The Tax Tips Blog - Answers to your Federal tax questions: Recent Comments

Comment on The IRS has issued the 2007 standard mileage rates

David Greenslit CPA — Wed, 26 Mar 2008 13:45:12 GMT

I can't see a successful argument being made that she doesn't have to pay the Self Employment tax. While she may not be a "business owner", I'd say someone has to pay the Self Employment tax and the school district didn't pay 1/2 of it as employers are required to do. Perhaps she really was an employee of the district, but they decided to call her a contractor? It is possible to argue she was an employee, using form 8919. The situation is subjective.

If you decide to accept the 1099-MISC as more or less correct, the long form 1040 is required. Use schedule C to report the income. Mileage may be deductible, but would only benefit her if she's self employed, given my assumptions about her other schedule A itemized deductions, which I assume to be minimal. Use schedule SE to figure her Self Employment tax. Most tax practioners would allow the mileage deduction. It would be based on the argument that her place of business is her home, and mileage from her place of employment is deductible. It is deductible on Schedule A if she is an employee, and on Schedule C if Self Employed.

Comment on The IRS has issued the 2007 standard mileage rates

Frank P — Wed, 26 Mar 2008 11:22:25 GMT

My daughter is home teaching 2 autistic children. The school district has given her a 1099 misc with her 2007 income in box 7 at $10,162.00.
She was a college student last year and we claimed her as an exemption on our taxes this year.
Everywhere I've looked says she is a business owner and has to pay SE tax?
We don't understand this as she doesn't own a business, she is just a teacher. How can she pay her share of tax without the SE tax or is that not possible. She wants to file a 1040EZ with the $10,162.00 as W-2 wages and I told her I don't think she can do that. Any help is greatly appreciated. She drives her car to these homes and estimated about 3000 miles last year. Can she deduct mileage??

Comment on Many non-filers eligible for 2007 Tax Return Rebate

David Greenslit CPA — Mon, 24 Mar 2008 11:07:52 GMT

You need to file a 1040 return for 2007 to get the rebate. See here Here and Here

Comment on Many non-filers eligible for 2007 Tax Return Rebate

Leonard L Crawford — Mon, 24 Mar 2008 10:58:06 GMT

Hello, My wife and I have not filed income taxes in several years because we live on Social Security only. Will we automatically receive the refund or do we need to fill out a form?

Comment on The IRS has issued the 2007 standard mileage rates

David Greenslit CPA — Fri, 21 Mar 2008 06:41:05 GMT

I think what's important is that you are working at "temporary" work sites. If there are temporary and multiple platforms, that strengthens your case I think. There are various heliports, but that's not that different from there being various park and ride lots, or various ways to get to work based upon road contruction, or even a bridge being out, as I see it.

"If you have one or more regular work locations away from your home and you commute to a temporary work location in the same trade or business, you can deduct the expenses of the daily round-trip transportation between your home and the temporary location, regardless of distance." smallbusinessnotes.com

Trying to argue that the above fits your situation is your best bet for defending the deduction. Unfortunately, this is one of the more difficult and subjective areas of the tax code.

Mileage deductions are being taken by your co-workers, but that would be a failing argument to make to an IRS auditor, in my opinion. To be honest, it's been my experience that the IRS doesn't spend much time challanging mileage deductions, though in an the case of an audit it would be expected. So if a number of people are mis-interpreting the law and taking deductions they aren't entitled to, that does not green light the deduction in my opinion, or at my firm.

Comment on The IRS has issued the 2007 standard mileage rates

charles — Fri, 21 Mar 2008 06:24:11 GMT

I have a question about mileage deductions. I work on a oil platform in the gulf of Mexico. some of the guys say that we are able to deduct mileage driven to the location we go to be taken to the platform. the location varies, usually 3 or 4 different location each year. We work in 14 or 21 day increments. We actually take a helicopter to the platform. and drive to various heliports.

Comment on Many non-filers eligible for 2007 Tax Return Rebate

David Greenslit CPA — Tue, 18 Mar 2008 15:37:02 GMT

Try this link for more information: IRS Also the IRS has free help: Volunteer Tax Return Preparation They will be able to handle your situation and get you your rebate if you qualify for it. Most adults who receive Social Security do qualify for it.

Comment on Unrecovered costs at death in annuities and retirement plans

David Greenslit CPA — Tue, 18 Mar 2008 15:29:51 GMT

If this "someone" is your child, yes you can. You need to have paid over half the cost of keeping up a home that was for over half the year the home of your child. You do not have to claim the expemption for that child. One of my clients has a 50 year old son that lives with here and who earns $60,000 a year. She files as Head of Household, and meets all the IRS's requirements to do so. Head of Household

Comment on Unrecovered costs at death in annuities and retirement plans

Linda Byrd — Tue, 18 Mar 2008 15:21:12 GMT

Question: I want to know can I claim head of household if I have someone living in my home, but I pay the majority of the expenses? For instance they buy groceries and I also buy groceries occasionally they pay a bill but I pay all of the mortgage, insurance, utilities etc.

Comment on Many non-filers eligible for 2007 Tax Return Rebate

Mary A Brown — Tue, 18 Mar 2008 15:31:12 GMT

This did not help me to understand what I have to do to get the rebate, since I am a non-filer. I have not filed for many years and do not receive a form or know how to go about filing.