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you are hijacking a handicapped guy's thread for advise?
You can also call 1800-829-1040 and talk to a rep there. You might have a long hold time but the hold will only get worse from now to 4/15.
You will need to double check but most likely you just need to reduce your wages
She gets back the % she lost. If you paid her $10,000 and the tax rate was 10% (doing simple math for illustration) she paid $1000 in taxes....she'd get that $1000 back.
Virginia and Maryland have reciprocal tax agreements so I believe he can get his taxes refunded from MD but then has to pay them in VA.
And can do that without a VA employer tax ID #? I've never heard of anything like this and it sounds sketchy to me. Why wouldn't a company in MD just get a VA tax ID? There have to be other employees there that live in VA.
Because from the company's perspective, it's costly and a PITA. This happens all the time though. I worked (from home) in Ohio and my company didn't have a tax ID for Ohio...it was NC based. I had to fill out NC and Ohio returns so I could get my money back from NC and pay it to Ohio.
Cool, I figured it would be that simple. Just didn't know if lack of VA tax ID would be an issue.
That's something you'd have to work out with the state. For me, my tax ID was my SSN in Ohio. After the first year I did this, I called HR and they actually set up an ID in Ohio so I didn't have to do that again. It was annoying to work through, but not all that complicated.
The home office deduction has some very specific guidelines. What most people fail to realize is that the home office must be used EXCLUSIVELY for an office. Not be a den/office or a workout room/office. And in that case, you use the sq footage of the office in relation to the sq footage of the home and then use that as a percentage to apply to all of the relevant home expenses. It can be a nice deduction for those that qualify, but you have to be careful and make sure you apply it correctly.
I don't believe that is an issue, from anything I've done, but I'm no longer a practicing CPA. I think he may be talking about the home being considered an investment property instead of qualifying for the home exemption and thus making gains on the sale of the home taxable. I'm not totally sure.
That's understandable. Somebody in the DMV not bothering to get the tax IDs of all three and making their employees deal with it seems lame to me. I'm going to tell her to have HR turn off her state deductions and to just make sure to set aside roughly the amount she will owe come next tax season.
Only thing I can think of is if you take depreciation and the lower cost basis pushes your profits over the 250k/500k limit?
No. The Tax Court has ruled that you are not entitled to a work-related deduction if you could have gotten reimbursed for it from your employer.
