Okay so my fiance was a contracter for this company and was paid with a 1040 not a w-2. So we knew he was going to pwe taxes. Now we are having a real struggle with our bills. This year will be the 3rd year so he HAS TO PAY THIS YEAR, we are expecting him to owe around 3,ooo dollars. What is the best thing for him to do when he files this year. Not to mention that we are going to have to pay the guy to do his taxes. What to do. He has never filed before so this would be his first year. What can we claim or do.
2007-11-08 05:52:19 · 9 answers · asked by MS.veronica 3 in Business & Finance ➔ Taxes ➔ Other - Taxes
I have filed and I am good to go,
and this is what has kept me from marrying him, because I do not want to inherit whis issue.
He doesn't have any reciepts what so ever to claim, no dependents just himself.
2007-11-08 06:11:15 · update #1
My husband was in the same boat when I met him. Before I even thought about marrying him I felt it was something that needed to be taken care of cuz once you marry him its also YOUR problem. The IRS will work out a payment plan that will meet your budget. If your honest with them then they will work with him.Just have him file, he will to pay a penalty but its better than dealing with the IRS. Have him go to an accountant. My husband ended up getting money back for one year and owing on the other so it was a wash. Good luck!
2007-11-08 05:59:45 · answer #1 · answered by boohoo1964 3 · 0⤊ 0⤋
He wasn't paid with a 1040 - that's the form he needs to use to file his tax return on.
If he got a 1099, the IRS got a copy too and will be contacting him at some point to tell him what they think he owes. That usually takes a couple years for them to get to.
If he has someone do his taxes, and gets a 1099, he should take the 1099 to the tax preparer along with receipts from any items he bought for the job. He'll owe both income tax and self-employment tax (for social security and medicare).
If he has the paperwork from the earlier years, he should take that to the tax preparer also. If he doesn't, he should ask the company to give him copies for the other years.
2007-11-08 08:28:47 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
1. Get all 3 years filed.
2. Meanwhile, gather his financial reacords for both income and expenses for at least the last 3 months. The IRS is going to want to see them when he sets up a payment plan.
He may not be able to do anything other than claim himself and the standard deduction. Many independent contractors do not have any expenses (or if they do, they forgot to keep receipts so they can't deduct them).
I have no idea what you mean by "this year will be the 3rd year so he has to pay this year." If he's had a filing requirement, he's to file every year.
2007-11-08 06:03:47 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Even if you don't get a W-2, he should always file for taxes every year. Bring the forms to your local accountant and ask what he should do for the past two years of overdue taxes. The accountant can help you file for installments, but of course, you'll end up paying more because of interests. If your fiance has any receipts for food, gas, hotel, anything that's related to work, he can bring that in. Since you guys are not legally married, it has nothing to do with you.
2007-11-08 06:04:05 · answer #4 · answered by Mrs Apple 6 · 0⤊ 0⤋
Technically speaking, you don't have to do anything. It was your boyfriend, not you, who failed to file. Unless, of course, you didn't file, either, expecting him to do it for you. If so, then it is your problem, too, but take this lesson with you...never depend upon someone else to take care of legal matters that could get you in trouble. NOW.....you say you are hiring someone to do the taxes, including the back three years? That person is supposed to be able to tell you what to do next, after you file and do not send the check with the tax form. You will be able to work out a payment plan with the IRS. Hereafter, don't skip paying your income tax. There is nothing worse than having the IRS breathing down your neck. Please believe me. What can you claim? Again, you are hiring someone to do your taxes....they will know what is a legal deduction. Basically, you can deduct for dependents, if you have any; you can deduct interest paid on a home mortgage, donations to church and charity, uniforms if they are required for your job, licenses or certifications required for your job (like CDL for truck drivers and nursing license for nurses), home office square footage if you run a business out of your home.....well, you get the picture. Like I said, the accountant can help you with all that.
2007-11-08 06:07:33 · answer #5 · answered by claudiacake 7 · 0⤊ 0⤋
Go to someone reputable who can help you do prior year returns. Believe me you won't be the first person they have seen with this problem. They can give you information about the IRS's payment program. Make sure he brings in every receipt that he can find that concerns his business. The more legitimate expenses the lower the tax liability. The most important thing is get this done and move on from here. Good Luck.
2007-11-08 06:00:23 · answer #6 · answered by ? 5 · 0⤊ 0⤋
He needs to bite the bullet and file. Make sure that you have reciepts for any deductions that you can take like for tools, mileage, professional memberships etc. The IRS will work out a payment plan for you if you are honest with them. You may be surprised and he may not owe as much as you think.
2007-11-08 06:02:18 · answer #7 · answered by Diane M 7 · 0⤊ 0⤋
IRS Taxpayer Assistance Division
1-800-829-1040
Look in your local phone book under U.S. Government and see where the nearest office is located to you. These folks will not only show you what forms you need but they will figure out your taxes and file them for you for FREE!!!
Bring some ID and Social Security card along with all paperwork.
2007-11-08 06:02:52 · answer #8 · answered by Anonymous · 1⤊ 0⤋
i was paid on a 1099 about $24000 during the summer. i had to pay self-emp tax of 16%. State tax, and fed tax, and a penatly. total $4500
2007-11-08 08:38:29 · answer #9 · answered by Ralph N 5 · 0⤊ 0⤋