Tax Question?

Discussion in 'General' started by michaelandmeganc, Sep 4, 2012.

  1. michaelandmeganc

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    If any of you that have been doing this a little while, could you please explain the process of filing your taxes, if your making so much money? I'm in the United States of coarse.

    Thanks
     
  2. Playa_hamm420

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    I would suggest you talk to a tax professional when the time comes.
     
  3. petegq

    petegq User

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    Look up 1099MISC On google. If you made $600 or more from one requester you have to file that tax form, requesters send you forms in the mail.
     
  4. Flora

    Flora Admin
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    I googled and found this:

    •At least $600 in rents, services (including parts and materials), prizes and awards, other income payments.

    Does this have to be from a requestor totalling over $600? What about overall combined income in one year of $600 or more, not necessarily from one requestor? There are many requestors and it's possible to get over $600 from let's say 20 requestors but let's say not one requestor gave you $600 alone?
     
  5. jTurker

    jTurker User

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    Regardless of whether or not you get a 1099 you are responsible for including any additional income made from MTurk on your tax return. You are considered to be an independent contractor and are responsible for paying all due taxes, federal and state. Now if this is your only source of income and you dont make more than whatever the minimum to file is then its no problem. I personally would follow Playa's advice and consult a tax professional.
     
  6. petegq

    petegq User

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    There is no state tax for self-employed just federal I would suggest that you consult a tax professional too sir.
     
  7. atkins

    atkins User

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    State taxes vary by state. This, as a blanket statement about state taxes, is not necessarily true. Check with a professional.
     
  8. jTurker

    jTurker User

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    Maybe not in your state, but regardless its your responsibility either way.
     
  9. schlep

    schlep User

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    I'm new to this, but have been 1099'd for about six years now. If you do your own taxes, the only real difference is that you can't use an EZ form, only 1040 or 1040A. You'll need two other forms a Schedule C or C-EZ form and a Schedule SE. If you use a tax person, it doesn't matter much. If you use tax software, you'll have to pay up for more than the free version.

    As for State tax, I can say for the state of CA you will still be taxed and will be expected to file tax forms.
     
  10. petegq

    petegq User

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    When you're self-employed, you sometimes have to pay taxes a lot sooner than April 15 of next year. The IRS requires any self-employed individual who paid tax for last year and expects to pay above a certain threshold for this year--for 2010, the level is $1,000--to pay estimated taxes in advance. If by April 15, June 15 or September 15, you can see your tax will reach the threshold, you have to file on those dates. If you reach the threshold after September 15, you need to file estimated taxes by January 15 of the following year. Make the estimate as accurate as possible. The IRS can penalize you if you're too high or too low.

    Read more: Self Employed Taxes & Savings | eHow.com http://www.ehow.com/about_7385595_self-employed-taxes-savings.html#ixzz25aCffHbv
     
  11. petegq

    petegq User

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    Damn taxes so friggin annoying I;m calling my tax lady tommorrow
     
  12. 2muchTurkin

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    whats the problem? I am not a tax preparer but I am very good at doing my own.
     
  13. petegq

    petegq User

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    It's saying if I reach the $600 threshold by june 15 and september 15 I have to file again, or else have penalties added to the amount. If thats true I'm sure I missed the june 15 deadline.
     
  14. 2muchTurkin

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    I've never had to file under self employed before. Not sure what the limits and requirements are there. Guess I should read up on them since I am turking now. Never heard of reaching a certain amount by a certain date before. That sounds crazy.
     
  15. petegq

    petegq User

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    Everybody should call their tax person or visit them and post your responses, because I'm reading there is quarterly deadlines for the self employed throughout the year.
     
  16. petegq

    petegq User

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    Do you have to pay throughout the year ? Cuz I'm reading that you do..

    http://www.budgetsaresexy.com/2012/06/do-you-have-to-pay-quarterly-taxes-outright/
     
    #16 petegq, Sep 4, 2012
    Last edited by a moderator: Sep 4, 2012
  17. Khalinov

    Khalinov User

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    If you expect to owe > $1000 when you file next year’s return, you must pay estimated quarterly earnings.

    So $1000 / .153 (the self-employment tax rate) = $6535.95 (because $6535.95 * .153 = $1000)

    When you have earned $6535.95 for the year, then you can start worrying about crossing the threshold for paying estimated federal self-employment taxes. If you earn less than that, you can wait until you file your return. If you have deductions, you can likely earn more before you are liable.

    ref: http://www.moolanomy.com/857/self-employment-estimated-tax-safe-harbor/

    This simple example assumes all your income comes from AMT. If you have other income / employment, please feel free to contact a tax professional.

    The information contained within this post is provided for informational purposes only and is not intended to substitute for obtaining accounting, tax, or financial advice from a professional accountant. Presentation of the information via the Internet is not intended to create, and receipt does not constitute, an accountant-client relationship. Internet subscribers, users and online readers are advised not to act upon this information without seeking the service of a professional accountant.
     
    #17 Khalinov, Sep 5, 2012
    Last edited by a moderator: Sep 5, 2012
  18. petegq

    petegq User

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    Oh ok I'm not close to those earnings thanks
     
  19. michaelandmeganc

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    Ok guys, so I'm a newbie to all this. So how much do you guys put aside for taxes each week if your making roughly $100.-$250. a week?
     
  20. Chytay

    Chytay User

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    Also, don't forget you can deduct legitimate expenses. Percentage of internet cost, repairs purchases of equipment, supplies, etc. Just don't be fooled into going for the office in home deduction. That's a red flag to the IRS.

    If you or your spouse has a W2 job, just have a little extra taken out of their check. That should cover your taxes at the end of the year.

    A big bummer, you are also responsible for the full SS load when you're self-employed.
     

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