Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 03-11-2014, 01:48 PM
Junior Member
 
Join Date: Mar 2014
Posts: 1
Independent Contractor Made Less Than 10k, required to pay taxes?

I'm an independent freelancer who made less than 10,000k in 2013. This is the first year I've done this full-time and was unaware that I was supposed to pay taxes quarterly (since I received direct checks, etc.)

I've estimated my total income and it comes to less than 10,000k, so I believe I don't have to file taxes. However, I am concerned that I didn't pay quarterly (I had no knowledge of this until recently).

What steps should I take?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 03-12-2014, 09:57 AM
Junior Member
 
Join Date: Mar 2014
Posts: 2
I actually have a similar question, so I'd be really happy if someone had any insight. As far as I understand, you do still have to file your taxes and report your income... but because you made so little, I'm not actually sure you owe anything.

I only made around $5000 through self employment, but I also had a full-time job the last month of the year through which I paid taxes. So that kind of made everything confusing, and TurboTax says I owe money (which I don't believe is correct?)



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 03-12-2014, 07:45 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
Quote:
Originally Posted by iwishiwasbraver View Post


#1;I'm an independent freelancer who made less than 10,000k in 2013. This is the first year I've done this full-time and was unaware that I was supposed to pay taxes quarterly (since I received direct checks, etc.)

#2;I've estimated my total income and it comes to less than 10,000k, so I believe I don't have to file taxes. However, I am concerned that I didn't pay quarterly (I had no knowledge of this until recently).

What steps should I take?
#1;aslongas the amount reported on Sch C line 29, 31 is $400 or exceeds $400 youmust file return also aslongas the amount reported on Sch SE line 2,3 is also $400 or exceeds $400 you must pay SECA tax but yu can deduct 50% of your SECA tax o n 1040 line 27. If you are filing as a sole proprietor, or a self-employed individual, you generally have to make estimated tax payments if you expect to owe tax of $1K or more (after subtracting credits/deductions)when you file your return. However, You do not have to pay estimated tax for the current year if you had no tax liability for the prior year, no return filed I mean; You were a U.S. citizen or resident for the whole year; Your prior tax year covered a 12 month period.

#2;as mentioned above; your self employment income is treated differently with your W2 income for taxation. please read above for quarterly estimated taxes.Aslongas you expect to owe tax of $1,000 or more ,m then you need to make quarterly estimated taxes to IRS/home state



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Independent Contractor and taxes Chris Glover Miscellaneous 1 02-26-2014 12:00 AM
W2 employee getting treated as independent contractor... please help CaliDog Income 3 01-13-2013 03:10 AM
New to being an Independent Contractor drowningintaxes Sole-Proprietorship 1 04-08-2011 12:17 AM
New Independent Contractor g8rcb Estimated Taxes 0 01-31-2010 05:07 PM
What are the factors determine whether you are an independent contractor? Wayne Miscellaneous 0 06-07-2007 10:49 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.