Self-employment tax help is useful around this time of year, since there’s still time to correct course if you haven’t been tabulating your taxes -- and, more importantly, your deductions. Only half the year is over, so July is a good month to get your affairs in order. Take advantage of self-employment tax help in 2013 and it will pay off during 2014.
Being self-employed is a daydream for so many people. Who doesn't fantasize about becoming his or her own boss? When it comes to work, however, the downside of being the boss is all the obligations that go with the job. Regrettably, calculating and paying taxes are part of those duties. That’s why you need self-employment tax help if you’re a freelance worker, small business owner, or otherwise self-employed.
According to the Internal Revenue Service (IRS), you are considered to be self-employed “if you are in business for yourself, or carry on a trade or business as a sole owner or an independent contractor.” The IRS requires self-employed persons to pay a Self-Employment Tax, which assesses Social Security and Medicare taxes similar to those paid by employees and their firms. The IRS also expects self-employed people to pay quarterly estimated taxes as a replacement for the withholding taxes that are applied against an employed person's wages. These factors make complying with self-employment taxes rules more complex than the rules that apply to the employed. Don’t go it alone -- get some self-employment tax help that will simplify your course of action.
With that in mind, the following are some tips that provide self-employment tax help:
Consult a certified public accountant. Even if you plan to be doing everything yourself, it's better to seek outside self-employmen...
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...of any part of your home? Plenty of small business owners have at least one room dedicated to some aspect of their business, whether it's keeping shipping materials in the garage, or a bedroom that is converted to an office or filing storage space. With so many small businesses operating partially or fully out of people's homes, the IRS allows business owners to deduct a percentage of rent, mortgage payments, utilities and maintenance for qualifying home offices. The IRS has stringent requirements for these deductions, however, so it is advisable to consult a CPA and find self-employment tax help about your particular situation. You want to be sure beyond any doubt that your home office qualifies.
With these tax tips for self-employed and freelance workers, you’ll discover all the self-employment tax help you require for the 2014 tax year.
My budget below does not state this but, I would choose sole proprietor as my tax status. My reason for this is, I have run my own business as a sole proprietor and feel comfortable doing so at this time. Since this is a make believe budget I have a pretend accountant and lawyer and would need to further scrutinize my options. I did go to the IRS website and read about different things that would need to be done but I will admit I had an overload of information. The t...
Income Taxes – Your business income is not taxed separately. It is considered your personal income and taxed accordingly.
Section 183(d) allows a deduction to a taxpayer who engages in for business. The taxpayer must earn a profit for any three years or more. If he does not meet the profit test, his activity is hobby. The gross income should be greater than the deduction in order to qualify for tax deduction under section 183(b)(1).
We’re a pretty small company, we’ve bought some equipment to get started such as microphones, cameras, website, and programs. We we’re once registered with the state of Florida as business under Melvin’s Photography but we haven’t yet chanced. At this point, we’re saving up to re-invest to purchase more equipment since we’re being requested for bigger projects.
Sole Proprietorship is one individual or married couple in business. Sole proprietorships are the most common form of business structure. This type of business is simple to form and operate and may enjoy greater flexibility of management, less legal regulation, and fewer taxes. Although this is the easiest form of business to start, "the income and losses are treated as personal and will be filed on a Schedule C along with the regular Form 1040 tax return" (IRS, 2004). If profits are minimal, the owner will be paying less in income taxes with this form of business than with a corporation. However, the business owner is personally liable for all debts incurred by the business. Sole proprietorships cannot take advantage of special business income tax rates since all income is considered individual income. In addition, sole proprietors are not protected from personal liability if they get into trouble with a client. If an upset client decides to sue, they sue the proprietor personally. If the proprietor must declare his company bankrupt, he files for bankruptcy personally. Moreover, by definition, a sole proprietorship can have only one owner, and that owner must be a "natural person" (i.e., not a corporation, trust, LLC, or other such entity.) Finally, one cannot sell or inherit a sole proprietorship.
you can call the IRS at 1-800-829-1040 or apply online to establish your request to use this option and it gives you a 120 days to pay in full with no fees involved
Taxpayers are often looking for opportunities to increase their tax savings and to lower the amount of taxes that they must pay yearly. To aid in their savings they look for possible tax deductions which help offset their taxable income. There are numerous amounts of deductions that are available for taxpayers should they meet the stated requirements set out in the Internal Revenue Code. One deduction in particular is the home-office deduction, this deduction allows for those who meet the requirements to reduce their taxable income due to a space they have designated in their home as an area that they can conduct business activities in. The home office deduction is a great way to use a percentage of household expenses to lessen
Imagine sitting down, doing your taxes and the sinking realization hits that you owe the IRS money. A thousand thoughts flash through your head wondering if they are going to seize your bank account, if you will lose your business or your home or even if you will wind up in jail. But, don't worry just yet, there are several tax relief options available to you.
Robertson, John, Tina Quinn, and Rebecca C Carr. “Unreported Tip Income: A Taxing Issue.” The CPA Journal 76.12 (2006): 30-39. Print.
Why do the people of the United States have to pay taxes? Taxes have been a part of history since the start of the first civilizations. There are many different aspects of having to pay taxes, some negative and some positive. Many people think that taxes are over priced, dumb, and unnecessary, while others consider them helpful to society, and help protect us.
The tax system is an important part of our country's method of ensuring that government leaders are paid, roads are maintained, and we have a well-armed military to defend all of our citizens. But that doesn't stop the millions of people who live in the United States from dreading the complicated procedures set up by the Internal Revenue System (IRS) that they have to go through to pay their fair share of the expenses each year. Part of the reason for this is that there are so many myths surrounding the process. Unfortunately, those who believe in them end up with costly fines and legal problems though. So to help clear things up, the following is a list of five of the top tax myths and the real truth behind them all.
I recommend that you transition from a sole proprietorship to a limited liability company or LLC. This will allow you to take advantage of certain favorable tax treatments, as well as personal liability protection, for the “members” involved. I will list some key areas where you will benefit from operating
There are many different types of business structures, but if you own and operate a business that it is a sole
Five advantages for owning your own business are: 1) The owner receives all profits, meaning that all earnings go to the sole proprietor, or the owner, and isn’t shared with anyone else. The profit is not split among partners, or split among a corporation. So when you own your own business, you’re the first and only one that receives all earnings and profit. So if a person has a successful firm, he/she is the first to reap the success and rewards. 2) Another advantage of owning your own business is that you’re your own boss. You can set your own hours, decide what you want to do with the company, no manager to answer to. Basically, you’re in charge of everything. The owner solely makes all decisions. Or in other words, you’re running the show. 3) An additional advantage is that a sole proprietorship can be easily organized. It’s easy to start your own business. First of all, it costs very little money to start your own business. As a sole proprietor, you have minimal legal requirements. The owner doesn’t have to establish a separate legal entity. All that is needed is to register the company with the state and apply for an occupational license and any additional licenses required for the state. ...
Starting your own business can be exciting and it can become a well- rewarded experience. Being your own business includes great benefits, create your