How does this work?
I've never had a job that doesn't withhold taxes so how many hours per week is safe to take without having to pay out the wazoo at the end of the year??
BrandNewMan · 61-69, M
I had this for awhile early in my working life before/ during college as I was paid in cash for farm and day labor type work as a large component of my earnings.
Talking with an accountant is best. What that involved for me was having a good projection of total compensation for the year. From there, looking at what that would mean for Federal /State/Local Taxes, Social Security and Medicare. You likely need to make quarterly payments aligned to your pay in each quarter over the year to avoid penalties.
Talking with an accountant is best. What that involved for me was having a good projection of total compensation for the year. From there, looking at what that would mean for Federal /State/Local Taxes, Social Security and Medicare. You likely need to make quarterly payments aligned to your pay in each quarter over the year to avoid penalties.
Tumbleweed · F
@BrandNewMan Thank you!
samueltyler2 · 80-89, M
Are you being paid as an independent contractor? If so you will end up getting 1099 from them. I don't think they will deduct for you. You may need to file quarterly estimated taxes. It is best to consult an accountant for advice. Just realized, then you also have to remember to send money for social security and Medicare.
Tumbleweed · F
@samueltyler2 Yes, a contractor & thank you for the info!
samueltyler2 · 80-89, M
@Tumbleweed In my early years i got hit hard with taxes and penalties, then i realized the consultation income was going to be seen and then taxed.
ChipmunkErnie · 70-79, M
4meAndyou · F
"Self-employed caregivers can deduct business-related expenses such as supplies, mileage, training, home office costs, and health insurance to reduce taxable income and offset self-employment tax.
Who Qualifies as a Self-Employed Caregiver
You are considered self-employed if you provide care services directly to clients and receive payment as a sole proprietor, independent contractor, or single-member LLC, rather than as a household employee with a W-2. You control your schedule, work conditions, and payments, and are responsible for reporting income and paying self-employment tax, which covers Social Security and Medicare."
agingtoday.com
You will be responsible for state and federal taxes.
Who Qualifies as a Self-Employed Caregiver
You are considered self-employed if you provide care services directly to clients and receive payment as a sole proprietor, independent contractor, or single-member LLC, rather than as a household employee with a W-2. You control your schedule, work conditions, and payments, and are responsible for reporting income and paying self-employment tax, which covers Social Security and Medicare."
agingtoday.com
You will be responsible for state and federal taxes.
4meAndyou · F
@Tumbleweed The absolute best thing you can do is find out what percentage of your pay is taxable by the state in which you live, and then find out the same for federal government.
Keep you deductions as high as possible without being dishonest...😉..but the nice thing is that you can deduct health insurance from your wages.
I don't know about a home office. If you have a tiny space that you use to store a filing cabinet and a desk and your phone, and you use it for business ONLY, you might be able to deduct for a home office. I am iffy on that one.
Keep you deductions as high as possible without being dishonest...😉..but the nice thing is that you can deduct health insurance from your wages.
I don't know about a home office. If you have a tiny space that you use to store a filing cabinet and a desk and your phone, and you use it for business ONLY, you might be able to deduct for a home office. I am iffy on that one.
JimboSaturn · 56-60, M
Tumbleweed · F
@JimboSaturn That's what I'm afraid of!
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Tumbleweed · F
@JimboSaturn Sounds like it. This is my second job so I can only pick up like 25 hours a week with them anyway but I was thinking maybe going full time but now I'm reconsidering.
samueltyler2 · 80-89, M
@MarineBob Each year i try to balance the deductions and what the actual estimated tax will be. I also do not want to pay interest and fines, if i do not deduct enough.
FloorGenAdm · 51-55, M