topic What should I do since my current job does not take taxes out of my checks? in Retirement tax questions

What should I do since my current job does not take taxes out of my checks?

bunnb202 — Wed, 07 Aug 2019 21:18:39 GMT

Re: What should I do since my current job does not take taxes out of my checks?

VolvoGirl — Wed, 07 Aug 2019 21:24:45 GMT

Nothing? Not even Social Security & Medicare? Are they paying you as an independent contractor on a 1099Misc? Ask them.

If you are a 1099 that is self employment income and you need to pay quarterly estimated payments to cover the income tax and the self employment tax on it.

I have a lot more info I can give you if you are getting paid on a 1099Misc.

Re: What should I do since my current job does not take taxes out of my checks?

bunnb202 — Wed, 07 Aug 2019 21:36:34 GMT

No nothing, yes I am being contracted on a 1099misc. This is my first time dealing with this so the info you have would be great. Thank you!

Re: What should I do since my current job does not take taxes out of my checks?

VolvoGirl — Wed, 07 Aug 2019 21:44:06 GMT

Here is some general info. You will need to keep good records. You may get a 1099Misc at the end of the year if someone pays you more than $600 but you need to report all your income no matter how small. You might want to use Quicken or QuickBooks to keep tract of your income and expenses.

There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Online Self Employed return....

http://quickbooks.intuit.com/self-employed

To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax.

Here is some IRS reading material……

IRS information on Self Employment

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center

Pulication 334, Tax Guide for Small Business

http://www.irs.gov/pub/irs-pdf/p334.pdf

Publication 535 Business Expenses

http://www.irs.gov/pub/irs-pdf/p535.pdf

Re: What should I do since my current job does not take taxes out of my checks?

VolvoGirl — Wed, 07 Aug 2019 21:47:13 GMT

For SE self employment tax - if you have a net profit (after expenses) of $400 or more you will pay 15.3% SE Tax on 92.35% of your net profit in addition to your regular income tax on it. So if you have other income like W2 income your extra business income might put you into a higher tax bracket.

You must make quarterly estimated tax payments for the current tax year if both of the following apply:

- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.

- 2. You expect your withholding and credits to be less than the smaller of:

90% of the tax to be shown on your current year’s tax return, or

100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months).

To prepare estimates for next year you start with your current return, but be careful not to change anything. For Online returns, if you can't get back into your return, Click on Add a State to let you back into your retun.

You can just type W4 in the search box at the top of your return , click on Find. Then Click on Jump To and it will take you to the estimated tax payments section. Say no to changing your W-4 and the next screen will start the estimated taxes section.

Or Go to….

Federal Taxes or Personal (Desktop H&B)

Other Tax Situations

Other Tax Forms

Form W-4 and Estimated Taxes - Click the Start or Update button

The 1040ES quarterly estimates are due April 15, 2019, June 17, Sept 16 and Jan 15, 2020. And don't forget your state. Go to the end of the state section, probably under Other Tax Situations

Or Here are the blank Estimates and instructions…..

http://www.irs.gov/pub/irs-pdf/f1040es.pdf

Or you can pay directly on the IRS website https://www.irs.gov/payments

Be sure to pick the right kind of payment and year.....2019 Estimate