Writing off 60k from a 200k year?
I was extremely blessed last year, with a $70k W2 and a $120k 1099K last year.
I have about 60k to write off, this is the first time have ever done this good, and wanted to get a good idea from you experts, of how much i might owe after i write off 60k
here are more details.
MARRIED AND FILIUNG JOINLY
WIFE MAKES 10K A YEAR (SO total with her and my income about $200k
Thank you all!
- Coffee DrinkerLv 71 month ago
We can't even begin to help you because you don't tell us what you mean by "Write offs"
If you have personal deductions such as mortgage interest, property taxes, state taxes, or charitable donations then the $60k write-off will be taken instead of the $24k standard deduction that you could have taken anyway. So you've really only increased your deduction by $46k. There may also be limitations you're not aware of such as the cap on State & Local Tax (SALT) deductions.
If the write offs are against the $120k of 1099 income then they are computed differently and will have a different impact on your overall tax situation.
Your best bet is likely to take your paperwork to a qualified tax pro this year. Your return is not highly complex, but it appears that your tax knowledge is not sufficient to sort this out based on just a few lines of advice from Yahoo Answers.
You should be able to get your taxes done for around $300 or less. Also tax prep offices and accountants have the most time in March. There's a surge of people who want their refunds as soon as possible, so February is busy, and there's a surge of people who procrastinate so April is busy. So mid-March is often the best time to get the best price on tax services.
- cynic47Lv 61 month ago
Your situation is one which a moderately tax-savvy individual could handle without a professional. The problem is that you are NOT a moderately tax-savvy individual, or you would already know how to answer your own question. Conclusion: You are undoubtedly good at your job, but do not have enough time/energy to focus on taxes as well -- so you need to hire a professional to handle that part of your life. You would hire a lawyer if you were being sued, wouldn't you?
- A HunchLv 71 month ago
Obviously, you don't need to hire a professional.
If you don't own a house, donate significant amounts of money, have $0 in investments, didn't contribute to a retirement plan or HSA, have no pretax deductions,etc etc.
You will owe:
Self employment tax = $9180
FICA tax = $6120
Federal tax = approximately $22000
State tax = approximately $9000
- JohnLv 61 month ago
The answer which said to hire a professional is correct. You have omitted a good deal of information needed to even approach answering your question. That indicates you are in way over your head on this return. Don't take chances, get it done correctly.
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- Anonymous1 month ago
Hire a professional. SERIOUSLY.