I pay taxes now and take ALL deductions
Posted By: I can. nm on 2007-08-13
In Reply to: Oh, so you don't pay taxes? - NM
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Are there any deductions for taxes on your paycheck?
nm
A good tax guy can help with taxes and give ideas on deductions. His fee is a
:}
You have your W2 showing very clearly those taxes were paid. MQ is responsible for those taxes
because you were a statutory employee. That is the responsibility of the employer to pay those just as though you were an employee.
deductions
The IRS has guidelines published for people who file quarterly. I've been doing this at home for 9 years now. Over the years the govt has sent me vouchers which I've ignored. This year, however I decided to pay quarterly to stay out of trouble. I know there are exceptions for filing quarterly if you have children but since I don't I didn't pay much attention when reading the info. However, I have heard of ICs who had their husbands take more out of their checks but the IRS penalized them anyways. Hope this info helps.
deductions
Well 2600 out of 15 K is about 15% to 20% and it depends on the sq foot that you have in your office. I use 20% and deduct 20%. You cannot deduct ALL of it as it is only the percentage of the house that you use. If you are a business, an IC and it is required that you need that occupational license it is deductible. I deduct my business license which is a percentage of my business -- would trade the $200. If we want to operate as a business and want the deductions that you have to be licensed as such and pay the necesssary fees. Can't have it both ways.
I had about 12K in deductions.
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deductions
I deduct and depreciate my house as I know I will live in it well after I retire and so won't have to worry about the depreciation move or when I die and my estate can well pay for it if it. But I deduct advertising, phone, health insurance, mileage, computer, supplies, depreciation of house, partial utilities, my internet, cell phone, etc. and it equals out to at least 15K a year. My mileage helps but if I were working outside in a hospital I would have that expense and no deduction so I don't mind. I also put aside 20% in my IRA which is a deduction. Most of these deductions I would have if I were not an MTSO-IC as I would still use internet, gas, house, utilities, etc. and would have more of a taxable income but someone is just holding my taxes for me and sending them in. But you have to think ahead to prepare. I go on vacation to places where there are seminars that I want to attend, etc. Again if you weren't an IC you would still have those expenses and they would not be deductible. It is just a shock because no one withheld for you during the year. You almost think and feel that your employer is actually paying those taxes for you and except for the 7.5 of SS they are just managing your money. So begin to manage yours now. If you have kids and give them allowances, you can say you are paying them for filing and be able to deduct up to 500 without doing a 1099. There are legitimate deductions out there but you gotta search for them. If you have your kids give out flyers, etc, pay them and deduct it. You give them money anyway. But I would not give up my house deduction/depreciation for anything as I know I will be here long after I retire. That is my long 2 cents worth. Patti
I need help with QA deductions..SM
It has been so long I don't remember the exact deductions and how it works. Could you please tell the very basic process for deductions and how it works. Specifically, how much is deducted for a word left out, the wrong medication dosage, no comma where there should be one, and when they type a word like has but it was supposed to be his.
I'd really appreciate it. Maybe someone knows a site that has this info. I couldn't find anything myself.
thanks.
deductions
Mileage for any travel pertaining to business, advertising, mailings, internet, phone, office, -- first couple of years I went to a CPA and then did on my own following his prior returns with Turbo Tax. They take you through it step by step. Anything you contribute to your SEP retirement, insurance, computer, desk. Get a good book or talk with a CPA. Have a separate check book for all payments to work related expenses. Even a couple thousand miles per year is a savings.
Deductions
Hello everyone. I know this has probably been discussed a million times and that there's probably information in the archives (which I plan to dig into), but I was wondering if anyone could, off the top of their head, guide me to a site or something that could specifically tell me what deductions I am able to take as an IC doing MT work for a national company? Thanking you in advance. Reb
Don't forget the tax deductions
Pleae keep all your receipts for hearing-aids/batteries, etc. and check with your tax preparer at year's end or before. I would think this would be deductible but worth asking about.
I only took the standard deductions
and it still happened to me. What I couldn't understand was that I was supposed to be in a less likely audit bracket because that year I was an employee, an IC and an SE. (they were trying to see if I met employee status on my SE account).
TAX question..deductions??sm
I am starting or trying to start my own business at home
but in order to do that I had to buy my own pc and use
it to take an online course at home in my spare time.
