Home     Forum     401k     401k Rollovers
    Register   Login   Members   Search   FAQs     Recent Posts    




I Have A Question About Self Employment Taxes

Reply to topic
Money Talk > Taxes

Author Thread
moneyflow
Preferred Member


Cash: $ 19.75

Posts: 143
Joined: 22 Jul 2005
Location: New York
I Have A Question About Self Employment Taxes  Reply with quote  

Hello

I have a question about self-employment tax. I am new to taxes, I always had a accountant do them and they were very simple becuase I only had one source of income.

I would like to do my taxes myself for the first time and was wondering about making deductions for my home business expenses. I am also a musician and wanted to deduct expenses from that.

I never looked at a tax form before really and I just wanted to know about claiming income and making deductions.

Two main questions:
1. Do I have register my home business to claim losses by filling out a DBA form.

2. Do I have to make a certain amount of income to claim tax credits and deductions. Do I have to fill out a seperate tax form for each income source or do I add them all together? Ex: My Regular Job, Home Business

Also is this really going to benefit me and get me back more money by trying to claim all this stuff? I would like to try and write off gas, food,..etc..

I know this sounds like a stupid question but I never really learned about this stuff and would like to get into it

Any help would be appreciated.

Regards
Daniel Cassidy

http://www.MoneyFlowForLife.com | http://www.DanielCassidy.ws
Post Sat Apr 01, 2006 7:11 pm
 View user's profile Send private message Visit poster's website
coaster
Senior Advisor


Cash: $ 1626.30

Posts: 7990
Joined: 11 Oct 2005
Location: Wisconsin
 Reply with quote  

#1. No

#2. You have to make a profit three years out of five.

If you have a self-employed business, and you're the only employee, it's easy to do. You just need to file a Schedule C with your regular 1040. 100% of your expenses are deductible on Schedule C. You have to pay both income tax and "Self-Employment Tax" -- the latter being a euphemism for 100% of Social Security and Medicare taxes (although they're deductible on Schedule A)

It's imperative to keep meticulous records of your expenses.

You should learn all you can about the right way to do it by downloading the publications and instructions for the forms on the IRS website and by getting a decent tax book. Some self-employment expenses, such as deductions for home business use, are notorious red flags for audits when people deduct more than the law allows them to.

http://www.irs.gov/formspubs/article/0,,id=98171,00.html

~Tim~
Post Sat Apr 01, 2006 8:10 pm
 View user's profile Send private message
JBendar
Senior Member


Cash: $ 49.60

Posts: 271
Joined: 22 Mar 2004
Location: Woodbridge, New Jersey
Re: I Have A Question About Self Employment Taxes  Reply with quote  

quote:
Originally posted by moneyflow
Hello

I have a question about self-employment tax. I am new to taxes, I always had a accountant do them and they were very simple becuase I only had one source of income.

I would like to do my taxes myself for the first time and was wondering about making deductions for my home business expenses. I am also a musician and wanted to deduct expenses from that.

I never looked at a tax form before really and I just wanted to know about claiming income and making deductions.

Two main questions:
1. Do I have register my home business to claim losses by filling out a DBA form.

2. Do I have to make a certain amount of income to claim tax credits and deductions. Do I have to fill out a seperate tax form for each income source or do I add them all together? Ex: My Regular Job, Home Business

Also is this really going to benefit me and get me back more money by trying to claim all this stuff? I would like to try and write off gas, food,..etc..

I know this sounds like a stupid question but I never really learned about this stuff and would like to get into it

Any help would be appreciated.

Regards
Daniel Cassidy



Daniel:

Coaster has given you the majority of the information you need to help you with your business plan. The only thing that should be clarified is that if you start a business under DBA, then you must file for an Employer Identification Number. If you ever received a form from an employer showing the wages you earned for the year (W-2 form), the employer is required to list their EID. This number is XX-XXXXXXX. You must obtain it from the IRS Center in your area. It is normally used to report employee earnings, but can be used to report self-employment income/losses.

JBendar Idea
Post Sun Apr 02, 2006 4:50 am
 View user's profile Send private message
gamcpa
New Poster


Cash: $ 0.40

Posts: 2
Joined: 10 Jul 2006

Munneepenee  Reply with quote  

I am new to this forum and I have a question. Why does muneepenee write like an idiot? I was getting sick just trying to read his post. Somebody clue me in.
Post Mon Jul 10, 2006 4:33 am
 View user's profile Send private message Visit poster's website
coaster
Senior Advisor


Cash: $ 1626.30

Posts: 7990
Joined: 11 Oct 2005
Location: Wisconsin
 Reply with quote  

I guess you'll have to ask him. We haven't been able to figure it out. But meanwhile, please don't compare your fellow members to idiots. Unless, of course, you've got conclusive proof. Then feel free to share it with all of us. Laughing

~Tim~
Post Mon Jul 10, 2006 11:50 am
 View user's profile Send private message
forexmaestro
Contributing Member


Cash: $ 7.60

Posts: 37
Joined: 25 Jun 2006

 Reply with quote  

Thanks for the good tax help, I was wondering some of those same questions myself.
Post Tue Jul 11, 2006 5:44 am
 View user's profile Send private message Send e-mail Visit poster's website

Reply to topic
Forum Jump:
Jump to:  
  Display posts from previous:      





Money Talk © 2003-2016