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neonnoodle posted:OK, thanks. Although I wonder why they would prefer to pay me more than to pay the payroll taxes? Seems like the same amount of money either way. You have to pay 15.30% in payroll taxes on that money (I believe). Are you making 15.3% more?
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Feb 2, 2011 23:25
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So in 2010, I worked part time in Michigan (my resident state) and also had an internship in NYC. Training for the internship was in NJ, so the company sent me W2's for Federal, Michigan, NJ, NY, and a city/local thing for NYC. What's the best way for me to file for everything other than federal? I already completed my federal return using TurboTax but I have no clue how to approach everything else, or how to tell if it's even worth it to file for some of them. Also, when I file for Michigan, they gave me an option for a credit from my work outside the state. Am I supposed to do this if I file my other state returns?
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Feb 2, 2011 23:31
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neonnoodle posted:OK, thanks. Although I wonder why they would prefer to pay me more than to pay the payroll taxes? Seems like the same amount of money either way. There are also benefits, worker's comp, unemployment insurance, etc. to factor in.
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Feb 3, 2011 00:13
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sheri posted:You have to pay 15.30% in payroll taxes on that money (I believe). Are you making 15.3% more?
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Feb 3, 2011 00:47
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Small White Dragon posted:It would need to be 7.65% more, actually. As a normal employee, you pay half of the 15.3% and your employer pays the other half. D'oh! You're right. I just doubled 7.65%, forgetting he was already paying that. Now I feel sheepish. Anyway, so you are paying almost 8% more in taxes. I hope you are making at least that much more.
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Feb 3, 2011 02:43
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Disregard! I found a flaw in my spreadsheet.
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Feb 3, 2011 03:56
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I put my 1098-T in and my return skyrockets to "you're doing this wrong" levels. My question is about the time frame for this. I completed a certificate in 2002. 1 year of full time student at an unaccredited trade school. I started going back to school part time, except for one semester 04-06, stopped going until 2009 when I went back full time for the fall semester and then in 2010 the spring for the semester. So I just finished up my AA in 2010. Can I still claim this? I've been going since 2004 with one year of prior schooling. But I just now finished enough credits to get my 2 year AA degree and was full time for the last 2 semesters. I think I'm going to hire someone for this, but anyone have an answer for me?
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Feb 3, 2011 04:15
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Kageneko posted:I put my 1098-T in and my return skyrockets to "you're doing this wrong" levels. Nothing prior to 2010 matters for this purpose. What does your 1098-T say for tuition and scholarships? If you paid tuition for an accredited school, full time, you are probably eligible for either one of the education credits or for a tuition and fees deduction (up to 4000) which would definitely bump your return up especially if you didn't have much taxable income.
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Feb 3, 2011 05:12
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kaishek posted:Nothing prior to 2010 matters for this purpose. What does your 1098-T say for tuition and scholarships? If you paid tuition for an accredited school, full time, you are probably eligible for either one of the education credits or for a tuition and fees deduction (up to 4000) which would definitely bump your return up especially if you didn't have much taxable income. Thanks for the response. Here's from my 1098-T: 2 Amounts Billed for qualified tuition and related expenses 2,358.00 5 Scholarships or Grants 966.00 Entering this information takes the return from 1447, which is about normal for me, to 3537, which is why I'm so suspicious. According to H&R block it's even okay if I paid for it with a financial aid loan. I'm gonna try to schedule an appointment tomorrow. If this is correct, then I may have filed 2009 incorrectly as well.
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Feb 3, 2011 05:54
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So, I'm trying to file for Head of Household this year. My Mom lives with me and doesn't work, I take care of rent, utilities and all that jazz for the 2 of us. Obviously I'd like to claim her as a dependent, but she gets a check from the government, but I'm not sure if it's exempt or not because of the nature of it. Essentially, it's a portion of my Dad's retirement he gets from the Military that's being garnished from him to pay her $717.00 a month. It was a court ordered garnishment as my parents are legally separated for 12+ years. What are my options?
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Feb 3, 2011 19:16
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8-bit Miniboss posted:So, I'm trying to file for Head of Household this year. My Mom lives with me and doesn't work, I take care of rent, utilities and all that jazz for the 2 of us. Obviously I'd like to claim her as a dependent, but she gets a check from the government, but I'm not sure if it's exempt or not because of the nature of it. Retirement pay is taxable income, and since she will receive more than $3,650 for the year ($717 x 12 = $8,604) she cannot be claimed as your dependent. Unfortunately, if she is not your dependent then she is not a qualifying relative and you cannot claim HoH filing status.
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Feb 3, 2011 20:59
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Furu, does it matter if the pension is part of the veterans' benefits system? I know nothing about veterans' benefits, do you know if their retirement packages get differential tax treatment?
