Repossession

First it is a matter of how much you make, not which form how it is reported on.

However, as anything on a W-2 more than likely shows the amounts of tax (and other things) that were withheld or paid on your behalf, you would want to report any amount on a W-2 to get the amount OVER withheld back in a refund.

Whether you have to file a tax return depends, in part, on your filing status, age, and gross income. Please refer to the "Do You Have to File" section of the Form 1040 Instructions, Form 1040A Instructions, and Form 1040EZ Instructions to determine if you are required to file a tax return. You must file a tax return if you had net earnings from self-employment of $400 or more. This is your total self-employment income less the expenses paid in operating your trade or business, multiplied by 92.35%. For more details, refer to Topic 554, Self-Employment Tax. If you are an individual who may be claimed as a dependent on another person's return, you are subject to specific filing requirements. Refer to the instructions in your tax package or refer to Publication 929, Tax Rules for Children and Dependents, or Publication 501, Exemptions, Standard Deduction, and Filing Information, for the filing requirements for dependents. You must file a tax return if you received any amount of advance earned income credit payments from your employer during the year, or if you owe any taxes, such as: * social security tax and Medicare tax on tips or group life insurance, * alternative minimum tax, * tax on qualified retirement plans including an Individual Retirement Account, or other tax-favored account, * tax from recapture of an education credit, investment credit, low income housing credit, federal mortgage subsidy, qualified electric vehicle credit, or the native American employment credit. Special filing requirements may apply to U.S. citizens who are residents of Puerto Rico or who have income from U.S. possessions. Refer to Publication 570 for additional information. Residents of Puerto Rico should select Topic 901. Generally, you must file a tax return if you are a nonresident alien with income from sources in the United States. For more information on nonresident aliens, select Topic 851. Even if you are not required to file a tax return, file a return if you are due a refund. If you did not file a return for a previous year and you were required to do so, refer to Topic 153. If you need help determining which form to file, refer to Topic 352.

Yes.

Actually, I don't know that they will. I know that they legally can. Repossession is a hassle for the creditor too, so they might at least make some effort to contact you and give you a chance to make it right first. Or they might not.

If someone has told you that making a partial payment will legally prevent them from repossessing the vehicle, that's not true anywhere that I know of.

An average agent makes less than $50,000 a year and that is after going in to debt the first 4-5 years approx $100,000-$150,000 the new contract is awful . Older agents on the older contracts average $300,000 but not on the new deal it's no longer a prized opportunity. Son and Daughters are not going into Dad's agancy and now in some cases Mom's. The company is going the way of Geico and is pushing new agents out by making them earn blue collar wages after risking their entire life and being an agent. This new contract has causes hundreds of bankruptcies and divorces. Reports are as high as 25% QUIT in the first 4 yrs due to not getting close to what State Farm promised them, look elsewhere or go Independent.

Answer

Let me give an answer from the perspective of a six-year employee (me). I work as a licensed agent (staff person) working for an agent. I have worked for two State Farm agents, in two different markets. I tried to become an agent and was not approved. Perhaps it was a blessing in disguise. From the words of the first agent I worked for, "I wouldn't encourage my own son to try to become an agent." He explained to me as one of the commentators did here that the 'older' contract (the one he was/is under) was very lucrative but that the company has changed that contract at least twice since. As stated, the failure rate for new agents is high- over 50% don't make it. Many of them do indeed pour their live savings (and borrowed money- tens and tens of thousands) and efforts into their hopes of the dream business- only to miss quotas during their first or second years and end up terminated by the company.

Answer

More and more newer agents are filing bankruptcy. They mostly started in 2004 and 2005 and next year the 2006 agents will be included. The company will NOT let you take a copy of this current contract to your attorney for evaluation before you go in to agency this is even after you have been hired by the company. Ask them if you can do this and their word track will be the last person that did that is no longer with the company. Why wouldn't they let you see a contract that they expect you to run a business and create a business plan off of that's insane. The current contract is 8 %, Yes you can make more than that on your P&C but you will spend more than you will get in return, You are on a higher default rate the first two years and then MOST agents take a pay cut, even some the top 20% do. Management will not tell you what the number % of new agents that actually take a pay cut after default. The agents that went into management are not coming back to "personal production" as they call it as they know the current contract is not good and they are not getting the Big Books of business that they once did. This is not a good opportunity on this current deal it has caused many Bankruptcies and divorces. If you are considering this or are already in you need to know some things to survive.

1. Borrow as little as possible, now before you get your contract they will "suggest" you a. have 3 or more staff b. buy the expensive new furniture package. c. Sign a lease on a nice office that will surely have high rent. d. They will "suggest" you opt in to all types of marketing and advertising some are poor returns but they will still "suggest" it

2. Try to purchase a used furniture package, there are so many agents that are leaving after 3-5 years there are a lot of nice slightly used furniture packages. Talk to new agents they will know about an agent that just quit of filed BK and call them, The furniture packages are $18,000+ new many times you can get a great deal on them.

