Tigers X - Number one Source to Talk Auburn Tigers Sports
The Library => Haley Center Basement => Topic started by: Townhallsavoy on June 27, 2012, 12:31:15 PM
-
If I'm making $20/hour on a side job and a 1099 is involved, how much can I expect to deposit into my bank account?
-
The entire amount... Since you are responsible for withholding and paying your taxes when issued a 1099.
-
But come tax season, I'll have to shell out some money, right?
-
But come tax season, I'll have to shell out some money, right?
The tax lawyers will have the specifics, but that money is lumped into one big pile called "income". You are then taxed on your "income", less and except any deductions you might avail yourself of.
-
But come tax season, I'll have to shell out some money, right?
Yes, hence what I said above. It is generally a good rule to set aside a certain percentage of the amount you make to pay the tax debt when it is due. The amount you will be taxed depends on the your income minus deductions/exemptions. This amount, your taxable income, will show you what tax bracket you are in...That will show you the percentage you have to pay.
-
I guess I should just post the background -
I'm looking into doing a side gig teaching guitar at a local music shop. They can give me 12 students. Tuition is $80/month per student, and the owner of the music shop wants to take 50% for providing the students and the room and materials for teaching. That brings the money down to $40/month per student minus whatever I lose through taxes.
I'm trying to figure out if whatever money I'll be bringing in is worth working six extra hours a week.
-
short of it ...you will see about a third of it gone.
-
I guess I should just post the background -
I'm looking into doing a side gig teaching guitar at a local music shop. They can give me 12 students. Tuition is $80/month per student, and the owner of the music shop wants to take 50% for providing the students and the room and materials for teaching. That brings the money down to $40/month per student minus whatever I lose through taxes.
I'm trying to figure out if whatever money I'll be bringing in is worth working six extra hours a week.
Like Chinook said, generally take away 1/3 and the remainder is what you will bring home after taxes.
-
So approximately $350/month to work six extra hours a week.
Well that answers that question. I could make that much money if I had half the amount of students but just taught them from my house. Actually, probably more.
-
Don't forget, you can deduct EVERY dime you ever spend and then some!!!
By the time you get through deducting you'll be making thousands and thousands a week!!!!!
Just ask a tax lawyer.
:taunt:
-
Don't forget, you can deduct EVERY dime you ever spend and then some!!!
By the time you get through deducting you'll be making thousands and thousands a week!!!!!
Just ask a tax lawyer.
:taunt:
Not every dime, but you can deduct wages you pay out.
-
Not every dime, but you can deduct wages you pay out.
Unless you can't.
-
So approximately $350/month to work six extra hours a week.
Well that answers that question. I could make that much money if I had half the amount of students but just taught them from my house. Actually, probably more.
Just tell the guy you want to work for cash money yo, or you aint doin it...
Or give him a fake SS#...
Or that you want 75%...
-
knock 15% off and tell the guy that's your cash price if there is no paperwork.
-
Wesley Snipes would not approve of this thread.
-
Wesley Snipes would not approve of this thread.
Just wait til VV chimes in
-
Wesley Snipes would not approve of this thread.
If he would just log in here, all his tax troubles would disappear. He'd find out that he can deduct every penny he ever spent, even on sharp brims and playa threads. All deductible. Everything spent can be written off.
By the time he got through being educated on this board, the IRS would owe HIM money. Tons of it.
-
Unless you can't.
You can. No business owner ever has had to pay income tax on their employee's wages. It wouldn't make sense to be in business. Also, it would be double taxation. If you think that you have to pay income tax on your employees wages AND they pay income taxes on their wages as well, then you need to read a book. It's not income to you.
You just don't like to be called out for being wrong, so you get butt sore. Troll Kaos likes to troll.
-
butt sore.
VV knows this feeling too. But for other reasons.
-
Deductible Compensation and Benefits
As a general rule, a business can claim a tax deduction for the salary, wages, commissions, bonuses, and other compensation it pays to its employees. In fact, if you have employees, it's likely that your deductions for employee compensation will be one of your largest deductible expenses.
To be deductible, the compensation must be ordinary and necessary, reasonable in amount, based on services rendered, and actually paid or incurred in the year for which the deduction is claimed (as shown by your payroll records).
QQ moar.
