Donations?

[SueBaby]

You said she works for insurance but because she has 1099's instead of W-2's I assume she is not paid as an employee. Does her contracting firm pay her insurance on her behalf? Is that amount then included in her 1099?

I would definitely put the uniforms and any other work expenses on schedule C rather than schedule A as you state she is self employed not an employee and this will reduce the SE tax.

1099 as a nurse and no Ins. I guess I have tried several ways and I went blank. Yes I have put all on Sch C and NO Sch A. I have worked too long and hard on hers til I did forget to say HOH. So maybe next year with Medicare or something else she will have a Sch A this year NO. Thank you all for you help and insight on my tired mind on this matter once again.

[JohnH]

Skinning cats & contributions

If you're skinning cats, would it be a good idea to make a donation to PETA?
(More-or-less analogous to a carbon offset).

[Jesse]

You said she works for insurance but because she has 1099's instead of W-2's I assume she is not paid as an employee. Does her contracting firm pay her insurance on her behalf? Is that amount then included in her 1099?

I would definitely put the uniforms and any other work expenses on schedule C rather than schedule A as you state she is self employed not an employee and this will reduce the SE tax.

[Peachie]

You left out some info Sue.

I have tried "skinning this cat" and "squeezing blood out of this turnip", but she is HOH with her granddaughter living with her and it does not reach the limit for sch A .I tried to help as much as I can but when it don't work it just don't work!

I think most of us thought she was single. I don't recall reading that she was head of household. My comment was based on the taxpayer being single. We have to have all of the information in order to make valued suggestions. HOH changes everything completely. I was looking at sales tax putting her over the top to itemize.

Peachie.

[SueBaby]

At the income level you cite, you are definitely in the "itemizing" range assuming some state tax and sales tax issues are in play.

I have many clients, myself included!, that alternate up/down years for itemized deductions. Her church will understand if she gives "nothing" one year but $5k the first week in Jan and throughout the year the other $5k. You can do the same thing for property tax bills in most places. And since you said everything is from a Form 1099-MISC, that implies estimated (state) taxes which also can be manipulated to your betterment.

As the old saying goes, "there is more than one way to skin a cat!"

FE

I have tried "skinning this cat" and "squeezing blood out of this turnip", but she is HOH with her granddaughter living with her and it does not reach the limit for sch A . I have even put her uniforms and shoes and telephone on sch A, she has nothing else. Her state tax was only $93. So there is nothing else I can do but not have a Sch A and just put everything on the Sch C for her until she get Medicare or something else next year.
Her tithes usually goes up and hopefully she will be in good shape next year. No medical or Ins either; no house payments, no property taxes, just nothing but tithes.

I tried to help as much as I can but when it don't work it just don't work!

[newbie]

In addition, If all else fails, I would consider itemizing her for state purposes. She may lose a little on the federal and gain much more on the state.

Peachie. Her tithes is lots more than her income. Only 30,510. She is 64 and only works because of Ins. ---which is not enough for nothing. Nothing to itemize--just her church. Her uniforms and everything else goes on Sch C because of a 1099.

Like I say her tithes goes up and income goes down every year. Thank goodness she is a sweetheart . She has no one to spend money on so it goes to the church.

Why would you not consider itemizing for every client?

Not familiar with your state, but why if she itemized for the state would she lose anything on the federal?

As others have said, it seems with $5,000 in charity and she is under age 65 she should be able to itemize for Federal as well?

[FEDUKE404]

Plenty of options

At the income level you cite, you are definitely in the "itemizing" range assuming some state tax and sales tax issues are in play.

I have many clients, myself included!, that alternate up/down years for itemized deductions. Her church will understand if she gives "nothing" one year but $5k the first week in Jan and throughout the year the other $5k. You can do the same thing for property tax bills in most places. And since you said everything is from a Form 1099-MISC, that implies estimated (state) taxes which also can be manipulated to your betterment.

As the old saying goes, "there is more than one way to skin a cat!"

FE

[S T]

Do the schedule A

Act in your client's best interests, and complete the Federal Schedule A, looking at Medical, Property Taxes, Sales Tax vs state tax deduction, and sales tax deduction, DMV fees VLF fee paid, and mortgage interest, if any, AND her charitable contributions, and then maybe at misc deductions subject to 2%, t/p based on info you have provided only has to exceed approx $600 on the misc 2%.

You have to complete the Federal form in order for it to carry to the Calif fornia form and take advantage of itemized over standard deductions.

It might not work for Federal, but possibly work for California and save some taxes

I frequently complete the form from year to year just to be sure, it takes 5 minutes to accumulate the information.

Sandy

[Gary]

Huh?

If she makes $30000, she must be paying state income tax. It sure seems to me that she could itemize.

[SueBaby]

Maybe she doesn't pay any CA income tax.
Her Sales Tax deduction would be at least $650.

That puts her into itemizing territory (or close depending on how old she is).

In addition, If all else fails, I would consider itemizing her for state purposes. She may lose a little on the federal and gain much more on the state.

Peachie.[/QUOTE]Her tithes is lots more than her income. Only 30,510. She is 64 and only works because of Ins. ---which is not enough for nothing. Nothing to itemize--just her church. Her uniforms and everything else goes on Sch C because of a 1099.

Like I say her tithes goes up and income goes down every year. Thank goodness she is a sweetheart . She has no one to spend money on so it goes to the church.

[Peachie]

Good point Don.

Maybe she doesn't pay any CA income tax.
Her Sales Tax deduction would be at least $650.

That puts her into itemizing territory (or close depending on how old she is).[/QUOTE]

In addition, If all else fails, I would consider itemizing her for state purposes. She may lose a little on the federal and gain much more on the state.

Peachie.

[DonPriebe]

Put it all together and you get ...

From all the info so far ...

She gave $5,000 to her church.
It was called a "tithe"
So her income must be about $50K

She pays only $426 in RE taxes because of Prop 13.
So she is in California.
California has an income tax. Where is that in her Schedule A calculation?

Maybe she doesn't pay any CA income tax.
Her Sales Tax deduction would be at least $650.

That puts her into itemizing territory (or close depending on how old she is).

[joanmcq]

I don't feel sorry for my couple. They are just sweethearts, and you can tell they've been putting their taxes together that way for years. The fact that the sheet is typewritten gets to me too (who has a typewriter anymore?).

Of course the fact that their RE taxes are $426.....good ole proposition 13.

[travis bickle]

and there is also

So if she is single, you are really close to reaching the Standard Deduction. What about other deductions for the client, such as Medical, Property Tax, Vehicle License Fees, complete the Schedule A as Joan says, and see what happens.

Sandy

the possibility of her doubling up every other year.

some people ALWAYS want to give to church right away, without holding back or waiting -- fine, absolutely fine.

but even if she only doubled up her other schedule a items:
property tax paid on 01/03/XX and 12/30/XX;
good will items given on 01/03/XX and 12/30/XX.

that way, every other year she gets the "bigger" standard deduction and in the alternating "every-other-years" [did that come out right?] she gets a bigger itemized deduction.

now, if she would agree to pay her church tithes in the same manner [01/03/XX and 12/30/XX] she should definitely have no problem.

as long as she is coming to you, advise her.
think not only of being nice to her, but of possible referrals she may make because you "are so clever"

[S T]

Schedule A

So if she is single, you are really close to reaching the Standard Deduction. What about other deductions for the client, such as Medical, Property Tax, Vehicle License Fees, complete the Schedule A as Joan says, and see what happens.

Sandy