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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80 votes
4 answers
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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, ...
Fattie's user avatar
  • 13.8k
44 votes
2 answers
5k views

What US tax laws apply to a 13 year old game developer?

I'm a thirteen year old game developer and I am wondering what the tax laws are as a minor in the US. I don't currently make any money off of my games but I'm thinking of selling on the Google play ...
Kaden Atmore's user avatar
38 votes
3 answers
11k views

In USA, can I set up a one-person corporation and pay myself mainly through dividends?

In the UK an IT-contractor can save in taxes by opening a company, paying themselves a minimum wage as a salary and then taking a larger amount of income as dividends. Is this possible (for a single-...
x457812's user avatar
  • 991
33 votes
11 answers
6k views

What warnings would you tell a friend about to enter a multi-level marketing (MLM) business venture?

Imagine you had a friend who was about to join a multi-level marketing (MLM) business, despite your advice to the contrary. Another friend or family member had already convinced them the opportunity ...
Chris W. Rea's user avatar
  • 31.7k
32 votes
6 answers
44k views

Why do consultants or contractors make more money than employees?

Why do consultants or contractors make more money than employees?
user avatar
32 votes
4 answers
18k views

When should I start an LLC for my side work?

I am doing quite a bit of sidework this year and wondering at what point would it be a good idea to "start a business" and bill through that.
Jeff Martin's user avatar
25 votes
2 answers
7k views

Do I need to pay taxes as a food delivery worker if I make less than $12,000 in a year?

I started working for Doordash, a food delivery service. Technically I think I am a self-employed contractor. I saw online that you don't have to declare taxes if you make less than $12,200 in a year. ...
deliveryguy's user avatar
20 votes
2 answers
8k 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 ...
A-Foreign-Scientist-2018's user avatar
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 ...
John Hon's user avatar
  • 303
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 ...
Gergő Horváth's user avatar
16 votes
4 answers
24k views

W2 vs 1099 Employee status

I've in the middle of an offer for employment. During negotiations, I've asked for more money due to distance involved (Further by far than I'd normally consider, but the pay raise I'd get is ...
WernerCD's user avatar
  • 912
14 votes
4 answers
3k views

Offered a job: Should I go as consultant / independent contractor, or employee?

Two partners started a business, and it's grown pretty big (comparatively). Now they've asked me to be the CTO, and I've determined it's a good position for me to take. I'll be getting 90% of my ...
linkedlinked's user avatar
  • 1,190
13 votes
1 answer
7k views

Can I get a mortgage if I'm employed by my own company, rather than self employed?

My partner and I are looking to buy a house as soon as possible (i.e., the second we have the deposit in the next 3-4 months). My partner is currently in full time work but we want to focus on our own ...
Willow's user avatar
  • 183
11 votes
8 answers
6k views

How much should a hobby business make to be worth the effort for taxes?

My wife was a software developer for 15 years until we had our daughter, and since then she has been primarily concerned with caring for her. She has been volunteering her time for personal ...
NL - Apologize to Monica's user avatar
11 votes
4 answers
2k views

High self-employment rate projected by TurboTax

My wife has performed a few jobs as a dog walker/pet sitter through the Rover website. Her total for 2016 was $1,139.00 - $793.90 were transferred via PayPal and $345.10 were transferred via check. ...
MisterStrickland's user avatar
10 votes
3 answers
7k views

Full-time work + running small side business: Best business structure for taxes?

Currently I have a full time job (IT industry) but from time to time I do a side project. Most of the times my clients agree to pay me cash as the amounts are not large. However, last year there ...
user avatar
10 votes
1 answer
390 views

How do taxes work with donations made to an individual, e.g. for free software I wrote?

If I offer a piece of software for free, but give users the option to make a donation on the webpage, what laws govern those donations? Do I report it as income? Is it subject to just the same amount ...
temporary_user_name's user avatar
10 votes
1 answer
7k views

I'm self-employed with my own LLC. How should I pay myself, given my situation?

I do a ton of freelance web design and decided to setup a simple LLC so I could have a credit card to make business purchases with. From my limited understanding, I can choose to be taxed as an S-corp ...
Kirk Ouimet's user avatar
  • 1,858
9 votes
4 answers
11k views

Can I ask my employer if I can work as a contractor instead of an employee?

