The Tax Preparation Blog

Archive for the ‘Paying Taxes’ Category

Question: Calculating Self Employment Taxes, am I doing this right?

Hello all, desperately need some help in making sure I don’t make a huge tax error. I currently have a route that I do for the local paper where I collect old papers and coins from the racks. They pay $57 a week. Here are the current figures I’ve come up with:

52 weeks a year x $57 =$2964.00
$2964 x .9235=$2737.26

$2737.26 x.153=418.80 in yearly taxes

Does this calculation sound correct for me?

Is it safe to say that my weekly taxes are $8.06?
I’m signed up with the IRS online tax payment system and I’d like to pay my estimated taxes at least bi-weekly.

The company has factored in the mileage of the route into my weekly pay, I am wondering that since they did this, can I no longer deduct gas expenses?

I live in California, and file the rest of my income taxes as single, itemized deductions (have a mortgage and real estate taxes.)
I really appreciate any intelligent answers from anyone who knows a thing or two about taxes, I’m having a hard time!

Answer: The calculation for your self employment tax looks correct, except that you might be able to deduct mileage from what you make before figuring the tax. You said they “factor in mileage” – if you mean they reimburse you for miles but don’t include it on your 1099, then you can’t deduct the miles. If they reimburse you for miles, but that’s included in the $57 they pay you and it will be on your 1099, then you can deduct your mileage expenses.

Since you have other income, you’ll also owe income tax on this amount in addition to your self employment tax. Without knowing what your tax bracket is for your other income, there’s no way to tell what it will be on the route. That’s very likely another 15 or 25%.

And there will also be CA tax on it – again, without knowing about the rest of your income, no way to tell what that might be either, but it could be substantial.

Finally, what’s this IRS online tax payment system you are signed up with? It’s common to make quarterly payments (mailing them in), but an online system that automatically takes money bi-weekly is a new one one me – be sure it’s really the IRS.

As April 15 Nears, Don’t Forget These Tax Tasks

As April 15 Nears, Don’t Forget These Tax Tasks

Wisconsin Estimated Payment Lookup

State, federal officials to take long look at Parkside Village Apartments

State and federal housing authorities are preparing comprehensive inspections of Parkside Village Apartments this month, and the complex’s low-income subsidies may hang in the balance.

Tax Forms & Deductions : How to File Taxes if Married Filing Jointly

Question: Fed Tax Payment Question HELP?

Okay so heres the deal. I deposit the fed 940 and 941 payments thru our bank. I forgot to send along the coupon to go with just stating what its for and for backup its also written on the check that its for a fed 940 or 941 payment, the thing is, is our bank deducted 2 payments from our account and didnt apply the payments like they were supposed to be. and they depostiied one back into our account which i wrote a check for to balance it out so thats taken care of. But if they cashed the 2 other checks do they have to legally refund my account since I have proof they deducted the amounts but didnt pay the tax payments???????

Answer: I got lost attemtping to determine what happened here. I suggest you go to you bank and go through what happened step by step and see if they can untangle the mess.

The Pain Has To Go Somewhere, But Where?

By David Merkel. Roughly three months later than originally scheduled, the fiscal year 2009 Financial Report of the United States Government came out. I had predicted a few times (latest here) that the final total of debts and unfunded liabilities would be about 4x GDP. Well, I was close: Read more » »

1500 Health Insurance Voucher Plan

Question: Bankruptcy, Multiple Addresses, and Filing Federal And State Taxes?

I need help, Please.

I lived in PA my whole life, own a home there. I lost my job 1.5 years ago, and I had to file bankruptcy in april of 2007. For the past 8 months I have been staying with a friend and working in Missouri. But my home is in PA, but been using my friends address for local employment.

My question is:

Do I file my federal and state taxes for Pennsylvania like I always have? If I do that, and on my PA forms, put down taxes that were paid to MO, or do I have to file MO only, and if I do that, PA will be looking for me for taxes? Or if I do the PA income tax, will MO be after me for a tax return?

Also, does my bankruptcy and chapter 13 payment plan affect my tax return at all?

I am in need of help. I always do my taxes myself cause I cannot afford to pay an accountant right now.

Please help.

Answer: If you use a program like TurboTax it will take you thru the process and asks you the relevant questions. $40 is a good investment in knowing you did your best with this gruesome task. I highly recommend it because tax code is complex and none of us is expert. Their publications are written by bureaucratic lawyers and not in real English.

you pay income on taxes depending on where it was earned, in this case MO. the only taxes you would pay in PA (not to the IRS) are property taxes on your home.

can’t address bankruptcy but I think the TurboTax program does

Engineers say town needs to act on sewer plant upgrades

MARK HIBBS NEWPORT — The process to upgrade and expand the town’s sewage treatment plant needs to start now to avoid state fines and a possible moratorium as well as help secure federal and state funds for the multi-million-dollar project.

6 of 9: It is Legal NOT To Pay Federal Income Tax (for most)

BioMed Realty Trust Reports Fourth Quarter and Full-Year 2009 Financial Results

BioMed Realty Trust, Inc. , a real estate investment trust focused on Providing Real Estate to the Life Science Industry®, today announced financial results for the fourth quarter and full-year ended December 31, 2009.

The impact of a 1 percent sales tax hike in Maryland.