The Small Business Tax Help Blog

Posts Tagged ‘federal’

Question: Employee/Independent Contractor Tax Dispute…Do I have to pay my employer the taxes or the govt?

My employer for the end of 2006 and beginning of 2007 wasn’t withholding my taxes and claimed me as an independent contractor on his taxes. I most definitely was not, and filed an SS-8 request. The govt decided I was an employee, and I’ve fixed my 2006 tax returns to properly pay the govt.

My employer is now demanding that I pay directly to him the taxes he did not take out for me in 2007, with no proof of how much he paid me or how he arrived at his numbers. I do not trust him (this is a very small business and I had no idea the mess I was getting into). Do I owe them to him to pay to the govt or do I pay the govt directly? Do I have to pay the govt now or when I file my 2007 taxes?
I worked at his business location and did not do any work at home or expend any of my own personal money in any way for this job. I would not be able to claim myself as self-employed because I wasn’t.

Answer: When you filed the SS-8 and won, the Employer is responsible not only for his matching taxes, but also Yours!!

You owe the government.

For year 2006 the employer must pay the IRS, SSA & Medicare.
For year 2007 the employer must pay the IRS, SSA & Medicare.

You would be responsible for your own state taxes.

By the way – ALWAYS look at your checkstub to see that taxes are being taken out and question everything. If the employer can not show you the Circular E and how he arrived a certain tax amount, then you should dispute it.

Social security is 6.2% of the first $97,500.
Medicare is always 1.45% of all earnings.

IRS Nightmare: What Employment Taxes?

You probably fear an IRS audit. See What’s Your IRS Audit Risk?  That’s only natural, like fearing heights or spiders, no matter how high or low your income.  See IRS Audit Risk If You’re “Rich.”  If you’re in business you may especially worry about a payroll tax audit.

The Law Show with Brian Dailey – 1099 Status for contractors in Michigan.

Question: Morgage interests and tax return?

Hi, I just bought a house on March 2005, and I filled my 2005 tax return through TaxCut software. I have almost $6000 on the form 1098 for mortgage interests, through the software, I only got $1500 refund, does this make any sense. I am married and filled the return separately, since my wife is on tax exempt status for 2005. My wage on W-2 is around 40000, and my federal tax withhold is around $4700. Thank you in advanced for any advice.

Answer: i have nothing against computer tax returns but i have always found that going to a professional (human) is much better idea. especially since you jsut bought your house, which you are allowed to claim your interest of your home for the next ten years, plus your clsoing costs can also be deductible to an extend. also you did included your wife name even though you file separately her information needs to be included on the filing. do you have any kids? yes you pay more for taxes if you married.
i think you got too little back, but there are other things that you need to consider. i would give you more details but i need to know more information. if anything even if you dont pick my answer write me through my nickname at yahoo.com and i will give you some very good tips which are all legal. because even though if you pay the i.r.s. too much , they are not going to turn around and say, “hey you pay us too much, let us give you some money back”.

Tax tips: My accountant failed to file my taxes

Raphael Tulino is the spokesman for the IRS in the Orange County/San Diego area, and he’s volunteered to answer your tax questions …Q. Recently I discovered that my accountant…

Practical Accounting and Taxation in India: Introduction

Question: Earned Income Tax Credit Eligibility?

I’m a college student who is filing taxes. My question is: am I eligible for the Earned Income Credit if I’m being clamed as a dependent by my parents (since I’m a full-time student)?

The IRS web site’s list of eligibility requirements says:

“You cannot be a qualifying child of another person”

Does this mean if I’m the qualifying child of someone else who is attempting to claim the EITC, or is it all-encompassing (including all forms of dependents)?

Answer: You can not claim the EIC if you are being claimed as a dependant on another taxpayers return.

Dexion Trading Ltd – Annual Financial Report

Dexion Trading Ltd – Annual Financial Report

Power Hungry Governor Taxes Poor In Michigan

Question: Business Taxes?

I want to know what I need to start my own official business? I want to do computer aided drafting jobs as a freelancer? I heard that the first year of starting your own business one does not pay taxes..False? or True?Any good advice would be great. I live In Burbank, California. Thanks

Answer: that’s correct however, after one year in business you will have to file a tax return and depending on your companies income you may have to pay taxes on it.

California delegation coming to Austin to study Texas business climate

California delegation coming to Austin to study Texas business climate

AFP CA Presents: Killing Small Business with California’s Internet Sales Tax

Question: Do you think Obama’s economic plan will work in this time of economic crisis considering…..?

He says 95% will get a tax break.. but 40% of american DON”T PAY TAXES..
Small businesses will end up getting taxed and will have to close down…
Where will he get an extra 50B to mandate that everyone is covered by health insurance?
HE’s got 1 trillion in extra spending.. Govt to interfere with all our choices..
Small business income is treated just like normal income and is only taxed as personal income tax just like your normal paycheck. Therefore, there is no tax to offset that supposed tax rebate he plans to give. A further point is that the top 5% income bracket that he wants to raise taxes on is already paying 95% of the tax burden. The middle 60 percent is paying the other 5% and the bottom 35 to 40 are actually not only not paying taxes but are getting free money from the government.

Answer: No.

Obama Would Ruin Economy With Tax Hike

Monday, September 22, 2008 9:03 AM

By: Dick Morris & Eileen McGann Article Font Size

he Wall Street mess now takes center stage in the presidential race. With company after company biting the dust, can John McCain survive as the representative of the incumbent party?

So far, McCain has focused on a populist criticism of Wall Street and its irresponsibility, firing away at corporate greed and lending practices. But he has to fuse the issues of the economy and taxes to show how Barack Obama’s tax proposals would lead to a catastrophic implosion of the nation’s capital base.

With the top Wall Street houses crashing for a want of capital, how can Obama justify an increase, and perhaps a doubling, of the capital-gains tax?

Obama has already said he might drop his tax hikes if the economy weakens. After noting that it’s pretty sad when your best idea for how to help the economy is to abandon your own proposals, McCain should call on Obama to give up on those new taxes right now.

People will sit on their capital rather than invest it if their gains are to be taxed at twice the current rate. And raising taxes on a troubled economy is akin to bleeding a sick patient — medieval “medicine” that does more to kill than to cure.

McCain needs to force Obama to choose between his leftist commitment to income redistribution and the common-sense point that higher taxes on investors and “the rich” would merely deepen the economic mess.

f Obama refuses to abandon his tax hikes, he’ll be seen as putting his ideology ahead of the nation’s needs. If he does the reverse, he’ll be admitting that his tax program has been a mistake — and, by recanting, show how unsteady his hand would be on the tiller.

Hiking taxes at the outset of a slowdown has always made things worse. McCain need point no further back than the first President George Bush, whose tax increase hit just as the economy was slowing from the Reagan expansion — triggering a recession that let Bill Clinton win the White House.

As the financial failures spread, voters will focus on the bad news and be inclined to hand the White House to the party that’s out of power. But if they focus focus on the cure Obama proposes, the bad economy could work to McCain’s benefit.
© 2008 Dick Morris & Eileen McGann

Wyden Again Pitching Tax Simplification

While a partisan battle over cuts to government spending threatens to shut down the federal government, a bipartisan pair of senators said they took a page from President Reagans book Monday, offering legislation that experts say will reduce the federal budget deficit by growing the economy.

OMG!!! Barack Obama is a socialist! Chris Matthews smacks down Republican Tom ridge