Can I ask my employer if I can work as a contractor instead of an employee?
user avatar
9 votes
5 answers
2k 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 ...
nuggethead's user avatar
  • 1,967
9 votes
1 answer
4k views

Reporting Income Under $600 to IRS When No 1099 MISC Issued

I work on the side as a freelance writer and get paid by magazines. Usually the amount is $400 - $470 per calendar year. The magazine does not issue me a 1099 MISC since I made less than $600. Do I ...
JohnDoe's user avatar
  • 113
9 votes
3 answers
607 views

Freelancers in the US: pay estimated quarterly taxes or pay when you file?

My wife is currently freelancing, and the IRS would want us to file and pay estimated taxes every quarter, which is a pain. I could take extra deductions out of my paycheck, but figuring out the ...
Korneel Bouman's user avatar
9 votes
3 answers
814 views

Save a dollar for house downpayment or put it in an individual 401(k)?

I am a self-employed independent contractor. I'm trying to decide what to do with any extra income I earn over the near future, given that I have the eventual goal of purchasing a house (within 2-3 ...
Jeff Evans's user avatar
9 votes
3 answers
173 views

Comparing/reviewing personal health insurance plans for the self-employed

I'm looking at needing to acquire personal health insurance in the next few months as I move from a job with good benefits to self-employment, and I've found that it's pretty difficult to compare the ...
Michael C. O'Connor's user avatar
8 votes
4 answers
3k 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). ...
nuggethead's user avatar
  • 1,967
8 votes
1 answer
3k views

What are the benefits and downsides to an LLC vs. Sole Proprietorship vs. Individiual?

As a followup to my previous question, what benefits are there for an LLC vs. a Sole Proprietorship? What are advantages and disadvantages to both and also vs. just being paid as a person?
Jeff Martin's user avatar
8 votes
4 answers
2k views

Does a US citizen freelancing for a US company while resident in the UK have to declare this for UK tax?

I am a US citizen living and working in the UK on a spousal visa. (My husband is British.) I've got the opportunity to do some freelance work for a US company on top of my full-time job, getting paid ...
Anne's user avatar
  • 81
8 votes
2 answers
742 views

How to treat blog income for tax purposes & report PayPal income to the IRS?

I made a small amount of money for a blog I write, and I'm wondering how to enter it into my tax form. I was paid via PayPal so I have no W-2. (And not reporting it to the IRS is not a viable option.) ...
Jason S's user avatar
  • 792
8 votes
3 answers
704 views

Can value from labor provided to oneself be taxed?

I am considering taking time off from work in order to build a new home in which we would live. It would be my full time job for which no income stream would be generated and would be self financed. ...
amphibient's user avatar
  • 1,047
8 votes
1 answer
1k views

Filing Tax on Income Received from iPhone App

I have two applications in the app store which are doing fine! I wanted to know how do I report the income to the IRS that I received from my iPhone apps. I called IRS and they told me to report as ...
azamsharp's user avatar
  • 373
8 votes
2 answers
3k views

What are the risks & rewards of being a self-employed independent contractor / consultant vs. being a permanent employee?

What are the risks & rewards of being a self-employed independent contractor / consultant vs. being a permanent employee? Note: I am, in fact, a self-employed independent consultant, and I often ...
Chris W. Rea's user avatar
  • 31.7k
8 votes
5 answers
17k views

Is "premium tax credit repayment" deductible as health insurance cost for self-employed?

Under the ACA, you estimate your income for the year when signing up for a health insurance plan via the exchange. If you are eligible for a subsidy, it is calculated based on this estimated income, ...
BrenBarn's user avatar
  • 24k
8 votes
2 answers
568 views

How do banks feel about loaning money to independent IT contractors for a home mortgage?

I'm in IT, I go on contracts that range from 3-6 months, but they have a termination clause of 2 weeks usually. I earn $900 NZ per day. How lenient would a bank be on lending say $400K to me, which I ...
williamsandonz's user avatar
8 votes
2 answers
2k views

I run my own nonprofit corporation. Should I pay myself as a contractor or an employee?