I work parttime for a national MT co. I want to deduct
the cost of the pc and the course from last year's income
which I earned as an SE (several W2s). Both the course
and the pc were bought in Dec. 05 using a small-business
credit card. I don't expect to finish the course for a few
months and only then will be able to "market" my new skill.
My question I guess is..when you purchase something by credit,
is it "totally deductible" in the year of purchase or do you
only deduct the payments in the year they occur? Thanks.
need some tips for tax deductions
I would really appreciate any tips I an get on tax deductions for at home employee.
Just keep deductions in mind.
I live in Alabama and out in the country. I count the miles I drive to the bank and to the post office, post office box dues, cell phone, extra phone line, internet, etc. As an employee I had to pay all these anyway, I just could not deduct them from my taxes.
Employee/IRS deductions
I have been claiming my home office for years as a deduction, which includes portion of my oil heat, telephone bills, DSL bill, computer, paper, pens, notebooks, etc, books, software, etc. I have been an employee and an independent contractor, and my accountant has always told me I could take these deductions, so I have with absolutely no problem. The rules for a home office is that the room you use needs to be for business, so I use a small bedroom just for my office, i.e. it cannot be a room you use for a bedroom and a home office. Hope this helps. 
What are some examples of deductions you use?
nm
Disagree, as an IC you can take those deductions
I'm an employee now, and though I still do write off home office and percentage of my bills it's nowhere near the amount I used to be able to write off as an IC. All those extras have to add up pretty high to get above your standard deduction to write them off as an employee.
Since when as an employee can you get deductions?
nm
Income after deductions.
Income after expenses is what you are given credit for making. If you grossed $40,000 and had $10,000 worth of expenses, you made $30,000. This is your taxable income and what is credited as your social security income.
Get a good tax guy. His fee is a write-off. He will tell you what you need to do & deductions you
;I
write offs/deductions for IC's??
Just wanting some ideas on what everyone uses as deductions. Im going to get hit hard this year and just seeing what everyone else does.
TIA,
To all ICs claiming huge deductions...(sm)
I just met with my accountant yesterday. I am so sick I cannot think straight. I asked alot of people before moving ahead with an IC position and leaving employee status. EVERYONE stated that the deductions you can write off are more than worth paying the extra SS taxes that you no longer have an employer to pay. I even saw several people specifically state they lowered their taxable income by $10,000 or more so the IC status was well worth the headache of paying the extra taxes.
Well, I would sure love to know how in the world you ladies come up with these deductions. The accountant said my total deductions for my home office came to about $2400. But then my SS taxes I owed ate up that plus about another $1500. Are those of you reaping in huge deductions working strictly via the internet? I have no gas, mileage, vehicle wear/tear deductions because I'm strictly internet based. But even with considering those deductions, if I had them, I still cannot see where in the world you all are coming out so much better. Someone please offer suggestions/comments....have I just completely screwed myself over here or do I need a new accountant?? 
My IC home office deductions came to only sm
$1100 because I own my house outright and, like you, have no real expenses because I work at home off the Internet. My health insurance premiums are low because it's lousy insurance.
People with high mortgages will have a higher deduction based on that. They may travel each day to get their work, etc. Every person's situation is different.
I think you did okay!
BTW, if anyone uses H&R Block, I strongly urge you to get the Peace of Mind benefit for $27. Mine came in handy for 2004 when the preparer made a big, big mistake caught by the IRS (I'm going to end up getting a refund of what the preparer said I owed in 2004!!!) This may be my last year with the blockheads, though. I should say I've gotten excellent service in the last 25 years, except for that one preparer last year and Block messing up on its own tax preparation.
Wasn't that 20K TAXABLE after all deductions? sm
I wouldn't mind making more than that and only having to pay taxes on 20K.
You worked, they paid. You took deductions.
x
Does anyone remember name of book for deductions
if you work at home, saw posted a few weeks ago, wrote down and have misplaced. Thanks.
Try googling "book for tax deductions" or
x
depends on income and esp deductions.
last year was my first as an IC, and i saved back money for taxes -- needed none of it.
Hidden business tax deductions?
