xp - that is highly likely.
― sarahell, Sunday, 1 April 2012 22:43 (twelve years ago) link
That's what everyone's told me. But you'd think the IRS would send a letter or something letting me know it'd done it.
― Exile in lolville (Alfred, Lord Sotosyn), Sunday, 1 April 2012 22:44 (twelve years ago) link
they generally do send letters when they do this.
― sarahell, Sunday, 1 April 2012 22:46 (twelve years ago) link
Did you learn about it from the IRS, or from your tax preparer?
― Whiney Houson (WmC), Sunday, 1 April 2012 22:46 (twelve years ago) link
IRS.
― Exile in lolville (Alfred, Lord Sotosyn), Sunday, 1 April 2012 22:47 (twelve years ago) link
i've been reading some message boards about the irs and i'm pretty sure you're going to prison? idk
― goole, Sunday, 1 April 2012 22:48 (twelve years ago) link
b-b-but I've said nice things about Reagan!
― Exile in lolville (Alfred, Lord Sotosyn), Sunday, 1 April 2012 22:49 (twelve years ago) link
I always do the taxes for my household. I have for my entire adult life. This encourages me to keep our finances quite simple and straightforward, but it also means I fully understand where our money comes from and where it goes. This seems a Good Thing.
― Aimless, Monday, 2 April 2012 23:23 (twelve years ago) link
lol last time I turn to a bunch of internet hardmen for tax advice -- I'm saving my $20 and copying the stuff that it filled out for me and submitting a hard copy.
― Où sont le Lord Custos d'antan? (Leee), Monday, 9 April 2012 00:21 (twelve years ago) link
gah our tax system really sucks can't believe I owe money MAYBE I SHOULD GET SOME HOUSES AND KIDS
― iatee, Monday, 9 April 2012 02:54 (twelve years ago) link
I haven't had a refund in years. But then I don't pay a lot from my check either. I basically pay the minimum to avoid the under payment penalty.
― Jeff, Monday, 9 April 2012 03:00 (twelve years ago) link
MAYBE I SHOULD GET SOME HOUSES AND KIDS
Houses? Sure. Buy small ones, tho. And if you want to come out money ahead, skip the kids.
― Aimless, Monday, 9 April 2012 04:33 (twelve years ago) link
xxp - maybe it's because you make a lot of money (relatively speaking), iatee?
― sarahell, Monday, 9 April 2012 04:44 (twelve years ago) link
If he were making money, he wouldn't be paying taxes. /half-joking
― Où sont le Lord Custos d'antan? (Leee), Monday, 9 April 2012 04:45 (twelve years ago) link
no, it's true -- it is really atrocious (to me) the way passive (investment) income is taxed so low relative to earned income. They should be taxed the same imo.
― sarahell, Monday, 9 April 2012 04:46 (twelve years ago) link
rly, rly do not make a lot of money
― iatee, Monday, 9 April 2012 05:00 (twelve years ago) link
More than $15,000 per annum, amirite?
― Aimless, Monday, 9 April 2012 05:01 (twelve years ago) link
more...by exactly $3
― iatee, Monday, 9 April 2012 05:05 (twelve years ago) link
well... there you go!
― Aimless, Monday, 9 April 2012 05:06 (twelve years ago) link
the eitc needs to reward poor people *without kids* not poor people *with kids*
― iatee, Monday, 9 April 2012 05:08 (twelve years ago) link
People with kids consume more apple pie and play more baseball. This is what makes America great.
― Aimless, Monday, 9 April 2012 05:19 (twelve years ago) link
dude, if you owe federal tax on $15k a year, either it's from self-employment income or your withholding is seriously fucked.
― sarahell, Monday, 9 April 2012 07:11 (twelve years ago) link
http://www.businessweek.com/printer/articles/18010-the-people-vs-dot-the-irs
― dandydonweiner, Monday, 9 April 2012 11:01 (twelve years ago) link
yeah my withholding is messed, but I'm mostly just offended that there isn't a single deduction or tax credit that I (/ the gf) qualify for.
― iatee, Monday, 9 April 2012 13:53 (twelve years ago) link
Do you pay student loans? Deduct the interest.
― Jeff, Monday, 9 April 2012 13:59 (twelve years ago) link
no I don't maybe I'll get some
― iatee, Monday, 9 April 2012 13:59 (twelve years ago) link
alfred: statute of limitations for audits is 3 years, and 10 years from date of assessment for a tax liability. i think you're fine.
― kurwa mać (Polish for "long life") (Eisbaer), Monday, 9 April 2012 14:40 (twelve years ago) link
for COLLECTION of a tax liability.
― kurwa mać (Polish for "long life") (Eisbaer), Monday, 9 April 2012 14:41 (twelve years ago) link
Thanks! I also read, however, that if you DON'T file taxes at all there's no statute of limitations. So be warned.
― Exile in lolville (Alfred, Lord Sotosyn), Monday, 9 April 2012 14:41 (twelve years ago) link
there isn't a single deduction or tax credit that I (/ the gf) qualify for
Not even the 'standard deduction'? Even if you can be claimed as a dependent by someone else there is a minimum standard deduction of $950, and you and the gf might qualify for that deduction up to $5800 - presuming you are each filing as single. Ferret out IRS publication 501 and fill in the worksheet on page 24. And don't forget about the 'personal exemption', either!
