I have a Sole Proprietorship consulting business in NJ. This question is about NJ Tax filing using Turbotax Self Employed online version.
One question it asks is "Add any amount you deducted for taxes based on income". What taxes are included in what needs to be added based I assume on Federal return numbers.
You'll need to sign in or create an account to connect with an expert.
The amount deducted can be for any tax anticipated by the taxpayer. Thus, the tax could be an income tax, or it could be a payroll tax (i.e., social security and Medicare) or it could be a sales tax for goods purchased outside the resident state of the taxpayer and for which no sales tax was paid.
Sometimes, and especially with self-employed individuals, estimated tax payments are paid (typically through the Electronic Federal Tax Payment System) to the U.S. Department of Treasury, or the relevant State Department of Revenue. These estimated tax payments are made because taxpayers generally need to withhold 90% of their total tax liability. If withholding is below what is required, there could be a tax penalty imposed on the taxpayer.
ash49
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
samman2922
New Member
Rprincessy
New Member
Ninaya1
New Member
4md
New Member
edthilbert
New Member