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/
Here's what freelancers should know about estimated taxes
Quick summary:
1. If you were a US citizen or resident alien for all of 2020, your total tax was zero and you didn't have to file an income tax returnIf your income fluctuates drastically throughout the year (if you run a seasonal business, for instance), you may be able to lower or eliminate your estimated tax payments with an annualized income installment method.
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. Instead, you can pay estimated taxes throughout the year to avoid tax penalties when filing your tax return
#biyro #financialfreedom #taxrefund #blackbusiness #taxseason
More: https://biyro.com/blog/freelance/heres-what-freelancers-should-know-about-estimated-taxes/
Quick summary:
1. If you were a US citizen or resident alien for all of 2020, your total tax was zero and you didn't have to file an income tax returnIf your income fluctuates drastically throughout the year (if you run a seasonal business, for instance), you may be able to lower or eliminate your estimated tax payments with an annualized income installment method.
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. Instead, you can pay estimated taxes throughout the year to avoid tax penalties when filing your tax return
#biyro #financialfreedom #taxrefund #blackbusiness #taxseason
More: https://biyro.com/blog/freelance/heres-what-freelancers-should-know-about-estimated-taxes/
As the ranks of freelancers swell, the taxman cometh for those in Arlington
Quick summary:
1. Customers can get confused and think that they should pay a flat fee for gross receipts up to $100,000, plus the tax rate on the remaining receipts, however, the correct amount to file and pay is based on multiplying the total gross receipts by the tax rate, said Susan Anderson, the communications director for Arlington's Office of the Commissioner of Revenue.
2. Independent workers can deduct their expenses from their state and federal taxes, but locally, Arlington's Business, Professional and Occupational License (BPOL) tax collects on pre-expense revenue, or gross receipts
#biyro #taxreturn #accounting #cash #taxseason
More: https://biyro.com/blog/freelance/as-the-ranks-of-freelancers-swell-the-taxman-cometh-for-those-in-arlington/
Quick summary:
1. Customers can get confused and think that they should pay a flat fee for gross receipts up to $100,000, plus the tax rate on the remaining receipts, however, the correct amount to file and pay is based on multiplying the total gross receipts by the tax rate, said Susan Anderson, the communications director for Arlington's Office of the Commissioner of Revenue.
2. Independent workers can deduct their expenses from their state and federal taxes, but locally, Arlington's Business, Professional and Occupational License (BPOL) tax collects on pre-expense revenue, or gross receipts
#biyro #taxreturn #accounting #cash #taxseason
More: https://biyro.com/blog/freelance/as-the-ranks-of-freelancers-swell-the-taxman-cometh-for-those-in-arlington/
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As the ranks of freelancers swell, the taxman cometh for those in Arlington | BIYRO.COM
As the ranks of freelancers swell, the taxman cometh for those in Arlington
Recent highlights:
1. Customers can get confused and think that they should pay a
Recent highlights:
1. Customers can get confused and think that they should pay a