I started a run my own nonprofit corporation. We have a board of directors and my title is executive director, founder, and am on the board. We have been completely volunteer staffed including ...
Jeremy's user avatar
  • 81
8 votes
1 answer
7k views

How to pay myself as a single person corporation in Ontario? Should I get an accountant?

I'm an IT contractor and required in some of my contracts to have a corporation. I created my corporation, opened a corporate account and have been collecting income for about 6 months now... ... I ...
mgjk's user avatar
  • 275
8 votes
1 answer
1k 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 ...
cxrodgers's user avatar
  • 251
8 votes
2 answers
3k views

Is freelance income earned by a U.S. citizen while living abroad subject to state income tax?

My wife is a freelance web developer, formerly residing and paying taxes in NY. She left her job in December 2011. We moved to Italy (where I am employed by the U.S. government) in January 2012. ...
Mike Christiansen's user avatar
7 votes
3 answers
6k views

Why should I report extra income from a side-job to the IRS?

Say an individual earns extra money on the side by tutoring through craigslist. Moral obligations aside, why should that person report those earnings when doing taxes? What I'm asking is how the IRS ...
temporary_user_name's user avatar
7 votes
3 answers
755 views

Is it worth working at home to earn money? Can I earn more money working at home?

I just started using an online money-making site... My question would be Is it worth working at home to earn money? Can I earn more money working at home?
Pandiya Chendur's user avatar
7 votes
4 answers
177 views

Can I set up a second 401(k) at my LLC?

I have a 401(k) at work. I also have an LLC. Can I start a second 401(k) and contribute an additional $16,500?
rsteckly's user avatar
  • 261
7 votes
2 answers
523 views

I may earn a lot of cash soon through self-employment on a lucrative project. How to handle the tax?

I'm in Canada, and am young and don't know anything about finance. I've been working part-time as a software consultant for a friend who's starting a marketing company. He recently landed a job with ...
Carson Myers's user avatar
7 votes
2 answers
543 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 ...
Wonderingway's user avatar
7 votes
1 answer
5k views

Do I have to send in form 1040ES for estimated tax if paying online?

I'm a self employed freelancer who is paying quarterly taxes. The IRS shows that I can direct pay online, on their website. Do I have to send in form 1040ES, or do I just pay the amount I calculate? I'...
luke's user avatar
  • 71
7 votes
3 answers
278 views

What are some tax strategies for when you are self-employed with low income, but every 4-8 years you get a huge spike of income?

I am self-employed in the United States, and am working on long-term projects. Most years I don't make much (lets say $20k), but every 4-8 years, after a large project is complete, I expect to get a ...
augh's user avatar
  • 71
7 votes
1 answer
7k views

W2 and 1099 (self employed) income in same year: social security taxable income limit?

For 2013, the maximum taxable social security income for employees on wages is $113,700, and for self employed individuals it is also $113,700 (though obviously at a higher rate). Suppose a person is ...
Jeff Evans's user avatar
7 votes
1 answer
599 views

Working as freelancer with two partners. How do I report the income for tax purposes in India?

I am a software engineer working in a IT company. Apart from this, I am also working as a freelancer with a U.S. client. Money comes in USD to my Indian bank account. I have two partners with an ...
sandeep's user avatar
  • 71
7 votes
1 answer
325 views

Do overall 401(k) contribution limits sum across employers?

Assume I have a day job that has a 401(k) with no matching and I am also self-employed. I'm considering structuring my side business as an S corp and setting up a solo 401(k) in addition to the 401(k) ...
farnsy's user avatar
  • 15.1k
6 votes
4 answers
903 views

(Legitimate & respectable) strategies to generate "passive income" on the Internet?

After reading RDPD by R. Kiyosaki I'm trying to find chances to build up my Passive Income. By Passive Income I mean that I do not have to take care day-to-day of that "thing", but it generates some ...
Cornelius's user avatar
  • 221
6 votes
3 answers
874 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 ...
Acidon's user avatar
  • 161
6 votes
1 answer
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 ...
Writeaday's user avatar

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