Feeling dizzy at the amount I supposedly "owe" the federal government and NY for being self employed... Ay dis mios!!!  

 
This was my first year doing this so I of-course wanted to be an upstanding citizen. And was extremely concerned about the IRS.I'm not going to lie though. I now see why girls choose not to do their taxes...

*Heavy sighs*  


-- Modified on 4/13/2015 4:36:04 AM

y ATF used to ask me every April about filing her income taxes.  She worked a day job as a waitress & always seemed broke.  Our conversation would usually go like this:

 ATF:  Do you think I should file income taxes this year?  

 Z:  Babe, for me to advise you at all, you need to tell me how much you're making & where it's going.  

 ATF:  I only do this to pay my bills.  

 Z:  What about your bank account, are you saving any money.  

 ATF: there's nothing in my bank account.  I'm broke. At the diner, I make less than min wage + tips.  

 Z: You might file, you may get a refund.  Why are you broke, you're a beautiful provider.  Where's all the money from your other clients.  Where's that going?    

ATF: I don't like doing this, I only do it to pay my bills.  

 We would get stuck in that loop for a while.  I don't think she ever filed.   --

It shouldn't be that overwhelming, and 4/15 should be just another day.

As for those girls who think they're being clever by not filing, well...they're rolling the dice on a dangerous game. 3 years of not filing returns and you're a willful non-filer, which is a felony. Get caught and you're at the mercy of the IRS as to whether or not they charge you. It's not a fun position to be in.

Filed her taxes but she was keeping track of how much so owed so I guess she was waiting for the day to.come when she would have to face the consequences. I wasn't Around to find out what happened.

...all receipts, and make quarterly payments.  My two checks were in the mail last week.  Sad; very sad, but I know it is the right thing to do.

   Also, I have to be able to justify my lifestyle, and investments.

Hugs and Kisses,
Kelly

I doubt it.


Some day she may be in for a world of hurt.

In NYS/NYC if you make under a certain amount you barely owe taxes anyways. It's always best to keep it on the up and up with the IRS. I try not to pass money through my bank account wherever possible. As well, I believe you can receive up to $10,000 in gifts from family members without paying taxes on it, so if anyone ever starts asking questions, that's where my savings account comes from..... don't quote me on this, haha.

That being said, I'm a HUGE fan of taking this seriously and always filing my taxes

Gifts of any size are non-taxable to the receiver, but the giver must pay a tax on them over $10,000/year.  It seems counterintuitive, but it is done in order to avoid letting people escape the inheritance tax by donating all the good just before they die.

The rub is that it is not a gift if exchanged for something of value, be that a legal or illegal exchange.

Don't count on using this loophole if you ever get caught.

still not a lawyer or CPA

You can't just say Uncle Abdul gave you the $6,000 in your savings account. The IRS expects gift givers to keep a running talley of their gifts. Not a CPA but it impacts the amount of an your estate that is free of federal taxation when you pass away. If you said that, they would pull his return, didn't see any gift info and you have a problem.

The amount changes most every year. For 2015 it is $14,000.

A few years ago my sister unexpectedly lost her husband. IIRC the amount was $12,000. To help her  out I gave her and each of her three children $12K in November. He had died in October. I then repeated the gifts in January. That $80K really helped her.  

All eight checks had a big GIFT, in the memo line.

Your post has a few errors.

First, the gift tax floor is currently $14,000, not $10,000. It's been $14,000 for about the past 3 years, and is pegged to inflation. At current rates it should bump to $15,000 in a year or two.

Second, there is no tax on gifts over $14,000 unless the giftor has exceeded their unified credit. HOWEVER, you must file a gift tax return for all gifts over $14K, which is then added back to your estate at death. However, given the current unified credit few people are likely to have an estate tax liability based simply on gifting (or anything else, for that matter).  

Third, while the 'not taxed to the receiver' rule works for Federal purposes, some states tax gifts.  

As you mentioned, in order to be a gift, there must be evidence of donative intent (putting "gift" on the check, as another suggested, is one way, but not the only way). A gift, as you correctly pointed out, is not an exchange - it's one-way. I send you money, with no strings, and nothing expected in return.

or you can work as an independent contractor and itemize .. being legit doesn't mean big brother needs to give it to you up the rear (sorry that's crass) in my funny mood  portuguese

 
yet, please take into account beautiful lady,  that you do want to pay govt something for one day if ss is around and also if you get hurt etc that stuff we all want like a house or condo or car or tuition etc or buy a business is needing to show a paper trail..

all cash raises red flags  plus you want to be able to say you are a tax paying citizen.. ))

 
inevitably taxes and death

I can ramble on this subject.. You sound verty intelligent keep focused and many good people will help you!!!!!
xoxo Lorena De Leo

Related, and probably silly, question. What proportion of men who spend $600 or more on a single provider during the year send that provider a 1099 Foem.

Maybe I should start getting hookers to fill out a W-9 if I plan on seeing them more than once? lol