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3 weeks ago
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As a business owner, it’s important to know how you should treat payments you make to the people who work for you. The simplest explanation is that an “employee” has taxes withheld from their paych...
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As a business owner, it’s important to know how you should treat payments you make to the people who work for you. The simplest explanation is that an “employee” has taxes withheld from their paychecks and receives a W-2 at tax time - while “contractors” receive a Form 1099-NEC (and are considered self-employed). In reality, the IRS has some common law rules on whether a worker is an employee or an independent contractor.
These rules are generally based on how much control an employer has over the work and the type of business relationship. As a business owner, if you’re not sure how to classify your worker, the IRS will happily step in on your behalf and make the determination for you. If you get it wrong, your worker can reach out to the IRS themselves and have them “take a look” at all the facts and circumstances of your business relationship. That can be time-consuming and costly so it’s best to get it right from the start!
Resources for Business Owners:
What is Form 1099-NEC? - All about the 1099-NEC!
The Difference Between a 1099 and a W-2 Tax Form - Easy to understand differences.
Form W-9 - What Is It and How Is It Used? - The must-have form before paying independent contractors.
What is Quick Employer Forms? - The tool to file your W-2 and 1099-NEC forms & more.
How do I create W-2 and 1099 forms for my employees or contractors? - How to get there if you’re using TurboTax Online or TurboTax Desktop.
Can TurboTax handle W-2 and 1099 forms for a large business? - You’re good for up to $10 million worth of forms to report for the year.
On-Demand Jobs and Your Taxes
The Self-Employment Tax - Make sure contractors are aware they need to pay self-employment taxes.
A Guide to Self-Employment Taxes for Contractors, Freelancers, and Beyond [Infographic] - Nice graphic on how the self-employment tax works. Great to share with your contractors.
How to File Taxes as an Independent Contractor: Tax Forms, Deductions, and Credits for Freelancers - More on how your contractors will file their taxes.
If you need tax advice or have questions that aren't answered in the links above, please ask in our Taxes forum that best fits your needs!
3 weeks ago
I cannot find my forms. I need them for my city.
3 weeks ago
1 Cheer
if it works it may be cheaper that what online costs. however, I'm guessing most desktop users will not go this route because it's W11 that they're opposed to. for example, if you don't make the prop...
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if it works it may be cheaper that what online costs. however, I'm guessing most desktop users will not go this route because it's W11 that they're opposed to. for example, if you don't make the proper selection when setting it up, you may find that documents you create are stored on the web in One Drive. that's exactly the thing desktops users are trying to avoid - having their documents stored in cyberspace. one drive, I know this for a fact because I created an Excel worksheet and found that without my explicit consent, because of the way I set up W11, it was stored in One Drive, whether this applies to only MS documents or others is unknown.
the other issues of getting a new computer, is installing all the apps that were on the old computer. some may fail (a fact even in compatibility mode). sometimes the OP downloaded the app from a website that no longer exists but needs to be registered to work.
for me I got W11 VM finally set up on my W10 and will try that, next would be W11 installed on second hard drive on my W10. last would be a cheap laptop.
some had suggested that all that's needed is to modify a line or so in the W10 registry. they say they'll report back on success or failure
3 weeks ago
Note an error in TurboTax for California Form 568 - For 2024, I marked that my business (an LLC) was closed in 2024. Possibly for that reason, line 3 "2024 annual Limited Liability Company tax" came ...
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Note an error in TurboTax for California Form 568 - For 2024, I marked that my business (an LLC) was closed in 2024. Possibly for that reason, line 3 "2024 annual Limited Liability Company tax" came out marked as zero !! There was no way to modify that line (needed to be 800 dollars) !! I spent over two hours on phone calls to TurboTax assistance but to no avail, so I had to file with this error (the form showed that I am due a refund, as I did pay the 800 earlier, as required). I just received a letter from the California Franchise Tax Board pointing out the error on my 568 form (i.e. zero balance, no refund, as I knew but TurboTax erred !!) Annoying that there's no way to tell TurboTax about errors -- I have few more ....
