You worked, they paid. You took deductions.
Posted By: Nothing illegal here. Check next time. nm on 2007-10-06
In Reply to: Need help with former IC vs Employee issue - OldFLMT
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I worked as one, too. It paid my bills. Barely.
I hated that job because I could so totally empathize with the people I was collecting from. Plus, we had to be real hardnoses. The thing is that our "numbers" were tied to our bonuses. The more you collected, the more money you made. I lasted 9 months and received two raises and promotions to keep me there before finally finding another job. By that time, I had developed sleeping problems and an ulcer and started smoking again.
For QA consulting I'm paid per hour; QA instructing (college) paid salary, QA editing paid per li
I am an IC and work for two different MTSOs as well as instruct at a business college.
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.
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.
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.
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
:}
if mt paid 9, editor paid 4 or 5...how can company charge 14 and make it..sm
I know the going rate in our area is 14 cents per line. As MTs most companies here pay us 8 or 9 cents a line. Now add in the Editor rate at 4 or 5 per line..you are paying OUT more than you can charge a line. How would companies stay in biz?
Unless all work is sent by the company overseas at pennies per line, this would not pay for a company.
just curious how this works out
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,
;+
But how much are the US EDs gonna be paid? Typically this work is paid at 2-3 cpl. nm
:+
You don't get paid an hourly rate you get paid by line - sm
so because of how you are paid (not an hourly rate) you don't get OT, especially if you are an IC.
I would move on. I think it is so unfair not to be paid for spaces! I think we should get paid
per keystroke, but that'll never happen. I just think that these national companies are going to keep finding ways to cheat us. I found a job working for a hospital as an employee, paid hourly plus incentive, and they let us expand everything! Somebody's gonna have to kill me to make me give up this job. I will never go back to the national's again.
I feel for you though. I know that for us MTs those good jobs are few and far between and some have little choice but to work for the nationals. I just happened to luck into the job I have now. I just applied at the right time.
Good luck to you whatever you decide.
If those companies paid a fair wage, and paid more
all came out equal, people wouldn't feel the need to try to make up the deficit by going for the good stuff. I actually prefer the harder, juicier reports. But I can't make a living doing only that, because the pay is not commensurate with the difficulty. So even though I prefer not to, sometimes I have to pick up some of the easier, more boring 'line-o-matic' reports just to make ends meet. Tell your MTSO to make it work their while, and MTs will stop taking all the easy work away that you obviously would prefer to keep for yourself.
You wont show UE being paid because it is employer paid -
the employee will never have to pay this.
Every company is different -- I worked FT for one as an employee but worked a split shift - sm
So I never took breaks. I would work 5 hours, break for about 4 hours then do another 3. Another company I worked for did not care what hours you worked (IC) but wanted a min. amount of work each day, 500 for PT and 1000 for FT-- BUT they paid you by how many lines an hour you put out, the higher the lph the higher up the scale you made per line in pay; they have since changed everyone to a flat rate with incentive. But bottom line, if you are an IC it does not matter what hours you work, though many ask for a schedule and ask you to stick to it, they just want you to meet line requirements daily, i.e. 1000 per day, 1200 per day, whatever it is.
I got up early, worked during naps, and worked when DH got home.
You have to be disciplined to make yourself work when baby is napping instead of maybe watching TV or doing housework, etc.
I might also go the route of having a teen come into your home, or either trying a mother's morning out program at a local church/daycare. I've been home since my youngest was born and he has never been in all-day daycare, but I did have him in a mother's morning out program 15 hours a week at a local church. It didn't help a lot with my work schedule because I had an older son in school and was a room mom and tutored other kids, but that might be an option. The only problem with the mother's morning out program is they are around other kids and tend to pick up every germ. I finally took my DS out of the program because he stayed sick. You were supposed to keep them off if they had green nasal discharge and I did, but no one else did. Every time I got him well after 2 to 3 days back he would be sick again. Other than that it was very good for him because he would not have had a chance to be around kids his age otherwise.
What you "should" be paid and what you "are" paid
sadly are two very different things. Good luck on demanding more..because someone else will just come along and take it for what they offer and they know it. 
10$ late if invoice is not paid within 10 days. At day 15 work stops until invoice is paid. Hardly
xx
Not sure, I have deductions for federal income tax, SS tax, Medicare tax, and state income tax. ???
nm
I worked on that system when I worked there...
The thing that chapped my hide about that TWS was that they designed it so that all the headers of each section of the report were canned and thus you were not paid for them, even though you had to take your hand off the keyboard and mouse down a list of paragraph headers to chose the one you needed. Just racking up more profits for themselves. Ticks me off.
that is what is being worked out, and has been worked on for the last few years already...only
why are we just hearing this now? I know voice recog has been around, but this is entirely different. This will also make coding and billing obsolete.
Don't know why, but it just bothers me that one of our 'own' is the one pushing this...and she is also connected with AAMT. Do they support this, and if so, what is their advice I wonder to the MT?
Perhaps that is one question for their website (I do not subscribe to their mag or credentials...)
Thanks, for the input!
getting paid
In a hospital setting, doctors get paid when caring for patients that arent their own, patients admitted whose care they take over. I dont think it is wrong. They need a pay check too and the time they spend is taking time away from their office patients.
Wonder if they get paid by the name?
nm
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