3. Try to rent the current office ask, beg whatever for a 1 year lease. Mgt lies to you so tell them anything like you are going to build your own building

4. You may have to have that 3 rd or 4th staff (team member) to get your contract as soon as you sign cut right away and try to keep them from going to another agent in town and stealing accounts, as the company will do nothing if they do this.

5. Try to make friends will all the agents in your town and get them to agree that you will not hire their staff or vice versa. Do this before you start agency. Of course they will ask you about one of their friends in your book, give them to them to show you are willing to work with them. Now you do this because you get paid more on auto and fire the first 2 years so when you cut after you sign you won't have your x staff going to the agent a mile down the road stealing 200 customers, I have heard some horror stories. The company will over pay the staff if they have to pay the bills for a while if there is time between you and the previous agent. Some staff (numbers used just for example) were making $12 and hour for the old agent the AFO may have paid them anywhere from $15-$20 to retain then, you immediately tell them that they were basically all fired when the old agent left and it's up to you to choose to hire them or not and you are a new business owner and there is no way you are paying that much. They will say they can't afford a pay cut, well they worked for years for the amount the previous agent paid them. You will see right away if they are a tem player or not. Let them know you have agreements with all the other agents that they won't be hired there. You can never let your customers or employees dictate how you will operate your agency. Most staff won't quit they need their jobs as much as you need experienced staff. So if they do quit just replace them. Also get immediate access to their email accounts many agents have caught their staff stealing this way or wasting alot of time with worthless email. If your staff clicks off email alot when you walk by they are doing things they shouldnt. Make them keep their cell phones off and make them accountable. Some will be great workers others will only have had to service policyholders and can't sell you might need one service staff the first year but you dont need three.

6. Document everything you DAFE tells you and contact nasfa they can help you, maybe even record what is said in meeting in your office it's your space and you can do that. You will spend way to much money the first year you have to try to control it w/out appearing to do so. I can't tell you the # of agents that started in 2004 and 2005 that say they are $100,000-$150,000 in debt w/out any light at the end of the tunnel.

Remember nothing is going to change unless they do the right thing and give Us the same deal the previous agents have called the AA97 contract. The main goal is to tell every new agent what the truth is and the Interns need to know what they are getting in to because they have been led astray to by management. They told these newer agents that it's our fault as we didn't control our expenses. They made us get all that staff, rent, furniture etc. They say they "suggest" but it's clear you do these things or forget getting your contract. Also sell tons of LIFE Insurance. Hopefully you will start near Jan, if not then depending on when you start open the flood gates. Go ahead and Buy that HUGE policy on yourself. Buy them in 3 or 4 policies because you'll probably need more life insurance but after yr. 1 you can cancel 2 or 3 of them. You don't want to be paying $20,000 a year for life Insurance. Get your contract and then cut back cut down, work hard and sell all you can, keep one staff if you can afford them. It helps if your spouse works it's almost a must. This opportunity is NOT Recommended until they treat Us all the same and that's the AA97 contract.

Lots of people are walking away from their mortgages these days for various reasons such as losing a job, or if they locked into a variable interest & now find their mortgage payments even higher & the value of their home has plummeted. Many people are finding it is better to walk away. It's happening all over the place, all over the country. What you lose first is any money you put down initially; however if you bought a home for say $300K, you put $100K down & the house is valued at $200K or less, if you sell the house, you've lost that money anyway. If you were lucky to sell your house, you might even owe money at closing. So you've lost your initial down payment, have to bring more money to closing & pay some closing costs. That doesn't make sense. If you do that the bank will love you. You also have to factor in that you did get a tax break for the interest you deduced off of your income for income taxes. So sometimes it makes economic sense to walk away because it will take years for the market to get better (10 years or more).

We all know that this is a risk all banks take when they finance mortgages anyway & they take all their interest upfront when you make your payments & very little of your mortgage payments actually goes towards bringing down the mortgage.

Your only risk is that your credit rating will be shot for a few years. If you have credit cards, make sure you make the minimum payment every single month and pay all your other bills (utitlity, phone, etc) on time. The mortgage company rarely will come after you because you surrendered the property back to them & defaulted on the loan. They now have your house.

They only time you really get into hot water is when you don't pay taxes, that is when the State or Government can get after your assets. Since you surrendered your house back to the bank, they now have possesion of it (you didn't steal it) and they are liable for the taxes because it's now their house.

If you bought a car & you can't pay the payments, the dealer or finance company just comes & reposesses the car & TAKES BACK their property. They don't come after you because they now have their property back and again, this hurts your credit rating.

c'mon it's America there too 5.85/hr