Hello, I have a question about taxes. I am 24, just out of college, living with my parents, and currently self-employed. This will be my first year filing independently, and I was wondering if I will be able to get any money back. I only made a little over ,000 (in taxable income) for 2008. I was technically not enrolled in college during 2008, but I was finishing my Sr. Project and writing my Sr. Paper. The ,000 was made through my own business, so no taxes were taken from that amount. I have many different expenses and deductions that I can write off, and I was wondering if I get money back even though I have not paid any taxes. I gave at least ,000 to charity, I can write off ,500 in interest on my student loans, and I have business expenses that I can also write off. So, again I really have no idea how taxes work, but my write-offs and deductions exceed my income more than twice. So, I was just wondering how that works- like does it just makes my taxable income {content}, do I get money back, or what?

Thanks for your help!

offset your personal income? If not, does anyone know of legal ways to reduce that taxable income (other than the normal deductions everyone knows about?) How do some people with good incomes manage to pay zero taxes?

In their fight against McCain Obama supporters keep saying that McCain supports Bush’s tax cuts and these tax cuts only helped the rich and not the middle class while Obama will make tax cuts that will help the middle class (this is their "answer" when they are asked how can Obama give "tax cuts" to those in the lower class that don’t even pay taxes to begin with).

My wife and I have been making between ,000 to ,000 a year over the last 10 years (it has been going up ever year and has mostly gone up over the last 5 years yet I have been working a lot less the last several years then before). Anyhow, since Bush’s tax cuts we have been paying less taxes then ever. Last year we made about k and our tax bill was something like 7 (compared to 10 years ago k in income gave us a ,500 tax bill). The main tax cut that has helped us was Bush’s increase in the child tax deduction (from 0 per child to ,000), not to mention the increase in individual deductions per person. The child tax deduction was a reduction in the amount of taxes owed, not a deduction from taxable income, so it’s impact had more of an effect on what we ended up owing. I think the cut off for the deduction is something like ,000 (i.e. if you made more then that you did not get the deduction, only those making less then that would get the deduction). Plus the last time I looked ,000 was not in the "rich" catagory.

I know Bush’s tax cuts had additional stuff that was meant to help businesses recover after 9/11 but it also included stuff that helped those making less like my wife and I and we are far from being "rich".

So why do Obama supporters keep saying that Bush’s tax cuts only helped the rich when that is not true?

While watching the news the last couple of days when talking about "Joe the Plumber" it was asked how can you cut taxes for 95% of the people when something like 35 to 40% don’t pay any taxes to begin with I’ve heard several Obama supporters reply that Obama’s tax cuts would help the middle class as Bush’s tax cuts did nothing for them. 3 so far did this today alone. They blew off the original question by responding to it with a comment about Obama helping the middle class. What has the middle class have to do with cutting taxes to people that don’t pay any taxes to begin with?

Judging by most of the "answers" to my question I clearly see it has gone over their heads as it was not about how the "world revolves around me". Nor did I say "all" Obama supporters are saying this. The last 2 days this is what several Obama supporters are saying on TV. They clearly state "all", not most, of Bush’s tax cuts helped the rich and none helped the middle class. Why? Can you at least answer that?
Winnie – send me a message that I can reply to and I will try to answer your question the best I can.

And I mean flat across the board. Everybody pays 5%, for example. But to make sure everybody pays that 5%, no exemptions for yourself or dependents. Not deductions for work, charitable donations, etc. No deductions for business losses. Capital gains are considered income and taxed at the same rate. So you bought your house for K, sold it for 0K, you made k that year, it gets taxed like any other income. You inherited cash property or anything else, it’s income and gets taxed 5%. And all income gets taxed the exact same 5%. No hiding money for the future in 401(k) plans or IRA plans–no need to anyway, since the flat tax defeats the purpose. All income of any kind, a flat tax. No exceptions, including churches, which are currently tax exempt.

Anybody for that?
Let me clarify some things about my question. One, I am not sure whether I am for a flat tax or not. But I have thought that richer people have more opportunities to get out of paying taxes than poorer people do. So I wondered if richer people would still be for a flat tax if the the playing field were completely level–ie, no tax-sheltered retirement accounts, no itemized deductions for charitable contributions, no loopholes of any kind, as well as calling and income at all as taxable income, including the sale of private property, and also doing away the the tax-excempt status churches and not-for-profit organizations enjoy. Totally fair. Would they still go for it?

For the last two years I had incorporated myself and was working as independent contractor, getting 1099 in my company’s name. Next year I will be working for w-2 (is this good or bad).
If I do not disolve my corporation, can I pay its overhead from my w-2 income and deduct it as business loss? If I do so, will hundred percent of my business loss allowed as my deduction to lower my taxable income?
I have a S-Corp. I am not trying to evade taxes just trying to determine if it is best to disolve the corporation or if I could have the insurance on the corporation paid and have the expense for the referral deducted as individual loss.

I made under 30,000. Used 9 for deductions.

All my money went into my new business, and my old small business started year before.

I managed to bring my total amount of taxable income/money down to 20,000 with all my legal deductions from this year.

PROBLEM: I am still being asked to pay 1300.

24 male southern CA
no kids, single

Hello -

I started an internet venture this year and have currently earned 0 on the business. I’m expecting to start earning revenues near the end of this year. My questions are as follows:

1. I am actively engaging clients and meet with potential customers on a regular basis; if I am to buy a SUV for my business, can I write this off under section 179 (please keep in mind that my business hasn’t earned any income yet, and may not until 2010)? If so, how much can I write off?

2. If my business hasn’t earned any income yet, but I purchase the SUV for business use only (I have another vehicle that I use as my daily driver/for non-client facing meetings). How do I apply Section 179 to my taxes?

3. On my other job, I earn about 75k per year. Since I have a sole proprietorship, can I apply the section 179 deduction towards this income that I earned – even though it came from a different source? (e.g. would I be able to take the ,000 deduction from the section 179 for a vehicle and then apply it to my 75k, thus bringing my taxable income down to 50k?)

Thanks in advance.

I am thinking about buying my first home. I have two years been self-employed (contract labor not business) and have tax returns to prove income. However, I am slightly confused at what the lender will be looking at. I was told that it is the adjusted gross income, but someone also told me the taxable income. I think the latter is wrong because it includes standard deductions, not business deductions, therefore I still brought that home. Can someone help me please?

I’m applying for home mortgage and trying to calculate my income based on corporate tax return… problem is I have too many deductions.. my total income (line 11) is 390 K. but my taxable income (after deduction– repairs, rents, taxes, licenses, interest, depreciation) is only $ 82 K
So if I apply for loan do they look at total income or income after deduction?? any info would be great..