Help - very unfamiliar with tax rules, need some guidance please?

Question

ok i need help, thanks for reading this.
i am a legal alien, got married several years ago (american husband). i started working as a teacher part time and we were filing taxes together as a couple. slowly, i started an online business for fun, which slowly took off, so i found myself teaching + running my online home-based business. So at this time, we were filing taxes as a couple +reporting my extra income from my online business. My husband was handling all this with his accountant. i never really tried to get more involved especially that i know almost nothing about tax rules in the US.
that was until 2008.
during 2009 & 2010, we moved to another state so i had to quit teaching, but i continued and actually developed my online business. alas, we separated late in 2009 (not legally, just physically).
i continued my business which was lucrative, until this very moment. But i neglected the tax part - i must say that the very difficult circumstances and the changes that came with it, didn't help. Anyway, now i need to file my taxes for 2009 +2010. My husband insists on having me file them alone, not as a couple, because we are separated, even though not legally. So here are my questions:
- i have very few printed receipts to show expenses for my business. i have some online invoices from suppliers., so very limited proof of my expenses. what do i do about that??
- i ran my business under my name, not a company name. is this a problem? is it more costly?
- what material do i need to provide a tax specialist, to file my taxes?
- who is the most affordable specialist i can contact to handle this?
- am i exposed to any penalties?

thanks a lot for your help in advance.

Answer 1

Sorry about your situation and you may even want to try and seek some good face to face assistance with this matter to try and get it taken care of correctly.

And yes you really do have a big problem that you will have to try and solve yourself since it is your problem and since your husband does NOT want it combined with or added to his own 1040 federal income tax return even when you are still married.

And your biggest problem will be your limited records and all of your needed correct good record and your receipt books for all of your gross income and expenses of your business operation that you need for this purpose.

Key words are good detailed records of all ordinary and necessary expenses of the business operation and a daily detailed mileage record or log of all business miles and all personal mileage that the vehicle is actually used for each purpose to help you determine your actual percentage of business use and in the event that you need the written records at some future time you would have them available to you.

All of your gross income from all sources of worldwide income will be reported on your correctly completed 1040 federal income tax return.

Using a receipt book to make a receipt for each time that any one pays you in any way or item or trade for the amount of $$ value that is received at that time and totaling the gross self employed income for the tax year with any other 1099-MISC income that is received after the end of the tax year and entering the total gross $$$ value amount on the schedule C line 1 GROSS receipts from your trade or business

In general, taxpayers may deduct the ordinary and necessary expenses for conducting a trade or business. An ordinary expense is an expense that is common and accepted in the taxpayer’s trade or business. A necessary expense is one that is appropriate for the business. Generally, an activity qualifies as a business if it is carried on with the reasonable expectation of earning a profit.

You would have to be sure that you handle your business deductions correctly for your business operation.

For instructions and forms go to the IRS.gov website and use the search box for publication 334 a very good place to start with examples.

Publication 463 Travel, Entertainment, Gift, and Car Expenses

Use the search box at the www.irs.gov website for Small Business and Self-Employed Tax Center

Filing Season Central is your one stop assistance center for filing your business returns. This includes Highlights of Tax Law Changes, Tax Tips, and more.

2 of the seven tax tips for starting a business enclosed below.

#4 Good records will help you ensure successful operation of your new business. You may choose any record keeping system suited to your business that clearly shows your income and expenses. Except in a few cases, the law does not require any special kind of records. However, the business you are in affects the type of records you need to keep for federal tax purposes.

#7 Visit the Business section of the IRS gov website for resources to assist entrepreneurs with starting and operating a new business. Go to the IRS gov website and use the search box for the below referenced material

*Starting A Business

*Operating A Business

*Closing A Business

*Publication 4591, Small Business Federal Tax Responsibilities (PDF 470.1K)



http://www.irs.gov/



http://access.wa.gov/business/taxes.aspx



Hope that you find the above enclosed information useful for your situation and good luck to you.

Answer 2

Yo will have to file a 1040. That is the basic income tax return form. You will have to file a Schedule C. That is the form for people who are self-employed. On that form you will put your total income and your expenses. The expenses are entered in various categories. You will also need form 1040-SE, which is used to calculate your self-employment tax (the equivalent of Social Security and Medicare). The number from SE and C got to form 1040, where you calculate your tax due.



Now to answer your questions:



Your tax person should know how to deal with the fact that you don't have all your documentation.



It is no problem that you don't have a company name.



You need to give your tax person all the business records you have - all your receipts (or any detailed lists of them) and proof of all your income.



Either a CPA or enrolled agent. I don't know who would be better or cheaper.



There may well be penalties, since you apparently didn't pay any estimated taxes for the year 2010 and you didn't file or pay for 2009.

Answer 3

Running it under your name, not a business name, isn't a problem, and doesn't cost extra.



Not having receipts IS a problem, you won't be able to deduct the other expenses so will pay more tax than you would have had to. When you go to the tax specialist, have him or her explain what records you need to keep. In the meantime, save EVERYthing. Take in anything you have for 2010. They'll probably give you other suggestions and have you come back with other info.



An Enrolled Agent will probably be your best option.



There will be penalties on anything you owe for 2009. For 2010, depends on how much you owe.



Good luck.

Answer 4

for one thing you can call 1 800 829 3676 and request publication 334 to help you

and yes, you probably should file your 2009 as married, separately but your 2010 can be as a single person

and yes you will need some record of your income and expenses on this self employment income which you report on sch C and if the net amount is $400 or more you also file sch SE calculating your self employment tax

and yes, I would find someone with some knowledge to help you