NationStates Jolt Archive

Does anybody have the slightest idea how to do your taxes? I look at the form and wonder if the IRS makes it so complicated just to make life difficult. Shows you why H&R Block stays in business. :(

Does anybody have the slightes idea how to do your taxes? I look at the form and wonder if the IRS makes it so complicated just to make life difficult. Shows you why H&R Block stays in business. :(
I am a tax pro, what are you having a problem with?

I am a tax pro, what are you having a problem with?

My main concern is how not to correctly do the dependent thing. I'm a full time student and my parents are still listing me as a dependent but honestly I can't remember if I told my employer I was 0 or 1 for myself. I hope I'm not being to confusing but I'm told that doing it wrong can actually cause you paying the IRS hundreds which I'd like to avoid.

Should student loans go on the form?

My main concern is how not to correctly do the dependent thing. I'm a full time student and my parents are still listing me as a dependent but honestly I can't remember if I told my employer I was 0 or 1 for myself. I hope I'm not being to confusing but I'm told that doing it wrong can actually cause you paying the IRS hundreds which I'd like to avoid.

Should student loans go on the form?
as far as them still "claiming" you, all that really means is you don't get to take your exemption. If you paid for your school (even through loans in your name) you can use that money either to deduct (tuition and fees deduction) or as a credit (hope credit or lifetime learning) you still get to take your standard deduction too.

Whatever you told your employer is too late now, it has nothing to do with your taxes but more to do with what you had withheld in the way of federal taxes 0 gets more withheld 1 gets less, there is not much you can do about it now

you need to fill out the form 1040 if you are taking education credits, 1040EZ doesn't have the space for it.

you should download pub17, pub 970 (http://www.irs.gov/pub/irs-pdf/p970.pdf), the form 1040, and instructions for form 1040.

after you read through pub 970 and figure out whether to take the deduction or the credits you can fill out those forms, they will be on IRS.gov also along with the instructions.

I tell people who are doing thier own taxes, just take it one line at a time, read carefully, and don't panic. ;)

Whatever you told your employer is too late now, it has nothing to do with your taxes but more to do with what you had withheld in the way of federal taxes 0 gets more withheld 1 gets less, there is not much you can do about it now

I've been told that what should be done is to tell my employer that I'm 0 then put 1 on my tax return and I should get more money from that. Is this accurate I hope?

I've been told that what should be done is to tell my employer that I'm 0 then put 1 on my tax return and I should get more money from that. Is this accurate I hope?
not if your parent's claim you. If you aren't being claimed you can do that, but if you are being claimed the place where you would put the 1 is where they ask how many exemptions, if your parent's claim you they get your exemption so you can't take it.

not if your parent's claim you. If you aren't being claimed you can do that, but if you are being claimed the place where you would put the 1 is where they ask how many exemptions, if your parent's claim you they get your exemption so you can't take it.

Ah. I'm told that as a dependent, making more than $5,000 a year gets taxed heavily. I only make 5.90 and get about the .90 taxed. I worry about actually owing money if this isn't done right.

Ah. I'm told that as a dependent, making more than $5,000 a year gets taxed heavily. I only make 5.90 and get about the .90 taxed. I worry about actually owing money if this isn't done right.
lets see........single standard deduction is 5,000 so if you made 5,000 then you cancel out your income just with your standard deduction and owe no tax.

if you made more lets say 10,000 then, subtract your standard deduction of 5000 and you are left with 5000 income tax on that is 500 (10%) so you can then subtract your credits (education credit) and your witholdings and whatever is left is what you owe. If your withholdings and credits add up to more than your tax you get a refund.

State taxes though can bite you in the butt, what state are you in?

Ah. I'm told that as a dependent, making more than $5,000 a year gets taxed heavily. I only make 5.90 and get about the .90 taxed. I worry about actually owing money if this isn't done right.
Well, if your parents are still claiming you and you claimed the exemption on your W-4, then you're probably going to pay something.

Well, if your parents are still claiming you and you claimed the exemption on your W-4, then you're probably going to pay something.
not necessarily, depending on how much of an education credit she gets.

if she makes 10,000 and paid 2,000 for school then she would end up with a credit around 400 (20% of 2,000) which would only leave her with 100 in tax, surely she had that much witheld.

there is no heavy tax in your bracket.

add up all the income on whatever W2s have been sent to you. (if you had a job that didnt send you a W2 you need to contact them as soon as possible)

how much is it?

do you have the tax form there? take <your total income> - $5k and look it up in the tax table, then compare what was taken out with what you owe, it will give you a quick idea of where you stand.

State taxes though can bite you in the butt, what state are you in?

