Self --employment taxes..I need HELP PLEASE!!?

Question

I am currently working as a nanny and I was wondering how you go about doing your own self-employment taxes. I need as much information as possible!!! thanks

Answer 1

Are you working as a nanny for someone in their home? Are they paying you over $1,000 every three months or over $1,500 per year? If you are working solely for this employer as a nanny in their home, for their children, you are not self employed but an employee of this family. Therefore, your employer must withhold 7.65% from your pay for social security and medicare taxes. As your employer, they must pay in the other 7.65% quarterly. Please see the reference page at the irs for more information and good luck.

Knowledge is power and knowing what the laws are regarding your profession will only benefit you. Go to www.irs.gov or to www.naea.org for a listing of tax professionals in your area who will be able to assist you.

http://www.irs.gov/taxtopics/tc756.html

Answer 2

You'll show your income, and and associated deductible expenses if you have some, on a schedule C or more likely C-EZ. Then you'll fill out a schedule SE to calculate your self-employment tax. The numbers from the bottom of both of those schedules will transfer to a form 1040.

Download all of those forms from irs.gov and take a look at them now, so you know what you'll need to do.

You should be filing a form 1040ES quarterly, since taxes aren't being deducted from your paychecks. If you don't, you could get hit with penalties at the end of the year for under-withholding, and also have a large tax bill then.

The responders who say that if you are working in their home, you are most likely really an employee and not an independent contractor are correct. Talk to the parents about this and let them know that what they're doing is not legal by IRS rules.

Answer 3

First, the idea of paying taxes and getting them back makes no financial sense. If no tax is owed, do not pay any. You need to keep track of your business income and your business expenses and the difference between your business income and your business expenses is the taxable amount you will pay income tax and social security ( aka self employment tax) Second, the business expenses in 2011 are not written off in 2011 and they will be in 2012 and 2013. Third, go on line at irs.gov and read the publication " starting a business) and educate yourself as to what the requirements are when someone starts a business. Yes, you can hire a professional too but equally important is the fact you need to know the requirements to be met for tax purpose.

Answer 4

We have taxes from 2005-2006 that the IRS says we owe for because we did not file we are trying to file to get everything done right and we are at a standstill because we can not afford to pay to get them done we really need help (self-employment taxes)

Answer 5

Go to IRS.gov and look there for reference material that will answer your questions. Best for you to set aside at least 35% of each paycheck to cover your taxes (city, state, federal, social security and medicare).

You can also call the IRS and they will tell you how to get the information you need. Look in your phone book under federal government offices for the IRS.

Or wait until later this year and for $400 or so, take the H & R Block tax course where you will learn how to do this and more. I took the course several years ago when I had my own business too. It really helped.

Answer 6

Meg is correct. I would add one suggestion. Talk with the parents you are working for and get this resolved now. You can't assume they will file and pay the social security/medicare taxes. An ounce of prevention, you know. It's better to resolve this now, than next April, when the amount of taxes is much higher.