Paying taxes

wondergirl9847 · #1 09-03-2006, 03:51 PM

Since I am a contractor now, I have to pay my own taxes and I'm not exactly sure how to figure them out. I don't really wanna pay H&R Block to figure it out, since I've only gotten one paycheck so far. I have to pay by September 15th.

Anyone know about this sort of thing? Any and all advice is appreciated.

irishgrl · #2 09-03-2006, 04:13 PM

you might want to go here:

Self Employment Tax

DrummerDeanna · #3 09-03-2006, 06:07 PM

Easy. Just give them 85% of your paycheck and you're done - you'll also need to sign over your first born and depending on how much you make annually you may also need to send in an arm and/or a leg.

Seriously though - I can't help ya - good luck

xxxmx · #4 09-03-2006, 06:41 PM

i kept the books for my construction company...

you need to check the current rates and such and the depends on how your business is structured. it is very formulaic and easy once you have it figured out. if you already have your tax id number, you should be able to enroll in an online program that allows you to pay your quarterly taxes. if you are bringing in a fantastic amount of money, IMO hire a cpa and let him/her handle the BS.

wondergirl9847 · #5 09-03-2006, 06:53 PM

The thing is...I've only received one paycheck so far from my company (I am just doing data entry work online...it's not alot of cash really). I received one unemployment check over the summer and that was it. So, I have two checks to claim taxes on so far. I just wanna make sure I pay in enough.

I don't think it's enough money to involve an accountant, but I don't want to underpay, ya know.

From January through May 31, 2006...I worked as an employee, so all those paychecks had withholding. I'm just worried about this one independent contractor check and one unemployment check. The total of both are approximately $700.

irishgrl · #6 09-03-2006, 09:05 PM

try going to my link, it is an IRS small business help/tools link....

HomerMcvie · #7 09-03-2006, 11:49 PM

So are you talking about "paying in quarterly"? That's the program I'm on. I usually make (anymore, anyway) only ONE payment a year(usually the Sept 15th one). Things have been a little rough the past couple of years(13K+ in vet bills- which, of course, aren't deductable), so I've been TOTALLY strapped for cash,when it comes to paying in the quarterly. But I do sound for a big festival around here, each Sept, and have sent them my net from it, in Sept, the past two years. There's no penalty (Fed, anyway) for not paying in EACH quarter, as long as you don't still owe OVER a grand when you file your return.
Anyway, I'm sorry that I don't know how to figure the amount. I only know from yearly experience, with my accountant. If I'm short this year, he'll tell me to pay in "X" amount extra, each quarter next year.

wondergirl9847 · #8 09-04-2006, 09:31 PM

I'm just going to send in something like $125-$150. Should be okay since I haven't made that much so far. I'd rather send in too much than not enough.

xxxmx · #9 09-05-2006, 05:04 AM

get your hands on an irs booklet, forget the name, that has the tax tables. it has all of the w/holding info. you the single or married pages then refer to the amount of the check and the number of dependents that you're claiming. then there's social security. because you are self-employed, you get to pay the full 15% or so.

irishgrl · #10 09-05-2006, 06:45 AM

Quote:

Originally Posted by xxxmx

get your hands on an irs booklet, forget the name, that has the tax tables. it has all of the w/holding info. you the single or married pages then refer to the amount of the check and the number of dependents that you're claiming. then there's social security. because you are self-employed, you get to pay the full 15% or so.

I posted the link

here's the link for the 2006 tax rate schedules

DavidMn · #11 09-05-2006, 06:30 PM

Quote:

Originally Posted by wondergirl9847

Since I am a contractor now, I have to pay my own taxes and I'm not exactly sure how to figure them out. I don't really wanna pay H&R Block to figure it out, since I've only gotten one paycheck so far. I have to pay by September 15th.

Anyone know about this sort of thing? Any and all advice is appreciated.

Nice new signature.