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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.

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-2 votes
3 answers
190 views

Double self-employment tax (MA state and federal)?

I am living in Hong Kong but paying taxes as a US citizen to the US. The company I work for is in MA. Although I receive a 1099-NEC, in actual practice I am a part-time employee. I understand that I ...
1 vote
2 answers
65 views

Contributions (ira, hsa, etc) for minors?

I know a minor who has some decent self-employment income that has a heavy self-employment tax pending. No personal deductions are being made currently, as the minor doesn't even have a retirement or ...
0 votes
2 answers
282 views

How to fill out a W-4 for a job when you're also self-employed, if your self-employed income puts you in a different tax bracket?

I've been self-employed for a while, and am now starting a second job with an employer. I'm a bit confused as to how I should complete the W-4 - I just want to make sure I'm paying the correct amount ...
4 votes
1 answer
159 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 ...
1 vote
1 answer
177 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 ...
4 votes
1 answer
115 views

How do NI Qualifying Years work if you're self-employed *at a low rate* AND employed

In order to receive a full UK State Pension you must accrue enough "Qualifying Years". I (think that!) I understand how qualifying years work if you're just employed. And I (think that!) I ...
3 votes
1 answer
146 views

Can I re-file a missing Schedule 1 in this situation?

A friend of mine, with self-employment income did his/her income tax using Turbo Tax. Turbo Tax produced the tax return including Schedule 1. My friend has a Qualified business income deduction. ...
0 votes
2 answers
169 views

Can I deduct driving expenses when I am driving for a ride share service and hoping to get a passanger?

Imagine a person is driving for a ride share service such as Uber. He is at his favorite spot waiting for his next passenger. He then gets a passenger and drives the passenger where he/she wants to go....
3 votes
1 answer
103 views

Can self-employed skip quarterly tax payement if compensated by spouse extra witholding?

Suppose a couple made a one employed spouse and one self-employed spouse. Further suppose that the couple choose to file jointly. Instead of having the self-employed spouse pay anticipated taxes of x$ ...
4 votes
2 answers
5k views

Making separate individual estimated tax payments when married filing jointly

My spouse and I typically file our tax return as married filing jointly due to the advantages like the child and dependent tax credit, and we plan to do so again this coming year. This year, we have ...
0 votes
0 answers
60 views

What late payment fees would apply for a self-employed person in the UK on contract with a French company?

I am owed payment for a contract from a French company, which is now 6 months late. The UK and EU law both stipulates 30 days is the maximum amount of time that can pass before late payment fees are ...
0 votes
2 answers
259 views

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 ...
8 votes
4 answers
4k views

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). ...
6 votes
2 answers
7k views

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 ...
3 votes
1 answer
465 views

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 ...
3 votes
3 answers
1k views

Can I deduct retirement plan contributions from my self-employment income?

I'm self-employed. I pay self-employment tax on ( income - business deductions ) * 92.35%. Can I make contributions to a retirement account that counts as a business deduction? More details: I'm ...
0 votes
1 answer
210 views

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 vote
1 answer
73 views

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 ...
2 votes
2 answers
192 views

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 ...
0 votes
1 answer
254 views

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 ...
6 votes
3 answers
2k views

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 ...
10 votes
5 answers
12k views

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 ...
2 votes
1 answer
120 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 (...
4 votes
1 answer
705 views

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?
2 votes
1 answer
832 views

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 ...
2 votes
1 answer
140 views

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 ...
1 vote
1 answer
131 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 ...
1 vote
1 answer
50 views

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 ...
4 votes
2 answers
1k views

Working as a 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 ...
4 votes
1 answer
316 views

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 ...
3 votes
1 answer
112 views

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 ...
1 vote
1 answer
205 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?
1 vote
1 answer
784 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 ...
2 votes
0 answers
75 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 ...
2 votes
1 answer
707 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 ...
1 vote
1 answer
94 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
0 answers
96 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 ...
1 vote
1 answer
53 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 (...
6 votes
2 answers
2k 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 ...
5 votes
1 answer
255 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 ...
0 votes
1 answer
527 views

How does one calculate their Gross Income using Quickbooks Online that is to be reported for Tax Filing?

Using quickbooks online, I'm able to generate my Profit and Loss statement and I see my Net Income for the year 2019. Is this the final Gross Income number that I will be reporting on my tax return or ...
1 vote
2 answers
197 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 ...
3 votes
1 answer
107 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?
1 vote
1 answer
65 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 ...
2 votes
2 answers
2k 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 ...
6 votes
1 answer
514 views

Which is more advantageous: Lifetime ISA or SIPP?

I should preface that I am a self employed sole trader in my early twenties, and a basic rate taxpayer averaging somewhere between £28-32,000 per annum. The variation not only arises due to the nature ...
3 votes
1 answer
120 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-...
2 votes
1 answer
285 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 ...
3 votes
1 answer
189 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 ...
2 votes
1 answer
85 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 ...

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