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Thread: taxes, break it down!

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    God/dess Corgan's Avatar
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    Default taxes, break it down!

    i am about to start paying my taxes on my own, as a dancer. (my mom has claimed me every year so far) if this is already stated somwhere, please provide a link and i will read.

    how often do you file?
    do you base income on what you make all year? or quarterly?
    what is this self employment tax? is there a way to avoid it?
    do you ever get $$ back?

    anyother information is GREATLY appreaciated.

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    Banned Melonie's Avatar
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    Default Re: taxes, break it down!

    ^^^

    you file and pay estimated taxes quarterly.

    you file an income tax return annually that reconciles the estimated tax payments against your actual tax liability

    You base your quarterly estimated tax payments on the gross income that you actually earned in the preceding 3 months

    The self-employment tax is a combination of the 7.6% 'employee' share of social security tax PLUS the 7.6% 'employer' share of social security tax (which people working as 'employees' probably aren't even aware that their employer must pay). Since dancers are considered to be sole proprietor businesses (i.e. a dancer is her own employer) she gets hit with both halves ... for a total tax rate of 15.3%

    When you file your tax return in April, whether you must pay in additional money or whether you get a refund totally depends on how your previous estimated tax payments balance out against your actual tax bill. This is no different than an 'employee' filing a tax return in April, with the additional money or refund depending on how the total of 52 estimated tax payments made by his employer (i.e. weekly tax withholding from his paycheck) match up to his actual tax bill.

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    God/dess Corgan's Avatar
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    Default Re: taxes, break it down!

    ^ thank you!

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