[OT] I'm In Shock!

L. (usenetlyn) wrote:
Jo Firey wrote:
I apologize. That was kind of over the top. I'm not ****ed of at
you. But its April 14th, I do taxes and I'm kind of steamed at the
whole world.

Any so called tax preparer that would tell you such a thing however
should be tarred and feathered. You could get into so much trouble
relying on that kind of advice. And I didn't want to leave it
unchallenged here and have anyone else believe it to be true.

Jo

Isn't there some "rule of thumb" that waiters have to use to claim
tips, though? A certain percentage of their receipts, or something?
I'm just curious because my sister mentioned this the other day - I
had never heard of it.

-L.

Yes. As a wait-person many years ago, I remember when that law went into
effect. The restaurant reports your tips based on 20% of your shift sales,
whether you made that much in tips or not. It's really unfair since there
are a lot of cheap people in the world.

Jill

wrote in message
ups.com...

Oh, no - I didn't mean I didn't want to pay taxes I really owe, but
if you
make less than $500.00 on a job the person paying you does not have
to
submit that tax form and you *legally* don't have to pay taxes.

Let me get this straight. If you're paid under contract labor law, and
your income for that job is less than $500, you don't have to pay taxes
on it?
If you have several clients, but each individual job paid less than
$500, you don't have to report any of it?
Now I"m really confused.
I didn't get a 1099 for one of my oil/gas lease bonuses. I thought I
was sailing in the wind, till the tax guy said, that's no excuse. You
still have to report it. But I guess what you're talkinga bout applies
to earned money specifically from doing work for someone.

No, according to Jo the tax preparer was *WRONG*. That doesn't surprise me,
the only answer she ever gave us to our questions was "I don't know" - she
kept screwing up the computer program she was using - forgawdssake all she
had to do was plug in some numbers and let the program do the work and she
couldn't even do that. Also *nobody* there knew that you *can* pay your
taxes with a credit card (you go to a third-party bank, pay to them, they
give you a voucher number that you put on your return, and then they pay the
IRS directly for you).

Hugs,

CatNipped

Sherry

"jmcquown" wrote in message
. ..
Jo Firey wrote:
"CatNipped" wrote in message
...
"Jo Firey" wrote in message
...

"CatNipped" wrote in message
...

Our own company - yes and no. I work for a company but I do web
architecture on the side. That was yet another reason we got hit
so hard this year - a company filed a tax form on me when they
really didn't have to and *I* had to pay extra for it to the IRS!
Again, SHEESH!!!


Sorry you don't get to gripe on this one. You are supposed to pay
taxes on all the money you receive for work you do. Whether the
person/company files a 1099 form or not. Not reporting what you
receive is cheating on your taxes. Sorry.

Oh, no - I didn't mean I didn't want to pay taxes I really owe, but
if you make less than $500.00 on a job the person paying you does
not have to submit that tax form and you *legally* don't have to pay
taxes. At least that's what the (admittedly not too informed) tax
rep at H&R Block told me. She said that since they *did* turn in the
form I had to pay the taxes (or some other penalty or fee).

Sorry to burst your bubble. But the hell you don't.

Okay, Jo... so why is it companies do not have to report "for hire" income
with a 1099 for anyone earning $500.00 or less? When I worked for my last
job we'd crank out 1099's to report doctor's fees paid for Work Comp
patients but ONLY if the fees totalled $500.00 or more. The Doc got a
copy,
the IRS got a copy. The doc was obligated to report it knowing we'd
already
done so. But anything under that was not reported and how would the IRS
know?

Jill

Yeah, that kind of sounds like what the H&R Block rep told me (but I can't
be sure, all tax stuff sounds like greek to me!!).

Hugs,

CatNipped

"Jo Firey" wrote in message
...

wrote in message
ups.com...

Oh, no - I didn't mean I didn't want to pay taxes I really owe, but
if you
make less than $500.00 on a job the person paying you does not have
to
submit that tax form and you *legally* don't have to pay taxes.

Let me get this straight. If you're paid under contract labor law, and
your income for that job is less than $500, you don't have to pay taxes
on it?
If you have several clients, but each individual job paid less than
$500, you don't have to report any of it?
Now I"m really confused.
I didn't get a 1099 for one of my oil/gas lease bonuses. I thought I
was sailing in the wind, till the tax guy said, that's no excuse. You
still have to report it. But I guess what you're talkinga bout applies
to earned money specifically from doing work for someone.