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Feb 3, 2011 21:04
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entris posted:Furu, does it matter if the pension is part of the veterans' benefits system? I know nothing about veterans' benefits, do you know if their retirement packages get differential tax treatment? VA disability payments are not taxable, but their retirement pensions should be taxed like any other income.
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Feb 3, 2011 21:13
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Kageneko posted:Thanks for the response. Here's from my 1098-T: a)gently caress you for getting an enormous refund b)you're probably qualifying for something like the american opportunity credit. someone will have to look at the specific numbers but I would say that it doesn't seem entirely unreasonable - it would reduce the amount you are taxed on, plus give you a partially refundable credit. c)it is OK if you pay it with loans because hey, you have to pay that money back eventually. it's your money. d)you might not have to hire someone. If you've entered all this correctly, and HR block gives you audit protection, then just go for it. I am not a professional, I've just read the bits on education credits a lot.
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Feb 3, 2011 21:47
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furushotakeru posted:Retirement pay is taxable income, and since she will receive more than $3,650 for the year ($717 x 12 = $8,604) she cannot be claimed as your dependent. Unfortunately, if she is not your dependent then she is not a qualifying relative and you cannot claim HoH filing status.  Good bye $5,000 refund. Hello $300 refund.  Thanks.
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Feb 3, 2011 22:02
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hypersober posted:My cousin and his fiance have a child together. Since they aren't married, Mary receives government grants for school as a single parent. I believe the grant is nontaxable, correct? Does it need to be reported when she files her tax returns? I don't believe she's received any form or statement. If it's paid directly to school, then no. If it is some type of support program specific to being a single mother, she is taxed on whatever is used to pay for room/board, living expenses, i.e. whatever is not used for tuition, books, needed supplies.
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Feb 3, 2011 23:01
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Are stafford loans eligible for the higher education credit? I took out a stafford loan to pay for a semester of grad school this year; can I still claim the credit on that tuition? Additionally, since it's a loan instead of a scholarship/ grant, I won't have to declare it as taxable income, right?
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Feb 4, 2011 01:57
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BananaClip posted:Are stafford loans eligible for the higher education credit? I took out a stafford loan to pay for a semester of grad school this year; can I still claim the credit on that tuition? Additionally, since it's a loan instead of a scholarship/ grant, I won't have to declare it as taxable income, right? Yes, they count toward education credits as long as you are claiming yourself. They are paid directly to the school so they are not taxable income.
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Feb 4, 2011 02:24
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Ok, good. The loan was more than the tuition, though and also ended up covering non-school expenses, but that part still isn't taxable, right?
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Feb 4, 2011 02:28
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BananaClip posted:Ok, good. The loan was more than the tuition, though and also ended up covering non-school expenses, but that part still isn't taxable, right? Just verified that they still would not be taxable, even if used for living expenses
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Feb 4, 2011 02:34
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Awesome! Thanks for the help.
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Feb 4, 2011 02:36
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Zeta Taskforce posted:If it's paid directly to school, then no. If it is some type of support program specific to being a single mother, she is taxed on whatever is used to pay for room/board, living expenses, i.e. whatever is not used for tuition, books, needed supplies. Thanks!
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Feb 4, 2011 05:31
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I have a simple question for you guys. I normally use a tax guy to do my taxes but I moved this year and can't use him any more. I am wondering if you guys would recommend TurboTax or H&R block(person) with the following: I graduated college this year (I think I will get College Hope Credit) I have school loans I rent I need to file in 2 states (PA and NY) I don't feel comfortable at all doing them on my own.
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Feb 4, 2011 08:24
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Why can't you use your preparer any more? I have about 100 goon clients all over the country. Distance is hardly a limiting factor these days.
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Feb 4, 2011 08:27
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furushotakeru posted:Why can't you use your preparer any more? I have about 100 goon clients all over the country. Distance is hardly a limiting factor these days. The dude is really old and only accepts people that walk in (I discussed it with him before)
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Feb 4, 2011 08:32
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Dbhjed posted:The dude is really old and only accepts people that walk in (I discussed it with him before) Oh OK, the way you said it earlier made it sound more like you thought you couldn't use him any more because you had moved. Turbo tax does not seem to be a good option for you since you say you are not comfortable at all handling your taxes yourself, and this is exactly what you would be doing with TT or its like. HRB might be OK for you but it can be extremely hit or miss depending on which office you go to and who you end up working with.
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Feb 4, 2011 09:00
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furushotakeru posted:Oh OK, the way you said it earlier made it sound more like you thought you couldn't use him any more because you had moved. Sorry about that. You said you have goon clients? Do you take on more? How much would it cost for you to do it? If you do how do you accept documents? Do you e-file? Do you feel comfortable with the items previously mentioned?
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Feb 4, 2011 09:04
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Dbhjed posted:Sorry about that. I have a thread set up in SA Mart. I am sure the folks in this thread would prefer we not clutter it up with business. But yes I can certainly help you with your return.
