Wasn't that 20K TAXABLE after all deductions? sm
Posted By: Passing Thru on 2006-07-15
In Reply to: Yes, indeed. - Paula
I wouldn't mind making more than that and only having to pay taxes on 20K.
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yep, it was more like 55K gross, 20K taxable.
xx
20K is my taxable income
Boy you guys do not know how to read financial statements or know the first thing about running your own business. That is my taxable income. I start out about 55K and end up paying taxes on only 20K if that. I support myself in a very unique lifestyle living on a floating home. I contribute 15K to a my own retirement fund. I have NO debt. And I probably spend no more on gas than if I were working at a hospital but I get to deduct the mileage which is a good deduction. The only outlay that I have that I would not have if I were working for someone else is supplies -- sticky paper and toner. I have looked at employee versus IC or business owner and I am so much more ahead financially doing it this way. A lot more usable income. And I only work 30 hours per week even with deliveries and pick-ups. So before you speak, learn how to realize what is net, gross and taxable income.
Not even a done deal yet. I doubt it would be considered taxable
I don't recall having to report the last refund as taxable income.
As for EIC, it's for people that make under a certain amount. I don't understand why anyone would take that away from the working parents who don't earn that much. A tax credit isn't like they are milking Welfare, it's just a deduction from their wages to offset the fact that they make a whole lot less than other people. Correct me if I'm wrong, but that's how it was when I used it. I worked like a dog but my pay wasn't near enough to raise children so that credit was a nice break. While I'm sure there are those that take advantage, it is most unfair to judge or admonish the people who need it based on the few who abuse the system.
This is a big problem with America these days. Way too much generalization and people trying to stick their nose in other people's business where it doesn't belong. Many people who get those credits really need them. If you see someone abusing the system, report it to the proper authorities. If you don't like that someone who makes less than you gets EIC, write your politicians and lobby for the change. Otherwise, live and let live.
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.
.
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.
I pay taxes now and take ALL deductions
x
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,
Are there any deductions for taxes on your paycheck?
nm
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.
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
A good tax guy can help with taxes and give ideas on deductions. His fee is a
:}
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,
;+
Not sure, I have deductions for federal income tax, SS tax, Medicare tax, and state income tax. ???
nm
If it really isn't you or wasn't you...
I would check out the posts made by MQMT under "Straw that broke the camel's back". Maybe I'm seeing double....who knows anymore at this stage of the game!! Have a good day.
By the way, I did have a complete burnout on MTing after about 30 years so took a two year break; Glad I'm back now but the break was a "good thing"!!
Maybe the CEO wasn't (sm)
addressing students who were kicked back in their easy chair with time to surf the internet. Maybe he only meant it for students that had evacuated and would eventually find their way to a computer where they could go online and contact the school, since they didn't have the phone number in their pocket when they ran.
I know it wasn't
my post. I just get tired of people who seem to be looking for a reason to jump all over some one. You are the one who needs to take a chill pill. Unlike you, I am perfectly calm.
Actually it was. I wasn't trying to
say your kids are perfect angles or be a smart ass. Maybe I should have worded that better. Sometimes you/we come across different in emails, internet or whatever then what you/we are really trying to say. Maybe we all did. Enough said.
No, that wasn't one of them.
You mentioned below that it was a local company. I'd give it a try. If you find out down the road that it's horrible, you can quit. Otherwise, you might miss out on a good thing because some person on an Internet message board had a bad experience with some other company. We are all seeking different things in relation to work. Don't let our experiences scare you. One employer, one MTSO or one account doesn't set the standard for the entire industry.
Thanks, wasn't sure how I was going to keep up with it
moving that fast. Looking forward to next week and trying to sort it all out.
I said I wasn't going to do that
so I'm not sure why you felt the need to be arbitratary but that's your choice.
No, I wasn't.
And you pelase stop with your diva/gangsta/pushy tone? It got old the first time you played it for us, and it isn't giving any credence to your stance.
No, wasn't them. nm
nm
Thank you all for the help. I wasn't able to
recover but at least know where the folder is so I can back it up in the future.
See, I wasn't going to say it because it was
nm
When did I say that I wasn't doing it?
I never said that. I don't get all of his reports. I work for a national. I am not the only MT on the account. This was the first I had heard him request this and I did what he asked. Had I known beforehand I would have done it before. Someone else dropped the ball on that. I let my supervisor and QA know about his request. Apparently the MT who got the request originally did not do that.
Thank you, I wasn't looking at it that way.
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