How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Stephen G. Your Own Question
Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 6460
Experience:  Extensive Experience with Tax, Financial & Estate Issues
Type Your Tax Question Here...
Stephen G. is online now
A new question is answered every 9 seconds

There, I am doing my own taxes and I have a couple of

Customer Question

Hi there,
I am doing my own taxes and I have a couple of questions.
1) I started a web company in 2014 under my name, and it ultimately failed by the end of 2015. No revenue was generated and I never put in the paperwork to register the company as a corporation (so all incurred expenses for 2015 were under my name).
2) throughout 2015 I also did part-time subcontracted work for a creative agency.
The only income I received in 2015 was from the creative agency and I received a 1099- MISC form (primarily Public Relation and web development work).
QUESTION #1 - can I file my federal return using the 1040 form and include the expenses from my failed web startup business (i.e. flyers, software, etc.)? What should I make my occupation so that it encompasses both of the occupations above (Independent Contractor? Web Startup Founder?)?
I also did not make enough estimated payments throughout the year and wont be able to pay the remaining balance until May.
1) Throughout the year I made my payments using the form 1040 Estimated Taxes - Tax Year 2015 and also via Form 1040 Balance Due - Tax Year 2015 -- were these forms correct/okay to use?
2) I am going to have to pay my remaining tax balance for 2015 in two payments (one now and one in May). Should I use the 1040 Balance Due form? I am aware that I will incur late penalty fees.
Submitted: 10 months ago.
Category: Tax
Expert:  Stephen G. replied 10 months ago.
How much were the expenses on the web business?Occupation - ConsultantSure, the payments went in that's the main thingNo. You will be billed for the balance due.
Customer: replied 10 months ago.
Hi Stephen,Thank you for the quick response!approximately $1,000 in expenses on the web business and $700 for my PR/Web Development work.Does Occupation "Consultant" encompass my failed web development company?I am able to make a payment now towards my 2015 taxes but will need to make the remaining balance payment in April. Should I wait until I receive a bill? Or can I make some of the payment now using the 2015 Balance Due form to reduce penalty fees?Thank you again!
Customer: replied 10 months ago.
Correction **Does Occupation "Consultant" encompass my failed web company (not web development company)!
Expert:  Stephen G. replied 10 months ago.
Yes, Consultant covers everything.You can pay whenever you wish; you can use that form or no form.As long as you have your Social Security Number on the check and "2015 income Taxes" on the check, you will be fine.That total of expenses won't create any problems for you.
Expert:  Stephen G. replied 10 months ago.
Please remember to rate my response as that is the only way we receive credit for our work.Thanks very muchSteve G.
Customer: replied 10 months ago.
Hi Stephen,Thank you. I just have one more question before I submit my taxes:1) I am using TurboTax and it is asking how I will pay the federal taxes that are due and it gives me the option to pay by check or credit card before April 18th or to request an installment plan. Based on our exchances above you advise that I do NOT select an installment plan and select "pay by check" but wait until they send me a bill after April 18th to pay since I am unable to do so now? Is that correct?Thank you!
Expert:  Stephen G. replied 10 months ago.
No. not exactly.Pay by check means you are going to pay now.If you can pay by credit card you should if at all possible.If you aren't able to pay by check or credit card then you can request installment plan if you wish, but if not, then you don't indicate anything or indicate by check & just don't send it in.TurboTax just wants to know if they should prepare a payment voucher, that's all that is unless you request an installment plan which will amount to the equivalent of 10% interest & penalty rate.
Customer: replied 10 months ago.
I have about $1500 due that I cannot pay now, since by checking "pay by check" does not indicate anything. Can I select that option and wait for a bill from the IRS or do you advice requesting an installment plan if I am able to pay the full balance next month?
Expert:  Stephen G. replied 10 months ago.
Pay by check means you are going to pay now.
Customer: replied 10 months ago.
I understand but there is no option on TurnoTax that indicates that I will pay after April 18th except installment plan which I don't think is necessary since everything I've read says I will receive a bill. I don't know just for submitting purposes what to choose and/or if I should actually request an installment plan since I don't see an official option to pay late (after April 18th).
Expert:  Stephen G. replied 10 months ago.
Choose pay by check & just send whatever you can whenever you can. It just doesn't matter.
Expert:  Stephen G. replied 9 months ago.
Just checking in......................I see you had a chance to review my response on 4/15/2016.Do you have any follow-up questions?If not, I would appreciate it if you would take a moment and rate my response as that is the only way we receive credit for our share of the payment you already made. Otherwise, without a rating, we are not compensated for our efforts on your behalf.Thanks very much,Steve G.