Last year I filed "jointly" even tho he had no income. He has been working as an alarm tech since recving his green card and SS#. We have already made one Estimated Tax payment which was due in Sept. I DON'T want to be hit with penalties, but I can't for the life of me figure how to pay his est taxes because we will have alot of deductions when we finally file (jointly) in April. I am a regularly empoloyed Sub. teacher with taxes withheld. I have even changed my witholding (more) to prepare for any payments that might be needed in April. HELP!!!
2007-11-05 05:30:23 · 6 answers · asked by fedupwiththis! 1 in Business & Finance ➔ Taxes ➔ United States
You should seriously see a CPA. It sounds like your return is going to be pretty complicated. You're going to need a Schedule C and you'll have to pay estimated tax payments. Since you have a lot of deductions thrown into the mix, go see a CPA. They will do it right.
2007-11-05 05:39:36 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You are the second one today to get my opinion that an employer is doing a job on you.
I have canned explanation to apparently clueless independent contractors:
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. When you file your income tax return, you can attach Form 8919 Uncollected Social Security and Medicare Tax on Wages and only pay the employer's half of social security. You will still have to cough up all the income tax.
2007-11-05 07:38:42 · answer #2 · answered by Anonymous · 0⤊ 0⤋
1. You filed your 2006 return "jointly" that as Married Filing Jointly because that way you get maximum deduction.
2. For 2007, your husband's self-employment income and expenses will be shown on schedule C (Form 1040). This income is also subject to SE tax at 15.3%. For that you will also file schedule SE (Form 1040) with your joint return.
3. As for the estimated tax payments, you (both) are safe if you make estimated tax payments (including tax withheld) equal to 100% of your tax for 2006.
2007-11-06 21:15:09 · answer #3 · answered by MukatA 6 · 0⤊ 0⤋
It can be complicated for an individual to figure this themself. Hopefully your husband is tracking his income and expenses in some way. Your tax will come down to 15.3% for Social Security. And the income tax will be added to your income to determine the tax bracket. Anywhere from 15% - 39%. This will be figured on the NET income(after deductions). I would try to find a CPA if you don't understand. Too many people get a huge shock near April 15th. Good luck!
2007-11-05 06:09:04 · answer #4 · answered by Connie D 2 · 0⤊ 0⤋
If the total you pay in (estimated plus what's withheld from your pay) equals your total tax liability last year, you won't owe penalties. But you could still owe a lot in tax.
Can you estimate what his business expenses and your joint itemized deductions will be for the year, and figure based on that aboiut what your tax will be, to guide you in your estimates? It doesn't have to be exact, just somewhere close.
2007-11-05 06:41:41 · answer #5 · answered by Judy 7 · 0⤊ 0⤋
Did you have to pay taxes last year?
2007-11-05 05:35:16 · answer #6 · answered by Anonymous · 0⤊ 0⤋