I have a full time job, but i'm about to start a propriatery investment by the side. The invesment does not file any 1099-B with either me or the IRS. However, i've consulted a good accountant and he said i should file quarterly to the IRS using Turbo tax. My question is does this by any chance affect my full time job.(I'm fully employed through W2). I intend to treat this as an separate entity from my full time job. does IRS produce a yearly statement that i can use for my end of the year tax filing. Please advise.
Thanks
JI
2007-02-17 09:53:08 · 3 answers · asked by progress 2 in Business & Finance ➔ Taxes ➔ United States
As an indivudual taxpayer, all income is added up and you file a single return. Your accountant has already explained that to you.
If you expect additional income not subject to withholding you can either make quarterly estimated tax payments OR instruct your employer to withhold additional taxes from each paycheck to cover your expected tax liability. Your accountant should have already expalined that to you as well.
The IRS does not supply you with statements of your income, the payer of the money does that. If those informational forms are not supplied by the payer, you must keep detailed financial records of the transactions for preparing your tax returns. Your account should have explained THAT to you as well.
If none of this was explained to you by your accountant, it's time to find another accountant!
2007-02-17 10:12:39 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
You'll still be getting the W-2, this venture won't affect your full time job. You'll file one tax return with both the full-time job and the investment venture, assuming you are not planning to incorporate the side business.
The IRS will not give you a yearly statement for your tax filing. You'll have to keep records through the year, and use that for filing. You've taken a good first step by talking to a good accountant. Ask him or her what records you should keep.
2007-02-17 12:48:01 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Paying estimated taxes quarterly has absolutely no bearing on your job. The withholding from your job is supposed to cover the taxes from that job. If you have a large amount of other income from sources other than your job, you need to either increase your withholding to cover the taxes on that additional income, or make estimated tax payments.
The IRS does not provide you with an annual statement showing what you have paid in. It is up to you to keep track of the amount of payment you made, plus when it was made.
2007-02-17 09:59:59 · answer #3 · answered by jseah114 6 · 0⤊ 0⤋