My husband a trucker and considerd and independent contractor. They do NOT take taxes and the like out of his paychecks. How do we go about paying the tax? We were told we needed to file paperwork every 3 months and that we should be holding x amount back, but what paperwork we need to file and how much to hold back is a mystery. Do we have to have an accountant or can we just do this ourselves? ANY information would be helpful. Thanks!
2006-08-29 07:10:12 · 7 answers · asked by JL's Mom 3 in Business & Finance ➔ Taxes ➔ United States
We have an accountant now and she is taking care of that aspect AND our household bills-the problem is our morgtage is repetedly late and there have been a few times the utilities have been turned off on us. I was just wondering if we could do this ourselves or if we should just let her keep handleing things?
2006-08-29 07:21:34 · update #1
To file ourselves what forms do we need and where do we get them?
2006-08-29 07:22:25 · update #2
Does the size of the household have any effect on this??
2006-08-29 07:50:48 · update #3
Call your nearest IRS office and request Estimated Tax Forms.
They will automatically send you forms for 2007.
You still have time to receive them before your next Estimated payment, due this September 15.
If not received in a few days, call again.
If none are received before Sept. 15 deadline, You can send a check to your IRS located in your state. Be sure to write on the check your Social Security number, and "Estimate 2006".
Be sure your current address and phone # is on the check.
Your next payment is due by Jan. 15, 2007, for 2006. You should have forms by then.
If you owed Estimated tax for previous quarters in 2006 and not paid them, you should calculate those and send 1/2 of the past due amount on Sept. 15, plus the regular estimate and 1/2 with the Jan. payment. Due Jan. 15, 2007.
If you are not able, nothing you can do, except to pay in Jan. If not then, in April filing.
One critical point. One is required to pay 90% of the taxes paid in the previous year, if this year's wages are more than or equal to last year.
There can be penalties assessed for failure to make timely, quarterly estimated payments.
As an independent contractor there are or should be expenses that are allowed as deductions, such as lodging and meals on the road. If one owns the vehicle, all repairs and operation costs are deductible. Receipts are necessary for verification.
You may need a CPA.
2006-08-29 07:41:29 · answer #1 · answered by ed 7 · 0⤊ 0⤋
You can file the paperwork yourselves, but filing taxes for a business is a long, laborious process. My father is also an independent contractor, and he has an accountant do his taxes for him. If you want to try to do it yourself, you should be able to find the Federal tax forms and instructions at http://www.irs.gov. P.S.: To be on the safe side, he should hold back 25% to 30% of his income in order to pay taxes.
2006-08-29 07:17:28 · answer #2 · answered by sarge927 7 · 0⤊ 0⤋
If you are really lost, an accountant will definitely save the day. If you talk to a good one, you can get advice from him/her on what things you can do for yourself in terms of book keeping, & then you bring the more complicated stuff to the accountant such as filing the taxes with Federal, State, & Local governments.
2006-08-29 07:21:58 · answer #3 · answered by No More 7 · 0⤊ 0⤋
I use a bookkeeper, It makes life a lot easier,when I was doing my own taxes the IRS would want me to refile and audit stuff every 3 or 4 years,and an accountant ended up saving me money.
2006-08-29 07:19:24 · answer #4 · answered by tileboy17 2 · 0⤊ 0⤋
I am an electrical contractor; they say you are suppose to file quarterly.If you know you gonna be operating in the loss column for the first year; just file it at the end of the year. but do keep books on all your expenses and income. keep detailed records, when you know you will be in the profit margin ; definitely start paying quaterly
2006-08-29 07:20:51 · answer #5 · answered by pahump1@verizon.net 4 · 0⤊ 0⤋
You need an accountant....You will also need to find out what kind of contract he has with the carrier he hauls for,,,,You may also have to file individually for different states depending on his fuel consumption, and road use in those states... GOOD LUCK
2006-08-29 07:17:08 · answer #6 · answered by Annie R 5 · 0⤊ 0⤋
the place is the artwork being carried out? If the artwork is being carried out in Bermuda, by using a guy or woman who's neither a US citizen nor a US resident alien, you basically pay them and deduct the expesnse. Ask them to sign a letter stating the above.
2016-09-30 03:26:15 · answer #7 · answered by wichern 4 · 0⤊ 0⤋