3 weeks ago
Where/when did you buy it? If you bought it directly from TurboTax we could have told you how to get the other program for Windows. Otherwise How to contact Turbo Tax https://ttlc.intuit.com/comm...
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Where/when did you buy it? If you bought it directly from TurboTax we could have told you how to get the other program for Windows. Otherwise How to contact Turbo Tax https://ttlc.intuit.com/community/using-turbotax/help/how-do-i-contact-turbotax/00/26991
3 weeks ago
I have two laptops, one Windows and the other a Mac. I primarily use my Mac. I purchased the TurboTax Desktop Deluxe for my Mac. After I installed it I attempted to run the program but it would not o...
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I have two laptops, one Windows and the other a Mac. I primarily use my Mac. I purchased the TurboTax Desktop Deluxe for my Mac. After I installed it I attempted to run the program but it would not open: it stated that it only runs on Mac OS version 13 or later. I have 11. I had to purchase the same product again for my Windows laptop. I was able to complete and file my taxes. Now, I want to return the first purchased and get a refund. The number [phone number removed] is not active. Is there any way I can return this product for a full refund?
3 weeks ago
I just researched the current TurboTax system requirements and found a Windows 11 Mini PC on Amazon for $140, which appears to easily satisfy those requirements. Perhaps this could be a plan B altern...
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I just researched the current TurboTax system requirements and found a Windows 11 Mini PC on Amazon for $140, which appears to easily satisfy those requirements. Perhaps this could be a plan B alternative, albeit a distasteful one 😄
3 weeks ago
It would be nicer if "Add a State." was called "My tax return needs more work". @rmoreno716
3 weeks ago
Does it make one wonder if this explains why some taxpayers print and mail their returns? 😄
3 weeks ago
thank you for the quick reply. are you familiar with any options other than manually imputing close to 1000 transactions
3 weeks ago
Your W-2 box 1 wages reports your total taxable income. The IRS has also announced that they will not be changing the W-2 form for 2025, so your OT will not be reported on your W-2 at all. That mea...
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Your W-2 box 1 wages reports your total taxable income. The IRS has also announced that they will not be changing the W-2 form for 2025, so your OT will not be reported on your W-2 at all. That means you will report all your taxable income, then you will have to self-report the overtime amount. We don't know what those questions will look like in Turbotax. But Turbotax will never see your pay stub.
The part that is tax-free is only the half-time for working 40 hours or more, not your base pay, and only up to $12,500 per year, and only if your income is less than $150,000.
Meaning that, if you work 60 hours at $20 per hour base pay ($30/hr OT), the tax-free portion would be 20 hours x $10.
3 weeks ago
2 Cheers
@Opus 17 wrote: To deduct property taxes, you must be a legal owner I previously thought that too, but the Courts have repeatedly ruled that property tax can also be deducted for an e...
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@Opus 17 wrote: To deduct property taxes, you must be a legal owner I previously thought that too, but the Courts have repeatedly ruled that property tax can also be deducted for an equitable owner. [EDIT: While I was looking up citations, Hi Palms beat me to it. LOL.] As with mortgage interest, we have held that taxpayers who do not have legal title to property may nevertheless deduct property taxes paid with respect to the property if they establish equitable ownership of the property. See Trans v. Commissioner, supra; Uslu v. Commissioner, supra. Because we have found petitioners to be the equitable and beneficial owners of the residence property, we accordingly find petitioners are entitled to the claimed Schedule A deductions for real estate taxes on the residence property. https://www.taxnotes.com/research/federal/court-documents/court-opinions-and-orders/beneficial-owners-of-property-allowed-to-deduct-interest-and-real/1pntx?highlight=Njenge As in the case of mortgage interest, we have held that taxpayers who do not hold legal title to property but who establish they are equitable owners of the property are entitled to deduct property taxes paid by them with respect to the property. See Trans v. Commissioner, T.C. Memo. 1999-233 [1999 RIA TC Memo ¶99,233]; Uslu v. Commissioner, T.C. Memo. 1997-551 [1997 RIA TC Memo ¶97,551]; Conroy v. Commissioner, supra. https://bradfordtaxinstitute.com/Endnotes/TC_Memo_2000-360.pdf
3 weeks ago
1 Cheer
@Hi Palms wrote:
There is no rule allowing a beneficial owner to deduct the taxes.
