The Small Business Tax Help Blog

Posts Tagged ‘irs’

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Question: which ID number should I put on my it-2 tax form for NY state?

I am talking about the employer Identification number, which number the state one or federal one. Also please provide proof so I could be able to trust you, not to offend but you know. I am would understand if someone did not trust me either.

Answer: Use the Federal number. IT2 is a transcription of Form W-2 so you use the employer’s FEIN. According to the instructions on the form, the box numbers on the form coincide with the box numbers on Form W-2. Box b on Form W-2 is the FEIN, so that’s what you put in box b of IT2.

IRS Struggles to Control Taxpayer Identity Theft

The Internal Revenue Service found over 245,000 identity theft incidents last year, according to a new government report that assessed the IRS’s efforts to stem the growing problem, as victims testified before the Senate.

ID Verification – 5 Hi Tech Tools Fight Fraud @ REALSearch.com

Question: Tax Help?? Independent Contractor~I do NOT own a business, my “clients” 1099′d me?

What form do I use to file for all my itemized deductions (time, travel, planning, catering, budgeting, meetings with clients for menus, etc…..) I’m pretty lost……Any help would be great, I posted this earlier, and I got some info on Owning a Business…….I don’t own a business…..Do I use a 1040 long form or is there another one?? I was told Schedule C and Schedule SE were used, but those are for business owners, which I”M NOT…….Any help would be great…..And I know it’s the last minute, but I’m also filing an extension…….Thanks in advance……
I’m a private chef for 3 families here in Encinitas…….I was 1099′d by ALL of them, I didn’t know that I was going to be, I thought I was going to be able to fill out a 1040 form. I may be a culinary genuis, but when it comes to taxes, I’m a complete moron, obviously…….

Answer: First, I realize you do not own a business. However, as an independent contractor, you are considered self employed, and therefore you file taxes as though you were running a business. Your business name is simply your name, and your business ID number is just your social security number. Basically, YOU are the business. It doesn’t matter that you don’t have a business license, that’s not an issue, but for income tax purposes, you have to file as though you were running a business.

If you’re just starting now, I highly suggest you file an extension and include whatever payment amount you can afford. Then hire a tax pro or accountant to help you. Anyway, this is what you do:

Use a 1040 long form.

Attach schedule C with all your income and business related expenses. Schedule C is designed to help you determine your net profits from self employment. The net profits go onto your 1040 as income.

If your net profits were more than $400, you also need to include schedule SE. This schedule computes your self employment tax. Its 15.3% of your net profits. This is the money you would have had taken out of your paycheck (plus your employer’s contribution) for social security if you had a regular job. The total self employment taxes will go onto your 1040 as taxes owed.

Just to clarify. A deduction is something that you are allowed to deduct from regular income taxes, such as mortgage interest or charitable donations. An expense is something where you had to spend money as part of your “business” (or independent contractor work), so it reduces your net profits, and lowers your personal income.

Adjusting Your Withholding and Estimated Tax Payments

Now is a good time to look at the amount of tax that you have withheld from your pay, pension or Social Security, as well as any estimated payments that you make throughout the year.  The amount of any payment that you had to make on April 15 should be fresh in your mind – and if it was a sizeable amount you should review the situation and quite possibly adjust your withholding or estimated …

1099 Independent Contractor vs. W-2 Employees

Question: Will I be exempt from federal withholding now that I’m married?

My employer needs me to fill out a new W4 by Saturday and I’m not sure what to do. I haven’t done my taxes for 2008 yet, so I’m not sure of what to fill in. I got married in 2008, my husband is a full-time student and also works full time, I go to school part-time and have a lot of student loans and also work full-time. Together, we make $91,000 before taxes. Last year both of us were exempt from all withholding and if we were filing separately we would be again. Can anyone help? Thanks!!!!
The majority of married people filing taxes benefit from filing jointly, so we’ll be doing that. We’d lose money if we filed separately because of education and student loan credits.

Answer: So file separately. There is a “Married filing separately” option, you know.

You probably won’t know if you’re both fully exempt still until you fill out the forms though.

IRS reveals dirty dozen tax scams

12 ways to get in deep trouble with the IRS

itinagent.com | Non-Resident Tax Filing Deadlines | USA, Accounting

Question: how do I get a resale EIN # & get all nexeccsary docs to start my company?

I have applied for a tax id # via IRS.gov. I am going to buy wholesale & resell as retail. How do I incorporate properly within state & federal guidelines. I also need a resale EIN #. How do I get that? I made the first step now I need to take the next steps. Thanks

Answer: The EIN is an employer id number, it has nothing to do with buying at wholesale.

You’ll need a resale permit issued by your state. Completely different.

IRS offerings for small business

The IRS just sent out a news release with information about tools and resources for small business.

Rachel Carson event (end)

Question: i want to apply for a Business Tax id but wondering if it will be connected to my personal credit?

Answer: Usually not.

Most Japan voters want new PM, approve quake tax

Kan criticised in parliament for disaster response. 18 Apr 2011 8:54 PM

Does a small business need a tax ID number?