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Feb 4, 2011 16:57
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I have an inherited annuity question. Mom buys an annuity with unqualified funds (i.e., post tax dollars) for $26,000. Value goes up to $44,000 - she takes no distributions, she then rolls it over to another annuity (a 1035 rollover or something?). The value drops to $39,000, but then she dies, having taken no distributions, and the guaranteed death benefit is $45,000 - so $45,000 gets paid out equally among me and two other siblings. I just got a 1099-R showing $15,000 of taxable income. Shouldn't my taxable income be limited to her gain over basis? from my simple calculations, her basis was $26,000 (since she took no distributions), so the gain is $19,000 - so my taxable income should be about $6,333 - not $15,000 - right? I know that basis doesn't step up because its IRD - but I still get the benefit of her carryover basis. Unless there is some crazy tax rule I am missing, I think the annuity company made a mistake on the 1099. Or is there a chance my siblings got tax free income instead of the taxable income being allocated evenly - e.g., I received $15,000 of taxable income, sibling #2 received $4,000 of taxable income and $11,000 of non-tax income and sibling #3 received $15,000 non-tax?
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Feb 4, 2011 17:46
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Any unrecaptured basis in an annuity is generally deducted on the decedent's final return. I do not think the basis carries over to the beneficiaries, but I am not positive. I am sure someone else will correct me if I am wrong.
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Feb 4, 2011 18:00
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furushotakeru posted:Any unrecaptured basis in an annuity is generally deducted on the decedent's final return. I do not think the basis carries over to the beneficiaries, but I am not positive. I am sure someone else will correct me if I am wrong. Thanks for taking a stab at it. So, with the understanding that you are not positive about it, that means that the basis is deducted on the final return of the decedent, and the income passes to the beneficiary as IRD?
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Feb 4, 2011 18:11
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Four Finger Wu posted:Thanks for taking a stab at it. So, with the understanding that you are not positive about it, that means that the basis is deducted on the final return of the decedent, and the income passes to the beneficiary as IRD? IRD is income paid after death that is taxable to the decedent, and would be reported on the decedent's final 1040. The income from the annuity would be taxed to the beneficiaries as ordinary income.
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Feb 4, 2011 20:17
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furushotakeru posted:Any unrecaptured basis in an annuity is generally deducted on the decedent's final return. I do not think the basis carries over to the beneficiaries, but I am not positive. I am sure someone else will correct me if I am wrong. Try IRC 72(b)(3)(A).
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Feb 4, 2011 20:49
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Quit making me look up stuff  If you agree with me just say so! 
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Feb 4, 2011 22:24
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furushotakeru posted:Quit making me look up stuff That wasn't for you, that was for chuckles up above to look up and figure out. The reason the 1099-R says $15,000 is that is 1/3 of the $45,000 distributed, nothing to do with the basis from his mom.
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Feb 5, 2011 00:40
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AbbiTheDog posted:That wasn't for you, that was for chuckles up above to look up and figure out. The reason the 1099-R says $15,000 is that is 1/3 of the $45,000 distributed, nothing to do with the basis from his mom. But in this case I am paying tax on IRD - so shouldn't I get the benefit of her basis? Or are you saying that the decedent gets the deduction for the basis relating to the IRD, yet the IRD passed on to me? Upon further internet research I think my situation is the same as rev. ruling 2005-30 except that since my mom's annuity was purchased with 1035 rollover funds, her basis was lower than the one in the RR (http://www.irs.gov/irb/2005-20_IRB/ar06.html). I think that means the insurance company messed up. Does this make sense?
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Feb 5, 2011 05:37
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This year, I set up multiple savings accounts set up with ING Direct, for the purposes of having different savings buckets for things like home repair/improvement, vacations, etc. Do I need to enter a separate 1099-INT for each account number, or can I just add everything together and file one? Or does it even matter, since it would just come out in the wash on the 1040 anyway?
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Feb 5, 2011 07:28
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"[panic posted:"] It all comes on a lump-sum on the 1040, but I would recommend a different line for each 1099-INT so you can make sure you have them all next year. Use "ING - #1234" for your descriptions, and use the last four digits of your account. I do this in my practice so we can tell if a client has brought us everything. Also, if you get an IRS matching notice for some reason, it makes it easier to figure out where they've coming from.
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Feb 5, 2011 17:45
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Gonna go ahead and sticky this since for the next month or so to remind me that I need to file my taxes  Thanks to everyone answering questions - you all are crazy helpful!
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Feb 5, 2011 20:12
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UncleGuito posted:So in 2010, I worked part time in Michigan (my resident state) and also had an internship in NYC. Training for the internship was in NJ, so the company sent me W2's for Federal, Michigan, NJ, NY, and a city/local thing for NYC. What's the best way for me to file for everything other than federal? I already completed my federal return using TurboTax but I have no clue how to approach everything else, or how to tell if it's even worth it to file for some of them. Anyone?
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Feb 5, 2011 21:41
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