Originally posted by: ShotgunSteven
Quick question. If I signed up for 2009 classes in 2008, was billed for them in 2008 but didn't pay them until 2009, should it be on my 2008 1098-T?
Originally posted by: Geekbabe
Ok Eaglekeeper, CPA and all the rest of you tax guys, how on earth do you stand doing this crap for a living? My eyes feel like they're bleeding from all the reading and I had a massive headache trying to understand the rules, regs and seemingly endless twisted maze that is our tax code.
I would so love it if the tax code was simple and straight forward,then I could just focus my energy on producing income instead of having to twist my brain around this stuff. I've vowed that I'm going to seek out a good CPA to handle my tax issues from this year onward.
My hats off to all of you guys, your jobs are complex, I'd run screaming into the streets if anybody told me I had to do taxes for a living
Originally posted by: CPA
Originally posted by: dquan97
Originally posted by: CPA
Originally posted by: dquan97
A friend got a W2 that reported only wages earned...no ss, medicare, income taxes withheld. State portion showed income tax withheld. His employer wasn't withholding FICA from monthly checks. I called their HR office to find out if this was an error and they cited the usage of Section 530 of the tax code.
Link to Section 530: http://ftp.irs.gov/pub/irs-pdf/p1976.pdf
How do I report that income? As a wage? Sch. C? Wouldn't he have to pay his 1/2 share of FICA? How?
Schedule C. He will have to pay the full share of FICA, but he also can deduct expenses from it. He should have received a 1099, not a W2. If the company gave him a W2, well then they screwed up.
III. Reporting Consistency
Finally, you must have filed all required federal tax returns (including information returns) consistent with your treatment of each worker as not being employees. This means,for example, that if you treated a worker as an independent contractor and paid him or her $600 or more, you must have filed Form 1099-MISC for the worker. Relief is not available for any year and for any workers for whom you did not file the required information returns.
I agree with what you said. I even talked to their HR and told them that they messed up, but they wouldn't correct it. Report the wage as "other income" under line 6 of sch C?
If they won't correct it, I would file an extension, then contact the IRS and explain to them what is going on and see how they say you should handle it.
Originally posted by: paperfist
Originally posted by: Ns1
Hey EK-
Got a question about this page
http://www.irs.gov/taxtopics/tc202.html
Wtf does this mean, exactly?
If you cannot pay in full immediately, the IRS offers a short additional time to full pay, up to 120 days.
So if you can't pay in full on 4/15, whenever you get the money, do you just send them another check or...?
I filed form 9465 "Installment Agreement Request". It allows you to make payments to the IRS if you can't pay the balance in full in 120 days.
You enter in the amount you are able to pay with your tax return and then fill out another line which states how much you can pay each month along with the date each month you can pay by.
Originally posted by: Lothar
Originally posted by: paperfist
Originally posted by: Ns1
Hey EK-
Got a question about this page
http://www.irs.gov/taxtopics/tc202.html
Wtf does this mean, exactly?
If you cannot pay in full immediately, the IRS offers a short additional time to full pay, up to 120 days.
So if you can't pay in full on 4/15, whenever you get the money, do you just send them another check or...?
I filed form 9465 "Installment Agreement Request". It allows you to make payments to the IRS if you can't pay the balance in full in 120 days.
You enter in the amount you are able to pay with your tax return and then fill out another line which states how much you can pay each month along with the date each month you can pay by.
Are there any extra interest payments and/or penalties involved with that?
Originally posted by: dquan97
Originally posted by: CPA
Originally posted by: dquan97
Originally posted by: CPA
Originally posted by: dquan97
A friend got a W2 that reported only wages earned...no ss, medicare, income taxes withheld. State portion showed income tax withheld. His employer wasn't withholding FICA from monthly checks. I called their HR office to find out if this was an error and they cited the usage of Section 530 of the tax code.
Link to Section 530: http://ftp.irs.gov/pub/irs-pdf/p1976.pdf
How do I report that income? As a wage? Sch. C? Wouldn't he have to pay his 1/2 share of FICA? How?
