Tax questions answered here

[Gavin]

Would be glad to answer a few tax compliance questions if you don't know what to do. CPA with 20 years in tax practice. Don't have the time to answer many free questions, busy with paying clients, but will answer 2 per day, and answer backlog in order.

 

[Deadstream]

Gavin.  If  I receive a 1099 working for a buddy this summer/fall do I need to worry about quarterly taxes or can I just pay up at the end of the year?  What is the threshold and will it count for disability insurance quarters, etc.   Thanks!

 

[Gavin]

Disability is the pickle in that deal. Will PM you when closer to a keyboard.

[Deadstream]

34 minutes ago, Gavin said:

 

Disability is the pickle in that deal.

 

I don't draw disability. Just wondering how they figure that out 1/4 wise.  If something bad happened and I had to.Thanks.

[ollie]

Gavin, looked at becoming a CPA at one time or opening my own tax office.  That was 10 years ago and I still "enjoy" doing taxes.  Really, I must be crazy because it intrigues me to no end.  I was in charge of a Block office in my area for a year.  At that time I was just working part time and never made enough money to justify going full-time.  Found another job and have been at it for 10 years now.  I'm thinking maybe when I retire I will pick it back up for extra cash.  The only ones that really bothered me were the farming income.  lol  You should have a good clientele built up by now I would think.  Before this current job I also considered becoming a EA.  Congrats to you, most CPA's I know have been at it a long time as well.

[Gavin]

DS, it depends on how much you have withheld from other sources, and the amount of tax you paid in 2016. You only have to pay in 90% of your current year tax liability, or 100% of last years tax liability (110% if you are high income) to avoid penalty. If you are covered from other sources make them wait until April 15th for your money, if not pay estimates. You might need State estimates too.

I'm assuming that your going to get a 1099-Misc for non-employee compensation. Report that income on Schedule C and you can apply any unreimbursed expenses against that (Mileage, Tools, Office Supplies, etc.). The net amount will be subject to the 15.3% Self-Employment tax(FICA & Medicare), plus Federal, State, and Local Income taxes but would not qualify you for unemployment. Hope this answers your question.

Ollie, it would not be hard to get back in. The industry is starving for good people. 

 

 

[Fish Ogre]

Gavin,

In the past, I have always done my taxes myself.  But this year I am considering seeing a professional.

What can I expect the services of a CPA to cost me in preparing my tax return this year and advising my on future possible deductions?

I have a day job with a standard W-2.
The last several years I have not had enough deductions to file long form and have just filed with the standard deduction.
I started doing some work on the side last year and received a 1099.
I have a home office deduction, some mileage, a cell phone bill and a few misc computer/office supply expenses.

Thanks

[Gavin]

Think you could find a CPA to do for $250. Block would probably be around $200.

[Terrierman]

Gavin:

1.  Is it true that H&R Block hires streetcorner people to do taxes for their clientele?

2.  Can you figure out a way I can deduct the money I spend on ethanol as a medical expense?  I read somewhere that wine is good for me.  It should be deductible.

[Norm M]

 

Gavin:

1.  Is it true that H&R Block hires streetcorner people to do taxes for their clientele?

2.  Can you figure out a way I can deduct the money I spend on ethanol as a medical expense?  I read somewhere that wine is good for me.  It should be deductible.

 You better drink more booze than is good for you . Even with all my cancer related medical expenses I fell short of qualifying for the exemption .