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| *Ostroff, Fair and Company>>>Other Taxes |
I need help with my taxes please. I work as an independent contractor? |
I made in one company 19,000 and 8,000 on the other, neither of these companys witheld taxes, when i do my taxes about how much will i have to pay back i also have a one year old and my wife. please help this will be my first time filing with having to pay back should i also take my receipts for milege. ty Great Answers so far! You are off to a great start. Believe it or not, you also need information from your 2004 return. You need to know how much you paid to the IRS in Taxes. It is found on the 1040, 2004, on line number 43. You need this because you must determine if you have an underpayment penalty. BTW, you dont want one do you? If you paid in more than 90% of what you owe this year, you will not pay any penalty. To avoid this penalty next year, for April 2007, you need to pay quarterly taxes this year. Your first quarterly is due April 15. Surprize! The quarterly payment should be one quarter of your this years total tax, if it appears that you are going along with about the same amount of income as last year. Your quarterly will be 150, maybe, see below. Yes, you are going to enter the 27,000 on a Schedule C. Yes, you need to get a look at a Schedule C and see all the possible deductions you can take. Start with your car deductions. In general, you have to determine whether you will use the total number of business miles X the government rate or use the actual expenses including depreciation for the driving the business miles. Which do you think is easier? You guessed it the government rate. It is per business mile!! Ok it is tricky. in the first 8 months, it is 40.5 cents per mile. After Sept. 1, it is 48.5 cents per mile. See the government actually thinks you have been keeping track in writing. Not the reciepts, the actual NUMBER of miles. If you need help, let me know. Anyway, you get all the expenses you can because you want to reduce the income on the Sch C. All the C income is taxed as Self Employment tax of about 15.3%. Then the income goes back to the front of your 1040 and flows from there. So, on my computer, ProSeries, also from Intuit, but not TurboTax, assuming all the best and no penalty for underpayment and 10,000 business miles, your wife had no income, you had no interest income, and nothing else either plus or minus, AND you are at least 25 years old!!! you owe $598 for 2005. Be sure to send in the quarterly of 150!! There is a special form for it so that it gets properly credited. If both of you are not at least 25, let me know. If you or your wife are were at least 25, on December 31, go in peace. BTW, you may want to very soon get your tax taxes going and get them finished off too. Meanwhile, I hope I was some help. If you want to contact me feel free. If you are wondering why I wrote and take the time to put it on my machine, I just didn麓t want you to get scared at the sight of $3500.00! I know my wife and I would not have liked seeing that!! Good Luck. Source(s): Intuit ProSeries. It looks like you're going to owe about $3500 on Federal, most of it in Self Employment tax,unless you can itemize. Your income as an independent contractor goes on Schedule C. You can reduce the amount you owe by writing off your work related expenses on the Schedule C. buy TurboTax for $20.00 ... looks like you will owe FICA tax, but I am guessing that federal tax will be wiped out by child care credit of up to $2000. |
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