NationStates Jolt Archive

Tuesday is tax day, and I would feel like a very bad person if I didn't start a thread to help people out.

I will try to provide sources for all my answers, but just in case, take my advice as a jumping off point and not as the gospel truth (although most of you don't even take the gospel truth as the gospel truth)

anyone freaked out about tax day?

;)

I don't have to pay taxes, although I do understand what forms I would have to fill out if I were working and how to do them. Of course, it would be easiest just to use TurboTax and get the whole mess done with.

I don't have to pay taxes, although I do understand what forms I would have to fill out if I were working and how to do them. Of course, it would be easiest just to use TurboTax and get the whole mess done with.

most people use something like that because they don't want to know about their taxes. I am willing to help educate no matter what form of tax prep you do. I am working to fight the ignorance of the tax code. You can't really control your finances unless you know where your money goes and why.

most people use something like that because they don't want to know about their taxes. I am willing to help educate no matter what form of tax prep you do. I am working to fight the ignorance of the tax code. You can't really control your finances unless you know where your money goes and why.

Chances are, I'll be doing a lot of investment-related tax filing since I want to go in to venture capital once I graduate and we make most of our money off of successful IPOs by companies we fund.

Taxes? Me? Nah..

I just deducted my entire income as living expenses and hoped for the best.

..and it worked! I got 100% of my tax back, both state and federal. Gotta love that. :p

I just deducted my entire income as living expenses and hoped for the best.

..and it worked! I got 100% of my tax back, both state and federal. Gotta love that. :p
Whaa?

Whaa?

Yeah.. I got creative. I get a 52$/day stipend for each night I slept on the road, and I deducted all of my clothing, groceries, tools and other stuff. Worked out pretty nice.

Yeah.. I got creative. I get a 52$/day stipend for each night I slept on the road, and I deducted all of my clothing, groceries, tools and other stuff. Worked out pretty nice.
Wow, nice.


I'll also totally have to remember that for the next time someone bugs me about my NS nation having a 100% income tax rate. "Oh, don't worry, my citizens get it all back at the end of the year." :p

Yeah.. I got creative. I get a 52$/day stipend for each night I slept on the road, and I deducted all of my clothing, groceries, tools and other stuff. Worked out pretty nice.

you can't do that. (at least not in the US)

you can only deduct clothes that are used only for work that are specific to your job and can not/ should not be worn anywhere else, for example I can deduct my clown shoes, but hubby can't deduct his business suit.

you also can not deduct your groceries past the amount that you actually eat on the road and only in the amount that you actually spend and not more than the upper limit, you can't deduct groceries that you eat at home.

tools might be okay if you use them for your job only.

I hope you don't get audited, but you probably shouldn't brag about it, and you probably needed to keep all your receipts.

you can't do that. (at least not in the US) .

Nah, I was half joking about creativity. I'm pretty well-versed in what can and can't be deducted. It's pretty much everything while you're on the road, though, from bleach and laundry detergent to shoes to perscription sunglasses, coats, gloves, hats, boots, flashlights, duct tape, shop towels, blankets, mattresses, pillows, reefer, maps, electric toothbrush, electric shaver, etc. As for home vs. work, the truck was my home, so there's no conflict.

I just deducted my entire income as living expenses and hoped for the best.

..and it worked! I got 100% of my tax back, both state and federal. Gotta love that. :p
...and I got audited last year? sheesh. :mad:

Nah, I was half joking about creativity. I'm pretty well-versed in what can and can't be deducted. It's pretty much everything while you're on the road, though, from bleach and laundry detergent to shoes to perscription sunglasses, coats, gloves, hats, boots, flashlights, duct tape, shop towels, blankets, mattresses, pillows, reefer, maps, electric toothbrush, electric shaver, etc. As for home vs. work, the truck was my home, so there's no conflict.

you seriously can't deduct all of that.......do you own your own business? what kind of work do you do? how long before you get audited?

you seriously can't deduct all of that.......do you own your own business? what kind of work do you do? how long before you get audited?

I was, until recently, a long-haul truck driver, which means an entirely different set of regulations applies to me.

