Questions tagged [self-employment]

This tag is to be used for all questions related to Self Employment. Typically this tag should be accompanied by a geography tag indicating the region for the question along with other specific topic tags.

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1answer
57 views

Independent contractor self-insured HSA/ACA compliant plan

Without delving into the political motivations behind my intent at why I would want to pursue such a plan, I'm looking for some information regarding setting up a self-funded health insurance plan. ...
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2answers
60 views

Total Income tax and self-employment tax

I worked as a full time employee (W4 taxes were deducted by the employer) and I was self-employed (independent contractor - 1099MISC i.e. no taxes were deducted by the employer) for some months of the ...
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0answers
51 views

How do I set up the books for LLC taxed as a C-Corp?

Most resources online for bookeeping for LLCs immediately repeat a myth about C-Corp taxation subjecting you to double-taxation, declare that nobody would set up their single-member LLC as anything ...
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1answer
54 views

Can I invest in both SEP IRA and IRA or solo 401(k) if i've worked in W2 for few months and as an independent contractor for the rest of the year?

I worked as a W-2 employee from Jan-Mar and became an independent contractor from Sep this year.My employer did not provide me 401(k) or any benefits. I received around 18K after tax from W2 and I'm ...
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1answer
357 views

Is it true trips for YouTubers are tax deductible, while investment research costs are not?

In USA, for a YouTuber who earns US$60,000 per year for making Pokemon Go videos on YouTube and takes about 8 trips to Japan, Europe, Taiwan, Chicago, sometimes not because there is a Pokemon Go event,...
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1answer
52 views

Self assessment: Entering in sideways loss relief from previous year

Any one au-fait with Self Assessment? I am not sure where/how to fill in the online self assessment form to do this: Claim previous year's losses in one business to claim relief on this years ...
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1answer
70 views

Tax consequence of 100% profit deferral to solo 401k contribution

My yearly maximum contribution to solo 401k is $6000 after $13000 contribution to Simple IRA on W2 position. This year I expect to earn less than $6000 from the side job. Can I contribute all profits ...
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1answer
93 views

If I use 1099 or S-Corp, can I deduct rent from my income?

If I live in another state in USA and either still pay rent or mortgage, but rent an apartment in Silicon Valley and work there to earn money as a business (1099 or S-Corp), then can't I deduct that ...
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1answer
42 views

Deduct business expenses on salary income tax as a married couple

So let's say that one spouse is working full time for simplicity let's say this spouse is making 100k/y and paying 30k/y in income tax. Then let's say the other spouse is running a sole proprietorship ...
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1answer
63 views

Self employed half the year unemployed the rest. Do I pay quarterly taxes?

I was unemployed from January-June and started becoming self-employed from June-December. Do I need to pay quarterly taxes? I will owe more than $1,000 in taxes for being self-employed half this ...
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3answers
126 views

Are full-time retail traders self-employed or business persons? [closed]

I was asked this question today by one of my known people if full time traders are counted as self-employed or business persons or professional? I got really confused because as much as I know, a ...
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4answers
459 views

Mother wants me to “be a consultant” for her as way to save on income tax

My mother is self-employed and I am currently unemployed. She proposed an idea to me that I got a bit iffy about. She wants to pay me for "consulting services" -- this way she can essentially reduce ...
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0answers
62 views

Can I have a sidegig contract in the US if im fully employed in the UK?

My current situation is the following: I'm based in the UK. I'm working as a full time employee for a company X that has a client Y. We've finished some work for client Y and they have a US company ...
2
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2answers
43 views

Liability for US taxes on foreign company held by non-US citizen spouse?

I am a U.S. citizen, but my wife is not. If I own a foreign company, I am subject to Section 965 Transition Tax, Form 5471 and Self Employment Tax regardless of where I live. If we are living outside ...
2
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1answer
82 views

From which bank account should I make employee contributions to my Self-Employed (Solo) 401k?

I have both business and personal checking accounts. For employee contributions to my self-employed 401k, does it matter for legal or tax purposes which account I draw a contribution from?
2
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1answer
151 views

Taxes when remote working for a Swiss company whilst living in the UK?

In the scenario where I'm living in the UK and working remotely for a Swiss company. Who should I pay income tax to? I would be declared self employed in the UK.
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1answer
146 views

Is it possible to get a mortgage without income verification in Canada?

