5th Annual Tax Thread - 2007

[EagleKeeper]

Originally posted by: jiggahertz
I donated ~$900 in clothing based on thrift shop value to a charity through one of those donation boxes. The tax receipt they gave me is basically a signed blank form where I list the donated clothing. I've completed form 8283 for non-cash donations with a single entry for clothing at a $900 value, purchased value of $4k. I just wanted to make sure that the tax receipt I was given and my completion of form 8283 are sufficient for this deduction.

It should suffice

 

[lokiju]

How does a bonus factor into doing taxes?

I received a $5,000 bonus in 2007 that was taxed as a bonus at 50% IIRC.

This bonus came from my employer at the time.

How should something like that get reported on my W2? Should my Net income reflect that full bonus amount and should my federal withheld amount also reflect what was taken out of the bonus in the first place?

It almost seems like for my W2 from that company, they factored into my earnings the bonus amount but didn't factor in the tax I paid on that amount for the federal tax withheld.

I could be completely wrong though since this is my first bonus like this.

So, how should a bonus that has already been taxed be factored?

 

[alkemyst]

Originally posted by: lokiju
How does a bonus factor into doing taxes?

I received a $5,000 bonus in 2007 that was taxed as a bonus at 50% IIRC.

This bonus came from my employer at the time.

How should something like that get reported on my W2? Should my Net income reflect that full bonus amount and should my federal withheld amount also reflect what was taken out of the bonus in the first place?

It almost seems like for my W2 from that company, they factored into my earnings the bonus amount but didn't factor in the tax I paid on that amount for the federal tax withheld.

I could be completely wrong though since this is my first bonus like this.

So, how should a bonus that has already been taxed be factored?

This is just normal income. You report the bonus as wages and the withholding under your withholding.

Whatever gets taken out or not does not affect what you owe/get back unless you took too little out and get a penalty.

 

[EagleKeeper]

Originally posted by: lokiju
How does a bonus factor into doing taxes?

I received a $5,000 bonus in 2007 that was taxed as a bonus at 50% IIRC.

This bonus came from my employer at the time.

How should something like that get reported on my W2? Should my Net income reflect that full bonus amount and should my federal withheld amount also reflect what was taken out of the bonus in the first place?

It almost seems like for my W2 from that company, they factored into my earnings the bonus amount but didn't factor in the tax I paid on that amount for the federal tax withheld.

I could be completely wrong though since this is my first bonus like this.

So, how should a bonus that has already been taxed be factored?

The company will add the bonus onto the W2 wages.
The amount of taxes withheld from the bonus will also be added onto the different W2 tax items.

There is nothing else to add/adjust for.

 

[Al Neri]

How do I report a student loan (direct loans) I received from the government - but is still outsanding? can i report the money I paid for tuition on my taxes still as a deduction?

 

[alkemyst]

Originally posted by: Don Rodriguez
How do I report a student loan (direct loans) I received from the government - but is still outsanding? can i report the money I paid for tuition on my taxes still as a deduction?

AFAIK you can report your school costs (first 2 years HOPE, additional as LLC). The loans you don't report unless you are paying interest.

 

[Al Neri]

additionally - with turbotax's free federal filing - it asks if i received a state/local refund last year -- looking for a 1099-G (refund statement), the only 1099-G i received was a "Statement of Tax Overpayment" of $249.00. however, according to my IT-201 from 2006 (NY taxes) Line 77 and 78 (77 is the "payments and refundable credits less amount of taxes paid and 78 is the refund line) both are $364

what is it looking for when it asks for the state/local refund? what should I put?

 

[Al Neri]

Originally posted by: alkemyst

Originally posted by: Don Rodriguez
How do I report a student loan (direct loans) I received from the government - but is still outsanding? can i report the money I paid for tuition on my taxes still as a deduction?

AFAIK you can report your school costs (first 2 years HOPE, additional as LLC). The loans you don't report unless you are paying interest.

its graduate school FWIW, MBA...

I can report my costs even though I have a federal loan for them>

 

[KK]

How important are the payers identification number on the 1099-int for the bank?
Do they change from year to year for the same bank?
What happens if they do change and you put the previous years number on this years and submit your return electronically?

 

[cKGunslinger]

OK, my wife finally got her tax info from the gym she's been teaching gymnastics at. But they didn't give her a W-2, but rather a 1099-MISC.

She thought she was a direct employee, but I guess they consider her freelance. Do we now have to fill out a Schedule-C or other forms to indicate she is self-employed?

 

[EagleKeeper]

Originally posted by: Don Rodriguez
additionally - with turbotax's free federal filing - it asks if i received a state/local refund last year -- looking for a 1099-G (refund statement), the only 1099-G i received was a "Statement of Tax Overpayment" of $249.00. however, according to my IT-201 from 2006 (NY taxes) Line 77 and 78 (77 is the "payments and refundable credits less amount of taxes paid and 78 is the refund line) both are $364

what is it looking for when it asks for the state/local refund? what should I put?

Unless you itemized in 2006, you can ignore the form.