Ohio

if you have a bank account that pays you interest, no matter how little, dont forget to include it in your return. the bank sent you a summary or a 1099 last month giving you the total amount of interest they paid you.

ah Ohio, that's where you need to be worried, they don't have a standard deduction on thier state tax, only exemptions (which you can't take if your parent's claim you) so unless they have some kickass education credit you are going to be screwed there.

whatever you end up owing divide it by 12 and fill out your W-4 next year with that much extra held out "state only" (just fill out one W-4 for fed and one for state, your HR person won't like it, but she can do it so just make her) that way you won't owe next year, and call in and make payment arrangments with the state, if you get a fed refund you can just turn it over to the state to pay down some of your debt.

if you have a bank account that pays you interest, no matter how little, dont forget to include it in your return. the bank sent you a summary or a 1099 last month giving you the total amount of interest they paid you.
ha. I keep forgeting that some students actually have savings accounts or checking with interest. Some banks won't send you a 1099 if you don't make more than like $500, but if you call your bank they have to give you one, so yeah, keep that in mind too.

ha. I keep forgeting that some students actually have savings accounts or checking with interest. Some banks won't send you a 1099 if you don't make more than like $500, but if you call your bank they have to give you one, so yeah, keep that in mind too.

I made like 20 cents in interest last year. :rolleyes:

I made like 20 cents in interest last year. :rolleyes:
you can leave it off. They are really wanting people to round up now (for computer sakes) so if it doesn't round to $1 then you can basically leave it off, you don't want to pay tax on 80 cents you didn't make, although if you are terrified of the IRS you might pay tax on the 80 cents anyway. LOL.

consider yourselves lucky, my country probably has one of the most complex tax codes in the world, besides the normal incometaxform (http://www.berlin.de/imperia/md/content/senatsverwaltungen/finanzen/steuern/formulare/2005/einkommensteuer/est_1_a_05.pdf), i also have to fill out form GSE (http://www.berlin.de/imperia/md/content/senatsverwaltungen/finanzen/steuern/formulare/2005/einkommensteuer/anlage_gse_05.pdf), form KAP (http://www.berlin.de/imperia/md/content/senatsverwaltungen/finanzen/steuern/formulare/2005/einkommensteuer/anlage_kap_05.pdf), form AUS (http://www.berlin.de/imperia/md/content/senatsverwaltungen/finanzen/steuern/formulare/2005/einkommensteuer/anlage_aus_05.pdf), form SO (http://www.berlin.de/imperia/md/content/senatsverwaltungen/finanzen/steuern/formulare/2005/einkommensteuer/anlage_so_05.pdf), form V (http://www.berlin.de/imperia/md/content/senatsverwaltungen/finanzen/steuern/formulare/2005/einkommensteuer/anlage_v_05.pdf) and a VAT declaration (http://www.berlin.de/imperia/md/content/senatsverwaltungen/finanzen/steuern/formulare/2005/ust2005.pdf).

and my situation is still rather simple, it would get real messy, if i had (recognized) children, then i'd need form Kind (http://www.berlin.de/imperia/md/content/senatsverwaltungen/finanzen/steuern/formulare/2005/einkommensteuer/anlage_kind_05.pdf) ...

Does anybody have the slightest idea how to do your taxes? I look at the form and wonder if the IRS makes it so complicated just to make life difficult. Shows you why H&R Block stays in business. :(

If all else fails, buy a computerized tax program.

not necessarily, depending on how much of an education credit she gets.

if she makes 10,000 and paid 2,000 for school then she would end up with a credit around 400 (20% of 2,000) which would only leave her with 100 in tax, surely she had that much witheld.
I'm working on the assumption that if she's being claimed by her parents, and if her income is that low, then they're probably paying for school as well, that or she's on scholarship, and that would mean, I assume, that either they'd get the education credit as well, or that she wouldn't qualify for it. But you're the expert, not me.

How much do you charge? :D

I'm working on the assumption that if she's being claimed by her parents, and if her income is that low, then they're probably paying for school as well, that or she's on scholarship, and that would mean, I assume, that either they'd get the education credit as well, or that she wouldn't qualify for it. But you're the expert, not me.
true but if she has a student loan in her name (not her parents) than whatever the difference is between box 1 on her 1099-E and the scholorship box, is how much she can either deduct or take a credit for (which ever is most advantageous)

How much do you charge? :D
I am sure more than you can afford (at least I think so) for her taxes 1040 with education credit form, probably about $150 but I would give her a discount (since she is on a budget)and only charge $90.

I barter a lot, esp. this year, for people who are students or who own thier own businesses, so far I have gotten spa gift certificates, free yard work, free oil change/tune up for my Jeep, free childcare, free dinners, and free brokerage fees. :)

I barter a lot, esp. this year, for people who are students or who own thier own businesses, so far I have gotten spa gift certificates, free yard work, free oil change/tune up for my Jeep, free childcare, free dinners, and free brokerage fees. :)
That's okay. Mine won't be too bad this year--two jobs and a moving credit. No other real deductions, and no other income. Last year though--a fellowship as income. That was as confusing as hell. fortunately, my sis is a CPA, and she walked me through it over the phone.

That's okay. Mine won't be too bad this year--two jobs and a moving credit. No other real deductions, and no other income. Last year though--a fellowship as income. That was as confusing as hell. fortunately, my sis is a CPA, and she walked me through it over the phone.
yeah. I had a guy last year who had fellowship income, plus clergy income (he was a chaplian at the hospital part time) and his wife was a truck driver in the national guard who had been deployed to Iraq for a few months so she had combat pay too. I felt bad charging them what I did but I swear thier tax return took me 9 hours and drove me half crazy, I let them pay me when thier refund got back, just to be nice. :p