Comments on: Self Employment Tax http://frugaldad.com/2009/03/30/self-employment-tax-lessons-learned/ Money Saving Insights: Coupons, Smart Spending and Promotional Codes Mon, 13 Feb 2012 05:38:35 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Tony http://frugaldad.com/2009/03/30/self-employment-tax-lessons-learned/#comment-45539 Tony Sat, 18 Sep 2010 23:23:33 +0000 http://frugaldad.com/?p=2122#comment-45539 Hello, Looking for a little insight as to what business structure would suit me best. I understand that the best advice always comes from CPA's and tax lawyers, but generally, if I knew that my business would generate a net profit of $30,000-$35,000, would I be better off as a sole proprietor or an S-Corp? Since I will be doing this full-time as my livelihood, the 15.3% SE tax on top of state/fed taxes is very intimidating. I feel like I would be better suited as an S-Corp, but maybe the SE tax isn't as bad as it sounds when you consider that half of it gets written off. Hello,

Looking for a little insight as to what business structure would suit me best. I understand that the best advice always comes from CPA’s and tax lawyers, but generally, if I knew that my business would generate a net profit of $30,000-$35,000, would I be better off as a sole proprietor or an S-Corp? Since I will be doing this full-time as my livelihood, the 15.3% SE tax on top of state/fed taxes is very intimidating. I feel like I would be better suited as an S-Corp, but maybe the SE tax isn’t as bad as it sounds when you consider that half of it gets written off.

]]> By: Weekly Roundup: Tax Lessons Learned http://frugaldad.com/2009/03/30/self-employment-tax-lessons-learned/#comment-40123 Weekly Roundup: Tax Lessons Learned Thu, 15 Apr 2010 09:01:22 +0000 http://frugaldad.com/?p=2122#comment-40123 [...] (we just recently bought our home) or credits, saving 25% of my side income was not enough to cover self employment taxes. From now on, I’ll be saving one-third of my income and making higher quarterly [...] [...] (we just recently bought our home) or credits, saving 25% of my side income was not enough to cover self employment taxes. From now on, I’ll be saving one-third of my income and making higher quarterly [...]

]]> By: Brian http://frugaldad.com/2009/03/30/self-employment-tax-lessons-learned/#comment-37662 Brian Mon, 08 Feb 2010 05:35:22 +0000 http://frugaldad.com/?p=2122#comment-37662 Re: Jay You should definitely contact a CPA to consult and prepare your taxes this year. You have a complicated situation and a certified public accountant could help you. Just Google CPA (your zip code). Re: Jay

You should definitely contact a CPA to consult and prepare your taxes this year. You have a complicated situation and a certified public accountant could help you. Just Google CPA (your zip code).

]]> By: Jay http://frugaldad.com/2009/03/30/self-employment-tax-lessons-learned/#comment-36990 Jay Thu, 28 Jan 2010 07:30:43 +0000 http://frugaldad.com/?p=2122#comment-36990 I'm self-employed but not. I work for a foreign consulate on USA territory, but I am an American citizen. Because of this the consulate pays me but does not take out my taxes, this is something I was responsible for, I never received my pin (even after calling and refilling my info several times), and haven't made a payment the whole of last year. I very frightened about what I owe, and any penalties that are going to accrued on top of that, plus, I live in a state that requires state taxes as well. I don't know how any of this works, and the consulate is absolutely useless, all the Americans in the office say they just come to expect having to pay now...I just need help and I don't know who to contact for direction on filing my taxes this year. I’m self-employed but not. I work for a foreign consulate on USA territory, but I am an American citizen. Because of this the consulate pays me but does not take out my taxes, this is something I was responsible for, I never received my pin (even after calling and refilling my info several times), and haven’t made a payment the whole of last year. I very frightened about what I owe, and any penalties that are going to accrued on top of that, plus, I live in a state that requires state taxes as well. I don’t know how any of this works, and the consulate is absolutely useless, all the Americans in the office say they just come to expect having to pay now…I just need help and I don’t know who to contact for direction on filing my taxes this year.

]]> By: How to Create a Personal Finance Firewall | Frugal Dad http://frugaldad.com/2009/03/30/self-employment-tax-lessons-learned/#comment-33617 How to Create a Personal Finance Firewall | Frugal Dad Wed, 11 Nov 2009 10:02:26 +0000 http://frugaldad.com/?p=2122#comment-33617 [...] with business activities hit my bank firewall account I immediately initiate one transfer to my self employment tax sinking fund for roughly one-third of the gross amount. The remaining amount is transferred to my [...] [...] with business activities hit my bank firewall account I immediately initiate one transfer to my self employment tax sinking fund for roughly one-third of the gross amount. The remaining amount is transferred to my [...]

