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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.

2
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1answer
82 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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0answers
46 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 ...
1
vote
0answers
42 views

How does an Indian citizen work as a freelancer for a foreign company? [closed]

There are two similar questions have been asked before: Indian citizen working from India as freelancer for U.S.-based company. How to report the income & pay tax in India? Indian citizen wants ...
3
votes
2answers
150 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
77 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
30 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
39 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
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0answers
152 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
111 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
vote
1answer
66 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
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1answer
85 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
163 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
votes
1answer
178 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
votes
1answer
125 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
votes
1answer
221 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
87 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
98 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
48 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
vote
0answers
25 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
86 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
233 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
188 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
81 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
votes
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
43 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
vote
1answer
169 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 ...
-2
votes
2answers
93 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
213 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. ...
2
votes
1answer
79 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 ...
3
votes
1answer
271 views

Minimize taxes with very uneven personal income

If you're self-employed, and your personal income is much higher one year than the previous years, can you distribute your reported taxable income to the previous years somehow in order to minimize ...
0
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1answer
43 views

Employee v. 1099 small expenses in the USA

In the USA, Sally is a normal employee making $100,000 a year At the end of the year, she files her taxes with taxact.com and pays the $20 fee. Sally simply claims the standard deduction of $12,700....
78
votes
4answers
13k views

The USA “self-employment tax dodge” mystery

For non-US readers: In the US, for those who are self-employed, there are many specific taxes. One particular tax is the confusingly named "The Self-Employment Tax". Thus, if you are self-employed, ...
2
votes
0answers
333 views

tax identification number in W8-BEN - Canada specific question

I live in Canada and have done a contract job with a U.S. company, and they ask me to fill a W8-BEN form to pay me. I'm asked to note that on the W8-BEN Form either section 5 or section 6 must be ...
1
vote
1answer
62 views

Self-employed: Claim health insurance on both Schedule A and on 1040 Line 29?

Situation: Tax return for someone who died. They were self-employed with a net profit and with itemized deductions that are worth more than the standard deduction. The insurance expenses are more ...
3
votes
2answers
115 views

Deducting travel to co-work space?

For those who are self-employed and periodically work at a library or cafe, because formal co-work spaces don't exist in your area, do you deduct the mileage to/from these locations?
3
votes
2answers
117 views

Non-resident alien tax

Our daughter-in-law is a Guatemalan citizen and a ‘green card’ holder since 2014 (the year she married our son- a U.S. citizen). They are foreign missionaries and have lived in Guatemala since 2015. ...
4
votes
1answer
96 views

Do I file for self-employment tax if i'm crop sharing?

I inherited a farm from my grandparents last year and decided (because I know nothing about farming) to do a crop sharing agreement. I would help the guy by paying 40% of the expenses and taking 40% ...
2
votes
1answer
195 views

Legal issues for selling software for a student on F-1 visa [closed]

A friend of mine is going to sell subscriptions for a SAAS software and he is on F-1 student visa as a non-resident alien. I have got a couple questions about legal issues: Does he need to form an ...
2
votes
1answer
554 views

My fellowship income was reported in Box-7 of 1099-MISC. How do I report it?

I am a grad student, and am supported by a living stipend from a government supported fellowship program. The contracted company managing this program sent everyone MISC-1099 forms, and reported the ...
5
votes
1answer
71 views

Are Medicare premiums deductible on schedule C if you also have a secondary policy from previous employer?

My wife and I both receive Medicare parts A and B. We can not participate in previous employer's health plan as primary because we are on Medicare. However, we do participate in the employer's plan as ...
4
votes
1answer
303 views

Remote work done in New Zealand while on a Working Holiday Visa - who do I pay tax to?

I was in New Zealand on a working holiday visa in early 2017 for about nine weeks - across the last few weeks I was there, I did some remote software development work for a few different clients, all ...
2
votes
3answers
117 views

Why don't “normal” tax credits apply towards self-employment tax?

This is a USA tax question. Preparing my taxes (regular form 1040), I noticed that the "Other Taxes" section comes after the "Tax and Credit" section. I have some "wages, salaries, tips" income, ...
1
vote
0answers
149 views

Which form to use, 1040 ES or 941, for one member S corp quarterly tax?

I am a contractor, and want to form an LLC and select being treated as S corp (by 2553 form). I read online about federal quarterly payroll tax using form 1040 ES, but this article suggested to use ...
3
votes
1answer
146 views

Can I deduct some of the costs for a car if I write about it on my for-profit blog?

To preface, my goal is not to game the tax system. I'm trying to understand this to see if it is financially reasonable. So I am legitimately interested in starting a blog/YouTube channel in the tech ...
6
votes
1answer
1k views

Do I need to pay medicare/social security as full-time employee but with a business on the side of which I'm the sole owner/employee?

I'm working full-time for a company, but I also have my own mobile app business on the side. Do all the regular self-employment rules apply to me? I'd like to take the money I make from my side ...
0
votes
1answer
193 views

Taxes and health insurance: Find SLCSP (second lowest cost silver plan) before 1095As are issued

To do 2017 end-of-year tax planning, I need to know the second lowest cost silver plan (SLCP) for my Colorado zip code. I've tried searching my health insurer's site, the state marketplace site, and ...
8
votes
1answer
436 views

Can I turn myself into a pass-through corporation in order to save money on income tax?

Given the pending changes in the tax code, I'm wondering if I could legally structure myself as a pass-through corporation in order to decrease my income tax bill. How would I go about doing this? How ...