2007 Tax Returns

[nathan]

I just finished my taxes. Can anyone else say the same?

A couple of things went in my favor. I didn't start my job until late February which made my income low enough to take advantage of the student loan interest deduction. I also had one paycheck that I normally would have gotten 12/28 pushed to 01/01 which increased the % of the student loan interest I could deduct.

It was also nice to write off moving expenses. 20 cents per mile isn't bad.

My refund will be $843.90. The main reason for this is that I got a huge bonus combined with a regular paycheck while only claiming one allowance. Because of IRS regulations payroll treats the check like you make that every pay period. I didn't understand those rules, so I've been claiming 3 exceptions most of the year to narrow the gap as much as possible.

 

[abomb]

Getting my stuff together.

The beauty of working in Payroll is getting your W-2 data on 1/1.

 

[Linderbee]

I started mine. I'm so royally screwed. I made just over $41k last year as an independent contractor. So no taxes were taken out, and given that I'm not making a crapload of money (good, yes, crapload, no), I figured I'd be okay. I made about the same last year & got ~$500 back.

I guess self-employed people are taxed higher? I can't quite figure out what the issue is, but it is looking like I'm going to owe $4k.

This includes me filing still as "married filing jointly" so that I can take my ex as a deduction, since we were still married at the beginning of last year. Not even sure if I can do that, but we'll see.

This sucks in astronomical proportions for me.

 

[Heucrazy]

I haven't even gotten my W-2 yet.

 

[AzCards21]

I started mine. I'm so royally screwed. I made just over $41k last year as an independent contractor. So no taxes were taken out, and given that I'm not making a crapload of money (good, yes, crapload, no), I figured I'd be okay. I made about the same last year & got ~$500 back.

I guess self-employed people are taxed higher? I can't quite figure out what the issue is, but it is looking like I'm going to owe $4k.

This includes me filing still as "married filing jointly" so that I can take my ex as a deduction, since we were still married at the beginning of last year. Not even sure if I can do that, but we'll see.

This sucks in astronomical proportions for me.

You may want to get some help with your taxes if this is your first go around as a contractor. A lot of loop holes close up when self employed but others open that you can take advantage of.

Not something I would recommend just winding your way through on your own.

 

[nathan]

Just did a rough draft of the state taxes. There's a "consumer's use tax" that they came up with to close the online sales tax loophole. Truth be told I feel like ignoring it. If I don't pay that tax I'll get $170 back. If I pay that stupid tax I'd probably get something like $100 back.

 

[Linderbee]

You may want to get some help with your taxes if this is your first go around as a contractor. A lot of loop holes close up when self employed but others open that you can take advantage of.

Not something I would recommend just winding your way through on your own.

Yeah, I'm going to have to. There's just virtually no business related expenses I can take advantage of. My boss bought my computer & printer; he pays for the ink, etc., I don't drive anywhere, he pays for the internet & phone (as well as my cable ) The only think I did throw in was the size of my office/utility bills & such...

I still think in the end I will be screwed. I have a friend that is a CPA...I'll probably pick his brain or see what he'll charge to help me with this.

 

[thirty-two]

I haven't even gotten my W-2 yet.

 

[Linderbee]

I haven't gotten my 1099 yet, either, but I know what I was paid, since there were no variables & no taxes.

 

[Shane]

That sux linda. Sorry to hear it. Make dreamcast pay

 

[dreamcastrocks]

That sux linda. Sorry to hear it. Make dreamcast pay

Ha!

I'll likely be getting the same back that she owes. Unfortunately (and fortunately) I have the IRS taking all of it to pay for my student loans. At this rate, it should be paid off in 2 years.

 

[Jersey Girl]

I haven't started mine, but am slightly concerned. I worked for a few months as an independent contractor and have to pay tax on that income. Plus, as a mystery shopper, I have to pay tax on that income as well.

The days of being a homeowner and getting a decent return are over for me ... at least for now.

The good news (if you can call it that) is I make absolute CRAP for money last year. (I think it's the least I've made since I graduated from college in 1994.) That should put me in a lower tax bracket.

 

[jw7]

The only think I did throw in was the size of my office/utility bills & such...

Be VERY careful with this. Taking the home office deduction has a notorious reputation for raising a red flag for triggering audits. The rules are very strict - basically, that part of your home needs to be exclusively used to conduct business and nothing else. Do a google on "home office deduction".

Believe me, you don't want to deal with the IRS. I've had my returns disputed twice, and with the IRS, you are guilty until proven innocent. It is not fun.

I agree with AZCards21, get a tax pro at least for the first year in this situation so you know what is allowed or not.

 

[Linderbee]

Be VERY careful with this. Taking the home office deduction has a notorious reputation for raising a red flag for triggering audits. The rules are very strict - basically, that part of your home needs to be exclusively used to conduct business and nothing else. Do a google on "home office deduction".

