If you have a job and no taxes are taken out what information must you keep up with yourself?
Answer:
I learned this one the hard way.
www.irs.gov is your best resource. You need to look at independent contractor info. You're taxed at a 15% rate and are supposed to file quarterly reports with the IRS.
When you go to file next spring, you'll owe everything at that time.
Also I recommend you call any tax preparation office, just to ask the question regarding self-employment.
Good luck.
Keep your check stubs that include wages, social security, medicare, etc
all income and u have to file a 1099 at tax time. usually ur employer will file the 1099 or W-2
I don't know what kind of work you do or where you work, but it is a law that your employer has to take out fed tax, ssi and all of that. otherwise you will owe the irs a lot of money at the end of the year.
If your selfmployed you can file at the end of the year or by the quarter, but if your not making that much, I would file at the end of the year.
Now if you working on a job and they are not taking taxes out on you..your responsible to pay at the end of the fiscal yerar and if again your not making that much you pay much, but the only break some people get on a deal like that is if they have children and file for child credit and it saves their butts.
If you are self-employed, then you are responsible for paying your own social security and income taxes and may be required to make estimated income tax payments quarterly to both the Feds and your state (if your state taxes income). Waiting until tax return time to pay your income taxes (or underpaying your estimated) can result in a penalty when you file your tax return. Your tax preparer can advise you.
Yes, do keep copies of everything throughout the year - when you are paid, photocopy the check before you cash it. Also keep all receipts related to your job because, since you are self-employed, the costs of working may be deductible from your income for tax purposes. Again, let your tax preparer advise you.
there is no law an employer has to take out taxes, they can list you as an indepent contractor, or if you are self employeeed If so you must be contracted that way, and they must 1099 you but the must still take out. workmans comp unless you have you own. IRS web sites helps alot and you can order forms and books to help you figure it out there is also software out there that can help you track what you need to pay quarterly so at the end of the year you dont get hit with a huge bill!!
First, find our whether taxes should be taken out. It's not a decision for the employer to make for his own convenience. If yu are an independent contractor, you will fill out a W-9 when you commence work and receive a 1099 at the end of the year indicating how much you were paid. If you're a statutory employee, you fill out a W-4 when you're hired and receive a W-2 at the end of the year.
Nevertheless, though you end up paying more in taxes as a 1099, you get more deductions. Keep track of everything you spend in relation to your job and invest in some good tax software at the end of the year.
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