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Owing Thousands of Dollars!!!

Discussion in 'Business & Tax Advice' started by natedogg, Feb 8, 2015.

  1. natedogg

    natedogg Regular Member

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    Hoping for some advice! I just did my income tax with turbo tax just to see a estimate and when I put in my regular 9-5 job and affiliate earnings I owe over 5,000 dollars!! I know it might not be much for some. I am filling as married with a young toddler and from the USA. Looking for the best way to reduce my taxes.

    - Should I file separate or jointly?

    - Should I just file as normal without my affiliate earnings and just do my affiliate earnings by itself?

    - What type of things can I claim for affiliate earnings?

    - Should I open an LLC going forward and pay quarterly taxes on my business as an affiliate?

    I know must will say go to an accountant but I got prices and they were outrages.

    Any advice would be appreciated:)
     
  2. 1morenoob

    1morenoob BANNED BANNED

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    don't know if its the same there but most accountants in the UK will give you like a hour consultation for free. Should give you a good idea of whats best
     
  3. lightningblitz

    lightningblitz Elite Member

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    If using turbo tax, I always:

    1. Do estimate for individual and joint.
    2. Play with head of household and dependents between you and the misses on estimate.
    3. File for an extension and start saving.

    You can extend taxes and play with what you owe. You can itemize expenses with your income, which you will want all of your internet receipts and to see an accountant.

    Also, when playing with a business, and claiming the additional income, free turbo tax estimator is crap. They sell superior software for more complicated situations. You estimate is most likely on a 1040ez form. It is not designed for business related deductions. Keep this in mind.

    Also, consider going to an accountant or tax professional. It can cost a lot. But places like HR Block and small, independent places are not always a huge sum. You can shop around for deals and the promise of ongoing business, especially if you let them know you want an LLC and quarterly taxes, will get you a break.

    Something to the effect of, "I am am considering starting an LLC and paying quarterly taxes because after doing my 2014 returns I do not think I am itemizing things correctly. Do you provide free consultations for new customers? I would be looking for an ongoing relationship and would need someone to help me do my quarterly business taxes"

    Most places will want you in the door because they will make a client for life if they save you money. Remember, tax places are a business too.

    Last thing, good luck!
     
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  4. antichrist

    antichrist Jr. VIP Jr. VIP

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    Take as many deductions as you can. For affiliate earnings, claim a home office. Food for the office? hell ya! Any expenses obviously. Claim part of your car for business. Claim the gas you used to go to the bank. Claim pens, paper, ink for the printer. Claim electricity to run your computers. Claim your internet bill each month. Claim your computers.

    Taxes are a pain in the ass man, good luck!
     
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  5. natedogg

    natedogg Regular Member

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    Thanks for the help! Yes I can claim things like you said but if I claim car business for going to bank etc. I don't have any proof... would that be fine? Also, I pay rent (a lot) monthly would I be able to claim all the rent or half per month? Thanks a lot!
     
  6. natedogg

    natedogg Regular Member

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    Thanks for the help! If I open a LLC... I assume I will pay quarterly taxes and why would it be such a better tax brake? I can still add my 1099 to my regular 9-5 and claim expenses. Is it just that I will not have to pay at the end a big lump sum? Thanks
     
  7. antichrist

    antichrist Jr. VIP Jr. VIP

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    What I did was that I simply downloaded a travel expense sheet and just eyeballed what I thought I drove for business. As for your rent, I am not sure how much you can claim. There is a limit to what you can claim based on size of your apartment and if the apartment has stuff like a sink and oven. You will have to look it up as I do not know off the top of my head. I believe I claimed 25-50% of my rent each month for a home office.
     
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  8. rabbitking

    rabbitking Elite Member

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    Start saving your gas receipts and car maintenance receipts. :)
     
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  9. natedogg

    natedogg Regular Member

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    Awesome! Geez I claimed my car for business, interest paid for car during 2014, advertising, rental and gas and know I get money back if I just do taxes on my business... I hope that is normal and they come after me for documents... I'm be true, I just don't having many receipts for these things accept rent, advertising, supples and cell phone.
     
  10. antichrist

    antichrist Jr. VIP Jr. VIP

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    If you only have a single car, I would not claim the entire thing. I had a hard time convincing my accountant last year a sports car was a business car XD. Do not forget to write off your itnernet as well!
     
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  11. natedogg

    natedogg Regular Member

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    My wife just bought a new car a couple of months ago... but what the hell would I claim go to the bank to cash checks.
     
  12. AnthonyCorleone

    AnthonyCorleone Jr. VIP Jr. VIP

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    buddy best advice u get from here it this:

    go to craigslist or local classifieds find someone "unfamouse" who do taxes on a house or in small office
    they usually charge $100-$200 they will get you the best advice better then H&R Block or J.P. Morgan or any other famous who asking % of your income

    also for self employee income you can writhe off all your electric bills, internet bills any medical bills, school bills if they associated with what u do, your tel. bills if they associated with what u do and your toddler goes to day care u can fully writhe off that part also

    also you can writhe off square footage of your house that you uses for self employee stuff u do

    what ever you do don't wait to pay them til April 15 because once you late they will charge you % fee for delaying monthly I was late last year for 22 days and had to pay extra 1.8k in taxes

    og yeah start keeping bookings for all your expanses "daily" anything that's cost you money and the end of the year you can go over it with accouter and pick out the most of it as possible to writhe of is help me to reduce my taxes by a lot

    good luck OP
     
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  13. lightningblitz

    lightningblitz Elite Member

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    I told an accountant I was looking for quarterly and got in for free, never did pay quarterly. Quarterly is easier for you to manage the taxes (Less at once) and easier to keep track of three month expenses vs a year. Plus, the firm will think they will make a quarterly filing fee, and would be more likely to take you in for a free consultation.

    And yes, any auto expense can be part business. You need gas to drive to the bank or you will not have the money to run your business (Pay expenses). I would go as far as mapquesting the drive to your bank, and how many times you go to the bank for "business" and bring the spread sheet to the accountant. The miles of wear on the vehicle helps prove its a business related expense.

    How do you think all big companies do it?
     
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  14. icomaki

    icomaki Regular Member

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    You gotta watch everything you claim. If you get audited you will have to prove everything. Is it worth a few thousand for this. Just be careful.
     
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