Saturday, April 7, 2012

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

College student filed federal taxes as an independent but is a dependent?

You have to amend his return. Amend it before you file your return. His information is in the IRS computers and your return will get kicked out for declaring him, he already declared himself on his return. Be careful and be patient. Don't ever ask the IRS to prepare anything on your behalf. Go to a tax professional, you'll get the best advise possible. Good luck

If I paid for a medical expense in 2011 and it's unexpectedly refunded in 2012, can I still deduct it on?

Do not deduct medical expenses of any kind for which you received a reimbursement. Similarly, if you receive a reimbursement from insurance in a subsequent year for an expense previously deducted, the reimbursement is included in your adjusted gross income in the year the reimbursement was received. Include the reimbursement on line 10 of Form 1040.

Thursday, April 5, 2012

Do doctors lose money paying taxes?

Live your dream. Sports medicine is an excellent profession. Even after taxes you'll earn much more then the average person. Your father should be proud of you that you have such high hopes. A Doctor is the highest profession there is. Good luck.

I am having to go back and file my taxes for years 2007?

If 1099s were issued to your boyfriend, they were also issued to the IRS. You have a chance to deduct expenses against that 1099 income to reduce your tax liability. You have to file a return to show the IRS what those expenses are. If you ask the IRS to calculate your tax, they will do so based on information they received from outside sources, such as 1099s and will add on penalty and interest. 1099s belong on a Schedule "C". Try to deduct expenses. Keep receipts in case you get audited.

Can I get in trouble with the IRS for participating in a section 79 plan?

You will not get in trouble. An Approved I.R.S. Section 79 Plan is 100% legal and offers great retirement planning opportunities for successful business owners of both large and small companies.

Wednesday, April 4, 2012

Tax benefits of turning mowing hobby into a business?

As his "little side job" means you have to declare the income on a Schedule "C" and you may deduct business expenses to arrive at the net profit. The net profit may be subject to social security tax and gets carried to your 1040 which will probably increase your federal tax liability. Your husband mows laws to earn extra money so I assume he wouldn't run it at a loss.

Buying a $25k car with all cash?

Very unrealistic your uncle has saved 25K+ on a salary of 19K. How does he live? If you're asking if it looks suspicious, you already know the answer.

If im leasing a small kitchen inside a Chevron do i need to pay taxes in TX?

You have income, you have to report it. Schedule "C" on your Form 1040. You can deduct your purchases and other expenses against the revenue you received to arrive at your net income. Keep good records and receipts in case you get audited.