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Any accountants in the house? |
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02-09-2009, 12:26 PM
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#1
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White Group Rulez!
opinion914 is offline
Join Date: May 2005
Location: Goshen NY
Posts: 428
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Any accountants in the house?
Something doesn't add up.
Did my taxes. getting:
$2220 back fed,
$0 back state.
then i get a 1099-misc in the mail for some consulting i did for $3300, fine, i made the money now i need to pay tax on it... unfortunately this is what it did to my return
$900 back fed
owe state 200$
So i go from getting back a gross of $2200, to now getting back a gross of $700.
That's a difference of $1500 i'm out for a $3300 job? How does that add up?!
tia
Kevin
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02-09-2009, 12:39 PM
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#2
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Foot Fetish Guy
Jake is offline
Join Date: Jun 2005
Location: Dirty Jerzy
Posts: 1,001
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When you get paid as an independant contractor (form 1099) you are subject to self employment tax (Line 57 on Form 1040). The SE tax rate is 15.3%. The rate consists of two parts: 12.4% for social security and 2.9% for Medicare. This SE tax is added to your tax from the tax tables computed on Line 44. However, you can deduct half of your SE tax on Line 27 to reduce your AGI.
That's the most basic explanation I can give without seeing your tax return.
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02-09-2009, 12:57 PM
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#3
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White Group Rulez!
opinion914 is offline
Join Date: May 2005
Location: Goshen NY
Posts: 428
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Thanks Jake, for the tax info but more importantly, is that a Scarlett Johansson flick. Dirty dirty little girl
Im definately getting taxed at a higher percentage than 15.3. Unless it went 15.3% for my entire income, W2 included?
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02-09-2009, 01:04 PM
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#4
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Foot Fetish Guy
Jake is offline
Join Date: Jun 2005
Location: Dirty Jerzy
Posts: 1,001
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The 15.3% tax rate is only on your 1099 income - on your W-2 you only pay 7.65% since your employer pays the other half. Your entire income (taxable income on Line 43 of Form 1040) is getting taxed at whatever tax bracket you are in. Like I said, I can't really be more helpful without knowing your situation.
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02-09-2009, 01:09 PM
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#5
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The Solution
Cakes206 is offline
Join Date: May 2005
Location: New Joisey
Posts: 8,105
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The first think ya gotta ask yourself is, would I really want tax advice from this guy...then go from there.
__________________
Character is who you are when no one is looking.
The more you sweat in practice, the less you bleed in battle.
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02-09-2009, 03:43 PM
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#6
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Burnout
Xracer264 is offline
Join Date: Sep 2005
Location: Northern NJ
Posts: 203
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Quote:
Originally Posted by opinion914
Something doesn't add up.
Did my taxes. getting:
$2220 back fed,
$0 back state.
then i get a 1099-misc in the mail for some consulting i did for $3300, fine, i made the money now i need to pay tax on it... unfortunately this is what it did to my return
$900 back fed
owe state 200$
So i go from getting back a gross of $2200, to now getting back a gross of $700.
That's a difference of $1500 i'm out for a $3300 job? How does that add up?!
tia
Kevin
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Not sure how your reporting your consulting work but you might what to set up a Schedule C and deduct expenses from the income of $3300. Travel, use of computer, car miscellaneous expense....
__________________
MSF Rider Coach Rider Education of N.J. www.rider-ed.com
"Me and Max we no like" Valentino Rossi in "Faster"
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02-10-2009, 07:36 AM
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#7
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White Group Rulez!
opinion914 is offline
Join Date: May 2005
Location: Goshen NY
Posts: 428
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Having no LLC or business designation yet I'm not sure i can deduct those things, and i don't have the receipts anyway. Next year will be a different story.
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02-10-2009, 11:23 AM
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#8
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Burnout
Xracer264 is offline
Join Date: Sep 2005
Location: Northern NJ
Posts: 203
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Quote:
Originally Posted by opinion914
Having no LLC or business designation yet I'm not sure i can deduct those things, and i don't have the receipts anyway. Next year will be a different story.
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Well for a schedule C you do not need to be an LLC, Corp, S Corp or partnership because it still flows through your personal return. As far as receipts......
__________________
MSF Rider Coach Rider Education of N.J. www.rider-ed.com
"Me and Max we no like" Valentino Rossi in "Faster"
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02-10-2009, 11:33 AM
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#9
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Foot Fetish Guy
Jake is offline
Join Date: Jun 2005
Location: Dirty Jerzy
Posts: 1,001
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02-10-2009, 09:28 PM
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#10
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White Group Rulez!
opinion914 is offline
Join Date: May 2005
Location: Goshen NY
Posts: 428
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Or maybe i doooooo have receipts. Let me check my neighbors garbage.
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02-11-2009, 02:03 AM
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#11
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Short Shifter
CORNBREAD is offline
Join Date: Apr 2008
Location: Alpine, NJ
Posts: 195
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Quote:
Originally Posted by Cakes206
The first think ya gotta ask yourself is, would I really want tax advice from this guy...then go from there.
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That's not an accountant you dirtbag. That's "the fatigues" from seinfeld. It's JPeterman catalogue.
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02-11-2009, 02:05 AM
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#12
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Puke Boy
John712 is offline
Join Date: May 2005
Location: 6 Million ways to die, choose one!
Posts: 4,126
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Quote:
Originally Posted by CORNBREAD
That's not an accountant you dirtbag. That's "the fatigues" from seinfeld. It's JPeterman catalogue.
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Oh trust me, This is Cakes were talking about, he is well aware of who he is
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02-11-2009, 09:43 AM
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#13
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The Solution
Cakes206 is offline
Join Date: May 2005
Location: New Joisey
Posts: 8,105
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Thank you John.
__________________
Character is who you are when no one is looking.
The more you sweat in practice, the less you bleed in battle.
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02-11-2009, 12:08 PM
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#14
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Free Rides On A Silverback
SAXON117 is offline
Join Date: Apr 2006
Location: Highpoint Mountain, NJ
Posts: 2,601
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Did the 3300 jump you up another tax bracket? That will fuck ya over everytime! Kevin, you need to do side work under the table!
__________________
ATTACK LIFE, ITS GOING TO KILL YOU ANYWAY
10-08-07 R.I.P. 109
12-06-07 R.I.P. Jack
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02-11-2009, 07:01 PM
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#15
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White Group Rulez!
opinion914 is offline
Join Date: May 2005
Location: Goshen NY
Posts: 428
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that's what i'm thinking Mark, must have bumped me up just enough. Whatever, i'll be over it by Americade!
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