The Small Business Tax Help Blog

Archive for the ‘Self Employment Taxes’ Category

Question: If I make roughly 11,000 in self employment income how much federal income tax do I owe?

This is my first year in business for myself and I know about self employment 15.3% tax but the federal income tax confuses me. I don’t really have any expenses to write off for my business and I’m single and 24 years old. I’m obviously going to be talking to a professional come tax time… But I want an estimate to alleviate stress. Any help is appreciated!
Aren’t I a likely audit target for having that much deduction on a schedule c? I’m not hiding anything but I don’t want to deal with an audit at all because they don’t sound fun. And I thought you couldn’t take a standard deduction if you were self emloyed…

Answer: 11,000 less 1/2 of SE tax, less $5700 standard deduction, $3650 personal exemption leaves you $872 of taxable income or about $87 in income tax.

Add that to the $1554 SE tax and you’ll owe $1641.

The forms aren’t that difficult if you have nothing to deduct–so do them yourself and save $300.

Self Employed

Question: How do I amend my taxes because of form 4361?

i received confirmation about my exemption from self-employment tax from form 4361 for ministers, but i already had to do all my taxes. How do i go about the amendment process with my new exemption status?

Answer: You will file amendments (Form 1040X) for 2004, 2005, and 2006 to get refunds of the self-employment taxes. For each year, answer “yes” to the 4361 question, since the approval is retroactive.

DEMONIACAL Redsmoky (1of3) (RedSmoky aka OrgoneMad) Mirror

Senate Session 2011-03-03 (14:22:03-15:34:37)

HMRC Guide: Self-Employed Childminders

Question: Does an “investment club” type partnership have to pay for Self employment tax?

A regular partnership is required to pay both an income tax and a self employment tax on profits generated by the partnership at the federal level. What about an investment club type of partnership- where the only profit generated is purely from investments?

Answer: The income from the partnership flows to the partners in the same classification as it was generated. Unearned income is reflected as such on the K-1s and is taxed that way — no SE taxes are due.

Do make sure that your partnership agreement is iron clad on it’s purpose and how income will be generated within it. If any income other than unearned income is generated, it must be reflected as such on the K-1s and may be subject to SE taxes.

THE MAGIC OF THINKING MICRO: The Future of Enterprise Learning and Support in the UK?

These last weeks I’ve taken quite a lot of stick from the enterprise support community. First there was the launch of Start Up Britain (StartUpBritain) http://www.startupbritain.org/ criticised for being a sales pitch for the large corporates, and now they seem generally unhappy with the government backed mentorsme mentorsme http://www.mentorsme.co.uk …

LLC Nonwage Income Ch1