Tax help please?

edith head

sorry for posting such a dreadful and boring topic, but my pal realized he has to pay over a lot of money this year. it doesn't make sense to me because i make more and am getting a refund, but for whatever reason, he has to pay and he's pissed and wants a good accountant because he doesn't want to fork over that kinda bread to support the war effort.any suggestions?

Jonny_Paycheck

What did your friend pay through the year? Just because you make less doesn't mean you get more money back, you get money back because you overpaid throughout the year and when the IRS sees that they give you a refund.

However, if you either a) don't pay or b) pay too little, you will owe.

Any basic tax service like H&R Block can probably figure the problem out if dude is a salaried employee.

DOR

Could be any number of reasons I would think.

Anything from legal deductions made to past taxes filed.


Side note:

I was having a convo with a friend the other night. Anyone know if this is true...

If you have a child and you make it so he never applies for a SS card (Canadians would be a SIN) and he never signs a document for anything to do with one, would he legally have to pay taxes? Cause, don't you when you apply for one bind urself into an agreement to pay taxes?

edith head

thanks jonny.

i don't know how much he paid through out the year but i know he worked mostly through temp agencies. i used to get work through temp agencies way back and remember taxes eating a huge chunk every check. it doesn't make sense to me. i'll try to get more info from him, but yeah i'll tell him to take that shit to h&rblock.com

Jonny_Paycheck

thanks jonny.

i don't know how much he paid through out the year but i know he worked mostly through temp agencies. i used to get work through temp agencies way back and remember taxes eating a huge chunk every check. it doesn't make sense to me. i'll try to get more info from him, but yeah i'll tell him to take that shit to h&rblock.com

It's hella easy to unintentionally claim "0" instead of "1", sometimes Temp agencies can be janky as far as guiding you through the process... I knew someone who claimed "0" because she had "0" dependents... doh!

Swayze

I got a question. I wanna use my investments in my dj service as a business write off and secondary income (in which losses outweigh gains), BUT I've never applied for a DBA or registered myself as a company. What's the move? Sole proprietorship? I'm not knowing but I can write off considerable losses and expenses by doing this, at least for the next 2 years.

little tax dude advice needed.

Jonny_Paycheck

Perhaps the bigger DJs on the board might be able to answer that better, but as long as you claim income you can write off expenses... you can't write off expenses if you don't claim the income though! It's pretty suspicious when someone shows one check of income yet thousands of dollars in expenses... you should get a good accountant though (not a walk-in like H&R or online like turbotax) and talk about the best way to organize under the laws of your particular state.

edith head

shit, i just found out from him that his baseball coaching and tutoring jobs didn't withold $ and that's about 2 grand untaxed.

so he's basically screwed right?

Jonny_Paycheck

shit, i just found out from him that his baseball coaching and tutoring jobs didn't withold $ and that's about 2 grand untaxed.

so he's basically screwed right?

Hm. yeah.

damn that sucks, you gotta read the paycheck! wow did i just say that

Swayze

damn that sucks, you gotta read the paycheck! wow did i just say that

*** You are ignoring this user ***

Jonny_Paycheck

2 grand over the course of a year shouldn't be that much money though... $500 maybe?

The IRS does payment plans.

Jonny_Paycheck

damn that sucks, you gotta read the paycheck! wow did i just say that

*** You are ignoring this user ***

Damn, tough crowd.


I'll be in the leopard lounge all week folks!

sabadabada

a lot of time the tax rates that he may be subject to are based on the extrapolation that he will be working at that salary consistently throughout the year. So if it is sporatic work, he could have overpayed through his deductions. A lot also depends on the number of depenedents he claims. The more you claim the more you get each payroll, but the more you will owe. He needs to get a good agressive accountant. Pay the $200 to break him even or maybe get some money back.

jazzercism

shit, i just found out from him that his baseball coaching and tutoring jobs didn't withold $ and that's about 2 grand untaxed.

so he's basically screwed right?

He just needs to write off about $500 worth of expenses in doing this work. Shouldn't be that hard. Computer supplies, baseball equipment, as long as he keeps it reasonable he won't get audited.

edith head

shit, i just found out from him that his baseball coaching and tutoring jobs didn't withold $ and that's about 2 grand untaxed.

so he's basically screwed right?

He just needs to write off about $500 worth of expenses in doing this work. Shouldn't be that hard. Computer supplies, baseball equipment, as long as he keeps it reasonable he won't get audited.

i've never done write-off before, but don't you need receipts?

Jonny_Paycheck

shit, i just found out from him that his baseball coaching and tutoring jobs didn't withold $ and that's about 2 grand untaxed.

so he's basically screwed right?

He just needs to write off about $500 worth of expenses in doing this work. Shouldn't be that hard. Computer supplies, baseball equipment, as long as he keeps it reasonable he won't get audited.

i've never done write-off before, but don't you need receipts?

Yeah. You kinda do.