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Your [Tax] Questions Here: 2016 Edition

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Posts

  • localh77localh77 Registered User regular
    Yeah, I would deduct any expenses you had as a result of doing Uber. Services fees, extra insurance, water for passengers, tolls, parking, really almost anything. Tickets are the main exception I can think of, those aren't deductible.

    You could see a professional, but I doubt there would be much savings, if any. I do taxes for a living (I have a few clients who did Uber), and I don't know anything about a new car credit.

  • cj iwakuracj iwakura The Rhythm Rogue The 25th WardRegistered User regular
    I did, and the default turned out better. Was also able to claim the loan interest, which helped.

    wJyG2Dm.png
    The world will once again become steeped in fog. Welcome To The 25区 | 人生を殺す
  • localh77localh77 Registered User regular
    When you say default, do you mean that the actual expense method (deducting gas, maintenance, insurance, depreciation, etc.) was more than the mileage deduction?

  • cj iwakuracj iwakura The Rhythm Rogue The 25th WardRegistered User regular
    localh77 wrote: »
    When you say default, do you mean that the actual expense method (deducting gas, maintenance, insurance, depreciation, etc.) was more than the mileage deduction?

    No, mileage came out cheaper. Maybe I didn't deduct properly.

    wJyG2Dm.png
    The world will once again become steeped in fog. Welcome To The 25区 | 人生を殺す
  • localh77localh77 Registered User regular
    Well, the only reason I ask is because there are a few different rules around using the actual expense method. The biggest is that you have to back out the personal portion.

    For example, if I spend $1000 on gas, $2000 on maintenance, etc. doing a job, but I only drove my car for business 25% of the time during that period, I should have to pro-rate all of those expenses accordingly (it's more complicated than that, but that's the idea).

    To answer your original question, though, it looks like the numbers make sense. Because of self-employment tax, you're going to pay a minimum of ~7.5% tax on earnings like that.

  • cj iwakuracj iwakura The Rhythm Rogue The 25th WardRegistered User regular
    localh77 wrote: »
    Well, the only reason I ask is because there are a few different rules around using the actual expense method. The biggest is that you have to back out the personal portion.

    For example, if I spend $1000 on gas, $2000 on maintenance, etc. doing a job, but I only drove my car for business 25% of the time during that period, I should have to pro-rate all of those expenses accordingly (it's more complicated than that, but that's the idea).

    To answer your original question, though, it looks like the numbers make sense. Because of self-employment tax, you're going to pay a minimum of ~7.5% tax on earnings like that.

    After the loan interest, it came out to $201, which I'm happy with.

    wJyG2Dm.png
    The world will once again become steeped in fog. Welcome To The 25区 | 人生を殺す
  • VishNubVishNub Registered User regular
    If I worked in two states this year (CA and TX). I only need to pay CA income tax on money earned in CA, right? TX has no income tax.

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  • localh77localh77 Registered User regular
    That's the gist of it, yeah. The calculation is usually a little more complicated. Effectively you calculate what the California tax would be on all of your income for the year, then prorate that based on what percentage of your income is from California. The software should handle all of that.

  • PaladinPaladin Registered User regular
    Things I wish I did

    kept track of all my parking fees
    drove from work site 1 to work site 2 more often
    kept receipts of all uniform purchases
    purchased software and office supplies for my job
    kept track of my auto registration fee
    made every lunch a business lunch and kept receipts from weekend dinners
    paid all into a traditional IRA instead of a Roth

    not have to pay 4x the max student loan interest deductible
    not use my health insurance at all
    not get a job on the side that just drove up my student loan payments and federal tax owed without helping monthly expenses at all

    Paying 600 bucks out of a credit card because 60% of my take home goes to student loans really hurts

    Marty: The future, it's where you're going?
    Doc: That's right, twenty five years into the future. I've always dreamed on seeing the future, looking beyond my years, seeing the progress of mankind. I'll also be able to see who wins the next twenty-five world series.
  • Magus`Magus` Registered User regular
    edited March 20
    So I'm using TaxAct and two issues I'm running into that I can't figure out.

    1) Fixed!
    2) Fixed!
    3) When I put in my 1095-A it's claiming all of the premium tax credits are in "excess" and I have to pay back $300 (limited by income).
    4) For anyone who has used the Credit Karma site - is it totally free or just the whole "the most basic is free but god help you if you have anything beyond a W2"?

