depends on income and esp deductions.
Posted By: sm on 2009-01-08
In Reply to: For any ICs - Tera
last year was my first as an IC, and i saved back money for taxes -- needed none of it.
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- For any ICs - Tera
- depends on income and esp deductions. - sm
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Not sure, I have deductions for federal income tax, SS tax, Medicare tax, and state income tax. ???
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.
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
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.
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
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,
;+
MT income
I am at #6, but have been an MT for 30+ years.
But for those who need FT income...sm
I can see how that could be a problem for some. It is my intention to get a PT job, and if I don't get enough work, find another to fill it out; then, who ever pays best for the best work and least hassle WINS. However, my DH is the primary wage earner around here. My income helps, but we don't require it to live.
income
I live in New York, have been doing MT for 15 years and during all of that time I have needed to work 50 to 70 hours a week. I started on working mostly from tapes. When the dictations started coming through the computer and I started using word expanders, income went way up. But so has my rent - used to be $750, now $1100. And my son eats a lot more at 14 than he used to! A few years ago I started working for 2 services for extra money... but now I couldn't get by without 2 jobs. The first job used to pay well, but with a combination of a new platform and VR, plus being transferred to a different account at a lesser line rate, I make thousands less from them than I used to. I am changing companies. Would love a 40 hour work week but don't think it's possible.
40,000 not low income
maybe with 10 children.. I know of one circumstance (in my state, and some others) where a person can make a decent amount of money (sky's not the limit, but 50,000 range is OK) and still get Medicaid. It's a program for working people with disabilities, whose medical expenses are extremely high and would not be covered by regular insurance - including services of home health aide and transportation to medical appointments, equipment, etc etc). I am on this program (which I was not told about by Medicaid workers, had to do my own research). So I am in the curious position of receiving government assistance (Medicaid only, not food stamps or disability payments) and working/paying taxes at the same time.
Likely the OP is not in this category.
Income Tax after Death
I have a friend whose mother passed away in March of this year. She was an IC and thus earned income right up until the time of her death. Is her daughter now responsible for filing an income tax return and/or paying taxes on this income? I know an accountant for her would be handy in this situation, but I thought I might get some opinions here as well. Thanks!!
Disagree - it is NET income
You pay your social security on your NET income not your gross, after all your deductions and look around you will find them. Also you are only paying 7.5% MORE than if you were an employee. Again, as an employee you have the convenience of someone controlling and withholding your income tax while as an IC you do it. I have more usable income as an IC than as an employee because of my deductions. If your husband is working have him take one less deduction or have them hold out a specific amount that will offset what you make, they will do that and that way you don't have to worry about paying quarterly taxes. The IRS doesn't care who pays as long as if you are filing jointly the tax has been paid.
He can't cut his income intentionally.. sm
It's written into the divorce decree (if you have a halfway decent attorney) that income cannot be reduced.. and even if it is.. the child support and other payments remain the same as ordered. Been there...and done that..
Monthy Income
I would like to know what short cuts "nm" is using in order to make $60K a year. Maybe that will help us all make more money. Thanks.
Yearly income
I have three 1099's here in front of me -- one for 24K, one for 13K, and one for 5K. My W2 one is for 14 almost 15K. I did work without 1099 in the amount of 3K. The reason that my average goes down on the IRS forms is that after all my business deductions -- which includes my health insurance and 401K and Self employed retirement fund, mileage, supplies, etc. it goes down to less than 20K. Believe me or not, but it is possible and I still have time to go on the boards. I do not work 60 to 70 hours per week.
I have my own accounts and my income
was around $38,000. That is around $3,100 a month. I work M-F and usually work 8-hour days, though there are times I need to put in an extra hour or two on the weekend or in the evening when the work is really coming in. If you work for someone else, that person is charging at least 3-4 cents per line over what they are paying you in order to turn a profit, so if you are making 7 cpl, you can bet they're charging at least 11 cpl, if not more. At 11 cpl, if you can achieve 1400 lines a day, that would be around $3000 a month. That would be 175 lines an hour and that is not an extraordinary amount for an experienced MT with Expanders and other production tools in place. I would venture a guess that most saying they make that much have their own accounts and those making less than that a month work for someone else.
Low income housing?
My sister is getting divorced and wants to move into this place that bills itself as "low income". They told her they would take 30% of her income. BTW, she is also an MT. She says she makes about $1350 a month, but has a van payment and various bills. I am asking on here because the place won't answer any of her questions right now. She needs to be moved by the 15th of March. I am wondering if anyone knows how they can take over $400 of her income and still call themselves "low income" that doesn't seem fair. I knew a lady that lived their with one child and paid less than $10 a month. I mean what about her other bills? She has 4 little children (twins 4, and 6- and an 8-year-old). I hate to see her move in there and overpay. My mom and I don't know what to tell her. She's been through quite an ordeal already. Any help would be appreciated. Thanks! Aunt Maria
annual income
Watch out, you will be accused of being childish from the same person who refers to "some" fellow MTs as unfortunately not having a brain. Hmmm, pot calling the kettle black? That was so rude and so not called for.....is that necessary!
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.
loss of income
I think this is happening to many of us in this profession. I am making two thirds of what I made 13 years ago and there is no way to get clients in my area as one hospital went out of business, two merged and gave the docs laptops and the largest only uses one service and has a 10 year contract but I have heard they are giving all new doctors laptops too. The hospitals in my area own most of the clinics, family meds and speciality offices too. Time for me to think about something else.
income taxes
Hi - Now working as an IC. Can anyone tell me what form or format you use when filing your taxes to list deductions from work-related items. Would appreciate any help on this. Thanks
Income potentials...
There are so many variables to that, but since no one has posted yet...
I think the average for a newbie (which you will be starting out until 2 years) is around 5-7 cents per line. The average after your "2 years of experience" goes up to about 8-10 cpl. There are so many variables, and every company is different. Of course, if you were to be running your own business, that is another story altogether, which maybe someone else will respond to (as I have no idea on that). Most companies require between 1000 to 1200 lines per day (full time) to 5000 to 6000 (part time). That is my understanding as a general rule. I'm not an expert, but that might give you some idea anyway. There is a website/magazine called Advance for HIM. They have a salary survey on their website for MTs you might find helpful.
Hope this helps!
Rae
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