Comments on: Do I have to pay a self-employment tax throughout the year or just when I do the rest of my taxes? http://www.cdeliascarpitti.com/freelance-editing/do-i-have-to-pay-a-self-employment-tax-throughout-the-year-or-just-when-i-do-the-rest-of-my-taxes Thu, 11 Mar 2010 18:00:59 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: v b http://www.cdeliascarpitti.com/freelance-editing/do-i-have-to-pay-a-self-employment-tax-throughout-the-year-or-just-when-i-do-the-rest-of-my-taxes/comment-page-1#comment-1101 v b Sun, 24 Jan 2010 23:03:59 +0000 http://www.cdeliascarpitti.com/freelance-editing/do-i-have-to-pay-a-self-employment-tax-throughout-the-year-or-just-when-i-do-the-rest-of-my-taxes#comment-1101 The IRS uses a pay-as-you-go system. The requirement to file quarterly estimated taxes has 3 safe harbors. As in, if you meet any one of them, you can wait until 4/15 to pay. #1. Your increased tax bill is less than $1000. #2. You pay in at least as much money via withholding as you owed on your tax return LAST year. #3. You pay in at least as much money via withhold to cover 90% of THIS year's tax bill. If the 1099-misc income is modest and from a part time assignment, then you are probably fine since you could fit within $1000. If you have a wage job, you can increase your withholding to cover the extra tax bill and skip the quarterly forms. You can even just bump your withholding for Nov and Dec and the IRS will never know that you did it late in the year. If your income is increasing from year to year, just look at last year's tax return for the total tax and adjust your W-4 to withhold up to that. <br><b>References : </b><br> The IRS uses a pay-as-you-go system. The requirement to file quarterly estimated taxes has 3 safe harbors. As in, if you meet any one of them, you can wait until 4/15 to pay.

#1. Your increased tax bill is less than $1000.

#2. You pay in at least as much money via withholding as you owed on your tax return LAST year.

#3. You pay in at least as much money via withhold to cover 90% of THIS year’s tax bill.

If the 1099-misc income is modest and from a part time assignment, then you are probably fine since you could fit within $1000.

If you have a wage job, you can increase your withholding to cover the extra tax bill and skip the quarterly forms. You can even just bump your withholding for Nov and Dec and the IRS will never know that you did it late in the year.

If your income is increasing from year to year, just look at last year’s tax return for the total tax and adjust your W-4 to withhold up to that.

References :

]]> By: ? http://www.cdeliascarpitti.com/freelance-editing/do-i-have-to-pay-a-self-employment-tax-throughout-the-year-or-just-when-i-do-the-rest-of-my-taxes/comment-page-1#comment-1100 ? Sun, 24 Jan 2010 22:14:59 +0000 http://www.cdeliascarpitti.com/freelance-editing/do-i-have-to-pay-a-self-employment-tax-throughout-the-year-or-just-when-i-do-the-rest-of-my-taxes#comment-1100 First off, the payer fills out the 1099. You need to send in 15.3% of your net earnings and whatever your estimated income tax on those earnings are every quarter the dates are 4/15, 7/15, 10/15, 1/15. Enclose a check with a completed IRS Form 1040ES. If you have any expenses that apply, you may deduct those from the payments you've received.<br><b>References : </b><br>http://www.irs.gov/pub/irs-pdf/f1040es.pdf First off, the payer fills out the 1099. You need to send in 15.3% of your net earnings and whatever your estimated income tax on those earnings are every quarter the dates are 4/15, 7/15, 10/15, 1/15. Enclose a check with a completed IRS Form 1040ES. If you have any expenses that apply, you may deduct those from the payments you’ve received.
References :
http://www.irs.gov/pub/irs-pdf/f1040es.pdf

]]> By: Dizzy_Lizzy http://www.cdeliascarpitti.com/freelance-editing/do-i-have-to-pay-a-self-employment-tax-throughout-the-year-or-just-when-i-do-the-rest-of-my-taxes/comment-page-1#comment-1099 Dizzy_Lizzy Sun, 24 Jan 2010 21:24:59 +0000 http://www.cdeliascarpitti.com/freelance-editing/do-i-have-to-pay-a-self-employment-tax-throughout-the-year-or-just-when-i-do-the-rest-of-my-taxes#comment-1099 Pay quarterly income taxes or you’ll be hit with a penalty when you file next year. http://www.irs.gov/faqs/faq-kw146.html <br><b>References : </b><br> Pay quarterly income taxes or you’ll be hit with a penalty when you file next year.

http://www.irs.gov/faqs/faq-kw146.html

References :

]]> By: tonalc2 http://www.cdeliascarpitti.com/freelance-editing/do-i-have-to-pay-a-self-employment-tax-throughout-the-year-or-just-when-i-do-the-rest-of-my-taxes/comment-page-1#comment-1098 tonalc2 Sun, 24 Jan 2010 20:58:59 +0000 http://www.cdeliascarpitti.com/freelance-editing/do-i-have-to-pay-a-self-employment-tax-throughout-the-year-or-just-when-i-do-the-rest-of-my-taxes#comment-1098 Since it's your first year, you'll just pay it at the end of the year. Don't forget, you'll be able to take a lot of deductions as a self-employed worker. And depending on your income, next year you may be required to pay quarterly. I highly recommend you use a tax preparer, especially for your first return; there are lots of pitfalls that can occur. <br><b>References : </b><br>Self-employed Since it’s your first year, you’ll just pay it at the end of the year. Don’t forget, you’ll be able to take a lot of deductions as a self-employed worker.

And depending on your income, next year you may be required to pay quarterly. I highly recommend you use a tax preparer, especially for your first return; there are lots of pitfalls that can occur.
References :
Self-employed

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