Tax deductions/expenses press?
I often use sites resembling Elance to find support for my business, and some of the contractors are not US citizens and live outside the US. My accountant seems to get the impression I cannot count money spent through that tool as a business expense, of if I do it would not 'hold up under audit', but this seem strange to me since elance keeps a clear transcription of the money spent and where it is going. Can anyone administer me any advice on this - any corroborating or contradicting what my accountant says? Thanks!Answers: It is deductible. The expense is both temperate and necessary for the conduct of your business.
Here is an IRS relationship which will give you more detailed, and straightforward to read, information on deducting business expenses:
http://www.irs.gov/publications/p535/ch0...
Generally speaking, informative expenses are only deductible if salaried to an accredited conservatory, and only if you are taking classes to preserve the job you already own. you may be able to reduce by it as a misc. business expense, subject to a deduction equal to 2% of you AGI.
I guess it depends on what type of "support" info you are conference. It looks like the site is a headhunter type site and am not aware of any instrument to legally discount hiring expenses, except perhaps as an exposure expense.
Good luck!
jwishz is right
If I over pay my state income tax and get a refund in 2006, is that refund taxable in 2007 on federal return?
Answers: Your state refund is taxable in some cases.
None of your refund is taxable if, in the year you paid the tax (2006) you either a) did not itemize deductions or b) elected to deduct state and local general sales taxes instead of state and local income taxes.
If neither of these apply to you your refund is taxable. You should have received a 1099-G form from your state department.
If you did itemize deductions and you deducted state and local income tax on line 5 of schedule A of your 2006 return, there is a worksheet in the 1040 instructions to figure out how much of your state refund is taxable.
Good luck
The refund is only taxable if you claimed your state tax paid as a deduction to your federal taxes (must have itemized your deductions). If you didn't subtract the tax, you do not need to add any refund back to your income in the following year, even though the state will likely send you a 1099-G because they may not know if you claimed the tax or not.
Taxes - Multiple States, Paid Taxes To Both?
Let me try to explain my question:I moved from State A to State B contained by the middle of the year but continued to work for the same company.
When I moved within mid-year, BOTH State A and State B income taxes were taken out of my check.
I made 100k during the year which is correctly reported as my "Wages,tips,other comp. surrounded by box 1" for Federal.
But here is my problem: Because I had be paying income taxes to both states , my wages,tips,etc in box 16 have :
State A: 100k
State B: 50k
Is this how it should look? Because technically I only made 100k, so when I moved mid-year should taxes to State A own stopped and it should only read 50k to respectively?
I hope I am making sense. Please help if you can. Do I obligation a new W-2?
Answers: you requirement a new W-2.
the sum of the different state wages have to equal the Federal wage.
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not sure of your particular grip ... when you moved your family, where on earth was your opening?
if your job be in State A and both living and family moved to state B, afterwards you file constituent year return in State A for ONLY the wages earn while you worked/lived there. You also profile a part year return surrounded by State B for the income you earned while your undertaking was nearby.
if your job be in State A and you moved to state B but the available job stayed in State A, you payment tax contained by State A on all your career income plus your other incomes for the period while you lived here. You also file a quantity year return in State B, but should draw from a credit for taxes paid to State A. {there are some exceptions to this.}
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California is disreputably evil for trying to tax the income of associates who do not live in the state -- they can't vote surrounded by CA, of course, so why should they get hold of anything but the dirty end??
GL