Adjusted Gross Income Alimony
Question: I’m trying to get my taxes finished, but am having a problem………?
I was divorced in mid 2007. I received $3325.00 in alimony and made $3275.00 profit on Ebay. This is the only income I have to claim. When I get to my adjusted gross income it says $4469.00 as the total. This doesn’t add up. Am I missing something? Did I make a mistake along the way? I know that entering some of the business information is confusing to me. Any help is greatly appreciated!!
Answer: Based on the info you give your AGI should be 6368. Unless your 3275 is your gross profit, not net profit. If you are only figuring out your sales minus your purchases of goods that is gross profit, not net profit. You are taxed on net profit.
Look at your forms and check your Schedule C – that is the mostly likely place there is a mistake. Line 1 will be your total sales (could have entered the 3275 as your line 1 gross receipts/sales instead of the actual total sales?) Line 2 will be any customer returns. Line 4 will be your cost of purchases that you resold – fill out lines 33 – 42 to calculate that number. Other expenses go on lines 8 – 27. Check line 31 – that is the number that carries to your 1040 – your net profit.
Now to to Line 12 on your 1040 and see what’s there – it should be the same number. Next you get an adjustment to income for 1/2 your self employment tax. So that will lower your AGI a little.
Hope that helps. You can email me through my profile if you’re still stuck.
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Divorce Tax Exemptions
Question: Im a divorced guy, and earned about $15,000 in Quebec, Canada last year. What tax exemptions exist for me ?
What are the criterias for reducing income tax ? What is a tax write-off ? Is my estimation that on $ 15,000. of declared income in Canada, I would have to pay around $ 2000 income tax ? I don’t own a home yet, and live mostly in my truck when the weather is warm enough to save on rent and attempt to save toward a cabin.. Is there a way to be creative with one’s taxes ? Besides personal criteria for tax exemption, how much can I donate to charity or to an individual doing charitable work ? Can I write off any percentage of what I would pay in income tax toward my 20 yr old son’s college or univeristy education ? I am almost constantly driving and traveling when I do sales work.. Are there bills or receipts I am supposed to keep during the year that are helpful toward tax exemptions ? My commercial art business is not yet officially registered. To qualiify for tax exemption, is there an advantage to having your business registered or is it ta disadvantage ?
Answer: You can donate up to 75% of your net income. The non-refundable tax credit is 15.25% of the first $200 that you donate and 29% of the rest.
If your 20 year old son attended post-secondary education and received a T2202a for the tuition, HE has to claim it first if he has income to apply it against regardless of who paid for it. If there is any left after he claims his maximum, he can choose either to transfer it to you or to carry it forward until the next year.
You are self-employed. Sorry, I don’t have much experience with small business. It would be difficult to determine which percentage of your vehicle is used primarily for work and which part for personal…
You may need to speak to a tax professional or accountant to see what exactly you would qualify for as you get your business up and running.
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Common Tax Questions During a Divorce
Divorce Tax Deductible
Question: Will someone with way too much money help me out?
I need a newer car, but I can’t afford anything better than what I got (1999 Sephia POS). How about a tax deductible donation to a divorced mother of 4 who was downsized in April and unable to find work so far. I’m really not picky, just fuel efficient and newer than mine.
Answer: so who doesn’t want a benefactor let me know i could use a newer car too cos mine is older than yours. how about making the donation anyway. my guess is it is your mother and she could probably do with some help.
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