Always use the number on the 1099-G - that is what the state reports to the Feds

 

[EagleKeeper]

Originally posted by: Don Rodriguez

Originally posted by: alkemyst

Originally posted by: Don Rodriguez
How do I report a student loan (direct loans) I received from the government - but is still outsanding? can i report the money I paid for tuition on my taxes still as a deduction?

AFAIK you can report your school costs (first 2 years HOPE, additional as LLC). The loans you don't report unless you are paying interest.

its graduate school FWIW, MBA...

I can report my costs even though I have a federal loan for them>

Yes - a loan must be paid back.

A grant does not get paid back and therefore either is reported as income or the expenses that the grant is for can not be deducted.

 

[EagleKeeper]

Originally posted by: KK
How important are the payers identification number on the 1099-int for the bank?
Do they change from year to year for the same bank?
What happens if they do change and you put the previous years number on this years and submit your return electronically?

The number is equivalent to the business SS#.

You number has not changed and will not change (unless you enter the Federal Witness program, become a spook, etc). Their number will not change.

 

[EagleKeeper]

Originally posted by: cKGunslinger
OK, my wife finally got her tax info from the gym she's been teaching gymnastics at. But they didn't give her a W-2, but rather a 1099-MISC.

She thought she was a direct employee, but I guess they consider her freelance. Do we now have to fill out a Schedule-C or other forms to indicate she is self-employed?

Use the Schedule C and start writing off expenses against the income.:thumbsup:
Ideas are buried within this thread and previous threads.

Remember, that she probably had no taxes taken out from the income initially.

 

[lokiju]

Originally posted by: EagleKeeper

Originally posted by: lokiju
How does a bonus factor into doing taxes?

I received a $5,000 bonus in 2007 that was taxed as a bonus at 50% IIRC.

This bonus came from my employer at the time.

How should something like that get reported on my W2? Should my Net income reflect that full bonus amount and should my federal withheld amount also reflect what was taken out of the bonus in the first place?

It almost seems like for my W2 from that company, they factored into my earnings the bonus amount but didn't factor in the tax I paid on that amount for the federal tax withheld.

I could be completely wrong though since this is my first bonus like this.

So, how should a bonus that has already been taxed be factored?

The company will add the bonus onto the W2 wages.
The amount of taxes withheld from the bonus will also be added onto the different W2 tax items.

There is nothing else to add/adjust for.

PM sent.

 

[Al Neri]

Originally posted by: EagleKeeper

Originally posted by: Don Rodriguez
additionally - with turbotax's free federal filing - it asks if i received a state/local refund last year -- looking for a 1099-G (refund statement), the only 1099-G i received was a "Statement of Tax Overpayment" of $249.00. however, according to my IT-201 from 2006 (NY taxes) Line 77 and 78 (77 is the "payments and refundable credits less amount of taxes paid and 78 is the refund line) both are $364

what is it looking for when it asks for the state/local refund? what should I put?

Unless you itemized in 2006, you can ignore the form.

Always use the number on the 1099-G - that is what the state reports to the Feds

Ok great - so USE the 249 and ignore the 364?

You are the MAN!!!

 

[jiggahertz]

Originally posted by: EagleKeeper

Originally posted by: jiggahertz
On my 2006 state (MA) return I originally received a return of $50 when I filed. In early 2007, I paid ~$200 towards my state taxes/penalties/interest for undeclared income in 2006. My question is, for 2007 can I write off the $200-$50 paid for state taxes? I assume I cannot deduct the penalties/interest that were included in the $200 payment and need to find the exact amount that actually went towards income tax? Is this true?

For the Federal, if you itemize this year, you can write off the extra MA taxes that you paid in 2007. You can not write off the interest and penalties.

What ever paperwork that the state sent you for the repayment should have a breakdown.

I am itemizing my taxes this year. I realized that my payment was actually for an underpayment from 2003 not 2006, but to my understanding I can still deduct this portion since it is a prior year?

 

[EagleKeeper]

Originally posted by: Don Rodriguez

Originally posted by: EagleKeeper

Originally posted by: Don Rodriguez
additionally - with turbotax's free federal filing - it asks if i received a state/local refund last year -- looking for a 1099-G (refund statement), the only 1099-G i received was a "Statement of Tax Overpayment" of $249.00. however, according to my IT-201 from 2006 (NY taxes) Line 77 and 78 (77 is the "payments and refundable credits less amount of taxes paid and 78 is the refund line) both are $364

what is it looking for when it asks for the state/local refund? what should I put?

Unless you itemized in 2006, you can ignore the form.

Always use the number on the 1099-G - that is what the state reports to the Feds

Ok great - so USE the 249 and ignore the 364?

You are the MAN!!!

You are welcome to send the difference to AnandtechModerator@paypal.com

I have heard rumors that their beer fund is getting low.

 

[EagleKeeper]

Originally posted by: jiggahertz

Originally posted by: EagleKeeper

Originally posted by: jiggahertz
On my 2006 state (MA) return I originally received a return of $50 when I filed. In early 2007, I paid ~$200 towards my state taxes/penalties/interest for undeclared income in 2006. My question is, for 2007 can I write off the $200-$50 paid for state taxes? I assume I cannot deduct the penalties/interest that were included in the $200 payment and need to find the exact amount that actually went towards income tax? Is this true?