-
If he would just log in here, all his tax troubles would disappear. He'd find out that he can deduct every penny he ever spent, even on sharp brims and playa threads. All deductible. Everything spent can be written off.
By the time he got through being educated on this board, the IRS would owe HIM money. Tons of it.
Considering what any of us have paid in dollar value for the advice we receive on this board, it is pretty much a wash.
-
You can. No business owner ever has had to pay income tax on their employee's wages. It wouldn't make sense to be in business. Also, it would be double taxation. If you think that you have to pay income tax on your employees wages AND they pay income taxes on their wages as well, then you need to read a book. It's not income to you.
You just don't like to be called out for being wrong, so you get butt sore. Troll Kaos likes to troll.
Don't recall saying you couldn't deduct payroll. I know you can deduct payroll in most circumstances.
Was more making snide reference to the entire "deduct everything" scenario which -- despite protestations -- is complete and utter bullshit.
If it were that simple you wouldn't have a job.
And yes, that drum will be banged until my banger is numb.
-
Don't recall saying you couldn't deduct payroll. I know you can deduct payroll in most circumstances.
Was more making snide reference to the entire "deduct everything" scenario which -- despite protestations -- is complete and utter bullshit.
If it were that simple you wouldn't have a job.
And yes, that drum will be banged until my banger is numb.
That's what started your entire fit in the other thread. And what you actually said in this thread too (a reminder for the memory impaired):
Not every dime, but you can deduct wages you pay out.
Unless you can't.
I never said you could deduct every penny you spend. That's not true.
Bang that cool metaphorical drum all you want, just makes you look childish/dumb/trollish.
-
Hey remember me? The guy that needed this thread?
Another question -
Anyone know of any restaurants or country clubs in Birmingham that could use a solo jazz guitarist? I'm going around this afternoon and tomorrow to hand out demos and promotional folders, so any suggestions would be appreciated.
-
Deductible Compensation and Benefits
As a general rule, a business can claim a tax deduction for the salary, wages, commissions, bonuses, and other compensation it pays to its employees. In fact, if you have employees, it's likely that your deductions for employee compensation will be one of your largest deductible expenses.
To be deductible, the compensation must be ordinary and necessary, reasonable in amount, based on services rendered, and actually paid or incurred in the year for which the deduction is claimed (as shown by your payroll records).
Unless you can't.
-
Hey remember me? The guy that needed this thread?
Another question -
Anyone know of any restaurants or country clubs in Birmingham that could use a solo jazz guitarist? I'm going around this afternoon and tomorrow to hand out demos and promotional folders, so any suggestions would be appreciated.
Welcome and post often!
-
If I'm making $20/hour on a side job and a 1099 is involved, how much can I expect to deposit into my bank account?
As has been mentioned, it depends on what tax bracket you're in for the most part.
What I can tell you is that as an individual receiving a 1099, you will be viewed as self-employed, at least in regard to the income received via 1099. This means that you will have to withhold the employer and employee's portion of Social Security and Medicare taxes, which is 13.3% for the remainder of 2012. If they don't extend the self-employment rate cut, it will go back to 15.3% in 2013. You can complete Schedule SE to calculate your self-employment tax as well.
So, you will have to withhold at least 13.3% for Social Security and Medicare. You'll need to figure out what tax bracket you're in for federal income tax to determine how much to withhold for that, but an additional 15% is a rough guesstimate for most income earners. Alabama's income tax rate tops out at 5% for taxable income above $3,000 ($6,00 for joint filers).
Essentially, one-third is relatively close to what you will need to put away. It will probably end up being less due to deductions, exemptions, and credits, but at least you'll have what you need to pay when the time comes.
-
Unless you can't.
Here is the test. It applies to 99.999999999999999999% of the businesses in the world. I'm sure you will still bitch because you don't like being wrong.
Tests for Deducting Pay
To be deductible, your employees' pay must be an ordinary and necessary expense and you must pay or incur it. These and other requirements that apply to all business expenses are explained in chapter 1.
In addition, the pay must meet both of the following tests.
*
Test 1. It must be reasonable.
*
Test 2. It must be for services performed.
The form or method of figuring the pay does not affect its deductibility. For example, bonuses and commissions based on sales or earnings, and paid under an agreement made before the services were performed, are both deductible.
