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Old 03-19-2015, 12:37 PM
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Join Date: Jan 2014
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Unhappy No W-2 or 1099 (Please Help ASAP)

I will try to add as many details as possible, so someone may be able to better understand my situation, and help ASAP. I have already spent over $500 through tax preparers, recently, yet still haven't "filed my taxes." One place even had 3 of their preparers sit in on our session, and still wasn't able to tell me what to do.

For all of 2014, I again worked as an Independent Contractor/Self-Employed, whichever way you want to look at it. I know I was technically an employee, (I had a set schedule, tasks, pay, etc.), but the employer insisted I wasn't. Long story short, between my daily shift pay (cash), and my daily tips (cash), I made around $6,500 for the year. I did not pay self taxes throughout the year, instead, decided to wait until I filed, to pay them like last season. Through the entire year of 2014, I kept a very detailed tip/wage diary, along with a separate one for expenses (I frequently had to buy materials, food, misc. things for this business, and at one point, had to buy a used laptop, when mine crashed, to continue doing the work for them that I was.) I was not reimbursed for any of this.

Here is the problem. The owners of this business decided to put the place up for sale at the end of December 2014, without telling me, words were said, and I was terminated from there "as an Independent Contractor." When it came time to file taxes this year, I called their CPA, like I do every year, to see if my 1099 was ready to be picked up. I was informed that they were instructed not to create one for me, and said I never reported my wages/tips, so I would not be getting one. I contacted the owners, and they too said that it was "on me."

Now, a few questions:

1.) What is the best route for me to take now/what all Forms or Schedules do I need to get as a Self-Employed person/Contractor.

2.) My fiancé and I live together, with my minor son, and he claimed me (only me) as a dependent when he filed his taxes, since obviously, $6,500 for the year wouldn't have supported myself. Is that going to cause a problem with me filing taxes?

3.) After my ex-husband filed his taxes this year, he called me to tell me that although it was his year to claim our son as a dependent ( I gave him the Form 8332), that his tax preparer informed him that I was to get the Child Credit every year since our son resides with dm full-time, and my ex's "years" are just to claim him as a dependent. So, can that even be split like that, and means I will get the child credit on our son even though my ex claimed him as a dependent?

4.) I receive $126 a month from Veteran's Affairs ($1,512 a year), which is non taxable. Do I report that as well?

5.) Since I made so little, will it help or hurt me to claim all of my job related expenses? And, when I add in my child care cost, plus my expenses, it brings my total income down to nearly nothing.

6.) Last question: An immediate family member was incarcerated early on in 2014. When released, the terms of their probation were to reside in a steady, stable environment, while looking for work. I was the "lucky chosen one." They lived with my for over half the year (coming and going as they please), until they again went back to prison during the end of 2014. I do not have their Social Security number, not sure how to obtain it, and not really even sure I can claim them. They did not work any of 2014, and their only income was a monthly retirement/pension check ($2,568 annually). Should I just leave that alone?

I am truly sorry this was so long. I have read and researched until my eyeballs hurt. I don't know much about taxes, and just feel utterly lost. Especially when 3 well know tax places were even unsure what to do, yet still charged me. I need a refund this year VERY badly to get caught up, and I pray every one of you who took the time to read/respond to this is blessed. Thank you!!!!!!



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Old 03-19-2015, 09:12 PM
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Join Date: Oct 2010
Posts: 4,854
I will try to add as many details as possible, so someone may be able to better understand my situation, and help ASAP. I have already spent over $500 through tax preparers, recently, yet still haven't "filed my taxes." One place even had 3 of their preparers sit in on our session, and still wasn't able to tell me what to do.==>> I do not blame you; it can be usual.

For all of 2014, I again worked as an Independent Contractor/Self-Employed, whichever way you want to look at it. I know I was technically an employee, (I had a set schedule, tasks, pay, etc.), but the employer insisted I wasn't. Long story short, between my daily shift pay (cash), and my daily tips (cash), I made around $6,500 for the year. I did not pay self taxes throughout the year, instead, decided to wait until I filed, to pay them like last season. =====>>in general, your expected Federal income tax liability will be $1K or more you must make quarterly estimated tax payments using Form 1040-ES or you will face penalties for underpayment of tax at filing time;however, Many self employers do not usually make estimated payments as penalties/interest amounts are minimal.if it is still unclear whether you are an employee or an independent contractor, Form SS-8 can be filed with the IRS. The form may be filed by either the employer or you. The IRS will review the facts and circumstances and officially determine the worker’s status;it can take at least six months to get a determination, but a business that continually hires the same types of workers to perform particular services may want to consider filing the Form SS-8.

