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First let me extend my sympathy for the loss of your mother. Losing our parents is never easy, I know
You are not required to file Federal income taxes if your income is less than the filing standards
For 2012 you were not required to file unless your income was > $9750
It sounds to me like the only income you currently receive is from your parents
If that's the case, and you report the income.....this makes you self employed and you would need to file a Schedule C (Form 1040)
Profit or loss from a business
If your net income ( the $ your parents give you for helping them) less any expenses you may have is >$400, then you would also need to pay SE tax on that amount
which is roughly 15% of the net
However, as i stated, you only need to file a Federal tax return if your income exceeds %9751
So the real question here is..........are you being paid to take care of your parents, or are they more or less "gifting" that money to you
Gifts are never taxed to the receiver
If your parents "gifted" you more than $14,000 in 2012 ($13000 in previous year)
Then they would have to file form 706 gift tax form, but they would NOT have to pay tax on the gift since there is no tax due unless your parents "gift" more than $5M over their lifetime
Here are the yearly and lifetime exclusions on gift tax for previous years
I truly hope this information is helpful but please do not rate until you are satisfied. If you want to click on 1 or 2 just click on the continue to work with me button instead. You will then be able to add any other info or respond to what I have posted so far. Rating 3-5 gives me credit and a good rating but you can still converse with me.
Please let me know if you have any follow up questions
I will tell you that there a many people who don't file a Federal tax return simply because they didn't have enough taxable income to do so
There are no repercussions from the IRS since if you don't make enough income to have to file
HI so, if I say that I was gifted the money, which is sort of true since it was never a real "job" but more of a way to enable me to care for them, then it was more of a gifting. so the 1200 x 12 for the last years was 14400, which is sort of right around there.
so the IRS would be OK with it if it was a gift. Is it considered income if I live with my father for the purposes of caregiving? I don't have to declare that free rent as income or what have you do I?
I'm just making sure that I file the forms reasonably, and the IRS is happy. I did have some extra income last year since I did a little 1099 work for a friend. That I'll declare.
Do I report the gift where it asks in the preparation?
feel free to answer in the morning I'm not in a super rush.
I have a second question that relates, but might be a second fee, you tell me. I'll add it after we get these cleared up.
what are your questions?
HI sorry it' 3.a.m. you can answer them in a few hours, thanks!
Ok..........till tomorrow then?
sorry, I'm actually traveling and forgot the time
no problem.........thank you
Hi the questions are in the conversation right after your reply. Can you address them.
Also, I need to see what to do re repayment. I can add funds to your fee for that since it's an additional or I can arrange a tip.
Here are the questions again taken out of the above conversation.
Second Question is about how to handle arrears.
Hi just saw you pop in
sorry it's a mish mosh
Yes, this money could be considered a gift, which would make it non taxable to you, and since your mother was alive for most of the year , your father would not have to file the 706 gift form, since he could have "gifted" you up to $14,000 per year, and your mother could also have "gifted" you $14,000 per year
ok, how would you like to handle additional questions-- via tip?
sorry, you're answering. Sorry. I'll wait. Thanks!!
As long as you are not being paid by the state of any other party to care for your parents, then the IRS will not have a problem
Consider all the adult kids who have had to move back in with their parents due to lack of work
I think that covers the first questions with the agreed fee. Want to answer a few more for either additional fee or tip?
That would be the proper thing to do in that case
I have that paperwork
sure....tips give me a better cut lol
OK, here are the questions:
I'll give you 15 per question, so another 30 will that be OK?
They aren't hard.
see what you think
not a problem
1. The IRS filed my taxes for me since I was so late for 2009. But I need to file the state.
I got turbotax for 2009, so I can enter all the info and then file the state too.
I've never used Turbo Tax......so I'm not following your question, other than you need to file your state return
BUT, the Irs didn't send me the return that I can find, and I need the numbers off of it. Is the easiest way to do it to request a transcript? That will delay the filing further. Even though they were already filed and they determined that I owe 1790.00 because I was employed for part of the year
ok.....now I get it
the arrears are my second question. The first question relates to how to get the back forms quickly, if possible
I think I just have to wait till they mail me a transcript
Anytime someone does not file a tax return, the IRS files one for them using the singe (or married filing separate) status and the standard deduction..........if you had enough withheld to cover your taxes, then they leave you alone. If you didn't have enough withheld, then they send you a bill
Yes, you will need the transcript
sorry, to be clear-- additional question 1 is--- HOW can I most expedidtiously get a transcript so I can input the info, and then at least file my taxes for the feds and state.
How much do they say you owe them?
15.00 to you!
1790. But I haven't done the return yet. I did work part of that year, and did receive 99 weeks of unemployment.
it should be accurate.
you had no withholding on your unemployment?
but It would help to have the transcript since it will give me a return to send to the state, late though it is
nothing you could itemize
well, now that I can sit down and go back to it, I'll file an amended return
so I'll have to get the transcript, and then see what I can do.