Test 1—Reasonableness
You must be able to prove that the pay is reasonable. Base this determination on the circumstances that exist when you contract for the services, not those that exist when the reasonableness is questioned. If the pay is excessive, the excess is disallowed for deduction.
Factors to consider. Determine the reasonableness of pay by the facts and circumstances. Generally, reasonable pay is the amount that like enterprises pay for the same or similar services.
To determine if pay is reasonable, also consider the following items and any other pertinent facts.
*
The duties performed by the employee.
*
The volume of business handled.
*
The character and amount of responsibility.
*
The complexities of your business.
*
The amount of time required.
*
The cost of living in the locality.
*
The ability and achievements of the individual employee performing the service.
*
The pay compared with the gross and net income of the business, as well as with distributions to shareholders if the business is a corporation.
*
Your policy regarding pay for all your employees.
*
The history of pay for each employee.
Test 2—For Services Performed
You must be able to prove the payment was made for services actually performed.
Employee-shareholder salaries. If a corporation pays an employee who is also a shareholder a salary that is unreasonably high considering the services actually performed, the excessive part of the salary may be treated as a constructive distribution to the employee-shareholder. For more information on corporate distributions to shareholders, see Publication 542, Corporations.
Kinds of Pay
Some of the ways you may provide pay to your employees in addition to regular wages or salaries are discussed next. For specialized and detailed information on employees' pay and the employment tax treatment of employees' pay, see Publications 15, 15-A, and 15-B.
Awards
You can generally deduct amounts you pay to your employees as awards, whether paid in cash or property. If you give property to an employee as an employee achievement award, your deduction may be limited.
Achievement awards. An achievement award is an item of tangible personal property that meets all the following requirements.
*
It is given to an employee for length of service or safety achievement.
*
It is awarded as part of a meaningful presentation.
*
It is awarded under conditions and circumstances that do not create a significant likelihood of disguised pay.
Length-of-service award. An award will qualify as a length-of-service award only if either of the following applies.
*
The employee receives the award after his or her first 5 years of employment.
*
The employee did not receive another length-of-service award (other than one of very small value) during the same year or in any of the prior 4 years.
http://www.irs.gov/publications/p535/ch02.html
-
"As a general rule"
Means there are exceptions.
Unless there aren't. Except there are.
Unless you can't stands. Verdict in favor of K.
-
"As a general rule"
Means there are exceptions.
Unless there aren't. Except there are.
Unless you can't stands. Verdict in favor of K.
Don't you have some movie to bash?
-
Don't you have some movie to bash?
Not yet. Might later.
-
"As a general rule"
Means there are exceptions.
Unless there aren't. Except there are.
Unless you can't stands. Verdict in favor of K.
There are exceptions to everything. For example, you are the exception to a rational adult who understands how to admit they are wrong.
Regardless, you made a broad statement claiming you can't deduct wages and that "everything is deductible." (in an attempt to troll and cover for you being wrong) I proved you wrong, stated that you can deduct employees wages and also said that not everything is deductible. You got butt hurt for being called out and being wrong. You change your argument, mid-argument, after realizing you are outright wrong. You clamp onto a minor thing like the exemptions I listed for you, that do not apply to your situation, or really any situation for that matter. You blindly claim victory over an argument that never would have existed but for your stubbornness and being wrong...
I just listed your M.O. in paragraph. Wait, I forgot to add that you must hate everything that anyone else likes, unless you found it first.
There. The definition of troll Kaos. Everyone enjoy, and feel free to refer to this post anytime Kaos starts an argument or voices his opinion. It will save a lot of time. Just post: Troll Kaos likes to troll.
-
There are exceptions to everything. For example, you are the exception to a rational adult who understands how to admit they are wrong.
Regardless, you made a broad statement claiming you can't deduct wages and that "everything is deductible." (in an attempt to troll and cover for you being wrong) I proved you wrong, stated that you can deduct employees wages and also said that not everything is deductible. You got butt hurt for being called out and being wrong. You change your argument, mid-argument, after realizing you are outright wrong. You clamp onto a minor thing like the exemptions I listed for you, that do not apply to your situation, or really any situation for that matter. You blindly claim victory over an argument that never would have existed but for your stubbornness and being wrong...
I just listed your M.O. in paragraph. Wait, I forgot to add that you must hate everything that anyone else likes, unless you found it first.
