Quote:
Originally Posted by taxhelp12
#1;hello, I went to tax accountant and I was told if I make/ show more money on my tax return the more returns I get back? Is this true?
#2:my situation: first time filling taxes,v small business owner and a cash business. I have 2 dependents, single mother
#3;I have never filed taxes before so don't how do you file taxes return, thus I went to tax professional but I am more confused now then I was before. if anyone could direct me how taxes are done, what you need to be prepared with and documents you need save & to give to your tax pro. And what type of exemptions am I entitled too. I would really appreciate your advice and help
thank you for your time |
#1;Not really; your refund amount depends on the situation. For example, in many cases, TPs have paid more than they were required to pay. When the federal government / state dept of rev. receives the tax forms, they issue checks for overpayment, which is the refund.refund is not free money it is your money given back to you; as a self employer, aslongas the amount reported on 1040 line 63( I mean amount of your quarterly estimated taxes) is larger than the amount in line 61, then you are subject to tax refund as yu paid more than you had to pay,So aslongas you receive refunds from IRS/your state , you need to check your quarterly estimated taxes.Even if you make more money, aslongas the amount reported in line 63 is smaller than the amount reported in line 61, you MUST pay tax/penalty and even interest to the IRS/your state Dept of Rev REGARDLESS of your self employment earnings.
#2;aslongas the amount reported on Sch C line 29, 31 is $400 or exceeds $400 you must fiel return and aslongas the amount reported on SCh SE line 2 , 3 is also $400 or >$400 you need to pay SECA tax half of which is deductible on 1040line 27.
#3:as a slef employer, If you are filing as a sole proprietor and/or a self-employed individual, you generally have to make estimated tax payments if you expect to owe tax of $1k or more reported on line 75 when you file your return.however, You (aslongas you meet all requirements )do not have to pay estimated tax for the current year if you had no tax liability for the prior year ( I mean you did NOT have to file return a due to lower income ); you were a U.S. citizen or resident for the whole year; your prior tax year covered a 12 month period.i guess you can contact a CPA/an IRS EA in your local area for more info in detail for yur fed/state returns