I have a job where i am supposed to take out my own taxes. Well to make a long story short i have not done such a great job of that. So what and i supposed to do when it is time to pay? I know that i will have to pay in but will i have to pay it all at once? or how does that work ? i am clueless lol......Please dont leave any hatefull remarks !
2006-12-26 07:40:20 · 8 answers · asked by bdmrplemons 2 in Business & Finance ➔ Taxes ➔ Other - Taxes
If you have a job where you are a self-employed subcontractor or the like I will give you the following example. You will have to total up your expenses relating to your field of work. Total up your business miles; in 2006 they have a standard federal rate of 44 1/2 cents per mile. You will have to fill out a sch c or cez. Following is an example-----you have a gross income of $ 12,000.00; you have job related expenses of 2,000; on your sch c you put your gross and total expenses which gives you a taxable income of 10,000. First figure out your FICA TAX on 10k. 10,000 at .9235 equals 9,235 times the rate of 15.3% giving you a FICA TAX due of 1,413.
Subtract 1/2 of this; or 707 from the 10,000 to come up with your federal income tax. 10,000 minus 707 is 9,293; from which you subtract your standard deduction amount for single of 5,150; leaving 4,143 from which you subtract your standard exemption amount of 3,300; leaving you 843 in taxable income; fed tax due of $ 84.00. Add to this your FICA TAX amount of 1,413 and you come up with a total due of 1,497. If you are between the ages of 25 and 65 and single and this is your only income you will have an earned income credit amount of $ 210.00 which you can subtract from this 1,497 due for an amount of $ 1,287.00; which you will owe.
If you have children everything changes and you will have a refund due. Remember that this is based on a taxable income of 10k and this was only a simple example. If you want an exact answer give me exact numbers and data and I will figure it out to the penny for you. Have been doing it 36 years so it will just be limbering up practice for me. Regards and yaddah.
2006-12-26 08:05:36 · answer #1 · answered by acmeraven 7 · 0⤊ 0⤋
You will pay in for 2006 all at once by 4/15. Then you should start paying quarterly by 4/15, 6/15, 915 and 1/15. So two things are due 4/15 which will hurt. Do the best you can. The penalties for not paying quarterly is #1 - it hurts to pay all at once and #2 - interest runs at about 8% with IRS until you pay it off on 4/15.
2006-12-26 07:53:39 · answer #2 · answered by spicertax 5 · 0⤊ 0⤋
You're really supposed to pay at the time you file, actually supposed to be filing and paying quarterly if you have much income, but if you don't have the money, you don't have it. File anyway, on time. If you can send part of the money, do that with your return. After they get your return without a check for the balance in full, the IRS will contact you to set up a payment plan. This is pretty common to them. You'll owe interest back to when the amounts should have been paid, and possible penalty for not paying quarterly, but if you don't file when you're supposed to, you'll be subject to additional penalties and it'll cost you even more.
You can get an extension to file a few months after the normal April deadline, but an extension doesn't give you extra time to pay - interest would still be due back to April.
2006-12-26 12:35:42 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
Payment for any tax that is due has to be paid to the IRS by April 15 (and the following Monday if April 15 falls on a weekend). If payment is not submitted by April 15, the IRS will assess late payment penalties and interest on the taxes due until the payment is made.
If you did not have withholding and made no payments on your taxes during the year, you may also be subject to penalties for underpayment of estimated taxes.
2006-12-26 08:18:04 · answer #4 · answered by jseah114 6 · 0⤊ 0⤋
You will have to pay. Your employer should give you a form (i think it is called a 1099 which is just a goverment form). What you will then need to do is take that to an institution that handels taxes or I know someone that does that work on the side and I might be able to help you out.
let me know good luck
2006-12-27 08:05:45 · answer #5 · answered by D R 3 · 0⤊ 0⤋
Well the best thing for you to do is invest in accountant or HR Block they will give you the best advice. You don;t have to pay all at once, but start this project now so you are not freaked once April comes.
2006-12-26 07:43:33 · answer #6 · answered by Teresa 2 · 0⤊ 1⤋
By "take out my taxes," do you mean pay estimates? If so, your 4th quarter estimate is due Jan. 15th, so I'd send some money to the IRS by then.
2006-12-26 13:33:31 · answer #7 · answered by LC 2 · 0⤊ 0⤋
Start saving some now. You actually have until Apr. 15th. Next year look into paying quarterly like you should have this year.
2006-12-26 07:43:41 · answer #8 · answered by Anonymous · 0⤊ 0⤋