There. The definition of troll Kaos. Everyone enjoy, and feel free to refer to this post anytime Kaos starts an argument or voices his opinion. It will save a lot of time. Just post: Troll Kaos likes to troll.
Since time is money I tried to deduct the time spent in this thread. My accountant laughed.
I made no "broad statement." I said "unless you can't." By definition "as a general rule" means there are exceptions (things you can't do). Therefore "unless you can't" applies.
I'm not and never have been wrong in relation to the simplistic examples set forth in this thread and others. As stated numerous times if money in - money out = money in bank (for tax P&L purposes) there would be no need for accountants, tax lawyers, fee mongers or the IRS. Since those things (except fee mongers, perhaps) are all realities it just isn't that simple.
If you have a business that requires a great deal of travel you should know that there are myriad rules and regulations that impact what is allowable and what isn't. There are percentages, etc. So while in the course of travel my employee might spend $180 on travel expenses the IRS may only allow me to deduct $140 based on the regulations (this is a GD example, don't get your calculator out and explain the percentages because that's irrelevant, the fact that the exist is enough). If I am being reimbursed for expenses (as the owner I generally don't reimburse myself) what I might be reimbursed for may be a different amount than the IRS allows to be claimed.
Yes, I made broad statements previously. But my contention remains that the paper "profit" used by the IRS to calculate your taxes does not necessarily correlate with the actual amount of cash on hand. I've had years early on where I "showed" a loss but had plenty of available cash. I've had other years where I "showed" a substantial profit but had nowhere near that amount of available funds. It's a fucking shell game. You roll this to there, defer that to here, amortize that to whereever, blah blah fucking blah.
And you know it.
You proved nothing except an inability to take a joke. The "everything is deductible" shit is no different to me than Kirby vaccuums, tomatoes or face painting. The rest is just wind twisting
-
Since time is money I tried to deduct the time spent in this thread. My accountant laughed.
I made no "broad statement." I said "unless you can't." By definition "as a general rule" means there are exceptions (things you can't do). Therefore "unless you can't" applies.
I'm not and never have been wrong in relation to the simplistic examples set forth in this thread and others. As stated numerous times if money in - money out = money in bank (for tax P&L purposes) there would be no need for accountants, tax lawyers, fee mongers or the IRS. Since those things (except fee mongers, perhaps) are all realities it just isn't that simple.
If you have a business that requires a great deal of travel you should know that there are myriad rules and regulations that impact what is allowable and what isn't. There are percentages, etc. So while in the course of travel my employee might spend $180 on travel expenses the IRS may only allow me to deduct $140 based on the regulations (this is a GD example, don't get your calculator out and explain the percentages because that's irrelevant, the fact that the exist is enough). If I am being reimbursed for expenses (as the owner I generally don't reimburse myself) what I might be reimbursed for may be a different amount than the IRS allows to be claimed.
Yes, I made broad statements previously. But my contention remains that the paper "profit" used by the IRS to calculate your taxes does not necessarily correlate with the actual amount of cash on hand. I've had years early on where I "showed" a loss but had plenty of available cash. I've had other years where I "showed" a substantial profit but had nowhere near that amount of available funds. It's a fucking shell game. You roll this to there, defer that to here, amortize that to whereever, blah blah fucking blah.
And you know it.
You proved nothing except an inability to take a joke. The "everything is deductible" shit is no different to me than Kirby vaccuums, tomatoes or face painting. The rest is just wind twisting
Your "Unless you can't" post came before I posted the "as a general rule." Broad Statement.
(http://25.media.tumblr.com/avatar_6feb8634e3d0_128.png)
-
Your "Unless you can't" post came before I posted the "as a general rule." Broad Statement.
(http://25.media.tumblr.com/avatar_6feb8634e3d0_128.png)
"Unless you can't" was clearly a joke and one that's been played out numerous times in other threads and relating to other issues and other people.
You then wadded your panties and proved that "unless you can't" is an ACTUAL reality instead of just a goof.
BTW, THS? If you're getting a 1099 for the work the advice to put aside about 1/3 of whatever you're paid to cover the taxes that will apply is a good idea.
Unless you don't.
-
and by the way, I can take at least 8 inches of any joke.
-
"Unless you can't" was clearly a joke and one that's been played out numerous times in other threads and relating to other issues and other people.
You then wadded your panties and proved that "unless you can't" is an ACTUAL reality instead of just a goof.
