Results 1 to 9 of 9

Thread: HELP EMERGENCY ASAP NEED TAX INFO FAST!!!!

  1. #1
    Banned Katrine's Avatar
    Joined
    Nov 2003
    Posts
    13,855
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default HELP EMERGENCY ASAP NEED TAX INFO FAST!!!!

    If anyone is around and can help me with a little tax question, can you please PM me or email [email protected]??

    I am doing my first estimated quarterly return with a voucher and already took my tax deductions of my income and now they are telling me I have to add self-employment tax of 15.3%...this means that I'm going to have to pay 30.30% on the money I've only made in 3 months..I can't believe it, is this true?? I don't know what to do, I missed this line when I entered it into my spreadsheet and now the calculations might be wrong...HELP PLEASE!!!


    Thank you so much in advance...Kat :o :o

    "Have you ever been to American wedding? Where is the vodka, where's marinated herring?" - GB
    "And do the cats give a shit? No, they do not. Why? Because they're cats."-from The Onion

    Quote Originally Posted by Mia M
    If a cupcake was tossed at me... well, I'd only be upset if it missed my mouth

  2. #2
    Banned Katrine's Avatar
    Joined
    Nov 2003
    Posts
    13,855
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Re:HELP EMERGENCY ASAP NEED TAX INFO FAST!!!!

    I called the IRS hotline and they HUNG UP on me...

    My accountant is MIA, probably buried under a stack of returns.

    My stripper friend says she never factors self-employment tax because she is an independant contractor....

    ...but this club doesn't even 1099 me, I pay nothing but housefee and tipout, they did not put in their part for FICA, whatever......


    AAAAAAAAAAAAAAAAHHHHHHHHHHHHH!!!!

    "Have you ever been to American wedding? Where is the vodka, where's marinated herring?" - GB
    "And do the cats give a shit? No, they do not. Why? Because they're cats."-from The Onion

    Quote Originally Posted by Mia M
    If a cupcake was tossed at me... well, I'd only be upset if it missed my mouth

  3. #3
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re:HELP EMERGENCY ASAP NEED TAX INFO FAST!!!!

    Yes, if Social Security and Medicare taxes were not withheld from your pay and matched by your 'employer', you are considered to be a self-employed business operator and are responsible for paying 15.3% self-employment tax on top of the 15-28% you may owe in federal income tax and the 0-9% you may owe in state and local income tax. The self-employment tax substitutes for the Social Security and Medicare taxes that you and your 'employer' did not pay during the year.

    If this only applies to ESTIMATED first quarter taxes you just paid, don't sweat it. Just remember the amount that you were 'short' and add it to the amount you send in with your 2nd quarter estimated tax payment due in June. Estimated tax penalties don't start until the 'imbalance' exceeds $1000, and even if they do for one quarter the IRS is probably not going to take action as long as the 'imbalance' is fixed by the next quarter.

    PS if your combined self-employment, federal, state and local tax rate is only 30% you're lucky. Mine is well over 40% in New York.

    Also, remember that when you figure your income taxes due, that 1/2 of the self-employment tax you paid can be subtracted from your income as an 'adjustment' - which lowers the effective federal, state and local income tax rates that apply as well as lowers the amount of 'adjusted income' that you have to pay taxes on.

  4. #4
    Senior Member Flounder's Avatar
    Joined
    Feb 2004
    Location
    Houston/Galveston
    Posts
    128
    Thanks
    0
    Thanked 2 Times in 2 Posts

    Default Re:HELP EMERGENCY ASAP NEED TAX INFO FAST!!!!

    Hey Katrine, well I don't have any official info sorry (can't get ahold of my tax account either) but I did look up some tables and depending on what withholdings you are claiming that does not seem out of line. I am filing Single with 0 exemptions and my Federal income tax witholding rate is 20.65% then add to that 6.2% for social security, 1.45% medicare and I'm at 28.3%.

    I know in my regular paychecks I recieve about 71% of the gross pay.

    So to me that does not sound like a problem amount of taxes but talking to an expert is highly recommended as there are usually ways to reduce the total due.

  5. #5
    Veteran Member NVJosh's Avatar
    Joined
    Dec 2003
    Location
    Lovely Las Vegas, Nevada
    Posts
    665
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Re:HELP EMERGENCY ASAP NEED TAX INFO FAST!!!!

