Taxes, again.

[PussyRiot]

I'm really curious if the other ladies here even pay taxes? Do you pay for 100% of your cash income, or like maybe 50%? This is seriously keeping me up at night, I even had a dream about doing my taxes.

Can I just claim it under "Other Income Not Reported Elsewhere"?

This sucks.

[Guest060214]

T-U-R-B-O T-A-X

answers all your questions. And that answer will be yes, but if you are filing as "self-employed" it is a no brainer.

They haven't kicked you out of Panera yet?

[PussyRiot]

Panera can't even handle me right now.

I'm not filing self-employed, but just miscellaneous income as a "massage therapist". It's kind of silly how much I'm going to pay, I feel like a sucker for being honest

[Guest060214]

ok, I file my own taxes for a large LLC, please disregard the earlier advice given to about several small LLCs. Besides, it is too late to construct an LLC for 2013.

I am not a CPA, more like a skidmarked pair of BVDs sometimes.

If you were not issued a W2, you are self employed. If you were not issued a 1099 for contract work, the income you report with have to be from "not reported elsewhere", meaning nobody filed copies of W2 or 1099 with the IRS for you. What you report is up to you but make sure it will jive with your bank deposits into any accounts you hold.

If audited, the IRS will first look at your bank deposits and ask where that money came from.

And, if this is your first year in business, typically nobody expects a profit even the IRS, but being self employed you will always be liable for self employment taxes, social security and medicare. roughly 13% of what you report. If you didn't file quarterly estimated tax paying those for yourself, it will be calculated off of what you report as income.

[PussyRiot]

Yeah, that's pretty much what I've gathered. Going to create an LLC. Will that greatly reduce my tax liability next year?

[Guest060214]

Originally Posted by PussyRiot

Yeah, that's pretty much what I've gathered. Going to create an LLC. Will that greatly reduce my tax liability next year?

Not likely. An LLC is primarily to reduce your exposure to personal liability. You will gain some additional deductions but unless you lease a location specific to your business, those added deductions are negligible. An LLC increases your work load. You will need ti file annually with the State Franchise Tax Board, local city business property taxes will become likely....etc. As a sole proprietor it's mostly to protect your personal assets should shit happen.

And I'm not a CPA, if one would like to step or correct me, I'd defer to them...

[PussyRiot]

You know what? I used to think you were a huge douchebag, but you're alright… just alright.

Now go hump Jillian's leg some more.

[Guest060214]

Originally Posted by PussyRiot

You know what? I used to think you were a huge douchebag, but you're alright… just alright.

Now go hump Jillian's leg some more.

wow...I'm getting all teary eyed..

I feel better being a small douchebag.

[Boltfan]

Originally Posted by Jarvis

Not likely. An LLC is primarily to reduce your exposure to personal liability. You will gain some additional deductions but unless you lease a location specific to your business, those added deductions are negligible. An LLC increases your work load. You will need ti file annually with the State Franchise Tax Board, local city business property taxes will become likely....etc. As a sole proprietor it's mostly to protect your personal assets should shit happen.

And I'm not a CPA, if one would like to step or correct me, I'd defer to them...

Nope, you are pretty dead on.

[old-n-new]

if it is any consolation, paying your self employment tax will increase the amount of your social security when you retire at 62 or 65.

[Boltfan]

Unless laws have changed you have to pay into the system for 40 Quarters or 10 years to be eligible for Social Security.

[Bestman200600]

You file a tax return to start the running of the statute of limitations. The income and expense aspect should be discussed with a CPA friend.