What Freelancers Should Know About Taxes
Quick summary:
1. There are seven tax brackets for the 2021 tax year: 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent and 37 percent.
2. While S-Corporation income isn't subject to self-employment taxes the way sole proprietor income is, if you elect to be taxed as an S-Corporation, you must pay yourself a salary in the form of W-2 wages that are subject to FICA taxes, which is known as reasonable compensation.
3. An S-Corporation does not pay tax; instead, profits and/or loss flow to the taxpayer and is claimed on their personal tax return
#biyro #browardcounty #cpa #taxseason #creditrestoration
More: https://biyro.com/blog/freelance/what-freelancers-should-know-about-taxes/
Quick summary:
1. There are seven tax brackets for the 2021 tax year: 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent and 37 percent.
2. While S-Corporation income isn't subject to self-employment taxes the way sole proprietor income is, if you elect to be taxed as an S-Corporation, you must pay yourself a salary in the form of W-2 wages that are subject to FICA taxes, which is known as reasonable compensation.
3. An S-Corporation does not pay tax; instead, profits and/or loss flow to the taxpayer and is claimed on their personal tax return
#biyro #browardcounty #cpa #taxseason #creditrestoration
More: https://biyro.com/blog/freelance/what-freelancers-should-know-about-taxes/
What to do if you're stressing about your freelance tax return
Quick summary:
1. For claiming expenses, be aware that you can claim additional tax relief on money paid into private pensions, gift aid charity payments, woking from home tax relief, and choosing the correct mileage rate.
2. So, we spoke to seasoned tax experts and accountants to work out what exactly you need to know about doing your tax return.
3. Many people file tax returns at the last minute, leading to errors that can sometimes translate into expensive penalties or fines if they have underdeclared their tax or filed too late
#biyro #incometax #blackbusiness #cpa #construction
More: https://biyro.com/blog/freelance/what-to-do-if-youre-stressing-about-your-freelance-tax-return/
Quick summary:
1. For claiming expenses, be aware that you can claim additional tax relief on money paid into private pensions, gift aid charity payments, woking from home tax relief, and choosing the correct mileage rate.
2. So, we spoke to seasoned tax experts and accountants to work out what exactly you need to know about doing your tax return.
3. Many people file tax returns at the last minute, leading to errors that can sometimes translate into expensive penalties or fines if they have underdeclared their tax or filed too late
#biyro #incometax #blackbusiness #cpa #construction
More: https://biyro.com/blog/freelance/what-to-do-if-youre-stressing-about-your-freelance-tax-return/
Quarterly Estimated Tax Payments: When Are They Due, How Do You File and More
Quick summary:
1. Some classes of workers -- particularly those whose income is exceptionally modest, inconsistent or seasonal -- are exempt from having to make quarterly payments to Uncle Sam, however:If your net earnings were $400 or less for the quarter, you don't have to pay estimated taxes -- but you still have to file a tax return even if no taxes are due.
2. Essentially, estimated tax allows you to prepay a portion of your income tax every few months to avoid paying a lump sum on Tax Day.
3. When filing your estimated taxes, use the 1040-ES IRS tax form or the 1120-W form if you're filing as a corporation
#biyro #realestate #cash #cpa #fortlauderdale
More: https://biyro.com/blog/freelance/quarterly-estimated-tax-payments-when-are-they-due-how-do-you-file-and-more/
Quick summary:
1. Some classes of workers -- particularly those whose income is exceptionally modest, inconsistent or seasonal -- are exempt from having to make quarterly payments to Uncle Sam, however:If your net earnings were $400 or less for the quarter, you don't have to pay estimated taxes -- but you still have to file a tax return even if no taxes are due.
2. Essentially, estimated tax allows you to prepay a portion of your income tax every few months to avoid paying a lump sum on Tax Day.
3. When filing your estimated taxes, use the 1040-ES IRS tax form or the 1120-W form if you're filing as a corporation
#biyro #realestate #cash #cpa #fortlauderdale
More: https://biyro.com/blog/freelance/quarterly-estimated-tax-payments-when-are-they-due-how-do-you-file-and-more/
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Quarterly Estimated Tax Payments: When Are They Due, How Do You File and More | BIYRO.COM
Quarterly Estimated Tax Payments: When Are They Due, How Do You File and More
Quick summary:
According to the IRS, you generally have to make estimated tax pa
Quick summary:
According to the IRS, you generally have to make estimated tax pa