How to Avoid Owing Back Taxes on Unemployment Benefits

At the end of last week I posted an entry on the RoniDeutch.com Tax Relief Blog with advice on how to avoid owing back taxes on unemployment. Check out the text of the entry below.

Taxable Income

Believe it or not, the money you receive from unemployment benefits IS taxable income. Which means you are going to owe both federal and state income taxes on it (if your state has an income tax). At the end of the year you should expect to receive IRS Form 1099-G, which will show the total amount you received in benefits.

Withheld Taxes

When collecting unemployment benefits you are not required to have any taxes withheld, but it is an available an option, and a good one at that! By having income taxes automatically withheld from your checks, you can avoid having to write a big check come next April. When you apply for unemployment, you can select to have a 10% federal income tax withheld, as well as a state income tax (the exact percent will vary per state). It is also highly recommended that you take a thorough look at your first unemployment check stub to make sure that the correct taxes have been withheld.

First $2,400 is Tax Free

Although you do have to pay income taxes on unemployment benefits, in 2009 you will not have to pay taxes on the first $2,400 in unemployment benefits you receive. Confused yet? Well, it only gets more complicated. The change is part of the new 2009 American Recovery and Reinvestment Act and only affects the 2009 tax year. All benefits from the year 2008 and before are fully taxable. For more information, check out this IRS news release on the topic.

Severance Pay

Do not forget that any severance payment you might receive is also considered taxable income. This includes any one-time payments, as well as payouts for accumulated vacation or sick leave benefits. It is considered regular income, and should be taxed at your appropriate tax rate.

Estimated Payments

If for any reason you do not choose to have taxes withheld on your unemployment, you should still consider making an estimated quarterly payment. It can be somewhat confusing to calculate and file these payments, but it beats getting hit with an underpayment penalty at tax time.

Check State Laws

Do not forget that your state is also going to tax your unemployment benefits! If your state has an income tax, then you will likely have to pay income taxes on your unemployment benefits. However, every state is different so before making any decisions, check out your state’s website, or ask a professional for help.

Continuous Job Hunt

One of best ways to avoid tax problems is to build up allowable deductions and credits. Luckily for the unemployed, the tax code provides a cornucopia of tax savings for job hunters. From education deductions and credits, to the job-hunting expenses deduction, to the moving deduction, the code is set up to help you avoid owing taxes while unemployed so long as you are actively seeking employment. In addition, most states provide similar deductions and credits. So, please do some research—you can start by checking out my blog entry on the topic here —or meet with a tax professional to find out how Uncle Sam is willing to help you on your job hunt.

Get Professional Help

Just because you are unemployed does not mean the IRS is going to let you get away without filing a return. In addition, your return is certainly going to look a little different now that you are receiving unemployment income. Having professional guidance through this financial change may prevent you from making some major mistakes on your tax return.

Taxes: Have You Paid Your Fair Share?

From CBS News.com:

I guess we've all paid - or avoided paying - our taxes by now and it feels good to have it over with. It didn't hurt much, did it? I made more money last year than I made the year before, but of course my taxes were higher too - the most I ever paid.

To tell you the truth, I have a feeling I paid more than my share of taxes. I guess everyone feels that way.

I have an idea how the IRS could get more money out of the tax cheaters and it wouldn't cost the government a nickel: they would make tax records open to all of us. The figures would be available to anyone who wanted to look them up. This would be a good way to get everyone to pay what they owe. I'd be willing to do it if everyone else did it.

Some people wouldn't dream of cheating anywhere else but they don't worry about cheating on their tax returns if they think they could get away with it.

I've always thought that Uncle Sam goes about trying to get us to pay our taxes the wrong way.

The IRS never appeals to us as patriotic Americans. I think what everyone pays should be public information. Americans would be happier to pay their income tax if they thought that everyone was paying what they were supposed to pay.

Maybe people would be proud of what they pay instead of hiding their income.

I don't know why our tax returns are secret, anyway. What we earn isn't usually much of a secret to anyone who knows us or to anyone who wants to find out what we make.

About 45 percent of what the federal government gets comes from individual income taxes.

Forbes magazine did a piece that said that rich people hide more of their income than poor people hide. Well, of course they have more to hide but generally speaking I think Americans are willing to pay their income taxes. They just want to be damn sure they paid their share - not their share and part of someone else's.

Helio Castroneves Found Not Guilty In Tax-Evasion Trial

The ongoing case of Indy 500 champion Helio Castroneves has finally ended. The jurors found Mr. Castroneves not guilty of the tax evasion charges he was facing. Check out the following snippet from the MiamiHerald.com on the recent decision.

