| Tax Question: Extra money made on the side |
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lowbrow
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| Tax Question: Extra money made on the side |
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Last year I supplimented my income by doing some side work and made about 10k. I was paid by check but wasnt issued a 1099 from the company. What would be the best way for me to claim this money on my tax forms (using turbo-tax)?
Thanks.
The Tax Idiot.
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Tue Feb 08, 2005 10:03 pm |
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Andrew
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Lowbrow,
I forget the exact spot that in TT that is used, but I used TurboTax last year as well, and I remember there was definately a place to add additional non-W2 income.
Are you currently looking in the Income section?
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Wed Feb 09, 2005 7:18 pm |
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lowbrow
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Hey Andrew 
I did a prelim run at Turbo tax a few weeks ago and just wasnt sure if I needed to put down that I was self-employeed or if I could just line item it as non-w2 income like you say.
I look at it again and see if things look different to me now.
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Wed Feb 09, 2005 9:12 pm |
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domskynetlabs
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| Re: Tax Question: Extra money made on the side |
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quote:
Originally posted by lowbrow
Last year I supplimented my income by doing some side work and made about 10k. I was paid by check but wasnt issued a 1099 from the company. What would be the best way for me to claim this money on my tax forms (using turbo-tax)?
Thanks.
The Tax Idiot.
what are the advantages of reporting this extra income?
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Thu Feb 10, 2005 3:21 pm |
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BlankenshipFP
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You don't go to jail. 
Jim Blankenship, CFP�, EA
Blankenship Financial Planning, Ltd.
www.BlankenshipFinancial.com
Standard IRS Circular 230 Notice Applies
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Fri Feb 11, 2005 12:01 am |
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xboxundone
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unless it is like cahs for baby sitting or cutting a lawn you better report it.... even the baby sitting and lawn money you should report but i will leave that on your call.....
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Fri Feb 11, 2005 12:31 am |
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lowbrow
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Thanks all.
I ended up going back to the company that had cut me the checks and had them generate a 1099 for me. Only took them a few minutes. I also read up on working from home deductions and ended up getting a nice chunk of money back.
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Mon Feb 14, 2005 9:09 pm |
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SnapThat
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I also have a question, really quick. In many internet money-making sites, they call members "independant contractors." What does that mean?
JavaHive - Get Paid to Post! | Inbox Dollars
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Tue Feb 15, 2005 1:53 am |
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conservativej
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Im wondering why I should purchase turbotax, when, I could just do my own taxes online at H&R Block - they appear to make it very simple. Has anyone ever done this? I have multiple streams of income. Worked at a Real Estate Company, received checks from CafePress.com, as well as buying/selling stocks through Ameritrade. The thing that Ameritrade sent me is confusing as well, because it tells me how much I bought and sold in 2004, but that doesnt nec. equal my profit right ? Because there were some stocks that I bought in '03 that I sold in '04.... Heck maybe I should just take all my forms in to an actual brick and mortar place....I never finished the H&R Block thing cause I had to pause it to go get my form from work.
Hmm..
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Tue Feb 15, 2005 10:35 pm |
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conservativej
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I also found this site about an interest only loan http://www.interestonlys.com/ Will this help me? I mean, I could get a loan and not have to pay off the principal for a while until I start making sufficient income to pay it. It sounds like a good deal to me, I could pay a little bit at first, and then once my tax returns come in, I could pay off a larger portion.
Anyone had any experience with these before?
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Wed Feb 16, 2005 1:26 am |
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BlankenshipFP
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Conservativej, it sounds like you might be well served to go to a tax preparer to help you out - just to make sure you get things right. If you pay attention to what they do for you, you might be able to do it yourself the next time.
Regarding your question about the stock trades - your 1099 from the broker should indicate the sales you've made, and if they don't include the basis to deduct (in order to calculate the gains), you'll need to go back to your paperwork from the purchase in order to get this. Most of these brokers keep your old statements online for a period of time if you can't find the paper document. Otherwise, if you can't find it online, you'll need to call the company and they can generate a statement with the purchase information on it.
Regarding interest only loans, it's not clear what you're intending to get a loan for. Generally, we're talking about a mortgage on a piece of property. Sometimes they are good for very limited-term situations, but the circumstances require quite a bit of scrutiny.
Hope this helps -
Jim Blankenship, CFP�, EA
Blankenship Financial Planning, Ltd.
www.BlankenshipFinancial.com
Standard IRS Circular 230 Notice Applies
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Wed Feb 16, 2005 1:39 pm |
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Andrew
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quote:
wondering why I should purchase turbotax, when, I could just do my own taxes online at H&R Block - they appear to make it very simple. Has anyone ever done this?
I use TurboTax online. It's a reasonable fee, and makes things a lot easier even with multiple income streams. I'm not familiar with H&R's online system, it may be just as good...
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Wed Feb 16, 2005 2:03 pm |
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lowbrow
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quote:
Originally posted by Andrew
quote:
wondering why I should purchase turbotax, when, I could just do my own taxes online at H&R Block - they appear to make it very simple. Has anyone ever done this?
I use TurboTax online. It's a reasonable fee, and makes things a lot easier even with multiple income streams. I'm not familiar with H&R's online system, it may be just as good...
Yeah I think the online version starts at 4.95 and goes up according to how much help or extras you need.
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Wed Feb 16, 2005 9:22 pm |
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BlankenshipFP
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quote:
Originally posted by SnapThat
I also have a question, really quick. In many internet money-making sites, they call members "independant contractors." What does that mean?
Hey, Snap - I just noticed that we never answered your question.
An independent contractor is someone who works for one or several companies as a non-employee. This way the company doesn't have to pay for that person's benefits and payroll taxes. Usually these contractors have a very low amount of income coming from each of several companies, and they file their taxes as SE income.
Sometimes, as was the case with Microsoft a few years ago, the independent contractor category is a way to save money. The contractors were essentially working full time, in some cases for more than a year at a time, but were not getting benefits to go along with this full time work.
Hope this answered your question!
Jim Blankenship, CFP�, EA
Blankenship Financial Planning, Ltd.
www.BlankenshipFinancial.com
Standard IRS Circular 230 Notice Applies
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Wed Mar 16, 2005 8:10 pm |
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Rolo
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quote:
Originally posted by conservativej
I also found this site about an interest only loan http://www.interestonlys.com/ Will this help me? I mean, I could get a loan and not have to pay off the principal for a while until I start making sufficient income to pay it. It sounds like a good deal to me, I could pay a little bit at first, and then once my tax returns come in, I could pay off a larger portion.
Anyone had any experience with these before?
Interest-only loans can be good for investment property, where the owner wants the income from the property to exceed the expense+mortgage of the property for income--positive cash-flow. Since the property is an income-generator, there is no real point to paying off the mortgage; the property is held for the income and not for its value. This income can be used for more lucrative investments that pay a higher rate of return than what the owner would save by paying the principal.
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Wed Mar 16, 2005 11:14 pm |
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