If you are able to itemize, put the tuition and related expenses on the Form 2106Originally posted by: Don Rodriguez
I did a quick search and did not find anything here.
my AGI is 81900....1900 over the limit to deduct tuition expenses. I had > 7000 in tuition payments this year.
Is there any way I could get my MAGI under that 80k limit?
Would it be worth it?
If not, would I even get much back?
Can I carry this forward? I plan on eventually taking a pay cut (career change).
Thanks!
Don R.
IRS ExplanationOriginally posted by: TUKIN18S
I have recieved a 1099C form from a forgiven debt in 2008. The debt was forgiven in a Chapter 7 bankruptcy. I have been reading and reading on what I need to do. Some places say if it was discharged in a bankruptcy I do not have to pay taxes on the amount forgiven. Elsewhere I read that I have to fill out a Form 982. I'm not sure where to go with this. Can you lend any insight? thanks for your time
Chad
What if I file for bankruptcy protection?
Debts discharged through bankruptcy are not considered taxable income. If you are an individual debtor who files for bankruptcy under chapter 7 or 11 of the Bankruptcy Code, a separate ?estate? is created consisting of property that belonged to you before the filing date. This bankruptcy estate is a new taxable entity, completely separate from you as an individual taxpayer. Please note, however, that some tax debts are not dischargeable in a bankruptcy action. For more information, see Publication 908, Bankruptcy Tax Guide
Originally posted by: alkemyst
I just got off the phone with someone that was a consultant, but no longer really doing it and not filing with the Dept of Revenue anymore nor on his taxes. He is currently just a W2 employee.
He volunteered to follow up on a lead last year to see if he could help for a friend of a friend's business. The deal was supposed to be under the table and his quote reflected that, the deal seems to have turned into a nightmare.
They ended up cutting him a personal check from the business when it was supposed to be cash...he figured as long as they didn't report it as work he'd be ok (it was in his name not his business name). He installed antivirus and updated office to a newer version if it matters as far as type of work. He also set them up for an online back up service. I don't think there is anything he could offset the income from costs outside of his mileage to and from the site which was excessive...he had looked to do one trip, possibly two and ended up going back and forth at least a dozen times (the trip was about 20 miles and the only saving grace may be it happened when mileage reimbursement was at it's peak). Supposedly he came in 1/2 of what their next quote was from their 'regular' guy.
They are now wanting his W9 or Social to claim the work off their own taxes. I am not sure what his options are...can he just put he made $1200 as additional income on his 1040 or does he have to do more now (dept of revenue, etc)?
He's really aggravated with this whole deal as it was supposed to be a 12 hour job and they kept calling him back out with things that were really unrelated and even were threatening at times...they sound like nightmare customers. He said he probably had 40 hours into it.
He is sort of pressed for time to respond as they have called him '100 times' since Monday and are now leaving hysterical messages like he has fled the country or something. He just got their messages when he got back from a 3 day vacation He hasn't even unpacked yet.
sucks.
Originally posted by: DeathBUA
Originally posted by: alkemyst
Originally posted by: DeathBUA
Does anyone know if any of the 'tax refund estimator' are even close to accurate? Or more specifically is the turbotax one broken? I can change all kinds of dollar amounts around and it seems to always give my $6717 as my refund. If I use the HR Block one it gives me what I think is a fairly accurate refund, which is just over $11,000. I wanted to use the turbotax one to confirm that but like I said its broken or something. Can anyone point me to another refund estimator?
I also had one other question, I claimed single no dependant all last year but I want to file as head of household since I am. Should I change my claim status with my job after I file this year?
Thanks@
if you are single with no dependents how are you filing HOH?
The online estimators are fairly accurate, but they are only as good as you filing them out accurately since they don't error-check. How are you getting $7-11k back?
Changing status with your job is up to you...if you had too much or too little withheld is the only time I'd mess with it.
I'm filing HOH because I bought a house in October of 08. And getting so much back because of buying the house and because of the new homebuyer tax credit. It's a $7,500 tax credit(at least thats how much I qualified for). Tack on the deductions I can get for PMI, property taxes, mortgage interest, mortgage points plus charitable deductions, etc and thats how I am possibly getting so much back.
Originally posted by: EagleKeeper
Drop the income into a Schedule C
Expense it to the hilt. Direct & indirect (proportional)
He has the obligation to provide them with the required info.
Originally posted by: Shenaniganzz
Yes it was submitted. TurboTax calculated that I was due a credit of $107 for the recovery rebate. Then the IRS accepted my return but said that I have to file an amendment to pay back the $107.
