My parents both collect ssi, thats their only income, can i claim them as dependents?
Answers: Did you provide more than half their support?
If your parents live with you and you provide more
than half of their support you should be able to claim
them as dependents.
See IRS links below for the rules.
Claiming as a dependent or not?
I have a relative that lives near me, I fully financially support this person. He doesn't work, and he have back child support that he owes. If I include him as a dependent on my taxes, can my compensation (if any) be taken from me?Answers: No, this is your tax return not his. However, formulate sure he meets adjectives requirements of a "qualified relative" in establish to claim him as a dependent. He must not be the qualifying child of someone else, not enjoy gross income of more than 3400 (not just wages - income from adjectives sources), and must have lived near you for the entire year.
If he is under 18 and you own adopted him consequently you can. Or if he has a medical or psychological problem that make it so he can't work, then perchance, but there would own to be a reason that you are supporting him instead of his parents.
The rapid answer is, in my feelings, No.
I think here are 5 rules to pass up to that time you can claim a person as your dependent. Go to the IRS website and download the document and read the rules.
What is the proper way to file taxes, when you are self employed?
Answers: There are all sorts of deductions you can claim when you are self-employed, but you should find out about that when you start working as self-employed to know what you have to keep track of, like traveled mileage, business expenses, etc (hopefully you kept records). If you are filing S.E. for the first time, you'll need to file a Schedule C (for business expenses & income to determine your S.E. tax) along w/ your 1040.
You should get a Form-1099 (that'll state what you earned) if the money you made came from another person/employer.
the basics are pretty well covered at the IRS website, so I would suggest you start there:
http://www.irs.gov
If you launched a corporation, use the 1120 or, 1120-S for an "S" corporation.
If you are in a partnership, use the 1065. The accountant will give you a K-1 at the end of the calendar or fiscal year, depending.
If you began a sole proprietorship, you fill out the Schedule C. Familiarize yourself with the form and the instructions. There are a lot of advantages taxwise in using this form. There's nothing on it for cell phone usage and a few other things, so it is vital to keep accurate records and keep up to date.
Farmer or fisherman: Schedule F
Real estate professional or devote a lot of time to real estate development or rentals: Schedule E
There is no form for a LLC. If your business is an individual, use Schedule C, E or F. If a corporation, use Form 1120 or 1120S.
Talking about the proper way means to file on time. You must send to the IRS 1040-ES - estimated tax. You must do it quarterly. As a rule of thumb, You must pay estimated tax for 2007 if both of the following apply.
You expect to owe at least $1000 in tax for 2007 after subtracting your withholding and credits.
You expect your withholding and credits to be less than the smaller of;
90% of the tax to be shown on your 2007 tax return, or
100% of the tax shown on your 2006 tax return. Your 2006 tax return must cover all 12 months.
Send in by April 15, June 15, September 15 and December 15. If you agree to have the IRS debit a business checking account, be careful. Have a reliable way of reminding yourself that the money is going out, like a note when you turn on your computer.