Exempt From Backup Witholding...

Discussion in 'Payments' started by Ferrarislave, Jun 27, 2006.

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  1. #1
    Do you have it checked? To my understanding backup witholding is for people who owe money to the IRS. Google will take 31% of their income and send it to the IRS to fill that debt, if you have no debt, then you are exempt?

    Any feedback would be appreciated.
     
    Ferrarislave, Jun 27, 2006 IP
  2. Ferrarislave

    Ferrarislave Peon

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    #2
    anyone.....?
     
    Ferrarislave, Jun 28, 2006 IP
  3. bugon

    bugon Guest

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    #3
    I think only US citizens can do that, but not sure. Anyway, if you are then you should decided whether you want to owe money to the IRS at the years end, or have them owe you.
     
    bugon, Jul 3, 2006 IP
  4. mjewel

    mjewel Prominent Member

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    #4
    That's correct. Backup withholding is if you have a prior obligation to the IRS. You will get a 1099 at the end of the year, and that gets reported to the IRS. You should be making estimated quarterly payments at least equal to your self-employment income of last year to avoid a penalty.
     
    mjewel, Jul 3, 2006 IP
  5. Ferrarislave

    Ferrarislave Peon

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    #5
    Ah I see, I owe $0 money to the IRS, so I am exempt. :) Thanks for the replies.
     
    Ferrarislave, Jul 3, 2006 IP