Indy 500 champ Helio Castroneves survived a potentially devastating crash Friday, acquitted of tax-evasion charges by jurors who struggled for six days to unravel complex evidence on racing-car contracts, tax law and offshore companies.

In the end, jurors found Castroneves and sister Katiucia not guilty on six counts of evading taxes on $5.5 million from race car earnings. The pair sobbed and hugged each other after hearing the decision.

The 12-member Miami federal jury deadlocked on the lead conspiracy charge against the siblings, which prompted U.S. District Judge Donald Graham to declare a mistrial on that count.

The jury also acquitted the Brazilian race car star's sports attorney, Alan R. Miller, on the main conspiracy charge and three other tax evasion counts. Miller was not charged in three other counts of the indictment.

With his legal victory, Castroneves was scheduled to fly immediately from South Florida to California to compete in the Toyota Grand Prix of Long Beach for Penske Racing, the team that hired him in late 1999. His contract with the legendary racing organization -- the big break in a career that began as a teenager go-cart racing in Brazil -- was at the core of the government's tax-evasion case.

Flanked by attorneys and an entourage of friends, Castroneves emerged from the downtown federal courthouse, his eyes swollen and red.

He showed off a rosary, proclaimed his faith and interviewed with both U.S. and Brazilian press.

''It's been a nightmare, and finally we wake up,'' said Castroneves, 33, who was sidelined from IndyCar racing during his legal ordeal. ``Instead of going to Disneyland, I want to go to Long Beach and race.''

And then he was off, jumping into a black Porsche Cayenne SUV to take him to Miami International Airport.

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Congratulations! Tax Season is OVER!

Whew! You made it past April 15. Time to relax and ignore your taxes until next year, right? WRONG!

Tax planning is a year round endeavor, at least it should be. Here are just a few things you should be doing now to help you keep more money in your pocket, and less in the IRS coffers.

Get Organized!

While all your tax files are still handy, take the time to organize them. Create files for: Income, Medical, Donations, Real Estate, Child Care, Tax Correspondence, Student Loans, Miscellaneous Receipts, Tax Payments, and Archived Tax Documents. And keep the files handy. If it is easier to put receipts and documents in files as throwing them in a pile on the kitchen counter, you might actually still have that receipt next year. Another helpful tip: write down what the expenditure was for, the dates and who was involved, and attach it to the actual receipt. You probably won’t remember every single deductible expense a year from now, so make a note and ensure you get every deduction you’ve got coming to you.
Change Withholdings

Did you get a fat refund this year? Then you may want to adjust your withholdings. I know getting a big check from the government feels good, but wouldn’t that money be more useful to you all year long? With the average refund running around $2,500 that’s $200 a month you could keep in your pocket! Stop giving the government an interest free loan while you struggle to make ends meet. On the other hand, if you found yourself with a big tax bill, consider increasing the amount withheld from your paychecks. Remember that we’re aiming for the “Goldilocks” principal: not too much, not too little, but just right.
Get Educated!

Most people are missing out on deductions and credits they are entitled to, all because they don’t know any better. Americans are so terrified of taxes because they don’t actually know that much about them. Pick up a book, peruse the IRS website, or take a class. By taking some initiative, and learning more you are becoming a better steward of your family’s finances. If that’s not enough to convince you remember, increasing your tax knowledge can save you money!

I promise next tax season will be much easier if you do just these few simple things.

Are You Required to Make Estimated Tax Payments?

Few things are more confounding to taxpayers than estimated tax payments. Moreover, few things get taxpayers into more trouble.

Estimated tax payments are supposed to be made quarterly by any taxpayer whose taxes aren’t withheld from their income. If you work for a company and they withhold taxes for you, including Medicare and Social Security, then you probably don’t have to make quarterly payments. But, if you also do some other work on the side, like selling Avon or doing freelance work, you are required to pay taxes on that income.

If you are an independently contracted worker, or self-employed, then you need to pay income and Social Security taxes on your income. How much you will pay depends on how much you make and your general tax situation. A good estimation is to take a look at your most recent tax return. Take your total tax liability and add 15% to account for Social Security and Medicare taxes. If you predict having similar income and deductions this year, then you can take the total tax liability, divide it by four, and that’s your estimated quarterly payment.