― Aimless, Monday, 9 April 2012 15:41 (twelve years ago) link
yeah I meant beyond the standard deduction
― iatee, Monday, 9 April 2012 15:43 (twelve years ago) link
not that smaller deductions would matter w/ that in mind, it's still insulting that there aren't any that affect me. my gf could have deducted books n'stuff for grad school but it didn't come close to approaching the standard deduction.
― iatee, Monday, 9 April 2012 15:45 (twelve years ago) link
i don't have any figures, but there are many millions of wage earners who don't itemize, so you are in a crowded boat. Mortgage interest is the biggest reason to itemize. Pretty much the only other way to make itemizing pay off for ordinary people is to have a shit ton of medical expenses and who wants that?
― Aimless, Monday, 9 April 2012 15:56 (twelve years ago) link
so my gf is filing a schedule c for her grad stipend - can we submit that without pay stubs?
― iatee, Monday, 9 April 2012 16:10 (twelve years ago) link
that's a good question! but i don't know the answer. no expert, etc.
generally speaking, the documentation is only really going to matter if you're audited, and the audit risk on small potatos tax returns is vanishingly small. i would expect her grad school has a record of it somewhere, so if they try to pinch you, you can probably dig up some proof and beat the rap. just read the irs instructions slowly and carefully before you file to make sure you understand them.
― Aimless, Monday, 9 April 2012 16:25 (twelve years ago) link
yeah I think a lot of her grad school friends just pretend like they don't have to pay taxes
― iatee, Monday, 9 April 2012 16:31 (twelve years ago) link
xp - was it reported on a 1099 Misc? Generally stipends/fellowships for grad school are considered wages (not subject to self-employment tax).
― sarahell, Monday, 9 April 2012 16:44 (twelve years ago) link
hmm other things I read online suggested a schedule c but maybe 1099 misc is better.
― iatee, Monday, 9 April 2012 16:47 (twelve years ago) link
Often these things are reported on Form 1098-T (which reports tuition/fees payments made). The amount in the scholarship/fellowship box will be significantly larger than the amount in the box for tuition/fees paid. The difference would be considered taxable income. However, you can reduce that by relevant expenses.
― sarahell, Monday, 9 April 2012 16:48 (twelve years ago) link
If she didn't receive a 1099-Misc from the school showing the income, then she shouldn't be filing a Schedule C.
― sarahell, Monday, 9 April 2012 16:49 (twelve years ago) link
she didn't receive *anything* from her school and just has untaxed pay stubs (and then started getting direct deposit, so doesn't even have many). so we don't really know what tuition/fees even were.
― iatee, Monday, 9 April 2012 16:51 (twelve years ago) link
She really needs to check w/her school to see how they reported the income.
― sarahell, Monday, 9 April 2012 16:53 (twelve years ago) link
hmm would it really make a huge difference if we just ignored the tuition that the school paid to itself?
― iatee, Monday, 9 April 2012 16:56 (twelve years ago) link
the issue is where she reports her payments, and what payments were reported. If (as I'm guessing is the case) her stipend was considered a scholarship/fellowship and reported on the tuition statement, then she needs to report that as wages (line 7). If it was considered non-employee compensation, then she would file a schedule C. If she reports the income inconsistently with how the school reported it, the IRS might get "confused."
― sarahell, Monday, 9 April 2012 16:58 (twelve years ago) link
the school's tuition statement or hers? I believe she is considered an employee, but I think tuition might be 'waived' and not paid for? I will tell her to email the school though.
― iatee, Monday, 9 April 2012 17:01 (twelve years ago) link
the school should have issued her a tuition statement. Have her email the school and ask for the 1098-T. What she reports should match what they report, more or less. Sometimes schools' reporting misses things, for example, UC Berkeley (a couple of my clients are UCB grad students) doesn't include some mandatory fees in the fees they report as paid/charged. In that case, she can deduct them from the amount she reports as income.
― sarahell, Monday, 9 April 2012 17:14 (twelve years ago) link
hmm that makes sense. alright, last question (thanks a lot btw) - I'm looking at the 1099-MISC, and I know she gets to deduct her books from this...but where?
― iatee, Monday, 9 April 2012 17:20 (twelve years ago) link
Wait, I think you might be confused. The 1099-Misc is a form she would have received from the school IF her payments were considered non-employee compensation. I would be surprised if that were the case.
― sarahell, Monday, 9 April 2012 17:23 (twelve years ago) link
in summary:
if 1099-Misc, then Schedule Cif 1098-T scholarship/fellowship > tuition/fees, then line 7 wages
― sarahell, Monday, 9 April 2012 17:24 (twelve years ago) link
okay yeah I was actually on the school website and was looking at 'Other Stipends' and not 'Grad School Stipends'. would her deductions just be included in regular deductions and thus still not outweigh the standard deduction (being sig less than $5800) - I think that was what I originally assumed.
― iatee, Monday, 9 April 2012 17:26 (twelve years ago) link