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.

Filter by
Sorted by
Tagged with
0 votes
1 answer
130 views

Received a Letter from SSN Administration and Very Confused

I received a Form SSA-L5114 and it says "Based on information provided to us from Internal Revenue Service, we are reducing the amount of your self-employment income on your Social Security ...
user avatar
  • 573
1 vote
1 answer
42 views

What is the contribution limit for self-employed person to their SEP-IRA?

For a few years I've been contributing to a SEP-IRA for myself as the sole employee/employer. Until this year, I have been calculating my max contribution as 25% of my total SE income. I realize that ...
user avatar
1 vote
0 answers
50 views

The Social Security Special Earnings Limit Rule---How Long is the Cap on Hours Worked in One's Own Business Truly in Effect?

I am under the impression that retirees who are collecting Social Security benefits and start a business are capped in the number of hours they can work between 15 and 45 hours per month if they have ...
user avatar
1 vote
0 answers
56 views

Can my wife use my income/credit card to buy products for her self-employed business (UK)

I am in full time employment in the UK (and have no other sources of income). My wife does not currently work (since having children). She will shortly be registering as self-employed/sole-trader and ...
user avatar
0 votes
1 answer
41 views

Self-Employment: is equipment deductible as part of the home office deduction, or as a separate deduction?

I have a side gig and am setting up a separate home office area for exclusive side-gig use. I intend to take the home office deduction, but am not yet decided if I'll calculate it the simplified way (...
user avatar
5 votes
2 answers
1k views

Will I be penalized for not making an estimated payment in the first quarter for a side gig that started in the second quarter?

I picked up a side-gig on March 30th, that pays me at the end of each month, so my first pay check will be towards the end of April, which is in the second quarter. It seems I have two options to ...
user avatar
4 votes
1 answer
97 views

Home Office Deduction, exclusive use, and access to closet

My house has an "In-Law" suite that I plan to use for an exclusive self-employed home office for tax deduction purposes. It contains a main room, a bathroom, a kitchenette, and a walk-in ...
user avatar
0 votes
2 answers
49 views

Does the employer social security tax also apply on self-employment income for individuals with W2 income that exceeds the IRS maximum?

I have a question very similar to W2 and 1099 (self employed) income in same year: social security taxable income limit?, but goes a step further. The goal of my question is to estimate how much ...
user avatar
1 vote
1 answer
61 views

How do I properly lend personal money to my own company in Quebec?

I want to finance my company with my personal money (to buy some stuff). What is the best way to do that in an accounting point of view?
user avatar
  • 121
0 votes
1 answer
54 views

US: carrying forward home office deduction

Business expenses in excess of business income can't be deducted the same year but can be "carried forward" and deducted in future years. However, based on a plain reading of rules regarding ...
user avatar
1 vote
2 answers
90 views

Does anyone ever send a 1099 for amounts less than $600?

(As a US citizen) I have a small side business in addition to my regular full-time job. During a normal year, I receive several 1099 forms for this work, which I file and use Schedule C to pay my ...
user avatar
2 votes
1 answer
68 views

For purposes of US Income taxes: Is delivering for Uber and DoorDash two businesses?

Consider a person who transports people around (for a fee) and gets the riders via Uber. The same person also delivers food for DoorDash. They are not incorporated but they are considered self-...
user avatar
  • 883
2 votes
1 answer
70 views

When does a self-employed tax payer have to make quarterly tax payment? (Safe harbor rule)

My question is about when does a self-employed tax payer have to make quarterly tax payments. I understand that there is a safe harbor rule that says if you owed less than $1000 in taxes then you do ...
user avatar
  • 883
1 vote
1 answer
122 views

Can I deduct the money I lost when sell a car at a loss that i used for gig jobs?

Suppose a person has been using his/her car to deliver food to make money. The car was mainly used for business purposes but it was also used for personal use. The person has been doing this for ...
user avatar
  • 883
2 votes
1 answer
143 views

How much money can a self-employed person put in his IRA

Consider a self-employed person (over 55) who wants to contribute to an IRA. His income from self employment is 8000. That is, on line 31 of his Schedule C, the number 8000 appears. He cannot put into ...
user avatar
  • 883
1 vote
1 answer
62 views

Going from self employment to being an employee

Is there a way to determine what my take home pay needs to be in order to start working for a company, whether it is hourly or salary? I am located in NW WA state and have been self employed since ...
user avatar
  • 111
1 vote
1 answer
74 views

I'm working for parents for money for Roth IRA. What docs might be needed to support it as earned income?