Making these payments may seem like a hassle, but as I mentioned, not making these payments gets so many taxpayers in trouble with the IRS. If you don’t make them, the IRS may penalize you at tax time, or you might be saddled with more tax liability than you have the ability to pay. Just think about it, if your total tax liability for a year is $5,000, paying it all at once is probably going to hurt. But planning ahead and paying $1,250 every quarter is probably more manageable. Alternatively, you can make monthly payments, if that is easier for you. Simply divide your total tax liability by 12.

Small business owners have historically failed to make accurate and timely tax payments. The IRS figured this out and now heavily scrutinizes any self-employed people and small-business owner tax returns. This can lead to audits, penalties and enormous tax debts. From my experience, this is one of the top reasons people get in debt to the IRS. And in this case, an ounce of prevention is worth a pound of cure.

How to Avoid an Extension in 2010

Wednesday was the tax deadline and thousands were scrambling to request an automatic extension from the IRS. Although you will not be penalized for filing a tax extension – as long as you pay all required tax liabilities – it is a good idea to get in the habit of getting your return prepared and filed before April 15^th. By planning ahead, there are plenty of easy things you can do now to prevent the need for a tax extension in 2010.

1. Organize your documents

By keeping your tax documents in one place throughout the year you will always be one step ahead of the game. As you get closer to next tax season, begin to review your financial documents and make sure you have everything you will need to do the actual filing. You could even make yourself self a tax checklist, to make sure you do not forget anything.

2. Start early

Start the compilation, organization, and calculation process as soon as you can. All tax forms are available on the IRS’ website year-round, so it’s never too early to begin. In addition, you should start receiving all income and expense statements from third-party reporters (e.g. employer, bank, investments, etc.) by mid January. The sooner you start, the more you can spread out the task, making it easier to do. Depending on how complicated your return is, you could do a little bit every week leading up to the deadline.

3. Make estimated payments

If you are self-employed, or a small business owner, then you need to make quarterly or monthly estimated tax payments. Never evade these necessary taxes, as the penalties will be far worse come tax season—especially if you did not pay enough during the year. If you make enough through your self-employment, then you might want to consider having a professional help calculate your quarterly payments to make sure you are always ahead of the game.

4. Have Internet available

Having a computer with Internet capability will also help immensely during tax season, because you can use it to easily research tax information. You may be surprised how much information about taxes there actually is online these days. Instead of calling up your accountant or tax preparer every time you have a question, try doing a Google search to see if you can find the answer online. Or visit my company’s blogs at www.ronideutch.com/blog and www.rdtc.com/blog.

5. Determine if you will need help

Never be too shy to enlist a little professional help if you are not fully about preparing your tax returns by yourself, or simple do not have the time to do so. Determining early on whether or not you plan to hire help will allow you to take your time choosing the right tax prep specialist or accountant for you. You may also be able to get a better deal, as many tax preparation offices run specials early during tax season.

6. Change your withholdings

If your payroll withholdings are off, then it can make things more difficult when you go to prepare your returns. Moreover, there is nothing worse then being surprised to learn you owe the IRS a huge tax payment come April 15. If you have been over or underwithholding throughout the year, by adjusting your withholdings now, you can make things easier for yourself come next tax season.

7. Find more deductions, make adjustments

Many people put off filing their taxes because they are scared of paying up any money they might owe the IRS. To offset what may be a big payment, take the time now to carefully research the current tax laws to see what deductions you qualify for. If you have already claimed all available credits and deductions, then see if there are any small adjustments you can make in your life to claim some that you may not have qualified for this year.

8. E-file

A lot of people simply do not want to drive to a tax preparation office to file their returns. If you prefer to do things from home, you could try e-filing this year, or look into over-the-phone services. If you have all your info together, both options are quick, easy, and can prevent you from needing to file an extension.

Obama Tax Returns For 2008: See The Complete Filings

A few days ago, both Barack and Michelle Obama released their 2008 tax returns. The Huffington Post published an article examining their returns, and the amount of money they donated to charities. I’ve included a portion of the article below, but you can find the full text here.

When Barack Obama released his 2000-2006 tax filings during the height of the presidential campaign, he was criticized for slightly-less-than-biblically-required charitable giving.

In those years, Obama (serving as Illinois state senator, then U.S. Senator) never offered more than six percent of his income to charity. Twice he gave less than one percent of his earnings.

Fast forward a few years, and the Obamas' returns tell a different story -- both of a higher income bracket and a far higher rate of charitable giving.