Tax court cases have permitted the deduction when taxpayers have proved they are equitable owners of ...
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@Hi Palms wrote:
There is no rule allowing a beneficial owner to deduct the taxes.
Tax court cases have permitted the deduction when taxpayers have proved they are equitable owners of the property on which they have paid property taxes imposed by local goverments.
The problem is that the treasury regulations specifically say that equitable owners may deduct mortgage interest, but taxes can only be deducted by persons with an "interest" that incudes "fee-ownership and co-ownership." §1-163.1 and §1-164.4. If the Tax Courts have extended the equitable ownership rule, they are going outside the regulation (which they are allowed to do -- but on the other hand, Tax Court rulings do not create binding precedent on other Tax Court judges.) And if such cases go before the court it means that auditors are (at least sometimes) denying the deduction, which forces the taxpayer to take it to court.
However, I agree there is at least a good argument for deducting the tax in spite of the regulation. I would like to read at least one of the cases if you have a citation available.
3 weeks ago
1 Cheer
There is no rule allowing a beneficial owner to deduct the taxes. Tax court cases have permitted the deduction when taxpayers have proved they are equitable owners of the property on which th...
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There is no rule allowing a beneficial owner to deduct the taxes. Tax court cases have permitted the deduction when taxpayers have proved they are equitable owners of the property on which they have paid property taxes imposed by local goverments.
3 weeks ago
3 weeks ago
1 Cheer
Dave @deductible Duck is committed to making the software a good replacement for the Intuit walkaway. There were a few rough spots in getting it running, but a few email exchanges with Dave set i...
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Dave @deductible Duck is committed to making the software a good replacement for the Intuit walkaway. There were a few rough spots in getting it running, but a few email exchanges with Dave set it right. All looks good now. I have not been able to get too deep into it as my first donation (my motorcycle to T2T) put me over the "free" limit, but it looks a lot like the Intuit product. So far I think I will be happy with the product, and know I will be happy with the customer service.
3 weeks ago
@louis-girardin It is too late to import a broker statement for 2024 into tax software. They are getting ready for 2025. Get the statement online and key in your amounts by hand.
3 weeks ago
No tax on Overtime. We don't know yet how it works in Turbo Tax. See https://turbotax.intuit.com/tax-reform Scroll down to Reduced taxes on overtime. It says….. Like the new tax provision for tip...
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No tax on Overtime. We don't know yet how it works in Turbo Tax. See https://turbotax.intuit.com/tax-reform Scroll down to Reduced taxes on overtime. It says….. Like the new tax provision for tips, the new provision for overtime introduces a deduction for qualified overtime income up to $12,500 for tax years 2025 through 2028 and phases out for income above $150,000. While this deduction can lower your taxable income, it is not a dollar-for-dollar reduction of your taxes and the actual tax savings will depend on your tax rate. See IRS Schedule 1-A part III No Tax on Overtime for how it shows on your tax return. https://www.irs.gov/pub/irs-dft/f1040s1a--dft.pdf
3 weeks ago
The link does not take you to a login screen. I was told by Intuit support that you have to purchase the current year before you are able to access previous years. This is very inconvenient, as I sho...
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The link does not take you to a login screen. I was told by Intuit support that you have to purchase the current year before you are able to access previous years. This is very inconvenient, as I should be able to access 2024 and 2023 forms without purchasing 2025
3 weeks ago
1099 import for 2024 broker statements (Raymond James). the only option to select is for 2025 1099s that will not be issued until 2026
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