It's Tee-AX Time! - Page 4

tpunx99GSX · 02-09-2011

Actually thats just for 2010. Still have the tax guy doing 2009 and have to send him my mileage records.
I had a lot of deductions being in IT we can claim home office, internet, power, cell phone etc.
The thing is, is that jessica didnt make shit last year staying home with adrien most of the year put us in a lower tax bracket, and only working half the year but taxed at a much higher tax bracket most the year.
My large W2 from my current job, they are taking around 20%, but i ended up in a 15% tax bracket or something like that. (which is the way i like it, government controlled savings account

)

Also you gotta look at a couple other points.
We have a 2 year old - thats $1000 minimum deduction
Obamas Stimulus - $800
Etc.

polishmafia · 02-09-2011

Quote:

Originally Posted by tpunx99GSX

I had a lot of deductions being in IT we can claim home office, internet, power, cell phone etc.

Tom, I know we've had our differences... but I pray you don't get audited. The actual rules state that if you have a desk, if you have a place in an office where you can sit your ass in every day, even if on call - None of that is deductible. Trust me, I've checked it every year for the last ten.

Take the actual written law and read it. Technically you can not deduct those things you mentioned.

tpunx99GSX · 02-13-2011

Quote:

Originally Posted by polishmafia

Tom, I know we've had our differences... but I pray you don't get audited. The actual rules state that if you have a desk, if you have a place in an office where you can sit your ass in every day, even if on call - None of that is deductible. Trust me, I've checked it every year for the last ten.

Take the actual written law and read it. Technically you can not deduct those things you mentioned.

The main thing that allowed me to do that is that we are claiming it under the 1090 that i was during the first part of the year. Basically that i was my own business (sub contractor), so therefore a portion of my primary residence could be written off as a deductable, along with a portion of my electricity, internet, phone, etc. All items i was paying as a part of business expense.

**Halon** · 02-13-2011

Quote:

Originally Posted by tpunx99GSX

The main thing that allowed me to do that is that we are claiming it under the 1090 that i was during the first part of the year. Basically that i was my own business (sub contractor), so therefore a portion of my primary residence could be written off as a deductable, along with a portion of my electricity, internet, phone, etc. All items i was paying as a part of business expense.

So you claimed a portion of your internet, phone, etc correct? If you use the internet at your house 80% for personal, 20% for business, you can't (legally) write off 100% of your internet cost as business, at least that is how I understand it.

tpunx99GSX · 02-13-2011

Quote:

Originally Posted by Halon

So you claimed a portion of your internet, phone, etc correct? If you use the internet at your house 80% for personal, 20% for business, you can't (legally) write off 100% of your internet cost as business, at least that is how I understand it.

Only for the months i worked did i claim the internet usage. And i didnt claim the entire thing.
Regardless, how would they really be able to PROVE what percentage you were actually utilising the internet for business or personal. They gonna look at logs of port usage as to what was using RDP or the like?
i am 100% sure i will not be audited, every thing we claimed was completly justified. The tax guy even was going to charge my milage of driving to and from work against my current W2 (also a contract position), but turned out the standard deduction did more for us than itemizing would on that.
Its alot easier to prove the write off of the home office when you actually have a dedicated room like we do that its only purpose is for computer and office work. Also what they do is take the sq footage of the room you have dedicated, and divide that by the sq footage of the home, then all other deductions are based on that percentage. So basically, when it comes to electricity, gas, and other home expenses it would be only 17% of the bill (i think thats what it was for us). Internet usage at the time was more like 70% business, 30% personal.

DoughtCom · 02-09-2011

I'm only paying in $780 this year but I just got my $5400 freelance check

95tsi · 02-09-2011

I'm paying in $520 yippee.

MustGoFaster · 02-09-2011

I expect to be +/- $50, same as last year.

niterydr · 02-11-2011

Quote:

Originally Posted by MustGoFaster

I expect to be +/- $50, same as last year.

In my opinion that is the way to do it!
I just can't predict my deductions as the rules seem to change every year regarding homes and education.

OMFGeofffff · 02-09-2011

I don't get why taxact is telling me ill get $400-$500 back and then turbotax is telling me I OWE $1400.

turbotalon1g · 02-10-2011

Haven't done it yet.
Since we have been on unemployment for quite some time, we probably will be paying in.

**goodhart** · 02-13-2011

The wife and I are getting $8710 back total including renter's credit. HUGE increase from last year having our Son the whole year (He was born Nov 22nd 2009)and being married really helped.

