I had previously posted on January 5th that I finished my tax returns (last sentence of the post). While this is true, I haven't been able to file them because Columbia University doesn't give out W-2 forms until the very end of the month. This weekend I received mine, but have been thinking about changing the way that I complete my tax returns.
Last night I was going through forms, receipts, publications, and instructions in an attempt to figure out Yilin's tax status. In the course of such homework, I came across a lot of interesting tax laws. For instance, if you are a whaling captain, you can deduct up to $10,000 per year for whale hunting expenses including weapons costs, food for your crew, and costs to butcher, store, and distribute the whale. Another interesting example is that if you received payment as a death benefit for an astronaut who died in the line of duty, you don't need to claim that payment as income. The last interesting exemption is for donations: donations of $5,000 or less do not require the submission of appraisals. This includes works of art donated by the artist.
So, in light of this new information, if anyone asks you about my tax status, tell them that I am a whaling captain two months out of the year, that my income from Columbia University is actually a death benefit (paid monthly) for the passing of my dependent who died in the line of duty as an astronaut for the University, and I am a well known artist whose works typically command $5,000 or less. There will be a small monetary reward in it for you if all goes as planned. If not, then you may be the recipient of a *small* federal sentence instead.
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3 comments:
Well I feel a bigger bond to you now that I know you too were reading that darn tax booklet last night. I am waiting for one more slip of paper (for the tax I paid on my school loan) and then I will be done. Unfortunately, even though I bought a house...I bought it late in the year and won't reap the rewards of a large tax return until next year. Argh!
that's ok that you won't get the deduction until next year. you'll probably forget about it until time to file, meaning "free" money!
i forgot to mention that there is a form you need to file if you are requesting direct deposit of a refund of $1 million+ (form 8302). interestingly, the form notes that a check will be issued instead if the refund couldn't be filed for reasons such as: wrong name on account, incorrect routing or account number, etc.
excuse me, but i think if i were receiving a million dollar refund i sure as heck would double check my bank account number on the form.
there is also a form for credit for first-time homebuyers in the district of columbia (read as 'politicians'). i don't understand, but apparently it is possible to buy a home for <$5000, according to the directions for line 1 of form 8859:
-Enter $5,000. If the purchase price of the home was less than $5,000, enter the purchase price.
there is also form 8615, for tax for children under age 14 with investment income of more than $1600. wtf? what kid under 14 receives interest of >$1600 from investments? i don't think i have ever got that much from investments in my entire life.
anything about work-at-home would-be writers?
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