Free Tax Tips

Posts Tagged ‘forms’

Question: Can I file taxes without using a 1099 form?

I’m self-employeed but get paid by the hour from another company. Do I NEED a 1099 form to file my taxes? If I file without one, will it hurt me in any way?

Answer: You can report income without a 1099.

TAXES: Health care law to tax small businesses with new burden

RANCHO BERNARDO —- Aside from working with skeleton staffs andscrambling to meet payroll, some small businesses now are concernedabout filing yet another form with the Internal Revenue Service totrack dealings with vendors and suppliers who are paid more than$600 annually.

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: Why can’t I just download a 1099-INT form from the IRS site?

It looks like they want to charge me for it.

Answer: they don’t accept downloaded 1099’s – you have to file original printed forms – they are free from the IRS – can order on their website

Health reform provision will create avalanche of paperwork for businesses, critics say

HELENA – An obscure tax-collection provision of the federalhealth reform law is rankling Montana business owners, whoserepresentatives say it will create an avalanche of needlesspaperwork.

NFIB Members Drive the National Debate on the New Healthcare Law and Expanded Paperwork Mandates

Question: I received several 1099 forms for income that I turned over to my employer? how will the IRS know?

I’m employed by a company, but I also do some independant contractor work for several others. I turn over any checks I receive from the other companies to my employer; however I receive the 1099’s from those companies. My employer wrote me a letter verifyin that the income on those 1099’s did not go to me, but to my employer. My question is, when I prepare my tax returns, where do I include the letter from my employer, or in the alternative, how do i show the IRS that the income on those 1099’s should not be attributed to me?

Answer: You must be a subcontractor. You received the money and the IRS knows it. If I understand what you are saying, there’s something shady going on or those checks were supposed to go to you. They have your social security number. So it has to be income and those guys are writing what they “pay out” as an expense on their own taxes. Go to those people and tell them you want a W-2. It could be that you are not an independent contractor. It depends upon IRS definitions, e.g, you have no control over what work you are to do; you have to perform when your employer tells you to and you have no control over how you are to perform the work.

Make several copies of the letter your employer wrote. Keep in several different safe places. This one thing may save you a lot of money and hassle down the road. In the meantime, save all your receipts and keep an accurate, detailed log of all of your expenses. This will help a little as you have extra tax to pay. You have to pay a 15.3% self-employment tax unless your gross income is under 400.00. You get a credit for half of that on the 1040. If you don’t know the mileage you drove, look at the State inspection receipts. The mileage is there and you can interpolate. Think of work related cell phone calls, look at your bills, etc. If you are sent a 1099-MISC with Box 7 filled in, you have to pay what the IRS calls Self-Employment tax. You have to fill out a Schedule SE-Form 1040 and eFile or mail along with the other income tax forms. This is actually social security tax and none of us can get out of that tax either, unless you register as a member of a “religious order”, as the IRS calls it. If you live in one of the 43 States that have income tax, you may have to pay State income tax, also. I know all this because I had clients in this very same situation. Don’t give up. Get something to hold your receipts: a shoebox or anything to start. As the years go by, you will become better and better organized.

Complete an IRS Form SS-8 to get an official ruling on your status. This will help you get unemployment if you get fired. When you file your income tax return, you can attach Form 8919 Uncollected Social Security and Medicare Tax on Wages and only pay the employee’s half of social security. You will still have to cough up all the income tax. IRS and the states are stepping up enforcement as there is severe abuse. These people are trying to get out of paying Workers Compensation premiums and their portion of the FICA tax. An employer has to insure employees against on the job injury by means of Workers Compensation insurance in every single state if he has more than two employees in most States. The IRS is aware of this severe and growing problem and began cracking down on it hard about 3 to 4 years ago.

Lungren calls for repeal of part of healthcare reform

Photo by Cody Kitaura. Lungren speaking at McConnell Estates Winery in southern Elk Grove, surrounded by members of several local chambers of commerce and representatives from the National Federation of Independent Business (NFIB), the group that held the June 3 press conference.

Question: Estimated Tax?

My mom has a small business or is self employed and since her 2 clients dont take out taxes when they pay her she set up something where she pays $250.00 to federal quarterly and $80.00 to state quarterly (Ohio if that matters at all). And on the 1040 form the software I am using has put on line 27 (One-half of self employment tax.) $281.00 then on like 64 (Federal income tax withheld from forms w-2 and 1099) $425.00 then on line 65 (2007 estimated tax payments and amount applied from 2006 return) $1,000.00 I wanted to make sure that this sounded right to someone because I have no clue.

Answer: I think you got it right… assuming she does not have a carryover of overpayment from 2006.

Porter Stansberry’s Theories of Relativity

Buy gold stocks when they’re cheap compared to the price of bullion. Stock up on silver when the silver-to-gold relationship soars well past its historic ratio. Pick up corporate bonds when they trade at a big discount relative to par.