TheBlizzard · 02-13-2011

I paid in 19,524 dollars, and got 1,023 back total, being single with no deductions = getting raped.

**Halon** · 02-14-2011

Home office/business write-offs are one of the most audited items from what I understand because of the fact that those who do it don't fully understand the entire process. I sure don't, but this is an area my friend is very close to. And the way I understand it, is if you are now writing off areas of your home as an "office", then there is depreciation in value of that area due to it being an office now, and legally you are supposed to be keeping track of that now, and when it comes time to sell your house, you need to take that into account. The way I understand it, a home office isn't just a big win win meaning you get to write a bunch of stuff off. That's the good part, but there is much more involved supposedly, and I'm curious if you are doing all of that, or just taking the "good" which is the write-off.

And true, they probably would have a tough time proving it. But my buddy does exactly that. He keeps phone records showing how much was actually used for work to prove that in case of audit. But if you are going to just write it off saying "how will they ever know", then good for you for being all about you and getting yours and damn the man.

TheBlizzard · 02-14-2011

Brandon your are right, my friend does taxes for a living and used to be one of the hated "auditors". Basically if you are not 100% legit and studied on what are you writing off you are eventually going to get whacked for it. The good thing is that I think they can only go back 3 years, but I could be wrong on that.

You may think there is gray area with taxes but there really isn't, and just when you think nobody is paying attention to the 'little fish' bam you get audited and they take your shit away piece by piece.

Toms not a dumb guy so I would hope he did his homework before a ton of write offs, if not it will only take once to learn a hard lesson. Most likely he won't get audited but who knows with the IRS.

C3L1CA · 02-14-2011

Statutory of limitations is 3 and a 1/2 years usually and they can go back 6 years I believe if they have been a nonfiler. At least that is how I believe it is at the state.

tpunx99GSX · 02-14-2011

I have studied up on a lot of that. But my tax guy is REALLY good at what he does, and at 90 bucks an hour he damn well better be.

If i get audited its really ok, as i have records of everything.

**Halon** · 02-14-2011

Quote:

Originally Posted by tpunx99GSX

I have studied up on a lot of that. But my tax guy is REALLY good at what he does, and at 90 bucks an hour he damn well better be.

If i get audited its really ok, as i have records of everything.

I'm sure he is much more of an expert than I will ever be. You should maybe ask him about that though. If you claim a home office in your house, and use it as a write off, you should ask him how that affects the value of your house, and what sort of consequences there are when the time comes to sell your home. I think you may run into some additional capital gains taxes if you sell the home (which now includes a depreciated home office) for a profit. This is why I have never dived into the home office write-offs. I "could" write some stuff off, but the way I understand it is if it's all done legally, it's not just as simple as getting to write off some additional stuff. And I personally don't know enough about it all to consider it worth-it for me to even try.

Anyhow, not trying to second guess you. But just hopefully you understand all of this, and you may get a slightly nicer return now, but in the future there may be consequences when you ever decide to sell your home as the value of that office has now depreciated, and additional taxes may come into play on any gains you've now made when you sell it.

tpunx99GSX · 02-15-2011

Quote:

Originally Posted by Halon

I'm sure he is much more of an expert than I will ever be. You should maybe ask him about that though. If you claim a home office in your house, and use it as a write off, you should ask him how that affects the value of your house, and what sort of consequences there are when the time comes to sell your home. I think you may run into some additional capital gains taxes if you sell the home (which now includes a depreciated home office) for a profit. This is why I have never dived into the home office write-offs. I "could" write some stuff off, but the way I understand it is if it's all done legally, it's not just as simple as getting to write off some additional stuff. And I personally don't know enough about it all to consider it worth-it for me to even try.

Anyhow, not trying to second guess you. But just hopefully you understand all of this, and you may get a slightly nicer return now, but in the future there may be consequences when you ever decide to sell your home as the value of that office has now depreciated, and additional taxes may come into play on any gains you've now made when you sell it.

I can ask, but honestly, i really could care less as to what it does to my house... because i rent it.

**asshanson** · 02-15-2011

Just e-filed both Federal and State, I'm getting $1500 back combined (600 fed, 900 state), and I took 4 withholdings on my w4 this past year.
Next year will probably be a lot different since I moved to Iowa, trying to get rid of my condo up there, and a bunch of other stuff. I'm claiming 0 on my w4 for 2011, just to be safe.