Through the entire year of 2014, I kept a very detailed tip/wage diary, along with a separate one for expenses (I frequently had to buy materials, food, misc. things for this business, and at one point, had to buy a used laptop, when mine crashed, to continue doing the work for them that I was.) I was not reimbursed for any of this. ===========>>it depends;you can not get reimbursed on the laptop; if your employer does not reimburse you for your biz related expenses,i.e., travel, in general, you may deduct ordinary and necessary business related expenses from your taxes.

Here is the problem. The owners of this business decided to put the place up for sale at the end of December 2014, without telling me, words were said, and I was terminated from there "as an Independent Contractor." When it came time to file taxes this year, I called their CPA, like I do every year, to see if my 1099 was ready to be picked up. I was informed that they were instructed not to create one for me, and said I never reported my wages/tips, so I would not be getting one. I contacted the owners, and they too said that it was "on me."=====>>>>>>>>>you still must report your income to irs. You’re required to report all the income your receive, regardless of how you receive it. That includes payments you get as cash, check, or property. The company was required to send you your form, either 1099misc or w2, by the end of January, so they are breaking the law.

Now, a few questions:

1.) What is the best route for me to take now/what all Forms or Schedules do I need to get as a Self-Employed person/Contractor.=====>>>>>>>>>>sch c of 1040 also, aslongas you are filing as a sole proprietor and/or a self-employed individual, you generally have to make estimated tax payments if you expect to owe tax of $1k or more when you file your return.however, You do not have to pay estimated tax for the current year if you had no tax liability for the prior year;You were a U.S. citizen or resident for the whole year; Your prior tax year covered a 12 month period so aslongas the amount on sch c line 29 / 31 is $40 or exceeds $400, then you must file return and if the amount on sch se line 2 / 3 is $400 or exceeds $400 you must pay self employment tax.

2.) My fiancé and I live together, with my minor son, and he claimed me (only me) as a dependent when he filed his taxes, since obviously, $6,500 for the year wouldn't have supported myself. Is that going to cause a problem with me filing taxes?========>>>>>>>>>>yes. Unless your gross income is less than $3,950 for 2014, he can not claim you on his return.

3.) After my ex-husband filed his taxes this year, he called me to tell me that although it was his year to claim our son as a dependent ( I gave him the Form 8332), that his tax preparer informed him that I was to get the Child Credit every year since our son resides with dm full-time, and my ex's "years" are just to claim him as a dependent. So, can that even be split like that, and means I will get the child credit on our son even though my ex claimed him as a dependent?==========>>correct ; your ex can claim ONLY CHILD TAX CREDIT AND ADITIONAL CHIKLD TAX CRDEIT if he is subject to them.yoou still can claim EITC/dependent care expense dedcutionor etc on your qualifying child

4.) I receive $126 a month from Veteran's Affairs ($1,512 a year), which is non taxable. Do I report that as well?=====>>>>>>No; you do not need to report it on yur return.

5.) Since I made so little, will it help or hurt me to claim all of my job related expenses? And, when I add in my child care cost, plus my expenses, it brings my total income down to nearly nothing. =======>>it mahelp you by giving you some refundable credit; for example, To claim EITC on your tax return, your filing status cannot be married filing separately; And you must meet one of the following: Have a qualifying child and Your child must have lived with you in the US for more than half of the year. If you do not have a qualifying child, you must: be age 25 but under 65 at the end of the year.to claim EIC, you cannot be the dependent of another person, your fiancé. I guess you are not your fiance’s dependent as your gross income exceeds $3950. Good news for you; If you paid someone to care for your child last year, you may qualify for the child and dependent care credit. 3.The care must have been provided so you and your spouse if you are married filing jointly could work or look for work.


6.) Last question: An immediate family member was incarcerated early on in 2014. When released, the terms of their probation were to reside in a steady, stable environment, while looking for work. I was the "lucky chosen one." They lived with my for over half the year (coming and going as they please), until they again went back to prison during the end of 2014. I do not have their Social Security number, not sure how to obtain it, and not really even sure I can claim them. They did not work any of 2014, and their only income was a monthly retirement/pension check ($2,568 annually). Should I just leave that alone?======>>you can claim them as your dependents as qualifying relatives UNLESS each of their gross income was $3,950 or exceeds $3,950 and you provided more than half of the dependent's total support during the year. Is they are NOT your immediate family members who are unrelated to you then they MUST have lived with you for the whole year of 2014.



