First Time Filing Self Employed Income Tax Question


(SOUTH CAROLINA)

First Time Self Employed

First Time Self Employed

Hello - first of all thank you for reading this. I actaully have a few questions about what I need to do , what I need to bring for filing my 1st self earnings income taxes.


Let me start with a little background. Last year 2010 I just kinda started up odd jobs and didnt keep receipts etc. because I thought it was just going to be like short term odd jobs and I'd find another job down the line. So to my understanding if you didnt make a certian amount of money then you didnt have to file.

Well therefore I didnt file anything last year. But I didnt really make any money last year. Especially what one might call a gain. But it became aparent to me that I was getting more work so I needed to keep records. So I asked around about what I needed.

I was told to 1)keep records of income. (so I opened a bank acount for the purpose of keeping up with all deposits) and 2) keep all my receipts for jobs , example gas for mowers, eqiuptment repairs, mulch and trees an so on. So thus is what I have done for 2011.

But - It was my understanding that if I werent doing a job for over $600, or $600 for the year for a person or business. Then I didnt need any 1099 forms.

I;ve been doing General Lawncare & Landsacpe on my own with no employees. This year I have kept all my bank statements, deposit slips that were made with my lawn service. Also kept all my recipts relevant to my work.

Now dont misunderstand I didnt make alot of money this year either. But I made enough to where I need to file as income earned for the year. So to keep proof of income an so forth. Also stuff like this effects future credit, etc.

So I guess I'm at a point where I dont make enough money to keep an acountant, but I still need to have something to file that I did earn some income this year.

So I guess my
question(s) would be.. what do I do now that I have all my bank statments for 2011. & all my exspense reciepts for 2011. Thus is not a substantual amount of money. Some weeks I may have made $200 to $300. And some weeks I wouldnt make anything.

But Now my problem is I had no jobs that were for $600 or more. So I didnt keep any 1099 records. So I guess thats where I'm confused on what forms to file or what kind of tax service to use.

I'm Single (not married) and no children or dependants to claim. I have not yet added up all my recipts & totals for the year/ but off the top of my head that its less than 7 to 8 thousand for the whole year. Before taking anything out for exspenses.

( & what about social security tax? )

So to sum it up , this would be my 1st year to file as a independant / self employed earnings? and I have no idea where to start. & all I have are my Deposit slips for my bank account. & receipts for items used for work.

Now there may be other factors that I have not kept up with that may be helpful. That I dont have but I could track down proof that I paid things such as a cellphone.

I have a cellphone & need it for my people to call for estimates or appointments. But I havent kept cell phone records. But I could get records from my Cell Phone carrier if that would help.

Then theres like property tax on my truck that I use to hall my equiptment etc. Someone told me I might could be reimburst a precentage of that since its my worktruck.

If not, thats fine. But I still need to file something.

Ok i'll try to stop thus long email question here, because I think Ive probally give you enough information to see where I'm coming from & how lost I am.

Thank You for your taking the time to read & I await any response or advice you might have.

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Hobby Expense Credit

I play recreation soccer throughout the year. Each season costs from $50 - $65. I am on 2 teams. There are four seasons per year.
Can I claim this expense as a Hobby Expense credit on my Federal Income tax?
Are recreation sports considered a "Hobby" by the IRS?
Also can the gear bought for this hobby be claimed?
Thanks.
LJD

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Self Assessment - Cash in investments buy land for farming

by Helen
(Norfolk, England)

Hi Please could you help me - A farmer has cashed in his overseas investments and uk isa's and has bought some extra land for farming livestock. Where and how do I show this on the tax return, am I able to claim AIA and when / what if at all can I claim allowances or income for keeping the land agricultural so to speak ?

Any advice would be appreciated as this is an area I have not covered before.

Kind regards and many thanks

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Self Employed Health Insurance Deduction

by Mark
(Massachusetts)

I am a self employed contractor. I also have a second job with my local towm. For years my CPA has deducted the cost of my town provided health insurance. My CPA retired last year so I went to one of those national tax preparation firms for my 2010 taxes.

The new tax prep firm will not let me take the same self employed health insurance deduction. They said that since the town provided health insurance I was not eligible to take the self employed health insurance deduction.

Who is right? It made a rather large difference on the amount of tax due.

Thanks.

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Self Employed Wages Income Tax Question

by Herby
(TN)

Self Employed Wages

Self Employed Wages

I am self-employed. I didn't receive a W-2, but I did receive a 1099misc form.

Where on my tax form do I enter the money I made without them making me enter an employer identification number?

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Self Employment Taxes

by Sherrie
(Alabama)

I see no credit on the 2009 tax return prepared by accountant for wife's FICA that she paid in.
See only the credit for Income Tax
Then I see amount owed for Self employment tax based on total income which includes her income almost $10,000
Please help.
Thanks

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Self Employment Taxes

by kel
(MA)

Quarterly Tax Payments

Quarterly Tax Payments

I am getting organized with a growing independent odd job business. I have not filed taxes in a few years because I have not been making much. This year I will have a taxable amount. I have not filed quarterly thus far and don't forsee me figuring out how to do this all by June 15th.

Seeing as this is my first year can I accumulate all my info, file my annual taxes beginning of 2012 and then start paying quarterly taxes for the next year??

My business's income is very fluctuating with income between when work is available and when I decide to not work and travel. How do I estimate my income when it is hard to predict?? Having one year to get a good idea of over-all income would be ideal before I start filing quarterly. Is this OK to do???

Any help is appreciated. Thank you for your time.

Taxbrain - Beat The Deadline 468x60

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Sole Proprietor

by Sean
(Colorado Springs)

Can I deduct as a loss as a sole proprietor if I did
some work for a company and they never paid?

If so how?

THANK YOU

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Splitting SE Tax for Two Sources of SE Income

by Mark Kaplan
(New York City)

In 2009, my wife, a Russian national with Lawful Permanent Residency, did one contract job for a US-based company, earning $4500 gross, on a 1099. From September 1st until December 31st -- she worked for the United Nations . The UN paid her $17,274.00 in 2009 for her services, and gave her a statement with that figure. So that's her gross, total income for tax purposes for 2009.

My wife owes Self-Employment tax on the 1099 income of $4500 from her one contract job for the year, but is excluded from paying SE from her UN employment, by US tax code, as the IRS does not collect SE from a Lawful Permanent Resident working for an international organization, such as the UN.

Can SE be divided in this case? My wife has a number of deductions for various expenses, due to the fact that she is exclusively self-employed, as well as for our dependent daughter.

Please advise at your convenience.

Thank you.

Mark Kaplan

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Superannuation For The Self Employed

by Manuel
(Sydney, Australia)

Hi

I am partly self employed and also working Part time. I earn about $80K in part time employment and get about $30K in self employment. I want to make contributions to my super from my self employment income. Is this a Tax effective strategy. I am assuming that my contributions to super are tax deductible.

Manuel

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Tax Return for Self Employed

I am self employed but also have a casual job )15 hours a month) with the local authority to which I pay basic rate tax and ni contributions.

On the tax return it states to provide information from my p60 - the question is if I have paid tax and ni contributions on my casual job, do the inland revenue add all the money up and tax me again on it all?.

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