How do i file taxes if i am self employed

how do i file taxes if i am self employed

Answers

Best Answer: If you are hired as an individual (as I expect you are, it means you didn't start a corporation through which to do your nanny work), your employer is responsible for paying employment taxes. If you get a 1099 form from your imployer (instead of a W-2) you most likely don't have tax withholdings and you have to take care of your taxes yourself. You should receive some sort of tax form from your employer (either a W2 or a 1099). If not, you still have to pay your share according to the law, but you should talk to your employer as their payments to your SS get added to your account and effect what you will be able to receive when you retire.

If you are self employed, you have to double the Social Security and Medicare taxes that are normally withheld from your paycheck. However, Nanny's and other household workers are considered employees of the house, and therefore you are only responsible for the normal income taxes.

It's possible (even likely) that your employer is unaware they are responsible for paying the employment tax.

In addition to income tax, you are required to pay 6.2% to SS and 1.45% to medicare. Your employer must pay an equal amount to this.

Since you make so little, however, you are likely to pay very little. You should get most of your taxes back when you file your return.

There are strict rules to figure out

if you can be considered a dependent of your sister. The information to figure this out is on the 1040 Income tax return or here at the IRS website:

To figure out what your taxes are, go here:

You will need to fill out one of the 1040 forms. They contain instructions and worksheets to help you figure it all out. Take your time and fill it out carefully and it's really not too difficult.

You do need to make tax payments to the IRS. If taxes are not withheld you need to make estimated payments quarterly. (This is done in April, June, September and January. Payment usually needs to be accepted by the IRS before the 15th or the next business day if the 15th is a holiday or weekend.) Each payment should be 1/4th your expected total tax owed.

If you didn't do it this year, don't worry too much. You can reconcile it all when you file your taxes (Do it now! You want to be done plenty of time before April 15th.)

For estimated taxes you are required to pay either 100% of the tax you owed the previous year or 90% of what you owe this year by the last payment date (so for 2007, the last payment is done in January of 2008)

here is information on estimated taxes:

It is complicated and it is a lot of information, but take your time, don't procrastinate and you can do it.

Source: ph.answers.yahoo.com

Category: Taxes

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