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I'm confuzzeled!!
Like that consolidation loan commercial... "Someone please help me!"
Since I started dancing I worked for a club that handed out a 1099-so I simply did my taxes with a Schedule C. Last year I changed clubs and now receive a W-2 (the W-2 is formulated by them taking two dances each shift-I keep everything else). So I am stuck on where to report my other income (dances/tips) and where to take my deductions, thus the reason I plan on getting an accountant.
Now, here's my dilema- I have yet to receive my 1099 from my previous club so while I'm sitting on it waiting, I figured I would file an extension since time is running short. Well in order to file an extension, you need to estimate taxes. I have absolutely no idea! I thought that was the whole point of an extension-you haven't done your taxes yet!-hell if I knew I wouldn't file for an extension in the first place!
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Re:I'm confuzzeled!!
when you file for an extension, all you're extending is the filing of your ACTUAL tax return. You're still required to send in your estimated tax check on April 15th.
There's nothing preventing you from claiming W2 wages and tips from your new club on your 1040 form (with the tips appearing on the other income line), and also filing Schedule C for the money you estimate you earned at the previous club even though the club didn't 1099 you. The thing you have to be careful of is that anything you report on schedule C will be subject to independent contractor self-employment tax, whereas anything you report on the 1040 form itself will not since your W2 employee earnings aren't subject to self-employment tax .
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Re:I'm confuzzeled!!
Technically, all your "employee business expense" deductions from your W-2 job (if any) should go on Schedule A if you itemize deductions. This stinks for a few reasons. 1) You have to itemize to get any benefit from them; 2) They have to exceed 2% of your adjusted gross income and 3) They are an alternative minimum tax adjustment. I would report them on the Schedule C, especially if you have other 1099 income and non-W-2 income from your current club.
As Melonie points out, your extension is an extension of time to file, not to pay. For this reason, I'd estimate what you owe on the high side. At the absolute worst you can have the excess refunded to you or applied to your 2004 estimated taxes.
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Re:I'm confuzzeled!!
Thank you both very much for the information
Thankfully this accountant that I'm using is going to get me in on Friday night-so looks like I won't need to file an extension afterall (I thought for sure calling him with a week 1/2 to go he wouldn't be able to get me in) Keeping my fingers crossed on the results!
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