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Posts Tagged ‘self employment taxes’

Question: Tax Professionals, what about these quarterly taxes…?

I was told I have to do quarterly taxes. I’ve never done it before. I work a part time job (less than 20 hours a week) and they don’t take any taxes out of my checks (I am NOT self employed). Now, I believe I have to do quarterly taxes for Jan.1 to March 31 of this year. I just started this job back in September. This is a 1099 job. I don’t make much money AT ALL. Who has to pay quarterly taxes? Do you have to make a certain amount of money to be required to pay and file quarterly taxes? How do you file quaterly taxes? Do I use my pay stubs to file or is my employer supposed to send me a 1099 or something every quarter? What papers and copies do I need in order to file? What are the quarterly deadlines? Please answer all of these questions if you can. I’m so confused!

Answer: Oooh, be careful before you file an SS-8. You may be completely in the right, but it will probably upset your employer. If you want to continue working there, I'd think twice before I filed an SS-8.

To file your quarterly taxes, get a Form 1040-ES. Estimate the total amount of income you'll make in 2009 and calculate the total tax (income tax plus self-employment tax) that you'll owe for the year. [Self-employment taxes are 15.3% of net income, and the income tax rate in included in the 1040-ES instructions.]

Send the 1040-ES Voucher #1 with a check for 22.5% of the total tax into the IRS before April 15th. Send in Voucher #2 with a check for another 15% by June 15th. The third voucher goes in with another 22.5% by September 15th, and the fourth voucher goes in with 30% by January 15, 2010. This will cover 90% of your tax. You'll still owe 10% of the tax when you send in your tax return.

Obviously, if you prefer, you can send in more so that you won't owe with the return, but paying 90% will avoid any penalties.

Start now to get ready for filing income tax

Dear Action Line: What information and records should I collect now before going to do my taxes? I always show up at the tax filer's office under-prepared. — R.T., Tulsa.

{LR} Third Phase Stock no. 1093 and 1099 departed from Tin Fu and arrived Tin Yat

Question: filled w-4 on new job in nov. 07 instead of w-2 for taxes they sent 1099 misc how do i handle this?

how can i get a company to take out taxes on paychecks. since i filled out a w-4 in nov. 07 it is now the end of feb.08 and they still are not pulling taxes and have sent me a 1099-misc now i have to pay all taxes including self employment taxes. how should i handle this

Answer: Tell them that they screwed up. They need to send you a Form W-2, not a 1099. If they refuse to do so, file Form SS-8 wth the IRS to get a formal ruling on your employee status. Here's a link to that form: http://www.irs.gov/pub/irs-pdf/fss8.pdf You may wish to let them know that you will be filing this with the IRS. That alone may be enough to force their hand.

If this goes in your favor -- and it probably will, especially as they had you file a Form W-4 -- you'll still have to pay the taxes on the income but you will pay less than if you were self-employed which is what the 1099 implies.

Don't delay on the SS-8 filing. It can take several weeks to process and complete the investigation. You still need to file your tax return by April 15 so there's no time to waste now.

Here's what's now needed for a driver's license

Applicants seeking a new or renewed Florida driver's license should assemble documentation before going to Monroe County license offices.

Trailer - Going From W2 to 1099.MPG

Many people work on the side, even if they have full time jobs because they need extra money to pay bills. In this economy, there are more bills to pay than there are work to be found so people have to be creative and sometimes that means starting a business working at home, even when they do not know anything about starting a business. But, if you make money doing something on the side, you might have to pay self employment tax.

What is the definition of self employment?

According to the IRS’ definition of self employment, a self employed person is someone who:

• Carry on a trade or business as a sole proprietor,
• Are an independent contractor,
• Are a member of a partnership, or
• Are in business for yourself in any other way.

Examples of self employment

Self-employment can include work in addition to your regular full-time business activities, such as certain part-time work you do at home or in addition to your regular job.

What do I need to report to the IRS?

You must file a return if your gross income is at least as much as the filing requirement amount for your filing status and age. Also, you must file Form 1040 and Schedule SE (Form 1040), Self-Employment Tax, if:

• Your net earnings from self-employment (excluding church employee income) were $400 or more, or
• You had church employee income of $108.28 or more.

How do I know how much self employment tax I need to pay?

Use Schedule SE (Form 1040) to figure your self-employment tax. Self-employment tax is comparable to the social security and Medicare tax withheld from an employee’s wages. For more information about this tax, see Publication 334, Tax Guide for Small Business.

Question: Is there a program to pay self employment taxes online for free? Form 1099-MISC…?

Turbo Tax says I have to pay $29.95 for the basic program because the free program does not work with self-employment taxes. The IRS website makes you buy a program to fill in the forms because they won’t provide it for you? I don’t know it didn’t make any sense and I don’t want my information in a few different spots. Is there any program that I can file and send to the IRS all in one place, for free???

I’m brand new to doing taxes so thanks for the help…

Answer: You could print out the forms from the IRS web site fill them in and send the payment with the return. It would cost you 44cents for the stamp, so it would not be free.

Lake preservation board releases financial review

The Lake Allatoona Preservation Authority released a financial review Thursday that claims several discrepancies within the organization's financial records, maintained by former General Manager Ro...

Question: 1099 – Independant contractor?

Hi, Im gonna work for a UPS Store that is Franchise and they are hiring me as an independent contractor and they said they would give me a 1099 tax form instead of W2.

What are the good and the bad of being an I.C and doing taxes with a 1099 form? What would you recommend I do? Im used to just getting my taxes deducted as anyone who get a W2, so a 1099 is new.

Answer: um, will the work be in the store? doing the usual work of the store?

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if so -- find another job asap.

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what this looks like to me is the franchise owner trying to avoid liability for any injury you might sustain lifting boxes, etc. in his workplace, the associated disability insurance costs, and the unemployment taxes he usually has to pay on employee wages [6% of wages].

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to successfully be an independent contractor you actually have to be independent. you have to have sufficient freedom of action to determine your own methods and times, etc.

see IRS discussion at this link:

http://www.irs.gov/taxtopics/tc762.html

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an IC has to pay his own self-employment taxes [Social Security and Medicare], which amount to 15.3% times 0.9235 or 13.8525% of gross wages. One half of this amount would "normally" be paid by an employer if you were an employee.

an IC also has to file and pay estimated taxes quarterly instead of having taxes withheld by his employer and paid to the government.

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plus whatever the state involved requires.

You can file your return without 1099 forms

Still waiting on 1099 forms so you can file your return? Here's how to do your taxes without them.

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