ugh...tax help? i beseech you!

ScottyB · 03-30-2008, 09:09 PM

yeah not the most exciting topic, but maybe you guys will know what to do?

Jen and i filed our taxes about 2 weeks ago (thought we were bad mamba jambas for getting done early!) only to get a letter in the mail on friday from the apartment complex that had a 1099-MISC form in it that documents the $750 bucks we got for referring a new renter (couple that we know), which is entered as "nonemployee compensation." so, now i have to ammend my taxes so my butt isn't in trouble.

the tricky part is i do my taxes through turbo tax because i suck at this stuff and its easy to use. however, TT sees this 1099-MISC and classifies me as either recieving some kind of bonus from work or that we're a contractor doing outside work for the apartment complex. we sort of fall into the latter which then means we are considered a business, which is also not true and starts making shit really complicated (need a business name, tax ID, etc).

what can we do? i've tried googling for info or help but nothing i want is coming up. the closest advice i have is that it should be entered in line 21 of the 1040 form as "other income"? other than that i could take it to an accountant and probably be laughed at considering how close it is to tax deadline and how busy they are. most likely i'll have to talk to TT live help since they seem like they'd know considering it's their program. any accountants and/or smart people here who know their way around this stuff?

we'll probably call the apartment office tommorow and see if they know, i imagine this has occurred in the past?

flintster55 · 03-31-2008, 12:27 AM

I'm in a tax class now actually and from what I've learned you need to file a 1040x which is an amendment to your original 1040. I'm not sure if you can do that on TT but I would assume you probably can.

flintster55 · 03-31-2008, 12:31 AM

Ha! it turns out maybe I have been learning a little these days in class

about.com article Wrote:It happens to the best of us. You gather all your tax documents, crunch the numbers, and double check everything on the tax return. No sooner have you dropped the return in the mail or pressed the efile button, but a new W2 or 1099 comes in the mail. Ah, now you remember. And now you need to revise your tax return.

Revising your tax return is done by filing an amendment. You use Form 1040X, plus a new Form 1040, and any necessary schedules and forms. Amended tax returns have to be filed on paper, and they can take 8 to 12 weeks for the IRS to process.

HAULN-SS · 03-31-2008, 07:39 AM

Pretty shitty of them to send that so late. When was the referral? They should've gotten that to you like 2 months ago.

ScottyB · 03-31-2008, 08:34 AM

HAULN-SS Wrote:Pretty shitty of them to send that so late. When was the referral? They should've gotten that to you like 2 months ago.

yeah, i was super pissed. we referred that couple literally 7-8 months ago.

Flintster, thanks for the info. the 1040x is what i was looking at but i'm torn as to how i should enter it because of the funky 1099-MISC form.

flintster55 · 03-31-2008, 09:39 AM

Which box is the $750 listed in on the 1099?

mrbaggio · 03-31-2008, 10:44 AM

I have a similar situation. I have a bunch of 1099-MISC forms I had to add also. I am using the most basic version of TT. It will treat that income as a small business income. You won't need a tax id number or business name because the gov will just use your name and SSN.

I am at work now so I can't look it up, but if you are still having problems I will check where in TT I entered my 1099-MISC income. I have not done it before, but I bet TT would have some procedure to refile if you add more info.

ScottyB · 03-31-2008, 12:37 PM

flintster55 Wrote:Which box is the $750 listed in on the 1099?

line 7, "nonemployee compensation"

mrbaggio Wrote:I have a similar situation. I have a bunch of 1099-MISC forms I had to add also. I am using the most basic version of TT. It will treat that income as a small business income. You won't need a tax id number or business name because the gov will just use your name and SSN.

I am at work now so I can't look it up, but if you are still having problems I will check where in TT I entered my 1099-MISC income. I have not done it before, but I bet TT would have some procedure to refile if you add more info.

thats exactly what happened, treated it as a small bussiness. that's relieving to know you can just use your name and SSN. We're going to check with the apartment office and try TT again. thanks for the offer of help, i may take you up on that!

flintster55 · 03-31-2008, 02:48 PM

Line 21 "other income" should be where that is recorded. It is probably subject to self-employment tax as well since you are not considered an employee for them. I'll double check with my tax professor in class today if I get a chance though.

ScottyB · 03-31-2008, 02:52 PM

flintster55 Wrote:Line 21 "other income" should be where that is recorded. It is probably subject to self-employment tax as well since you are not considered an employee for them. I'll double check with my tax professor in class today if I get a chance though.

thanks man. yeah from what i understand i will be taxed since i'm now apparently a self-employed rental referral agent for new customers :roll: ah well they have to classify me somehow i guess.

BLINGMW · 03-31-2008, 03:48 PM

congrats on the new job :beer:

Jess · 03-31-2008, 06:35 PM

I'd just enter it as "other income" and be done with it. Either way, the end result is that you want it added to your gross income for the year.

Today's Lesson: Support the Fair Tax! :wink:

**JackoliciousLegs** · 03-31-2008, 09:05 PM

Great idea!

...Taxes based on wages spent makes much more sense. Especially for those people who spend a greater percentage of their incomes immediately! Tax credits for those who hoard their money. Less money going towards useless things like public education. I'm loving it! Flat taxes? Looks great to me! That way I can make use of my privileged upbringing more effectively! Sweet!

rezarxt · 03-31-2008, 09:14 PM

i just finished mine..i had been putting them off for weeks lol. I went through 2 forms for state and 4 forms for federal because Im an idiot....

mrbaggio · 04-01-2008, 02:29 PM

You used a paper document to do your taxes? What year is it? Do you crank start your car too?

WRXtranceformed · 04-01-2008, 04:20 PM

mrbaggio Wrote:You used a paper document to do your taxes? What year is it? Do you crank start your car too?

:?:
My accountant filed my return as a paper document. Are you talking about for doing calculations or for filing the return in general? I thought everyone had to send out a hard copy of your return to the IRS.

mrbaggio · 04-01-2008, 04:23 PM

Both.

Using paper for any part of a tax return is kooky talk. I use the internet. They have it on computers now.

Jewels · 04-01-2008, 04:24 PM

WRXtranceformed Wrote:
mrbaggio Wrote:You used a paper document to do your taxes? What year is it? Do you crank start your car too?

:?:
My accountant filed my return as a paper document. Are you talking about for doing calculations or for filing the return in general? I thought everyone had to send out a hard copy of your return to the IRS.

Our accountant did the same thing. She always gives us a hard copy to mail. I like it.

Maengelito · 04-01-2008, 04:53 PM

mrbaggio Wrote:Both.

Using paper for any part of a tax return is kooky talk. I use the internet. They have it on computers now.

the internet? is that still around?

e-filling is so much easier.

WRXtranceformed · 04-01-2008, 04:57 PM

Do you get proof of delivery through e-filing?

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