The White House released the filings for both the President and the First Lady on Wednesday. Combined, the family brought in an adjusted gross income of $2,656,902, mostly from the sale of the President's books. The Obamas paid $855,323 in federal income tax. And they donated $172,050 - or about 6.5% of their adjusted gross income - to 37 different charities.

Here are the notable donations made

$25,000 to the Catholic Relief Services

$25,000 to the United Negro College Fund.

$5,000 to the American Red Cross

$5,000 to the Boys and Girls Club

$5,000 to the Juvenile Diabetes Research Foundation

$1,000 to Columbia University

$5,000 to the New Orleans Area Habitat for Humanity

$5,000 to St. Leo's Residence for Veterans

$2,000 to the Haiti Foundation of Hope

$5,000 to the Illinois Coalition Against Sexual Assault

Noticeably absent from the charitable giving is the place where Obama sent $22,500 in 2006: his old church Trinity United.

D.C. Tax Protest Is No Tea Party

From the WashingtonPost.com:

First, a truck was to dump a million bags of tea onto tarps in Lafayette Square. But it ran into permit trouble and was turned away.

Then rally organizers showed up outside the Treasury Department. But authorities told them they lacked proper permission and could not set up a stage there.

Then it started to rain.

Next, somebody threw a box of tea over the White House fence, and the police evacuated the park.

Finally, the truck's driver, who had been wandering around town for hours after an overnight drive from Georgia, found a place to unload the cargo: 12 floors up in a downtown advocacy group. Without much of an audience.

The tea party protest of 2009 was a comedy of aggravation, but no matter. Hundreds of demonstrators ignored the missing truck, the dreary weather and the red tape and gathered in Lafayette Square yesterday for a rain-soaked but boisterous rally to protest high taxes, congressional earmarks and government bailouts.

They carried flags and signs bearing such sentiments as "Blackbeard Obama, King of the Tax Pirates" and "Obama Lied, Capitalism Died." In ponchos and under umbrellas, they cheered speakers and gave voice to a sense that the administration has the country on a path to ruin at the expense of the average taxpayer.

"I want my grandson to have as good a life as I've had and have the same opportunities," said JoAnn Abbott of Dale City, one of the rally organizers. "I don't want him stuck with a $12 trillion debt."

"The runaway spending has got to stop," she said. "The people on [Capitol Hill] are our employees. We don't work for them. It's about time our employees [started] working for us. The so-called stimulus bill? . . . The thing oinked, it had so much pork in it."

After Busy Season, Accountants Get a Well-Deserved Tax Break

The Dallas news wrote up a great article on how those of us working in the tax industry get to finally take a sigh of relief, now that tax season is over. You can find a snippet of the post below, but the full story can be read here.

As we breathe a sigh of relief now that we finally filed our taxes, another group is also breathing easier:

The accountants and tax preparers who have worked all-nighters and weekends and skipped family functions to process the endless piles of tax returns.

For them, tax time is taxing.

Today, many are sleeping in, hung over or jetting off on vacation.

Before April 16, never ask accountants how they're doing, James A. Smith advises.

But today is a different story, a fresh start for tax preparers across the land who've scanned hundreds, if not thousands, of returns.

"You suddenly feel a little bit lighter," said Smith, a certified public accountant in Dallas. "Even though you're exhausted, you can breathe this big, deep breath and let it out there and let go of the stress and tension.

"You don't feel you weigh as much as you did five minutes ago."

Across the country, firms organize celebratory buffets, picnics and cocktail parties for their employees for a job well done and to mark the end of the so-called busy season.

Tax preparers polled by the National Association of Tax Professionals said they often take it easy for a couple of days after April 15.

One firm closes down at noon and employees rent a limo and go out for lunch. Many go on vacation, although one tax preparer said she takes a break before tax season so she can remember the beach when she's working late at night.

Last night, employees at Sibley & Co. in Dallas were planning to head out for hamburgers.

The firm will be closed today and Friday to help employees recover. They are "just flat tired," said Ken Sibley, the firm's founder. He's taking his wife to Florida for a week – and he plans to sleep on the plane.

"We have been working an average of 12 to 15 hours a day for six days a week and a lot more than I would want to on Sundays," Sibley said. "It's just been very, very intense."

During Tom Ochsenschlager's first tax season, a manager described the process as running an "intellectual marathon."

Hundreds protest tax increases at Calif. Capitol

From the MercuryNews.com:

Thousands of sign-waving protesters turned out Wednesday for a tax day rally that included attacks on Gov. Arnold Schwarzenegger and California lawmakers by a congressman and a son of former President Ronald Reagan.

