Taxpayer asks:
Hello there and thank you for answering my question.
I am self employed and contributed nearly $8,000 in cash/non cash donations this past year (goodwill, church, habitat for humanity). When my friend did my taxes on her computer program it did not reflect a deduction upon entering in the charitable donation information.
I hve all proper documentation but I am wondering if there is some place in particular she has to put the amount on the form when not filing a long form?
Taxgirl says:
The short answer is that you have to use the long form.
The short form (1040-EZ) is a basic tax form for taxpayers who report wages, use the standard deduction and plan to claim no credits other than the earned income tax credit (EITC). You cannot claim itemized deductions on a short form.
Charitable contributions are itemized deductions. You report itemized deductions on a schedule A on your federal form 1040 on lines 16-19 (see below):
If your itemized deductions exceed your standard deduction ($5,450 if single and $10,900 if married filing jointly), you’ll want to claim the itemized deduction to get the bigger benefit. You should consider other deductions that might be included on Schedule A such as medical expenses, other taxes paid, casualty losses, job expenses and miscellaneous expenses to maximize your available deductions.
More importantly, however, than the charitable deductions issue is that if you’re self-employed, you can’t use the short form. You must use a long form (federal form 1040) if you had net earnings from self-employment of at least $400. You’ll need to file a Schedule SE to figure your self-employment tax – and you will likely want to file a Schedule C to claim business expenses against your business income.
Make sure you’re using a good computer program, like TurboTax or TaxAct, to walk you through these forms. If it’s still too confusing, consider hiring a tax professional.
Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.
Have a question? Ask the taxgirl! – Now on Facebook!
Taxpayer asks:
I just recently (December 2007) became a US Resident, I have been illegal before that, since 2002. This year will be my first year filing taxes. And I do not know how to go about it. Or what info should I have handy. Any suggestions? I did worked before I became a US Resident and was paid cash. I got my work permit in October ‘07 and then I started working at Costco. But before Costco I do not have any record of work. I did go to college for 3 years so I have the 1099’s for those years.
Any suggestions, ideas or what paperwork should I gather, let me know.
thank you so much.
Taxgirl says:
This is a great question – not just for first-time filers but for all folks who will file a tax return…
Here’s what you should have handy when preparing your return (or visiting a tax preparer):
- Driver’s License or other ID
- Social Security number
- Social Security number, birthdays and full names of any dependents
- Your prior year federal and state income tax returns
- Copies of 1040-V or other documentation for estimated taxes paid
- Proof of payment of other state or local taxes paid
- Proof of payment of foreign taxes
- Forms W-2
- Forms 1099-MISC
- Schedules K-1
- Other Forms 1099 (INT, DIV, G, SSA, B, etc.)
- Forms 1098 (for mortgage, tuition and student loans)
- List of Income Not Reported on 1099 or other form
- Year End Brokerage or Bank Statements
- Retirement Account Summary
- Form W-2G for Lottery or Gambling Winnings
- List of Lottery or Gambling Losses
- Documentation of Alimony Paid or Received
- Documentation of Charitable Gifts (cash and non-cash)
- Child Care Provider Name, Address and Tax ID number
- Receipts or List of Medical Expenses
- Receipts of List of Job Expenses
- Settlement Sheet for Sales of Real Estate
- Receipt for Real Estate Taxes paid, if not on 1098
Of course, some of these may not apply to you. It’s better to have too much information than too little – a good tax preparer (or software) will ask you for what’s needed as you go along.
If you’re filing on your own (without a tax preparer), I would recommend purchasing some software. It just makes life easier – and cuts down on the likelihood of math errors.
If you will not itemize, you’ll file a form 1040-EZ in most cases. If you are itemizing, most likely you’ll file a form 1040 with accompanying schedules. You can find some more information about forms 1040 and forms 1040-EZ here.
Anything my colleagues would like to add?
Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.
Have a question? Ask the taxgirl!
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