For the Federal, if you itemize this year, you can write off the extra MA taxes that you paid in 2007. You can not write off the interest and penalties.

What ever paperwork that the state sent you for the repayment should have a breakdown.

I am itemizing my taxes this year. I realized that my payment was actually for an underpayment from 2003 not 2006, but to my understanding I can still deduct this portion since it is a prior year?

You are correct. Payment of state/local taxes is deductible from the Federal on the Schedule A for the year they were paid (not necessarily the year that they are being paid for)

 

[cKGunslinger]

Originally posted by: EagleKeeper

Originally posted by: cKGunslinger
OK, my wife finally got her tax info from the gym she's been teaching gymnastics at. But they didn't give her a W-2, but rather a 1099-MISC.

She thought she was a direct employee, but I guess they consider her freelance. Do we now have to fill out a Schedule-C or other forms to indicate she is self-employed?

Use the Schedule C and start writing off expenses against the income.:thumbsup:
Ideas are buried within this thread and previous threads.

Remember, that she probably had no taxes taken out from the income initially.

Sounds good, and yes, she has had no taxes taken out (she only made ~$2300.) TurboTax Online said that her estimated self-employment taxes are ~$330.

I guess my major concern was that there wasn't anything else to fill out, now that she's "self-employed." I've got my W2, her 1099-MISC, a Schedule-C, then itemized deductions (mortgage, student loan interest, etc.) I'll start researching any other deductions for her "business expenses," and that should be it for the year?

I thought being self-employed required filing tons of paperwork, not a single Sch-C.

 

[Mayfriday0529]

Here is my questions and concerns, I?m all confused.

2007 was my last year in college. I always take the lifetime learning credit. I spent about $8000 on 2007. But I now see this new Tuition and Fees Deduction ?What is the tax benefit of the tuition and fees deduction . The tuition and fees deduction can reduce the amount of your income subject to tax by up to $4,000.?

Should I stick to the lifetime learning credit or try the tuition and fees deduction?

My other question is about itemized. I?m single and made only $30g?s. I don?t know if I should do standard deduction or itemized. I spent $5550 on Dental expenses this year. Thats my only expense that I could itemized, nothing else.

 

[ballmode]

I filed my taxes! YIPPIE!


www.taxactonline.com NEVER LOSES

 

[Al Neri]

I had a stock purchase plan from an old job through the broker Computershare which basically bought QQQQ's with post-tax salary. after i left the job for convenience i kept the money there and it kept reinvesting dividends. For some reason my former employer liquidated my account earlier this year (i think they shut the plan down or something). So apparently I sold a wopping 3.952377 shares of QQQQ at 48.49 (was a nice small check for a weekend out a few months ago).

OK - Now - the majority of these shares were purchased before August 1, 2006 (there were a string of dividend reinvestments all along - the most recent one was on may 1, 2007 -- in fact via dividend reinvestment I have purchased .41 shares between november 2006 and when my shares were liquidated (9/14/07) ... and I hadnt made a non-dividend purchase in a while (i left that job in March of 2006).

How do i file this ? do i do the .41 as a short term gain and enter each transaction in (3 for the short term, the rest for the long term) and determine my basis?

Computer share doesnt have a cost basis on their tax forms and i dont see them anywhere else.


THANKS!

When i file this - do i file the .41 shares as a short term basis and the rest on a long term basis? how do i figure out my cost basis - there are a ton of allocations and dividend reinvestments (well, about 30)

 

[FoBoT]

i got my last paperwork today from my broker

my wife went back to college last year, so we have a form from the college to get the education credit

if we are claiming the education credit, will we have to wait for Feb. 11 to E-File? I read that the form for education credit was affected by Congress failure to act on the ATM legislation

thank you

 

[EagleKeeper]

Originally posted by: cKGunslinger

Originally posted by: EagleKeeper

Originally posted by: cKGunslinger
OK, my wife finally got her tax info from the gym she's been teaching gymnastics at. But they didn't give her a W-2, but rather a 1099-MISC.

She thought she was a direct employee, but I guess they consider her freelance. Do we now have to fill out a Schedule-C or other forms to indicate she is self-employed?

Use the Schedule C and start writing off expenses against the income.:thumbsup:
Ideas are buried within this thread and previous threads.

Remember, that she probably had no taxes taken out from the income initially.

Sounds good, and yes, she has had no taxes taken out (she only made ~$2300.) TurboTax Online said that her estimated self-employment taxes are ~$330.

I guess my major concern was that there wasn't anything else to fill out, now that she's "self-employed." I've got my W2, her 1099-MISC, a Schedule-C, then itemized deductions (mortgage, student loan interest, etc.) I'll start researching any other deductions for her "business expenses," and that should be it for the year?

I thought being self-employed required filing tons of paperwork, not a single Sch-C.

Much depends on the type of business. Simple, take care of only yourself is not much. headache as long as you kept records. It is when your business starts to have employees, inventory, etc that the experts come into play.