The IRS Audit Blog

Posts Tagged ‘self employment tax’

Question: How do I go about paying quarterly payments for self-employment tax to the IRS? What forms do I need?

I need to know how I go about setting up quarterly self-employment taxes to the IRS? That’s just the 15.3 percent that I have to pay quarterly, correct? I don’t have to worry about income tax and state tax until the end of the year, right?

Answer: You pay quarterly tax on an 1040ES, well, quarterly. It is a payment toward you total income tax.

Different states have their own rules.

PROVISO Community Calendar

The Proviso Herald welcomes items for the Community Calendar as well as for columns including Business Briefs, Campus News, Community Briefs, School Digest and Newsmakers. Items must be received a minimum of 10 days prior to publication; earlier is better. E-mail to oakpark@pioneerlocal.com; fax to (708) 383-3678; or mail to Pioneer Press, 1010 Lake St., Suite 104, Oak …

Self Employment IRS Income Tax Rate Information & Help 2009, 2010.mov

Question: Tax Question – What is a IRS Form W9 or a 1099? (10 points for best/first answer)!!!?

Hey everyone. I am over 18, but have never filled out a IRS Form W 9, which you have to do to enroll in the WCP program to make money on eHow.com. My parents do all the taxes in our house, and I realize this is probably a noob question, but I honestly don’t know what this means…

Can you explain to me what this is all about? Will I be responsible for doing my own taxes now? or?

Answer: A W9 is a request for a tax ID number, which for an individual, is your social security number. This proves you are legal to work the US.

A 1099 is a form companies send out in January each year. It lists how much they paid to their vendors and independent contractors. If they paid over $600 to any non-employee, they are required to send the 1099.

If you receive a 1099 for work performed, you would be considered an independent contractor. This income needs to be claimed on Federal Schedule C. Certain expenses are allowable and can be deducted to arrive at net income. Self-employment tax of 15.3% of net income is paid in addition to income tax. The SE tax is the self-employed person’s social security. And even if you don’t receive a 1099, you are supposed to report the income.

House Panel Approves 1099 Repeal Legislation

The House Ways and Means Committee approved two separate pieces of legislation on Thursday to repeal the onerous 1099 reporting provisions enacted in 2010, with Republicans and Democrats sharply divided over how the bill would be paid.

1018-BKT #35***1099-OID form***accepeptance for value

Question: 1099-MISC form and W-2?

I am doing my boyfriends taxes by printing the forms off the IRS.GOV website…do I include the wages from the 1099-MISC form on the 1040-EZ, or is the 1040_EZ only for W-2’s? On the 1099 the only amounts listed are under non-employee compensation.

Answer: You can’t use Form 1040-EZ. You MUST use Form 1040 plus Schedule C or C-EZ. If the net income on the Schedule C is $400 or more you also need to attach Schedule SE to calculate the self-employment tax.

IRS: More money for some deductions

People who do standard deductions will see more money in their tax returns this year.

Question: I need help sorting out an IRS problem!!!?

My boyfriend is being persued by the IRS because his employer in 2004 filed his W-2 saying he was paid “other income” instead of a wage (like his other employer did the same year). He is here from Australia with a H2a visa working in agriculture. He has filed a form 1040 and has sent documentation to the Irs with copies of his visa and passport. However the IRS now want a schedule SE filled out and sent in. His income was not self employment, the farmer he worked for had to sponser him to even bring him here to work for him. So what can he do? He goes home in October and wants to be able to come back in a few months. Will this affect that? Should he just pay the taxes and move on even though it’s not right? I tried filling out a 1040 NR for him to see if he filed the wrong forms but it came out saying he owed even more in taxes ($900 when with the regular 1040- inlcluding self employment tax-he only has to pay $500 ) please help!!!!

Answer: Tax matters can be exceedingly complicated, even for residents. I suggest you contact a tax attorney.

2009 Tax Changes for the Self-Employed

NASE Offers Self-Employed Tips for Getting a Jump on the Filing Season

TurboTax Rap Contest

Question: How do I use the $3,000 deduction for childcare? Would there be increased risk of an audit?

My mom has been coming to my house to help me babysit while my wife and I work. I’ve been giving her cash to reimburse her for food and gas. It probably came out to $3600 for the year.

I just found out that I could claim $3,000 for childcare expenses. Is this the same situation as a household employee? Was I supposed to keep careful records and deduct social security or unemployment taxes? If I claim the deduction, my mom will need to claim the income. Would that expose us to additional risks of an audit? Is it worth the extra hassle and paperwork?

Answer: You will have to report her name address and SS# to the IRS on form 2441. They will use this to check that she claims the income on her return. She will have to file a Schedule C and the income will be subject to self employment tax and income tax. She will be able to deduct any expenses she has on the Schedule C.

Iplayco Announces Financial Results for the Year Ended September 30, 2009

LANGLEY, BRITISH COLUMBIA– – Iplayco Corporation Limited today announced its financial results for the year ended September 30, 2009. All amounts are in Canadian dollars unless otherwise noted.

high risk areas are not being audited