The internet is full of get rich quick schemes. I know
I want to get rich. I am sure that all of you out there in internet land are no
exception. I doubt you will ever get rich doing what I tell you, but I can tell
you one surefire way to find those hard earned dollars in a place you probably
didn't think to look. The biggest question is whether or not this is
repeatable.
Well in this case, this isn't much of a get rich quick scheme. I don't have the secrets to it all. But I do have a cautionary tale for anyone that earns any of their income online.
Last summer I did an internship as a contractor doing research at a local university. I was paid for what I did, but come tax time this year, I never received a W-2 from the University. I was informed that this would be the case when I took the job because of how I was paid. I started working on my taxes the other day with a few disappointments. My stepson is turned 17 this past year, which means that I don't get the normal Earned Income Credit that I had expected in years past. I didn't get the amount at all. I have two other kids under 17, but because I have one that is 17, I lose the entire credit amount. I didn't like it. I still don't. It doesn't make ANY sense, but I guess that is how tax works in the U.S.
Well in this case, this isn't much of a get rich quick scheme. I don't have the secrets to it all. But I do have a cautionary tale for anyone that earns any of their income online.
Last summer I did an internship as a contractor doing research at a local university. I was paid for what I did, but come tax time this year, I never received a W-2 from the University. I was informed that this would be the case when I took the job because of how I was paid. I started working on my taxes the other day with a few disappointments. My stepson is turned 17 this past year, which means that I don't get the normal Earned Income Credit that I had expected in years past. I didn't get the amount at all. I have two other kids under 17, but because I have one that is 17, I lose the entire credit amount. I didn't like it. I still don't. It doesn't make ANY sense, but I guess that is how tax works in the U.S.
Turbo Tax estimated my taxes at 1/3 what I expected. Disgusted, I set them aside for a few days. Finally, I came back to them yesterday. After reviewing my information, I found the real problem. I noticed that my income from the research position wasn't listed. I was sure I had reported it. Turbo Tax had lumped the amount in with some scholarships because of the way that I had answered the questions. How to remedy that AND report the income appropriately? After all I don't want to get audited for tax evasion or anything. I went in and added myself as a personal business owner doing research as a contractor. I reported the income and voila my refund found an extra $1500!
Moral of the story, if you do your own taxes, Turbo Tax is
SUPER EASY to use. Also, double check their amount. Then triple check. And then
find someone else to look at them just in case. You might find a few extra
dollars. Turbo Tax is a computer program after all.
If you are from "the States," how did you fare on your taxes this year? Have you run into any issues with Turbo Tax?
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