BTW, THS? If you're getting a 1099 for the work the advice to put aside about 1/3 of whatever you're paid to cover the taxes that will apply is a good idea.
Unless you don't.
http://www.youtube.com/watch?v=6Tf8mPsvcOs
-
As an LLC or a S-Corp, the amount your company "earned" appears as your personal income. So while someone like me might fit Obama's definition of whatever, that's certainly not disposable income. It's money I put back in the company, it's money I use for development, it's money I use to pay salararies etc.
:haha:
-
:haha:
Sorry K, but that's pretty funny.
-
You fail to comprehend.
Obama's definition of "the rich" includes people who show an income of $xxx,xxx. As the owner of an S-Corp there is a paper figure that shows the "profit" for the company (which depends on a number of factors including what's rolled over from previous years, whether you use the cash or accrual method -- and when you fuck yourself by changing from one to the other on the advice of fired accountants -- and allowable expenses). Precisely because this isn't a simple "money in - money out = money on hand relationship that paper number of profit that falls to my personal taxes often isn't the same as the actual cash I have on hand. Over a five or ten year period it might average out, but when you look at each year as a individual entity it may not.
That was always my point and no matter how much you argue I've been doing this for a lot of years and use two sets of accountants to check it.
The point -- which you lost -- is that at the end of the year when it shows a "profit" of $850,000 for instance, that money may have already gone to things I normally pay for -- like salaries. Will i be able to deduct those things in some future tax filing? Yeah. But when the K1 I get in April says I had XXXXXXX profit it's not an accurate reflection of cash flow.
In a business world like mine where I have travel, entertainment, salaries, bonuses, commissions, development, hardware, software, blah blah blah every dime is NOT (and probably never will be) 100% deductible.
Capice?
-
Sorry K, but that's pretty funny.
Don't stop him, he's on a roll.
-
Sorry K, but that's pretty funny.
Only because it's a part of a different argument that had a different meaning. Out of context.
-
Only because it's a part of a different argument that had a different meaning. Out of context.
Didn't your "everything is deductible" joke you are running with stem from that thread?
-
Don't stop him, he's on a roll.
I know you've got VV's back (and front) but he was so busy making noise and showing his "expertise" he never grasped the very simple concept that the money the IRS shows as mine really ISN'T mine because I can't take it out if I'm growing the business and because it may or may not exist depending on the accounting gymnastics used to create figures from the past and for the future.
Nothing anybody can say will ever change that reality. It is what it is. Been living it for a long time.
-
In a business world like mine where I have travel, entertainment, salaries, bonuses, commissions, development, hardware, software, blah blah blah every dime is NOT (and probably never will be) 100% deductible.
Capice?
Not trying to argue with you but since when did those things stop becoming "expenses"? Expenses that come out before bottom line income.
-
Didn't your "everything is deductible" joke you are running with stem from that thread?
Yes, but the idea that I said salaries aren't deductible is fraudulent. That's not what the statement he posted means.
Of course they are (as a general rule). That entire argument was in reference to Obama's definition of "the rich" is based on paper P&L that isn't necessarily reality based. Just because the P&L says I "made" XXX doesn't mean I can actually go to the bank and take that money out as mine.
And it went from there.
Unless it didn't.
-
Not trying to argue with you but since when did those things stop becoming "expenses"? Expenses that come out before bottom line income.
Didn't say they WEREN'T expenses for God's sake. They are. When they're applied is a different matter.
I'm going to fire all my fucking accountants. I've OBVIOUSLY been overthinking this.
I'll just take what I deposit in the bank, get me a Neat Receipts machine and run every receipt I get through it. When I get to the end of the year, I'll take that number, give it to the IRS and call it good.
-
Didn't say they WEREN'T expenses for God's sake. They are. When they're applied is a different matter.
I'm going to fire all my fucking accountants. I've OBVIOUSLY been overthinking this.
I'll just take what I deposit in the bank, get me a Neat Receipts machine and run every receipt I get through it. When I get to the end of the year, I'll take that number, give it to the IRS and call it good.
Not saying that.
You just said that stuff wasn't deductible. Last time I did it with my business it was. The only thing you listed I have ever not deducted 100% in the same year was equipment which I used depreciation on. Maybe we're getting into semantics with the words "earned" and "income" as it relates to before or after certain expenses. I was mainly just refering to your analysis of not being able to deduct those items you listed. That just doesn't sound right.