Sherry


She got some bad advice. It's taxable. Including Self Employment tax.

Jo

Yeah, *that's* the extra I had to pay for the free lance job!!

Hugs,

CatNipped

"jmcquown" wrote in message
. ..
Jo Firey wrote:
"CatNipped" wrote in message
...
"Jo Firey" wrote in message
...

"CatNipped" wrote in message
...

Our own company - yes and no. I work for a company but I do web
architecture on the side. That was yet another reason we got hit
so hard this year - a company filed a tax form on me when they
really didn't have to and *I* had to pay extra for it to the IRS!
Again, SHEESH!!!


Sorry you don't get to gripe on this one. You are supposed to pay
taxes on all the money you receive for work you do. Whether the
person/company files a 1099 form or not. Not reporting what you
receive is cheating on your taxes. Sorry.

Oh, no - I didn't mean I didn't want to pay taxes I really owe, but
if you make less than $500.00 on a job the person paying you does
not have to submit that tax form and you *legally* don't have to pay
taxes. At least that's what the (admittedly not too informed) tax
rep at H&R Block told me. She said that since they *did* turn in the
form I had to pay the taxes (or some other penalty or fee).

Sorry to burst your bubble. But the hell you don't.

Okay, Jo... so why is it companies do not have to report "for hire" income
with a 1099 for anyone earning $500.00 or less? When I worked for my last
job we'd crank out 1099's to report doctor's fees paid for Work Comp
patients but ONLY if the fees totalled $500.00 or more. The Doc got a
copy,
the IRS got a copy. The doc was obligated to report it knowing we'd
already
done so. But anything under that was not reported and how would the IRS
know?

Jill


The doctors new Mercedes.

The doctor is also required to have books and records that show ALL
collections. The IRS really is bright enough to know if they have 1099's
for 185,769 for someone and they report exactly 185,769 in their return
something is up.

And if an account is really busy they won't match for the year anyway.
Insurance company reports everything they send in the year. Doctor reports
everything she receives in the years. Stuff is in the mail at year end.

Jo

"jmcquown" wrote in message
. ..
L. (usenetlyn) wrote:
Jo Firey wrote:
I apologize. That was kind of over the top. I'm not ****ed of at
you. But its April 14th, I do taxes and I'm kind of steamed at the
whole world.

Any so called tax preparer that would tell you such a thing however
should be tarred and feathered. You could get into so much trouble
relying on that kind of advice. And I didn't want to leave it
unchallenged here and have anyone else believe it to be true.

Jo

Isn't there some "rule of thumb" that waiters have to use to claim
tips, though? A certain percentage of their receipts, or something?
I'm just curious because my sister mentioned this the other day - I
had never heard of it.

-L.

Yes. As a wait-person many years ago, I remember when that law went into
effect. The restaurant reports your tips based on 20% of your shift
sales,
whether you made that much in tips or not. It's really unfair since there
are a lot of cheap people in the world.

Jill

It was never as much as 10% of sales. Right now it is 8% And it isn't the
amount you are supposed to pay tax on. You are supposed to pay tax on what
you get. The allocation is for purposes of comparison.

Jo

Jo

Jo Firey wrote:
"jmcquown" wrote in message
. ..
L. (usenetlyn) wrote:
Jo Firey wrote:
I apologize. That was kind of over the top. I'm not ****ed of at
you. But its April 14th, I do taxes and I'm kind of steamed at the
whole world.

Any so called tax preparer that would tell you such a thing however
should be tarred and feathered. You could get into so much trouble
relying on that kind of advice. And I didn't want to leave it
unchallenged here and have anyone else believe it to be true.

Jo

Isn't there some "rule of thumb" that waiters have to use to claim
tips, though? A certain percentage of their receipts, or something?
I'm just curious because my sister mentioned this the other day - I
had never heard of it.

-L.

Yes. As a wait-person many years ago, I remember when that law went
into effect. The restaurant reports your tips based on 20% of your
shift sales,
whether you made that much in tips or not. It's really unfair since
there are a lot of cheap people in the world.

Jill

It was never as much as 10% of sales. Right now it is 8% And it
isn't the amount you are supposed to pay tax on. You are supposed to
pay tax on what you get. The allocation is for purposes of
comparison.

