I'm a jeweler and one of my co-workers confided in me that she gets a manicure every Sunday. I was a little surprised that she was able to afford it (her husband works two jobs, so does she, and they are over their heads in debt). She just said plain and simply that she "writes them off as a business expense on [her] taxes".

Is that even legal??? I can paint my own nails, so I have no interest in doing it. But... if it's illegal, I don't want to get in trouble by association or something.
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For such an expense and for that matter any expense the taxpayer would be required to show that the expense was customary and necessary for the type of business the taxpayer is making the claim. If every jeweler in your city required that their female employees have manicured nails you may have a chance. It is unlikely that your friend will meet this standard if they are audited. However if they are never audited or hide the expense there is little that will occur to them. In either case you are not going to get into trouble for knowing that information unless you denied it to Federal Investigators if they asked you during an investigation.
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Depending on what she does for a living it could be legal, like she's a hand model, etc. But if her job does not relate directly to the appearance of her hands, then it is not legal. She's probably calling the expenses something else other than manicure on her return because you don't submit actual receipts when you file business expenses. The only way she can get caught is if she gets audited by the IRS. THEN they want to see your receipts.

Knowing she does it probably won't get you into any trouble and she still has to put out all that money for a year on manicures before she gets any of it back and she's not getting 100% of that money back anyway.
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So...in 3-6 years when they get audited and they try to defend the deduction of personal expenses...lose...and have EVERY deduction examined under a microscope...lose, owe tax, owe 20% extra for fraud, plus late fees and interest.....will you think she's so brilliant then?
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This isn't at all legal.
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NOPE.
Only if it was a requirement of her employer, and then it's still a stretch.

Working for an insurance agent have to do a 1099
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First of all you are only taxed on the net not the gross. Therefore you should estimate both your income and expenses. Once you have some idea of your net you can count on 15.3% of that as SS and Medicare. Next you can deduct your standard deductions and exemptions from the net. That will give you your taxable income for the Federal income tax. On that income your will be taxed at something between 10 and 25% depending on the amount you make. As for the state and local it would depend on where you live and earn this income. A safe bet is 5% of the net. All of this assumes that you have no other income. If you do add that to the net before calculating the income tax for both Federal and state. It would not be included in the calculation for the SE Tax.
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It depends on your income, your state and your city. See a tax professional in YOUR area.

Helen, EA in PA

what is the sale potential on land if owner owes 6 months back taxes and has lien applied by local goverment???
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If the owner of the land does not pay the property tax for 2 years, a stranger is allowed to pay the entire amount of the back taxes. It is not a gift to the owner.
If the owner does not pay up for 3 more years, the person who paid the taxes can go to court and get the deed to the land. All mortgages are wiped out. That is why mortgage companies insist that taxes be included in most mortgage payments.
If the owner does pay up, the money is sent to the person who paid. The owner is also charged a huge penalty... 16% or more. That penalty is also sent to the person who paid the taxes.
So the stranger either gets the deed to the land or she gets her investment back plus 16%. Both are good returns on investment.
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Please explain what you are looking for in terms of "sale potential" - Eventually, the owner will either pay the back taxes or the municipality will auction off the property.

EDIT:

Just so you know, any property sold by auction under a tax lien is subject to a one-year right of redemption in which the original owner can pay the back taxes plus 18% and re-acquire the ownership of the property.
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A taxing agency can seize any property you own for back taxes if they follow proper procedures. Putting a lien on property rarely results in the taxing agency selling the property they simply will get first bit at the sales proceeds if the property is ever sold.
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The buyer would require the owner to pay back taxes,
In fact it is likely the LAW to do so

I did not file my 2007 state tax. Can you guys tell me if I can possibly file my taxes and how to go about it. I know that I do not owe them but it is bothering me. I appreciate it!!
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Agree with rtfm...it sounds like its in your best interest to go ahead and file so you can claim a refund, if one is due to you. Not only will you get money that is owed back to you, but this will no longer be an issue that is bothering you.

You can go to www.irs.gov to download the 2007 1040 form to file. You will have to mail it in. The address for your state can be found on the IRS' website as well.
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If this had been your federal tax and you were entitled to a refund, you'd have less than two years to claim it (there's a three-year limit for claiming refunds). These taxes were due on April 15, 2008, so you'd only have until April 15, 2011 to claim the refund or forfeit it.

