help with taxes?

Question

every job i have had i have paid taxes on each check i got and at the end of the year i would get back 6000-6500 because i have two kids now i just started a job that does not take them out and i have to file a different form and was told that i would still get money back at the end of the year and to just take what i used to pay in witch was about 1500 and subtract that from what i get witch is 6000 so i am thinking that i will get 4500 to 5000 was i told wrong or wright please help its stressing me out

Answer 1

It sounds like your new "job" isn't a job but a contract gig. As such you are now self employed and will have to pay your taxes yourself from your earnings. You'll have to file Schedule C with your tax return to calculate the net income from the business venture. Then you'll have to file Schedule SE to calculate the Self-Employment taxes at 15.3% of the net income. This all gets transferred to Form 1040 to calculate your total tax liability.

You need to start making quarterly estimated tax payments using Form 1040-ES. You can download that from the IRS website and use the worksheets in the package to estimate your tax liability. Whether or not you'll get any refund will depend upon how much you paid in vs your total liability.

Two things come to mind in your case. First off, with a $6,000 to $6,500 refund you were paying in WAY too much taxes during the year. Making an interest free loan to the government that large is just not very smart. You could have had more than $100 extra every week in your pay and you still would have had too large of a refund coming.

The next item is that if this all stresses you out like you say it does you should seriously consider hiring a tax pro -- a CPA or EA, not one of the tax prep mills like Block or Hewitt -- to help you with your tax planning. You should seek professional assistance to get you started on proper tax planning.

Answer 2

if you have a job that dosen't take out any taxes, you have to pay in either quarterly or at the end of the yr. save away about 30% of your check. as far as claiming children i dont know, i dont have any..