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19

75k is short of the 'highly compensated' category. Most US citizens in that pay range would consider paying someone to do their taxes as an unnecessary expense. Tax shelters usually don't come into play for this level of income. However, there are certain things which provide deductions. Some things that make it better to pay someone: rental income ...


11

If you're working as an individual and not a company then you should submit W8-BEN. If you're invoicing the client as a LLC/Corp/Partnership or anything else other than your own private name - you should submit form W8-BEN-E. You don't have to have a US tax id number, but if you do - write it down. It's either the SSN or ITIN. If you don't have a SSN (...


9

There are few things going on here: Some people hire tax advisers some don't. It depends on your own preference and level of comfort with numbers. A really good alternative is tax software for example HRBlock or Turbo Tax. They take you to a very detailed questionnaire and do the tax return for you. I've used both and always came ahead with tax software. I ...


8

In reality, I do help her every now and then with various bits (specific to her work, e.g.: translation, graphic design, software tutorials) but I would not think of it as consulting... But you are consulting for her, and you should be paid for your work. EDIT: you can either bill her for hours worked, or she can put you on retainer, where she pays you ...


8

This may not be entirely up to you and your employer. The IRS has rules that classify a job as employment (W-2) or independent contract work (1099) based on facts of how the job is performed and supervised. If you want a particular type of income, you may need to structure the substantive work arrangements accordingly. That said, the IRS seems mainly ...


5

Do I need to file any forms before filing my taxes for example during the year? I know I will need to keep about 30-50% of my income (from consulting) aside for tax purposes. But someone told me that I need to file some forms before the beginning of each quarter. What are these forms and how should I be filing them (instructions)? You're talking ...


5

Look at taking a deduction under Section 179. Generally, you can deduct the entire cost of certain business equipment (up to a limit) in the year you purchase it, rather than depreciate it over time. There's a dedicated web site with lots of information. Make sure you qualify and keep records for each piece of equipment you elect under Section 179. To make ...


4

As others have said, make sure you can and do file your taxes on a cash basis (not accrual). It sounds like it's very unlikely the company is going to issue you a 1099 for invoices they never paid you. So you just file last year's taxes based on your income, which is the money you actually received. If they do pay you later, in the new year, you'll include ...


4

Since you mentioned a W2, I'm assuming this is based in the United States. If you're a consultant, you should receive a 1099 at the end of the year (assuming you did more than a minimal amount of work over the course of the year- I believe $600). That 1099 should have the gross amount the company paid you. You'll then fill out a Schedule C (I assume you'...


3

You'll have to talk to a lawyer about the legal question and a licensed tax adviser (lawyer/CPA/EA) about the tax question. From where I see it, there's no upside either. Since you're performing the work yourself, the limited liability of a legal entity won't limit your liability much, because you're still liable for your own misdoings. You might be better ...


3

Short answer: the company will give you a 2014 1099 form with the amounts paid, so make sure your tax return matches. Longer answer: contact their HR department and alert them of the overpayment, and ask if it's ok for you to reimburse them for the difference due (and then you'll be paid in full). Let them know you want to do this so all the income will be ...


2

Note too that being a contractor means that you will unavoidably have periods between contracts; you tend to be out of work more often than a salaried employee would. You need to set your rates so your average income, including those down times, adds up to a living wage including all those benefits that aren't being covered. If a company hires a contractor, ...


2

Unemployment is a state not federal program so it would be important to know what state you are in. For my state, California, it appears that your wife would be eligible: =======quote========= Meeting Eligibility Requirements An individual who files for unemployment insurance (UI) benefits must meet specific eligibility requirements before benefits can be ...


2

Frequency of paychecks is up to the company. Many pay monthly. Some pay twice a month, or every other week. I haven't heard of any paying more frequently unless they were tiny "mom and pop" businesses or grunt-labor/fast-food minimum-wage jobs. Cutting the checks more often is more expensive for the company. And frequency of pay is one of the things you ...


2

LLC is a liability protection tool and foreign earned income exclusion is a tax topic. They're orthogonal. Regarding LLC you should talk to a liability attorney, since the main goal of the LLC is separation of assets and limiting your liability exposure. Foreign earned income exclusion is irrelevant for you, since you said you'll be living in the US, thus ...


