Ugh, honestly, it’s so typical here that one rule just completely sidesteps another. Like, my card transaction hits my checking account automatically—I didn't manually deposit it myself, the merchant processed it. Period.
I'm not saying the other way is wrong, and I'm sure any excuse works as long as the income is reported and we aren't screwing over the good old US economy.
I’m gonna try my luck over on this thread since you guys basically tossed me under the bus earlier (regarding those write-off expenses on this absolute dumpster fire of a software):
Welp. I guess I really messed up then.
I went ahead and filed the income without actually adding the amount to the write-off expenses, even though I'd already logged the depreciation as an in-kind expense.
So, what’s the move here? Is this some massive, IRS-level sin?
I basically treat my credit card reconciliation like some kind of DIY scrapbook project.
I just pull the statements from my online banking, print out everything for the period, and then manually log all the transactions—recording the actual deposits against the ledger while treating those pesky fees as "in-kind" income.
Look, sure, I’m technically making the numbers look a little... creative, but whatever. 😁
Hey, look, to be honest—I have absolutely no clue. I think I saw something about it in one of those old threads regarding small business taxes, but honestly, my memory is shot. Sorry if I'm spreading misinformation here. :-D
🙂 So... any updates on those corporate filings and sending over the paperwork for them? Are we actually going to have to deal with that headache, or can we just pretend it doesn't exist? Honestly, I’m getting zero intel here—and naturally, not a single subscription to a trade journal in sight this year either. 🙏
Arthur Bishop6 said:Look, regarding the membership dues: I’m calculating the 2015 fees using the old rates, but obviously, the prepayments for 2016 have to be based on the new rates. It just makes sense. That’s what they laid out in the Chamber of Commerce guidelines, and honestly, it's common sense. The 2016 prepayments should follow the new scale, while the 2015 stuff stays at the old rate.
I already did it that way and sent off two forms...🎉 If they don't like it, they can try to charge me whatever they want. Let 'em.☕
Look, I did everything by the old rates and I couldn't care less.
Rachel Allen21 said:Good afternoon! I have a few questions regarding the P-PPI form. Specifically, I’m looking for some clarity on how to reconcile the differences between my bank statements and the income reported in the KPI: 1. Should owner loans be categorized under "other non-taxable receipts," similar to how we handle tax refunds from the IRS? 2. Where should I record sales tax? It’s included in the total deposits, but since the KPI requires me to report gross receipts excluding sales tax, I'm not sure where that gap goes. 3. For credit card transactions, the KPI asks for the full amount charged, but my bank account only shows the net amount after the processor takes their fee—how do I reflect that discrepancy on the P-PPI?
I really hope someone can point me in the right direction; the deadline for filing the DOH form is creeping up fast, and I still have so many unanswered questions!
THANKS IN ADVANCE!!!
1. Yep. 2. You can either enter the total receipt including sales tax (minus VAT) and then subtract it with the next line item. Or, just enter the total amount without sales tax and then adjust it through expenses so everything "evens out." Most people do it that way—honestly, I do too, because my software doesn't separate sales tax for me. 3. Just look at how much the card payments actually hit the bank account and list that as the receipt. Then, list the processing fee as a non-cash receipt.
Alright, look. Sure, the tax rates for sole proprietors can be pretty steep, but honestly? You’ll just have to learn how to live on what you actually pull in and get into the habit of tracking every single cent coming in and going out.
The absolute best part about being a freelancer compared to running an LLC—where you're constantly paying taxes just to move money from your business account to your personal one—is that we can all just grab cash whenever we want without jumping through hoops.
Or, if you want to look at it the "official" way: you’ve got a right to a tax-free chunk of change... about $2,600 a month, assuming you aren't claiming any dependents.
But yeah, at the end of the year, once the accountant runs the numbers and looks at the bottom line, you'll find out exactly how much the government is taking from you. And don't get it twisted—that amount isn't strictly tied to how much cash you're physically withdrawing from your bank account. It’s related, sure, but it's not a direct 1:1 thing.
amberbadger17 said:I just sent off my tax return and the Form 1040. Everything went through smoothly, thankfully.
On a side note, I’m about 100 pounds lighter now. Life is good.
Anyway, I could use some quick advice regarding Schedule C:
Under "other non-taxable income," I included two transfers to my savings account that were actually related to a deposit from back in 2014, even though the money hit the account in 2015. Do I need to attach bank statements? They just say "cash deposit" since I did it at an ATM, so they aren't super descriptive. Or is it enough to just list the amount without any extra paperwork or explanations?
Mars, don't even sweat it—just keep pulling cash out of your business account for whatever personal stuff you need. You can always just settle up the taxes at the end of the year by paying the difference between what you brought in and what you spent.
I just sent off my tax return and the Form 1040. Everything went through smoothly, thankfully.
On a side note, I’m about 100 pounds lighter now. Life is good.
Anyway, I could use some quick advice regarding Schedule C:
Under "other non-taxable income," I included two transfers to my savings account that were actually related to a deposit from back in 2014, even though the money hit the account in 2015. Do I need to attach bank statements? They just say "cash deposit" since I did it at an ATM, so they aren't super descriptive. Or is it enough to just list the amount without any extra paperwork or explanations?
graniterider10 said:Can someone please tell me if I should be recording an input ID that doesn't show sales tax because the company isn't registered for it? I have to enter it through the Input Receipts ledger... does it actually matter for that specific book whether there's sales tax included or not? I always assume it does... so I only log those specific receipts there, and for anything without tax, I just write down the check number as the link. I'm not sure if I'm doing this right?!
Honestly, I don't think you're doing anything wrong either way. With the accounting software I use, it's just easier to track the non-taxable stuff through the K-UR, so that's what I do. Been doing it that way for years and haven't had any issues from the IRS or anyone else.
Keith Martinez5 said:Thanks... and I have one more quick follow-up question—since this is a sole proprietorship, the owner pays himself a monthly draw directly from the business checking account. Does that need to be included in the quarterly tax filings?? If so, what's the best way to handle it? Honestly, I'm feeling a bit lost here and I really don't want to miss anything important. 😕
Never heard of it. Just what we needed, right? More paperwork. At least we can still pull cash whenever we want without having to explain ourselves. Let's hope they don't get bored of letting us slide and start demanding stupid, soul-crushing documentation for everything.
As far as I can tell,$1667 we're hitting limits again now that the new tax reporting rules are in full swing.
Here’s what’s actually bugging me: do I need to attach extra documentation or proof when filing the PPI for section V.2.5? I’ve got some old deposit records dating all the way back to 2014, and I'm sitting here wondering if I really need to dig up those bank statements and send them in.
At the end of the day, neither the jobs nor the interest rates are going to be the real issue... has anyone actually tried sending a direct inquiry yet?
I have this overwhelming urge to just smash things. I'm honestly over it.
Regarding those interest rates everyone’s obsessing over—I’ll just throw that into my footnotes. Honestly, I’m not going to lose sleep over a few bucks here or there.
Anyway, quick lightning round question: if I want to list my husband as a dependent—assuming he meets all the criteria—do I need to submit both the standard HHS form and that other specific one, what's it called again?
He isn't on my insurance, and I have zero intention of adding him.
I was thinking about just attaching our marriage certificate and calling it a day.