What I don't understand is why the IRS is saying I have to pay back this credit. If TurboTax calculated this for me due to the recovery rebate requirements, shouldn't it be correct?
Changing the withholding status from married to single is the equivalent of a $3500 taxable income increase.Originally posted by: Doggiedog
Hi EagleKeeper,
I have a question for you on Income Tax withholding.
I got divorced last year and with my new paycheck, my marital status has changed to single.
I noticed that my tax withholding is up 50%. Is this normal? The only other change is a small pay increase of 5%. I took 0 deductions on withholding while I was married (bc I didn't want to get blindsided by owed taxes) and I continued to take 0 deductions now. I looked at my tax schedule and I was in the 25% bracket as a married person but should be in the 28% bracket now as a single person.
Can you direct me to where I can look this up? The payroll people insist that they are right but they can't provide me any proof. They tell me to look at circular e or something. I am taking home several hundred $ less after a 5% pay increase than I did before I got the increase and status change. I would think at worst, it would be a wash but I am actually down. If you need, I can supply you with the #s.
Thanks!
DD
Originally posted by: EagleKeeper
Originally posted by: cpals
Okay, different kind of question, but I did a friend's taxes online via TaxACT and we decided to do direct deposit for them. When I saw you could put the money into more than one bank account we thought that's great so the friend had me put my bank account number as a second one and put $25 for helping them do their taxes.
Afterwards I started thinking about this and went back to the form that TaxACT filled out for us and noticed that it says the bank account numbers must be in the filing person's name. My friend's return has already been filed online... is there anyway to change it to put all of the return into their account or will the IRS try and put the $25 in my account and fail and then put it all in my friend's account?
Thanks.
I have always used the split option when I do in-law taxes. There has never been a problem with funds going into the specified accounts. (Makes it great for recovering IOUs)
Originally posted by: cpals
Also, how do you claim the income for your own personal taxes? Where would that go? I'm not running any kind of business so not sure where I would account for it.
Originally posted by: alkemyst
Originally posted by: cpals
Also, how do you claim the income for your own personal taxes? Where would that go? I'm not running any kind of business so not sure where I would account for it.
Anytime you are paid you are in business, you'd use schedule C and list it as self-reported income. You pay self-employment tax, but can write off expenses. Your relatives can then claim the preparation fees.
Originally posted by: EagleKeeper
Changing the withholding status from married to single is the equivalent of a $3500 taxable income increase.Originally posted by: Doggiedog
Hi EagleKeeper,
I have a question for you on Income Tax withholding.
I got divorced last year and with my new paycheck, my marital status has changed to single.
I noticed that my tax withholding is up 50%. Is this normal? The only other change is a small pay increase of 5%. I took 0 deductions on withholding while I was married (bc I didn't want to get blindsided by owed taxes) and I continued to take 0 deductions now. I looked at my tax schedule and I was in the 25% bracket as a married person but should be in the 28% bracket now as a single person.
Can you direct me to where I can look this up? The payroll people insist that they are right but they can't provide me any proof. They tell me to look at circular e or something. I am taking home several hundred $ less after a 5% pay increase than I did before I got the increase and status change. I would think at worst, it would be a wash but I am actually down. If you need, I can supply you with the #s.
Thanks!
DD
25% of that amount is $900 extra taxes
Originally posted by: cpals
I've read that if you make less than $400/year from your 'business' then you don't have to report it... is this true? From doing my family's tax returns I'll probably end up getting $200-$300.
Also, this is just something I do for one week out of the year can I deduct anything like my computer or internet use?
http://www.finance.cch.com/text/c60s15d015.asp
Schedule SE (Form 1040), Self-Employment Tax
If your total business income, from all Schedule Cs combined and from any partnership or S corporation income that is treated as self-employment income, is $400 or more, you must file a Schedule SE and pay SECA tax on your entire net business income, including the first $400.
Originally posted by: mcurphy
I am confused about which filing status I should use between Married Joint and Married Separate.
1) Do I need to include my wifes wages and income with my return if I am married filing separate?
Originally posted by: mcurphy
2) If I do not need to include my wifes income on my return.....then I imagine I need to go through the TaxAct software again with a different username and enter her information for her return?
Originally posted by: mcurphy
3) We have 2 children and own a home. Can I itemize my return and claim all of these deductions and file hers without any deductions?
Originally posted by: mcurphy
If I enter all of my information, wages, deduction and mortgage info....it shows a nice return for me for filing seperate. But if I include my wifes wages / income, the return is reduced by quite a bit for filing jointly.
