Monday, April 16, 2012

Do you have to do Taxes if you never had a job, and older than 18 years old?

If you didn't receive any income, you're not required to file. You may be required to file if you received any one of the following: W-2 from work, 1099 from self employment, interest or dividend income, had stock trades, received K-1s from Partnerships or S Corps.

How would i listed an inherited ranch that is rented out and paid taxes on in taxes?

You report the rental activity on a Schdeule "E" Form 1040.

Friday, April 13, 2012

Will being listed as a dependent on my parent's tax form decrease my tax return?

The IRS allows you a personal deduction against taxable income which you will lose if your parents claim you. The loss of the deduction will increase your tax and thereby reduce your refund.

If a family member pays me to do work for them, is it taxable?

A contractor reports self-employment income and expenses on a Schedule "C" Form 1040. That income includes money received from family members for contracting work performed.

Wednesday, April 11, 2012

Can you deduct travel expense for side work?

Commuting costs are not deductible; however, if your home office is your principal place of work traveling to other sites where you do business may be deductible. When deducting automobile expenses (Schedule C, Line 9) you can either take the standard mileage deductions or you can calculate actual expenses and depreciation and multiply that by your business use percentage. Either way you need to keep accurate records of your business vehicle use. Parking fees and tolls are added to these figures before entering them on Line 9. Depending on your particular situation you may need to file a Form 4562. 

Sunday, April 8, 2012

Quarterly & Estimated Tax?

2012 Form 1040-ES Estimated Tax for Individuals
You can pay your estimated tax for 2012 in four equal amounts by the dates shown below:
1st payment . . April 17, 2012
2nd payment .. June 15, 2012
3rd payment . . Sept. 17, 2012
4th payment . . Jan. 15, 2013
You must mail the estimated tax payments to the IRS at a special address designated by the IRS depending on the state you live in.
Estimated tax is the method used to pay tax on income that is not subject to withholding (for example, earnings from self-employment, interest, dividends, rents, alimony, etc.). In addition, if you do not elect voluntary withholding, you should make estimated tax payments on other taxable income, such as unemployment compensation and the taxable part of your social security benefits.
In most cases, you must pay estimated tax for 2012 if both of the following apply:
1. You expect to owe at least $1,000 in tax for 2012, after subtracting your withholding and refundable credits.
2. You expect your withholding and refundable credits to be less than the smaller of:
a. 90% of the tax to be shown on your 2012 tax return, or
b. 100% of the tax shown on your 2011 tax return.

Saturday, April 7, 2012

Total number of allowances you are claiming? help? I have two kids and one on the way my fiancee doesn't work?

The bookkeeper or office manager at work will ask you to fill out a W-4 form which reflects how many dependents you have and your marital status. You are married and have three children. I suggest you file like that. You will not owe any taxes for 2012 and will receive a nice refund in 2013 that will come in handy. It's better to receive a nice refund the following year then to receive an extra $25 in the bi-weekly paycheck.

I have just started a pooper scoop business in NY state. It has exploded! Do I have to collectt tax for Taxes?

As a slogan you can use: Don't get into a loop, let me scoop your poop!
You need to register for a sales tax number with the state and collect sales tax. Services are taxable in NYS.  Here's the link: http://www.tax.ny.gov/pubs_and_bulls/tg_…

Im suposed to get a refund but i can`t prove my income?

Of course. The IRS has no reason not to believe you. Try to reconstruct the income you received. In a calendar agenda try to do it by date. Each time you believe you babysat, put down the approximate hours and the time, from when to when. At least you have something to show the IRS if you get audited. The refund is yours, don't lose it for lack of responsibility on the part of the people who hired you.

Friday, April 6, 2012

What taxes get taken out of paycheck?

Make sure you fill out a W-4 form with your employer prior to employment. Your employer will deduct the following taxes from your paycheck based on your input on the form:

1. Federal withholding tax
2. State withholding tax
3. Social Security
4. Medicare