How do you figure self employment taxes and charitable donations?

how do i figure self employment tax

davew128

[QUOTE=LdiJ;3117795]Still pretty minor Dave. [B]in this instance[/B] the difference is less than 88 bucks.[/QUOTE]I think I highlighted the applicable portion here.

11-28-2012, 12:55 PM

de3ik

[QUOTE=LdiJ;3117795]Still pretty minor Dave. in this instance the difference is less than 88 bucks.[/QUOTE]

88 dollars isn't minor to me at all, because I'm on a fixed income and have very limited funds. That would be a very big difference for me and I need to get this right. Whose figure is truly correct? Yours or Dave's? I really need to understand which figure is correct because if I'm off it would cost me money in my budget that I must account for.

[QUOTE=davew128;3118080]They are? First I ever heard of it.[/QUOTE]

Come on Dave. people who are self employed are supposed to pay estimated taxes in most circumstances. Estimated taxes are paid quarterly. Those estimated taxes would certainly include any self employment tax.

Are you really going to continue to be this pedantic?

11-28-2012, 05:20 PM

tranquility

[QUOTE=LdiJ;3118088]Come on Dave. people who are self employed are supposed to pay estimated taxes in

most circumstances. Estimated taxes are paid quarterly. Those estimated taxes would certainly include any self employment tax.

Are you really going to continue to be this pedantic?[/QUOTE]

As both dave128 and LdiJ know, the fact a person is "self-employed" is irrelevant to if estimated taxes are required. The purpose to be in a "safe harbor" to prevent being penalized for having too little taxes paid in at tax time. The first year of operation in "most" circumstances, a small business will have no requirements to pay estimated taxes if they didn't before. One safe harbor is paying in the same amount of taxes as the year before. This is the usual case for those starting a business absent unusual circumstances or having extremely pronounced. man parts. The pedantic may point out what happens if the amount of income earned is very high or the difference between withholding and estimated payments and their timings.

[QUOTE=LdiJ;3118088]Come on Dave. people who are self employed are supposed to pay estimated taxes in most circumstances. Estimated taxes are paid quarterly. Those estimated taxes would certainly include any self employment tax.

Source: forum.freeadvice.com

Category: Taxes

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