For someone who has some sizeable savings but who reported very low income for the past year, is it possible to get approved for a mortgage with, say, 35% down? In a situation when one has to pay $...
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1answer
76 views

Declaring income when self-employed

As described here, I earn extra money (around $7000 per year) from a second job, in which I am running a business as a sole trader. Due to the nature of the work, I am mostly paid in cash, and deposit ...
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0answers
46 views

Does S-Corp owned 100% by single-member LLC re-create SE tax?

LLCs with an S-Corp's election eliminate SE Tax. If that S-Corp is owned by a single-member LLC which should be seen as a disregarded entity, would that flow through money have SE tax again? The ...
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0answers
110 views

Can I collect unemployment in this situation?

I was employed (W-2) on a contract for almost 2 years and the the contract ended. Then I took a job 2 weeks after the contract ended which did not work out for me after being there for a very short ...
3
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1answer
58 views

Do I need an ABN for self-employment?

I work as a private tutor in addition to my full-time job in the public sector. I know that I will need to include any additional income on my tax return since I will need to pay an extra tax. Do I ...
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1answer
84 views

How to handle income from paid internship over the summer?

I'm a full-time college student with two sources of income in 2018: a part-time job through my college for which I have a W2 (gross wage of $5,408.65) and a paid internship over the summer for which I ...
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3answers
152 views

Why is my federal tax calculation coming up 1% short?

I'm trying to calculate the federal taxes I would pay on self employment (sole proprietor -- pass through) income. I found this online tax calculator -- https://www.taxact.com/tools/self-employed-...
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2answers
593 views

In the U.S., can I deduct coffee as an expense if I am a self-employed software developer?

I work in coffee shops every day as I develop. Coffee shops have an unwritten (sometimes written) rule that you cannot use their wifi, power, and bathrooms without buying something. Because of that I ...
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1answer
130 views

Can a full time employee who also owns a side LLC claim “self-employed” deductions?

I am working full time for a corporation in NYC (I have w2). I also own my own side Educational LLC (EdTech) which has claimed $0.00 in income for 2018, but has accrued several thousand in startup ...
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1answer
218 views

How to address error made on tax return two years ago by paid preparer (and the mess it has caused since)?

Just before April 15th of last year, a married couple I am acquainted with asked me to help them with their 2017 tax return. I agreed to do so for free (note: I am not registered as a paid tax ...
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0answers
31 views

UK Limited company - confusion around National insurance thresholds and Employee Personnal allowance

I could not find answers to my question online, so I thought someone here might know what can be done regarding the below: I have a standard limited company with a 1185L tax code. Looking at: https:/...
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1answer
76 views

Paying my wife's LLC from my LLC and solo 401k contributions

My wife works as a consultant to a business I operate (a single-member LLC). Can I pay her business (also a single-member LLC) as a vendor? I would treat her payment as a contractor expense, and she ...
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1answer
46 views

Correct Self-Employment Forms for 1040

Am I filing the correct forms with my 1040 to include my self-employment tax? Sole-proprietor with less than $5000 business expenses and profit less than $9000. 1040 Schedule 1 Schedule 4 Schedule ...
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2answers
103 views

W2 & Self-Employment Tax - Taxed Twice?

If I'm paying self-employment tax on Schedule 4 (Other Taxes), why is my self-employment income also included in my taxable income? Aren't I being double taxed?
20
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2answers
7k views

15% tax on $7.5k earnings. Is that right?

This year is my first year in the USA. My sole earnings were an honorarium from a university for $7,500 -- reported on a 1099-MISC form in box 7. For this, I was on-site for a few days and talked ...
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1answer
121 views

Would it be a good idea to start my LLC while I owe the IRS?