Schedule C. He will have to pay the full share of FICA, but he also can deduct expenses from it. He should have received a 1099, not a W2. If the company gave him a W2, well then they screwed up.
III. Reporting Consistency
Finally, you must have filed all required federal tax returns (including information returns) consistent with your treatment of each worker as not being employees. This means,for example, that if you treated a worker as an independent contractor and paid him or her $600 or more, you must have filed Form 1099-MISC for the worker. Relief is not available for any year and for any workers for whom you did not file the required information returns.
I agree with what you said. I even talked to their HR and told them that they messed up, but they wouldn't correct it. Report the wage as "other income" under line 6 of sch C?
If they won't correct it, I would file an extension, then contact the IRS and explain to them what is going on and see how they say you should handle it.
Funny thing is that the CA state portion of the W2 shows state income tax was withheld. How would I show this?
Originally posted by: Geekbabe
Ok Eaglekeeper, CPA and all the rest of you tax guys, how on earth do you stand doing this crap for a living? My eyes feel like they're bleeding from all the reading and I had a massive headache trying to understand the rules, regs and seemingly endless twisted maze that is our tax code.
I would so love it if the tax code was simple and straight forward,then I could just focus my energy on producing income instead of having to twist my brain around this stuff. I've vowed that I'm going to seek out a good CPA to handle my tax issues from this year onward.
My hats off to all of you guys, your jobs are complex, I'd run screaming into the streets if anybody told me I had to do taxes for a living
Originally posted by: skace
I efiled just in time (last night) . Why am I such a procrastinator?
I forget, do I still have to mail in a paper copy in addition to my efile? The email I got back said I was all set. Fed only, no state.
Originally posted by: EagleKeeper
Originally posted by: dquan97
Originally posted by: CPA
Originally posted by: dquan97
Originally posted by: CPA
Originally posted by: dquan97
A friend got a W2 that reported only wages earned...no ss, medicare, income taxes withheld. State portion showed income tax withheld. His employer wasn't withholding FICA from monthly checks. I called their HR office to find out if this was an error and they cited the usage of Section 530 of the tax code.
Link to Section 530: http://ftp.irs.gov/pub/irs-pdf/p1976.pdf
How do I report that income? As a wage? Sch. C? Wouldn't he have to pay his 1/2 share of FICA? How?
Schedule C. He will have to pay the full share of FICA, but he also can deduct expenses from it. He should have received a 1099, not a W2. If the company gave him a W2, well then they screwed up.
III. Reporting Consistency
Finally, you must have filed all required federal tax returns (including information returns) consistent with your treatment of each worker as not being employees. This means,for example, that if you treated a worker as an independent contractor and paid him or her $600 or more, you must have filed Form 1099-MISC for the worker. Relief is not available for any year and for any workers for whom you did not file the required information returns.
I agree with what you said. I even talked to their HR and told them that they messed up, but they wouldn't correct it. Report the wage as "other income" under line 6 of sch C?
If they won't correct it, I would file an extension, then contact the IRS and explain to them what is going on and see how they say you should handle it.
Funny thing is that the CA state portion of the W2 shows state income tax was withheld. How would I show this?
Sorry for chiming in late - on a red-eye last evening
I would file the CA as normal.
Then
1) File the Fed using the income as 1099 - figure out how to expense some of the income and eat the extra FICA. If expensing will exceed 7.5, then paying then one is better off.
2) Contact the IRS and show them the paperwork and any other documetnation you have. SS and other taxes will still have to be paid - just not the employer share of FICA.
However, this may backfire with employment; they obviously attempted to cut a corner by saving on their share of the FICA and may not appreciate getting a visit from Uncle on such. - There may be others that they pulled a similar stunt on.
They did not provided a 1099 as required by Section 530
They withheld and paid CA taxes for you.
If you fillled out a W4, then they are treating you as an employee.
