Piggy wrote:
- quote -

You can't (must have been some other post you were responding to).
There is so much information missing from your question, such as filing
status, whether or not you can be claimed as a dependent, whether or not
you have any other income, and so on, that no one can really give you a
definitive answer here. Since you were self-employed, you really should
spend at least a little money getting professional help with your
business taxes, if nothing else.

Or, post to a more appropriate group, such as misc.taxes or
misc.taxes.moderated.

I'm really wondering how anyone could know that you had "some IRA to
convert to Roth"...

-Mark Bole

bo peep wrote:

- quote -

Almost there, STD deduction is indeed $5150, plus one personal exemption
of $3300 totals $8450 before the zero bracket is passed and the 10%
kicks in. FWIW, next year's numbers are $5350, and $3400, total, $8750.
As I've posted, http://www.fairmark.com/refrence/2006reference.htm is a
great reference. (Note, I have no vested interest in that sight, other
than it has the answer to many frequent questions)
OP can covert some IRA to Roth, $1240 worth, and still pay no taxes.
JOE

Piggy wrote:
- quote -

Well, put it in perspective - you are looking at about $7,210 in total
income. Your standard deduction for 2006 will be about $5,150, leaving
your with about $2,060 of taxable income. You would be in the 10%
bracket, thus owing about $206 in Federal income tax. If you start
having $70 a month withheld now, you would be around the breakeven
point by the end of the year. You might have to pay some state tax too.

John Cowart

How can you itemize against unemployment compensation? Would that mean
expenses incurred while looking for work> ?!


Mark Bole wrote:
- quote -

Piggy wrote:
- quote -

No, you cannot avoid federal income taxes on your state unemployment
compensation (but hopefully your own state won't tax it). You should
have had withholding done, but it's not too late to increase other
withholding for this year to make up for it.

As to the other part of your question, can you somehow "generate" a
business loss to offset your other income? If you have received $700
self-employment gross income, aren't receiving any more, and are going
to start a full-time job, you need to decide whether or not you have an
on-going profit motive for your business. Regardless, if you have
legitimate business expenses this year related to producing the $700
income, then yes you should deduct them on Sched C. If your net
business income is less than $400, at least you won't owe
self-employment tax on it. If have ordinary and necessary business
expenses of $3770 + $700 = $4470 then this business loss would "cancel"
your unemployment income (but look how much cash outlay you will have
made to do so).

I'm guessing you're much better off having $3770 and paying tax on it
than you are spending $4470.


-Mark Bole

Piggy wrote:
- quote -

Save your reciepts, itemize against the 3770$. Take rent, mileage, job
hunting cost, food and guess what nullify that tax bill.

"Piggy" <pigglywiggly711[at]yahoo.com> wrote in message
news:1158696741.943308.23680[at]m7g2000cwm.googlegroups.com...
- quote -

You can *not* both avoid taxes and have the money too. The only
way to not be taxed is to spend the money on legitimate expenses.

The minute you leave something left over to pay yourself, is the
minute you owe the tax:

- quote -

If you don't have any business entity setup (Corp, LLC, etc.) then
you're operating as a "sole proprietorship" and there is no
you -vs- the business -- they are one in the same.

As long as you spend all the money on legitimate, deductible
expenses, then you can avoid the tax. If there's anything left
over as profit, it will be taxable.

Start spending if you want to avoid the taxes.

i have a question about my next year taxes:

i was unemployed from jan-july 2006 and received $3770 total - no
f.i.t. was withheld. i have received about $700 in self employment
income this year so far and am not currently receiving any income. i am
hoping to start a new job that will be earning me $1280/month for the
rest of the year (that's before taxes).

here is my question:

is there any way for me to avoid paying taxes on the $3770? see i have
my own business, but i have been choosing to forego paying myself
because the business is very young and i would rather put the income i
do have into development. my thought is that i could pay myself from my
business, then pay my business expenses from that check and then report
an overall loss on my tax return . . . and therefore avoid the tax on
my unemployment???

HELP !