Posted: 1/20/2010 7:14:42 PM EDT
|
Thought I would put this up and give everyone a place to ask their tax related questions.
So I will start: I bartered/traded website design for Chiropractic Care, Cognitive Training and a few other things this year that total about 10k value in trade to me. Where as my website design value was far less than what I was receiving in trade. What do I need to be able to claim this as income on my taxes this year? Contract or something similar that proves that the work was done? I just don't know and I can't find crap for answers online. Thought I would throw it to the GD and see what kind of bad advice I could get 
This is all I could find online about this type of transaction http://www.irs.gov/businesses/small/article/0,,id=188095,00.html |
|
Quoted:
How does reporting extra income help you out? Posted Via AR15.Com Mobile This. Confused. Also, I was told that I could get extra back if I count up how much I drove to work this past year, any truth to that? Any other basic things that would help a poor college student out? |
|
How about sales tax, and government fees and taxes for stuff like power bills, phone bills, and building permits? Is any of that tax deductible? Like, if I save all my receipts for the year and total up all the sales tax I paid, can I write that off?
Also, if I get bumped into the next tax bracket (which might happen this year), but remain right at the bottom of it, do I get less take-home pay than if I stayed at the top of the lower bracket, or are these things pro-rated somehow? |
|
Quoted: How about sales tax, and government fees and taxes for stuff like power bills, phone bills, and building permits? Is any of that tax deductible? Like, if I save all my receipts for the year and total up all the sales tax I paid, can I write that off? Also, if I get bumped into the next tax bracket (which might happen this year), but remain right at the bottom of it, do I get less take-home pay than if I stayed at the top of the lower bracket, or are these things pro-rated somehow? You don't get less take home pay. You pay 10% on every dollar from 1-8,000 15% on every dollar between 8,001 to 34,000 25% on every dollar between 34,001 to 82,000 28% on every dollar between 82,001 to 171,000 and up to 35% so on 82,000 you $800 on the first 10,000, $3,900 on the next 26,000 and 12,000 on the next 48,000 for a total of 16,700 in taxes and takehome of $65300 For 83,000 you $800 on the first 10,000, $3,900 on the next 26,000, 12,000 on the next 48,000 and $280 on the last thousand for a total of 16,980 in taxes and takehome of $66020 |
|
Strictly speaking, the goods or services you received are barter income and need to be reported on your taxes.
In practice, this sort of thing gets overlooked all the time. If I trade a winter of shoveling my neighbor's driveway for a summer of him mowing my lawn, technically the value of his lawn mowing is income to me. But seriously, why bother? OP, can you answer these questions? 1: Do you already file (or are you already planning on filing) a schedule C small business return for your website design business? 2: What are the specifics that make you believe reporting this income will improve your tax situation? |