Originally posted by: dquan97
Originally posted by: EagleKeeper
Originally posted by: dquan97
Originally posted by: CPA
Originally posted by: dquan97
Originally posted by: CPA
Originally posted by: dquan97
A friend got a W2 that reported only wages earned...no ss, medicare, income taxes withheld. State portion showed income tax withheld. His employer wasn't withholding FICA from monthly checks. I called their HR office to find out if this was an error and they cited the usage of Section 530 of the tax code.
Link to Section 530: http://ftp.irs.gov/pub/irs-pdf/p1976.pdf
How do I report that income? As a wage? Sch. C? Wouldn't he have to pay his 1/2 share of FICA? How?
Schedule C. He will have to pay the full share of FICA, but he also can deduct expenses from it. He should have received a 1099, not a W2. If the company gave him a W2, well then they screwed up.
III. Reporting Consistency
Finally, you must have filed all required federal tax returns (including information returns) consistent with your treatment of each worker as not being employees. This means,for example, that if you treated a worker as an independent contractor and paid him or her $600 or more, you must have filed Form 1099-MISC for the worker. Relief is not available for any year and for any workers for whom you did not file the required information returns.
I agree with what you said. I even talked to their HR and told them that they messed up, but they wouldn't correct it. Report the wage as "other income" under line 6 of sch C?
If they won't correct it, I would file an extension, then contact the IRS and explain to them what is going on and see how they say you should handle it.
Funny thing is that the CA state portion of the W2 shows state income tax was withheld. How would I show this?
Sorry for chiming in late - on a red-eye last evening
I would file the CA as normal.
Then
1) File the Fed using the income as 1099 - figure out how to expense some of the income and eat the extra FICA. If expensing will exceed 7.5, then paying then one is better off.
2) Contact the IRS and show them the paperwork and any other documetnation you have. SS and other taxes will still have to be paid - just not the employer share of FICA.
However, this may backfire with employment; they obviously attempted to cut a corner by saving on their share of the FICA and may not appreciate getting a visit from Uncle on such. - There may be others that they pulled a similar stunt on.
They did not provided a 1099 as required by Section 530
They withheld and paid CA taxes for you.
If you fillled out a W4, then they are treating you as an employee.
Filed an extension, so I have time to figure this out. To summarize, file the income to the fed as 1099 income and file to state as w2 income? Wouldn't that raise a number of flags at the state level?
Originally posted by: Lothar
In preparation of taxes for next year, one of my close aunt is sick in London, and the hospital bill has gone through the roof.
I plan on contributing $5k to her family.
What will be the major implications/benefits?
As I understand it, I should make the check payable directly to the hospital, not to the beneficiary correct?
Will this fall under the 7.5% AGI floor that I have to meet or the 2% floor, or it won't have any floor and would be like a normal deduction?
What if that $5k was done as a gift? (you can give someone $12k every year tax free, but the person who recieves this has to report it as income, correct?)
Even if I find out something like this isn't deductable, I still plan on doing this. I just want to make sure paperwork is in order.
Originally posted by: EagleKeeper
Originally posted by: Lothar
In preparation of taxes for next year, one of my close aunt is sick in London, and the hospital bill has gone through the roof.
I plan on contributing $5k to her family.
What will be the major implications/benefits?
As I understand it, I should make the check payable directly to the hospital, not to the beneficiary correct?
Will this fall under the 7.5% AGI floor that I have to meet or the 2% floor, or it won't have any floor and would be like a normal deduction?
What if that $5k was done as a gift? (you can give someone $12k every year tax free, but the person who recieves this has to report it as income, correct?)
Even if I find out something like this isn't deductable, I still plan on doing this. I just want to make sure paperwork is in order.
1) It is not your medical bill or dependants - therefore it is not deductible on the Schedule A for midical costs
2) The donor is liable for the gift taxes, not the recipient.
3) If the hospital is a non-profit, you MIGHT be able to get away by donating the 5K to the hospital itself. The problem comes when you put strings on the use of the funds. Then it could be no longer considered to be a donation.
Much would depend on what agreement/understanding you come to with the hospital when you turn over the money.