I just got done with my taxes, I have a sole proprietorship and am about to send them in however I earned $212 (according to the government in my eyes I actually lost money). I did not withhold fica or medicare for this profit do I now have to pay it? Or is there a minimum before you have to pay?
2007-04-17 05:57:32 · 3 answers · asked by big_a57 2 in Business & Finance ➔ Taxes ➔ United States
If your net on your schedule C or C-EZ is under $400, you don't owe self-employment taxes which would be social security and medicare, so for this year if your net was $212, then no you don't have to pay.
Better luck next year with your business.
2007-04-17 06:02:57 · answer #1 · answered by Judy 7 · 4⤊ 0⤋
If you used TurboTax or something like that, it would have figured all that out for you. On a sole proprietorship, unless you have been in business a number of years, you almost always show a loss, as it costs more to operate the business than you make as profit.
If you prepared your own taxes without using software, you are taking a chance on missing deductions or deducting more than you are entitled to. If you are filing a 1040, you can do it online free using TurboTax Freedom on the IRS.gov website, and e-file it free.
2007-04-17 06:04:29 · answer #2 · answered by Anonymous · 0⤊ 4⤋
yes. always.
2007-04-17 06:04:25 · answer #3 · answered by perleo 3 · 0⤊ 5⤋