Is what H&R Block said true
May 31st 2014, 6:16 am
#16
Lost in BE Cyberspace
Joined: Mar 2010
Location: Phoenix, AZ
Posts: 8,106
Re: Is what H&R Block said true
They're worse than useless, imo, because they so frequently give out inaccurate info like in the case the OP posts on.
To me they're pretty much a scam. They spend a ton on advertising convincing people they'll get large refunds:- refunds that are often large only because they previously have "encouraged" repeat customers to over withhold.
To me they're pretty much a scam. They spend a ton on advertising convincing people they'll get large refunds:- refunds that are often large only because they previously have "encouraged" repeat customers to over withhold.
May 31st 2014, 7:05 am
#17
BE Enthusiast
Joined: Mar 2010
Posts: 478
Re: Is what H&R Block said true
A lady at H&R Block said that income reported on 1099Misc or 1099R is not subject to the "Standard Deduction".
In other words, in the theoretical situation that someone is using the standard deduction of $6500 and their only income is on 1099 and is less than $6500, they will still have to pay tax on it.
However if that same person only had interest income or divident income less than $6500 they would not have to pay any tax.
Is this true?
And if yes, what kind of logic is this?
In other words, in the theoretical situation that someone is using the standard deduction of $6500 and their only income is on 1099 and is less than $6500, they will still have to pay tax on it.
However if that same person only had interest income or divident income less than $6500 they would not have to pay any tax.
Is this true?
And if yes, what kind of logic is this?
May 31st 2014, 12:29 pm
#18
BE Forum Addict
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 4,131
Re: Is what H&R Block said true
http://www.taxact.com/ is free, so I would suggest the OP try putting in his/her details to see if a return is required.
An early distribution from an IRA reported on a 1099-R probably is taxable with a 10% penalty. Also a 1099MISC is for self employment income so payroll taxes of ~12% may be due, even if income tax is zero. (Payroll taxes goes towards social security and Medicare)
An early distribution from an IRA reported on a 1099-R probably is taxable with a 10% penalty. Also a 1099MISC is for self employment income so payroll taxes of ~12% may be due, even if income tax is zero. (Payroll taxes goes towards social security and Medicare)
May 31st 2014, 4:16 pm
#20
Bloody Yank
Joined: Oct 2005
Location: USA! USA!
Posts: 4,186
Re: Is what H&R Block said true
Perhaps what she meant to say was that the income on the 1099 is not subject to withholding, as would typical wage income. If you don't have enough tax withheld or otherwise paid in for the tax year, then you will be subject to a penalty.