For one, we get a 52$/day deduction just for basic living expenses, at least for the last tax year.. that number's going to drop a little this year, I believe, but the bulk of what I paid in tax was deductible just on the basis of my $52 daily credit. Spending, say, 200 days on the road last year would've meant a $10,000.00 deduction, for example, and most drivers will spend over 300 days out.

As for items, like I mentioned, it's all legit. The company gave me a 10-page or so long list of things I could deduct, so I was keeping receipts from day one. Everything from pens and pencils to toothpaste got deducted.

This is a pretty crummy explanation, but it's better than nothing: http://sba.microsoft.com/taxcenter/danfarmer.html

Anyway, I saw a tax preparer before deciding to do my taxes myself, and they had no idea what I could and couldn't deduct.. they had to look it up. :p In any case, they wanted to charge me almost $400 for an advance on my return, so I ended up laughing in their faces, more or less, and did my taxes at home.

Edit: The one thing I didn't deduct, but could have, was my ATM fees... ATM fees and credit card interest is deductible, and I probably had about $100 worth of the former. However, I was over 100% deducted by that time, so it wouldn't have mattered.

I was, until recently, a long-haul truck driver, which means an entirely different set of regulations applies to me.

For one, we get a 52$/day deduction just for basic living expenses, at least for the last tax year.. that number's going to drop a little this year, I believe, but the bulk of what I paid in tax was deductible just on the basis of my $52 daily credit. Spending, say, 200 days on the road last year would've meant a $10,000.00 deduction, for example, and most drivers will spend over 300 days out.

As for items, like I mentioned, it's all legit. The company gave me a 10-page or so long list of things I could deduct, so I was keeping receipts from day one. Everything from pens and pencils to toothpaste got deducted.

This is a pretty crummy explanation, but it's better than nothing: http://sba.microsoft.com/taxcenter/danfarmer.html

Anyway, I saw a tax preparer before deciding to do my taxes myself, and they had no idea what I could and couldn't deduct.. they had to look it up. :p In any case, they wanted to charge me almost $400 for an advance on my return, so I ended up laughing in their faces, more or less, and did my taxes at home.

Edit: The one thing I didn't deduct, but could have, was my ATM fees... ATM fees and credit card interest is deductible, and I probably had about $100 worth of the former. However, I was over 100% deducted by that time, so it wouldn't have mattered.

oh, Truck Driver........completely different ball of yarn.....sorry.

I have to do taxes for like 4 truck drivers, the whole time I am re-looking up everything, because all the crap you guys get is like unimaginable.

I have been doing my own taxes for about 20 years.

As a local government employee, there are some things that we are allowed to deduct, such as the cost of our uniform laundry fees, new uniforms, training expenses, etc.

It all started when I was having my taxes done, and the preparer told me that they were going to charge me about $500.00, because they had to figure out the state retirement contributions, and my 401K. Considering that both of those are tax exempt until I start to withdraw contributions, I told him to forget it. Thanks to him trying to rip me off, I started studying the tax code, and researching what is applicable and not applicable in my situation.

Vic

Huzzah for:
PAYE and being unemployed.

I laugh at your need to "do" taxes.

Has anyone found that law that says you have to pay taxes?

I personally am not freaked out about tax day. I don't worry at all about being audited for the simple fact is that I have people to do my books and taxes. They are very good at what they do and well worth the money that I spend on them. Saves me a lot of stress that is for sure.

Has anyone found that law that says you have to pay taxes?

No I haven't looked but stop paying your taxes and see what happens. ;)

My mother enjoys doing taxes or something, so she does them all for me. I just mail all my papers to her every year. Its very nice as long as you dont care about a parent knowing what your income is (which I dont.)

Taxes? Last year they took my takes, then gave them back with a bit extra and an apology. The system works!

EDIT: Actually, maybe not - its all a bit of a blur, but I randomly got a cheque one day.

I hate taxes. :eek:

Damnit, I hate taxes!!! :headbang:

id like some help

i received $800 in an unclaimed property thing from the state of wisconsin.

they sent me a 1099-B because it turned out to be from an old life insurance policy my parents took out on me when i was born.

it says its some kind of BOND thing and the net suggests that i have to file schedule D. but ----ARRRGH---how can i fill out schedule D? i ddidnt buy the thing, my parents are long dead, i dont know what they paid, when they started it, nothing!

what to do? cant i just put it on line 21 and say its "other income"?

