Can I use that money for income to earn credits or can it only be used for the mortgage interest?
I never even got a w-2 from my previous employer therefore having no earned income!
2007-02-17 02:43:01 · 7 answers · asked by trix 2 in Business & Finance ➔ Taxes ➔ Other - Taxes
Equity loan to live on....that was...ummm...how to be nice....ill advised.
It is not income. Just because you didn't get a W2 does not mean that you don't have income.
Spend less time trying to find loop holes and more time working to pay your debt.
2007-02-17 02:48:41 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Taking out equity from your home is taking a loan, and has no tax consequences. The money isn't taxable income (not earned or unearned income), since you have to pay it back.
If you had a job and didn't get a W-2, you should contact the employer to find out what happened to it. That IS earned income.
2007-02-17 19:08:39 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
You only can deductible the interests from the loan. Home Equity loan is not an income as you mentioned, its a loan from a bank out of your main home's principle. To be eligible to file for Federal and State income taxes, you must submit your W-4 to the I.R.S and paid your SS income along with other applicable taxes; federal withholdings, state withholdings etc...
2007-02-20 02:30:02 · answer #3 · answered by MINH H 3 · 0⤊ 0⤋
You are joking right? No it's not income. But my God. You have nothing to show for the money your about to pay back in double. Big mistake. Huge Mistake. Go get a job and start paying it back. You have nothing to show for it. Get family and friends to help you raise you kids. Get involved in a church. Get to know people. Your not supposed to take out a equity loan to live on. That;s has got to be the biggest investment mistake of money I've ever heard of. I guess it could have been worse. You could've have cashed in those checks your credit card company sends you in the mail and pay it back with a 21% interest. Don't even think about it!!
2007-02-17 10:59:19 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Your tax accountant can answer that question for you, but my guess is you can use the interest for a deduction is all you can use it for. It is not considered income even though you used it for that. You borrowed money against your house as a loan. It doesnt matter what you borrowed it for. So I doubt you can count it as income. If you have worked you need to contact your prior employer to find out why you didn't get your W-2, by law they have to have it to you by Jan 3oth. They can be fined if you report them. If you didn't make a certain amount you wouldn't have to file taxes anyway. I think the amount is under 3300.00.
2007-02-17 10:54:33 · answer #5 · answered by devilgal031948 4 · 0⤊ 1⤋
No, that is not income and has no tax implications aside from the fact that the interest may be deductible if you itemize your deductions.
If your employer failed to send you a W2, ask them for it. If they don't send it to you, file a missing W2 complaint with the IRS. Depending upon the income on that W2, you may have to file and you may be eligible to receive the EITC based on that income.
2007-02-17 15:44:31 · answer #6 · answered by Bostonian In MO 7 · 0⤊ 1⤋
Nope, You in effect took out a loan. The interest on that loan may be tax deductable.
2007-02-17 10:48:39 · answer #7 · answered by WJVV 4 · 0⤊ 0⤋