4th Annual Tax Thread - 2006

[EagleKeeper]

Originally posted by: miri
Hi,

My wife worked at a salon and for some reason they treated her as self employed and she got a 1099 MISC.

She also worked a few trade shows and she got another 1099 MISC from that.

I am using a tax program and it wants the business name and address since it thinks we own a business. So do I put the name, address and Payer's Federal ID number of the salon she worked at or the name and address of our residence?

Also do I lump the two 1099 MISCs together when I enter them in or seperate?

Thanks for any information.

The name of the business address can just be your name. It is for paperwork only and does not actually mean anything to the IRS unless there is an audit.

If the type of work is similar, you can put all the 1099 income on the same Schedule C.

If the type of work is different (causing different types of expenses to be written off) then use multiple Schedule Cs.

Automotive expenses can be written off as well as other expenses related to the work and/or training.

Tax S/W will ask for the payees Federal ID #. that is the info that comes from the 1099 that was received.

 

[EagleKeeper]

Originally posted by: CellTech
Hi, I'm currently working out of state. I'm a NY resident but working in CT. Do I have to file both state tax returns or no? Also, do you send in your W-2 with your tax forms: federal, state?

Thanks a bunch.

As stated in the original post, we do not try to handle state tax questions.

From experience, both states will want to pick your pocket. You will have to look at the way NY handles emplyment in Conn.

If you file by paper, you need to attach your W2s to the tax forms for both Federal and state filing.

You do not send in W2s when you e-file.

 

[EagleKeeper]

Originally posted by: bookem dano
Just want to say thanks for the time you put into this thread. I've looked threw a few pages and answered a couple of my questions but I still have some.

1)I had an insurance claim where I got windows that are energy star rated, can I claim that on
my taxes? I purchased them 12/21, but they weren't installed until January, but
I only have paperwork supporting the 12/21 date.

2)Phone Credit - does it apply to cell phones, and what specifically do I need to
find for the amount? If I have no dependants, is it worth it to go through all my phone bills or just take the easy deduction?

3)If you have a roommate that is paying 'rent' that basically equals the utilities do I need to do something with that?

1) The purchase date is what counts for utilizing the energy credit.

2) The Phone credit is for those that have had a LAND LINE which would have had long distance taxes. If you have a cell phone that you pay for long distance or VOIP that you pay for long distance, then you can also claim this credit.
The tax filer has the choice to dig up old bills or just take the credit. Most take the standard credit. Base is $30 with no dependents,with an additional $10 for each dependant.

3) If you own the residence and wish to write down some expenses and depreciate the living quarters for the roommate using the Schedule E, then you should declare the income also on the Schedule E.

 

[kgokal]

I have a question about NOL's. Can I elect to carry forward a portion of my NOL to future years? I know that if i carry back, i have to do the full amount, and carry forward until enitre NOL is used up. Basically i am trying to use the NOL year after year to bring me down to the next income bracket. Yes i believe i have enough to do so, if its allowed.

And do you have a template for electing to forgo carry backs?

 

[EagleKeeper]

Originally posted by: kgokal
I have a question about NOL's. Can I elect to carry forward a portion of my NOL to future years? I know that if i carry back, i have to do the full amount, and carry forward until enitre NOL is used up. Basically i am trying to use the NOL year after year to bring me down to the next income bracket. Yes i believe i have enough to do so, if its allowed.

And do you have a template for electing to forgo carry backs?

the NOL must be credited to the full allowed amount for each year. You can not selectively choose when to apply it.

 

[kgokal]

Originally posted by: EagleKeeper

Originally posted by: kgokal
I have a question about NOL's. Can I elect to carry forward a portion of my NOL to future years? I know that if i carry back, i have to do the full amount, and carry forward until enitre NOL is used up. Basically i am trying to use the NOL year after year to bring me down to the next income bracket. Yes i believe i have enough to do so, if its allowed.

And do you have a template for electing to forgo carry backs?

the NOL must be credited to the full allowed amount for each year. You can not selectively choose when to apply it.

Great, thanks for the quick response. And one more question, do you have an example letter, which i have to include specifying in am foregoing carrying back the NOL? Or exactly what i need to say to convey that?

Thanks again.

 

[EagleKeeper]

No help here on that request

 

[miri]

edit:

Thanks again for the info and help.

