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Random Tax/CPA question...

"LOLOL this is terrible advice" is a board meme.

I understood that the question was asking for practical advice. Of course, the ethical choice is to call the employer to point out the problem, but the OP didn't ask about that - he simply asked if he'd get hit with penalties or other consequences if he filed as is.
 
Here's one:

When I owned my business for 10 years, I had a CPA who handled all my tax stuff. Rearranged my work life, and was able to use Turbo Tax the last two years. Now I've worked since 3/19 as a 1099 contractor, just one income source, and am doing my own schedule C. My dumb ass didn't track mileage, so I'm going through the files to write off expenses such as vehicle maintenance, gas, and phone.

My questions are 1) Do I need to scan all these papers to submit, or just add it all up, claim it, and keep it in case of audit? 2) Can I do this in Turbo Tax in a married, joint file situation?
 
Here's one:

When I owned my business for 10 years, I had a CPA who handled all my tax stuff. Rearranged my work life, and was able to use Turbo Tax the last two years. Now I've worked since 3/19 as a 1099 contractor, just one income source, and am doing my own schedule C. My dumb ass didn't track mileage, so I'm going through the files to write off expenses such as vehicle maintenance, gas, and phone.

My questions are 1) Do I need to scan all these papers to submit, or just add it all up, claim it, and keep it in case of audit? 2) Can I do this in Turbo Tax in a married, joint file situation?

1) the latter 2) yes
 
Easy question for someone:
I'm helping my son do his taxes (who lives in another state). In 2018 he had a regular job with a w-2. He received a small refund on that tax return with both State and Federal. In 2019 he worked at a job who issued a 1099-misc. Turbotax says there is a $198 fee unless his 2018 tax liability is zero.
I can't really figure out if zero tax liability means he had no income in 2018 (which he did have income) or if it means he owed or didn't owe money to the IRS on his 2018 return.
Any help will be appreciated.

the 1099-misc did not take taxes out of his check this year.
 
Last edited:
Here's one:

When I owned my business for 10 years, I had a CPA who handled all my tax stuff. Rearranged my work life, and was able to use Turbo Tax the last two years. Now I've worked since 3/19 as a 1099 contractor, just one income source, and am doing my own schedule C. My dumb ass didn't track mileage, so I'm going through the files to write off expenses such as vehicle maintenance, gas, and phone.

My questions are 1) Do I need to scan all these papers to submit, or just add it all up, claim it, and keep it in case of audit? 2) Can I do this in Turbo Tax in a married, joint file situation?

Don't forget depreciation.
 
Easy question for someone:
I'm helping my son do his taxes (who lives in another state). In 2018 he had a regular job with a w-2. He received a small refund on that tax return with both State and Federal. In 2019 he worked at a job who issued a 1099-misc. Turbotax says there is a $198 fee unless his 2018 tax liability is zero.
I can't really figure out if zero tax liability means he had no income in 2018 (which he did have income) or if it means he owed or didn't owe money to the IRS on his 2018 return.
Any help will be appreciated.

the 1099-misc did not take taxes out of his check this year.

You owe estimated taxes based on the lesser of 90% current liability or 100% py liability.

Dont forget the 20% qbi deduction.
 
You owe estimated taxes based on the lesser of 90% current liability or 100% py liability.

Dont forget the 20% qbi deduction.

Thanks but that is even more confusing. Based on the scenario I posted did he have zero tax liability for 2018?
Sorry, I'm and idiot on this stuff.
 
Thanks but that is even more confusing. Based on the scenario I posted did he have zero tax liability for 2018?
Sorry, I'm and idiot on this stuff.
What he had paid in doesn't matter. 100% of the total tax on last year's return or 90% of this year's.
 
I received a 1099-div for my 401(k) this year. That didn’t seem right to me, so when I inquired about it, they said it’s because the account was structured to keep the dividends in cash (in the 401k) rather than reinvest them. They further said that, because I didn’t make any withdrawals, there is no taxable event. They have obviously reported this as income to the IRS, hence the 1099-div, so how do I avoid getting taxed on this money? Do they need to issue a corrected 1099?
 
I received a 1099-div for my 401(k) this year. That didn’t seem right to me, so when I inquired about it, they said it’s because the account was structured to keep the dividends in cash (in the 401k) rather than reinvest them. They further said that, because I didn’t make any withdrawals, there is no taxable event. They have obviously reported this as income to the IRS, hence the 1099-div, so how do I avoid getting taxed on this money? Do they need to issue a corrected 1099?


You don't report it and if you get a notice about it you write a response explaining the situation. That's weird though all of that should be handled through the investment vehicle that handles your 401-K.
 
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