tax income reporting question - my wife made a little income on the side with a tupperware party type business

Question

they pay her through some company called propay

she has an itemization of her total earnings through them and of her expenses.

is this enough information to give the accountant?
they dont seem to issue any kind of official W2
it doesnt seem there was any witholding taken.

Answer 1

If she kept all of her sales receipts/reports, turn those in to your accountant. I did this with Avon and was able to write it as a loss when we itemized.

Answer 2

It is enough to take to the accountant. She didn't have any withholding or Social Security or Medicare withheld because she's considered to be self-employed and will have to pay Self-employment tax on part of her profit.

You should still be okay, this year, because they won't penalize you for paying in too little if you paid in as much as you did in 2005 on your withholding.

If you do end up owing tax this time, you'll want to adjust your W-4 so as to have a little more withheld during the year, if she's going to stick with the party business thing. If you don't want to do that, she can set up a small savings account with about 10% of her earnings through the year and then if it isn't needed for taxes, she'll have a little "rainy day fund" going.

Answer 3

a million) there has be pastime in contact because it quite is the regulation. no remember if of not you actual pay it your chum could declared declare pastime. The pastime cost relies upon on long you have the interior maximum loan and modern-day AFR 2) you are able to record sales an fees on a time table "c" Your tax cost will rely on the income. a solid base given which you're beginning yet already have a job is 40% of the income for taxes 3) you're doing this as a enterprise and could collect sales tax on any in state sales 4) you are able to % a enterprise license, extraordinarily in case you paying for merchandising motor vehicle.

Answer 4

Yes, as long as she has the records of income and expenses, that's enough for the accountant to use. There won't be any W-2 or any withholding, since it's considered her own business. She'll owe self-employment taxes of 15.3% (for social security and medicare) on her net from her business, plus whatever income taxes are due.

Answer 5

She would be considered self-employed and should report her earnings and expenses. There would be no W-2 issued as she is considered to be her own employer. She may have to make a payment to Social Security also.

Answer 6

Yes, that's enough info for the accountant.

Answer 7

What stephanie, bostonian and connor g said....it is self employment income which can probably be a C-EZ.


good luck & bless