Currently viewing the tag: "selfemployment"
The day to day life of a man and his clone slave.
Individuals talk about how Business Link in London and the Business London programme, working with Jobcentre Plus, helped them move from long-term unemployment to starting up and running their own business.
Learn tax tips for temporary employees withexpert tax advice in this free online self employment tax deduction video clip. Expert: Tom Choistnet Bio: Tom Choisnet was born, raised, and educated in San Bernardino, California where he has his practice today. Filmmaker: Nili Nathan
Question: Self-Employment Tax Problem?
We have filed standard taxes for years with no issue at all. This year, we began receiving paperwork from the IRS for a “self-employment” tax. I’m not sure what to do.
The return in question was 2008. I tried the “work online” job boards in 2008 and made around $ 1200 for the entire year, it was a failure to say the least. I researched my taxes that year and found if I made over $ 400 a month, I had to file, but my tax preparer said not to bother if it was under $ 800 because I wouldn’t be able to pay taxes on an amount less than that. My average was $ 50 to $ 200 a month. I never received any paperwork from the online company or anything. Everything was done via the internet. I quit after that year.
Now, 2 years later, the IRS is stating I owe $ 600 in self-employment taxes. I didn’t make, but $ 1200 for the entire year. I worked part-time years ago and made around $ 400-$ 500 per month, again my preparer wouldn’t use my forms, she said there was no taxes taken out and not enough to make a difference. There was never an issue from it.
I don’t understand why it would make a difference now. Our yearly income is around $ 19K. We have an autistic child and I can’t work, I need to be able to go to school when they need me. I don’t understand how $ 1200 can make any kind of difference.
I don’t know where to go. A friend of mine lives in the next state and the IRS has declared they overpaid them $ 1K when they didn’t. They make much less than we do annually. Are there any resources for low income families when it comes to IRS problems?
Any help will be most appreciated.
Answer:
Answer by Howard L
The self employment tax is actually social security and medicare. You must pay social security and medicare tax on everything you earn even if you don’t make enough to pay income tax. When you work for an employer your employer pays half and you pay the other half and they automatically deduct your half from your pay. When you are self employed you pay everything yourself. It equals 15.3% of your income. On that basis you should owe about $ 180 on $ 1,200 of income. I can’t account for them saying you owe $ 600 other than late penalties and interest for not reporting any income that year. You need to visit your nearest IRS office and ask them how they arrived at $ 600. If they made a mistake you can appeal the bill. If it’s not a mistake you need to arrange a payment plan with them to avoid incurring additional penalties.
Question: Can I reduce the tax on my only income of 00 for ’08 which is considered “contracted self-employment”?
I only earned $ 2500 in 2008 as a research assistant after graduating college. I cut off an index finger shortly after graduation and was unable to be employed until the beginning of this year. I have very little money and I can’t really afford the $ 175 of taxes on this income right now as my finances are very depleted. Is there a way to reduce what I owe or am I going to have to find a way to pay this tax?
This income was reported on a 1099-MISC instead of a W-2 since it is “self-employment”.
I know I am required to file a return. I didn’t know they were going to report it this way until I received my paycheck and I was out of commission for most of the year and needed money so I did not have the luxury of worrying about it at that point. I’m stuck now and I am hoping there is some way I can reduce the tax owed.
Answer:
Answer by SusieQ
I’m not sure why you owe any tax on $ 2500 of income. Your personal exemption ought to cover this amount and more.
Question: I have creativity/artistic ability, what kind of self-employment “jobs” should be available?
Drawing/painting pictures perhaps?
Answer:
Answer by kevrigger
Honey, self-employment means you invent your own job.
Question: Does my 1099 status count as “self-employment” for tax purposes?
I am trying to fill out my taxes and there is a question that asks if i am self-employed. i am a massage therapist working for a chiropractor who gives me 1099s. i have no “business” other than working for him. does this make me self-employed?
Answer:
Answer by jobseeker77777
Yes, you are self employed. You have an income and you are not a W2 employee.
A self-employed individual pays their side of the tax liability and the owner’s side of the tax liability. Calculate self-employment tax, which is 15.3 percent if the individual makes up to 76.2 hundred dollars, with tips from an accountant in this free video on taxes and finances. Expert: Doretha “Faye” Jones Bio: Doretha “Faye” Jones has an MBA and over 20 years of accounting experience in addition to experience at Sarbanes Oxley audit support. Filmmaker: Christopher Rokosz
Learn about IRS Self Employed Tax Deductions & Write Offs 2010, 2011 www.harborfinancialonline.com
Question: How do I reduce “self-employment” taxes?
I’m new to “self-employment” taxes and didn’t save ANY receipts from my guest lecturing work at a local college. What kind of deductions can I SAFELY make w/out getting audited by the IRS?
Answer:
Answer by v b
None.
You need to look through your credit cards and figure out rental cars (these are usually okay since you can’t buy extras at a rental car place), parking (ditto), hotels and call and get copy of invoice (you have to split out food), and that’s about it.