"I knew Ronald Reagan. Ronald Reagan was not only a friend, but he was my father. And Arnold, you are no Ronald Reagan," talk show host Michael Reagan said to cheers from a crowd that spilled out from the front of the Capitol.

Reagan and other speakers urged the crowd to reject Proposition 1A. The measure on the May 19 special election ballot would create a state spending cap and strengthen a rainy day fund while extending sales and income tax increases the Legislature passed earlier this year to help close a $42 billion budget deficit.

The budget package also included $15 billion in cuts to state programs and hundreds of millions of dollars in corporate tax breaks.

"My father would say to you, 'On May 19, go out and please win one again for the Gipper,'" Reagan said.

Reagan's speech relied on a selective reading of history. Before he became president, Ronald Reagan served two terms as California governor in the 1960s and 1970s. One of his first acts upon taking office was to increase taxes.

Two Republican state lawmakers who voted for this year's tax increases even invoked the image of Ronald Reagan to defend their decision, saying he campaigned against higher taxes but then raised them when confronted with political reality.

On the Senate floor in February, Republican state Sen. Abel Maldonado of Santa Maria displayed a 1972 photograph showing Reagan signing a bill to increase California taxes.

A spokesman for Schwarzenegger, Aaron McLear, defended Proposition 1A, saying it was part of the Republican governor's attempt to fix "broken government."

Rep. Tom McClintock, a Republican congressman whose district runs from Sacramento's northeastern suburbs to the Nevada and Oregon borders, also criticized Proposition 1A and urged the crowd to support an attempt to recall Assemblyman Anthony Adams, R-Hesperia.

Adams was among the handful of Republican legislators who supported the February tax increases.

"We are going to actively and methodically go after those politicians" who backed the $14 billion in tax hikes, McClintock said.

A spokeswoman for Adams did not immediately respond to a request for comment from The Associated Press.

McClintock, 52, has held taxpayer-funded jobs for most of his adult life. He was an aide to a state senator from 1980 to 1982, when he won his first race for the state Assembly. He lost campaigns for Congress in 1992 and state controller in 1994 but was re-elected to the Assembly in 1996. He moved to the state Senate in 2000 and was elected to Congress in 2008.

Happy Tax Day!

via fishbowl LA.

Tax Day Roundup: Filing Tips and Free Food

Yesterday I came across this great article from LifeHacker.com with some last-minute preparation tips for filers who are late or planning to file an extension today. They also included some information on a few tax day freebies and discounts. You can find a segment of the story below, thanks to LifeHacker.com.

Last Minute Prep Tips:

Need an extension?: If you know roughly how much you'll owe but just can't get through all the paperwork, fill out Form 4868 and send it in with 90 percent of your estimated amount due to avoid penalties and fees. Pretty sure you're getting a refund? Just send in that form, and you've got until around Oct. 15 to file your final claim.

Drop-dead, last-minute tax reducers: If you can't stand to look at how much you owe, today's probably the last day to do something about it. Grab that extension form above, unless you've got the day to yourself (or love late-night post office crowds). Then check out Consumer Reports' Last, best money-saving tax options, which includes things like Roth IRA contributions, child credits, and stimulus payments that never came.

Clean, signed, and keep a copy: That's how tax returns should be filed, as tax whiz Roni Deutch tells the Get Rich Slowly blog. Just having a proper-looking return can keep you away from an audit, but if the numbers themselves make you worry, check out GRS' list of common IRS red flags.

Tax Day Freebies and Deals:

Cinnabon Bites at mall-based Cinnabon locations from 5-8 PM.

Single-scoop ice cream from MaggieMoo's all day.

Free Taco Del Mar Taco all day with a printed coupon.

Tax Day Tea Party Celebrations

Here is a good round-up of Tax Day Tea Parties happening nationwide, via Instapundit. Also, check out:

• Pajamas TV Live Stream
• Via Twitter
• Via Google Maps
• Teabagging the Establishment
• Tax Day Tea Party Open Thread

Finally, here is a good entry by Michelle Malkin describing how the Tea Party phenomenon got started.

Roni Deutch Celebrating Tax Day on the Today Show

After my appearance on the FOX Business Network this morning, I stopped by the Today Show for a segment on tax trivia. Since today is tax day, Kathy Lee Gifford was out on the streets quizzing people on their tax knowledge. After they either correctly or incorrectly answered Kathy’s questions, I provided a little bit more background information on each topic. Check out the embedded video below.

