What about deductions?
Posted By: Sandy Jay on 2007-08-14
In Reply to: I think you figure 30% should be untouched to pay your taxes. - But someone else needs to confirm this. NM
I also recently started working as an IC, for the first time. Besides setting aside part of my wages, is it true that at tax time I can lessen the tax bill quite a bit by taking a home office deduction, such as utilities, etc.? Do I pay separately into Social Security? Inquiring minds want to know.......Thanks!
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Deductions are still allowed
Even if you are on employee status, you can still take deductions for your at-home office. I didn't think so either until my accountant told me that absolutely, you still can. It isn't as much as if you are totally self employed, but there are still quite a few allowed. The best of both worlds is statutory employee. That means you do not pay both sides of the SS Tax but you still send in quarterlies. This way, you can take all deductions for your home office, etc. Hope this clarifies it a bit better.
Are you sure taking all available deductions?
x
You forgot to do some deductions - sm
like medical benefits, taxes, no pay for vacation or sick time, no rasies, etc. I got out of this field about a year ago but still visit this board. It amazes me how the same baloney is complained about for at least the 10 years I was an MT. Not everyone can type 200 lph no matter how long they've been typing. You have no idea how BAD it is for your health to sit for long periods of time. Glad you're happy with the position and I'm happy I'm out of it. Now I get bennies, vacation pay, don't have to work holidays and/or weekends and make about $16/hr.
Those things MTs pay for are tax deductions. And
dr. to you? DO you think it just magically appears in your PC? And who do you thing handles the disgruntled facilities, dictation-to-MT break-downs, and all the other irritating details that come with this business. It is not just work in, work out, cash the check.
Saw JLG hiring SE and IC. SE can take home office deductions, right? (sm)
Any other pros/cons about this or the company in general?
I'm an employee and can take home office deductions. You
have to have a $$ amount equal to a certain percentage of your income to be able to claim expenses if you are not an IC. I don't claim home office because it only made about a $50 difference in my report and I'd rather not claim it than worry about an audit since my office isn't 100% office use, my internet service isn't 100% work related, etc. HR Block does my taxes too.
Please excuse typo--I meant deductions
its getting late and I stacked wood all day. LOL!
But as work at home IC, deductions can often lower
x
I thought statutory could claim those same deductions? NM
Oh no. Also check to see if your tax deductions (fed, state, social security) were
nm
I am including all insurance deductions including nm
n
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