Jo

Sorry, but the corporate "giants" (read chain restaurants) report 20% of
your sales as "tips/wages". I wasn't just a wait-person, I was also the one
putting the information in their accounting system. Also at close-out I
divvied up the tips amongst the hostesses, bar backs, busboys, etc. When
you make (I think it was $2.13 an hour) it was kinda mean to take away the
measly 5-10% you'd get from most customers and split it among people who
earned at least minimum wage.

Jill

I'm sorry for "Nipped! I had to pay IRS over $2000 last
year mostly 'cause of working & collecting S.S. @ same time all year! I,
too, withdrew 401k upon quitting work
the next year - but was "home free" as brokerage sent proper amount to IRS
for taxes, and unlike you spring chickens, I am older than the penalty age
you get slapped
with for taking it out "early". You can't avoid the "age" penalty even if
you roll it over to a standaard IRA.
If you get a home equity loan - even if you have to pay
penalty $ for late IRS payment - you can deduct the interest on the loan
till you pay it off on your IRS form!
ASIDE TO SHERRY; Ford gives you TWO of those
special coded keys when you buy your vehicle. I got 2
when I bought my Ranger late 2001. Bet your DH has
stashed the extra somewhere around the house! Ask him.



wrote in message
ups.com...

CatNipped wrote:
We just got back from H&R Block. We owe *FOUR THOUSAND SIX HUNDRED
DOLLARS*
to the IRS! thud

--
Hugs,

CatNipped

I am sorry. I'm not playing "I can top this"....but it's just such a
coincidence....I went to have my taxes figured today, too.
I left the CPA and stopped at a gas station to use the restroom.
Someone jiggled the door, and in my haste, I reached back and flushed
the toilet, then stood up to pull up my jeans. My car keys fell out of
my pocket, into the toilet, and flushed on down.
I had to call AAA and have the car towed home, and I had to ride home
26 miles in the cab of said tow truck with a driver who was the
weirdest human being I have ever run across, who talked incessantly all
the way home.
Now I can't find my extra key. Mustang keys have that anti-theft chip,
so I am going to have to order one from the factory, for nearly $100 if
the extra doesn't turn up somewhere.
I wasn't going to tell this story, it is the dumbest thing I have ever
done. But I just had to remind you that THINGS CAN ALWAYS GET WORSE.

Sherry

"jmcquown" wrote in message
. ..
Helen Wheels wrote:
CatNipped wrote:
We just got back from H&R Block. We owe *FOUR THOUSAND SIX HUNDRED
DOLLARS* to the IRS! thud

--
Hugs,

CatNipped
http://www.PossiblePlaces.com/CatNipped/


Oy, what a bummer. I don't pretend to understand anything much about
USAnian taxes but that sounds like a big number. Is it all due
straight
away or do you get some time?

From what I recall of my history lessons the USA became the USA because of
unfair religious beliefs and unfair taxes in the UK. My, how things have
changed... NOT! LOL

Just out of curiousity, what percentage of your income do you have to pay in
taxes?

Currently I pay about 46% of my income on income tax, then out of what is
left over, have to pay another 10% on almost everything I buy because it has
a Goods & Services tax, and there are extra hidden taxes on things like
petrol, alcohol and tobacco and probably other stuff that I am blissfully
unaware of. Then again, we do have a relatively decent health-care and
education system (although both still need improvement), and I wouldn't want
to give either of those up.

Yowie

Here is an inflammatory statement from the Hopitus: I
think H.& R. Block is a ripoff. Last year when I had to
pay over $2000 (not their fault) I paid them $135 to do
my taxes, and FL has no state income tax!!!
Here in CO my DIL knows a pleasant corporate atty. who - short on business -
does taxes every spring! Guess
how much she charged me? One hundred dollars for doing not only my IRS but
also the gnarly CO state tax,
which I ended up paying CO one dollar......


wrote in message
oups.com...

CatNipped wrote:
We just got back from H&R Block. We owe *FOUR THOUSAND SIX HUNDRED
DOLLARS*
to the IRS! thud

--
Hugs,

CatNipped


Are you satisfied with H&R Block? I'm asking because we used to use
them, and every year their rates got higher and higher. We started
taking them to a CPA about five years ago. I was really surprised he
charged us *less* than H&R. One benefit is that he's available for any
kind of question all through the year, and doesn't charge us for that.