taxes? (usa)

Discussion in 'General Business' started by fastmanfunnay, Oct 14, 2007.

  1. soccerfriend

    soccerfriend Well-Known Member

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    #21
    please read my post till the end.. I said count on 40%, probably it is going to be less, but you never know and it is better to be prepared to pay more and save some money for it. When it comes to taxes I see a glass half empty :)
     
    soccerfriend, Oct 21, 2007 IP
  2. Barefootsies

    Barefootsies Well-Known Member

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    #22
    You apparently misunderstood or misread..

    I did not say you did not have to pay taxes toots. I said you are not classified as 'self employed' and have to start paying quarterly taxes on your income.

    If you are self employed, or making your living from online income alone (as I am) then you must pay quarterly estimated taxes. If you hold a normal full time 9-5, then you must report the additional income at the end of the year and pay taxes on it if over $600.00.

    This will also vary based on if you set your business up as an S-Corp, LLC, Sole prop (i.e. if you draw a weekly check w/ taxes taken out).

    Some reading glasses, or checking with your CPA will verify this.
     
    Barefootsies, Oct 21, 2007 IP
  3. jhmattern

    jhmattern Illustrious Member

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    #23
    A) Don't call me toots.

    B) Yes, you are still classified as self-employed even if your self-employment income is only part-time. I already offered you proof that part-time self-employed individuals are classified as self-employed with a quote directly from the IRS, and even bolded it for you. But since you missed it:

    And in more detail just for fun:

    C) Simply having a full-time job in no way means that you don't have to pay estimated taxes on your self-employment income. They're still required to make those payments. They just get to choose whether to pay independently or to make a special request to have their employer hold extra out of their other income throughout the year in an amount that would satisfy the requirements (which are quoted below):

    D) It's not that you owe if you earn more than $600 in self-employment income as you stated. It's actually $400 (source)

    $600 is also related to work done as self-employed individuals acting as independent contractors, when determining whether or not the hiring party is required to fill out a form 1099 (source).
     
    jhmattern, Oct 21, 2007 IP
  4. pricesareless

    pricesareless Peon

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    #24
    Yes you have to pay, visit your states website for detailed information. It is very important thaht you keep track of all of your business expenses as well.
     
    pricesareless, Oct 21, 2007 IP