Taxes
Posted By: Pat on 2006-02-02
In Reply to:
I know for an IC we have to fill out Schedule C and Form 8829 for expenses. But do we HAVE to fill out Part III, depreciation of the house? I only made some $1400 (working very, very, very contingent) so why would I need to do that? I had a lot of expenses, though, to write off as I had computer repair, monitor, foot pedal, etc. Help
Complete Discussion Below:  marks the location of current message within thread
The messages you are viewing
are archived/old.
To view latest messages and participate in discussions, select
the boards given in left menu
Other related messages found in our database
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.
As an IC when paying taxes, are SS and fed taxes sent SM
to the same place?
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!
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.
IC Taxes??
I have recently taken a job as an IC, this is my first IC position and I was wondering if any of you wise folks could give me some advise regarding income taxes and such.
In the past I have always used TaxCut or TurboTax for my income taxes. Is there a similar product for the 'self employed' that is as helpful? Does anyone have any experience with any of these?
Also, MUST I pre-pay taxes and/or SSI quarterly? I ALWAYS get all my taxes I pay in back in a refund and my income is essentially the same as my previous employment.
Thanks!
You actually mean net? After taxes? nm
x
taxes
Haven't started mine, but for the first time in ages, I have only one 1099! Should be pretty simple.
TAXES.
I am new to this IC tax stuff. This is my first year doing this, and I have no idea what I am in for at tax time. I only work part time, and I bring in about 350 every two weeks. Should I be paying in quarterly? Any tips for tax time? Thanks in advance for your help.
Taxes as IC
Are you married -- did you have your husband over withold to cover your taxes? Do you have receipts for any programs, computer, etc. that you bought? Do you use part of your house solely for your business? Do you use an internet service for your business, phone? You need to buy Turbo Tax or talk to an accountant if you are unsure as to what to claim and not claim. But anything that pertains to your business is deductible. Turbo Tax takes you through it step by step. Mileage to the bank to deposit, buy supplies, any business related errand is deductile. You will have to pay 15% on your NET income that is why you want as many deductions as you can get. Again, if you are married have your hubbie over withhold even if it is a certain amount of one less deduction if you have kids to cover your taxes. When you see what you owe -- if you do this year you can then divide that by how may pay periods and have him withold that much. But dig for those deductions. E-mail me with any questions.
Taxes (sm)
We used to pay a CPA at the end of the year to do our taxes, claimed all our exemptions, equipment costs, office costs (if applicable), phone, etc.,on a Sched. C for me and my husband's W2, then we both were IC's and he did two Sched. C's and all he did was give us 4 slips for next year's "estimated" tax to send in a check quarterly. If we found we were making more, we were to call him and he would adjust our quarterly payment to more, it usually worked out. If you're an employee, then it will be different, I was self-employed, helped to keep track of all expenses, postage, phone, books, etc., anything to do with my profession. Perhaps you are not an IC but this worked for us, if you have kids, then the acct. would take this into consideration. Perhaps you'll get a "surprise" refund for the "kiddos." Good Luck! Have a "fruitful" year!
Taxes
In 18 years of filing as an IC and owner, have never paid quarterly while married. Always had my husband over withold and even some years had to pay a little (under $500) but they have yet to question (knock on wood). But my income and write-offs always stay about the same, every third year a new computer, then the next a printer, then some transcribers, etc. The government does not care who or where the tax money comes from when filing as a joint return as long as they get it. You are just combining your income as if each of you had a job but you are an I/C instead and don't have someone withholding from your earnings.. I always filed electronically and had my refund within a week. Heck you can borrow the money to pay your taxes and they don't care as long as they get paid.
Patti
taxes
Can anyone give me a list of things that I am able to deduct for working at home. I am new at working at home and need some specifics.
Thank you!!
taxes
Unless you have a special reason for needing to pay H&R Block to do your taxes, you can do free file with H&R Block online. You access it through www.irs.gov. A lot of people don't know that there are companies out there where you can electronically file for free. Most of them don't include free state filings, but my daughter found one last year that did both of hers for free. It isn't a program that is widely publicized. I only found out about it through a tax newsletter that I subscribe to. We have two different businesses this year, though, and I'm not sure I'm going to have the knowledge to do everything, but I'm still going to give it a try. They walk you step by step through the whole process. You answer questions at the beginning and it brings up forms and steps in the order you need to file. It's worth looking into. Actually the IRS has a lot of helpful information regarding filing. Tax Hotline calls it "surprisingly good," and said it's recently been redesigned to make it even more useful. Why pay somebody to do something you can do yourself?
IC - taxes, etc.
Hi, I'm an IC for a company and am considered self-employed. I am having H&R do mine for the first time. I am going to check into deductions for expenses. I am hoping for the best.
Taxes
I have used H&R Block in the past about 4 years ago I think. It was a lot more expensive than I thought it would be, around $200 I think, but I had some extra stuff to do because of some divorce issues and they charged by every form they have to do. But on the other hand it was worth it because it was my first year as IC and after that I just followed what they had done to do the next years' taxes using TaxCut myself.
Taxes...