I have a tax question. Why can't I claim my cat as a dependent?

id like some help

i received $800 in an unclaimed property thing from the state of wisconsin.

they sent me a 1099-B because it turned out to be from an old life insurance policy my parents took out on me when i was born.

it says its some kind of BOND thing and the net suggests that i have to file schedule D. but ----ARRRGH---how can i fill out schedule D? i ddidnt buy the thing, my parents are long dead, i dont know what they paid, when they started it, nothing!

what to do? cant i just put it on line 21 and say its "other income"?

you can fill out the schedule D with all the information you have, but you will probably have to assume the basis as what it's worth now, and write a letter along with your return explaining that you have no idea what the actual basis was.... it should be okay.

The problem with putting it on line 21 is if you e-file your return they have a copy of your 1099-B and it will notice no schedule D on your return and flag you for and IRS letter about "unreported income" which is a whole mess to sort out. If you mail in your return you might get away with doing the line 21 until the IRS calls you some time in late 07 asking why you didn't report a schedule D and at that time you can explain that you didn't know what to do with it, and they will fine you a few bucks and fill out the schedule D for you the right way when they amend your return (which they will charge you for)

if you think you might be able to figure out the basis and such but not before Tuesday file an extension but remember your tax owed is still due on Tuesday extension or not, so if you think you might owe something send them a check for $50 and file your return later.....mark the $50 on your tax return so you get credit for it (line 39 on 1040A and 65 on 1040)

you can fill out the schedule D with all the information you have, but you will probably have to assume the basis as what it's worth now, and write a letter along with your return explaining that you have no idea what the actual basis was.... it should be okay.

The problem with putting it on line 21 is if you e-file your return they have a copy of your 1099-B and it will notice no schedule D on your return and flag you for and IRS letter about "unreported income" which is a whole mess to sort out. If you mail in your return you might get away with doing the line 21 until the IRS calls you some time in late 07 asking why you didn't report a schedule D and at that time you can explain that you didn't know what to do with it, and they will fine you a few bucks and fill out the schedule D for you the right way when they amend your return (which they will charge you for)

if you think you might be able to figure out the basis and such but not before Tuesday file an extension but remember your tax owed is still due on Tuesday extension or not, so if you think you might owe something send them a check for $50 and file your return later.....mark the $50 on your tax return so you get credit for it (line 39 on 1040A and 65 on 1040)

sigh. ok ill file a schedule D and add a note. i hate not being able to fill in all the right slots but there isnt much to do about it.

thanks

sigh. ok ill file a schedule D and add a note. i hate not being able to fill in all the right slots but there isnt much to do about it.

thanks

fill out all you can, 90% of my clients don't have all the answers to all those freaking questions on the schedule D anyway......esp. when it comes down to employee stock purchase that they sold when they quit their job that they had for 8 years and such.

so the tuition deduction and fees thing got renewed but its not on the form anymore?

im looking at the "whats new" irs pdf..


i put the tuition on line 35 add a T to it and i dont have to file any extra forms?

is that right?

I already had my taxes done.

I have a question about business taxes, though. I'm going into a little bit of venture capitalism and I may be helping a small business get on their feet, in exchange for a very large stake in the company. Would there be any tax benefit to creating a separate holding company for my investments?

and what about the hope learning credit thing? if i do the line 35 thing, do i still get to do the line 50 thing? (that doesnt make any sense to me) is there something im missing that means i cant take that education credit?

so the tuition deduction and fees thing got renewed but its not on the form anymore?

im looking at the "whats new" irs pdf..


i put the tuition on line 35 add a T to it and i dont have to file any extra forms?

is that right?
that's right.

I already had my taxes done.

