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Thread: Self Employed, going to school, and first year paying taxes...AHH

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    Member MissConceited's Avatar
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    Default Self Employed, going to school, and first year paying taxes...AHH

    I just started online school for psych a couple weeks ago, and my mine is churning as far as how I can come out on top without having to owe much money. I'm going to be getting back checks for financial aid because i'm qualified for more than I need. I am currently a RT and online Domme, PSO, and cam on sites as well as independently. Basically I have money coming from all over the place. I read in a thread somewhere about making myself an LLC and get taxed as an S-corp. Does anyone know if being in school will affect my taxes at all as well? I'm thinking about saving the checks I get back from financial aid and putting them into an index fund.

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    Member MissConceited's Avatar
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    Default Re: Self Employed, going to school, and first year paying taxes...AHH

    I'm also not saying I want to avoid taxes...I just am trying to figure out my deductions and such so I won't be quite as fucked in the ass.

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    Default Re: Self Employed, going to school, and first year paying taxes...AHH

    three key questions ....

    - are you age 24 or older ?

    - are you a 'full time' student in terms of credit hours ?

    - have you filed tax returns in previous years ?

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    Default Re: Self Employed, going to school, and first year paying taxes...AHH

    you need to make clear to your parents that you are filing as an independent. Then you get to use all of the school tuition and other expenses as your own deductions! that'll be a huge saver.

    but honestly you are better off going to an independent (ie not hr block) cpa so everything can get filed right.

    but I'm assuming you just started working in 2014 so you have until 2015 to sort everything out.

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    Default Re: Self Employed, going to school, and first year paying taxes...AHH

    Download and use expensify

    Get a good cpa that handles all the industries you draw from and is creative but not nuts

    Keep GREAT Records

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    Default Re: Self Employed, going to school, and first year paying taxes...AHH

    That person is MS Liz - She knows the tax law, asks the right questions, will find every deduction, and is always available to answer strategic investing / tax planning questions.

    Email her at: [email protected]

    Quote Originally Posted by pinups4 View Post
    Download and use expensify

    Get a good cpa that handles all the industries you draw from and is creative but not nuts

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    Default Re: Self Employed, going to school, and first year paying taxes...AHH

    you need to make clear to your parents that you are filing as an independent. Then you get to use all of the school tuition and other expenses as your own deductions! that'll be a huge saver.
    Unfortunately of the OP is under age 24, it isn't 'just' a matter of the OP and her parents agreeing on who gets to claim who. FAFSA and the IRS have fairly strict rules in this regard.

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    God/dess Zofia's Avatar
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    Default Re: Self Employed, going to school, and first year paying taxes...AHH

    Quote Originally Posted by charlotte. View Post
    you need to make clear to your parents that you are filing as an independent. Then you get to use all of the school tuition and other expenses as your own deductions! that'll be a huge saver.
    The normal rule is tuition, books, room and board are not deductions. They would only be deductions if they were training in your current trade or business. Not deductible if training for a new trade or business.

    HTH
    Z

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    Default Re: Self Employed, going to school, and first year paying taxes...AHH

    You can get a tax credit of up to $2,500 for tuition.

    http://www.irs.gov/uac/American-Oppo...ns-and-Answers

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    Default Re: Self Employed, going to school, and first year paying taxes...AHH

    Quote Originally Posted by eagle2 View Post
    You can get a tax credit of up to $2,500 for tuition.

    http://www.irs.gov/uac/American-Oppo...ns-and-Answers
    And often times tax credits are better than deductions. However, try to deduct tuition improperly and see the audit notice come your way.

    Z

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