My husband receives a car allowance with each pay period. He also receives reimbursement for gas and maintenance. But nothing for car insurance. Now it seems the car allowance is taxable income on our W-2 but our H& R Block Tax Provider says it is not being taxed. But when I look at his W2 it shows up on line 1. I’m a little confused??? Can we deduct any of the car allowance off? How do we know if we are getting the full amount in reimbursement compared to the .48 mile reimbursement. Is there a standard way to compare?
Also, is there a depreciation deduction if he is putting a lot of miles on his car for business.
Yes, he keeps a mileage log and records of gas and maintenance reimbursement.

I’m married. I make more money than my husband, though I only claimed one dependent on my w2 this year – though the worksheet (which I didn’t understand) said I could choose 2, since we both work. We live in SC, and we have no children (2 dogs). I was told that by choosing two though, I run the risk of owing the IRS money in February – because they’ll take out less taxes during the pay weeks. Does anyone have any advise? I’d rather not owe the IRS anything, and make less weekly!
Also, I do itemize my taxes because of my Mary Kay business. I was told that may help me as well – though I don’t know what kind of deductions I’m looking at (I didn’t file it last year)…. I know that was vague… but I would like some hints.

Hi there. I am going through Turbo Tax and am getting more confused. I had three jobs last year: two with standard W2’s and one with 1099 Misc income as I am an Independent contractor for them. I have a good amount of business expenses related to the 1099 income (k out of 12,500 income) Do I need to fill out a schedule C? I don’t have an LLC or anything of that nature. Not sure where to put these deductions. I originally put them with personal but maybe they should go directly with the business income? They keep asking me what basis. Cash, actual, etc. I am out of my league here! Sorry if this seems confusing; I remember why I hated accounting in college. thanks to anyone in advance!

I have been selling few items on ebay and thru craiglist, mostly re-selling items for a profit. I kept an xl sheet document of my costs and money received. I have not registered myself as a small business or self employed. I am (planning to report) the income on our tax returns. Does this qualify me as self employed (so that I can claim dependent care deductions, otherwise I cannot claim – spouse works, I have no w2 & turbo tax wont let me add ebay earnings as income for dep care purposes)

How should I file my 2009 taxes in order to have the greatest chance of being approved for a home loan? I have been self-employed since 2004 but I was also employed full-time for another company until 10/07. My 2004-2005 taxes were filed under an LLC S-Corp. 2006 taxes under sole-proprietorship and W2 for my full-time employer. 2007 & 2008 I used Turbo Tax Home & Business as a sole proprietor. I’m going to a reputable accountant, tax consultant, and mortgage broker next week for more advice but would like to prepare myself with any other questions before doing so. My business has made a profit since I started it in 2007 but as many business owners do, I’ve had enough deductions to show very little profit. I’m concerned the banks won’t like this. I can show a great profit for 2009 if I need to in order to get a loan as my company really does make a good profit. I hope this makes sense. Does anyone have any answers that might help. I currently do my taxes myself but will a lender want a professional office to have completed my taxes? Thanks

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?

Next Month I’m going down to see how much child support
I must pay. Last week the judge ask me how much i get paid
per hr.I told him, i charge 40.00 per hr and i’m self employ electrican.He start telling me how much i get paid the entire year.I told the judge,you’re wrong on how much i get paid the entire year.I told the judge, you need to include my deduction and tax breaks for my business.I told the judge I make around 50,000 a year but after tax deduction and buying equipment. i bring home 18,000 a year.He didn’t take my word and ask me to bring in 3 years of W2. how would they dediced my child support.My wife upset because she think i"m lieing about the 18,000 a year.That also put my income lower than her(she makes 20,000 a year)

I did some work for a small start up business in 2007. The first few months they paid me a monthly amount and told me they were deducting social security and witholding tax. After a few months I was asked to be a consultant and they would pay me a gross figure. I thought this was OK at the time.

It now looks like they did not know what they were doing. They paid me net but did not pay the deductions to the social security or the IRS. They paid me gross for the time I was called a "consultant".

This all came to light when I asked them when I would get my W2 for the first few months so I could get ahead on my fed tax return.They are trying to work out what they should do and have asked me to help them through this problem. I like the people and the work but they need to sort this mess out.

What should I suggest to they do to put everything right? I am flexible and want to carry on working but I dont want me or them to have a problem with the IRS or social security.
The start up company is a Delaware LLC. The owner does not take any salary (as far as I am aware). But he will take all the profits. I dont know how he will deal with company tax return.

We really are very small only 4 people and we only started this venture just about a year ago.

The owner bought the LLC off the shelf as a shell company. He finds customers overseas and we give advice in our specialist areas. He is good at finding customers so work has been continuous which is great.

The customers pay the LLC before we travel and he pays us our consulting fee and keeps the rest.

Its going well so I dont want to rock the boat and I have a lot of freedom, travel and more work than I had before. And he is a good payer …always on time.

I think this issue is just because we are not business people.

I want to make sure I dont have a problem with the IRS but I also want the company to carry on so minimising any penalties is one of my objectives.

I need to file the paper work for an LLC/sole proprietorship.
I need to file the paper work to declare the money I made (25) and I have about 2200 in deductions.

I also need to figure out something on my personal taxes:
I also have a letter from the IRS about a W2- I got on April 15th after I sent im my efile already. I never filed an amended return so they are counting the 8.xx of federal taxes not paid as income for this year.

Those are the issues I got. I know that my revenue is for now pretty low so I don’t have to worry about an instant IRS audit, but I don’t want to ever get one so I want to have someone file this right the first time, and I’m pretty sure that I’m not that person.

Basically, the issue is whether I should file this as personal income, or file as a business. Either way I file I dont know the forms to fill out and if I did them myself the danger is that I dont know enough to catch my own errors. Which is why I need someone to do em for me.

I had been on 1099 for partial year and on W2 for part of the year. What tax software is recommended for filing tax returns so that I can take advantage of the business expenses and deductions