I am looking to do my taxes on turbotax and was wondering do I need to submit any additional forms to IRS or can everything be done under turbo tax?====>I am not very familiar with the TB;however, in general,you use the software and make data entry, generate Paper Return and Electronic Returns from the software except some statements or notes or etc that you need to submit for references ; PDF documents can now be submitted with some electronically filed returns The IRS permits attachment of PDF documents to e-files using the Modernized e-File Program. You can attach documents to the following return types: 1040
Do I separate my business filing from my job one?===>I think so you need to file Sch C of 1040 and report your net operating loss, I mean loss from your nail biz on 1040 line 12 as a negative number You must show negative tax return entries in one of two specific formats. If you do not indicate losses as a negative number, the entry may be misinterpreted as a positive number and add additional tax to your bill;your software automatically reports your loss from your biz on your return as NOL. No Sch SE of 1040?d be generated due to the loss, NOL from your biz; also you need to report your W2 income on 1040 line 7 .
Note; you took losses from your biz you do not need to pay quarterly estimated taxes; once the number on SchC of 1040 line 29 / 31 is $400 or exceeds $400, then you must file your return Sch C of 1040 also aslongas the number on Sch DE of 1040 line 3/ 4 is is $400 or exceeds $400 then you must pay self employment tax, I mean social tax for self employer; but you can claim 50% of the self employment tax that you pay to IRS on your return on 1040 page 1 line 27. Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1k or more when their return is filed.However if your biz entity is a s corp or a C corp then, Corporations generally have to make estimated tax payments if they expect to owe tax of $500 or more when their return is filed.
You don?t have to pay estimated tax for the current year if you had no tax liability for the prior year;You were a U.S. citizen or resident for the whole year;Your prior tax year covered a 12-month period.
Do I report my 1099 to my two employees at the nail salon? =====> It depends; when running a biz, it is your responsibility to fill out 1099s for contract labor and to give the contract laborer and the IRS copies. If you do not do this, you can be penalized by the IRS. It is important to know if the worker needs a W-2 or a 1099 before you fill one out. UNLESS they are independent contractors, you should not issue 1099 to them; say, Any independent contractor you hired must receive a 1099 only if you paid him $600 or more during the year. If you paid him less than $600 during the year, you do not need to file the Form 1099, but you can still fill one out if you choose. If you give your regular employees a 1099 when you should have provided W-2s, you may be audited to reclassify your workers. The law requires you to determine how much control you have over a worker. The more control you have over a worker, the more likely the worker is an employee and not an independent contractor.So simply, aslongas they are yur regular employees you need to issue them W2s NOT 1099s;I can not explain all who are W2 EEs or who are 1099 workers? you may follow the step by step instructions here;
1099 Or W2 Employee | QuickBooks
Please help give me a step by step guide on what I need to do as a worker and a business owner.
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