One is safe up to 1000.
After that, much will depend on the income type and when it was received.
If the ability for having withholding exists, then Uncle gets upset.
Ouch - the Fed may hit you with an under-withholding penalty also
didn't know such a thing existed. Youch.
I just wanted to ask people's opinion about software vs. H&R Block (or similar) in my situation. I have income from 2 separate states (Colorado and Mississippi) but yet currently live in a 3rd (Indiana) but I didn't work here in 2010. I also have student loans and school from last yeat (though I don't know how much of all that is relevant). My thought is that this is probably complex enough to warrant getting this done in person, but I've never used the software so it may still be easy enough with that.
I just wanted to ask people's opinion about software vs. H&R Block (or similar) in my situation. I have income from 2 separate states (Colorado and Mississippi) but yet currently live in a 3rd (Indiana) but I didn't work here in 2010. I also have student loans and school from last year (though I don't know how much of all that is relevant). My thought is that this is probably complex enough to warrant getting this done in person, but I've never used the software so it may still be easy enough with that.
Tax S/W has been made smart enough to handle multiple states.
the companies that develop the S/w ahve also become smart enough to rape you 2x over for the state S/W.
When income comes from multiple states (taxable), they should charge you for only one state, expecially if you are doing your return online.
For those offline; they should be able to embed a code to allow the two states to only work together as a single unit.
It just galls me that they charge you multiple times when you have not real choice aftger already purchasing one state. It is after the fact that you find out that you can not file your state return because another state package is required. No discount for the second state; nor any indication from when you first enter the W2 that there will be a problem.
Example:
If enter a Mass W2 and a Conn W2; the S/W knows that I will have to file w/ respect to both states. If I live in MA; I tell the system to download the MA state (after paying for it; either up front or when downloading/using) Now after that, the system says; sorry, we can not finish your state unless you buy another state copy for Conn.
Almost seems like a bait/switch; You purchase one item and then find out that it is defective and you have to purchase something else to make the first item work.
Ouch - the Fed may hit you with an under-withholding penalty also
gotta under withhold 2 years in a row, we got a refund last year.
I'm thinking about getting roommates with a house I am buying.
If I make the roommates pay for all the bills (Electricity, Cable, Gas, Water, etc.) does their contributions here count as rental income?
If you are formally renting to them, yes; You can also depreciate 2/3 of the overall costs of the house, including upkeep, mortgage, insurance, utilities, cable, internet, etc.
If otherwords, everything except food can get written off.
You have to declare on the Schedule e the money given to you.
And when you sell the house, the depreciation is supposed to be recaptured.
Or if there is no rental agreement; then nothing needs to be reported.
If you purchased the home and closed by the middle of the year; you also may qualify for the 8K tax credit.
First off, I want to thank EagleKeeper and CPA and whomever else helps in this thread. I've never enlisted the services of the ATOT Tax threads and didn't realize how in-depth they were. So thanks for that. Now, my questions:
I went back to University a couple years ago, and all of my payments during 2008 and 2009 were out of pocket, so they were easy to deduct. 2010 was my first year as an independent filer receiving student loans and scholarship towards tuition. My 1098-T (box 2) lists "amounts billed for qualified tuition and related expenses" as $15xxx. Box 1, "Payments received..." is blank. Do I consider all the loans as Payments received by the School? Or only what I paid out of my own pocket? It would be a sizable difference.
Second, unrelated question. I did a single photography gig for a DJ company a friend owns. I filled out a W-4, sent him an invoice, and received $210 compensation. They didn't send me a 1099 because it was for such a small amount. Do I just declare this as Hobby Income?
Thanks again guys.
Loans are considered payments.
If you had any expenses against the $210, take them I guess. Otherwise, just claim it as other income subject to SE tax. You won't get hit with SE cause it's under the threshold.
But they're not considered income, right? My refund is increasing by like $2k, then. Seems too good to be true, like Uncle Sam wouldn't let you win both of those ways, which is what gave me pause in the first place.
What's not considered income? Basically, anything applied to your account (cash payments, loans, etc) is considered paid. Subtract from that non-taxable "payments" -- grants, scholarships, etc and you have your deductible amount.
Loans are acceptable forms of payment. It's money you borrowed, which you will have to pay back. It's considered out of pocket.I was referring to the same loans I'm claiming deductions on.
Excellent, found it, thanks EagleKeeper. What if the bills are in the roommates name and they pay it directly? Does that still count as rental income?
On the "2/3" deprecate/deduct costs part I thought that you actually have to add up the sq. footage of the bedrooms you rent the roommates and divide it by the total sq. footage of the house? You can't just say there are x roommates and deprecate/deduct costs for x/x+1 % (the one being you the owner-occupant).
Thanks again.
If i wanted to claim my mother who lives in her own home as my dependent (making me head of household), is there a limit on how much income she's allowed to have from her 1099-R retirement pension?
Google results show 3650 a year but i cant find it on the IRS website.
IRS FAQ - Pub 503
If she is living in her own home, that will be tough to justify her as a dependant
Alright need help...
I filed my taxes at the end of January (standard deduction), and lo and behold, my locality sends me a 1099-G 2 days later for a local income tax refund I received last year for overpayment tax year 2009. Meanwhile, my return had been accepted, and my refund issued.
So I fired up Turbo Tax to do a 1040X, it walks me through the whole process of putting in the ~$250 I received last year from my locality, and my refund doesn't change at all. I look at the final copy of the return and there's absolutely nothing on my 1040X aside from "Amending for 1099" and my personal info.
Do I still have to submit an amended return even though this 1099-G doesn't seem to be affecting my tax liability at all? Am I doing it right?