You pay the taxes for the state where you reside. You don't have to pay state taxes for the state your company is physically located in. You should receive a 1099 from your client and that is what you use to file your taxes. It may be best to have an accountant do your taxes for you this year just so you get answers and feel confident enough to do your own. Good luck 
taxes
Hi, Pat. I have also been doing a lot of research on home office deductions since this is the first year I have had a mortgage instead of just renting. It is my understanding that if you deduct for portion of your home mortgage interests and taxes for business office that you also have to do the depreciation part too. If you don't fill it in, it will be still be counted in the end as if you did anyway when you sell your home since you took the mortgage deduction and depreciation goes along with it. You wouldn't have to pay taxes on profit of the sale on the business portion of your home since they changed that in the last few years (I think it is something like up to 250,000 profit per single filer) but you would have to pay taxes on the depreciation even if you didn't claim it. Hope this makes some sense. I think it's form 505 on IRS website that has the info. It's all really confusing. Was much simpler when I was renting!!
Taxes again!
Thanks so much for all the good info on taxes! You "guys" are great! What a wonderful source of information over the years on everything--not just transcription. Thanks again all who answered me. You have been a great help.
What % of pay should be set aside to pay taxes for an IC?
Can somebody please tell me what percentage of your pay needs to be set aside for paying your taxes if you are an independent contractor? I certainly appreciate your help.
IC taxes
I agree that 30% should cover, however, I took 30% out of each check this year and I ended up overpaying by a couple thousand. This year I'm taking a bit less out and putting some toward state tax. Also, you can call the IRS. They will spend time with you trying to figure out what to pay quarterly.
taxes
If you had another employee job that made you $4000 gross you still would have added that onto what you made from the other job for a combined income. Also since taxes would have been withheld from that $4000 -- about 25 to 30% you would have not had the use of the entire $4000 just $2800 to $3200 and that equals out to what happened. When you are an employee you still have to pay taxes, someone is just holding them for you and sending them in. So you are not paying anything "extra" other than the 7.5% and you should have been able to come up with at least that in deductions. So it equals out you just had the use of the money and chose not to save part of it for that vacation.
TAXES...
I know that you can use a computer as a deduction for your business, but what happens if my husband wants to build me one instead of buying it in one piece? Would I still get to write it off? He is a big computer person (not for a living) and wants to build my next one instead. He builds peoples computers quite often for them. Will I just keep all the receipts and subtract that or am I better off to buy one from Dell or Gateway or etc?
Thanks for any advise!
Taxes if you are an IC
New to this site, but I hope that you guys can help me out. Last August, I was dropped from employee status to IC. I don't know of anyone else in my area that works from home as I do so I have a question for any of you that are IC's. When you file taxes you get a 1099 form from the work site, do you keep out money in a separate account for your taxes the following year or do you pay in throughout the year?
I know that the tax guy will tell me what we are supposed to do, but I was just trying to get a better idea about what other people in my position do. Thanks for any responses.
Taxes
Come on you guys, pull out your old tax forms, 1040 and look at them. There is a line for social security (self employment tax) on the front and then on the back where you add in your personal income tax they will also be added in for a TOTAL tax due. They both get paid to the Federal government in the same check and the government will then separate what goes to where according to the figures on your form. They are different taxes but all are paid to the Federal government and are paid in the same check and when you figure out your estimated taxes you will estimate for ALL taxes and send in ONE check. Just look at your past year's taxes. Your state is paid differently but the social security/self employment and personal taxes are all paid together. And if you are married, if your spouse over withholds to cover your taxes -- the government does not care where the money comes from as long as the taxes are paid that you owe as a married couple. People borrow to pay their taxes as the government does not care they just want the taxes paid.
taxes
The first thing you should do is go to the IRS website and see if you are exempt from paying your taxes quarterly. If not, you should really file quarterly, even tho you may still get a return filing joint with your husband. You will eventually be penalized if you don't. Also, I agree with the other person who answered...33% is a good figure to hold out. I held out 30% this past year and had fewer write-offs and it still wasn't enough. Darned FICA-as an IC you get to pay it ALL.
Taxes
I'm going to take the big jump and try Turbo Tax. Hopefully, it will be correct. I had figured I would get back some $$ but Turbo Tax figured MUCH more! I'm leery about the minus amount from my total gross because I didn't figure my business expenses that way. Their so-called summary page doesn't show all the figures to I can determine exactly how they came up with the final figures. Anyone else have good luck with Turbo Tax? Should I go ahead and take the plunge and hopefully IRS won't audit me
sorry, would be 5.5-7.5 with IC taxes...sm
remember, the ONLY difference in taxes is an independent contractor is self employed and pays the other 7.5% of the SS. BUT has deductions. Don't listen to her. She doesn't know what she is talking about.
Taxes
Look back and see if they gave you a 1099 or a W-2 and if they withheld SS and if they withheld it then you are an employee and they should have been paying the other half. I once got a tax owing bill stating that I owed close to $30,000 and when I called they had inverted some of the SSN and it should have gone to someone else. I said I would like to make enough to owe that much. But they would not send out a letter stating that they were wrong or had put in an incorrect SSN and that I did not owe but I was to forget about it as it was corrected. Just be sure to get a name. But again, go back on your taxes and W-2/1099 forms and see what is there.
