The Small Business Tax Help Blog

Posts Tagged ‘self employment tax’

Question: Tax Question for an LLC?

I have a company that sells software online to fx traders in 2008?

Revenues: $ 74,952.00
Expenses: $ 13,123.66
Net Income: $ 61,828.34

What would the total tax be for a “single member LLC” in Illinois
Which includes federal, state, and self-employment taxes?
And any other taxes that I might be forgetting.

Thanks

Answer: You’ll need to file a separate return using your EIN. The LLC return should produce a K-1 form. You would pay your income tax showing the net proceeds from the K-1.
The rough estimate on the Fed portion of the LLC will be between 25-30% of your net income.

U.S. Economy: Manufacturing, Jobless Claims Point to Slowdown

Reports on U.S. manufacturing, employment and home sales pointed to slower growth in the second half of the year, just as government spending to stimulate the economy begins to wane.

Ch. 4 LLC & Self Employment Tax

Press Releases: Policy Address on Opportunity In The Americas

Policy Address on Opportunity In The Americas Hillary Rodham Clinton Secretary of State El Centro Cultural Metropolitano Quito, Ecuador Portuguese Translation June 8, 2010 SECRETARY CLINTON: Thank you very much, Mayor. Thank you for that introduction and for the great honor that this venerable city has given me today. It is such a personal pleasure for me to be here with all of you in a city …

Question: Part-time self-employment vs being claimed as a dependent?

We live in CA and this year in filing our taxes, my husband and I got slammed because we’re in the highest tax bracket!

I am self-employed, but only work sporadically on various projects and earn a meager income each year (about $20K after expenses).

Question – would it be better for me to not work at all so that my husband can claim me as a dependent? Would we receive a better tax deduction?

Currently we have no children, don’t own a home, and are in the highest tax bracket.

Thanks in advance for your sage advice

Answer: If you are married then your husband can’t claim you as a dependent. You would simply file a joint return and claim both of your incomes and both of your exemptions. The only other option you have would be married filing separate which has such a high tax rate it is seldom beneficial.

Consumer, Health and Family

Regulators will clamp down on excessive interest rates charged on credit and store cards, according to new plans laid out by the government.

Chuck Norris Endorses Mike Huckabee And The FAIRTAX

Question: Self Employment Tax, 1040EZ?

What tax form(s) should I file if I made $1,579 from self-employment part time. I already have a W-2 from another job. Should I just file 1040EZ or are there others? I don’t think i’m a sole proprietor because I don’t have a business license.

Also, If you know, how do I figure estimated tax for the quarterly tax payment for self-employment. Do I also have to pay State Tax for this? I live in Missouri and am a Single Dependent.

Thanks!

Answer: You can’t file Form 1040-EZ with self-employment income.

You must file Form 1040. Attach Schedule C or C-EZ to report the income and business expenses. If the net profit is $400 or more, attach Schedule SE to calculate the self-employment tax.

You only need to make Estimated Tax Payments if your tax liability is expected to exceed $1,000 for the year. That equates to around $7,000 in self-employment income.

You need to file a MO return if your gross income is $7,250 or more. There isn’t a separate self-employment tax in MO though.

George Soros Q1 Portfolio Update

Billionaire investor George Soros just released his Q1 portfolio holdings. As usually, Soros has large portfolio turnovers. Among the 821 stocks he owns, 280 are new positions from the first quarter. These are the details. Read more » »

Umbrella Company — Urgent update for ALL Contractors

Question: Does anyone have any experience being a US citizen, working for a UK Company while living in the US?

I am seriously considering an incredible job offer that will require me to work out of my home for a UK company. They are asking me to consider setting myself up as self employed while having a “guaranteed employment period from the UK company”. They would not have to manage tax and labor issues in a country where they have no employment expertise. Does anybody have any experience with this, and know what I should add to my salary to cover additional tax costs I will incur?

I could also use suggestions for improving my current home office – until now used as a place to catch up on emails when I was at home. I have always had a separate primary office working for another company.

Answer: Well to start you are going to have to pay the 75.% Social Security tax that a regular employer would pay for you. If they pay you via 1099, then you will be responsible for paying all your own taxes and you might have to do that quarterly. There could be a lot of issues to consider. Good luck.

Education advocates

Amid job losses, school staff march on Richmond

Tax Tuesday: Self Employment