Whether the same applies to your state tax refund or not depends on the rules of your particular state. Go to their Web site and see if there's contact information there so you can call and ask.

i live in new york do any one have a number so i can find my status
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Dear Terr: Look at the NY state dept of revenue and the link to "Where's my refund". The web site also has a number.

This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent Master Tax Advisor

I'm about to start working 30 hrs a week at $13 an hour. I'm also going to be moving out (of my moms house for college) 4 months after i get my job. Anyone know what they deduct from your paycheck and how much?
I've heard some people say that you only end up with 75% of your real pay check but then i heard other people say you get to keep 80%, anyone know which one it is?
Does the deductions go up once i move out?
Thanks!
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$13 X 30 = $390 per week

Weekly Gross Pay $390.00
Federal Withholding $34.69
Social Security $24.18
Medicare $5.66
Florida $0.00

Net Pay $325.47 <<<<------- This is your weekly net pay
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Federal withholding, social security, medicare, state withheld,and insurance ,if you have it, are all deducted. On the average it is 28% for your income bracket. If we had the fair tax now, you would get 100% of what you earn, plus a monthly check for normal food and drug expenses taxes. Then you pay taxes only on what you spend, so everyone pays their fair share and the people who now cheat on their taxes could not do that anymore.
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Florida has NO STATE INCOME TAX.

I've heard some people say that you only end up with 75% of your real pay check but then i heard other people say you get to keep 80%, anyone know which one it is? also, why do they deduct this, is it all taxes?
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75% sounds about right. They take taxes, social security, and medicare. It all depends on how many dependents you have.
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TOOOOO MUCHHH
ive lived in FL for all my life and they deduct for sooo much.
seriously.
they deduct for...
401k
state taxes
local taxes
insurance
welfare (yes, it is that important in fl cause we have a bunch of fat lazy dont wanna get a job out of work poppin out kids somehow twice a year people livin here)
advice?
Dont Live Here
head my warning lol
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I think it dpends on what bracket of income you are in the more you make the more you are taxed. It also depends on you being single or have kids. All of it is not taxes social security and medicare are taken out for when you retire or become diabled. It's better for you in the long run.

Exactly what kind of income taxes are there? How many are there? What's the percentage of them of my gross annual income? (I'm a student worker, earning $32,480 USD.) What are the taxes and deductions I have to pay?
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Your California state income tax would be approximately $901 and $3,128 for federal income tax. None of the cities in California have income tax. This information is based on the gross income you have indicated. There could be other factors that may increase of decrease these estimates which are based on 2008 tax rates as 2009 charts are not currently available. in addition you would have had approximately $2,485 withheld for FUTA.
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There are two income taxes in CA, federal (IRS) and state (FTB).

Neither is a fixed percentage. They are both computing using non-linear tables.
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Tax due would be $699 per the FTB self calculating 5402EZ

My tax preparer put my "taxes due" amount on the "estimated taxes" line and the IRS has returned my payment because of that and subsequently billed me for the amount due plus interest. I'm sure that I can get the IRS to credit my payment properly, but if they won't waive the interest is my tax preparer liable for it?
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No, he is not. While many will cover the penalties (and occasionally the interest) due to their error, they are under no LEGAL obligation to do so.

Keep in mind that if he does cover any penalties and/or interest, you must report that as income on your return next year on line 21 as Other Income.
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If the IRS sent you a check for the money that you paid them then you have sufficient proof to have the penalties and interest on that amount removed as of the date that you mailed the payment. It will take a human to override the system though. TFTP. Report Abuse

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I'm hard pressed to believe that the IRS returned that check like you say.

The IRS computer is coded to not trust the estimated tax line. The account doesn't use the number from the tax return. Instead it uses the amount shown on the account itself.

On the other hand, I would believe that your preparer put the wrong number on the withholding line and verified it later with the W-2.
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Here's what I would do...
1. Call your tax agent and explain their mistake to them - ask them to organise to have the interest waived at no cost to you. If the interest cannot be waived, ensure they pay for it. Any reasonable tax agent will be happy to rectify their error.
2. Find a new tax agent.
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Liable in what sense? Can you sue him for it? Possibly. I would HOPE that any qualified professional would offer to cover the interest himself. I know that H&R Block offers that as a guarantee.
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You are responsible for whatever you owe. A preparer who makes a mistake that costs you a penalty could offer to pay the penalty.