]]> By: JMGN http://frugaldad.com/2009/03/30/self-employment-tax-lessons-learned/#comment-29160 JMGN Wed, 29 Jul 2009 16:20:47 +0000 http://frugaldad.com/?p=2122#comment-29160 I was layed off end of May and will start working on a contract basis in a few weeks. As I sit here on hold to collect unemployment benefits for the first time in my life, I am wondering what will happen if my contract ends and I have no work. Will the NJ state tax I pay include unemployment insurance? Or do self-employed individuals have no claim to unemployment benefits? I was layed off end of May and will start working on a contract basis in a few weeks. As I sit here on hold to collect unemployment benefits for the first time in my life, I am wondering what will happen if my contract ends and I have no work. Will the NJ state tax I pay include unemployment insurance? Or do self-employed individuals have no claim to unemployment benefits?

]]> By: ladybugz http://frugaldad.com/2009/03/30/self-employment-tax-lessons-learned/#comment-26426 ladybugz Wed, 10 Jun 2009 00:28:45 +0000 http://frugaldad.com/?p=2122#comment-26426 I am an independent contractor for the 1st time, just graduated, I just sent off a payment for the quarterly federal tax due June 15, which was 30% of my net income. What percentage of my net income should I use for California quarterly state tax as self employed? Does anyone know? Thank you for your assistance. I am an independent contractor for the 1st time, just graduated, I just sent off a payment for the quarterly federal tax due June 15, which was 30% of my net income. What percentage of my net income should I use for California quarterly state tax as self employed? Does anyone know? Thank you for your assistance.

]]> By: * Self-Employment, Estimated Tax, and Safe Harbor http://frugaldad.com/2009/03/30/self-employment-tax-lessons-learned/#comment-25946 * Self-Employment, Estimated Tax, and Safe Harbor Fri, 05 Jun 2009 00:46:11 +0000 http://frugaldad.com/?p=2122#comment-25946 [...] Self-employment tax is basically the Social Security and Medicare portion of your taxes.  When you work for someone else, these taxes are withheld on your behalf.  However, as a self-employed person, you’ll have to pay these taxes in addition to income tax. The self-employment tax rate is 15.3%, which consists of two parts: 12.4% for Social Security and 2.9% for Medicare.What Is Estimated Tax? [...] [...] Self-employment tax is basically the Social Security and Medicare portion of your taxes.  When you work for someone else, these taxes are withheld on your behalf.  However, as a self-employed person, you’ll have to pay these taxes in addition to income tax. The self-employment tax rate is 15.3%, which consists of two parts: 12.4% for Social Security and 2.9% for Medicare.What Is Estimated Tax? [...]

]]> By: -> Don’t Forget To Make Your Estimated Tax Payment For Self Employment Income! | Bible Money Matters http://frugaldad.com/2009/03/30/self-employment-tax-lessons-learned/#comment-22879 -> Don’t Forget To Make Your Estimated Tax Payment For Self Employment Income! | Bible Money Matters Tue, 14 Apr 2009 23:10:36 +0000 http://frugaldad.com/?p=2122#comment-22879 [...] also need to pay your state estimated taxes (if your state has income tax) in addition to the self-employment tax of 15.3% (the social security and medicare portion of your tax).    It can be easy to [...] [...] also need to pay your state estimated taxes (if your state has income tax) in addition to the self-employment tax of 15.3% (the social security and medicare portion of your tax).    It can be easy to [...]

]]> By: Bible Money Matters http://frugaldad.com/2009/03/30/self-employment-tax-lessons-learned/#comment-22870 Bible Money Matters Tue, 14 Apr 2009 20:19:39 +0000 http://frugaldad.com/?p=2122#comment-22870 I just finished my first estimated tax payment, and man, that sucks. It's like 15% for federal taxes, 15.3% for self employment tax and then another 7.05% for my state tax. It's enough to make me wonder if it's all worth it! I wish they would just allow me to keep some of my own money! :) I just finished my first estimated tax payment, and man, that sucks. It’s like 15% for federal taxes, 15.3% for self employment tax and then another 7.05% for my state tax. It’s enough to make me wonder if it’s all worth it! I wish they would just allow me to keep some of my own money! :)

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