Work at Home Forum / Accounting and Legal Advice /

Tax question! URGENT

Author	Message
sairashab Member Joined: 20 Apr 2007 Posts: 27	# Posted: 25 Feb 2008 09:42 Reply Hi y'all, I have a question about filing taxes. I work at a retail store part time. I know I am going to file my taxes for that. I also did one mystery shop I only made $10 from that. I also made some money with this work from home website project payday. I lost more than I made but since I don't have any records, I would have to file taxes. I think I read it here that if we make less than $600, we don't have to file taxes. I only made around $283. Can someone guide me about it? Thanks Saira
mountainmom5 Joined: 30 Aug 2007 Posts: 1107	# Posted: 25 Feb 2008 12:03 Reply I just had my taxes done and I am not an accountant so please take this as info and not instructions on what to do - lol! But my accountant basically said, we should have records of everything that we file... both in expenses and income. So, if you don't have records to prove anything - and should you get get audited - which they do on a random scale at times - it's better to not have it on your file at all, in my opinion... __________________ WAH Stuff Affiliate Marketing Blog Thanks to One Week Marketing Plan I actually have something other than zeros in my clickbank now :)
PNL Travel Joined: 28 May 2006 Posts: 222	# Posted: 25 Feb 2008 15:11 Reply I am also not an accountant, but I am pretty sure that $600 rule (if you make less than $600 you do not have to file it) is still around. You can always call one of the tax services and ask before you get started to be sure! __________________ Lora Moore Lora's Secret
dmitch31 Member Joined: 18 Jan 2008 Posts: 209	# Posted: 27 Feb 2008 18:05 Reply Well, if you don't have any records it would be hard to prove anything either way even if you were audited. If the IRS was going to try to audit you, what would they audit? The truth is, that the IRS isn't terribly worried about keeping their eye on small amounts of money like you are talking about. They are more concerned with auditing and finding people evading taxes on a much larger scale. If you would ever do something like this again, it would pay you to maintain records, because as in this case, you lost money. Your documented loss would reduce your taxable income which means you would pay less taxes. If you ever lose money in any endeavour, hang on to your records, because they will lower your taxes! __________________ Wealthy Affiliate Newbies Are Making $50 To $100 A Day!
NTC Member Joined: 12 Mar 2008 Posts: 338	# Posted: 13 Mar 2008 15:10 Reply http://www.irs.gov/individuals/article/0,,id=96623,00.html This should be very helpful for you. Have a great day, Victoria __________________ Explore The Famous Internet Marketing School Inside Wealthy Affiliate Everything Needed To Succeed Is Included! Beginners Are Welcome! Follow Me On Twitter
opendomain Member Joined: 19 Aug 2007 Posts: 528	# Posted: 13 Mar 2008 16:08 Reply i'm not an accountant but I play one on tv JK I am a book keeper though and most companies will not report your income to the IRS. SO if you don't file you're ok. The only time the IRS will start looking at you is if a company says, hey she made over 600 with us, she is able to be taxed. Definately always keep some type of record of what you've made. You, if you wanted to, could even set up an LLC and use some of those expenses as tax write offs. BUT if you're not going to be filing there really is no need. __________________ WWW.OPENDOMAIN.WS FREE Marketing Guide, step by step marketing guide 100% free Spiderweb Marketing
hischicklet Member Joined: 6 Aug 2008 Posts: 3	# Posted: 6 Aug 2008 22:04 Reply I am a tax preparer and you are both right and wrong on the $600 rule. A company (employer) is not required to send a 1099-M to anyone who made less than $599 for the year. That is where the $600 "rule" comes from. As for the receipient of the money, the law is all income is reportable ( yes, even $10.00). When you add up all the little $5 & $10 you make, it all adds together for your total income. Keep ALL receipts for your expenses so you can deduct them. This will lower your self employment taxes which you are responsible for paying. If you have a large enough loss that you cannot take in this take year, it can carry forward to the next most cases (or backwards in some cases) Hope this helps. __________________ Want a better credit card? Get one now! Good, Bad or Bruised Credit OK! Student Credit Cards Available! http:////www.creditaccess.net/credit/dm3903/index.html