    Magus` on
  • localh77localh77 Registered User regular
    For #3, there should be a form attached (8962) that calculates whether you didn't get enough credits yet (in which case you get more), or whether you took too much in advance payments and have to pay all (or some) back. I think it mainly comes down to what percentage of the federal poverty line your household income ended up being for the year.

    In a perfect world, the advance payments should balance the tax credit exactly, and you wouldn't owe anything. But if you estimated low when you did the initial insurance application, you could end up owing. And vice versa.

    It's complicated, for sure.

  • ShivahnShivahn Unaware of her barrel shifter privilege Eastern coastal temptressRegistered User regular
    I have a tax question, 2015 edition.

    Which is to say, in 2015 I was eligible for a big deduction for education (or rather, education tax credit - I got a 1098-T), and forgot to claim it. I recently learned that

    1) I actually get this (I was super surprised initially, because my tuition is remitted so I don't think about it much, but I keep forgetting that the situation's super complex), and

    2) You can amend taxes.

    As far as I can tell, I should be filling out a 1040X? Am I correct in this, or have I misunderstood something fiercely?

  • localh77localh77 Registered User regular
    Nope, that's the idea. Basically just create a new 1040, along with Form 8863, and attach both of those to a 1040X. It'll take the IRS a while to process (a couple of months), but then they should send you a refund check.

    davidsdurionstyrannusElvenshae
  • tyrannustyrannus Registered User regular
    edited April 13
    I remember having to paper file them and then showing them the stuff that changed. So the front pages on the old and new returns, and the additional forms.

    tyrannus on
  • bowenbowen How you doin'? Registered User regular
    Anyone have any idea what kind of tax gotchas I should keep in mind doing remote telecommute contracting for a company in California if I'm in NYS?

    Is there a best way I should go about this? (form an LLC and business deduct literally everything and give myself a salary?)

    Ladies.
  • TubeTube Administrator, ClubPA admin
    Does anyone in here pay tax in Canada? I have provincial tax questions.

  • DaimarDaimar A Million Feet Tall of Awesome Registered User regular
    Tube wrote: »
    Does anyone in here pay tax in Canada? I have provincial tax questions.

    I am an accountant, but have only done a few personal tax returns since getting out of public practice years ago so you can ask me. Long and the short of provincial taxes is the taxing province is determined by your province of residence at December 31 (or date you moved out of Canada if you weren't a resident at December 31), so regardless of which province you worked in to earn money you are taxed based on your province of residence.

    If that doesn't answer your question then ask away.

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  • TubeTube Administrator, ClubPA admin
    It's helpful information, thank you!

    My question is different however: I made a mistake on my tax return and included a sizable chunk of (salaried) income that I had already paid tax on (obviously I'll pay the full amount including overpayment anyway). Will the province notice this themselves since it's on my T4 and notify me, or do I need to call and make them aware of it? It's a pretty big chunk of change.

  • PsykomaPsykoma Registered User regular
    Make them aware of it, you can't trust that there will be a diligent worker there dedicated to making sure no-one overpays.

    Even if they do notice it, they will be exceedingly slow to correct it as it's a mistake in their favour.

  • DaimarDaimar A Million Feet Tall of Awesome Registered User regular
    Tube wrote: »
    It's helpful information, thank you!

    My question is different however: I made a mistake on my tax return and included a sizable chunk of (salaried) income that I had already paid tax on (obviously I'll pay the full amount including overpayment anyway). Will the province notice this themselves since it's on my T4 and notify me, or do I need to call and make them aware of it? It's a pretty big chunk of change.

    If you lived in Alberta or Quebec you should contact the province since they have their own taxation regime, any other province has their taxes handled by the Feds so if there is a change on Federal it automatically flows through to the provincial portion.

    steam_sig.png
  • TubeTube Administrator, ClubPA admin
    I'm in Quebec, so I'll have to call them. Calling Revenue Quebec is one of the most harrowing experiences known to man. I'm tempted to just let them keep the five thousand dollars.

    Thanks for the help!

  • PsykomaPsykoma Registered User regular
    You will probably have to refile your return, and I think in Quebec you need to mail in a re-file, it can't be done online.

  • TubeTube Administrator, ClubPA admin
    @psykoma and @Daimar just to give you the conclusion to this story, I held off on paying until RQ processed my return. They found the error and I saved five grand, which was a huge fucking relief. Thank you for all your help!

    CauldPsykomaTNTroopercerestyrannusElvenshaezepherin
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