2

Besides the excellent answer by @AK, the withheld tax on a bonus check can be calculated as if that is a paycheck and you make that much every period. It all depends on how your payroll department configures things. (My ex-wife and I experienced this when getting her Christmas bonuses.) Of course, things would equalize when you do your taxes.


2

Is one method better than the other? (in terms of paying less taxes) Yes, both would contribute to your income and tax liability. However, as a bonus check your employer pays through a W-2 and pays half of your FICA and Medicare tax, whereas through a 1099 you pay for all of it. This means you get 7.65% less gross income or about 5.89% less net income [7....


2

It's going to depend entirely on your tax situation, its complexity, and your willingness/interest in dealing with tax filings. Personally I find that not only do I not enjoy dealing with figuring out my taxes, but I don't know even a fraction of the possible deductions available and all the clever ways to leverage them. Plus the tax code is changing ...


2

Please be sure this is not some kind of scam. i.e. you know the company very well and can verify independently that the offer is genuine. Living in India, can I be a direct employee of the UK company? Is it legally allowed in India to draw salary from a UK company? Will I be paying income tax in India or in UK or in both the countries? You can be; ...


2

Nanoman's answer is great, but if both choices are valid then we need to assess which is better from a tax perspective. Starting in tax year 2018 there is a 20% pass-through income deduction that you'd qualify for if you chose 1099. When self-employed you pay self-employment tax (15.3%) which is equivalent to FICA/Medicare, but when employed your employer ...


2

You can, but there are implications. Either: You are self-employed. You must register with HMRC as self-employed and fill in a self-employed tax return and possibly also a self-employed National Insurance return. You must keep self-employed accounts. or You are an employee. Your mother must register as an employer with HMRC and operate a PAYE scheme. ...


1

"In reality, I do help her every now and then with various bits but I would not think of it as consulting... then again, "consulting" can be open to interpretation." To me, this indicates that you know you would be stretching the bounds of reality by accepting a paycheck from your mother. Please don't commit tax fraud. If you are paid a fair wage for the ...


1

There is no minimum amount. Read the RBI Circular, if the amount is more that Rs 1,00,000; then purpose of remittance needs to be recorded. This link gives out the various purpose of remittance. It is best advised to consult a professional CA for advise in your specific case.


1

Issue an invoice by writing down some numbers and presenting it to your client. What software you use to accomplish this is pretty much up to you. I keep the amounts in a spreadsheet and export the "pretty" page to PDF before emailing it. The current VAT registration threshold is £85,000. You must register for VAT if your taxable turnover exceeds that ...


1

Good professional tax advice is expensive. If your situation is simple, then paying someone doesn't give you more than you could get from a simple software package. In this case, doing your own taxes will save you money this year, and also help you next year, as your situation grows steadily more complex. If you don't do your own taxes when you're single ...


1

Couple of points about being a consultant in the US: It sounds like the rules for what you can deduct may be more lax in Italy. For example, you can deduct a certain percentage of your home for work but the rules are relatively strict on your use of that space and how much is deductible. Also things like clothes, restaurants, phones, car use, etc must ...


1

According to this link, PAN in India is the TIN https://www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/tax-identification-numbers/India-TIN.pdf


1

I would look into the possibility that the promise "that no taxes will be withheld" is all about your status as a 'consultant'. They may be meaning you to be treated like a business they buy services from. In Canada the distinction is very watery and I presume the same in India. If you agree to become a business, then you must look into how that business ...


1

1.If the compensation that I receive is over 10 lakhs, how much would be deducted as tax No tax will be deducted by the company. You have to calculate the tax and pay in Advance by yourself. There are quite a few Banks that give you online facility to pay your tax. There is no service tax. Otherwise the tax slabs are right. The current budget has slightly ...


1

You should probably get a professional tax advice, as it is very specific to the Philipines tax laws and the US-Philippine tax treaty. What I know, however, is that if it was the other way around - you paying a foreigner coming to the US to consult you - you would be withholding 30% of their pay for the IRS which they would be claiming for refund on their ...


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