personal income tax question

[IIC]

Well...I guess we've run this into the ground...My final answer is that I think Casino Boy should call the IRS, explain the circumstances and ask them what he should do...Make sure to document the time, date and who he spoke to in case they give him the wrong answer...That way if the answer ends up being wrong (which has never happened to me...but I guess it does happen) he will still owe any taxes due as a result of the mis-info if they catch it (although for this amount of money my "Unofficial" opinion is that there is more chance of winning the Super Lotto than catching any mistake)...but they would waive any penalties associated with filing according to the wrong answer...I don't think they'll do that if some hotshot $300 an hour CPA gives you the wrong advice.

IMHO...The main things the IRS are after are not filing and fraud...And I don't suggest anyone to do either.

Now, back to the markets...Doug(IIC)

[casinoboy3]

Yes, I'm definately going to give the IRS a call and ask them what to do. I can't wait too long to file taxes and hope to have it done by February, as I need to list numbers from my tax return on financial aid forms for college. I suppose I could file an extension, but I don't really like the idea of gambling with the money that I'm gonna owe someone in the near future.

I tried looking up some info about my specific circumstance though, and here's what I came up with. I don't think there's any way to avoid paying the FICA tax on my income from the 1099, but I'm hoping there are a few deductions I can make.

According to this website:

http://www.jamesdance.com/Pages/foreigner_Living_Expenses.htm

"What are temporary living expenses?

Temporary living expenses are travel expenses incurred during an extended business trip or temporary work assignment that was intended to last one year or less. The expenses may only be claimed for a stay for business. Personal or school stay expenses generally are not deductible. Temporary living expenses also have no relation to having alien status. A U.S. citizen working temporarily in another city can also claim them. However, the time limitation of the visa makes it easier for a foreigner to claim that he is "away from home" on a business trip if he intends to work in the new location for less than a year. Temporary living expenses include hotel lodging (or apartment rent for longer stays), meals, and local transportation. Meals may be estimated using federal per diem rates. For example, the IRS allows $42 per day for a high cost locality (e.g., New York City). On the tax return, temporary living expenses are deducted as unreimbursed employee business expenses."

So basically it comes down to where is my tax home? If its my permanent residence or college location, then my summer housing and vehicle/transportation expenses would be deductible as the location is six hours away. But, the summer internship was my only "real" job this year, so if that place is considered my tax home, then I wouldn't be able to deduct the cost of housing.

And the second potential problem with this - where would the deduction be listed? I was under the impression that it would go on the Schedule C and this would directly reduce my "business" income, meaning I won't have to pay as much in total FICA taxes, and that my gross income might fall just under the standard deduction so I won't have to worry about the federal income tax either.

If, however, I can't list the deduction here, and I have to list it under "Unreimbursed employee business expenses" - then I'd have to itemize for this to be counted, but there's no way it's gonna total more then the standard deduction, meaning it would be pointless to pursue it.


Anyway thanks for the replies. By the way, I'm doing this all on Turbotax.

[skiracer]

Why don't you talk to an accountant? They are the ones who know the answers an all the in's an out's of the tax code an would be the one's able to get you the best situation for yourself. Trying to save yourself a few dollars always ends up worse than spending a few to get the best info.

[casinoboy3]

Why don't you talk to an accountant? They are the ones who know the answers an all the in's an out's of the tax code an would be the one's able to get you the best situation for yourself. Trying to save yourself a few dollars always ends up worse than spending a few to get the best info.

If may stop in one of those H&R Block's if that's what you mean... but first I'm going to ask around when I get back to school. I can't believe I'm the only one with a situation like this as it must be rather common among students who co-op.

[IIC]

If may stop in one of those H&R Block's if that's what you mean... but first I'm going to ask around when I get back to school. I can't believe I'm the only one with a situation like this as it must be rather common among students who co-op.

Well...asking H and R Block for tax advice is tantamount to asking "Joe Blow" at your local bank about IRA type advice....If they knew what they were doing...they wouldn't be working there...But that's just my opinion.

PLUS...On a related subject...any "Smart Investor should know this"...If you go to any major broker or bank...the drones that work there are ONLY allowed to suggest investments that their firm allows them to tell you about...Sure, they may be allowed to let you invest in something else...But ONLY if you initiate it...BUYER BEWARE!!!

Reminds me of someone I knew about 10 years ago...We had both joined a large Chamber of Commerce at the same time. She worked for one of the biggest Mutual Funds around...I got to know her somewhat...At the breakfast meeetings we were permitted to give a 2-3 min. speil about what we were offering...Her thing was a FREE Financial Analysis w/ recommendations for anyone.

Well...I wasn't born yesterday...I know how it works...So after about 4 months I took her aside and I told her that I know the game..."After giving someone a FREE financial analysis...Do you ever recommend that they invest in anything but your funds"??? End of story...She never spoke to me again...LOL

[skiracer]

Go to a private certified accountant and pay him whatever it is for an hour of his time to review your situation an advise you and perhaps do the work for you. It'll probably cost less that $75/$100.

[IIC]

Go to a private certified accountant and pay him whatever it is for an hour of his time to review your situation an advise you and perhaps do the work for you. It'll probably cost less that $75/$100.

Geez Ski...I'd certainly like to find a good accountant that was so cheap...Maybe I'm in LA-LA land...But I thought you have to pay at least $300 hr w/ a one hour minimum....Same amount for attorney's.

Maybe I'm getting screwed???

As far as my taxes...I do them myself...although last year since I did the Day trading thing I paid for an hr. of review to make sure I did that part right.

[DSteckler]

<< I'm in LA-LA land...But I thought you have to pay at least $300 hr w/ a one hour minimum >>

Only on the Left Coast <g>. Here in the heartland a good CPA charges half the much per hour, or less.

[skiracer]

Maybe I'm way off base as to what they get on the west coast. My guy who does all my work bills me an I just pay him. I never look at the total vs the hours spent on the work because he never gives me the total hours only the total bill. Maybe he's robbing me. I do pay him a big number every year.

[IIC]

Well...actually guys...I think my time is worth 500 bux an hour...unfortunately nobody else does...so I just toil away at a mere 300 bux an hour...LOL