hischicklet Member Joined: 6 Aug 2008 Posts: 3	# Posted: 6 Aug 2008 22:11 Reply Also, you do not have to set up an LLC to deduct your expenses from your business. An LLC is to protect your assets if you have a liability in your business. A Schedule C what you need to claim your self employment income if you have deductions (expenses). Income received that is not from employment or self employment income with no expenses can be claimed on the 1040 under Other Income and be sure to mark the subject or not subject to SE tax box. __________________ Want a better credit card? Get one now! Good, Bad or Bruised Credit OK! Student Credit Cards Available! http:////www.creditaccess.net/credit/dm3903/index.html
annadenise Member Joined: 9 Mar 2008 Posts: 231	# Posted: 7 Aug 2008 10:38 Reply hischicklet: I am a tax preparer and you are both right and wrong on the $600 rule. A company (employer) is not required to send a 1099-M to anyone who made less than $599 for the year. That is where the $600 "rule" comes from. As for the receipient of the money, the law is all income is reportable ( yes, even $10.00). When you add up all the little $5 & $10 you make, it all adds together for your total income. Keep ALL receipts for your expenses so you can deduct them. This will lower your self employment taxes which you are responsible for paying. If you have a large enough loss that you cannot take in this take year, it can carry forward to the next most cases (or backwards in some cases) Hope this helps. Thanks for the excellent advise. I have found too, the hard way, to print out online expenses periodically from online business' rather than assuming you can always get the information from the site at tax time. A couple have gone under, so then you do not have your documentation if you cannot open the site up. __________________ A. Denise Wilson, 1 Star Trivita Director Trivita Cooperative Marketing TRIVITATEAMBUILD in THE FASTEST GROWING TEAM IN TRIVITA! We help you get 3!
LifestyleDesign Member Joined: 7 Aug 2008 Posts: 10	# Posted: 7 Aug 2008 18:09 Reply Quick tip: Open a credit card that you use for all your business related purchases. Credit cards keep a nice running documentation of the monies you are spending for your business. I also use a really cool tool that allows me to just enter my business expenses as I make them. I enter all my recurring, monthly costs at the beginning of the year, and then when I buy something business-related just type it in and save. When I get my commission checks, I enter those. Come tax time, the program calculates my profits and losses, categorizes everything by type of expense, and I can log-on to the tax preparation sites and prepare my taxes. That said ... isn't secret shopping the WORST? I did about 5 shops to see what it was all about back when I first started looking at work from home jobs. You end up getting paid much less than minimum wage for your time. Totally not worth it. I found my dream business and was able to quit my job years ago. Good luck in your quest! g __________________ Work Less. Play More.
Silverstone Member Joined: 14 May 2008 Posts: 99	# Posted: 14 Aug 2008 00:43 Reply Bottom Line: If you earn over $599, they will file a 1099. If that happens, you will need to report the income, but you can take business expenses off of that income. Jaime McCarley __________________ Earn $40 Over and Over again, with This NEW Online Cash System - FREE to join Make Money Online - Free Home Based Business - Zero 2 Riches
tinimini Member Joined: 4 Jan 2007 Posts: 12	# Posted: 30 Aug 2008 21:30 Reply hischicklet: I am a tax preparer and you are both right and wrong on the $600 rule. A company (employer) is not required to send a 1099-M to anyone who made less than $599 for the year. That is where the $600 "rule" comes from. As for the receipient of the money, the law is all income is reportable ( yes, even $10.00). When you add up all the little $5 & $10 you make, it all adds together for your total income. Keep ALL receipts for your expenses so you can deduct them. This will lower your self employment taxes which you are responsible for paying. If you have a large enough loss that you cannot take in this take year, it can carry forward to the next most cases (or backwards in some cases) Hope this helps. This is very good to know about. Thanks for all the info.
jhoods21 Member Joined: 27 Oct 2008 Posts: 5	# Posted: 27 Oct 2008 23:49 Reply So if I do not make over $599 I do not pay any taxes at all? __________________ Justin Hoodlebrink Best step-by-step money making program available..
chogu10 Member Joined: 30 Oct 2008 Posts: 3	# Posted: 4 Nov 2008 11:46 Reply Glad to see I am not the only one worried about taxes... I had heard about the $600 rule but was worried. Does anyone know where to get a tax ID if you do cross the $600 mark? __________________ Working a traditional job and going to school at the same time is tough. This is how I am paying for psychology graduate school so I do not have to stock shelves anymore.