4th Annual Tax Thread - 2006

[MrsBugi]

If I didn't itemize anything, do I still need to report my 2005 federal and/or state refunds?

 

[EagleKeeper]

Originally posted by: MrsBugi
If I didn't itemize anything, do I still need to report my 2005 federal and/or state refunds?

Question was answered on 3/16

 

[MrsBugi]

Originally posted by: EagleKeeper

Originally posted by: MrsBugi
If I didn't itemize anything, do I still need to report my 2005 federal and/or state refunds?

Question was answered on 3/16

Found it: "If you did not use the state income taxes withheld on the Schedule A or did not use the Schedule A last year, you do not need to worry about the state income tax refund."

Looks like I won't need to worry about rporting my state income tax refund, thanks Eagle.

Do I need to report my federal tax refund from last year?

 

[EagleKeeper]

Federal refunds are not taxable income - tax has already been padi on it.

 

[bolido2000]

My friend has the following question; she files as single and she makes around $45K (no dependents, not head of household). She usually doesn't itemize anything. Just gets a W2 and takes the standard deduction. She gave her mom around $5K last year as a gift/allowance. Is there a way for her to deduct or take advantage of the situation taxwise?

thanks

 

[EagleKeeper]

Originally posted by: bolido2000
My friend has the following question; she files as single and she makes around $45K (no dependents, not head of household). She usually doesn't itemize anything. Just gets a W2 and takes the standard deduction. She gave her mom around $5K last year as a gift/allowance. Is there a way for her to deduct or take advantage of the situation taxwise?

thanks

No

 

[bolido2000]

Originally posted by: EagleKeeper

Originally posted by: bolido2000
My friend has the following question; she files as single and she makes around $45K (no dependents, not head of household). She usually doesn't itemize anything. Just gets a W2 and takes the standard deduction. She gave her mom around $5K last year as a gift/allowance. Is there a way for her to deduct or take advantage of the situation taxwise?

thanks

No

I see. Is there any change she could do for next year's tax filing? Maybe file it as a 1099-Misc (her mom cleans the house and cooks)? Or as a gift?

 

[EagleKeeper]

The only way would be if the mother was classified as a dependant.

That would allow her to claim head of household status.

Being the the daughter is on W2 for income, then expenses are not deductible unless they can go on the 1040 Sechedule A.

 

[Nithin]

hi,
My w2 has my status as single. I got married Dec 14, 2006. I filed a new w4 couple weeks back.

Do I need to get a new w2 or can I still file as married?

Thanks,
Nithin.

 

[EagleKeeper]

Originally posted by: Nithin
hi,
My w2 has my status as single. I got married Dec 14, 2006. I filed a new w4 couple weeks back.

Do I need to get a new w2 or can I still file as married?

Thanks,
Nithin.

You can file as married

 

[AdamK47]

I filed my taxes online today. In the occupation field for my wife I entered "Pro WoW Player". What do they do with this information and is it important?

 

[EagleKeeper]

Originally posted by: AdamK47
I filed my taxes online today. In the occupation field for my wife I entered "Pro WoW Player". What do they do with this information and is it important?

The information is used for statistical comparisons vs income declared.
Key words in the declaration can be used to flag income level (excessively high or low) for a review.

 

[CPA]

Originally posted by: bolido2000

Originally posted by: EagleKeeper

Originally posted by: bolido2000
My friend has the following question; she files as single and she makes around $45K (no dependents, not head of household). She usually doesn't itemize anything. Just gets a W2 and takes the standard deduction. She gave her mom around $5K last year as a gift/allowance. Is there a way for her to deduct or take advantage of the situation taxwise?

thanks

No

I see. Is there any change she could do for next year's tax filing? Maybe file it as a 1099-Misc (her mom cleans the house and cooks)? Or as a gift?

In addition to Eagles answer, keep in mind Gifts are NEVER deductible. On the contrary, they can be taxable to the giver (not the recipient).

And you can't give her a 1099-Misc unless this is business related expenses.

 

[Trey22]

I'm confused with the 83(b) election.

I just signed a restricted stock agreement (fully vested), and was told that I would need to file within 30 days from the exercise date (March 1st).

Thanks in advance.

 

[EagleKeeper]

Originally posted by: Trey22
I'm confused with the 83(b) election.

I just signed a restricted stock agreement (fully vested), and was told that I would need to file within 30 days from the exercise date (March 1st).

Thanks in advance.

Please check with the IRS. This question is beyond our knowledge at this time.

 

[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.

 

[Qacer]

Damn, I was so lazy I decided to let H&R block do my taxes. Tsk. $130 out of my pocket. Next year I'll do it on my own. Anyway, here's a tax video for you taxpayers: http://www.youtube.com/watch?v=yNxZd11aFDQ

 

[Mayfriday0529]

I already did my Taxes, but this question would be for next year. Are medical/dentist bills tax deductible at all? I just spent 3500 out of pocket on Dental.

 

[EagleKeeper]

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 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.
The amount of income also determines what the taxpayer can contribute.

 

[EagleKeeper]

Originally posted by: Jnetty99
I already did my Taxes, but this question would be for next year. Are medical/dentist bills tax deductible at all? I just spent 3500 out of pocket on Dental.

Those expenses plus insurance costs are deductible to the extent that they exceed 7.5% of your AGI. The excess then can be used on the Schedule A.

 

[Mayfriday0529]

Originally posted by: EagleKeeper

Originally posted by: Jnetty99
I already did my Taxes, but this question would be for next year. Are medical/dentist bills tax deductible at all? I just spent 3500 out of pocket on Dental.

Those expenses plus insurance costs are deductible to the extent that they exceed 7.5% of your AGI. The excess then can be used on the Schedule A.

I make about 30g a year but my true AGI this past year was like 28,000, so $3500 is almost 11%

 

[chipy]

quick question:

when sending in tax returns, can you use a regular envelope (in effect, folding the returns) or do you have to use one of those big ones where you don't fold the forms?

thanx- chipy

 

[MustISO]

Originally posted by: EagleKeeper

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 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.
The amount of income also determines what the taxpayer can contribute.

We both work, we're both taxpayers (aren't we?)

 

[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.

 

[EagleKeeper]

Originally posted by: chipy
quick question:

when sending in tax returns, can you use a regular envelope (in effect, folding the returns) or do you have to use one of those big ones where you don't fold the forms?

thanx- chipy

It does not make a difference.

The larger envelopes (8x11) are better if you have more than 4-5 sheets to mail in.