I am aware of a person regularly hiring people to do construction work but there is no record keeping, tax withholding etc. One of the workers was injured and has no workman's comp.
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If you suspect or know of an individual or company that is not complying with the tax laws, you may report this activity by completing Form 3949-A. You may fill out Form 3949-A online, print it and mail it to:

Internal Revenue Service
Fresno, CA 93888

If you do not wish to use Form 3949-A, you may send a letter to the address above. Please include the following information, if available:

Name and address of the person you are reporting
The taxpayer identification number (social security number for an individual or employer identification number for a business)
A brief description of the alleged violation, including how you became aware of or obtained the information
The years involved
The estimated dollar amount of any unreported income
Your name, address and daytime telephone number
Although you are not required to identify yourself, it is helpful to do so. Your identity can be kept confidential.
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Construction work is tricky. First of all, a company or person may hire someone else to work on a construction job and not have to withhold taxes, etc. This is called contract labor or Independent Contractor. As such, the person getting hired is responsible for all applicable taxes. Also if you are hired as an IC you are responsible for workman's comp injuries unless the hiring company or person is responsible for the accident.
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I assume you want the reporting to be anonymous. I don't know if the IRS takes anonymous reports or, if they do, whether they have the manpower to follow up on each report. But they aren't the only ones you could tell. The state's not getting its income tax either. Or, how about OSHA? Maybe the local newspaper would like to do an exposé.
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Many construction workers do work as independent contractors. They're hired on a job-by-job basis for a specific task, such as framing a home or doing the drywall work. They are properly responsible for their own taxes, insurance, etc. There's nothing to "report."
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It is my understanding that if workman's comp laws don't apply he can hire a regular lawyer and there is no limit on the law suit.

If he can find a lawyer who thinks it is a good case.
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If you report them, you can actually get some of the money recovered if you help the IRS get money back. Their web site has a page for reporting tax cheats.
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dont report it.. let them deal with it.. it's there business and the two of there issues.. not yours.. I think the guy that was injured should figure it out himself
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Just call them!
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Call their 800 number, the one that ends in 1040, they shall fall like the locusts they are

Ok, so I want to ask a simple question.
I am currently 17 (fixing to be 18), living at home (though not much longer, I hope...), have a job working at a restaurant (yes, I know...the lowest of the low), and have been declared as a "dependent", and "exempt" from taxes.

Now, I'm not sure what all that implies...

For one, am I going to have to pay back the taxes that were with-held from me, later on? If so, then that really sucks...

Also, I understand that one definition of "exempt" means not being paid for working overtime. I'm not sure if that's what my employer's wife meant when she used that word to me, or if she simply meant that I will not have to pay any taxes (though I don't have a clue whether I'm going to have to pay them later on down the road, and that is what I'm asking) right now because I have been declared as a "dependent" on the W-2 tax form.

Also, I need to add that this was the first year (2009) that I had to sign my W-2 tax form. I'm not sure what my dad was doing before, but I know for a fact that this is the first time I had to sign it. And so, I must admit I am a little bit worried about what all the implications of that action may be...

Could anyone please explain the details of what all this means?

Thanks.
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In your situation, you are single and a dependent; your standard deduction for 2009 is $5700. If you have earned income (income from work) of less than $5700 then your tax is 0, however, I would advice you not to claim EXEMPT on your W4, in case you make more than $5700. When you claim EXEMPT on your W4, you are asking your employer NOT to take out any Federal taxes from your paycheck. This my cause you to have to pay taxes in April next year. I don't think that you want to do that.

If you don't file EXEMPT and make less than $5700, you will receive all the Federal taxes you pay next year after you file your taxes. Example;
Your total income from work at the end of 2009 is $5650 and you paid
(deducted from your paycheck) $565 for Federal taxes. After you file your taxes in 2009, your refund will be $565. Is it not better to get a refund than maybe have to pay? think about it!

If you need more help, e-mail me at
tax.eezi@gmail.com
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If your total income (including tips that you reported to your employer) is less than the standard deduction and you do not have other non-earned income, you can be exempt...as in, I won't owe taxes if I filled them out.
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You're living at home, so at 17 most likely are a dependent, but who declared you "exempt" from taxes. The only way you're exempt is if you make less than the standard deduction amount for the year - then you wouldn't make enough to owe any tax. For 2008 that was $5450. And you do know that any tips you get are ALL taxable income? If you put exempt on your W-4 form, then your employer wouldn't take out for income tax, but if you make enough to owe any tax, you'd have to pay when you file your return.

Another use of "exempt" does mean they wouldn't have to pay you OT, but unless you are managing the restaurant, you would not be exempt in that sense.

Not sure what you're asking about paying back taxes that are withheld - they already have those, you wouldn't be paying them back. If not enough is withheld to cover what you owe, then you'd have to pay any extra.

i"m not moving there until i find a job but i am going there to find a job
and it might take 6 months
can i set up a P.O. Box?
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Well if you are going to be there longer than a month then report it to your unemployment office. They will send you your mail wherever you are. As long as you are actively searching for work, they don't care where you live. This will also keep you compliant. That way they won't ask you to come to the office or be a part of a job program in your "local area" the address they have on file for you now. What I'm trying to say is, just because you move out of state does not make you lose your state unemployment. That was paid in to them while you worked there. As long as you are not working, or are under employed, and you are available to work every day, you still qualify. Even if your out of state.
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You should be able to set up a PO Box with forwarding mail sent to an address where you will be. Just make sure you are not actually working out of state and collecting unemployment because that would be fraud
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When you have a job you will stop receiving unemployment so why worry about it.

They are taxed as Ordinary Income which is your normal rate. Long Term Gains are taxed at lower rates. For example, if you are in the 28% bracket, a ST Gain is taxed at 28%, but a long term gain is taxed at lower rates. LTCG rates: 5% for taxpayers in the 10% and 15% tax brackets (zero percent starting in 2008) and 15% for taxpayers in the 25%, 28%, 33%, and 35% tax brackets,
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Google "short term capital gains."

If you say it is so, it probably is.
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think about if u were the owner of the place where u live and u are making payments on the place.do u believe u should let that person stay just because they lost their job? I manage 48 apartment 4 a person. in my county they will give u 30 days 2 b out no matter what, apt.owners have rights too. Report Abuse

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Is this a question ???

For instance, could I change my P.O. box, which is listed on my pay stub and W-2, to my physical address for one pay period.

I need official paperwork with my physical address listed and I'm running out of ideas.
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It is not a problem with anyone but perhaps your employer.

Helen, EA in PA
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You may be able to list both addresses on your stub and W-2.
The first address listed is your mailing address and the second is the physical address.
Unless you don't want someone to know where you live,there is no reason to not have both addresses listed.
Your drivers license should have your physical address and should serve as proof.
Other than that,the addresses do not have to match.
If you have at least 1 utility in your name for service at your physical address,that will also work.
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Dear R: You can change it and then change it back, no big deal!

This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent Master Tax Advisor
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It never needs to match as long as the rest of the information is accurate.
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No

When donating money to certain charities, you are restricted to no more than 50% of your adjusted gross income, while for some other charities you are restricted to 30% of your adjusted gross income. Is there a comprehensive list anywhere which an individual can access to:

1. Determine if the institution is a recognized charity.

2. How much of your adjusted gross income this charity is restricted to?
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Read irs pub 526.
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There is actually no limit on the amount you can donate. The limits refer to the fact that your deductions for charitable contributions on your income tax returns cannot exceed the given percentage of your annual income. There are many organizations falling under the umbrella of 30% and 50% limit charities, and there is no comprehensive list. If you are considering making a contribution to a particular organization, they will be glad to tell you which type they may be.
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The 30 vs 50% allowed depends on what's donated, not on the charity.

My fiance lives in another country right now, and is sending me a 4000 dollar check to cash, which is going straight towards my college expenses for the next semester. Since this money has been given to me, is it considered income and do I have to pay taxes on it? And by the way, the WHOLE thing is going to be used for school fees.

Oh, and if possible, please include a reputable web source so I can know that your information is accurate - I don't know much about taxes and I'm afraid of getting in trouble with the IRS!

The best answer gets 10 points - so please help me with this!
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If it's either a gift from him to you, or a loan, you don't have to report it to the IRS and don't owe any tax on it. irs.gov website would have the info somewhere.
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Even if your fiance gives the money directly to you no tax is to be paid.
The receiver of the gift does not pay any tax.
Read more about gift tax http://taxipay.blogspot.com/2008/03/us-g...
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You may receive a gift of up to $13,000 without paying taxes on it. You may receive an unlimited number of these, as long as each is from a different person.