What can I deduct from a 1099 of ,000? And what proof do I need for each deduction? Mileage log?….Phone bills?….business lunch receipts?…. what are the percentages on these things?
I have a w-2 for 43,000 and a 1099 side-job for ,000. I have my w2 under control, but this ,000, i haven’t paid taxes on it and want to deduct as much as possible? any good advice out there for me?

I get these rich liberals in my store who want to maximize their deductions. Every little small business expense, every tax credit.

Yet these are the folks saying the rich should "pay more" in taxes. Well… wouldn’t just filling out the EZ form, or failing to take advantage of these deductions, result in "paying more" taxes?

I just find it fascinating. All these rich people brag that they’d be "happy" to pay more in taxes, yet here they are every year, lining up with their long lists of receipts to squeeze every last penny for themselves.

I have stayed in US from August 2000 to January 2007. Since Feb 2007, I am now woking full time

(more than 40 hrs/week) for a US based company on contract basis. I receive fixed monthly fee

in US dollars through wire transfer (conversion rate applied on the day of receipt). For

finalcial year 2006-07, I filed my taxes as a Professional.

I have done B.Tech in COmputer Engineering, and Masters of Computer Science.

Now for Financial year 2007-08, my receipts are more than 10 lacs. I am not able to understand

under which category should I file my taxes; i.e. Business or profession.

Here are some facts:

I am a sole proprietor, and I have hired few employees under a Business Name. Their income is

less than the Taxable limit, so I have not deducted the TDS yet. But I have also get some work

done on contract basis which amounts to more than 1.25 lacs. I consulted a CA and I was told

that if the contract work is more than Rs.20,000, then I am liable for TDS deduction from the

next financial year (I am exempt for the first year). But he also told that if I file under

Professional category, then only I shoudl worry ablout TDS from next year. But if I file under

Business, I should not worry as the limit for Business for AUDIT and TDS libalityis 40 lacs,

and my receipts are less than 40 lacs.

As far as the nature of my US contract is concerned, following are the facts:

1) I develop and support a product of a US company.
2) I do not own the intellectual property rights of the work I do for the company.
3) I am paid a fixed monthly fee for my product development and support services
4) The contract ie between the US comapany and ME.
5) I work under supervision of the US comapny.
6) The work is done on Servers sitting in US and india.
7) The work is 100% exported.

HEre is my delimma. I am sure that if I register my company, then I’ll fall under the BUsiness

category (40 lacs AUDIT and TDS libality). But since I am a sole proprietor, should this be a

profession or a Business. All the CA’s I have consulted advised me to file under Profession.
1)But I fail to understand just because I have an engineering degree and I am a sole

proprietor, why would I come under professional category?
2)Also, if I sign the future contact in the name of my Propertier company, would it help to

file under Business category.

Please advise?

I itemize deductions and have hundreds of receipts. My CPA always complains that I send my return in too disorganized to complete in a timely fashion. What can I do to organize more efficiently for my CPA?

Is it worth while to put receipts in order by date? or is it better to categorize them into "Medical", "Business Expense", "Real Estate", etc…?

I want my CPA to be happy to get my tax stuff this year!!

I am self employed, While trying to find receipts and things for utility bills and other receipts, I found deductions that I forgot to report. I also reported "MORE" income then I actually made.(Yes, I actually said I made more money than I really did) I am a horrible book keeper and should never do my own tax returns, I did use Turbo Tax.

Anyway, going over things, I discovered that pretty much the whole return was done wrong. I tried not to deduct to much because I didn’t want to throw up red flags, So I actually stopped looking for more deductions. I was actually trying to avoid showing a loss on my 1040 schedule C , Not good when you are trying to buy stuff on credit when you are self employed. But anyway, I still get this face to face examination letter questioning deductions I did take. I can’t find the receipts for some of this stuff. I do have receipts for allot of the deductions I am entitled too, but didn’t report. I am seriously stressed out and I really want to correct this 2008 return before the examination if possible. Can I do it? Anybody know? Should I just take the receipts for deduction I didn’t take? I don’t really care about a refund, I just don’t want the IRS to throw me in jail and take my business and my house!!

Help!

`Bob from Baltimore
I can’t find receipts for some of the items in question. I did pay by check and some things I paid online. Will the transactions that shows up in my bank statements serve as a receipt for the items I am being asked for?