Visit msnbc.com for Breaking News, World News, and News about the Economy

Hopefully, those that got their questions wrong will pick up a copy of my book, “The Tax Lady’s Guide to Beating the IRS and Saving Big Bucks on Your Taxes.”

Roni Deutch on Fox Business, Money For Breakfast

Early this morning I made an appearance on Fox Business News’ “Money For Breakfast”, talking about tax scams, and how you can avoid them. Check out the embedded video below!

4,000 Protest Taxes & Spending at Michigan Capitol

From The Associated Press:

About 4,000 people protested government bailouts and tax increases outside the Michigan Capitol.

The featured speaker at Wednesday afternoon's protest was Samuel "Joe the Plumber" Wurzelbacher, who made news during the presidential campaign when he asked Barack Obama about taxes.

Wurzelbacher urged activists to push for "commonsense" tax and spending policies.

The "tea party" was one of many being held around the country on the last day to file federal income tax returns.

Activists say government is borrowing too much money to bail out corporations. More people showed up than expected by anti-tax groups organizing the event.

The Capitol's director of facility operations made his crowd estimate by measuring how far the crowd extended out from the Capitol steps.

Still No Verdict in Castroneves Tax Case

From USA Today.com:

Miami jurors got new instructions today as they deliberate the tax evasion case of Brazilian race car driver Helio Castroneves and two co-defendants.

U.S. District Judge Donald Graham on Wednesday provided new definitions for some complex areas of tax law. Jurors have issued three notes asking questions over four days of deliberations.

The two-time Indianapolis 500 winner, his sister-business manager Katiucia Castroneves and attorney Alan Miller face more than six years in prison if convicted of tax evasion and conspiracy charges. Prosecutors say they set up a Panamanian shell company to hide Castroneves' income. Defense attorneys say they are innocent.

The 33-year-old Castroneves also won TV's "Dancing With The Stars" competition in 2007.

Obama Highlights Tax Breaks

From The WashingtonPost.com:

President Obama marked Tax Day 2009 with a White House event aimed at highlighting the tax breaks included in the stimulus bill and countering conservatives who launched nationwide tea parties to complain about taxes and rising government spending.

While a few hundred protestors dumped tea bags in Lafayette Square outside the White House, Obama presented nine taxpayers he said were better off financially because of his efforts.

"We have passed a broad and sweeping tax cut for 95 percent of American workers," Obama told reporters in the Old Executive Office building. "This tax cut was a core focus of my campaign, it was a core component of the American Recovery and Reinvestment Act, and it is the most progressive tax cut in American history. And starting April 1st,
Americans saw this tax cut in the extra money that they took home with each paycheck."

In documents released to reporters, Obama touted 10 tax cuts that Americans are receiving as part of the government's overall effort to spur growth and consumer spending. Chief among those, he said, is a tax credit appearing now in people's pay checks and a first-time homebuyers tax credit.

He called the pay check tax cut "the most progressive tax cut in American history" and said it would help create a half-million jobs.

"For too long, we've seen taxes used as a wedge to scare people into supporting policies that increased the burden on working people instead of helping them live their dreams," he said. "That has to change."

The message from conservatives was very different, attacking Obama and Democrats in Congress for spending too much and failing to cut the tax burdens enough for most people.

A 2009 Tax-Time Interview with Roni Deutch

I recently did an interview with The Agony Column’s Rick Kleffel, and provided tax tips for people who used to work in corporate jobs, and are now working as part-time artists and/or entrepreneurs. You can listen to the full MP3 here, or find the author’s summary below:

As an interviewer, I try to avoid agendas when getting ready to speak with an interviewee. If someone wants to know in advance what questions I'm going to ask, I'll inform them that they'll hear them when I speak them in the interview. I research the work, write up the questions and present them on the spot. But for Roni Deutch, I took a different approach.

It's tax time and I didn't want to have an interview that was as long as the tax law books and just as boring and unfocused. I told Roni that when we spoke, I'd be asking her about a very specific situation — I wanted tax information for those of us who had heretofore worked in pretty much simple, corporate jobs but had ended up working as part-time artists and entrepreneurs. It's pretty much a shock to go from handing over a couple of W-2s — or entering them into some horrific tax program — to keeping track of expenses, knowing what you can deduct and even just preparing to collect all the crap you need to present to person qualified to complete the paperwork for you. Deutch nails every bit of advice you need in about 20 hard-driving minutes, which you can hear via this linked MP3 file.