I’m a self-employed cosmetologist I filed taxes last year and had to pay back $2500 I’m on a payment plan right now and they told me once I file again it will void the payment plan. So, would starting ...
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1answer
90 views

Deducting self-employed ACA health insurance premiums paid for next year

I'm self-employed and paid my January 2019 ACA health insurance premium at the end of 2018. I assume I can deduct this on my 2018 taxes since I use the cash accounting basis. But what if my 2019 ...
2
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0answers
37 views

As a UK LTD Company should my allowable expense claims be inclusive of VAT

I'm starting a LTD company in the UK and have a question surrounding the way that allowable expenses are claimed. I understand that this question has probably been asked numerous times but no matter ...
4
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1answer
195 views

How to report 1099-MISC Box 7 bonus ($0 in box 3), but not an independent contractor and not self employed (payment from client of my employer)

I work for a concessions company, but I received a 1099-MISC from the company's client (the team). It's an end-of-year discretionary bonus for taking care of guests of the team as part of my normal ...
2
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0answers
71 views

How to deduct subway commuting and rent as a part-time remote contractor on a 1099-MISC?

I am working on a 1099-MISC as a consultant to a tech company. As an independent contractor, I decide the locations from where I provide my services. Most of the time, I am on site at the business ...
2
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1answer
86 views

Understanding German state health insurance terms Mindestbeitrag for self-employed

According to this site, they operate with the following terms around a minimal monthly insurance fee: Beitragssatz - Mindestbeitrag EUR 1038.33 Krankenversicherung - 163,02 What is now the mandatory ...
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2answers
133 views

On a 1099-MISC, do you pay state, federal, social security and medicare taxes? Anything more or anything less?

If I work on a 1099-MISC, I will pay approximately 15% for social security and medicare. Do I also pay for state and federal taxes all the same? For example, I see NY state tax is 6% and since I will ...
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1answer
42 views

Do I need to file taxes in a specific state if a small portion of my income was paid by a company based there?

I am a resident of New York for tax purposes, but conducted a small amount of freelance work with a company based in California in 2018. They issued payment via direct deposit and my bank ...
1
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1answer
50 views

Self-employed: claim CPP for self on Line 9060 of T2125?

In Canada, self-employed individuals have to contribute more to the Canada Pension Plan (CPP): we have to pay both the employee and employer amount. Whereas employees just pay their employee amount ...
2
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1answer
129 views

Recently started selling hand-made products in online shop. What do I need to do? UK

I'm a hobbyist electronics engineer and I occasionally sell things that I make (electronic music devices) on eBay. It has snowballed a little bit and I have opened an online shop. I live in the UK ...
1
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1answer
86 views

Calculating Gross from a desired Net

I have a sole proprietorship and I'm helping out a friend. We have an agreement where I told him what I needed to net each month and I can invoice for that. If I need to net $6000 each month, how do ...
3
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2answers
671 views

Can I deduct wages I pay to my personal assistant?

Imagine I have a personal assistant, ie, an employee or independent contractor who helps me with my personal tasks, eg, booking personal travel, running personal errands, purchasing personal products &...
1
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1answer
96 views

Freelance Writer / First Year Paying Self Employment Taxes

This year I pay taxes on income earned in 2018 for freelance work I did for a foreign company. According to the IRS, because this was my first year, I didn't have a previous years income for quarterly ...
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1answer
33 views

Both Schedule C and Schedule C-EZ form for freelance taxes?

Do I submit both or... which one? (If it is just one) I have been searching for solid information about this for a couple of days... Decided to just throw this question on the stack. Maybe the answer ...
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0answers
45 views

How much should I earn before registering an LLC? [duplicate]

So, I want to quit my hellish day job and freelance/run my etsy store full-time. I'm considering registering an LLC, but I'm currently having second thoughts about whether or not I need an LLC. at all,...
2
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1answer
59 views

Does SE income for taxes have to be paid in the year or just earned?

If I earn self-employment income for, e.g, taking someone's photo in late December but don't receive payment for that service until January and my tax year matched the calendar year, does that income ...
2
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0answers
157 views

Stop filing federal annual return (Canada)

I incorporated my company several years ago and since then I've been filing both my provincial and federal annual returns (pay $20 and confirm info). According to many sources, having the federal ...
3
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1answer
226 views

Self-employed net income for affordable housing - valid to take from profit/loss?

I'm trying to understand net income from self-employment, when qualifying for an affordable housing program. I had always thought that net income was the cash (checks, wires, etc) coming in. However,...
1
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1answer
80 views

Why isn't the `flat rate scheme` favourable for Limited Companies anymore?

I have been registered as flat rate scheme since 2012. At which point I kept 12.5% (working in IT) of my vat invoices. However in 2017 they changed the laws on the % I believe. My accountant said I ...