I went on a business trip that was a total of about 3 days, including first and last day spent traveling. I’ve heard that you can automatically deduct the meal and lodging per diem rates (listed at irs.gov) even if you didn’t spend the full per diem amounts and that no receipts were necessary when deducting meals and lodging this way.

I’ve never had any problems with this – however now I’m helping someone else with their taxes and now I’m a little confused about it.

Anyone know?

Ok I have had this lady do my taxes for me for the past 2 years. She has always done them at no charge since I qualified under her Free or Reduced program. The way we’ve always done this process is since she lives in another state now, she mails me an envelope with some helpful tax info. for me such as deductions etc. and also included is a tax organizer for me to fill in so that she can do my taxes easier. Well I received that envelope from her in my mail early February 2008. I filled it out and mailed it back to her with my tax form, documents and other receipts. After several days of not getting any response from her as to receipt of the items I mailed to her, I then emailed her to both her personal email and her business email. She never replied to either so I called both her business and home phone. Her business number turned out to be bogus and her home phone a machine always picked up. I left her a message and waited. She never called back so now it’s April 14, 2008…..
one day, as you all know before the tax deadline. I called the IRS and informed them of the situation and the lady I spoke with advised me to try and contact her a few more times today and if I received no response then to get them done somewhere else this year. Thankfully I had made a copy of my tax form (my 1099) I always make copies of my 1099 or W-2s just in case they get lost. Well since it was so close to tax deadline, I went to Tax ACT since some of my co-workers say they use that tax software to file their own taxes quickly and easily. I was able to file both my Federal and State taxes thru Tax ACT. I emailed the lady I had wanted to do my taxes one last time to inform her that I didn’t know why she wasn’t replying to my phone calls or emails but that since it was 1 day away from the tax deadline I went ahead and had my taxes done elsewhere. I also asked her to send back my tax documents to me (there’s a more but I’m fixing to run out of room so I’ll continue below)
sorry ran outta room. I wanted to mention that after I sent the email informing her that i had gotten my taxes done elsewhere already and that all I needed from her now was for her to mail back all the tax documents I sent her. Well not even 5 minutes after I sent that email my phone rang and it was her. She told me that the reason that I had never gotten the taxes she prepared for me was because she had accidentally placed the wrong zipcode on the envelope she put them in which she mailed off to me. She said she had just gotten them back from being lost in the mail because of the incorrect zipcode. Ok well I told her that I went ahead and already had my taxes prepared by someone else this year and that they were already taken care of. I asked her to please just send back all my tax documents to me. I even offered to pay postage so she could mail them back to me ASAP. She told me not to worry about postage and that she would get them in the mail right away. Still haven’t got them.

Group – Income Range- % – Yearly taxes

1. 0 – 30,000 – 0% ({content})
2. 30,001 – 34,999 – 2% ( <= 0)

3. 35,001 – 39,999 – 2% ( <= 0)
4. 40,001 – 44,999 – 2% ( <= 0)
5. 45,001 – 49,999 – 2% ( <= 00)
6. 50,000+ – 2% ( Taking ,000 = 00)

Total Tax Revenue: ABOUT ,983,948,900 Billion before deductions.

REAL number, the math is on my Excel page

I used Year 2000 numbers.

and that doesnt include businesses

With ALL taxes (Individual Income Taxes, Corporate Income Taxes, Social Insurance Taxes, Excise Taxes, Estate and Gift Taxes, Customs Duties, Miscellaneous Receipts)…………..

The total revenue is 1.1 Trillion dollars.

Then if you CUT GOVERNMENT SPENDING!

I made about 7 grand working under 1099. I gotta do Form 1040es for the federal during next two weeks.

I understand that I can claim deductions for business related expenses (meal, transportation, cell phone bill and etc). How do you claim deductions for such expenses. Is there a seperate IRS form for calculating such a deduction? AND DO YOU BETTER BE READY TO FURNISH EACH AND EVERY RECEIPTS FOR SUCH EXPENSES? I don’t have all the receipts.

How do you do the likewise for the state of Maryland?

Advice will be appreciated.

I live in the United States and I’m interested to know about saving receipts to receive a tax deduction.

Is it correct to say that; any money spent that is used to generate an income or a profit is tax deductable?

Is this true?

If so, does paying for food to live a cost of business generating profits? If not, then how do some people get to do this?

If my first question is true, then what exactly do you deduct? The sales tax that was attached with a purchase? The ENTIRE purchase?

I believe that I may be asking the wrong questions, but I am rather new to filing for taxes and what-not. Thanks in advance.