ask the taxgirl

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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This post is part of the b5media Business Channel Great Blog Off! Find out more about the Blog Off here.

The Business Channel is supporting Accion International for the Great Blog Off. You can make a donation directly to Accion. Donations are, of course, tax deductible.

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Taxpayer asks:

What is the rule for claiming mileage for work on your taxes? I thought you could only claim it if your job sends you somewhere besides your normal daily commute, like if you have to travel to attend a meeting. My husband says that everybody on his job claims mileage for every travel to and from work.

Taxgirl says:

Your husband is mistaken. Commuting mileage expenses are not allowable as deductions.

Mileage is generally allowed, as you stated, for travel which is job-related but not a daily commute (i.e. mileage to a conference would be allowable).

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!

–

This post is part of the b5media Business Channel Great Blog Off! Find out more about the Blog Off here.

The Business Channel is supporting Accion International for the Great Blog Off. You can make a donation directly to Accion. Donations are, of course, tax deductible.

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Taxpayer asks:

I recently inherited a substantial (for me) amount of money. I used it to buy a home and to pay off some bills. I have been told I will have to pay inheritance tax and I have also been told it would not be inheritance tax, but income tax I will owe on this. Which tax would I pay? and approximately how much? I’m looking for a (ballpark) percentage. The amount was just over $100,000. I invested some in a money market CD to help with taxes. Is it enough?

Taxgirl says:

With that amount, you would not be subject to federal estate tax. You may be subject to state inheritance tax, depending on where you live.

The rules for inheritances vary from state to state - and there is no percentage that I can even ballpark. Some states like Pennsylvania tax at different rates depending on your relationship to the decedent. Others tax a flat rate. I would strongly recommend that you contact an attorney.

With respect to the income tax, generally inheritances are not subject to income tax. That said, it depends upon the nature of the inheritance. Tax-deferred assets or assets that carry income (retirement plans or certain trusts, for example) would have an income tax component.

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!

–

This post is part of the b5media Business Channel Great Blog Off! Find out more about the Blog Off here.

The Business Channel is supporting Accion International for the Great Blog Off. You can make a donation directly to Accion. Donations are, of course, tax deductible.

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Taxpayer asks:

What would you be if you weren’t a tax attorney?

Taxgirl says:

Ooh, that’s a fun question!

I love to write, so I’d love to be published someday.

And if I weren’t doing tax, ummmm…

I’d either be running some kind of nonprofit organization that does grass roots neighborhood improvements - or I’d own a winery!

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!

–

This post is part of the b5media Business Channel Great Blog Off! Find out more about the Blog Off here.

The Business Channel is supporting Accion International for the Great Blog Off. You can make a donation directly to Accion. Donations are, of course, tax deductible.

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Taxpayer asks:

Our first check came and went. I have heard that they are considering sending another one. Do you think that they will send a second check?

Taxgirl says:

No. I don’t think a second check is in the cards - for a lot of reasons, not the least of which is the economy.

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!

–

This post is part of the b5media Business Channel Great Blog Off! Find out more about the Blog Off here.

The Business Channel is supporting Accion International for the Great Blog Off. You can make a donation directly to Accion. Donations are, of course, tax deductible.

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Taxpayer asks:

I am a single mom with 2 children. I only received a total of $300.00 for my stimulus check. Why? And what do I do?

Taxgirl says:

It sounds like you might be a victim of an IRS error. The IRS claims that the error has since been fixed and that they will send out additional payments at the end of the cycle (July).

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!

–

This post is part of the b5media Business Channel Great Blog Off! Find out more about the Blog Off here.

The Business Channel is supporting Accion International for the Great Blog Off. You can make a donation directly to Accion. Donations are, of course, tax deductible.

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Taxpayer asks:

I am a US Citizen, living in Canada but commuting to the U.S. to work.
I filed a 1040 for 2007. I’ve read that I am eligible for the Tax Rebate, however, I have not received either notification letter. In addition, according to the last 2 digits of my SS# my check should’ve been mailed on May 23rd. The IRS website has no info on the status of my check. My accountant mailed my return on April 15th. Is it possible that it’s still being processed?
Thanks

Taxgirl says:

I think so. From what you’ve reported - assuming that you are income eligible - you should receive a rebate. I would guess that it’s very likely that it is still being processed.

You may want to call the toll-free Rebate Hotline at 1-866-234-2942. You can also visit your local Taxpayer Assistance Center.

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!

–

This post is part of the b5media Business Channel Great Blog Off! Find out more about the Blog Off here.

The Business Channel is supporting Accion International for the Great Blog Off. You can make a donation directly to Accion. Donations are, of course, tax deductible.

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Taxpayer asks:

I had to file bankruptcy in 2005 due to medical reasons. I have student loans that need to be repaid however I cannot get a job due to my medical condition and now the irs is keeping every penny that I should get back in order to settle my student loans. Is there any way to work with the irs to cut this debt and get out from under it.

Thanks for your help.

Taxgirl says:

To be clear, your debt is not with the IRS. The IRS is simply responding to an Offset Program. The IRS has no authority to work out any kind of payment plan with you for your student loans.

I would advise you to contact the agency or bank that holds your loan and see what you can work out on that end.

Good luck!

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!

–

This post is part of the b5media Business Channel Great Blog Off! Find out more about the Blog Off here.

The Business Channel is supporting Accion International for the Great Blog Off. You can make a donation directly to Accion. Donations are, of course, tax deductible.

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Taxpayer asks:

My daughter turned 17 on Christmas Day. Can we get the extra rebate for her?

Taxgirl says:

Sorry, no. To claim the child credit for the rebate, your child must be under the age of 17 as of the end of the tax year (December 31).

But what a cool birth date!

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!

–

This post is part of the b5media Business Channel Great Blog Off! Find out more about the Blog Off here.

The Business Channel is supporting Accion International for the Great Blog Off. You can make a donation directly to Accion. Donations are, of course, tax deductible.

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