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Tax Tips For Small Folks?
An anonymous "The tax deadline is fast approaching (here in the USofA). Like some of you, I have a small business on the side. Since I haven't figured out the 'step 2' yet (the one before 'step 3: profit!!!'), my revenues were zero for all of last year, and the expenses were just about zero too. What is the quickest and least painful way for a person in my situation to do his taxes? I don't want to spend 100s of dollars going to a paid professional, just to have him put all zeroes in the form. If you have done your taxes and are a small business (C-corp, don't ask why...), do you have any tips?" This is also your chance to offer all the heretofore unsolicited tax advice you've been bottling up all year.
Why is this marked troll? It's a good point... if you have zero income, you don't really have to pay any taxes now do you? :)
Zero expenses is besides the point, but at least we know you can't write anything off from your zero income.
Weird!
And I thought the people that sought legal advice on Slashdot were nuts...
Asking for tax advice on here is taking it to another level...
They don't care for small incomes. I've filed for friends and a couple corporations with relatively small incomes many times late. They will send you a statement with penalties on it (which aren't that much given the small income), but if you send in what you would have owed had you filed on time, they will drop the rest off your account.
Tip: Learn how to play the system. Don't let the big IRS beuracracy hurt you, make it help you.
There is a reason why accountants are highly paid professionals. Find one that is trustworthy (family/friends are helpful here) and then use them.
------- "From bored to fanboy in 3.8 asian girls" ----------
A friend of mine is a lawyer who also attended post-law school tax school (grad school for lawyers?).
He swears by tax programs for ordinary people's taxes and says they generally do a good job, although there are places where hand-tuning can help.
The analogy he made was programming -- tax software is like a high level language. It's great for most stuff, although there are places where hand-tuned assembly can help, and some places where its necessary.
Actually, there is just one form - 1020 for a C-Corp. If your revenues are almost zero and you don't have any assets to depreciate, that's about all you have to fill out. And it's really pretty simple. You might want to get your accountant to do it the first year just to show you how it's done, but no reason why you can't do it yourself after that
The good news is "they" (the Gov't) can't make you stay in this apparently repressive country. Vote with your feet.
Personally, I don't get taxes. I sure as hell never agreed to be under the rule of the Gov't. (so what, you were born here, you have to pay the taxes). So f*ing what. Nothing gives them the right to take my money to spend on things that I disagree with and then rape me by passing legislation that makes it illegal for me to do anything.
You're a fucking moron. As much as I feel that doesn't even need to be backed up, I will for the sake of my already-floundering karma.
See, the thing is, you are paying the government for services and products. Sure, they disguise the costs by calling them taxes, but they are really just charges for the following services:
As nice as I've been about this, you're still a fucking moron. Oh, and as a previous poster said: move, you dumbass. To where? Antarctica. What gives the government the right to be on your land? Simple: they can be and they will be. Who ever gave you the notion that you are born into this world with possesions and that you have inaliable rights? Maybe you do under the Constitution, but a government's first and foremost responsibility is to watch its back, or else it won't be there to watch yours.
MORON.
Send it certified mail.
I mailed in my forms in late February and haven't gotten my Federal refund back yet. I'm biting my nails wondering if my forms even got there at all.
taken! (by Davidleeroth) Thanks Bingo Foo!
Assistance in certain situations (hospitals)
:)
And the government pays for this why? I tell you what, I'll be responsible for my own medical coverage, if you start paying half my tax bill. I doubt you'll jump at that opportunity...
A fucking education (schools, free libraries)
The only thing you have to pay on for your entire lifetime. What a deal!! Thanks
I like how you convieniently leave out the myriad of other things our tax dollars are waisted on..red tape, "social programs", etc.
ever gave you the notion that you are born into this world with possesions and that you have inaliable rights? Maybe you do under the Constitution, but...
Yeah, that silly constitution thing...what were those people smoking back then? Oh, yeah, I forgot, they didn't have all this taxation to influence peoples' behavior...so there's no telling what they were smoking.
What gives the government the right to be on your land? Simple: they can be and they will be.
Somehow, I think if I were in your house, and had you at gun point, "because I can", you would be singing a different tune. It's strage that people have no problems letting "the governement" (as if it's some sort of unidentifiable entity) do things that those same people would not be at all happy about if someone else were doing it.... Sheep.
A modern day witchhunt.
Everyone's assuming that he's incorporated. Running a small business on the side does not instantly mean that you've gone out and filed the paperwork to be a corporation, nor is it necessarily a given that you should. It just depends on how you want the tax laws applied to your business.
:)
If you havent't filed with your city or state to be a business, then they don't consider you a business; what you do is then considered a hobby. If you're making in excess of $600 from any single client, then you'd better think about registering to become a business, as you still have to declare the income and the IRS might raise an eyebrow at a hobby that earns several thousand dollars a year.
Some of the benefits include being able to declare part of your home as an office, which gives you breaks on things like your utilities. Business trips taken with the car can also be included (but you have to know when you went and exactly what the mileage was, etc.) If you keep decent books on what you do and where you go, then you can really cancel out most of the effects of a "side business." As a computer animator, I get to declare all of my computer upgrades up to $18,000 a year as a business cost; now how sweet is that?
Also, if you earn less than $600 on a business for more than a couple of years, the IRS literally considers it a hobby, not a business.
Definitely give TurboTax for the Web a shot. It's not that expensive and can usually be completed in an hour or so, no matter how complicated your taxes (mine were six different forms last year, and everything went fine. Cost me $20 - it was that low because Oklahoma pays for the basic service for residents, and then I upgraded for "expert" advice.)
Finally, check to see if your state tax commission cooperates with an accounting service to help pay for your tax advice. They want you to do it right as much as you do; any mistakes you make means more headaches and work for them.
"Give a man fire, and he'll be warm for a day; set a man on fire, and he'll be warm for the rest of his life
In case you are in danger of believing in this nut case, consider this link from the IRS also.
Our nation has existed longer without income tax than with it. Why can't we revert back to just use-tax (i.e., sales taxes, tolls, etc.)? Wouldn't that be the most fair -- you pay for what you use and don't pay for what you don't?
Granted, this would significantly shrink our Federal Gov'ts budget, which would drastically reduce the military complex, social programs, things like government watchdog groups, etc., and would move us back closer to laissez-faire capitalism. This has both its advantages and disadvantages, as I'm sure you know.
Perhaps the best solution would be to have a small flat income tax rate (say 8% for everyone making over a minimum), and then just using use taxes. The income tax could pay for what military presence is needed and watchdog groups (FDA, FCC, EPA, etc.). Granted, we would have fewer bombers, and we'd be less likely to "shock and awe" folks, but maybe that'd be for the better.
I could not justify my existence if I were a turkey farmer. Would I terminate myself? Undoubtably, yes.
I'm convinced that if members of our congress were required to prepare their own taxes, the tax forms would consist of "In 2002, you made $X from all sources of income. Please send a check for $Y to:...."
And we'd still have audits...