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Thread: ack! screwed up. tax stuff.

  1. #1
    Featured Member CrescentLuna's Avatar
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    Default ack! screwed up. tax stuff.

    All right, here is the deal. I've been putting away money, for awhile 1/2 of what I made though recently it has been less, more like 1/4-1/3. However, the last six weeks or so I lost my log book [I think I can get it back] and haven't been recording. I think if I get it back I can make a reasonably accurate guesses, three of those weeks I only worked one day a week in NY and 2-3 days a week in MD. After that I worked only in NY 2-4 days a week. If I ask my club in NY which days I worked and how many dances I did, which I know they have on computer, I can probably make a reasonable guesses at income.

    I've been working as a dancer since February.

    Problems: I haven't been making estimated taxes. I KNOW I am considered an independent contractor, as I've a signed statement that I am booking as one at the NY club. I asked another dancer what she/the club did about taxes and she just said "you can ask to be put on the books or not."

    I have very little money at the moment. I spent all of my money, gross income, from working Wednesday night [$87] on a vet visit and buying a heating pad and babyfood for said pet. Haven't paid rent yet, have enough but am going to wait until after this weekend to actually pay it [landlord doesn't care].

    When I tabulated my income in July I'd made 11k, had saved 5k. Four months later I've saved about 7.3k and am not sure what I made, estimated about 23k total. I can maaaaaybe deduct $500 off of that, just clothing/shoes/nights at motels while I was working in MD, but I'm not really counting on it.

    Final thing, I have a letter somewheres from my parents to the health department [so I could get reduced charge on GYN exams and such] saying my sole income is $600/month from them [which lasted approx. six months in reality]. This was from last year when I was just a student - they didn't claim me for two years, but I had a normal job before that so had legimate money saved.

    I don't know what to do. Should I try and pay estimated tax in December or what? Should I just ask my parents to claim me - not like they file until August but yeah.
    I was hoping that I would be able to make enough to be considered independent for some financial aid type of things [25k if I remember right], but not being audited, or getting my parents audited, is a bit more important.
    "I still have my name
    I still have my face
    I have not run away from home
    Doesn't seem so long
    If I now embrace
    Every single thing I've never known"

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    God/dess Zofia's Avatar
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    Default Re: ack! screwed up. tax stuff.

    Hire an accountant who is an enrolled agent with the IRS. They work these types of situations out all the time.

  3. #3
    Banned Melonie's Avatar
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    Default Re: ack! screwed up. tax stuff.

    If your total 2004 gross income is only going to come out in the $25,000 ballpark, and if that income is split between two states, odds are that the amount of federal and state income taxes you will wind up owing will be pretty low - wild guess $3,000 federal and a few hundred each to NY and to MD. Don't panic. Just save up to make a January 15th 2005 estimated tax payment to cover the federal, NY and MD tax liability on all of your 2004 earnings.

    If this is the first year that you have reported income, the IRS has a "loophole" which will prevent you from getting into too much trouble. IRS rules say that estimated taxes due this year need not be higher than the amount needed to cover last year's tax liability - no previous year's income, no previous year's tax liability !

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