Free Tax Tips

Posts Tagged ‘finance’

Question: How do I pay taxes as a new 1099 employee?

I’m a new 1099 employee. How do I file taxes–quarterly? What’s the first step? I’m new to this. I receive a paycheck every week, but since I’m not full-time, my employer doesn’t take out any taxes. What do I need to do to report and pay taxes? My husband works full-time, and we’ve always filed a joint annual return in the past–how does this affect his filing?

Answer: They aren’t taking taxes out because you are classified as a 1099 employee, not because you are part-time. And depending on your job duties, it might or might not be legal to classify you that way rather than as an employee, but that’s a different topic. See http://www.irs.gov/businesses/small/article/0,,id=99921,00.html for more info on that. Sometimes employers illegally classify employees as independent contractors to avoid paying employer taxes.

When you file your tax return, you’ll fill out a schedule C to show your income and any associated deductible expenses, then a schedule SE to calculate your self-employment tax which is 15.3% of your net income. The numbers from the bottom of those two schedules will then transfer to your 1040.

You can still file a joint return with your husband.

If you expect to owe $1000 or more in taxes, including both income taxes and self-employment taxes, you should file quarterly estimated returns and make payments with the return of the tax you expect to owe for that quarter’s earnings.

Tax help ready for returning Lewis-McChord soldiers

After a year spent fighting overseas, nearly 18,000 returning soldiers from Joint Base Lewis-McChord shouldn’t forget that they still need to pay their taxes.

Health Care Reform and The 1099 Tax on the Gold Ounce.

Question: Is it legal to buy and then resell things on ebay for the purpose of income without declaring it?

I’ve had to buy a couple things on ebay recently and i’ve noticed that the same items sell for a lot more or less depending on the way they are listed. (pictures, description etc.) It’s become obvious to me that this disparity could be exploited to make some easy money, maybe £50 a week on average. Is this legal in the UK without declaring it on tax forms?

Answer: Yes, people who buy stock, buy low sell high? No different in E-bay

Brookfield Asset Management Announces Strong Operating Cash Flow of $327 Million for Second Quarter of 2010

TORONTO, ONTARIO–(Marketwire – 08/06/10) – Investors, analysts and other interested parties can access Brookfield Asset Management’s 2010 Second Quarter Results as well as the Shareholders’ Letter, Financial Review and Supplemental Information on Brookfield’s website under the Investor Centre/Financial Reports section at www.brookfield.com . The 2010 Second Quarter …

You don’t have to pay Federal Income Tax?

Question: how to increase State Income Tax Withholding in massachusetts?

I would like to increase my state tax withholding from 1 to 2 – what form do I need to fill out & submit to my employer?

Answer: The Massachusetts state income tax witholding form is Form M-4, similar in function to the federal W-4.

NC Leaders Pleased Bill Could Close Gap By $343M

North Carolina likely won’t have to make across-the-board government spending cuts and could see thousands of additional public school positions preserved now that extra money appears headed to the state from Washington.

Tax Tip: Withholding Calculator – January 2010

Question: 2005 FORM 8829 Carryover of Unallowed Expenses, How Do I Do it?

Hi I have a small business and have carryover of expenses that were not allowed in 2005 as I posted a loss that year. I have money in line 41 of the 2005 form 8829. I want to apply those carryovers to this years taxes and am unsure where to do it on the forms. My tax software says I need to attach a statement when I enter the carryovers. What do I enter as my statement and where (on which form) is the carryover amount entered? DO I need to file a form 1045 as well?

Answer: I think between you and the program are confusing two different carryovers. I think the information you are entering is being placed in the wrong place as a Net Operating Loss If you did not have a negative AGI on your 2005 return than you did not have a Net Operating Loss.

What it sounds like to me is that you have a carry-forward of business use of your home. That carry-forward is entered on Form 8829 on line 24 and there are no attachments required. There should be a question in the same section as you are entering your household expenses for the carry forward from the previous year.

States eye online sales tax revenue

WASHINGTON — Shoppers can often save big buying online instead of at the local mall. But a chunk of the savings comes at the expense of state and local governments, in the form of sales taxes that are not paid on many Web purchases.

Small Business Income Tax Planning & Preparation 2009, 2010.mov

Question: Why aren’t reward flights earned from frequent flier miles taxable income?

Why aren’t reward flights earned from frequent flier miles taxable income? If someone gives me a free trip to Tahiti, that’s taxable, so how is it different if I accumulate miles through business travel and reimbursed expenses on my credit card and they “reward” me with a free trip to Tahiti?

Answer: Officially they are considered a rebate. Rebates (even as points) are a discount/refund on something you previously bought and aren’t taxable.

Unofficially, they *did* try to tax them.

If you used a ticket you were supposed to get the “price” for the ticket and put it on your tax return. If I use FF miles to get last minute tickets, would I use the full coach price, the first class price if I upgraded or the 3 weeks advance purchase price?

Originally the IRS did declare FF trips taxable on the grounds you didn’t pay for them. Virtually nobody except accountants and IRS employees declared them. Then someone argued the rebate logic and the IRS backed off and said the tickets were only taxable if you earned them from business miles and used them on a personal trip or sold them. (At the same time, governments and companies were tracking the miles and demanding that employees turn the tickets back in.)

The problem was, it’s a pain to track miles and separate business/personal use and actually use them before they expire. So finally the IRS threw up their hands and said, okay, if you SELL them they are still taxable because your basis is zero. (My old company would “buy” them back from you for 1/2 of value and add the money to your W-2 and paycheck. This was a great way to get rid of one ticket on some airline you really didn’t fly much on.)

And to get 20,000 miles, I had to fly at least 40 times. Sundays, late nights, early ams, crowded flights…I earned that million mile card.

Merchants Bancshares, Inc. Announces Record Results

SOUTH BURLINGTON, VT–(Marketwire – July 26, 2010) – Merchants Bancshares, Inc. ( NASDAQ : MBVT ), the parent company of Merchants Bank, today announced net income of $4.59 million and $8.42 million, or diluted earnings per share of $0.74 and $1.37 for the quarter and six months ended June 30, 2010, respectively. This compares with net income of $2.06 million and $4.97 million or diluted …

Cancelled Debt Considerations