I'm 58 years old, and living at home with my parents. I do some things to help them out, but they are being a bit generous to let me stay in an addition that my grandmother built on to their house. ...
user avatar
0 votes
1 answer
107 views

Self-Employed near retirement needing to start a retirement account

My father is 58, with no retirement accounts. He's run a sole-proprietorship for most of his life with 0-1 employees and doesn't have too much in savings. We're exploring the options of a ...
user avatar
  • 303
5 votes
1 answer
347 views

Do freelancers who receive a W2 qualify for home office tax writeoffs in the US?

Last year I freelanced year round in the U.S. For work performed from Jan-Oct I received a 1099-NEC (Non-employee compensation tax form) from my clients. However, from Nov-Dec I worked for a new ...
user avatar
  • 203
0 votes
1 answer
81 views

To receive payments from a US company, do you need to start a LLC/PVT in India?

A person, let's say "X" got an offer from a US company as a Consultant. X lives in India. To receive payments from US company, does X need to start a LLC/PVT in India? How can X receive ...
user avatar
1 vote
2 answers
175 views

Starting as a sole trader under pre-settled status

I've been in the UK for the past 4 years and I have a pre-settled status. I am currently an employee but I'm considering switching to freelancing/sole-trading to start working with a company abroad. ...
user avatar
3 votes
1 answer
138 views

Changing "Tax Deduction at Source" to "Zero" - How to request your employer not to hold your taxes?

In Canada/Ontario, in both cases of permanent and contract employment, is it possible that I request my employer that they pay me my full before-tax salary and I pay the tax at the end of the year ...
user avatar
  • 133
1 vote
3 answers
217 views

Why should I offer my tutoring services through a more expensive specialized marketplace instead of a cheaper general classifieds website?

I have posted a related question, but it seems the thread of that question has taken a different direction from what I originally intended. The thread mostly discusses the merits of the startup and ...
user avatar
  • 293
16 votes
4 answers
4k views

Why is this tutor agency startup so highly valued by investors?

I am currently a university student, looking to make a bit of extra money. I got excellent grades in high school, so I was looking into tutoring. I figured from research that I could get some clients ...
user avatar
  • 293
1 vote
1 answer
63 views

1040-ES Line: 15. What to put here if I started self-employment in Q2?

I've recently started work as an independent contractor starting in April and I'm trying to calculate my estimated quarterly taxes for Q2. Line 15 on 1040-ES says: "If the first payment you are ...
user avatar
  • 113
3 votes
2 answers
104 views

Accounting/legal service for small part-time consultant

I am starting part-time consulting in the U.S. on the side of my full-time job, mostly for fun (programming and web development). So far, I only completed one project and although I am marketing ...
user avatar
  • 31
16 votes
3 answers
5k views

Can I send back money I "loaned" from my personal account to business account?

I opened a self-employed business (in the UK). As a starting budget I sent £100 from my taxed salary to my business account to have something on it. Can I send it back from my business account to my ...
user avatar
3 votes
1 answer
86 views

Health Insurance Premium deduction for Husband/Wife LLC

Assume the following situation: My wife and I own a LLC in a community property state. (50/50) We are self-employed and have no employees. Under this arrangrement, business income flows through to ...
user avatar
6 votes
3 answers
799 views

Employer forgot to file 1099 for me, when do I file my taxes?

I've provided some services to USA company during 2020 as independent contractor and was waiting for a company to send the 1099-NEC form so I can file my taxes. Now the company just told me they ...
user avatar
  • 161
1 vote
1 answer
82 views

Total income between job and self-employment will exceed Social Security cap

This is similar to another question (here)... but I'm not sure if the answer is the same. I work in the oilfield and I mine cryptocurrency. Because of the current crypto bull cycle the income from ...
user avatar
0 votes
1 answer
132 views

Do I have to pay tax if I spend all my income as a self-employed?

I'm participating in working on a project part time that will probably last for 3 months. I will get ~£7500 income for this. But at the same time I'm working full time in a permanent position. I ...
user avatar
2 votes
2 answers
96 views

What are the tax implications if I share single credit card processor between my two sole proprietorships?

Can someone who has 2 sole proprietorships share a single credit card processing device to save on processing fees? What would be proper way to file taxes in such case? Basically, my concern is that ...
user avatar
2 votes
1 answer
317 views

My 2021 withholding has already paid 100% of my 2020 tax liability. Can I skip paying estimated taxes on self-employment income for the rest of 2021?