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Old 03-19-2015, 10:06 PM
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Join Date: Jan 2014
Posts: 3
Thank you, so very much for your quick and detailed response! You have helped me so much. Since you know so much, I have a couple more questions, if you don't mind.

1. Since my fiancé has already filed his taxes, and did claim me as a dependent, can he file an amendment, to have me removed? The tax preparer that day, at Jackson Hewitt, never asked my income for 2014, therefore, neither of us knew there was a certain income bracket ($3,950), for him to legally claim me. What should I do?

2. The person incarcerated is immediate family, my mother, lived with me for more than half of the 2014 year, and did receive her financial aid from me. She is still in prison and her income for 2014 was less than $3,000. So, without her Social Security number, can I still claim her as a dependent or exemption considering the circumstances.

3. Since I have a qualifying child, and am over 25 and under 65, will I still get the EIC, or is that cancelled out due to my fiancé putting me down as a dependent? Additionally, it is my year to claim my daughter as a dependent, but her father's year to get the child tax credit. So does that help me as well?



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Old 03-20-2015, 12:45 AM
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Posts: 4,854
1. Since my fiancé has already filed his taxes, and did claim me as a dependent, can he file an amendment, to have me removed? The tax preparer that day, at Jackson Hewitt, never asked my income for 2014, therefore, neither of us knew there was a certain income bracket ($3,950), for him to legally claim me. What should I do?======> Not only JH but evn H&R blocks know that more people are going to see H&R Block ads than H&R Block customer complaints.as said , aslongas your gross income was more than $3,950 for 2014, your fiancé can not claim you even as a qualifying nonrelative due to high gross income(even if you must have lived with him for the whole year.). I mean your gross income does not include nontaxable $126 a month from Veteran's Affairs ($1,512 a year), but it includes taxable earned or unearned income (i.e., interest/dividend/ cap gain or other portfolio income). As they filed incorrect return, you need to go back to them and require them to amend it with free of charge as it was their mistake. Your next move: file an amended tax return. Simply put, an amended return 1040x, is usually filed because something was incomplete, incorrect or omitted from the original tax return. It should be filed if you forgot to claim credits and deductions, or need to correct filing status and income whether the result is a tax refund or a tax bill. As said, he cannot claim you on his return, so he MUST file 1040X and this’d reduce his refund or increase tax liability.

2. The person incarcerated is immediate family, my mother, lived with me for more than half of the 2014 year, and did receive her financial aid from me. She is still in prison and her income for 2014 was less than $3,000. So, without her Social Security number, can I still claim her as a dependent or exemption considering the circumstances. ======>>unless she is a newborn or an alien, you need her SSN#, I guess you can get it form her., Mom has to actually be your Mom too; aslongas your mother earns more than the personal exemption for the tax year in question ($3,950 in 2014), then she is not eligible to be claimed as a dependent by another individual. Keep in mind that income from Social Security (if she has)does not count for this purpose.so to claim her you need tofi1040xas said above, as a dependent , yu cannot claim anybody on your return even it you file return as a dependent. Your support must be at least half of the cost of what it takes to keep her comfortable/ any money spent on items as various as food, shelter, clothing, and medical care.in general, unless she lived in YOUR home for more than half of 2014, and otherwise meet the dependency tests, you can not claim her in prison on your return.

3. Since I have a qualifying child, and am over 25 and under 65, will I still get the EIC, or is that cancelled out due to my fiancé putting me down as a dependent?========>as said, your fiancé needs to file 1040x not to claim you as his dependent; One of the EIC rules for everyone states that you cannot be a qualifying child of another person.even though you have no qualifying child, you can still claim your EIC as a taxpayer without a qualifying child; o claim ur EIC, yu need earned income ,i.e., Wages, salaries,commissions, tips, and other taxable employee pay. You can elect to have your nontaxable combat pay included in earned income for EITC.

Additionally, it is my year to claim my daughter as a dependent, but her father's year to get the child tax credit. So does that help me as well?===============>>>>>>as said he can claim only child tax credit/addtl child tax credit while you as a custodial parent can claim eic/child and dependent care credit or etc. You can release the dependency to him by signing a form 8332.but He CANNOT claim the EIC if he is not the custodial parent and meets the criteria as set down by the IRS in their rules thereto pertaining. If he tries for the EIC and doesn't meet the IRS requirements the penalties and price tag will really come back and bit him in the you-know-what big time.



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