The Tax Preparation Blog

Posts Tagged ‘tools’

Question: 1099 re pipeline rental vs pipeline transportation agreement?

If I have a transportation agreement with a natural gas company that allows them to transport gas through pipeline that I own and maintain, how should this be reported on the 1099 that I receive. The debate is that the contract is for transportation fees and not for rental fees. They do not maintain the pipeline, I do, so that is why their tax dept feels that it should not be classified as rental but, instead as non-employee income. Any Professional advice is greatly appreciated.

Answer: You lose.

Direct from the 1099-Misc instructions:

“Do not report oil or gas payments for a working interest in box 2 [royalties]; report payments for working interests in box 7.” And yes, it DOES make this income for self-employment purposes.

The IRS made their ruling in 1958. You would have to have had zero expense in building/maintaining the pipes to be classified as a ‘royalty interest.’

Henrico business licenses for March 1

The following are recently issued business licenses in Henrico County. Alicia’s Artistic Hair Personal (beauty parlor); licensee same, 5902 Upham Drive, Henrico 23227. Elijah A. Anyieth (tax preparer/consultant); licensee same, 9198 Cloisters West, Henrico 23229. KJMA Contractors (personal services); licensee Walter Allen, 5300 Glenside Drive, Henrico 23228.

Contractor Insurances

Question: My husband is a CDL truck driver. what he has told me is that he can claim a $55 dollar a day?

per diem for meals and other expenses on our taxes.

How would that be filed on our tax papers? An itemized deduction? I usually do our taxes but im seriously considering a professional tax service this year because im confused about this.
Thank you for the information!

Answer: I would add that the ME&I per diem rate is only for days when overnight travel is involved. Some truckers with local routes incorrectly think they can take it even though they are home for dinner each day.

Also the rates are higher for those involved in transportation industries, if the trucker finds himself in high cost localities sometimes. That rate is $52 per day.

Those subject to DOT hours of service limitations can deduct 75% of the appropriate per diem rate rather than 50%. In 2008 that level increases to 80%.

Anti-tax group says state could save by cutting state salaries and jobs

Cut state employee salaries, cut state employment and merge state agencies. That’s the way to erase a $4 billion state budget shortfall, the anti-tax group Americans for Prosperity told a news conference yesterday. But two of the General Assembly’s most conservative members, Dels. Benjamin L. Cline, R-Rockbridge, and Brenda L. Pogge, R-York, avoided endorsing the proposals as they stood beside …

Profits in Progress: Handwriting notes professional services

Question: Accuracy of employment/school history on N-400?

I’m filling the N-400 as we speak. I have been through many jobs in the past 5 years, 3 of them have been stable. One of them I worked for 1 day and quit. I received payment for my services (W-2). I don’t think I included that day of pay in my taxes either.

I also worked for another company for 3 months but left afterwards.

Do these details need to be included? They don’t seem too significant in terms of my career or academic history.

I was also going to school at the time. Unfortunately the schools I went to don’t have academic calendars online for the years I attended. Should I just approximate the dates based on their current academic calendar? Usually they’re only off by at most a week.

Any suggestions or clarifications on the matter will be helpful.

Thanks.

Answer: List all your jobs worked, even the one day one. They are asking for this information for the background check, not because they care about your career.
Yes, it is fine to approximate dates if you don’t know the exact ones

New online pay available for county taxes

You can now pay your property taxes online with a credit or debit card.

OIC IRS Offers and Payment Plan

Question: Best online tax return service?

What is a good free online tax return site to use. I need to file a federal 1040 with schedule B for itemized deductions. I think turbo tax and TaxAct are a couple but looking for suggestions of what people have used and if it is secure.
I didn’t think TurboTax allowed you to do a full return – only a short form.
I’m looking for a free service.

Answer: I have used both and either one works fine, but if you will start on the IRS site it will give you their choices for your state. I feel better doing it this way and you get to choose. It will be free if you don’t make tons of money but you will have to pay about 13.00 for state, give or take, if you what to do it at the same time. I really like being able to do my own taxes on line now. Hope this helps.

Sales tax breaks on the rise in Iowa

The cost of sales tax exemptions has roughly doubled in Iowa since 2001, reaching at least $2.4 billion in forgone revenue, according to a report by the state’s revenue department.

eSmart Tax Online Tax Software by Liberty Tax Service

Question: I have…for the 1st time EVER….5 tax returns to do. Do online Tax companies charge extra for that many?

I ALSO owe $180 from last year that I NEVER pd. What happens NOW…when I do my taxes via an online site? TaxAct is what was used last year! PLEASE help…. Thanx,.Cindy

Answer: Do you mean you are doing 5 different peoples’ tax returns or yours from 5 different years. If you are talking about 5 w-2 forms, then you only need to do one tax return with all of them on the same one. I would take all of your paperwork and info to a tax prep. place like liberty tax and have them look over it. They do not charge a sitting fee, so if the price they give you is too high you can leave and not owe anything. But they should give you a good idea of what your return will look like and what you will owe or receive.

Harry Domash, Jan. 3, 2009, Online Investing: Seven dividend-paying stocks to consider

I’m going to describe seven stocks to consider for 2010. You won’t find Google or Apple on the list. Instead, they are all dividend-paying stocks.

How to File Your Taxes Online : Turbo Tax Tips