Believe me, you don't want to deal with the IRS. I've had my returns disputed twice, and with the IRS, you are guilty until proven innocent. It is not fun.

I agree with AZCards21, get a tax pro at least for the first year in this situation so you know what is allowed or not.

I realize that; the good part is that I don't live there anymore They can't prove one way or another how much space I used, and considering the house was relatively small, the amount I'm saying I used is minimal.

 

[Linderbee]

That sux linda. Sorry to hear it. Make dreamcast pay

lol...Good idea.

 

[jw7]

They can't prove one way or another how much space I used

Which is fine. Just sayin', if you take that deduction, your return has a much greater chance of being flagged for audit.

 

[Jersey Girl]

Which is fine. Just sayin', if you take that deduction, your return has a much greater chance of being flagged for audit.

Yup, yup.

I always try to be very careful when I claim my expenses as an independent contractor. It's true that they can't prove that you didn't use what you say you used; but, if you get audited, you better be prepared to show some kind of proof that you did indeed use what you claim.

 

[Linderbee]

Yup, yup.

I always try to be very careful when I claim my expenses as an independent contractor. It's true that they can't prove that you didn't use what you say you used; but, if you get audited, you better be prepared to show some kind of proof that you did indeed use what you claim.

Yeah...I'm not overly worried; like I said, I'm not claiming practically anything else, since I didn't pay for any of my office equipment, etc. (no depreciation on anything), so it's not like I've got a ton of stuff to prove even if I do have to.

 

[Card Trader]

I started mine. I'm so royally screwed. I made just over $41k last year as an independent contractor. So no taxes were taken out, and given that I'm not making a crapload of money (good, yes, crapload, no), I figured I'd be okay. I made about the same last year & got ~$500 back.

I guess self-employed people are taxed higher? I can't quite figure out what the issue is, but it is looking like I'm going to owe $4k.

This includes me filing still as "married filing jointly" so that I can take my ex as a deduction, since we were still married at the beginning of last year. Not even sure if I can do that, but we'll see.

This sucks in astronomical proportions for me.

Ouch....sorry to hear that

 

[Linderbee]

Ouch....sorry to hear that

Thanks. Sucks big time.

 

[Scott MS]

I just finished my taxes. Can anyone else say the same?

A couple of things went in my favor. I didn't start my job until late February which made my income low enough to take advantage of the student loan interest deduction. I also had one paycheck that I normally would have gotten 12/28 pushed to 01/01 which increased the % of the student loan interest I could deduct.

It was also nice to write off moving expenses. 20 cents per mile isn't bad.

My refund will be $843.90. The main reason for this is that I got a huge bonus combined with a regular paycheck while only claiming one allowance. Because of IRS regulations payroll treats the check like you make that every pay period. I didn't understand those rules, so I've been claiming 3 exceptions most of the year to narrow the gap as much as possible.

Yeah, I finished mine on Monday. I am self-employed so I already have most of the data. I completed mine so I can see how much more I owe this year.

 

[Scott MS]

Yeah, I'm going to have to. There's just virtually no business related expenses I can take advantage of. My boss bought my computer & printer; he pays for the ink, etc., I don't drive anywhere, he pays for the internet & phone (as well as my cable ) The only think I did throw in was the size of my office/utility bills & such...

I still think in the end I will be screwed. I have a friend that is a CPA...I'll probably pick his brain or see what he'll charge to help me with this.

Write off the use of your home office as a percentage of your home. You can write off the percentage of your home improvements and utilities.

 

[Linderbee]

Write off the use of your home office as a percentage of your home. You can write off the percentage of your home improvements and utilities.

yep, did that.

 

[MigratingOsprey]

yeah - you need to be careful

i recommend spending a good portion of money on a tax professional so you can file the most appropriate return and take all the deductions you are entitled to

because god forbid you may mistate the amount a little bit given the impossible to understand nature of the tax code - in which case the gov't will send their highly paid audit team to torture you for hours on end, put you through additional expense and kill your production time as an IC

at the end of this lengthy process they may determine you owe a few hundred dollars more

not that I hate the IRS and income taxes or anything.........

 

[UncleChris]

I started mine. I'm so royally screwed. I made just over $41k last year as an independent contractor. So no taxes were taken out, and given that I'm not making a crapload of money (good, yes, crapload, no), I figured I'd be okay. I made about the same last year & got ~$500 back.

I guess self-employed people are taxed higher? I can't quite figure out what the issue is, but it is looking like I'm going to owe $4k.

This includes me filing still as "married filing jointly" so that I can take my ex as a deduction, since we were still married at the beginning of last year. Not even sure if I can do that, but we'll see.

This sucks in astronomical proportions for me.

Where you really get hammered is self employment tax, which is in effect, social security tax. Instead of 7.65%, it's about 12.5%.

BTW.... getting a CPA is a very wise choice.