The Small Business Tax Help Blog

Posts Tagged ‘taxes’

Question: Tax question (self-employed)?

I realize this is grossly oversimplified, but I’m looking for a very very approximate estimate.

I am self-employed, I have no employees and minimal business expenses. About what percentage of my income will I owe in taxes?

Answer: That depends entirely on the amount of income you have earned. It could be a fairly wide range from 0% to over 30%.

But to give you an idea lets say you earned 50,000 of self-employment income, are single and used standard deductions.

You would have 7,650 of self-employment taxes and 5,394 of income taxes (accounting for a deduction of 1/2 of SE taxes)

Total tax would be $13,044.

This represents an effective tax rate of 26%

This is a higher effective tax rate from a person employed by someone else. Assuming everything else was equal, that person would have 3,825 of employment taxes and 6,350 of income tax.

Total tax would be: 10,175

This represents an effective tax rate of 20.3%

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Question: My child care provider will not give out their EIN without obtaining my SSN?

I asked for my child’s daycare EIN and they will not give it to me unless I give them my SSN along with my full name and the amount I am claiming. Is this normal? This is the first time I have ever used this credit and it doesn’t sound right to me.

Answer: Not normal. You need to make a best effort to obtain the EIN, but if they won’t give it to you you can still file for the credit. Document that you made the effort but they would not release the information.

Provider refusal. If the provider refuses to give you the identifying information, you should report whatever information you have (such as the name and address) on the form you use to claim the credit. Enter “See Attached Statement” in the columns calling for the information you do not have. Then attach a statement explaining that you requested the information from the care provider, but the provider did not give you the information. Be sure to enter your name and social security number on this statement. The statement will show that you used due diligence in trying to furnish the necessary information.

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Question: What percentage of top 2% earners that want their crazy tax cuts to continue are actual small business owners?

50? 10? .5?

Answer: We all want our “crazy tax cuts” to be extended.

Corporate Tax Cut BS Exposed

Question: Should GE take some of their $10.8 B in international profit and pay back some of the bailout money?

And because of losses in the US, they paid no taxes for 2009.

“GE had plenty of earnings last year — just not in the United States. For tax purposes, the company’s U.S. operations lost $408 million, while its international businesses netted a $10.8 billion profit.

That left GE (GE, Fortune 500) with no U.S. profit left for Uncle Sam to tax. Corporations typically face a 35% federal income tax on their earnings. Thanks to its deductions and adjustments, GE reported an actual U.S. federal income tax rate of negative 10.5%. It got to add a “tax benefit” of $1.1 billion back into its reported earnings.”

http://money.cnn.com/2010/04/16/news/companies/ge_7000_tax_returns/index.htm?cnn=yes&hpt=T2

Regarding the GE Bailout: http://www.washingtonpost.com/wp-dyn/content/article/2009/06/28/AR2009062802955.html?hpid=topnews&sid=ST2009062803183

Answer: I agree.

GE paid no taxes.
Exxon paid NO taxes

It’s like a sick joke is being played on every tax paying American.

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Question: I need the form to fill out an estate for my dad who is deceased.?

My stepdad past away he had no beneficiaries so as the stepdaughter iwas told to make an estate for him on his behalf. I don’t know what form to use.I do know his EIN number. Please help thank you.

Answer: A form is not important; an analysis is what the court wants.
They wish to know what to tax the estate and how to
divvy up any assets. I do not think the court asked you to
make an estate but instead, to identify what is IN HIS estate.
You can’t “make” one. An estate is what one owns.

Die Immobilienmaklerin – ein Loft