Author Topic: any accountants out there that i can ask a question?  (Read 58626 times)

Offline avrumy

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Re: any accountants out there that i can ask a question?
« Reply #15 on: December 29, 2013, 01:13:59 PM »
It sounds like a student loan interest deduction, as in form 1098E.
Looks like he wrote credit. Where do you see or how do you come uo with the idea that its 1098e? (just curious)

Offline Bostener

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Re: any accountants out there that i can ask a question?
« Reply #16 on: December 29, 2013, 01:15:49 PM »
It sounds like a student loan interest deduction, as in form 1098E.

To me it sounds like its the American Opportunity Credit he is dealing with but I am not going guess.

Online churnbabychurn

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Re: any accountants out there that i can ask a question?
« Reply #17 on: December 29, 2013, 01:17:56 PM »
Looks like he wrote credit. Where do you see or how do you come uo with the idea that its 1098e? (just curious)
Irs sent me a letter that i owe about $3000 from a tax return (1040) a few years ago .  They say that I left out a 1099 for about $2000 ( wife work never sent it to us) and education credit wasn't accepted as box 2 was blank,  it only shows what the school billled but not what was paid.  I used turbo tax to file taxes.

Their cheshbon was that I owe tax on the 1099, + owe back education credit,  owe self employment tax, interest, and earned income credit is much less.

They say i could fax a corrected education form (1098 ). Do i need to go to accountant or I should just send the corrected form?
Is there anything else to send them to reduce amount owed?


Offline avrumy

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Re: any accountants out there that i can ask a question?
« Reply #18 on: December 29, 2013, 01:18:52 PM »

All education information comes on a form 1098.

Online churnbabychurn

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Re: any accountants out there that i can ask a question?
« Reply #19 on: December 29, 2013, 01:22:07 PM »
All education information comes on a form 1098.
Ok, Sound like Bostoner is right.

Offline aryeh1

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Re: any accountants out there that i can ask a question?
« Reply #20 on: December 29, 2013, 04:56:11 PM »
Please state what type of 1099 and what type of eduction credit you are talking about.
She worked as a tutor,  it was 1099 misc. Other was 1098-t that they rejected, she went to college for masters and payed about 8k but only amount billed was listed not amount paid so they rejected it.

Online yitzf

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Re: any accountants out there that i can ask a question?
« Reply #21 on: December 29, 2013, 05:23:53 PM »
She worked as a tutor,  it was 1099 misc. Other was 1098-t that they rejected, she went to college for masters and payed about 8k but only amount billed was listed not amount paid so they rejected it.

Q' for the accountants here,
I wonder if her college expenses are fully deductible for AGI as a business expense because she was working in education.
(up to the $ amount of her 1099 as a tutor).

If so, she would avoid any payment because she never owed the IRS anything...

Offline ckmk47

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Re: any accountants out there that i can ask a question?
« Reply #22 on: December 29, 2013, 05:25:45 PM »
There are all sorts of college tax credits.  But many are only for undergrad, so it may not apply here.

Online yitzf

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Re: any accountants out there that i can ask a question?
« Reply #23 on: December 29, 2013, 05:29:00 PM »
There are all sorts of college tax credits.  But many are only for undergrad, so it may not apply here.

What I'm referring to is not an education credit per se.
It most definitely applies to post secondary education, it doesn't even have to be accredited. The only caveat is that you have to have an existing job in that field.

Online churnbabychurn

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Re: any accountants out there that i can ask a question?
« Reply #24 on: December 29, 2013, 07:04:30 PM »
There are all sorts of college tax credits.  But many are only for undergrad, so it may not apply here.
American opportunity is for undergrad but the Lifetime learning credit is also for graduate. up to 2k credit per year.

Here the question was about the tuition and fees deduction for AGI of 4k available for both undergrad and grad. Not the above mentioned credits.
« Last Edit: December 29, 2013, 07:15:07 PM by churnbabychurn »

Offline avrumy

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Re: any accountants out there that i can ask a question?
« Reply #25 on: December 29, 2013, 07:17:29 PM »
Q' for the accountants here,
I wonder if her college expenses are fully deductible for AGI as a business expense because she was working in education.
(up to the $ amount of her 1099 as a tutor).

If so, she would avoid any payment because she never owed the IRS anything...
At this point the person would have to prove to the irs that the expense of going to school was directly related to the income she earned on that 1099. was it? If yes then there MAY be what to talk about but i assume if the irs already flagged this return then it may be difficult and costly (meaning u may have to hire someone who knows what they're talking about) to prove that to the irs.

Online churnbabychurn

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Re: any accountants out there that i can ask a question?
« Reply #26 on: December 29, 2013, 07:19:41 PM »
What I'm referring to is not an education credit per se.
It most definitely applies to post secondary education, it doesn't even have to be accredited. The only caveat is that you have to have an existing job in that field.
To answer this question, it has to meet the following requirements to qualify as a business expense:
Quote
The education is required by your employer or the law to keep your present salary, status, or job. The required education must serve a bona fide business purpose of your employer.

The education maintains or improves skills needed in your present work.

However, even if the education meets one or both of the above tests, it is not qualifying work-related education if it:

Is needed to meet the minimum educational requirements of your present trade or business, or

Is part of a program of study that will qualify you for a new trade or business.

Online churnbabychurn

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Re: any accountants out there that i can ask a question?
« Reply #27 on: December 29, 2013, 07:21:23 PM »

Online yitzf

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Re: any accountants out there that i can ask a question?
« Reply #28 on: December 29, 2013, 07:23:43 PM »
At this point the person would have to prove to the irs that the expense of going to school was directly related to the income she earned on that 1099. was it? If yes then there MAY be what to talk about but i assume if the irs already flagged this return then it may be difficult and costly (meaning u may have to hire someone who knows what they're talking about) to prove that to the irs.

Agreed, but will it be so hard to prove that getting a degree in education is "maintaining or improving existing skills" vis--vis tutoring?

Online churnbabychurn

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Re: any accountants out there that i can ask a question?
« Reply #29 on: December 29, 2013, 07:25:21 PM »
Agreed, but will it be so hard to prove that getting a degree in education is "maintaining or improving existing skills" vis--vis tutoring?
PUTPAC  :)