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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.

1
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0answers
7 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 ...
0
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1answer
45 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 ...
1
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3answers
145 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-...
6
votes
2answers
487 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 ...
2
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1answer
111 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 ...
6
votes
1answer
132 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 ...
0
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0answers
27 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:/...
0
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1answer
73 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 ...
1
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1answer
40 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 ...
0
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2answers
89 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 ...
0
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1answer
84 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 ...
1
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1answer
76 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
votes
0answers
31 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 ...
3
votes
1answer
103 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
votes
0answers
64 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
votes
1answer
72 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 ...
1
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2answers
98 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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votes
1answer
39 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 ...
2
votes
1answer
118 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
77 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
votes
2answers
163 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
vote
1answer
90 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 ...
0
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1answer
31 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 ...
0
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0answers
40 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
votes
1answer
54 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
votes
0answers
154 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
votes
1answer
127 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
68 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 ...
1
vote
1answer
94 views

Suggestions on how to file taxes when running an international online business with expenses in Bitcoin

So around January of this year (2018) my buddy was approached by the admins of a website and was asked to be a reseller for their products. Currently, they only support payments in cryptocurrency and ...
2
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4answers
167 views

How would I be taxed by earning credits and selling items bought with them

I was wondering about how I would go about putting this into my tax return. So I've recently started using a website that has a referral program, by promoting through this referral program I've ...
0
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1answer
255 views

working as an european self employed for an USA company

I was wondering why companies from USA are are searching for remote developers from USA, even if the working contract is a W2? (I've seen that many companies have a requirement that the developer ...
0
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1answer
262 views

Self-employed, Medicare, Retiree: Box 5 on 1099-R is empty; is health insurance deductible (1040, Line 29)?

If Box 5 on a 1099-R is empty, does that mean that health insurance premiums for a self-employed retiree can be deducted on line 29 of the 1040? (Assumption: All other requirements for 1040 line 29 ...
5
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1answer
223 views

What are good money making ideas for teenagers in the city? [closed]

we are 3 teens in the city looking for ideas to make money. We are minors enrolled in a good school. We are interested in filling our free time but make money during it. Here are some of our ideas -...
2
votes
1answer
92 views

Self-Employed vs. LLC vs. “Something Else” for an at home business with two employees?

Though my circumstances are not that difficult, I want to be sure that I pursue the correct legal path for my family since our business administrative needs may be changing. I am a self employed ...
1
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0answers
35 views

When having an LLC taxed as an S Corp, what difference does it make to retain a profit since it is a pass-through entity? [duplicate]

Suppose I have an LLC and for simplicity's sake I'm the only member and I choose to be taxed as an S Corp. I fill out a W2, becoming an employee-owner of the LLC and I pay myself 50% of the LLC's ...
3
votes
2answers
99 views

Qualifying as a Professional Musician to Deduct Cost of Instruments

I've been a hobbyist musician my whole life, playing random paying gigs from time to time. The group I am with now all have day-jobs as non-musicians, but we plan to start playing shows and recording ...
4
votes
2answers
128 views

Can an independent contractor deduct the cost of a “home-made” meal when service is provided at a client's place of business?

Suppose an independent contractor (IC) has a principal place of business (location A) in which the IC provides a service to a client. However, with some regularity, the IC provides the service at the ...
2
votes
0answers
51 views

Do I have to pay into Canada Pension Plan (CPP) as part time contractor?

I have a fulltime job with a company but in my spare time I do some contractor work for a few clients I gathered overtime. I understand that I have to pay income tax at the end of the year over my ...
1
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0answers
27 views

W8 question - regarding contract work in the US

I'm Canadian and used to work in the US randomly on visa. Now I reside full time in Canada and am doing some contract work in the US. They have asked me to complete a W9 but I do not have a visa ...
1
vote
1answer
87 views

Which countries taxes do I need to pay?

I have a question about paying business taxes after you move abroad. I currently own my own business as an online freelancer and work for an umbrella company who manage all my taxes. I'm going to move ...
2
votes
1answer
273 views

Is self-employed work performed out of state for a California organization “California source income?”

I recently received a request from the California Franchise Tax Board saying that they believe I need to file a tax return. I am a sole proprietor programmer, with a client in California who paid me ...
1
vote
3answers
202 views

Paying salary to a shareholder when the business has no revenue

I'm trying to learn about financial statements and taxes in Canada. And I'm curious if I understood something correctly when a business has zero revenue, but still pays the sole share holder a salary....
0
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2answers
85 views

For 2018 tax year, is Section 179 applicable (to computer purchases)?

In the USA/IRS milieu... Pretend it is 2018. Say Sally is a self-employed person. She creates dinosaur renderings for a number of large clients grossing say $300,000 a year. Sally buys say five ...
6
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1answer
1k views

Taxes overpaid when alive; file amended return after death?

While collecting data to file a return for someone who is deceased, I discovered a significant deduction that was repeatedly not claimed in previous years. Specifically, health insurance on Schedule C....
3
votes
1answer
49 views

Canada: Taxes for income generated from pre-immigration work

I called the CRA many times regarding my question but I wasn't able to get an answer and they kept redirecting me to different people and departments. I am now a PR in Canada, Before coming to this ...
1
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1answer
204 views

Self employed FSA options

I am self employed in Ohio and on my husband's insurance. Is there an FSA type account that I can set up? We do not have a High Deductible medical plan so the MSA will not work for me either. I ...
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votes
2answers
99 views

Can 1099 workers have “purchase” type expenses?

In the USA, say Jane is a 1099-type worker - she's self-employed. She has various expenses which are generally deductions from her profit, but note that... https://www.irs.gov/businesses/small-...
2
votes
3answers
263 views

LLC-SCorp to self - actually, does the corp pay payroll taxes?

In the USA. Here are the two common scenarios for the self-employed: A. Joe makes 100,000 over the year. It's paid to him as 1099 payments from his various clients. Joe pays the many taxes on that. ...
3
votes
1answer
89 views

Taxes for a foreign freelancer getting paid in the USA

I, a Mexican citizen, was living in Portland last year and had a TN work visa, but decided to come back home. The company I was working for decided they wanted to keep working with me but as a ...