I just had a very frustrating visit with an accountant, and I think he made things more confusing. If anyone can help, I would be super appreciative. Here are my "itemized" questions:
1) I'm filing my Schedule C. He told me that filing as a sole proprietorship with no itemized deductions was a red flag, and that I should be deducting my clothes, makeup, etc. and claimed that the "housewife test" is "malarkey". I do not intend to listen to him on this point, since the consensus of SW is a big fat "don't do it". I cannot think of anything else to deduct that lies outside of the housewife test. Thoughts on this?
2) Accountant says I "have" to file my gross (before house/tipouts) and report house/tipouts as deductions. I think that's what he was alluding to in the lack of itemized business deductions. The sticky thread in Dollar Den says don't do that due to the 1099 issue. When I pointed that out, he basically implied that I should be attempting to issue 1099s (yeah, never mind the logistics of asking a manager for his SSN...) Am I correct in just filing a net amount and not doing the deductions? I know Melonie says that's the most audit resistant method.
3) One of our DJs deducts his mileage from home to work; I know that is considered commuting and not deductible. However, I've read on several sources that if going from a "home office" to work; like if I am filming clips or doing something for another business (i.e., writing ads for riding lessons or doing website maintenance), then going to the club, and then coming home to do my spreadsheets/paperwork/work-related emails, I can claim all the mileage as long as the office is a separate room in my house not used for other things. Yes, no, maybe?
4) Quarterly taxes. What should I do in this scenario? This year, I owed nothing in income tax due to a hefty Lifetime Learning Credit. Next year I expect the same situation, I would guess maybe a few hundred if that. Bf and I are intending to get married and file jointly next year, and he has the American Opportunity credit, which is good for $2500 and is applicable to self-employment tax. He has a W-2 job and is generally owed a refund each year anyway. Would you divide up the standard deduction, personal exemptions, and credits all by 4, and calculate/pay the tax each quarter? The accountant told me I need to pay in 30% of my gross (before house fees/tipouts) and just take a refund at the end of the year... I don't see WHY I should need to do that if I am unlikely to owe that much, and I would rather not tie up liquid cash that way waiting to get it back in April.
Thank you SO much in advance!



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I was referring to my 2015 taxes, that would be due in full by April 2016. Given that my situation for filing 2015 taxes is likely to change with credits and whatnot (though I will still sock away 30% of my take-home just in case), I was going to just pay out in the quarterlies equal to what was owed for 2014. I just wanted to clarify that I was understanding correctly, that you can pay either 90% of the tax owed for 2015, or 100% of what was owed in 2014, to avoid an underpayment penalty.


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