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Thread: A tax ? from a newbie in MA

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    Veteran Member Collegegirl's Avatar
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    Default A tax ? from a newbie in MA

    I started dancing in October(ish) and I really havnt gotten my shit together regarding saving recietes etc...

    I was thinking about just not claiming my 2006 (total of 3 months dancing) because I'm a student anyways so I'm in school full time. <----ETA I cant do that. So I really need help before 2006 ends

    I dont want to cheap but honestly I dont think I have this all together enough to figure all this out.... Besides my first month I was going home with only like 50/day because I wasnt doing to good.

    I was thinking as soon as January starts I'm going to save all my reciets for clothes, make up, etc and keep track of my shifts and my earnings shift by shift (write take home and tip out)

    I dont know what to do.... I'm only 19 so last year was the first time I even did my own taxes (went to H&R block)

    I just need some advise on what to do to stay organized and how to back track to October. I have good ideas of a few times I went home with nothing but otherwise its been consistant.

    Also how to I save recietes from say Target that have makeup but also have toys for my son... as in only half is deductable.
    Last edited by Collegegirl; 11-12-2006 at 01:18 PM.

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    God/dess Emily's Avatar
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    Default Re: A tax ? from a newbie in MA

    it'll continue to amaze me when people write in here that they do not intend to pay income tax.

    I mean, I know there are lots of dancers that don't, but for chrissakes, don't broadcast it!

    So is it a question of not being prepared and not knowing how? Because if that's the case, there are people that will help you estimate.

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    Veteran Member Collegegirl's Avatar
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    Default Re: A tax ? from a newbie in MA

    Quote Originally Posted by Emily
    it'll continue to amaze me when people write in here that they do not intend to pay income tax.

    I mean, I know there are lots of dancers that don't, but for chrissakes, don't broadcast it!

    So is it a question of not being prepared and not knowing how? Because if that's the case, there are people that will help you estimate.

    Well its more of honestly how do I do this??? It didnt occure to me till now really because I was so busy trying to get settled in this and with Christmas coming it hit me that the year is almost over! Like we do taxes in April so I just realised when the end of December hits I need to seperate '06 and '07.... I was kind of hoping with only a few months I could just not do it.... Taxes are so confusing to me and I'm not really sure how important it is to estimate etc.... Last year all I did was bring some form in my job had sent me....

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    Veteran Member Collegegirl's Avatar
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    Default Re: A tax ? from a newbie in MA

    Quote Originally Posted by Emily
    it'll continue to amaze me when people write in here that they do not intend to pay income tax.

    I mean, I know there are lots of dancers that don't, but for chrissakes, don't broadcast it!

    So is it a question of not being prepared and not knowing how? Because if that's the case, there are people that will help you estimate.
    I dont intend on not paying them. I edited my post... I'm just so lost I kind of just want to avoid it (you know like run away but with no real intention of NOT doing it... just being to overwhelmed to deal with)

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    Default Re: A tax ? from a newbie in MA

    If you've been depositing your money into an account (checking/savings) you can estimate how much you made per month. If you used cash to pay your bills, you can still estimate how much you made. Will it be exact? No...but its better than not paying anything.

    For next year, buy a notebook (or a ledger). On each page, write the date you worked, the hours you worked, the amount of money you made TOTAL for the night, the amount you tipped out (to house, housemom, etc) and the amount you walked out the door with. If you made any purchases that day for work, staple that receipt to that days page...OR put the receipt in an envelope and staple the envelope to the notebook.

    When you get home, transfer all of this information to your computer's recordkeeping software (QuickBooks, Quicken, MSMoney, whatever). Why do this in two steps? Because if you lose one, you have the other (which happened to me...my motherboard fried and I lost everything on my computer). I would even scan my receipts into the computer as image files (some of the thermal laser receipts fade in record time).

    Then, when it comes time to do taxes...or hand your paperwork to your accountant...you're all set...no sitting around trying to figure out how much, when, where...its all done and in order.

    Good luck!

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    Veteran Member Collegegirl's Avatar
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    Default Re: A tax ? from a newbie in MA

    Wow venus... scanning stapling! You are organized! I like it.

    Thank you

    No I dont deposit it I use it for groceries, diapers, gas.... etc... I dont work that much so I just put it right into my wallet and thats my cash for my sons needs and to get to school etc.

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    Default Re: A tax ? from a newbie in MA

    well, if you haven't earned very much money dancing in 2006, and if you didn't earn any money from other types of jobs earlier in the year, and because you can file as head of household since you have a child that can be claimed as a dependent, odds are that you won't wind up owing any income tax for 2006 anyhow. However, as in independent contractor, you WILL wind up owing 15.3% self-employed Social Security / Medicare tax. Some wild guesswork that you netted $100 a night on the average, 5 nights a week for 13 weeks, for a total of $6500 in 2006 earnings. Your self-employed Social Security / Medicare tax due for 2006 would therefore be about $ 1000 ... and it is due by the next estimated tax due date of January 15th 2007 . But this gets extended to the end of January as long as your tax return is completed and filed before Feb 1st and you send in your check for 2006 taxes due along with your tax return).

    As an independent contractor, you are actually required to file estimated taxes every 3 months, by January 15th, April 15th, June 15th and September 25th 2007, and to send in a check for the 15.3% Social Security / Medicare tax plus additional estimated income taxes due. I believe that you also have to file MA state estimated taxes on the same dates. Then like 'employees', you are also required to file your annual tax return by April 15th, which will 'reconcile' the amount of total taxes that you actually owe versus the amount of estimated tax money you had previously sent in and you'll either get a refund or owe more money. Basically, the estimated tax filing thing takes the place of 'employers' withholding estimated income taxes and Social Security taxes from a 'straight job' paycheck, and sending the withheld money in to the IRS regularly on the employee's behalf.

    I don't know exactly how MA state taxes work, but odds are that with $6500 in total 2006 earnings you won't owe them any state income tax either - but you still have to file a tax return.

    Of course, if you did have other forms of income in 2006 besides dancing, then everything that I have just written regarding income taxes due on 2006 dancing earnings is probably wrong. Once your combined 2006 income from all sources starts to exceed $20,000 or so, income taxes do start to kick in. Therefore, if you had been working at a 'straight job' for the first 9 months of 2006, you may owe some income tax on your dancing earnings in addition to the Social Security / Medicare tax.
    ~
    Last edited by Melonie; 11-12-2006 at 04:34 PM.

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