The Tax Preparation Blog

Posts Tagged ‘ping.fm’

Question: Do I have to claim my services on my taxes?

Suppose I started my own little county-wide computer repair business and I go to the customer’s home to install wireless networks, repair computers, etc. Would I need to claim these services and the money made from them on my taxes? It’s not really even a business. I don’t own a building or anything. I made my own little flyers and business cards and I just use my own computer experience and knowledge as a self-aid. I recently considered putting the paypal option on my website to give customers the option to pay with credit instead of cash/check. Let me know. I don’t see it any different than running my own little lawn cutting business as a child or even babysitting. Someone please shine some light on my situation.

Answer: Income is income. You probably didn’t declare the income from babysitting or lawn cutting because it wasn’t enough to require filing. The IRS is also a little shy about the publicity auditing a 12-year old kid would generate.

Not only is the income taxable, but since you are now self employed you have to pay income tax and self-employment tax of about 15%.

Now for some good news. You have flyers, business cards, a web site, etc. You are a business. If you don’t make money this year, at least you have demonstrated that your intention is to make money. Under the “hobby-loss” rules, you are presumed to be in business only if you make a profit in three out of five years. If you lose money too often, the IRS will disallow the losses unless you demonstrate that there is a profit motive and that you are taking steps to run the business properly.

Keep good records of everything you spend on your business. That includes records on the miles you drive to each home. Also record your odometer at the beginning and end of the year so that you can keep track of your business portion of your car expenses. If you start making a significant amount of money, you may need to pay estimated taxes on a quarterly basis. This is a good time for you to meet with a CPA for tax and general business advice.

I hope this helps.
Gary

I hope this helps.
Gary

The Pulse: Election-night blog

Follow all the action from tonight’s crucial count here.

America’s Next Lady Liberty – Whitney Johnson

Kalamazoo tax bills now processed in Chicago

Kalamazoo property-tax payments mailed in are going to a Chicago processing center under a new system city officials say should cut collection costs.

Tax Staff / Senior – Fortune 500

Wiley Registered Tax Return Preparer Exam Review 2012 (Wiley Tax Return Preparer Competency Exam Prep: Individual Tax Filing) $33.30 The most effective system available to prepare for the new Tax Return Preparer Competency ExamIn recent years, the role of third party assistance in tax return preparation within the United States has become more significant. To acknowledge this trend, the IRS is strengthening partnerships with tax practitioners, tax return preparers, and other third parties in order to ensure effective tax admini…

IRS to consider commercial preparer registration. (Internal Revenue Service) (column): An article from: The National Public Accountant $5.95 This digital document is an article from The National Public Accountant, published by National Society of Public Accountants on March 1, 1990. The length of the article is 1001 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web bro…

Final Circular 230 Regs. implement preparer registration rules.: An article from: The Tax Adviser $9.95 This digital document is an article from The Tax Adviser, published by American Institute of CPA’s on August 1, 2011. The length of the article is 919 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Final Circular 230 Regs. impleme…

Rule changes coming for those who prepare taxes

The Internal Revenue Service greeted 2010 and the start of the tax-filing season with new provisions that will require registration, testing and continuing education for tax-return preparers.

WI Tax Practitioner Registration-My Tax Account

Question: earned income tax credit?

why do some “taxpayers” (i use that word generously) believe that they may manipulate or outright be dishonest in order to receive a refund they may not otherwise be entitled to. take the case of two single parents with one child living in the same home, and the taxpayers or tax preparer “belief” that either parent is entitled to take the child’s dependency exemption and associated child tax credit “type” benefits, while the tax code and regulations specifically state who must take the exemption and who may be able to take the eitc. and this is not up to anyone to manipulate or bend the rules in order to fraudently receive a earned income tax credit that they are not entitled to. do people really think they will get away with this or are they living in a fantasy world.

Answer: I’m not sure how easy it is for two people to try to claim the same child. Now that the IRS requires the SS # of the child you are claiming, don’t they cross check these numbers to see if the dependent has already been claimed by someone? If not, they should. A simple computer program could cross check SS #s.

It hasn’t been all that long ago that one needed only list the names of the children being claimed on the return. Anybody could list any number of children on their return. Now, they require the SS#. What’s the point if they’re not checking the accuracy of them?

Tax preparers to face new regulations

The IRS plans to require tax preparers to pass a test and register with the government to better police a largely unregulated industry used by most taxpayers.

Mark Wyssbrod Part 1 – Looking For Opportunity