 

[bookem dano]

Originally posted by: EagleKeeper

Originally posted by: bookem dano
Just want to say thanks for the time you put into this thread. I've looked threw a few pages and answered a couple of my questions but I still have some.

1)I had an insurance claim where I got windows that are energy star rated, can I claim that on
my taxes? I purchased them 12/21, but they weren't installed until January, but
I only have paperwork supporting the 12/21 date.

2)Phone Credit - does it apply to cell phones, and what specifically do I need to
find for the amount? If I have no dependants, is it worth it to go through all my phone bills or just take the easy deduction?

3)If you have a roommate that is paying 'rent' that basically equals the utilities do I need to do something with that?

1) The purchase date is what counts for utilizing the energy credit.

2) The Phone credit is for those that have had a LAND LINE.
The tax filer has the choice to dig up old bills or jsut take the credit. Most take the standard credit. Base is $30 with no dependents,with an additional $10 for each dependant.

3) If you own the residence and wish to write down some expenses and depreciate the living quarters for the roommate using the Schedule E, then you should declare the income also on the Schedule E.

Thanks. I do have a follow up on 1.

If the insurance is covering the window and I have a $500 deductible, can I claim the total cost of the windows(over $2000) or do I need to claim just 500? I realize that 2000 windows give me the max credit.

 

[EagleKeeper]

Originally posted by: bookem dano

Originally posted by: EagleKeeper

Originally posted by: bookem dano
Just want to say thanks for the time you put into this thread. I've looked threw a few pages and answered a couple of my questions but I still have some.

1)I had an insurance claim where I got windows that are energy star rated, can I claim that on
my taxes? I purchased them 12/21, but they weren't installed until January, but
I only have paperwork supporting the 12/21 date.

2)Phone Credit - does it apply to cell phones, and what specifically do I need to
find for the amount? If I have no dependants, is it worth it to go through all my phone bills or just take the easy deduction?

3)If you have a roommate that is paying 'rent' that basically equals the utilities do I need to do something with that?

1) The purchase date is what counts for utilizing the energy credit.

2) The Phone credit is for those that have had a LAND LINE.
The tax filer has the choice to dig up old bills or jsut take the credit. Most take the standard credit. Base is $30 with no dependents,with an additional $10 for each dependant.

3) If you own the residence and wish to write down some expenses and depreciate the living quarters for the roommate using the Schedule E, then you should declare the income also on the Schedule E.

Thanks. I do have a follow up on 1.

If the insurance is covering the window and I have a $500 deductible, can I claim the total cost of the windows(over $2000) or do I need to claim just 500? I realize that 2000 windows give me the max credit.

Insurance repairs should be kept seperate from the installation of the Windows.
The cost of repairs that is covered by the insurance should not be used relating to the cost basis when you sell the place though.

 

[Mo0o]

Took me about 15 minutes filling in a couple of W2s. yay. although this also implies i make next to nothing

 

[RichardE]

Originally posted by: Mo0o
Took me about 15 minutes filling in a couple of W2s. yay. although this also implies i make next to nothing

Took me 25mins as I threw on my rent and tuition :beer:

 

[alchemize]

LOL nevermind I answered all my own questions

 

[TraumaRN]

Originally posted by: RichardE

Originally posted by: Mo0o
Took me about 15 minutes filling in a couple of W2s. yay. although this also implies i make next to nothing

Took me 25mins as I threw on my rent and tuition :beer:

Took me over an hour cuz turbotax hates me and was telling me I had an error when i didnt...

That and turbotax then disappointed me....since I only get 7 dollars back from the City of Detroit taxes....damn you Kwame Crookpatrick and your Lincoln Navigators!!!

 

[Nocturnal]

Is there anyway to find out if I'll have to owe next year if I have a rough estimate of my wife and I's combined income? This year we honestly thought we weren't going to have to owe but after going through with Turbo Tax last night we owe.

 

[EagleKeeper]

Originally posted by: Nocturnal
Is there anyway to find out if I'll have to owe next year if I have a rough estimate of my wife and I's combined income? This year we honestly thought we weren't going to have to owe but after going through with Turbo Tax last night we owe.

If you owed this year and your incomes stay similar without changing one of the withholdings, then expect to also owe something the next tax year.

 

[abc]

a relative of mine outside the US got rid of land for $.

I'm going to be given about $100k USD after currency conversion.


