I have a full-time job and a part-time independent contractor job. On my full-time job's W-4 form there is a line for "additional money withheld." Can that be used to pay the taxes for the money I make as an independent contractor or does that have to be paid separately quarterly?
2007-10-15 05:09:18 · 7 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
You should keep in mind following information about estimated taxes.
You must pay estimated tax for 2007 if both of the following apply.
1. You expect to owe at least $1,000 in tax for 2007 after subtracting your withholding and credits.
2. You expect your withholding and credits to be less than the smaller of:
*90% of the tax to be shown on your 2007 tax return, or
*100% of the tax shown on your 2006 tax return. Your 2006 tax return must cover all 12 months.
2007-10-15 05:51:51 · answer #1 · answered by MukatA 6 · 0⤊ 0⤋
You could do that--grossly overwithhold on one side to make up for underpayments on the other.
Question for you to think about though:
Some employers try to get around paying employment taxes (social security and unemployment) and other employee benefits like workers compensation insurance by improperly classifying employees as independent contractors. If you are required to show up for work--personally--at a particular time, punch the clock, use the employers equipment and are paid an hourly rate, you are an employee. If you didn't understand the difference when you posed your question, I would be even more convinced that you are an employee. What is your preference, Slotted or Phillips? Complete an IRS Form SS-8 to get an official ruling on your status. This will help you get unemployment if you get fired.
2007-10-15 05:57:05 · answer #2 · answered by Anonymous · 0⤊ 0⤋
First, you are not an exempt payee. The $600 rule is that he does not have to make you fill out the form if you make under $600. If you make under $600, then it is his option (not yours), and he may make you fill out the form, if he wants, but it is his choice. If you make over $600, then he does not have any choice, and he must make you fill out the form, whether he wants you to do it or not. W-4 is a not a way to go without having to pay back taxes for the wages that you have collected. Even if you W-4, you still have to pay income tax for all of the wages that you collected. The only differences between W-4 and 1099 are for other taxes, such as self-employment tax, social security tax, and medicare tax.
2016-04-08 22:28:52 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You can have extra withheld on your W-4 to cover the independent contractor income instead of making quarterly payments.
2007-10-15 06:09:12 · answer #4 · answered by Judy 7 · 1⤊ 1⤋
Yes, you can use that line for that purpose. It is not intended for that purpose, but it will work. Note that your independent contractor income is subject to both income tax AND self-employment tax and that both must be paid through either quarterly payments or payroll deduction.
2007-10-15 08:04:14 · answer #5 · answered by StephenWeinstein 7 · 0⤊ 0⤋
Yes, it could.
Keep in mind that it too is only an estimate.
2007-10-15 05:16:22 · answer #6 · answered by Wayne Z 7 · 2⤊ 2⤋
call your accountant or h&r block and ask them.
2007-10-15 05:17:15 · answer #7 · answered by Anonymous · 0⤊ 6⤋