Have any of you come up with some not well know deductions we can take on our taxes? As you all know, in transcription our overhead is very low and we get SOCKED on the self-employment tax.
I already do the percentage of house on taxes, utilities, phone, gabage, etc. Full on cell phone, meager supplies, meager mileage, internet. Might have gotten yard care deducted last year, I forget.
Let me know if any of you have other areas of deductions!!
Been an IC for 17 years now. Never had a problem with deductions; however, I also have a husband
and we file jointly with a schedule C. We do receive a large return, but that is because he has so much tax money taken out, because over overtime, etc. I guess I am just the lucky one with that.
My deductions come out to about 10K a year working as an IC.
But you get tons of deductions and write-offs.
x
My independance and deductions, making my tax load LESS,
x
As an IC when paying taxes, are SS and fed taxes sent SM
to the same place?
I guess they are focusing on people who take huge deductions which I really dont so maybe that is
why they dont audit me because basically there is nothing to audit since my deductions are about $600 a year which are payroll deducted for equipment. I watch with my deductions that everything can be well documented but I really only have health insurance now which before you couldnt take so that is it for me and that is easy to prove.
A good tax guy is worth his weight. He will help you find deductions and if any probs with IRS,
;+
THANK YOU! That is my point. She still pays taxes, her DH still pays taxes...
so who exactly is getting cheated? And just who are you talking about when you talk about whether it is "fair" or not. I don't give a crap how much taxes my neighbor pays. It's none of my business. And if I found out they were paying less in taxes than me, I would ask them how they heck are they doing it so I can do it too!
I just want ask, is it necessary to get personal and insult? You disagree with me, fine. But I've been called a liar, a cheat, a no-ingetrity thief, my intelligence has been insulted, and I have had my parenting skills questioned. That is a little over the top. If you cannot debate an issue without resulting to personal attacks, then YOU are the stunted one!
It is a very good thing that some of you work at home, ALONE! You are sorely lacking in people skills and diplomacy. Let me guess, when you worked in the office you were one of those girls who didn't like to share her desk, griped if someone dropped a crumb on your desk, and kept track of everyone's breaks, lunches, and line counts just so you could tattle to the supervisor! I've worked women like you, it was like working with kindergarteners. That's why I came home to work. Do us all a favor, looking in the mirror, count your wrinkles, and realize that this isn't high school anymore!
Not sure, I have deductions for federal income tax, SS tax, Medicare tax, and state income tax. ???
nm
I do pay taxes --- MOST DEFINITELY PAY TAXES
I also keep track of all of the write offs!!
Do you also pay your own taxes?
that means it works out to about $13 an hour.
Taxes
Do you think when you are working for someone else that "they pay your taxes?" We all pay our own taxes except for the additional 7.5% of SS as an IC you pay. And I will bet that as an IC/MTSO I pay a lot less taxes than you do and I make more than you do. I cannot understand the mentality of people that say "you pay your own taxes." Your employer just "holds your money and pays your taxes." I am just responsible enough to put the money aside and pay mine but as a IC/MTSO with all my deductions I pay on 20 to 25% of my gross and I am able to put aside $700 to $1000 per month in my retirement which is totally deductable. Your statement is totally incorrect.
IC - taxes
I am never sure whether to classify myself as an IC or small MTSO as I have my own accounts. But where I see a lot of the problem is that the doctors are not making as much as they used to, due to insurance company reimbursement, etc. They are trying to save every penny that they can just like we do. I keep my line charges probably quite low according to many standards but I make a a very good living and I cannot see charging the doctors 15 to 18 cents per line when I make very decent money at 11 to 12 cpl -- gross lines. I also get GREAT tax breaks and though I have to pay the other half of the SS self employment, I still bring home more of a dollar than working for someone else. I have also found it hard to find anybody that will subcontract to me that is truly dedicated and will work hard. (I pay 8 to 9 cents per gross line and I deliver tapes and do all the printing, pick ups and deliveries) I know that kids get sick, there are football games, etc. but this is still a job and you gotta put it first sometimes. It is hard to find anyone that will work the TAT of 20 to 24 hours by the time I get the tapes to them. Then that leaves the burden on me. So I mostly stick to my accounts that bring me in $50 to $55 per year (and this gives me my benefits) and have turned down accounts because I don't want the hassle of the IC's to me and they could be going overseas right now. But I think that the insurance companies are behind this more than the docs. When your MRI is interpreted over in India -- do you get a break on the interpretation -- no but the insurance company gets a break on what they pay out so who pockets it????