Why would you not pay taxes? nm
IC - taxes
It all depends on what you are making and what your deductions are. You can do an estimate on what your bottom line "net" income will be after all your deductions and know that you will have to pay 15% on that to SS. If you will net $20 K then you will need at least 3K into the IRS for that. If you are married it can be a little more confusing as it can also depend on what your husband has withheld, etc. and if you are married just have him withhold at a lower rate and that could cover your taxes. So keep receipts of all your expenses, if you are going to depreciate your office in your house, any repairs made to the office/house, phones, software, computer, house payments, property taxes, mileage to the bank, supplies, etc. that has to deal with your IC position and take those expenses off of what you will be making and that should be your net income. It can become confusing and so it may be worthwhile to see an accountant but you will have to have all the information prior to seeing him, last years tax forms if you were married, all the deductions, etc. So you can do a lot of it yourself but sometimes that first year you feel more confident by talking with an accountant and then you can get Turbo Tax and do it yourself. I always just had my husband with hold extra from his check and that covered us fine. Good luck. Set up a separate account for your business so it is easier to keep track of what you make and what you pay out for business. That way it does not mix in with your household finances. I just write a check to myself and re-deposit in my household checking account. But that way all my deposits and cheks for my business is not intermingled with my household stuff. Good luck, you will do fine. 
IC taxes
If you were an employee last year see what amount was withheld and whether or not you received a refund. Also if you were an employee from Jan to June see how much you had withheld. Don't know what deductions you have that you can use to get to your "net" income on which you base your FICA, Federal and if you have state. I have a lot of deductions and so pay less than 10% in total. Also if you are married have your husband increase his holdings if that is easier but it sounds like you at 25% you are headed in the right direction. In January buy Turbo Tax or one of the programs that has a schedule C and do a preliminary to see if you will have to do more before April 15th. All you are paying more when being an IC is the 7.5 FICA and you usually have half of that if not more per month in deductions.
Patti
Taxes
When I first started I went to a good tax accountant who set me up with what I could and could not deduct. I now do my taxes with Turbo Tax. Most of my stores/banks etc. are all on my pick up and delivery route and so I am able to deduct 90% of my mileage. My car gets good gas mileage and though I go through 2-3 tanks of gas per month counting my personal trips to church, family - who all live quite a ways away -- I can deduct the 300 miles per week that I put on my car. I also was set up for a good retirement fund deduction and I stick to this. Medical insurance. Phones are in company name. I plan on living in my home until the day I die and so we decided it would be okay to depreciate my house and I don't plan on selling it. Most of the time I do education/business trip combined with vacation. Advertising. Any improvement to house (roof, decking) is depreciated off at my percentage of house used for business. Again, go to a good tax CPA and talk with him. They are there but you just gotta look for them. I buy a new computer every 3 years, new printer, etc. Supplies. All these accounts are set up in business name so I can track everything and have it there for write offs. A lot of the time I take my Christmas bonus, put it aside and in January buy 95% of all supplies I will be needing for the next year - sticky paper, regular paper, toners, etc. and just stock it away. That way I don't have to save recepits all year long. Works for me. I have never been audited and went through a nasty divorce and had a few run-ins with IRS then and all my deductions were considered legitimate and no questions ever asked. Of course year to year my deductions stay about the same, less for mortgage, etc. Pay for some decent advice and then do it on your own. Since I would have been paying the IRS the money, I just put it away in a retirement fund and then pay them less. But I am very strict with this savings plan. Good luck. Patti
Taxes?
I was wondering if there is anybody out there that pays there federal taxes quarterly? I think it is called Estimated Tax for Individuals, form 1040-ES.
Anyways, I want to do that but don't know how to go about getting is started.
Thanks in advance!!
Taxes
How does this work....I am IC status and will be buying a computer this year...How much should I spend to be safe? How does that work on deductions...does that whole amount deduct off what you would be paying in at the end of the year...Sorry very dumb when it comes to taxes. Thanks all for your help!!
ICs and taxes
Yes, that would be a 1099.
Taxes
I'm starting with MDI and plan on putting away 25% depending on what I make. You can Google tax brackets and it will tell you how much tax should be taken out depending on what you make. You can break down the yearly amount to figure out how much you need to take out each payperiod according to how much you made that pay. That way, if you work a lot one payperiod and not the next, you can figure out how much to take out for each payperiod so you don't get screwed on taxes next year.
taxes
First - don't feel ripped off - you were ripped off.
Now - I am in the same boat as you - incoirpated ND liscensed for sales tax etc - I will not do my own taxes because I fear the Tax man lol. My sugeestion is when it gets complicated like this - do some homework and find a great CPA for your own - mine knows I am coming in organized and ready and I get a discount for the work I did. They are out there - some just starting like a newbie MT and will be grateful for a longterm account. Just make some calls - rather be safe than audited.
Taxes
Can anyone tell me what "business activity code" to use on Schedule C for MT?
Thanks.
Taxes
Social security taxes is included on your 1040 and all get mailed to same place.
|
