The Small Business Tax Help Blog

Posts Tagged ‘taxes’

Question: Where can I find an income Tax Withholding calculator specific to my state, similar to the IRS calculator?

I check my federal Tax Withholding amount to date against the IRS calculator every so often to make sure I am paying only a little more than I need to so I’m not loaning the fed. government tons of money.

I would like to be able to check my state withholding to make sure I am not over paying that as well.
I can’t seem to find a reliable source.

I have found some tables, but they don’t take several variables into account. I looked at this weeks pay stub and feel like I have probably payed my state taxes for the year, the payroll dept. has me claiming zero allowances lol. So I have already given the state several thousand dollars.

I know approximately how much I will make this year and would like to figure out if I have given the state enough of my money.

Answer: I would suggest you read Pub 15, page 35, 36 and so on… to understand how they calculate your withholding.

1/- For example:

You are single, zero allowance, weekly paycheck.

You have 800.00 gross pay every week.

Look at page 36, table 1, you income falls into $704 ——— $1,648

So then your withholding :

$91.40 + 25% ( 800 – 704 )

$91.40 + 25% * 96.00 = $91.40 + $24.00 = $115.40, this is your withholding.

Or you could look at page 39, there are more tables for you.

Here it is :

http://www.irs.gov/pub/irs-pdf/p15.pdf

This is for Federal withholding only, no State, sorry!

2/- Another way is this web site : www.paycheckcity.com, I have believed you knew it from this forum. You can try both ways to see which one is the right answer. You can have State withholding in here too.
State withholding is always different, each State has its own way to calculate, it is not general like Federal. I hope someone will show you another website.

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Question: steps to make my business a legal one?

Even though I have read and read about how to open your own business, I am still very confused as to what the steps are.
I know I need to open an account with the SBA. I know I need to register the name with my state. I know I need a tax id or EIN # (is there a difference between the 2).

What is the first thing I would need to do? How much would it cost my business to do all this?
To be more specific, me and my partner are working together as photographers and we would like to make it legal. We don’t have a set location, as we work on the location the client chooses.
Please if you have any information you can provide, I would really appreciate it.
And please refrain from looking this online and give me links. I need real information from people who know what they’re talking about.
Thanks in advanced.

Answer: You don’t need to do the account with the SBA but you do need to register with the state you live in. A form will be needed that you write down the name of your business, who the owner is, if you’re a sole proprietorship or a partnership, etc. And you get an EIN# which is your tax ID (at least it is for PA and WI).

Here’s info for each state, it actually works very well (yes, I know you said not to send any):

http://www.sba.gov/hotlist/license.html

Every state differs. Since I sell at events or out of my home via internet sales, I needed a mobile sellers permit. A mobile sellers permit in WI cost me $10, it renews automatically each year for free, and I owe sales tax at the end of Jan. for the previous year.

A mobile sellers permit for PA where I do one event cost me $15 and renews automatically for free, but I have to file sales tax twice a year.

I just contacted the IL revenue dept. this afternoon about getting a business license to do one show down in Chicago in November–he walked me through the website and I printed out the 4 page form, state sales tax on that is due every month, but since it’s a one time event I just need to call after the event and suspend the license till I need it in IL again. It’s a free thing with IL, which is good, it offsets me having to report zero taxes collected for the other 11 months and I don’t have to worry about upkeep of the license.
This was the main site he guided me towards:

http://business.illinois.gov/tax_info.cfm

Then he had me search for the form REG-1 which is the request for a business license (here) —

http://www.revenue.state.il.us/taxforms/reg/reg1.pdf

That was all I needed to get started in Illinois. Free, easy, just fill out the 4 pages and send it in.

For a ‘brick and mortar’ actual physical store or rental property to work out of, you have to check with your local city ordinances about licensing and fees, inspections (by the fire dept. mostly), etc.

Open yourself a business account at the bank and get checks for that. That keeps your personal finances separate from the business ones.

And a tax preparer can help you with the forms at tax time.

Question: Can i apply for a EIN if i am an individual health care aide?

I have multiple elderly people that i look after in the state of Florida. I am considered to be working for myself as i have to file a a form 1099 and i also have alot of childcare jobs that i do as well. Can i apply for a EIN? If so how do i go about doing it in the right way

Answer: If you are self employed and have no employees then you do not need an EIN your social security number serves the same purpose.

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Question: Cellular One problem?

I tried to log in to the Cell One Usa website and it needs the “Last 4 of the SSN or,
Federal Tax ID” What is that?

Answer: they’re asking for the last 4 digits of your Social Security Number (SSN). Federal Tax ID is for company cell phone plans.

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Question: For those that hate the new high alcohol tax so much……………..?

Why dont you just stop buying the alcohol if you hate the high taxes and prices of it so much? Why do the people that complain about the high alcohol and cigarette tax act like they can force or strongarm businesses to lower the prices. If its their store they can keep the price at whatever they want. Why do you act like booze and cigarettes is a right? Instead of buying garbage, why not buy healthy things like vegetables and water and live a healthy life?
I heard that now or very soon there is going to be a new record high tax on alcohol like they are now doing with the cigarettes.

Answer: Small amounts of alcohol are not unhealthy, and there is some evidence of health benefits for small quantities of red wine (and possibly other drinks).

Your question is quite naive, people drink, and smoke because they like to. I dont smoke, but I do sometimes drink. People make choices, and alcohol is one choice that millions of people make, and enjoy. Why should I only buy vegetables and water? Why shouldnt I buy fine wine, or a nice car, or a nice house, or anything else I want?

There should be a range of taxes, sales tax, income tax, alcohol tax, fuel taxes. People dont complain about alcohol and cigarette taxes as such, they complain when those taxes are disproportionate.

It is worth remembering that places with very high tobacco and alcohol taxes see huge levels of smuggled or grey imports.

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