2008 Tax Thread

First of all, I want to thank every single person who has contributed or will contribute to this thread. Again, there's a lot of bitching about this site from some in the industry, but here it is a savior. Again, thanks.

So...

I have a decent amount of freelance in the last year (probably in the $5000 but maybe more, but I haven't kept a single receipt or anything. I know the approx mileage it took for me to get anywehere, and I have a workspace at home, but I also wouldn't want to get audited. How do you report what you think is a reasonable amount of "freelance" wages and deductions, without getting audited. I'm not trying to screw the goverment, but I'd like what's mine...

Again, thanks.

And I_E, great post.

 

Gotta have reciepts. You can claim it without reciepts, but if they ask, you have to be able to prove the expenses.

Which reminds me, 2008 is the first year that you can no longer claim "unreciepted charitable contributions" up to 499 dollars. Now you gotta have reciepts for all of it if I understand correctly.

There was also a thing a couple of years ago where they were looking much more closely at home office use. If I remember, you could only use the stuff in it for work or they would not let you claim the deduction. So be careful.

But an accountant may be worth it, if you have a lot of deductions.

 

For full-timers, part-timers, and freelancers, part- or full-time who do their own taxes:

1) Keep every receipt that passes through your hands. Every one.

2) Get Turbo Tax.

Beyond a certain point, per I E, it's best to have an accountant.

 

Turbo Tax is my saving grace this time of year. I just got our Rewards coupons from Best Buy with 10 percent off Turbo Tax. I'll be picking it up soon.

 

Every year I put it off until April 10 (and I always get a hefty refund). This year I will knock it out as soon as I get my last 1099.

 

- The tax hit for getting married isn't as bad as people make it out to be. As long as one of you still claimed single for part of the year you should be fine.

- A reminder to everyone, especially the newbies in the business, if you itemize, look for ALL work-related deductions. You can deduct a percentage of your cellphone, cable TV and internet bills as a work expense. If you use your cell X% of the time for work, you can deduct X% of your monthly bill on your taxes; if X% of your cable TV viewing is spent on ESPNNews or games related to your beat you can deduct that percentage of your cable bill on your taxes, same goes for internet use. If you keep that percentage reasonable (like 10-15%, or $150-$200 for the year on a $100/month combined cable/internet bill) you should be safe.

- If you subscribe to your own newspaper (or the competitor's newspaper) as part of your job you can deduct that cost as well (as long as it's not paid for by the employer).

- You can also deduct the portion of work mileage your employer doesn't pay you (I forget what the IRS standard is for mileage but you can deduct the difference between that rate and your company's rate)

- If you can afford it, spend the extra money and have someone do the taxes for you, especially if you've got investments and you've done rebalancing of your account.

 

Medical expenses are also deductible after a certain amount (I forget what it is). You can contact your doctors' offices and get copies of receipts. Gas mileage to and from your doctor is also deductible.

I would try to find a private accountant. We used to use H & R Block, and we kept having to pay hundreds extra in taxes. We switched to another accountant, who has been getting us refunds each year.

 

* I agree that the supposed marriage penalty is not that bad.

* Also agree, get TurboTax or use the web version. I've done that for the past five years. Been a big help.

* Student loan interest has always been a deduction for me. Legislation has changed how much is deductable over the years, but for the past five or so, every cent of it has been deductable.

* When I bought our first home, I was told by many people about the huge refunds I should expect because of the deductable mortgage interest. As I've learned, that's not always that case. While owning a home has many benefits, big tax refunds based on mortgage interest alone ain't always one of them.

* Another thing to consider for home owners: I noticed a lot of discussion about replacing windows and other home improvements. Don't forget to check to see if those upgrades were energy efficient and qualify for a credit. I've replaced all our light bulbs with the energy-efficient kind, but didn't save the receipts.

 

spup, when my company paid for me to move here, I still had to claim all that as income, then spent money, I believe. I took a HUGE hit when I moved between states....I always get like $800 back and that year I owed Kentucky about $900. Very bad news.

I did mine last night online with TurboTax Free. I did it in 10 minutes, and I'm getting $785 back. Just had to pay $25.95 to e-file my state taxes (no refund, none owed, wheee!) and the money will hit my account in 9-14 days.

 

They didn't pay us. They paid the moving company directly so that we wouldn't get hit when it came to tax time.

 

I have a decent amount of freelance in the last year (probably in the $5000 but maybe more, but I haven't kept a single receipt or anything. I know the approx mileage it took for me to get anywehere, and I have a workspace at home, but I also wouldn't want to get audited. How do you report what you think is a reasonable amount of "freelance" wages and deductions, without getting audited. I'm not trying to screw the goverment, but I'd like what's mine...


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Don't try to get to a "reasonable amount of freelance wages and expenses," which implies you are trying to fudge. Report what you earn, deduct allowable expenses. Just don't cheat, keep receipts, and unless you have an accountant, don't push the fringy stuff.