Originally posted by: mcurphy
I'm not sure why this is...or if I am doing something wrong. Of course, I have not entered her return yet as a Married Filing separately without any deductions. Am I going to run into any problems?
I'm sorry if this seems vague. I can give any info that is needed to clear this up. This is my first time filing taxes on my own, as I am sick of paying H&R Block hundreds of dollars to do it for me.
Originally posted by: FP
Simple question...
You are allowed to deduct state income tax from your federal return right?
If so, do you deduct the amount you paid in state taxes or the actual amount you owe?
For example, I paid $10,000 in state income taxes but only ended up owing $7,000.
Is my federal deduction $10,000 or $7,000?
Originally posted by: alkemyst
Originally posted by: FP
Simple question...
You are allowed to deduct state income tax from your federal return right?
If so, do you deduct the amount you paid in state taxes or the actual amount you owe?
For example, I paid $10,000 in state income taxes but only ended up owing $7,000.
Is my federal deduction $10,000 or $7,000?
$7000. Technically you haven't paid taxes until you file, it's just withholding.
Originally posted by: FP
Originally posted by: alkemyst
Originally posted by: FP
Simple question...
You are allowed to deduct state income tax from your federal return right?
If so, do you deduct the amount you paid in state taxes or the actual amount you owe?
For example, I paid $10,000 in state income taxes but only ended up owing $7,000.
Is my federal deduction $10,000 or $7,000?
$7000. Technically you haven't paid taxes until you file, it's just withholding.
Hmm... It appears TurboTax thinks otherwise. For some reason it is calculating my 2007 state refund as income in 2008 since it was paid to me in 2008.
In fact, when I look at my previous TT 1040 forms they do indeed use the "paid" amount in my Schedule A and not the "amount owed" amount.
Originally posted by: alkemyst
Originally posted by: cpals
I've read that if you make less than $400/year from your 'business' then you don't have to report it... is this true? From doing my family's tax returns I'll probably end up getting $200-$300.
Also, this is just something I do for one week out of the year can I deduct anything like my computer or internet use?
http://www.finance.cch.com/text/c60s15d015.asp
This is a common fallacy. The $400+ rule applies to doing the more in-depth Schedule C.
From that same site you linked:
Schedule SE (Form 1040), Self-Employment Tax
If your total business income, from all Schedule Cs combined and from any partnership or S corporation income that is treated as self-employment income, is $400 or more, you must file a Schedule SE and pay SECA tax on your entire net business income, including the first $400.
You can deduct business expenses even if it nets you a greater loss than any cashflow even.
Some run small businesses that are losers just to offset higher W2/1099 income and generate cash flow.
Originally posted by: cpals
That doesn't raise any red flags if I continually operate a 'business' that has a negative income flow on my tax returns every year?
Originally posted by: alkemyst
Originally posted by: cpals
That doesn't raise any red flags if I continually operate a 'business' that has a negative income flow on my tax returns every year?
outside the scope of this thread.
If you file electronically, only a final Schedule D total gets sent to the IRS.Originally posted by: TheWart
Hey all, I thought I would once again tap into AT's vast crowd wisdom, heh
If I am filling out my tax returns - the Schedule D in particular - how do I do it if I have a Schedule D-1 that is compiled by a trading program that lists all my trades/calculates wash sales, etc. It does not/not generate a Schedule D, just the D-1 continuation form. Do I need to manually fill out the boxes on the regular Schedule D and in the area where you list your trades, just write "see D-1 continuation" or something?
Thanks!
Originally posted by: mcurphy
I am confused about which filing status I should use between Married Joint and Married Separate.
1) Do I need to include my wifes wages and income with my return if I am married filing separate?
2) If I do not need to include my wifes income on my return.....then I imagine I need to go through the TaxAct software again with a different username and enter her information for her return?
3) We have 2 children and own a home. Can I itemize my return and claim all of these deductions and file hers without any deductions?
If I enter all of my information, wages, deduction and mortgage info....it shows a nice return for me for filing seperate. But if I include my wifes wages / income, the return is reduced by quite a bit for filing jointly.
I'm not sure why this is...or if I am doing something wrong. Of course, I have not entered her return yet as a Married Filing separately without any deductions. Am I going to run into any problems?
I'm sorry if this seems vague. I can give any info that is needed to clear this up. This is my first time filing taxes on my own, as I am sick of paying H&R Block hundreds of dollars to do it for me.