The Small Business Tax Help Blog

Archive for November, 2008

Question: Taxes Stuff?

I live in Illinois. I want to buy products from drop shippers and wholesalers, but first I needed to get my sales tax ID. Before I could get my sales tax ID, I needed an EIN number. I got the EIN and then I got my IBT (Illinois Business Tax number/tax ID) but I will never have employees. Recently I got a letter from the IRS telling me how I should pay my taxes and when I should pay. Yet these directions are purely alien to me. Obviously, I know nothing of taxes and I do not really know what to ask here, but: if I have no employees and if I use my tax ID to buy from legitimate wholesalers and then sell those items on eBay, how should I pay my taxes? How much do I need to make to pay the IRS, more than 20,000 a year? Do I need to fill out a tax form every time I sell an item?

Answer: I agree, you just need a tax accountant. Don't worry about their fee, it is not much, and they save you tons of money. I use one, the laws are not onl.y complex, they change every year.

Most small business owners use and outside account. Ask some of your friends who they use. I personally like to use one who is like yourself, a small business owner working independantly, instead of a huge firm.

Illinois House OKs tax credit meant to create jobs

The Illinois House has approved $50 million in tax breaks meant to help small businesses create jobs. The tax break was proposed by Democratic Gov. Pat Quinn. His Republican opponent, Bill Brady, supports a similar plan.

Small Business Bill of Rights

Question: W4 Tax Witholdings?

I’m planning on working 3 jobs this year. I’m a full time student and I should get about $10,000 altogether at the end of the year. I understand both arguments on too much and too little tax being withheld (get refund check in Spring or get as much back now and earn interest)

Few questions: What should I withhold (recommendations and options)? Usually I’ve put “Exempt” but I don’t think I’m legally able to now that I’m making above $5,350.

I’ve seen the statement of 0 allowances being the maximum tax withheld but how do I figure out what percentage that would be?

Thanks so much for your help. It is much appreciated!

Answer: If you expect to make $10K, then don't put exempt.

If you work three jobs, chances are that even claiming zero on your W-4, you could still end up owing. The reason is that each job takes out as if it's your only job, so would take out little or nothing, but when you file your return, your three jobs are added together and your tax is calculated based on the total.

Zero isn't actually the max - you can ask to have an extra amount taken out per paycheck.

If you're a dependent, your tax could be somewhere a little under $500. If you're not a dependent, probably around $150. Make sure you have that much taken out. If it doesn't look like you will, ask to have more withheld, unless you don't mind writing a check when you file your return next year. In either case, you'd be below the amount owed where you have to pay a penalty.

United States: Penalty Abatements And The RCA Program: What's A Taxpayer To Do?

In today's economic climate of declining government revenues, the IRS has become more aggressive in its penalty assessment and enforcement efforts.

How to Calculate for Salary, Withholding Tax, etc. (Part 1)

Question: Question about 8453-OL form?

for the part 2, 6c, which says;
I authorize the U.S. Treasury and its designated Financial Agent to initiate an ACH electronic funds withdrawal entry to the financial institution account indicated in the tax preparation software for mayment of my federal taxes owed on this tax return and/or a payment of estimated tax. I further understand that this authorization may apply to future federal tax payments that I direct to be debited through the Electronic Federal Tax Payment System. In order for me to initiate future payments, I request that the IRS send me a personal identification number (PIN) to access EFTPS. This authorization is to remain in full force and effect until I notify the U.S. Treasury Financial Agent at 1-888-353-4537 no later than 2 business days prior to the payment (settlement) date. I also authorize the financial institutions involved in the processing of the electronic payment of taxes to receive confide~ bla bla bla….

Do I have to check the box??

Answer: yes,or you will not get your direct deposit,unless you want a check instead,then don't check the box.

DuPont Fabros Technology, Inc. Reports 2009 Results

DuPont Fabros Technology, Inc. today reported results for the quarter and year ended December 31, 2009. Â All per share results are reported on a fully diluted basis.

$78.8 Trillion; United States Debt Obligations exceed world GDP; Monetary Collapse Looming?

Instant Analysis – Darling presents budget to parliament 

Below are reactions to Chancellor Alistair Darling’s budget statement to parliament on Wednesday.

climategate – Hackers Reveal Global Warming Fraud (2)

Question: self-employment and taxes?

I plan to be a self-employed ‘eBayer’. I want to buy items from drop shippers and sell those items on eBay. In order to buy items from drop shippers I needed a ‘sales tax id number’. So I got my IBT number (Illinois Business Tax number). Now that I have this IBT number, I know that I have to pay sales tax whenever I sell an item to someone in my state, and I know I have to pay income tax yearly, if I make more than 400 dollars. I just want to make sure of this: For someone in my situation, I only have to worry about sales tax and income tax, right? There are no other taxes I have to pay, right?

Answer: You may have a business license requirement for your township. You really need to talk to a LOCAL to you tax preparer.

Free job-loss mortgage insurance?

Insurance -- often for free -- can pay your mortgage in the event you lose your job.

Self Employment or Corporation? - iBC - Israel Business Connection www.israelbusiness.org.il