the item causing the understatement. Reason to know of the item giving rise to the understatement will not be weighed more heavily than other factors. Actual knowledge of the item giving rise to the understatement, however, is a strong factor weighing against relief. This strong factor may be overcome if the factors in favor of equitable relief are particularly compelling.
Reason to know. In determining whether you had reason to know, the IRS will consider your level of education, any deceit or evasiveness of your spouse (or former spouse), your degree of involvement in the activity generating the income tax liability, your involvement in business and household financial matters, your business or financial expertise, and any lavish or unusual expenditures compared with past spending levels.
Originally posted by: akshatp
I got married in May 2006. My wife moved from MI to NJ in July. She worked in MI until April of last year, and did not work any more in 2006. She has her W2 from her former company.
I work at a company and have my W2. I also received a 1099-MISC from a client that I do work for on the side (computer work)
My only other form of income is in the form of Interest from a savings account, from which I have the income form that the bank sent.
Should I go to a place like H&R Block to do my taxes this year? To take advantage of stuff like moving credit and also because I am jointly filing for the first time?
Do I need to claim gifts received for the wedding as income?
Originally posted by: pyonir
couple questions.
I made some extra money on the side doing photography. Those amounts i made will be reported to the IRS by the people that paid me, but i didn't pay taxes on it yet. Do i just add that amount i made to my total wages? Do i need to file a seperate form? (yes it was over $600).
Second question: I found out this last fall that i owe like 2k back from 2004 (apparently i did something wrong on Turbotax). Is it hard to work it out so that any return i get goes directly to pay that off? Will the IRS automatically take my return and apply it to that amount?
Thanks to any and all that respond.
Originally posted by: EagleKeeper
2) Find out what was done incorrectly. The IRS can make mistakes also.
You can contact the IRS to arrange payments and/or they will take it from any returns once you acknowldge the debt. You will accrue interest on any back debt.