My thoughts and I am sure I will get a lot of disgreements but that is okay we are all entitled to our thoughts. Oh yea for this amount of money I do work 28 to 32 to hours per week-- just quit an in house part-time job as they wanted me at least 24 hours now, started out at 10 to 12 but the docs found out that they could make more money paying me to transcribe their tapes than to type their own notes in the EMR's even with templates. So we will be around for a while. Oh yea if I would have kept on with both jobs would have easily made $65 K but working 50 hours a week was getting to be a bit much.
Patti
IC taxes
One suggestion that I have for all of you that are questioning IC taxes is to look at your past tax refunds when you were an employee and see what percentage was withheld and do about the same. Yes there is that extra 7.5 for SS but it is also a deduction and you can look to find 7.5% of your pay as a deduction whether it be in the form of your own retirement fund, etc. When I saw that I was paying so much to the IRS, I decided that if I could afford that I could start my own retirement fund and did it. I now contribute close to $1000 to it per month. So go online, get an old copy of Turbo Tax and run off the schedule C's and see what deductions can be taken for a small business and then see what you can do to save in taxes. Look at your old tax returns and if you are married have your husband over withold if you can't do it yourself. You are not paying that much more when you work for yourself you are just in charge of paying them yourself and not allowing someone else to hold it out from your check. But look at old returns, plan, plan and plan. When you look at your net vs your gross that will tell you what percentage your employer is holding out. Either as an employee or an IC we all pay our "OWN" taxes but as an employee someone just does it for you. Good luck to all of you. Patti
TAXES~~
You get to deduct sooooo much, part of your housing, utilities, any supplies such as printer paper. Last year I made about 40,000 and once the deductions were complete, it was right at about 8000 (have kids to deduct of course so that helped)
taxes
I live in Alabama and have always been employed in Georgia. Other than the time I was an IC, we always filed both Alabama and Georgia tax, whether I did the work at home or not. My husband works in Alabama. The amount of the tax always pretty much balanced out. In fact, I usually got a refund from both states, just more for one than the other. As an IC, I only file an Alabama return, as that is where my "home business" is located, no matter where my "clients" are.
Taxes
If you are talking about tax deduction the answer is no. If you are an employee and the company is taking out your taxes, etc. you are not considered an independent contractor. If you are SELF-EMPLOYEED...then the answer would be yes.
Taxes
Maybe they do that because they don't have to pay SS, or withhold any taxes for them since they don't live here. Maybe we need to put the bug into the government's ear that they are losing out on a lot of money here by allowing them to do this and you know how the government loves money. Just a thought.
IC and taxes
Is it a pain to do taxes when you are an IC? What do you all do?
IC taxes
Go here: https://www.eftpssouth.com/Eftps/
This is for federal taxes and you can pay on a weekly, daily, monthly, etc basis. As far as expenses deductible, you really need to do some research - you can deduct all expenses related to the running of your business. Best thing to do is have a room in the home/apt totally devoted to work and you can then take that % of home as a deduction. You obviously know very little about this stuff or you wouldn't ask that question. I would suggest getting the IRS instruction booklet on home office and the one on business expenses and reading it thru thoroughly. If you are not good at this stuff, then hire someone to do your first year and learn.
IC taxes
Will do that. Thanks for your input.
taxes
They are right in that the SS is 15.7% but remember when you were working for someone they held out 7.5% from your check. Look back at your checks as an employee and see what was held out -- the only diference from being an IC is that you have to be responsible to pay the taxes and not have someone withold them for you. Also look to see what deductions you have, take those off and you pay 15.whatever of that amount in SS. It all depends on what you are making. I start out with 45K+ and pay SS on about 15K. But I have a retirement fund that I am contributing to and that takes a lot off. But if you look at your paycheck as an employee you will see that 20 to 25% is being taken out of your check and you ARE paying those, someone just makes sure it is deducted. If you husband is working as an employee (my ex-was) I had him hold out as single none and we always got something back. Either way as an employee or an an IC -- we allpay it in the end.
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