    Kat - Its not quite that bad. For self-employed, the effective rate is only 13.9% for self-employment, and that's of your net income, not your gross income. So don't forget to take out whatever deductions you have against the income. Also, when you get to figuring the income tax, you get to reduce your net self-employment income by your standard deduction or itemized deductions plus your personal exemption. So, while your rate may be in the 10%/15% bracket, not all of your income will be that rate.

    Also, don't forget you have to annualize your income, figure the tax on the annualized income, and then "de-annualize" to figure out what you owe for the estimate. So, while you may be in the 15% bracket now, for the year you may be in a higher bracket.

  6. #6
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re:HELP EMERGENCY ASAP NEED TAX INFO FAST!!!!

    Kat it sounds like you need some extra write-offs to reduce your tax liability! Ever think of getting 1000cc breast implants ?

  7. #7
    Veteran Member NVJosh's Avatar
    Joined
    Dec 2003
    Location
    Lovely Las Vegas, Nevada
    Posts
    665
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Re:HELP EMERGENCY ASAP NEED TAX INFO FAST!!!!

    Quote Originally Posted by Melonie link=board=6;threadid=8237;start=msg97055#msg97055 date=1081985102
    Kat it sounds like you need some extra write-offs to reduce your tax liability! Ever think of getting 1000cc breast implants ?
    Hey, they never take 100 cents on the dollar (it just feels that way sometimes). Don't get those implants unless you really need them

    What you need to do is do your tax planning before year-end, not on April 13 A little planning and you can reduce taxes a lot.

    Melonie, if you're paying 40% combined, you need more deductions, too! And I still think you should incorporate. lol

  8. #8
    Banned Katrine's Avatar
    Joined
    Nov 2003
    Posts
    13,855
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Re:HELP EMERGENCY ASAP NEED TAX INFO FAST!!!!

    I was actually in the 32.5% bracket once I figured self-employment, that 15% was just regular fed tax on what I made in 3 months....

    You're right Josh, I've never made so much $$ in such a short time so I've always been able to spread my accounting out over the year and just report it annual. Although I probably should have been doing quarterly for a long time now, its never been a problem until I was depositing like $10K at once, and I got worried!

    Maybe I will buy some children and keep them in my closet so I can deduct them as dependants right now...being single, childless, and not owning anything.......FREEDOM IS NOT CHEAP!!!!

    thanks for your help everyone!

    "Have you ever been to American wedding? Where is the vodka, where's marinated herring?" - GB
    "And do the cats give a shit? No, they do not. Why? Because they're cats."-from The Onion

    Quote Originally Posted by Mia M
    If a cupcake was tossed at me... well, I'd only be upset if it missed my mouth

  9. #9
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re:HELP EMERGENCY ASAP NEED TAX INFO FAST!!!!

    Melonie, if you're paying 40% combined, you need more deductions, too! And I still think you should incorporate. lol
    I agree with you on more deductions, but if I have my boobs redone any bigger I'll be falling over on stage ! Actually, living in NY with about a 7% state income tax and a 3% city income tax on top of federal tax and self-employment, it's not all that hard to hit 40% combined. Also, I admittedly had a very good year where investment gains were concerned which inflated my taxable income.

    The real reason that I don't want to incorporate - I hate paperwork ! Plus I couldn't do it in NY because of state laws complicating single owner corporations, meaning my corp would have to be based in Maryland, Nevada etc. - more paperwork !

Similar Threads

  1. Berkeley/ San Francisco Clubs Need Info ASAP
    By Lola S. in forum Club Chat
    Replies: 7
    Last Post: 12-20-2008, 03:34 AM
  2. Emergency split end treatment- fast?!
    By Elvia in forum Body Business
    Replies: 14
    Last Post: 08-03-2008, 11:50 PM
  3. Casablanca suggestions? (need info fast!)
    By scarlett_vancouver in forum The Lounge
    Replies: 5
    Last Post: 06-22-2008, 08:38 AM
  4. Need info on Boston clubs ASAP!!
    By shesupsidedown in forum Club Chat
    Replies: 8
    Last Post: 03-03-2007, 07:40 PM
  5. Need Club info. ASAP
    By LoLa in forum Club Chat
    Replies: 1
    Last Post: 04-30-2004, 07:59 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •