5th Annual Tax Thread - 2007

[EagleKeeper]

Originally posted by: SarcasticDwarf
For some reason I am drawing a total blank on this one:

I have income from both a normal W2 job as well as some from a small business organized as a sole proprietership. I have never had the SP show a profit (do I even need to?). This year is the first that it probably will. Is this treated the same way as income from my W2 job?

Meaning: If I bring in say $10k from the W2 where taxes were withheld (I get a refund) and 1k from the sp, will it be taxed at the normal say 15% with the taxes pulled from my W2 job refund?

Make sure that you expense on a Schedule C anything directly related or in support of to the small business.
Any net loss that you have can offset the W2 income.

Tax S/W will handle the self employment tax - required when showing a profit on the Schedule SE.

 

[jumpr]

I received about $19,000 from my employer in 2007 for tuition repayment. This amount showed up in my regular paycheck as a lump sum back in September. Taxes were taken out on the top end, making the actual cash amount around $13,000 after taxes. I'd like to get as many of those tax $$s back as possible - is there any way to do so?

 

[CPA]

Originally posted by: jumpr
I received about $19,000 from my employer in 2007 for tuition repayment. This amount showed up in my regular paycheck as a lump sum back in September. Taxes were taken out on the top end, making the actual cash amount around $13,000 after taxes. I'd like to get as many of those tax $$s back as possible - is there any way to do so?

Was the eduction necessary for you job?

 

[JEDI]

discovered recently that i still own Lucent stock that i bought back in the 20th century. :Q i think it was about 100 shares at ~$50/share.

lucent had since spun off 2 divisions, then merged with Alcatel. (it's not even the same stock symbol any more.)

I think it's worth about $300 now

How do i determine my cost basis if i sold it all at once (avaya/2nd company i forgot name of/alcatel)?

 

[negativedecibel]

Ok, got question...

I am a fulltime college student. (My wife works full time.) I recieve federal pell grants that pay for a portion of my tuition (but not all of it.) I still pay out of my pocket (or my wife's pockets to be exact) for the remainder of my tuition that is not covered by the pell grant and my books and such. Do I claim the total cost of tuition and my books, or just what I have to pay out of my pocket?

 

[EagleKeeper]

Originally posted by: JEDI
discovered recently that i still own Lucent stock that i bought back in the 20th century. :Q i think it was about 100 shares at ~$50/share.

lucent had since spun off 2 divisions, then merged with Alcatel. (it's not even the same stock symbol any more.)

I think it's worth about $300 now

How do i determine my cost basis if i sold it all at once (avaya/2nd company i forgot name of/alcatel)?

Cost basis is the value that you obtained it at.

Profit is the adjusted value of the share now when you sell it less the cost basis and fees.

One way to determine the conversion is to determine what the total value of all your shares are now and the actual number of shares (due to possible splits).

Then determine what the price was for the number of shares when you obtained the stock.

From that you can determine the percentage of shares and the gain per share.
The gain per share becomes the profit that you end up reporting on the proper Schedule.

 

[EagleKeeper]

Originally posted by: negativedecibel
Ok, got question...

I am a fulltime college student. (My wife works full time.) I recieve federal pell grants that pay for a portion of my tuition (but not all of it.) I still pay out of my pocket (or my wife's pockets to be exact) for the remainder of my tuition that is not covered by the pell grant and my books and such. Do I claim the total cost of tuition and my books, or just what I have to pay out of my pocket?

The tuition that is paid out of your own pocket is what you use for the Hope/LLC or Educational Line item.

If you itemize and file joint, you MAY be able to declare the books on the Form 2106.

 

[EagleKeeper]

Originally posted by: jumpr
I received about $19,000 from my employer in 2007 for tuition repayment. This amount showed up in my regular paycheck as a lump sum back in September. Taxes were taken out on the top end, making the actual cash amount around $13,000 after taxes. I'd like to get as many of those tax $$s back as possible - is there any way to do so?

You will need to use the Schedule A and the Form 2106.
There may be a potential for a loss of 2% due to the 2106 rules.

 

[Jumpem]

I sold my truck and the seller wired my bank $17.5k, which I then wrote a check for that amount to my lien holder to pay off. Am I now going to have to pay taxes on that?

Thanks accounting crew!

 

[EagleKeeper]

Originally posted by: Jumpem
I sold my truck and the seller wired my bank $17.5k, which I then wrote a check for that amount to my lien holder to pay off. Am I now going to have to pay taxes on that?

Thanks accounting crew!

Why would you think so?

Unless you made a profit on the sale.

 

[Jumpem]

Originally posted by: EagleKeeper

Originally posted by: Jumpem
I sold my truck and the seller wired my bank $17.5k, which I then wrote a check for that amount to my lien holder to pay off. Am I now going to have to pay taxes on that?

Thanks accounting crew!

Why would you think so?

Unless you made a profit on the sale.

Just reading something else online about banks reporting any deposits over $10k.

 

[Analog]

Is there any way to deduct union dues from taxes? Even partially?

 

[EagleKeeper]

Originally posted by: Analog
Is there any way to deduct union dues from taxes? Even partially?

Form 2106/Schedule A

 

[Analog]

Originally posted by: EagleKeeper

Originally posted by: Analog
Is there any way to deduct union dues from taxes? Even partially?

Form 2106/Schedule A

Okay, that form seems to be for employee business expenses. Looks more like travel type expenses - I didn't see anything there for union dues. Are you sure that's the right one?

 

[EagleKeeper]

Originally posted by: Analog

Originally posted by: EagleKeeper

Originally posted by: Analog
Is there any way to deduct union dues from taxes? Even partially?

Form 2106/Schedule A

Okay, that form seems to be for employee business expenses. Looks more like travel type expenses - I didn't see anything there for union dues. Are you sure that's the right one?

Pub 529

Page 3

 

[jamison]

Is there a minimum amount earned from your employer (say $12,000), where you would NOT have to file for the year?

PS - I used H&R's quick calculator and put in my (low, part time) income amount along with my school expenses and it actually said I would be due a refund; does that sound right?

 

[EagleKeeper]

The minimum income threashold where Federal Income Taxes apply is usually around 8K.

Above that some tax woiuld be due. However, the income level above 8K could be reduced by certain credits.

If you are due a refund, you do not have to file. Uncle has no problem with free money, just like you have none.

 

[1000000]

My parent's can claim the EIC with qualifying child but does that mean I must be their dependent and file as such?

 

[spidey07]

Charity - do all donations have to occur in calendar year 2007 to be deducted? Specifically clothes. Is there any way to make a donation say this January and apply it to 2007 individual return?

 

[jumpr]

Originally posted by: CPA

Originally posted by: jumpr
I received about $19,000 from my employer in 2007 for tuition repayment. This amount showed up in my regular paycheck as a lump sum back in September. Taxes were taken out on the top end, making the actual cash amount around $13,000 after taxes. I'd like to get as many of those tax $$s back as possible - is there any way to do so?

Was the eduction necessary for you job?

The education (undergrad degree) was completed before I started work at my current employer, and an undergraduate degree is required in my line of work - so yes, I would say it was necessary for the job.

 

[EagleKeeper]

Originally posted by: 1000000
My parent's can claim the EIC with qualifying child but does that mean I must be their dependent and file as such?

If you are the qualifying child, then you must file as an dependant.

 

[EagleKeeper]

Originally posted by: spidey07
Charity - do all donations have to occur in calendar year 2007 to be deducted? Specifically clothes. Is there any way to make a donation say this January and apply it to 2007 individual return?

If you donate in '08, it is for '08.

Procrastination does not count.

 

[EagleKeeper]

Originally posted by: jumpr

Originally posted by: CPA

Originally posted by: jumpr
I received about $19,000 from my employer in 2007 for tuition repayment. This amount showed up in my regular paycheck as a lump sum back in September. Taxes were taken out on the top end, making the actual cash amount around $13,000 after taxes. I'd like to get as many of those tax $$s back as possible - is there any way to do so?

Was the eduction necessary for you job?

The education (undergrad degree) was completed before I started work at my current employer, and an undergraduate degree is required in my line of work - so yes, I would say it was necessary for the job.

You can file the Scheudle C and the Form 2106 classifying the educational costs as an business expense.
You will have to indicate the amount you paid and the amount the employer returned to you. Books and other costs can also be deducted there. Mileage to/from school can also be deductible.

If you use the LLC, you are only allowed 20% of the overall tuition and no books.

The IRS rules forced the taxes to be withheld - You may be able to get some of those back when using the Schedule A.
If you can not use the Schedule A, you are SOL.
Contact your Congressional Representives to complain.

 

[CPA]

Originally posted by: Jumpem

Originally posted by: EagleKeeper

Originally posted by: Jumpem
I sold my truck and the seller wired my bank $17.5k, which I then wrote a check for that amount to my lien holder to pay off. Am I now going to have to pay taxes on that?

Thanks accounting crew!

Why would you think so?

Unless you made a profit on the sale.

Just reading something else online about banks reporting any deposits over $10k.

That's more for drug running and things of that sort. And usually it's for cash deposits only.

 

[Casawi]

I received moving expenses from my company about $1000. Do I need to do anything with that.

Thanks.