Did you have any W2's for 2010?
I have NEVER not sent in my taxes before. Combine unemployment and parents with dementia and it just fell by the wayside
yes, I have the stuff for 2010, the IRS sent me but if I start with turbotax in 2009 it will input transfer all of the data into 2010 so it's consistent
I'm trying to figure some thing out....so be patient with me for a second, ok?
chats can be difficult
Have you always been self employed,or would you have received a W2 for 2010
I used to work for Tiffany's in marketing. Yes, the jeweler. If you get the catalog I used to work on it. So yes, w2 income
but NO, not for 2010
we all got laid off in January 2009
For 2010 you only had unemployment?
so no so for 2010 I had a month but then had unemployment
ahhhh that's what I was getting at
and here's why
the transcript will show you all income reported under your SS# XXXXX the year 2010. Including your W2 income, but it will NOT show you your state withholding. That you will have to get from your employer
to clarify--- Dad didn't start giving me gift until 99 weeks ran out.
I can call them.
SO, now are you ready for the second question?
BTW, I am usually a lot more tidy than this. The only reason it fell by the wayside was that when I didn't file for 2009 I said "well, I'll file in 2010" that will be OK. Then you realize it's hard, and you don't have all the paperwork, and you procrastinate even more. If I made a bazillion dollars I'd be worried, but I didn't.
So this is the clean up.
plus, if I put stuff in turbotax when I go to do 2013 the 2012 will import. keeps things consistent for the IRS
You'd be surprised what I've seen in 27 years of practice....so no worris
OK QUESTION #2
(sorry, still on my first cup of coffee)
I called the IRS back in March to ask for back copies of supporting documents. They sent them, and said they would arrive by June 14
Based on that I promised to fill them out, file them by July 14 and then work on a payment program for the 1790.
So the paperwork doesn't come. I call the IRS on July 5 and tell them, and I get a NICE NICE Irs guy who says Ok we can send the paperwork again and give you an extension to file. Then he also sent the paperwork for the payment plan
so it's delayed in coming (just got it on the 12) I call the IRS (yes, I'm abroad, but I can do it just like I'm chatting with you) and then you get the NASTY agent who says "you are past your extensions for the payment plan" the next step is levy's and collections. CRAP< I thought, I just wanted to ask for another week or two to get all of the returns to them, and then start the payment plan. I had agreed to pay 100 per month.
SO, I don't know how to handle this. I can send in good faith payments starting tomorrow, but will it matter?
Should I call again? I don't want to get levy's or judgements
I thought to file the paperwork, and then just start paying as agreed and see what happens.
I thought if I call back I'll get a nice agent.
seems to work that way
I'm having coffee too. Love it.
yes......it does....I often have to call 3 or 4 times to find a nice agent to work with my clients
I didn't realize you were overseas.............but in some way that may give you an advantage.....
Do you have any property the IRS could put a lien on?
just a couple of bank accounts
I have enough to pay the 1790 and just get rid of it
but if they'll give you a payment plan, why not
I would rather NOT pay the 1790
all at once
You might want to pull the money from the bank accounts until this is over
but alas, if it makes them happy, why not
You may set up a payment plan, but interest continues to accrue until its paid in full
OK, but will they just take the arrears or worse
If I call them and they say it's 1790 and I just pay them, that solves the problem right?
they could add penalties for not filing and interest
but if they tell me the amount, I can settle it fully
I have half a mind to just settle it to make sure we have no problems.
if that's easy, do you recommend it? Levy's are a pain
Have you received any letters from the IRS telling you how much you owe? (you're getting the $1790 figure from somewhere)
It's for the 2009 taxes. It's way past due.
they told me verbally both times I called
The last nasty rep said "it's too late" but I've been calling, so maybe I should call again.
It's only been a week or so!!!
since the second extension expired
Then I think if I were you, I'd find another nice person at the IRS, tell them you're ready to send the money in full.......ask where to send it (since you're currently overseas) and ask them to put notes on your account that you are sending the payment in full, and then enclose a short note with your payment along the lines of:
Per my phone conversation with Representative _________ here is my payment for my taxes in full for year 2009. Be sure to include your SS#
excellent!! Unless they offer me another payment plan! I'll call again...and again.
Most of the reps are pretty nice.........and you have to remember that the IRS is like any other creditor...they want their money without having to pay to get it
I think we're good.
Thanks Anne. If I need more help you'll be in my account here. I'll go straight to you!
enjoy your coffee!
yes.........but be sure to put my name IN the question line
I called the IRS again and found that I had asked the wrong question..I wanted an extension of the time to file and pay, and they said I had until the 6th of September.
I didn't get the returns for the year that they filed for me, but I asked for another copy.
They said they can't process a payment plan until I've caught up all of the years, but I'm doing that and will then get on the line with somebody and fax it to them.
Thanks for all the help! Huge help.