-
Look: there's a simple solution here.
K should fire his two accountants and let AWK and VV do his taxes. Instant savings win.
-
Look: there's a simple solution here.
K should fire his two accountants and let AWK and VV do his taxes. Instant savings win.
I won't even charge you a fee. Well, except you will have to chase VV around with your KISS makeup on for my enjoyment.
-
You fail to comprehend.
Obama's definition of "the rich" includes BLAH BLAH CRY CRY WAH
Your quoted statement explains that what an LLC or S-Corp earns as gross income (prior to any deductions being taken) is shown on the owner's personal return.
False.
Business expenses are taken out at the 1065 and 1120-S level. They are never reported on your personal return for LLCs or S-Corps. What is reported on your personal return is the amount after deductions are taken out, which includes the "salararies" you pay your employees.
But it's useless explaining it to you yet again. I'm sure that you have an after-the-fact explanation for this tidbit of intelligence as well:
Do you really think that when I spend $50,000 on a server I can just go to my tax form and wipe $50k from the income column?
Just as a reminder, the answer to that question is "Yes," so you may want to start fabricating your Gregg Williams' response about what you "really meant."
-
An update on MY thread -
I turned the side gig down. I could get my own students in my own basement and charge the $80/month and not split it with anyone. That's going from $40 an hour to around $14 an hour just to use someone else's office. Bump that.
I did bring my demo CD to Riverchase Country Club, Birmingham Country Club, and Mountain Brook Country Club.
On another note, I'm fairly sure the Birmingham Country Club has sharks with laser beams attached to their heads patrolling the premises. Anyone not deemed rich enough is shot immediately.
-
Fuck it.
I clearly haven't run a business for years, I have no idea at all how things actually work, I didn't file taxes for the last 30 years and I've never gotten a K-1 -- because all I really need is a stack of receipts and a calculator.
VV seized on an example (admittedly a poor one) I tried to use, failed to comprehend that it was just a random illustration not to be taken literally and stuck to it like a tick to a dog's balls. Fail.
And somebody took an offhand comment today and turned it into a crusade.
I'm not going to go over my returns line by line. But if you want to believe its as simple as $ in - $ spent = profit/loss that appears on your K1 and = cash in the bank, please PLEASE, I implore you to fire your accountants, fire your tax attorneys, fire your bookkeepers and just keep up with your business with a pencil on a grocery sack. The IRS will thank you for simplifying their life.
-
Fuck it.
I clearly haven't run a business for years, I have no idea at all how things actually work, I didn't file taxes for the last 30 years and I've never gotten a K-1 -- because all I really need is a stack of receipts and a calculator.
VV seized on an example (admittedly a poor one) I tried to use, failed to comprehend that it was just a random illustration not to be taken literally and stuck to it like a tick to a dog's balls. Fail.
And somebody took an offhand comment today and turned it into a crusade.
I'm not going to go over my returns line by line. But if you want to believe its as simple as $ in - $ spent = profit/loss that appears on your K1 and = cash in the bank, please PLEASE, I implore you to fire your accountants, fire your tax attorneys, fire your bookkeepers and just keep up with your business with a pencil on a grocery sack. The IRS will thank you for simplifying their life.
(http://www.toomanymornings.com/wp-content/uploads/2010/08/monty-python-and-the-holy-grail.jpg)
:)
-
Fuck it.
So angry...about something that you started in this thread...
:starz:
-
So angry...about something that you started in this thread...
:starz:
Really? I made a prowlerish joke. Somebody else embarked on a chopperian rampage based on that offhand comment.
Unless they didn't. But they did.
-
Really? I made a prowlerish joke. Somebody else embarked on a chopperian rampage based on that offhand comment.
Yes, the one offhand comment caused me to reply.
Don't forget, you can deduct EVERY dime you ever spend and then some!!!
By the time you get through deducting you'll be making thousands and thousands a week!!!!!
Just ask a tax lawyer.
:taunt:
If he would just log in here, all his tax troubles would disappear. He'd find out that he can deduct every penny he ever spent, even on sharp brims and playa threads. All deductible. Everything spent can be written off.
By the time he got through being educated on this board, the IRS would owe HIM money. Tons of it.