I have a question about business taxes, though. I'm going into a little bit of venture capitalism and I may be helping a small business get on their feet, in exchange for a very large stake in the company. Would there be any tax benefit to creating a separate holding company for my investments?
tax-wise I am not entirely sure. Although for your own safety you should find a legal way to keep your stuff separate from their stuff, otherwise if they go under you can totally lose more than you bargained. If you are seriously only venture capital I would set yourself up like a LLC to protect your personal money.
and what about the hope learning credit thing? if i do the line 35 thing, do i still get to do the line 50 thing? (that doesnt make any sense to me) is there something im missing that means i cant take that education credit?
you can't file an 8863 on the same money you take the tuition and fees deduction on, but if you had different tuition you can.

for example we paid out $13K in tuition for hubby this year, and that goes on as a tuition and fees deduction, we also paid out $5K for me and I take the lifetime learning credit.....but can't take anything else as a credit or deduction on my tuition. we opted to just deduct the tuition for the kid and use her hope credit later when it was more appropriate.....(I really think we pay too much tuition here.)

Has anyone found that law that says you have to pay taxes?

Section 1 of title 26 would be a good place to start.

Has anyone found that law that says you have to pay taxes?

most of it is case precedent, but if you want to read up on how all the "I don't wanna" scams have been beat down in Federal courts you can start here (http://www.irs.gov/businesses/small/article/0,,id=106788,00.html).

that's right.


you can't file an 8863 on the same money you take the tuition and fees deduction on, but if you had different tuition you can.

for example we paid out $13K in tuition for hubby this year, and that goes on as a tuition and fees deduction, we also paid out $5K for me and I take the lifetime learning credit.....but can't take anything else as a credit or deduction on my tuition. we opted to just deduct the tuition for the kid and use her hope credit later when it was more appropriate.....(I really think we pay too much tuition here.)

that is a brutal amount of tuition for a family with small children.

so if i figure out that the hope credit is better for me i can do that instead of the education deduction one?

that is a brutal amount of tuition for a family with small children.

so if i figure out that the hope credit is better for me i can do that instead of the education deduction one?

only if you are full time and it is your freshman or sophomore year in college.

5yo is not full time in college so we had to deduct hers on our schedule A anyway, she only takes 4 hours.

only if you are full time and it is your freshman or sophomore year in college.

5yo is not full time in college so we had to deduct hers on our schedule A anyway, she only takes 4 hours.

ok thanks. youve been a big help!

ok thanks. youve been a big help!

:) you could still take the lifetime learning credit, which is on the same form as the hope credit.

Wow this stuff is confusing!!! Ahhh! :eek:

I have a tax question. Why can't I claim my cat as a dependent?Because it's a cat, not a dog. What a silly question. :p

tax-wise I am not entirely sure. Although for your own safety you should find a legal way to keep your stuff separate from their stuff, otherwise if they go under you can totally lose more than you bargained. If you are seriously only venture capital I would set yourself up like a LLC to protect your personal money.


Hypothetically, if the business was made into an LLP, with myself as one of the partners, do you know how liable I could be held? From what I can tell so far, the worst that could happen is I lose my initial investment.

Hypothetically, if the business was made into an LLP, with myself as one of the partners, do you know how liable I could be held? From what I can tell so far, the worst that could happen is I lose my initial investment.

with an LLP you get the same benefits of an LLC but you can go in with someone else....you will only lose your initial investment ( they can't come after your personal stuff) but you better really trust the person, because the LLP credit will affect your business credit in the future. Partnerships have tricky legal and tax obligations and if you are going to set one up, for sure go to an attorney, don't even dare to do the out of the box standard form that some try to sell you. Everything needs to be in black and white signed and notarized. Any eventuality that you think might ever come up needs to be outlined and talked about in binding contract.

Wow this stuff is confusing!!! Ahhh! :eek:

:p that's why I make so very much money. :cool:

My fiancee helped me out quite a bit. I was begining to get angry.

Oh, tax year ends within 2 months in Australia -dang!
I hate taxes ... especially when you have pre-pay it.

with an LLP you get the same benefits of an LLC but you can go in with someone else....you will only lose your initial investment ( they can't come after your personal stuff) but you better really trust the person, because the LLP credit will affect your business credit in the future. Partnerships have tricky legal and tax obligations and if you are going to set one up, for sure go to an attorney, don't even dare to do the out of the box standard form that some try to sell you. Everything needs to be in black and white signed and notarized. Any eventuality that you think might ever come up needs to be outlined and talked about in binding contract.

Thank you very much for your help.