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February 13th, 2005, 01:05
| #1 |
| Senior Member  Join Date: Jul 2001 Location: Houston, TX
Posts: 1,021
|  For ATP Instructors -A Tax Question
Since we are all "independent contractors" we get a 1099-MISC for our wages. How do you all file taxes? I just did my taxes in TurboTax, and since ATP does not withold any taxes, it looks like I have a nasty tax bill due. Other than paying the IRS nearly $2000, does anyone have any ideas? I don't have any big deductions.
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February 13th, 2005, 15:19
| #2 |
| Junior Member  Join Date: Mar 2002 Location: not apparently in this universe
Posts: 248
  | Re: For ATP Instructors -A Tax Question
I went to H and R Block to have mine done. I had a hefty tax bill too, even though I topped out at under $4000, they wanted me to pay $500 even though i had thousands of dollars in student loan intrest, and "business costs". The tax preparer person deducted books I had bought and even the cost of my medical, since it is a requirement for me to be able to fly. You can deduct travel expenses on your car, maintainance if it is work related. I opted not to file since I didn't make over the $7000 limit. If under that you are not required to file as you are substantially below the poverty line. I think I should technically be living in a cardboard box! I thought it was funny how in the CFI forum they list all the things that differ between an employee and an independant contractor. 95% of that list qualifies ATP instructors as employees (ATP determines: schedule, type of aircraft, when training will occur, etc..). The other 5% that ATP instructors don't get are the perks of being an employee (Taxes deducted, insurance, etc...) Sorry, something that was just on my mind...  |
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February 13th, 2005, 16:22
| #3 |
| Old Skool  Join Date: Oct 2002 Location: lower canada
Posts: 1,649
| Re: For ATP Instructors -A Tax Question
[ QUOTE ] I don't have any big deductions. [/ QUOTE ] Thats your problem right there. better find some reciepts.... |
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February 13th, 2005, 18:29
| #4 |
| Junior Member  Join Date: Mar 2003 Location: Florida
Posts: 140
| Re: For ATP Instructors -A Tax Question
[ QUOTE ] Quote: -------------------------------------------------------------------------------- I don't have any big deductions. -------------------------------------------------------------------------------- Thats your problem right there. better find some reciepts.... [/ QUOTE ] No kidding.... $200/mo living (away from home) gas, dining out (lunch while at work, business dinners), clothes, haircuts, shoes, car repair, the list can go on and on... Go to an accountant, it may cost you $50, but it'll save you much more!!! |
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February 14th, 2005, 19:19
| #5 |
| Old Skool  Join Date: Sep 2001 Location: Inside your OODA loop
Posts: 7,016
| Re: For ATP Instructors -A Tax Question
Consult a tax professional for sure. You may not owe any income taxes, but you might still be on the hook for Social Security taxes--which will be twice what you'd pay as an employee because, as an independent contractor, you have to pay what would be the employer's half as well. In other words: 7.65% x 2 = 15.3%!
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February 16th, 2005, 00:32
| #6 |
| Senior Member Join Date: Jul 2001 Location: Houston, TX
Posts: 1,021
| Re: For ATP Instructors -A Tax Question
[ QUOTE ] [ QUOTE ] Quote: -------------------------------------------------------------------------------- I don't have any big deductions. -------------------------------------------------------------------------------- Thats your problem right there. better find some reciepts.... [/ QUOTE ] No kidding.... $200/mo living (away from home) gas, dining out (lunch while at work, business dinners), clothes, haircuts, shoes, car repair, the list can go on and on... Go to an accountant, it may cost you $50, but it'll save you much more!!! [/ QUOTE ] The rub is that since I was so un-affluent I didn't buy much, but I did keep receipts for everything I did buy like charts, medical, supplies, etc. and my moving expenses. Even with all the deductions, it didn't make a huge dent in my taxes. |
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February 16th, 2005, 09:47
| #7 |
| Newbie  Join Date: Dec 2004 Location: NOLA
Posts: 29
| Re: For ATP Instructors -A Tax Question
My 2 cents, Buy some small notebooks and log in expenditures, especially dry cleaning (hey, CFI's have to look presentable to students, right!), professional expenses, and meals (although the feds won't give you business meals unless you are 50 miles from home). The IRS will let you log up to 500.00 in each catagory of these small expenditures without receipts. Also pay attention to your cell phone bill. Even though the feds won't let you deduct a cell phone, there is a blanket deduction for "Pay Phones." Figure out how much of your cell time is for "Business." Just check with your tax professional. |
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