How to I minimize my tax hit?/maximize recving 100k USD?


how the heck do i get it over here, wire, check?

 

[bolido2000]

Me and my mom have 2 CDs at a Bank. I received a 1099 from the bank stating that I got $1000 in interest. The 1099 only has my name on it even though the CD has both my mom and my name. My mom lives in a foreign country and she fills a W8 form (certificate of foreign status) that the bank sends her. My mom is neither a US citizen or US permanent resident. When doing my taxes, can I just report $500 (half the interest) as mine? The money is really my mom's. My name is on it in case there is an emergency (doubt the IRS cares)

 

[Soapy Bones]

My wife and I got married July 29 2006 in a kind of sudden marriage (las vegas style). We are both in our last year of college and basically being supported by our parents and loans still. She made a little over $4k last year and I made a little over $8k. We claim zero through our employment.
First, can our parents still claim is as dependents since for the better part of the year we were, and they are still supporting us somewhat financially.

Second, filing jointly or separately but married is probably something that cannot be determined with this basis of information, but is there an obvious way to go about doing this?

Being married do we need to actually tell our employers anything different about our situation because mine has not changed through the amount of taxes they withhold or anything. Is this wrong?

 

[abc]

Originally posted by: lather164
My wife and I got married July 29 2006 in a kind of sudden marriage (las vegas style). We are both in our last year of college and basically being supported by our parents and loans still. She made a little over $4k last year and I made a little over $8k. We claim zero through our employment.
First, can our parents still claim is as dependents since for the better part of the year we were, and they are still supporting us somewhat financially.

Second, filing jointly or separately but married is probably something that cannot be determined with this basis of information, but is there an obvious way to go about doing this?

Being married do we need to actually tell our employers anything different about our situation because mine has not changed through the amount of taxes they withhold or anything. Is this wrong?

lol what happened in Vegas shhh. Heck no i don't believe either of your respective employers actually need to know what your marital status is, only the benefits dept. if you need to adjust something (for yourselves)...

your tax situation sounds so 'just out of college' i doubt there's a benefit of filing one way or another.

yes i believe your folks can claim you long as both are still under the age limit.

 

[MustISO]

Got a question about this section:

Returns and Allowances

• Granted as discounts to customers

If we give discounts for services does that amount get entered here or is it only discounts on items purchsed by customers?

 

[AlienCraft]

I'm done.
I'm getting a lot back due in part to better record keeping.

thanks turbo tax....

 

[CupCak3]

This is actually a question on the best way to deal with my situation for this coming tax year. I have a bunch of old computers parts I had which I am selling. Can I deduct the amount I originally paid for them even if it was not in the tax year I sold them? How would this change if I bought the parts in the same tax year? I?ve already started selling my stuff but I thought I?d ask before I go too far. If needed to start a small business to best take advantage of the tax deductions, would sales I made before the ?start? of small business apply for any deductions?

Thank you very much for all your help. Your advice really helped me with my 2006 returns!

 

[EagleKeeper]

Originally posted by: bolido2000
Me and my mom have 2 CDs at a Bank. I received a 1099 from the bank stating that I got $1000 in interest. The 1099 only has my name on it even though the CD has both my mom and my name. My mom lives in a foreign country and she fills a W8 form (certificate of foreign status) that the bank sends her. My mom is neither a US citizen or US permanent resident. When doing my taxes, can I just report $500 (half the interest) as mine? The money is really my mom's. My name is on it in case there is an emergency (doubt the IRS cares)

If the CD has both your names on it; then you can claim half the interest.
Makle sure that you retain documentaiton as such for your records incase you have to justify the numbers.

 

[EagleKeeper]

Originally posted by: CupCak3
This is actually a question on the best way to deal with my situation for this coming tax year. I have a bunch of old computers parts I had which I am selling. Can I deduct the amount I originally paid for them even if it was not in the tax year I sold them? How would this change if I bought the parts in the same tax year? I?ve already started selling my stuff but I thought I?d ask before I go too far. If needed to start a small business to best take advantage of the tax deductions, would sales I made before the ?start? of small business apply for any deductions?

Thank you very much for all your help. Your advice really helped me with my 2006 returns!

If you are doing this as a hobby or "yard sale" you do not need to worry about reporting the sale and profit/loss.

If you actually intend of buying/selling parts for a profit, then you should take the fair market value of the parts when you transfer them to the business to determine the cost basis.