Get an accountant...even H&R block will do.
Posted By: j.lo on 2009-01-08
In Reply to: Question for ICs or any former ICs - WindyCityMT
I made the mistake of doing the taxes myself one year (TurboTax)and ended up getting audited for that year 2 years later. Luckily it only cost me $1200 but I'm sure it could have been much worse. I just go to H&R Block. At least if I get audited again, they'll handle all the work AND pay my fine if it's something they messed up on.
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H&R Block
H&R Block always. The one time I didn't use them, I got audited and ended up having to dish out almost $3k in taxes & penalties.
best to have a brief consult with a CPA and I don't mean H&R Block
there are always a little bit of difference from state to state and where you live regarding a business license etc. Try to find a CPA that specializes in small businesses, especially if you can find someone who perhaps has other MT's for clients? The gist of an IC is you do not have an employer, so you do not have someone to withhold taxes for you. The thing that always throws IC's is the tax withholding stuff. They have a great fear about it. This is where the CPA will help you out a great deal so you can base decisions on facts, not fear.
You will have another form or to to fill out at tax time (Schedule C, etc.) and next year you will have to do quarterly payments, but it's not that hard.
Who Must Pay Estimated Tax
If you had a tax liability for 2005, you may have to pay estimated tax for 2006.
the IRS has a nice site for small businesses, use the link below. any specific questions, feel free to email me.
Here red this....H&R block was the one who told me about it first.
Top 10 Oddball Tax Deductions
TurboTax has outlined some outlandish tax deductions to help you increase your tax refund. We've uncovered what we think are the weirdest deductions allowed, from pet food to free beer to (we're not kidding) a girlfriend.
Can I deduct?
Admit it. As you've worked on your return, trying to come up with extra deductions to pump up your refund, you've taken a few flights of fancy. "Can I claim a deduction for all those blood donations at the Red Cross?" Nope.
"How about a charitable contribution for all the time I donate to the church?" Nope, again. "The wedding gift for the boss's daughter as an employee business expense?" Come on! On the other hand, over the years your fellow taxpayers have beaten the IRS in court on payments for many crazy things that most of us wouldn't even dream of claiming. We've uncovered what we think are the weirdest deductions allowed, ranging from pet food to free beer.
1. Pet food
A couple who owned a junkyard was allowed to write off the cost of cat food they set out to attract wild cats. The feral felines did more than just eat; they also took care of snakes and rats on the property, making the place safer for customers. When the case reached the Tax Court, IRS lawyers conceded that the cost was deductible.
2. Moving the family pet
If you are changing jobs and meet a couple of tests, you can deduct your moving expenses — including the cost of moving your dog, cat or other pet from your old residence to your new home. Your pet — be it a Pekingese or a python — is treated the same as your other personal effects.
3. A trip to Bermuda
This island is more than just a scenic place to visit: It's a great place to schedule a tax write-off. Business conventions held in Bermuda are deductible without having to show that there was a special reason for the meeting to be held there. That's a sweet perk.
Other countries in the Caribbean region qualify, too, including Barbados, Costa Rica, Dominica, the Dominican Republic, Grenada, Guyana, Honduras, Jamaica, Saint Lucia, and Trinidad and Tobago. Meetings held in Canada, Mexico and all U.S. possessions also receive this favorable tax treatment. Attend a convention in Paris, Rome or Beijing, though, and there's no deduction unless you can show it made as much sense to travel abroad as to head to Pittsburgh.
4. Body oil
A pro bodybuilder used body oil to make his muscles glisten in the lights during his competitions. The Tax Court ruled that he could deduct the cost of the oil as a business expense. Lest it be seen as a softie, though, the Court nixed deductions for buffalo meat and special vitamin supplements to enhance strength and muscle development.
5. A private airplane
Rather than drive five to seven hours to check on their rental condo or be tied to the only daily commercial flight available, a couple bought their own plane. The Tax Court allowed them to deduct their condo-related trips on the aircraft, including the cost of fuel and depreciation for the portion of time used for business-related purposes, even though these costs increased their overall rental loss.
6. Babysitting fees
Fees paid to a sitter to enable a mother to get out of the house and do volunteer work for a charity are deductible as charitable contributions, even though the money didn't go directly to the charity, according to the Tax Court. The Court expressly rejected a contrary IRS revenue ruling.
