The Small Business Tax Help Blog

Posts Tagged ‘taxes’

Question: Which EIN to use in EFTPS for single member LLC disregarded entity?

I have a single member LLC – disregarded entity – sole proprietorship. IRS gave me 2 EINs. 1 for the LLC and 1 for the sole proprietorship. I do not run any payroll because I work for myself and I am the only one in my business. I used the Llc EIN when I opened a bank account. However, I do not know which EIN I would use in paying Estimated Tax Payments – for self employment. I was also told that I need to file 940/941 quarterly – but I do not run payroll. What should I do?

Answer: Use the EIN for your LLC.

The IRS, in my opinion, got it wrong for LLC. The intent of congress was obviously to make a corporate-like structure. The IRS considers it a disregarded entity for tax purposes, but the LLC is still paying the employment tax, so use their EIN.

You should be paying yourself on a W-2, not self-employment, and that amount should go on your 941 and 940. You are not self-employed with the LLC.

Harry Winston Diamond Corporation Reports Fiscal 2012 First Quarter Results

Harry Winston Diamond Corporation today announced its first quarter Fiscal 2012 results for the quarter ending April 30, 2011.

Talking About The UBT With April Silver and Sara Horowitz

Question: When to start paying income tax on self-employment?

Obvious answer is Jan 31st and July 31st!

But if i started self employment on July 2007 am i correct in saying that i return tax forms in 2008 and start paying in Jan 2009 and July 2009 for the tax year 2007-2008

Cheers!!!

Answer: 2008 tax return will be issued in April 2008
You have until 31 January 2009 to file this return
Tax on your income for Year ended 5 April 2008……..that is your income from whatever source from 6 April 2007 to July 2007 and your income from self employment from July 2007 to 5 April 2008………..is payable on 31 January 2009.
If this amounts to more than £500 then you also have to make payments of tax on account for the 2008/09 tax year.
The payments on account for 2008/09 assume that your tax bill for that year will be the same as that for the year to 5 April 2008.
The 1st payment on account for 2008/09 is also due for payment on 31 January 2009.
The 2nd payment on account is due on 31 July 2009.
As an example:
If your tax for the year to 5 April 2008 amounted to say £4,000 then the payments of tax due would be:-
On 31 Jan 2009……….2007/08 tax……£4,000
Plus 1st payt on a/c for 2008/09………£2,000
Total payable 31 Jan 2009………………£6,000
On 31 July 2009 you would have to pay your second payt on a/c for 2008/09……..another £2,000.
The payments on account for 2008/09 are of course taken off your tax bill for 2008/09 and only any remaining balance would have to be paid on 31 Jan 2010 (along with a 1st payt on account for 2009/10)
Hope this helps.

Oswego, Fulton school board candidate profiles

OSWEGO CANDIDATES LYNDA SERENO School board election: Longtime educator aims for small classes, high academic standards

Schedule SE Self-Employment (Form 1040) Tax return preparation

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