Don't recall saying you couldn't deduct payroll. I know you can deduct payroll in most circumstances.
Was more making snide reference to the entire "deduct everything" scenario which -- despite protestations -- is complete and utter bullshit.
That's the three one.
-
An update on MY thread -
I turned the side gig down. I could get my own students in my own basement and charge the $80/month and not split it with anyone. That's going from $40 an hour to around $14 an hour just to use someone else's office. Bump that.
I did bring my demo CD to Riverchase Country Club, Birmingham Country Club, and Mountain Brook Country Club.
On another note, I'm fairly sure the Birmingham Country Club has sharks with laser beams attached to their heads patrolling the premises. Anyone not deemed rich enough is shot immediately.
:haha:
VV will definitely do your taxes pro bono
-
An update on MY thread -
I turned the side gig down. I could get my own students in my own basement and charge the $80/month and not split it with anyone. That's going from $40 an hour to around $14 an hour just to use someone else's office. Bump that.
I did bring my demo CD to Riverchase Country Club, Birmingham Country Club, and Mountain Brook Country Club.
On another note, I'm fairly sure the Birmingham Country Club has sharks with laser beams attached to their heads patrolling the premises. Anyone not deemed rich enough is shot immediately.
make sure your home owners policy is tight.
-
An update on MY thread -
I turned the side gig down. I could get my own students in my own basement and charge the $80/month and not split it with anyone. That's going from $40 an hour to around $14 an hour just to use someone else's office. Bump that.
I did bring my demo CD to Riverchase Country Club, Birmingham Country Club, and Mountain Brook Country Club.
On another note, I'm fairly sure the Birmingham Country Club has sharks with laser beams attached to their heads patrolling the premises. Anyone not deemed rich enough is shot immediately.
It's like this thread is actually about you or something. Imagine that.
-
I made a prowlerish joke.
BOOM MUTHA FUCKAS!!!! YEAHHH!!!!!!! RIP HIS GAWDDAMNNED HEAD OFF BEECHES YEAH!!!!! EAT SHIAATTT!!! BOOOOM!!!!!!
-
VV will definitely do your taxes pro bono boner.
-
An update on MY thread -
What is your major malfunction, numbnuts? Didn't Mommy and Daddy show you enough attention when you were a child?
-
Really? I made a prowlerish joke. Somebody else embarked on a chopperian rampage based on that offhand comment.
Unless they didn't. But they did.
Roflcopters. Based on that one offhand comment. You fall into your own stereotype and don't even realize it.
-
Roflcopters. Based on that one offhand comment. You fall into your own stereotype and don't even realize it.
I made an offhand comment. It's what I do. Like picking a scab. I hit the same point for effect.
Somebody shit the bed. Warn't me until the bed was done soiled. Once there was shit in it, why not add my own?
-
I made an offhand comment. It's what I do. Like picking a scab. I hit the same point for effect.
Somebody shit the bed. Warn't me until the bed was done soiled. Once there was shit in it, why not add my own?
Some honesty? Someone put a tomato on your burger yesterday - didn't they?
-
Some honesty? Someone put a tomato on your burger yesterday - didn't they?
It was a Bammer fan to boot.
-
It was a Bammer fan to boot.
Wearing a "Who Dat?" shirt.
-
I guess I should just post the background -
I'm looking into doing a side gig teaching guitar at a local music shop. They can give me 12 students. Tuition is $80/month per student, and the owner of the music shop wants to take 50% for providing the students and the room and materials for teaching. That brings the money down to $40/month per student minus whatever I lose through taxes.
I'm trying to figure out if whatever money I'll be bringing in is worth working six extra hours a week.
I have seen cases where either the state or IRS has penalized individuals for not paying their quarterly percentage.
-
Wearing a "Who Dat?" shirt.
and a democrat.
-
I have seen cases where either the state or IRS has penalized individuals for not paying their quarterly percentage.
*Raises hand*
Have been so penalized. Pisses me off.
-
Some honesty? Someone put a tomato on your burger yesterday - didn't they?
No. Not really. Just a morning meeting with the fucking accounting firm and the shell games. What percentage of salary goes toward development, what goes to support, what blah blah blah.
I should have just taken them my Neat Receipts File and told them to deduct it all and fuck all their questions.
-
When you don't file and pay taxes by the due date prescribed, you are generally penalized. That's usually the way it goes.