7. Breast augmentation
In an effort to get more tips, a stripper with the stage name "Chesty Love" decided to get breast implants to make her a size 56FF. A female Tax Court judge allowed Chesty to write off the cost of her operation, equating her new assets to a stage prop. Alas, the operation proved to be a problem for Chesty. She later tripped and ruptured one of her implants.
8. Landscaping
Sole proprietors who regularly meet clients in a home office can deduct part of the costs of landscaping the property. The deductible portion is based on the percentage of the home that is used for business, according to the Tax Court. The Court also allowed a deduction for part of the costs of lawn care and driveway repairs.
9. Free beer
In a novel promotion, a gas station owner gave his customers free beer in lieu of trading stamps. Proving that sometimes beer and gasoline do mix, the Tax Court allowed the write-off as a business expense.
10. Swimming pool
A taxpayer with emphysema put in a pool after his doctor told him to develop an exercise regimen. He swam in it twice a day and improved his breathing capacity. Turns out he swam in the pool more than his family did.
The Tax Court allowed him to deduct the cost of the pool (to the extent the cost exceeded its added value to the property) as a medical expense because its primary purpose was for medical care. Also, the cost of heating the pool, pool chemicals and a proportionate part of insuring the pool area were treated as medical expenses.
Bonus Oddball Deduction
A girlfriend. The owner of several rental properties hired his live-in girlfriend to manage them. Her duties included finding furniture, overseeing repairs and running his home. The Tax Court let him deduct $2,500 of the $9,000 he paid her. The disallowed portion was for nondeductible personal services.
Updated for tax year 2008
Now H&R block did specify in their tax rules that....sm
The animal had to be a dog and be over 50 pounds in order for it to count. I am taking advantage of everything that is legal as they have screwed us over long enough.
Actually, you can put a block on your credit report that
NO credit card companies solicit you at all. Look up the three credit reporting agencies online and see what their websites say. Experian, Equifax, and TransUnion. I don't get any at all except from American Express to my old business name.
As for the automated phone systems, I just push zero a bunch of times until I get a human. Impatient, I am!
yeah, me too, get about 20 a day anymore - block them - sm
that is what I do....granted a new crop comes in the next day, but I just keep blocking away. What is weird is I used to get a couple a day, now about a week or so ago it just went crazy and jumped to as you say 15-20 a day. I really don't want to change my email address either, so I guess I will just keep doing as I am doing, or else turn my Spamkiller back on.
You can block that number from reaching you.
They will block the number but not tell you who it is.
Call them right after a phone call comes in that is a hang up. Apparently, this happens a lot since SBC has an 800 number for this request.
Our block has parties a lot that go well into the night. sm
They have even had a couple of bands come and play. This was a problem last year for me because I needed my sleep and worked weekends. This year, it will be nice since I now work nights. For a short street, it is really lively.
Been around the block lots of time but tell me
what is padding? I have worked in this field for over 30 years now. I have very good speed and regular typing I could do at least 2000 per day. Now with VR and straight combined I do about 3200 per day. My audio will not go that fast in order for me or anyone to do 1000 per hour. The most I have done in an hour (without having to slow the machine down, listening only) was about 600. It cannot be done with my audio system, totally impossible as fast as you can set it.
I've used H&R Block TaxCut
on-line mainly because over the years I've needed "people"  to help with questions on tax issues that were a little complicated, especially last year with a move, partial-residence state taxes, sale of home, etc. I've not had any complaints with it. I paid for the highest service last year so I had unlimited access for questions, and the guy was really great, reviewed and signed the tax returns and actually called me with some questions. I've considered going to TurboTax though in the future because so many seem to like it, just haven't made the switch since I've got everything stored with TaxCut so far.
Yes, they can selectively block sites...
I worked for a company who did that. They had a list of approved sites that we could access, such as onelook, rxlist, physician search sites, E-mail, etc. They would also allow the MTs to put in requests for sites we thought should be added to the "allowed list."
Be careful doing that unless you somehow block out the pt name - could be illegal. nm
?
A friend of mine also had a bad experience with H&R Block
nm
How terrible. They can now block off the tear duct to
help keep moisture in the eyes. I had the temporary one put in and it really did help. I had one eye done and am not happy but I do not have the problems you do. It is so hard to know if you will be in that small percentage with bad results. I hope something is found to help relieve or correct some of the problems you are having...good luck and best wishes.
Preferences? Setting up NP with Doc signature block
Need to set up nurse practitioner dictator with Doc signature block, think I know how it should be set up but it's been awhile. Any current examples or preferences of how anyone likes to do this? Thanks.
