Posted by Linda_H/FL on 3/9/10 9:50am
Msg #326058

Hrrmmm...taxes

Filed my return electronically on 2/22 - told 7-10 business days for refund to hit - checked Friday...refund date moved to 3/9 (today) - checked IRS today - now moved to 3/23...

Rut roh...did I do something wrong or are they unable to handle the volume of e-filings they're getting??

Reply by CopperheadVA on 3/9/10 10:06am
Msg #326060

Mine always gets delayed because I send in my estimated taxes under my name and social security number, but since my husband is the primary name and social security number on our joint tax return, the IRS always delays our return while they match my estimated tax payments to it. It's just a verification process that happens every year with our return.

The IRS once told me that I could streamline things by sending in my estimated taxes under my husband's name and SSN, but I want credit for those payments under my own name and SSN.

Reply by JulieD/KS on 3/9/10 10:59am
Msg #326068

It's not likely any of us here would know, but it's not because the IRS is backlogged. I've only had one delayed return; it was because of the Gov't Stimulus payment of $250. Efile has been lightening fast and on time this year.
Julie

Reply by Gary Boehm on 3/9/10 12:25pm
Msg #326072

Some questions?

a) My state defines the fees we can charge ($1.50 and $2.00) per notary act. I always count the number of "stamps" in a signing. Can I split that amount out (ie $2.00 each), somehow declare that as "Legal Fees" and NOT have to pay Social Security on that amount received? I could put the amount saved towards my own retirement "plan" (such as it is lol). Is there an IRS reference for this?

b) I do not declare part of my home as an office. But I do consider it to be my principal place of business. So when I travel to a signing (even if it is just one that day) I consider all that the mileage to be for business purposes. Most of the accountants say I can only count the miles BETWEEN signing locations on the say day/same trip. Like all of us, I rack up a lot of miles and repairs to my car for this business.

c) I started a Roth IRA several years ago when I was employed part time at a local theatre. I also had business income but I was told I could only put money into the account from when I was employed by someone else, paid by check with taxes deducted. So I only put money in from the theatre employment.
Well I haven't worked at the theatre for many years so my Roth sits there kind of dormant. My question is, can I put money into my Roth from my signing/Notary income? Or is there a different kind of IRA I should start from this income?

Sigh, maybe all this was covered elsewhere and I will get a bunch of "use the Button" messages but I have done that, and I have not found succinct answers to these questions, and I have not been able to find the answers from the people I deal with.

Can anyone on here help me with these? If you know them, references I can give to my tax preparer would help too because we could not find them last year.

Reply by MW/VA on 3/9/10 1:33pm
Msg #326089

Re: Some questions?

These are opinions, but I was a tax-preparer.
a) The only exemption for notary fees is on the schedule SE (Self-Emloyment tax--which is the social security & medicare levy for self-employed). I wouldn't try to list them as "legal fees".
b) I don't agree with the accountants on the mileage theory. It is based on those who use their vehicles in their jobs (can't deduct mileage to or from job, but can deduct mileage from job to appt., etc.)
I set the odometer every time I leave my house. This is a mobile business, and every mile is business mileage, including trips for supplies or to drop fedex packages.
c) I would check with your financial adviser on the IRA contributions. There is a separate type of IRA for self-employed--it's a SEP IRA.

Reply by Gary Boehm on 3/9/10 10:18pm
Msg #326181

Some questions?

Hey thanks for the reply!

a) I misspoke - I didn't mean to say "Legal Fees" but I meant Fees received for Legal Services. Of course the people in Congress (who passed Social Security and are mostly Attorneys) exempted themselves from paying SS Taxes by exempting (their) income received for legal services they provide. Is there an actual line on Schedule SE for Notaries?

b) That's the way I feel about it.

c) I don't have a Financial Advisor lol. Can't afford one and besides - they'd laugh at me for the pitiful amount of money I make! But you are probably right about the SEP IRA. I think I've heard of that but no idea how or where to start one.

Reply by MW/VA on 3/10/10 10:20am
Msg #326240

Sent you a P/M. n/m

Reply by Gary Boehm on 3/10/10 12:18pm
Msg #326276

Thanks, got it, replied! n/m

Reply by KODI/CA on 3/9/10 10:39pm
Msg #326182

Re: Some questions?

Gary, I am a California Registered Tax Preparer. Mileage to the first location is not a tax deduction, nor is mileage from the last location. Mileage between signings, between a signing and a drop location, or any other business related to your business is a tax deduction. In regards to your Roth, the rules were changed. The current rules state that you can contribute to a Roth based on your "earned income", and that includes profit from a schedule "C". Depending on your age the contribution limit will be $5000, or $6000 for you. You can also contribute the same amount into a spousal Roth if your income is great enough. If you have any further questions log onto IRS.com and read the Publication 590. This publication spells out Individual Retirement Arrangements (IRAs)

Reply by Gary Boehm on 3/10/10 12:30pm
Msg #326280

Some questions?

Thanks for the info on the Roth. I had picked up somewhere that schedule C income could be contributed now but I could not track it down or confirm it with anyone I asked. I'll take a look as Pub 590 thanks.

As to travel mileage, if I only do one signing on a certain day and it is two counties over - that is a lot of miles/wear/tear/repairs on my 13 year old car. My "office" or place of business is not over there, nor is it the place where I "work" - it is a one time job. My office is in my home. So, do I HAVE to declare a "Home Office" in my home and a portion of it (which I hear means a guaranteed Audit at some time) JUST to be able to deduct my travel mileage?

Reply by Judy/TX on 3/9/10 11:13am
Msg #326069

E filed mine on 2/16/10 and my refund was deposited to my account within 5 work days.

Reply by Glenn Strickler on 3/9/10 11:31am
Msg #326070

I owe them some more, so I won't file until just before the deadline.

However, my daughter and son-in-law filed just as soon as they got their W-2s and have yet to hear anything.

Reply by RJE/MI on 3/9/10 5:21pm
Msg #326121

From what I saw on the news this morning . . . .

it is not a backlog issue but a unapproved loan issue. Fox News reported they don't have enough $ to pay all the tax returns. I can't remember if they reported that they borrowed our tax returns before we even filed or are borrowing it now. They said it gets worse every year and taxpayers need to stop paying too much in during the year. That's just what I heard on Fox News anyway. I filed on 2/10 and recieved my return on 2/19.

Reply by Sylvia_FL on 3/9/10 5:50pm
Msg #326130

Re: From what I saw on the news this morning . . . .

Renee
They were talking about state income tax refunds. Some states just do not have the money and the residents of those states due state income tax refunds will have to wait.

Reply by RJE/MI on 3/9/10 6:16pm
Msg #326132

Sorry Sylvia

I guess I didn't watch that close. It only caught my attention when they talked about the way they were using our tax returns as a loan without our permission and holding our returns until they can pay it back to us thus delaying some returns longer than they should be. I didn't hear if they were talking about State or Federal. I guess that's what I get for assuming. Thanks for clearing that up.

Reply by Laura_V on 3/9/10 8:12pm
Msg #326148

Your musings are correct.


Now think Recession, decent ppl living in cr@py apts, rich ppl gone to Italy on vaca - wherever.

Middle class and notaries left holding the tax bag.


So IRS is now holding any and all refunds in their piggybanks until we screeeeeeam.


NOT an atty. NOT a pro-consumer mega star
and
I would bug the heck out of those lazy ppl.

No judgments.

I work hard. IRS workers have a pension at my expense.
I work 12+ hours a day.
They fricken better work 5 a day or this redhead might go posta....... never mind.