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...
... middle of paper ...
...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...
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).
Filing and payment – Individual income tax on employment income is subject to withholding, payment and reporting by the employer. Payment is due by 25th of the month following the month the income was paid. Income and tax should be reported on a quarterly basis by the 15th of the second month following the reporting quarter.
In the months preceding the start of my Federal Tax internship with KPMG, LLP this past summer, I had mixed expectations not only about the potentially difficult work I would be asked to complete, but also about how I would fit in at such a big and prestigious accounting firm with my limited experience and knowledge. In anticipation of my summer at KPMG, I would find myself searching the Internet for articles and forums with helpful advice for new coming “Big-Four” accounting interns and brushing up on some potentially helpful excel formulas. But, as my start date grew nearer, my nerves were progressively replaced with excitement and an eagerness to learn.
The board of directors must also be aware of the accounting requirements for income taxes. Income tax preparation is based on the amounts shown in the association’s fi...
The owner reports business gain or losses on his or her personal income tax return. A sole proprietor is taxed on all assets from the business at appropriate personal tax rates. The corporation income, and acceptable expenses, is reflected on the person’s tax return. All corporation income is taxed to the owner in the year the business acquire it, whether or not the owner take away the money from the business. No disconnect federal income tax return is acquired of the sole proprietor.
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
There are many different types of business structures, but if you own and operate a business that it is a sole
The second step is entering the transactions of the period in appropriate journals. This step consists of taking the journal entries, assigning each to an asset, liability, equity, expense or revenue account(s) to debit and credit. This can be done by almost anyone. I have had jobs where the bookkeeper does the journal entries and figures out which accounts are affected. I have also had jobs where anyone from a receptionist to a staff accountant does this step. If the person doing the journal entries does not have a background in accounting, or is unfamiliar with which accounts are affected, the person submitting the source documents will write down which accounts should be debited and which should be credited. This practice makes doing the journal entries little more than data entry, which can be done by nearly every employee.
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. ...
Preparing the necessary documents for the clients such as will, property papers, property transfer papers, compensation papers etc.
Starting your own business can be exciting and it can become a well- rewarded experience. Being your own business includes great benefits, create your
Sole proprietors because they are the owners, do not have to pay business taxes, however, the owner must pay taxes on the income that is collected from the business as a part of his or her own personal income taxes. Despite the fact that the business is owned and run by the sole proprietor, there is a definitive need to comply with any licensing requirements in the particular state where the owner is doing business. This includes zoning ordinances, local regulations as well as the necessary paperwork attributed to the business running smoothly. There is a nominal amount of paperwork associated with the sole proprietorship in comparison to the other types of business entities, which makes it an even more attractive business to operate ("Advantages and Disadvantages of Sole Proprietorships").
Self-employment is explained by the nature of the job that it characterizes. It is “a group of jobs where the remuneration is directly dependent upon the profits (or the potential for profits) derived from the goods and services produced (where own consumption is considered to be part of profits)”. There are four categories of workers who fall in the ambit of self-employment: employers, own-account workers, members of producers' cooperatives, and contributing family workers. Each of these categories can be viewed as, single or multi-member, firms whose profitability owes to owner’s decisions.
2.Income taxes:Income earned by the sole proprietorship is income earned by its owner and is taxed as such