Great idea. Thanks. I've had a mental block on
nm
Can an employer use software to search what is on your computer and how can you block this? (sm)
When an employer downloads their program onto your computer can they put software on it so that they can get into your computer and see what is on it, such as folders, files, etc? If so, is there any way to block it? This just popped into my mind the other day and I was wondering about it. 
Not an accountant
I am not an accountant -- you can ask a financial advisor or someone. I do have a business, business license - pay city business tax, etc. Registered name with the state. So for me I can. Also should clarify that what you can contribute does depend on what your income is after your business deductions. I cannot claim all of the 10K that I contribue because after all my deductions my income does go quite low. But I continue to contribute it to both an IRA and SEP so that I can maximize my deductions. But being an MTSO/IC does give me more usable income because I do maximize my deductions and plan for the future.
Man! Do I pay a lot for my accountant!
I've given him 22 of the best years of my life, two children, and I do most of his cooking!
But, seriously, my husband is a CPA, and yes, he uses TurboTax. He uses the professional version which has a few more bells and whistles, but that's what he's used for years, and that's what he recommends. In fact, he really wishes his "shoebox and paper bag" clients would just learn to use TurboTax. He has to do corporate returns by March 15, and those suck the life out of him. He doesn't even bother with anyone's personal returns until after March 15.
Unless you have a complicated list of investments, unusual expenses, multiple businesses, or nonprofit stuff to file, you probably would manage just nicely with TurboTax.
As for me, my return is already completed. If he doesn't do it now, he won't have time to finish it in April. I haven't done a tax return since I was 21 years old. :) Lest you feel jealous, know that he can't do a darn thing mechanical around the house, and he snores like a bear! Happy New Year, and Happy Tax Season!
I am going to be an accountant -
I will graduate in December with my associates degree and then on to a job somewhere out of transcription while I work on my 4-year and CPA.
MT to accountant?
I am looking at going into accounting (associates degree - obtaining it on-line). Does anyone have any thoughts, opinions, ideas, suggestions, anything that might be helpful or useful to help guide my decision as to whether or not to pursue it? It will cost me about $8000 over the next 2 years, but I will be able to continue to work full-time as an MT, though will be trying to juggle full-time MT, full-time school, and a 2-year-old, so it will be interesting. That's about it. Any opinions are well appreciated.
Unlisted number, caller ID, and block unknown callers.
I think it's *67 to block unknown callers and *69 to find out last unblocked caller. There is another key combination to press when you want the phone company and/or police department to trace nuisance calls. You can fight this. Public edcuators have it rough. First, no respect in the classroom, then these punk kids think they can mess with you at home. Fight back. Escalate it to police chief, mayor, and supervisor of the phone company if you're getting nowhere with the lowly peons.
per my accountant - and being on production
being on production, you don't know what you're going to make - so it doesn't apply to us. In the beginning, I used to pay quarterly. I now pay annually and the IRS just returned $3700 in overpayment to me for this year. Yep, I just recently received a check back for overpaying my 2005 taxes!!! As long as you pay and on time, the IRS lets us do this. Been doing it this way for years now and I have no IRS problems *thank goodness*
Better get a better CPA/accountant if they don't tell you these things......or maybe different strokes for different states, but I don't think so.
I pay yearly also....per my tax accountant. sm
It doesn't matter as long as you pay - quarterly, yearly, etc.
You really need a good accountant. sm
SS# is fine. You will need to give your contractor a 1099 at the end of the year and deduct her income off of the top. That is a deduction for you from your gross.
Really, though, you need an accountant because things do tend to get a little tricky.
Good luck!
Check with accountant
Pay the money and get do a consult with an accountant so you can understand the basics and know what and what not to do. The money is well worth it. Or get an old copy of Turbo Tax for self employed to see what you can and cannot use for deductions. All of my accounts use by SSN on my 1099 which will will receive from them and in turn prepare a 1099 for your IC or subcontractors. Be sure that they meet the requirements for IC's. Go the IRS website and this will give you some information but again I cannot stress with all of those who are starting out find a good accountant and get their expertise advice. After 2 to 3 years of having my account handling my business, and our joint tax returns and advice, I am now able to do it on my own with Turbo Tax for the past 15 years but to begin with you need some expert advice. I am not knocking you but it really sounds like you do not have an understanding of even the basics of how to handle the taxes and finances of your business so you need to do some homework and get some advice. It is simple but again with his/her help you will know that what you are doing is correct and that will cause a lot less headaches in the years to come.
