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Post by gentlegiant on Mar 29, 2013 21:39:17 GMT -5
So... I'm in a study right now... and my roomie told me H&R Block in Palatine, IL did her taxes and told her of a 'new tax law' that basically makes it so that we don't have to pay taxes on drug study income. So then she didn't have to pay taxes on her study money for 2012.
Anyone else hear of such a new law?
I tried googling it... and got nada.
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Post by idoitforthepong on Apr 1, 2013 11:17:50 GMT -5
Hey GG. Congrats on being done with the study...i'm pretty sure i was in the same one by the way...though i didn't hear anything about this new tax law. I was sent 1099s (misc income, which i'm flipping out about right now because i can't find them!!) from all my clinics i was at last year so I wouldn't see why we don't have to pay. That is the clinics assume we follow proper tax code and the IRS assumes we do our "patriotic duty" within the bounds of all laws.
Looks like all the talk on this board and other subjects i've talked with have reported their study income for the last year. Maybe going forward for 2013 soing will change but i doubt it. Only thing i can think of is that maybe your roomies income of studies was under the threshold where it needs to be reported??
If you've driven a lot to clinics last year then tally up your mileage (i'm not totally sure how to present this since i haven't done my taxes yet...see my previous posts on this for more) You may increase your refund significantly if all works out.
Good luck...and let us know if you hear anything more on this or any tax issues
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Post by vark on Apr 1, 2013 20:53:23 GMT -5
i'm no tax expert, but i doubt there's any new law saying we don't have to pay income tax on study money.
i'm guessing that for her her study income, less expenses, didn't add up to enough that she would have to pay. my limited understanding is that people who only occasionally do studies can declare it as "other income", and avoid fica. us full time lab rats pay fica and income tax on our net income, not gross. deductible things might include mileage, hotels, per diem food expenses when away from home for work of around $60 a day, expenses for say phone or internet if you have those for lab ratting (and not just personal use.) i ended up owing $300 in fica, zero federal income, $15 state income, on about $28K gross ($18K from lab ratting) - i was able to write off much of my gross, for stuff like greyhound tickets.
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Post by idoitforthepong on Apr 4, 2013 0:10:56 GMT -5
Vark, looks like you got A LOT written off of your gross...I'm a bit envious i must admit! I'm guessing you did long trips for most of your labratting?
I have to pay close to 1700 (state and fed) from less gross and thats with about 4000 miles deducted...but no other travel expenses.
Having to owe 1700 soon is a bit of a shocker, but that's what we get with getting our lump sum and getting the 1099s back later. My tax preparer said soing about making next years tax payments to 1099s quarterly. I'm not to sure on how to do this but it will help ease the pain of getting hit come tax time. In the mean time i'll be waiting for a clinic to up on the Cayman islands.
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