Originally Posted by
ToddW
Couple things.
1. I am not a CPA and don't offer legal advice just my opinion.
2. Being self employed or running a business or both... you should pay taxes during the year at your set schedule depending on how much you make. If you end up oweing more than 1,000 at the end of the year you will have to pay a fee/penalty on anything abve the 1k you owe.
3. If your work takes out more than you need ALREADY and you are getting money back you will get MORE back if you write-off things when doing your taxes because you are LOWERING your taxable income. So you are not getting free money you are just getting money you paid during the year that is not needed beacuse you've changed your total taxable amount.
So if you were taxed on 50,000 and owed 5,000 and had already paid 8,000 you were getting back 3,000. Well now if you wrote-off another $5,000 because you work from home for your company (were not changing your total income) you are lowering your taxable income by 5k to now 45,000. So now you are taxed on 45k and lets say you are in 25% bracket so 25% of 5k = 1250 so now you are getting back $4250. (The 5,000 and 8,000 were just round #s to make it easy the 1250 is 25% of 5,000). If you hadn't over paid you wouldn't be getting any more money back.. in fact if you were the opposite and you OWED money and wrote-off more you would simply owe less. You will never "get free money" from the gov. from taxes. YOu either OWE them, owe nothing, OR get YOUR MONEY back.
It's not that easy because you said you MADE extra money. So now you have to take the 50,000 you made at work add-on to it what you made on the side and then do your write-offs.
This is just the SIMPLIEID version of it. Some things have higher/lower decutions and some things are not deducted fully, etc, etc. There are A LOT of different ways to do deductions too.
I highly suggest an accountant or tax person who knows what they are doing and not someone from H&R block. You most likely will get LOTS more money back and deduct things you didn't know you could deduct.
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