Patti
Yep, me too. My accountant deducts these
every year and I am a regular employee, not IC.
Thank you. My accountant has given me advice.
He said I should pay the contractors less.
Yes, the point was for me to make money.
What I'm saying is that it is tough. Not just for MTs. It is a tough business right now. There are lots of companies who can snatch my accounts easily. MTs want more money, clients want faster TAT, I have to be able to afford my equipment and business overhead (and it is SLIM, very lean) but apparently I am the one who is supposed to do without.
Everyone keeps saying to just pay less. Then MTs will quit. Then I'll be forced to send work overseas.
It's a mess.
Appreciate your reply, though.
I'd get a new accountant. I work FT as an
employee, have since day one and I can itemize and claim everything but the self-employment taxes.
become an accountant or personal trainer
Although I dont make under 10$ an hour as an MT, try working more as my supervisors and managers have told me in the past when I have asked for a raise. In all seriousness, where do you work that you make that little? Are you paid by the line and how much? Switch companies, do not accept less than 8 cpl. I saw an ad for MDI and they start you at 8.5 cpl. IC's usually make 9+, if you do not need the insurance coverage.
Hmm. Every doc, nurse, attorney, accountant
I know is making WAY good money and none are working at McD's!!! LOL
I dunno know - leave it up to my accountant. That is what I pay him for. nm
x
If you had an accountant do your taxes, contact him or her. nm
x
See an accountant. I'm sure you saved your old income tax
zz
get an accountant -- you can take off their fee as a tax deduction and to me, it's worth it to ma
sure my taxes go in quarterly and correctly so that I don't get slammed at the end of the year!
Taxes regarding self-employed = getting an accountant
Get yourself one, and he'll explain everything you need to know.
I wouldn't file w/o an accountant. sm
I know some use Turbo Tax and the like with success, but I like the security of having an accountant tell me what I can and cannot deduct based on my personal situation and facts. You can find private CPAs that don't charge an arm and a leg and the amount is also tax deductible. Our CPA does our taxes and answers questions throughout the year for a very nominal flat annual fee. Well worth it, especially if you ever get audited.
Don't forget the accountant's/bookkeeping
Legal fees, Internet service, subscriptions, dues to organizations, repairs to equipment, % of office space, postage (if applicable), mileage (if deliver/pickup), advertising (if applicable), security system (burglar alarms, etc. if applicable),probably more I can't think of right now.
Why don't you ask the accountant who did your taxes last year?
I'm sure they are better able to answer that question than anyone here.
I suggest you seek out an accountant sm
Since you have no experience as IC, you really need to talk to an accountant. Honestly, that is the only way to be knowledgable about it. I had to do that 18 years ago when I started as IC. Each year, the tax laws are updated, new write-offs, things you were deducting can't be deducted anymore, etc.
I have had the same accountant now for about 12 years, and he is not that expensive. Last year, he charged $180. Not too bad.
I would call a tax attorney/accountant in
x
That's right. Would you give your plumber or accountant a raise?
Or, since they're a business and not your employee, would you expect they will raise their own rates when necessary?
You need to talk to accountant. His fee is tax deduction, you will want several dedections each
6
Don't worry about what you have to pay an accountant. You'll make it up
you OVERPAID your taxes by almost $4K? Sounds like YOU're the one who needs a better accountant.
x
I'm repeating what my accountant told me. Go argue w/him I guess.
He said find out what you need to make and then multiply that x 3.
I paid at least 30% tax last year, or more. even with my piddly deductions.
Do u think a lawyer or accountant or doc has "QA" person - nope, if they screw up... they scr
As an MT, we know what our job is period. WE produce a report at 98% quality or better. This should be done without QA as we should take pride in our work and make sure it is correct. Of course, then again, we are "tested" for a job. Other professionals are not. I refuse to be. If a company mentions a "test" that is a big turn off for me.
Bottom line - know what you are doing and complete an accurate report (within 98% for human error rate which we all have) or learn another field... not a hard concept
Block her E-mail, return mail unopened
On AOL I can determine who I want to receive mail from and block those I do not -- and if they are blocked they get their E-mail back as being "undeliverable". If she sends things out -- send back --unaccepted. But to be simple just E-mail her back or call the recuriter if you don't want to deal with her directly and state -- leave me alone. If she is in another state you should not be scared of her but you may simply have to put it out there in no uncertain terms.
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