Taxes, SS, fed and state, how do I sm
Posted By: new IC on 2006-12-21
In Reply to:
figure out how much to set back from my pay in order to pay the required taxes? Any websites out there to help me figure this out? TIA
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
What do you mean? They pay/deduct all but state taxes?
.
Yeah, really. Why should we pay state taxes
in the company's state as well as our residence state? That's double taxation. Although, the way I read it was that it was for people who go into the office part of the time. True telecommuters. Most of us don't.
not really, state taxes are not the problem here-sm
it's the property taxes that are out of control
I did not pay state taxes last year...sm
and wanting to get them paid now ASAP so it will not delay my tax return now. Does anyone know how the quickest way I can do this and get credit so as to not mess up the timing of my tax return. It was only like $130.00 but we have had such financial hardship this past year that that was hard to come up with at times. I was wanting to do Turbo Tax like I have for the past few years. Any ideas? Thanks!
The only tax I have to save as an SE is state tax. Other taxes are withheld by company
xx
Telecommuters being asked to pay taxes for home state of
By TOM HERMAN and RACHEL EMMA SILVERMAN
Staff Reporters of THE WALL STREET JOURNAL
November 1, 2005
A move by the Supreme Court means that many telecommuters could ultimately face higher income-tax bills.
The nation's highest court yesterday declined to hear an appeal by a Tennessee man who telecommuted to New York and was charged by that state for taxes on all his income. Because the Supreme Court won't review his appeal, New York's decision stands.
Many telecommuters could face higher state income-tax bills if other states are emboldened by New York's success and enact similar rules that tax out-of-state telecommuters. Some members of Congress already have introduced legislation to protect telecommuters from such taxes.
Some 9.9 million people work at home full- or part-time for employers other than themselves, according to the Telework Advisory Group at WorldatWork, an association for human-resources professionals. As telecommuting has become increasingly popular in recent years -- and as higher gas prices make commuting even more expensive -- millions of people are working in one state for employers in other states. Tax issues may arise over which state or states can tax a worker's income.
New York, a high-tax state that's home to many large corporations, has pursued out-of-state telecommuters aggressively. "By its silence, the Supreme Court permits other states to do the same," says Nicole Belson Goluboff, an attorney who has written extensively on telecommuting law. "Any state might find this attractive and go ahead and start taxing nonresidents."
A handful of other states, including Pennsylvania and Nebraska, already have rules similar to New York's.
The case at issue involved Thomas Huckaby, a computer specialist who lives in Nashville. Earlier this year, New York's highest court, in a 4-3 decision, said Mr. Huckaby owed New York taxes on all of his income from a New York employer -- even though Mr. Huckaby had spent only about 25% of his time in New York and the other 75% in Tennessee.
The Huckaby case involved a New York State tax-department rule affecting people who live in another state, work for a New York employer and occasionally come to New York on business. That rule says income from work performed out of state is taxable by New York unless it's done for the employer's "necessity." Mr. Huckaby acknowledged his employer didn't require him to work in Tennessee, says Peter L. Faber, a New York lawyer who represented him. Mr. Faber argued New York's "convenience" test violated state law and the U.S. Constitution by taxing income earned out of state.
The New York rule could have wide-ranging implications. It may affect not only people like Mr. Huckaby, but also others who live in neighboring states, work in New York and choose to do some of their work at home. "We need federal legislation" to protect both types of workers, Ms. Goluboff says.
Consider the case of Edward A. Zelinsky, a law-school professor who lives in New Haven, Conn., and teaches at a law school in New York City. He says New York taxed him on all his law-school wages even though he spent 60% of his time at home doing research, writing, and grading exams and papers. Prof. Zelinsky lost his case in New York's highest court, and the U.S. Supreme Court declined to review the decision in 2004.
New York adopted its rule many years ago. Officials were concerned about commuters who lived in a neighboring state, such as Connecticut, and brought work home on weekends, worked on Saturday and Sunday, and then claimed to owe New York tax on only five-sevenths of their income, instead of 100%.
Telecommuters might get a reprieve if Congress passes proposed legislation called the Telecommuter Tax Fairness Act. The bill, which seeks to prevent states from collecting taxes from employees for work performed outside that state, was sponsored by Democratic Sen. Christopher Dodd and Republican Rep. Christopher Shays, both from Connecticut. Under the bill, workers would have to be physically present and working in a state for that state to be allowed to collect income tax from employees.
Sen. Dodd said yesterday that the court's move "underscores the need" to take legislative action.
The Supreme Court announcement is not a decision on the case's merits. The lower-court ruling stands and could, of course, lead other states to enact such rules. But it doesn't mean that the court has decided the issue or that such laws will be upheld if appealed in the future. Copyright © 2005 Dow Jones & Company, Inc. All Rights Reserved.
right, taxes are paid in the state where you earn 'em...
since you work at home, you earned your wages in your state and pay them to your state.
1 ck to feds, 1 ck to state, divide last year's taxes into 4 payments...
xx
Buy local. The local stores pay taxes to support your city and state. (SM)
Using online and catalogues does nothing to promote the local economy. We complain about outsourcing and about the big companies gobbling up all the work so the jobs at local hospitals are gone, yet we do the same thing when we buy on ebay, catalog, and these web sites that may be located any place in the world as their primary business location.
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.
Work for a company in a state that has no state income tax
I think there are 3 or 4 out there (Florida, Texas, and a few others.) Then you really avoid the tax situation.
Name a state and put every company in that state under suspicion.
Tell what the first letter of the company is and every company with that initial will be suspect. I would imagine that everyone who works for that company has received an inquiry from department of labor, so they would all be aware of it.
Why do we persist in setting up companies to be torn down when there is no reason for it. If a company is suspect, then give the name of the company, don't give big hints that cover at least 5 companies, 4 of which may be the best companies to work for, but fall into the category of an alphabetical letter, etc.
Contact your local BBB in your state and in their state if different from yours.
xx
Not mandatory, as you state it depends on your state - sm
or county. Where I am I do not need it; though if I was cutting grass or landscaping I would where I live, makes no sense to me as I am providing a service, but very happy I don't have to have one. We pay personal property tax here and I would have to list all my business related equipment and pay taxes on it every year I was in business. So until I am told otherwise by my county, I will not be getting a business license.
As an IC when paying taxes, are SS and fed taxes sent SM
to the same place?
varies from state to state...nm
x
deluded are ye? state by state..sm
http://www.washingtonpost.com/wp-dyn/content/article/2006/05/15/AR2006051501201.html
http://www.votefraud.org/vote_fraud_articles_by_state.htm#VO
http://www.votefraud.org/
Some people just CHOOSE to live in DE NILE (DENIAL) and we all see you are ONE OF THOSE.
Some of us CHOOSE to go through life as a REALISTS!
  
Things are different from state to state, but I think
you probably could, if you are actually "laid off." You would have to get a letter from your surgeon regarding your temporary disability status and take to the unemployment office and to Medicaid....but you know how Medicaid works, 1.5 pennies over the income limit, you don't get it. But, as I stated, laws differ from state to state, so you would have to inquire or go on their websites and see what they will approve and what they will not.
If not in your state, try filing in THEIR state. Then they
nm
Each state has different laws. Where I live, if I have clients in the same state I live in, yes I ne
have clients from another state, no I do not need a license. Every state is different. I checked with my attorney and the State Business offices.
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
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
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.
|
