Jill Schlesinger of CBS MoneyWatch, who writes the blog Jill on Money, joined Shine members on Twitter recently to talk about taxes. Schlesinger, a Certified Financial Planner ™, also hosts a nationally syndicated call-in/talk radio show, "Jill on Money," that helps listeners take control of their financial lives.
Whether you have yet to pull together all of your receipts and financial statements from the past year to do your taxes yourself, or you have neatly delivered all of your financial documents to an accountant, you probably have some last-minute questions to ask. Taxes are due April 18! Here's what we learned during our Shine Tax Twitter Chat:
Jill Schlesinger: Jill on Money/CBSMoneyWatch.comQ: What if you work two jobs, but only received one W-2 form?
A: Ask. If there isn't one, include the income on your taxes anyway.
Q: Do teenagers who earn very little working a temporary summer job still need to file taxes?
A: That's tricky. In some cases, yes. In most cases, the simple 1040EZ form is all they need.
Q: Do you still have to file your taxes jointly if you divorced that year?
A: Usually, you do.
Q: There are so many deductions possible! What are the ones I should really look out for?
A: Here are 16 don't miss-deductions you should know about.
Q: My second job doesn't withhold taxes. Should I increase withholding on my primary job, or just pay the extra when I file?
A: I prefer to increase withholding.
Q: I gave money to charity this year. Do I need to file any special forms?
A: Don't forget to file Form 8283 for donations over $500! You don't need a form if you donate money or goods worth less than $500.
Q: How can you find out what to write off for taxes as business-related expenses?
A: My favorite, non-reimbursed deductions since switching careers from investment advice to TV are clothes, hair cuts and make-up! If I buy an outfit for TV, I keep the receipts and make sure to prove that I wore it on air. (Here's more information about how to understand non-reimbursed business expenses.)
Q: I'm considering a job for which I'd have to work remotely. Will I be able to deduct my internet bills?
A: Only the portion that's attributable to working from home.
Q: What happens if you submitted your taxes and realize you forgot to include a form?
A: File an amendment and resubmit your taxes.
Q: Is health insurance for the self-employed deductible?
A:Yes, but can't exceed the net profit of your business.
Q: Any tips for freelancers?
A: Freelancers, beware: The IRS loves to come after you for business expenses. The key is to have documentation!
Q: I've heard that home offices are another red flag for the IRS. Is this true?
A: Your home office must be used "exclusively and regularly" as a principle place of business, and must be a separate space within your home. Working from your home office on Fridays doesn't cut it. A home office can be an audit red flag, but if you have the documents to back it up, then claim it!
Q: Is it better to do your taxes yourself, or hire a tax preparer?
A: Doing it yourself saves money, but pros can often find deductions and credits you may have overlooked! Either way is fine (I'm too lazy to do it myself). Doing your own taxes shouldn't trigger an audit, but be careful with things like first-time home buyer's credit and business losses.
Q: What's a good way to get organized for next year's taxes?
A: Try an accordion file, where each section is a different part of your return. Use last year's return as guide! (If you need a copy of a previous year's tax return, you can order a transcript from the IRS.)
Don't forget, thanks to a holiday in Washington, D.C., you have until April 18, 2011 to file your 2010 taxes. Still crunching those numbers? There's tons of tax information right here on Shine:
- Can't pay your taxes? File anyway
- 101 tax credits for college students
- Child tax credit: What parents really need to know
- What tax records should you keep (and how long you should keep them)
- How to cope it you're audited
- Which tax method should you use?
- 8 commonly overlooked tax breaks
- 7 things your tax accountant won't tell you
- Audit red flags: 8 things not to do
- Start planning for a happier tax day in 2012
Also on Shine:
- Wackiest tax deductions
- 101 tax credits for college students
- 8 corporations that pay less in taxes than you do (really)
- To defer or not to defer: The ultimate pre-retirement questions
- How to cope it you're audited
