Thanks for this. Apparently the form is still active, although it still seems a bit vague. Also, it looks like I (and many other people) could be screwed anyway, at least for 2011, because to apply for an exemption, you have to apply for it by April 30 for the actual year for which you are applying to be exempted. Here is the link to the form: http://www.window.state.tx.us/taxinfo/taxforms/50-286.pdf Anyone else able to make heads or tails of this? And isn't this the responsibility of the leasing company, to make these forms known and available at the time of the lease contract being signed?
Quick tax question -- will rep for help. In addition to being a full-time employee, I've made over $5,000 in freelance work this year. 1. Do I NEED to do both returns at the same time? Or can I use Turbo Tax for my W2 and an accountant for the contract work? 2. When it comes to writing off "business expenses", how much documentation do they need? Or can you simply.... write it off. I'd like to put a computer and software on it. Thanks in advance. Rep awaits you.
Need to report it all on one return. Your freelance work will go on schedule c. Deduct what you can support (receipts and credit card/bank statements).
There is no separate return for contract work vs full time. It all goes on the same return you just file a different schedule/form for self employment. That is the info I got. You dont need to submit any documentation with your return but they do say that you need to have records in case of an audit. They probably wont audit you for something small like computer and software but it is good to have receipts to protect yourself otherwise expense at your own risk if you can't prove that you actually bought these things.
You don't have to submit any supporting documentation as long as you don't go overboard claiming things left and right. I don't save my receipts but I buy all my gear on the same credit card so I'll have record of it if I get audited.
You file your freelance work as a separate schedule, but it's all part of the same return. And as far as writing off business expenses, as long as you aren't claiming like $50,000 worth of items, you should be fine. Just don't go overboard, and you'll be fine. If you have the receipts for your purchases, just keep them in a safe place.
I do taxes for a living and have to admit, this was my worst year ever. I get paid too much!!! I was expecting to be able to deduct my student loan interest, but it turns out due to my income, I was phased out. I also rolled over a 401k into a Roth IRA (have to pay the taxes up front), so that added to my income. I guess she is just going to have to wait that much longer for her ring On a positive note, we should be set for retirement....in about 35 years. Pugs
Trip to Cali, new MacBook, new 51" hdtv and a brand new living room. With plenty left over. Thanks, kid!