My unique situation is as follows: My 2020 AGI was around $20k. My 2020 total tax (Form 1040 line 24) was only $700. My 2021 income will be much higher. I had a W-2 job from January through April of ...
user avatar
0 votes
1 answer
113 views

Freelance income from different currencies (UK)

I have a UK day work and also do some freelance stuff. I will start to work as a freelance for a Swiss university and for a Canadian organisation. I will invoice them in CHF and USD respectively as ...
user avatar
2 votes
1 answer
42 views

Tax and managerial implications surrounding professional service retainers

I am a software engineer that has several clients that need me to do simple ad hoc tasks throughout the year for various projects. I have began considering setting up a retainer-based service for them ...
user avatar
2 votes
2 answers
108 views

Setting up a Limited company online

I am going to set up a Limited Company for myself, as a sole owner. An accountant quoted me a good amount of money to do it. I have seen a number of online companies who say they help you do it for a ...
user avatar
  • 21
3 votes
1 answer
135 views

Tax deduction working from grandparents home

I am a self employed freelancer, and received several 1099-NEC from my clients. I live and work from my grandparents home (for free), and also care for them (for free), and was wondering if this would ...
user avatar
  • 133
5 votes
2 answers
510 views

Can I deduct travel expenses even if I received a W-2?

I have a full-time job. I also work as a freelance musician playing for local theaters. One of the theaters I work for is in another city and they gave me a W-2 for the ~$1000 I made in 2020. ...
user avatar
2 votes
1 answer
68 views

Can the expense of one sole proprietorship be written off against the profit of another

I have a successful rental business, it's regularly profitable and it's an llc If I start another business, and that business records a loss for the year, can I write off that loss against the profits ...
user avatar
1 vote
1 answer
58 views

Got one check independent contract work that paid taxes for Medicare and SS. Should it still count as self-employment income?

I did independent contract-style work for two days last year that paid me $222.67. The check accounted deductions for Medicare and Social Security. I also made $195 from redemptions of gift cards and ...
user avatar
2 votes
1 answer
81 views

US 2020 Schedule SE line 7 vs. married filing jointly

Maybe a simple question, but I haven't found an answer: Schedule SE says that for 2020, earnings over 137,700 aren't subject to social security tax. We file jointly; my spouse has self-employment ...
user avatar
0 votes
1 answer
45 views

C2C Employment considered self employed for Fannie / Freddie?

I was recently offered a job after interviewing. They offered either w2 or corp 2 corp work. I chose corp to corp and created an LLC and signed a year long renewable contract as a single member LLC ...
user avatar
  • 101
1 vote
2 answers
88 views

LLC vs S-CORP for Side Business along with regular job

Situation: A person has a good-paying job where the Social Security tax limit is reached or almost reached every year, and the person also has a side business (LLC) that brings in more than 100k every ...
user avatar
  • 111
1 vote
1 answer
90 views

When should my friend file income tax?

My friend's income in the period apr 1, 2020 - mar 31, 2021 will be around rs. 875,000 (eight lakh seventy five thousand) only. He is a self employed business professional in information technology ...
user avatar
7 votes
2 answers
304 views

Adult Entertainment Taxes; Independent Contractor, SMLLC, LLC, S-corp, etc?

I've been dancing for a few years. I've been filing taxes as an independent contractor. I do not receive any 1099s. All my earnings are cash, received that day. I pay a house fee (rent for being ...
user avatar
1 vote
1 answer
50 views

UK-based freelance invoicing overseas

I work as a freelance (sole-trader) doing web-related services. I have a potential client who is based in the Dominican Republic, but I am not entirely sure what I should bear in mind regarding tax-...
user avatar
1 vote
1 answer
74 views

Do I pay UK VAT for digital services provided to a company in Denmark?

My situation I'm a UK based freelancer who provides website development services. I'm a limited company and VAT registered. I provide my services on an online platform based in Denmark. This platform ...
user avatar
  • 245
2 votes
1 answer
59 views

Can an S-Corp pay the sole owner/employee with a 1099?

Suppose a person has a one-person S Corporation, and the corporation is paying the owner/sole employee with a 1099. The owner then pays Self-Employment tax on a Schedule C when filing. Is this ...
user avatar
1 vote
2 answers
130 views

Statistically who gets higher **average** income, an employed engineer or IT startup founder? [closed]

Founding a startup is a great idea, you may become as rich as Jeff Bezos, Elon Musk, Bill Gates or Mark Zuckerberg. Wait... or may not. It of course depends on your skills and perspiration they say. ...
user avatar
  • 11
4 votes
1 answer
677 views

Taxes mileage deduction for delivery worker and methods of proof

I started working for Doordash as a food delivery worker (self-employed contractor I think is the status). I read (Do I need to pay taxes as a food delivery worker if I make less than $12,000 in a ...
user avatar

1
2 3 4 5
8