-
When you don't file and pay taxes by the due date prescribed, you are generally penalized. That's usually the way it goes.
Well yeah.
Taxes due April 15. Until we made it through the first year I was in business and saw what the shit eating K1 said I supposedly "made" the concept of quarterly wasn't a sure thing. We landed a major contract late in the year that changed the world.
IRS didn't give a shit. They retroactively applied the concept that I should have paid quarterly, Said I should have "anticipated" it. And jacked me because I didn't.
That sparked me getting a new bookkeeper, and hiring two different accounting firms to handle business and personal taxes to keep me out of that bog. And it's been a shell game ever since. Fired one firm, picked up another, still (always) looking for the "right" fit -- the one that will fucking TELL ME how to dodge the IRS sledgehammers and not always and only look at what happened in the past and go "ooohhh... damn.... you're gonna owe $xxxx,xxxxxxxxxxxxxxxx"
Accountants are miserable at that. They're like damage assessors. Most can't tell you what's going to happen, they only know how to react after the fact. Which is, in my case, typically WORTHLESS.
-
When you don't file and pay taxes by the due date prescribed, you are generally penalized. That's usually the way it goes.
Doesn't your taxable income also have to be X amount before you actually have to file quarterly?
-
Doesn't your taxable income also have to be X amount before you actually have to file quarterly?
We (wife and I) had to pay quarterlies my third year of working after college. Basically you are right, they base it more on if you owe above a certain amount for a few years in a row, which in turn is based on your adjusted taxable income.
They say you must pay quarterlies because the government should be getting to use that money throughout the year and you are keeping it from them by not having enough cut from your paycheck. Of course, every year but two I've gotten a nice return, but they never pay me on a quarterly basis for withholding too much money from me. I love double standards.
-
I love double standards.
The gov't loves them. Some people don't even mind if they control the insurance industry. They do such a lovely job with mail, education and taxes.
-
*Raises hand*
Have been so penalized. Pisses me off.
Me to and me too.
-
Just post: Troll Kaos likes to troll.
(http://www.tigersx.com/images/troll_kaos.png)
-
(http://www.tigersx.com/images/troll_kaos.png)
#winning
-
(http://www.tigersx.com/images/troll_kaos.png)
+1000
-
Doesn't your taxable income also have to be X amount before you actually have to file quarterly?
Yes and no.
If you are self-employed (including being the owner of a sole proprietorship, or in a partnership, LLC, or S-Corp), then you have to file if you anticipate your tax liability to be more than $1,000.
If you are a regular corporation, then you have to file quarterly if your tax liability will be more than $500.
In those two instances, it's not based upon how much you make in gross income as much as it is based upon your taxable income and the ultimate amount of tax due.
Aside from self-employed individuals, other people may have to file estimated quarterly taxes if the amount they owe will be more than $1,000 and their withholding amount is either A) less than 90% of the total amount that will be owed, or B) less than 100% of what was owed the previous year.
Basically, they try to give employed individuals the opportunity to correct their withholding amounts so that the vast majority, if not all, of the taxes are paid throughout the year with the withholding deposits. If you are not withholding with a W-2 (self-employed) or otherwise are not withholding the proper amount, then they will require you to pay quarterly.
-
Late to this thread because I've been enjoying Orange Beach on tax dollars of the Alabama tax payer, but where is Chizad and CCTAU with their sage legal advice here?
-
Late to this thread because I've been enjoying Orange Beach on tax dollars of the Alabama tax payer, but where is Chizad and CCTAU with their sage legal advice here?
Penisboob. That's where.
-
Yes and no.
If you are self-employed (including being the owner of a sole proprietorship, or in a partnership, LLC, or S-Corp), then you have to file if you anticipate your tax liability to be more than $1,000.
Yep, thats it. Since I owned a business AND worked a regular W2 job at the same time, I never did quarterly because of the WH from my normal paycheck causing my tax liability to be nothing. Even with the income from the business, I was having so much taken out of my paycheck at work (on purpose) that it still put my total tax liability at 0. In fact, I still got some back a couple of years.
-
Yep, thats it.
Of course that's it.
I'M A LAWYER!
And a patriot. And a champion.
http://www.youtube.com/watch?v=tBLTW-KLdHA (http://www.youtube.com/watch?v=tBLTW-KLdHA)