when i file my taxes for being self employed (i havent paid anything in) and i owe 3,000 but they owe me 6,000 because of child tax credit do i have to pay my 3,000 then they give me 6,000 or do they just give me 3,000 without me paying anything
2007-12-27 15:17:19 · 4 answers · asked by dusty 1 in Business & Finance ➔ Taxes ➔ United States
all that will automaticly be fixed when it goes to the IRS so don't worry if they owe you then they will get it to you but if you owe them they will want it asap hope this helps.
2007-12-27 15:26:00 · answer #1 · answered by army_hotsoldier 1 · 0⤊ 0⤋
It will show a refund of $3000 on the tax return. You do not pay your self-employment tax and then get a refund. Your tax is calculated, then your SE tax is added to that. The credits are them calculated and the tax subtracted from them. Take a look at a 1040 to see the flow of how you are taxed.
If this is your first year in business, it might be a good year to let a tax professional do (or just check) your tax return. They'll give you some good advice on what you can and cannot deduct, and how to save on taxes. Plus, if you have purchased business property or equipment, you might be looking at depreciation, which can get tricky if you're not familiar with it. Most experienced tax professionals will give your return a 'Second Look' or a 'Double Check' for a minimal fee. Well worth it if it gives you deductions you didn't know about, or keeps you from IRS troubles.
2007-12-30 08:00:09 · answer #2 · answered by Katie Short, Atheati Princess 6 · 1⤊ 0⤋
Your tax is the net of what you owe and what they owe you, so as long as you don't still owe from previous years, you could still get your money. But If you haven't paid anything in and only owe $3000 including self-employment tax, you wouldn't have $6000 coming for child tax credits. The child tax credit can only reduce your tax to zero, and doesn't offset the self-employment tax. Recheck your figures, or post again here with your net income amount from self-employment and the number and ages of your dependent kids, and also your filing status.
2007-12-27 23:33:03 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
Are you stating that you owe taxes from previous years?
To answer your question…if you OWE the IRS and it is ongoing and you will be benefiting with a refund this year, once you file they will quickly deduct the monies owed to them. And if applicable send you a letter stating their findings and send inform you that a check will be processed in so many weeks.
2007-12-28 00:42:17 · answer #4 · answered by momtojunebaby 4 · 0⤊ 0⤋