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.
391
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Can I make a trip tax deductible if it is for personal development?
I'm a part-time software engineer, and I want to go to the Bay Area to meet people I've only met online, do networking, meet my employer and former employer in-person, etc. However, it's a trip I'm ...
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8
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4
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3k
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Are miles driven for business deductible expenses if the travel expenses are reimbursed?
I completed some work for an organization. I was paid as an independent contractor and expect to be issued a 1099. For one part of the work, I was required to travel a significant distance (by car). ...
- 1,687
6
votes
2
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754
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Filling out W-4 for a second job, the first job is self-employed gig work
I'm starting a second job that's asking me to fill out a W-4. I have been self-employed with a highly variable, small income, and I receive a 1099 from it -- I don't think they are withholding from my ...
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3
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1
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117
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What Schedule C Health care Expenses can I deduct?
I am helping my daughter do her taxes, and have a question about what deductions are appropriate.
She is on her own, not a dependent anymore but still on my insurance as she's under 26. Her income is ...
0
votes
1
answer
65
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Setting up S-Corp for Independent Software Developer
I have been working on a w2 most of my career and recently got the opportunity to work as an independent software developer for a firm on a 1099. I was thinking of setting up an S-corp as I think ...
1
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1
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60
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What is the distinction between "earning untaxed income" and "acting as a sole trader" (UK HMRC)
I live in the UK and have a full-time job paid in the usual way under PAYE. In addition, I have received small amounts of income from various organisations (honoraria in return for activities ...
- 494
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1
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68
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Trying to understand 1-person LLC taxes (paid myself as W-2)
I'm trying to prepare my 2022 taxes (using TurboTax Deluxe, if you care).
In the beginning of 2022, I created a 1-person LLC.
I set myself up as a W-2 employee of my LLC and paid myself on payroll. I ...
- 430
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5
answers
2k
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When to claim check dated in one year but received the next
A check bears a December 2023 issue date. I receive it in the mail in January 2024 and deposit it in January 2024. I operate this business on a cash accounting basis (not accrual), so what do I do ...
- 1,687
6
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3
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2k
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US: how to prove business expenses?
I'm a freelance writer who works from home. My internet fees should count as business expense and be deducted from gross, but the question becomes how much? Since I also use internet for entertainment ...
4
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1
answer
257
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Is a purchase still a Schedule C expense if its paid using a gift card?
I've made an Amazon purchase for my business (self-employed) solely using an Amazon gift card which I received for non-business reasons. Does this still qualify as a business expense on my tax return?
- 155
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2
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171
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Will I ever have to prove that I wasn't performing work in a certain state?
I will be completing a project in another state, and I will be paid as an independent contractor (and issued a 1099). I will be working in my own state and submitting my work when done with the ...
- 1,687
2
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1
answer
88
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I'm self employed and I 1099 someone on my Schedule C. This person also happens to watch my kids as daycare, can I double dip the expense?
I am self employed and I have a worker that I issue a 1099. This person helps me around and picks up my kids and watch them as childcare service. I know I can deduct the 1099 income as an expense on ...
- 21
1
vote
1
answer
96
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Are there any reporting requirements for large tips when self-employed?
I am technically self-employed and report my income as such on my tax return, along with paying quarterly estimated taxes as required.
My income is entirely composed of voluntary tips, and almost ...
- 155
1
vote
1
answer
38
views
Can an individual foreign LLC be a CFC?
IRS defines a Controlled Foreign Corporation in terms of U.S. shareholders and voting power (Ctrl + F to CFC. In general), with some wiggle room.
Suppose I'm an independent contractor working from ...
- 27
1
vote
1
answer
31
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Is a foreign LLC exempt from self-employment tax?
A site writes,
If you conduct your business through a foreign LLC, your salary paid by the foreign LLC would not be subject to US Social Security and Medicare Tax. And, it would be eligible for the ...
- 27
4
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1
answer
302
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US Social Security taxes while working for Canadian employer but living in third country
https://stackoverflow.blog/2021/02/19/podcast-314-how-do-digital-nomads-pay-their-taxes/ got me thinking, how would a United States citizen, living in Taiwan (which has no Social Security totalization ...
- 151
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1
answer
111
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What are the implications of receiving services in lieu of payment when self-employed?
I'm newly self employed so forgive me if this is a silly question.
My client has offered to pay for half of a training course I want to go on as the sole payment for my services. The value of that is ...
- 31
1
vote
1
answer
184
views
Do you get any social security credits if you put 100% of your income in a 401(k)?
Scenario:
Your spouse is the primary earner
You had a 1099 side-job earning $15k
You put all $15k in a solo-401(k) plan
Would you earn any social security credits in this situation?
- 890
2
votes
1
answer
103
views
How to get a mortgage soon when self-employed in 1-person LLC that is <6 months old
In Jan 2022, I got hired to work (remotely, living in USA) as a senior software engineer for a non-US company that was unable to hire me as a W2 full-time employee; they required me to create an LLC (...
- 430
1
vote
1
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284
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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 ...
- 769
2
votes
1
answer
47
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 ...
- 411
2
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0
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65
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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 ...
- 121
2
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0
answers
67
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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 ...
- 121
1
vote
1
answer
49
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 (...
- 427
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2
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1k
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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 ...
- 427
5
votes
1
answer
143
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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 ...
- 427
1
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2
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65
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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 ...
- 123
3
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1
answer
74
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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?
- 141
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1
answer
59
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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 ...
2
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2
answers
268
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 ...
- 1,687
3
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1
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74
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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-...
- 1,378
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1
answer
112
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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 ...
- 1,378
2
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1
answer
135
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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 ...
- 1,378
3
votes
1
answer
182
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 ...
- 1,378
2
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1
answer
84
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 ...
- 407
2
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1
answer
77
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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. ...
- 123
1
vote
1
answer
108
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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 ...
- 313
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1
answer
356
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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 ...
- 213
1
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1
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90
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 ...
2
votes
2
answers
317
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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.
...
4
votes
1
answer
169
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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 ...
- 143
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3
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229
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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 ...
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4
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4k
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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 ...
- 303
2
votes
1
answer
102
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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 ...
- 123
4
votes
2
answers
110
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 ...
- 141
16
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3
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5k
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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 ...
- 263
3
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1
answer
92
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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 ...
- 107
6
votes
3
answers
853
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 ...
- 161
1
vote
1
answer
83
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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 ...
- 163
0
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1
answer
145
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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 ...
- 263