?? for those that work from home and receive 1099 MISC forms

[edk35]

I am working from home and I have never done this before so I am curious....... do you submit estimated taxes throughout the year or wait and pay when you do your taxes if you have to? I have not got gotten my 1099 yet ..expect it this week, however I was able to plug in what i made to get a rough idea of what we are getting back or not getting back from Federal. When I did it...I had the pay amt. but was unsure about the schedule C stuff. I just started working at this part-ime job in late April so I have not made a lot from this job. I call it my part-time part-time job since I do have another part-time job.

 

[momof1princess]

in 2008, i had started working from home in june, so i didn't do any estimated taxes. i just paid in when we filed our taxes. i put in the info from my 1099 misc, and it lowered our refund by a few hundred dollars, but that's ok. i didn't do estimated taxes for 2009 either. my pay was cut in half in february of 2009, so i made just slightly more for all of 2009 than i did for 6 months of 2008 and DH made 4-5K less in 2009, so i figure we'll even out.

 

[Cheshire Figment]

I would also suggest going to www.irs.gov and order the following publications which will probably help a lot.

334 - Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ)
463 - Travel, Entertainment, Gift, and Car Expenses
535 - Business Expenses
551 - Basis of Assets
552 - Recordkeeping for Individuals
560 - Retirement Plans for Small Business (SEP, SIMPLE and Qualified Plans)
583 - Starting a Business and Keeping Records
587 - Business Use of Your Home
946 - How to Depreciate Property

And also, if the time can be spared and at and minimal cost take a first semester Principles of Accounting course at a local Community College. Not necessarily to keep the books, but to get an understanding of what the business is doing.

Note that most small business fail within the first few years not because the owner did not know his subject but because they did not understand the accounting.

Mike (CPA Retired)

 

[edk35]

I would also suggest going to www.irs.gov and order the following publications which will probably help a lot.

334 - Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ)
463 - Travel, Entertainment, Gift, and Car Expenses
535 - Business Expenses
551 - Basis of Assets
552 - Recordkeeping for Individuals
560 - Retirement Plans for Small Business (SEP, SIMPLE and Qualified Plans)
583 - Starting a Business and Keeping Records
587 - Business Use of Your Home
946 - How to Depreciate Property

And also, if the time can be spared and at and minimal cost take a first semester Principles of Accounting course at a local Community College. Not necessarily to keep the books, but to get an understanding of what the business is doing.

Note that most small business fail within the first few years not because the owner did not know his subject but because they did not understand the accounting.

Mike (CPA Retired)

Thanks Mike!!! Thanks for taking the time to type out all that great information. I work for a company as an independent contractor teaching English instruction to Chinese students. I didn't have to buy anything to do the job. There was no money spent up front or anything like that. I use my computer (that I already had) and a headset with a mic. I did buy that but my dh uses that with his Rosetta Stone program that he started this year too. I don't think I can claim the cost of the headset. It is just a little part-time job and I don't expect to make big bucks from it. It is my fun money basically. I know people say you can claim electricity, supplies and all. I don't use any supplies. I don't travel with this job. I don't even take a paycheck to the bank because I am paid direct deposit every 2 weeks. I don't know that I would go to all the trouble to figure out electric.

Thanks again.......

 

[WeLuvTink!]

We pay estimated income taxes quarterly to both the feds and the state. I am under the impression there is a penalty for not doing so, so I suggest you research the issue or seek some guidance from a local tax professional. I could be completely wrong, but wouldn't want to see you penalized for something you didn't even know about.

 

[edk35]

We pay estimated income taxes quarterly to both the feds and the state. I am under the impression there is a penalty for not doing so, so I suggest you research the issue or seek some guidance from a local tax professional. I could be completely wrong, but wouldn't want to see you penalized for something you didn't even know about. [/QUOTE


Most of the instructors who file joint with their husbands have not paid any estimated taxes (worked for this company for the past 2 to 3 years) and it all works out for them. I think people filing single are the ones that might have the issues. I guess I will find out when I get that 1099 Misc. form.

 

[disneymarie]

What differs from the Home business from a hobby, IE) making soap selling online, do sewing repairs, serving subpeona', family advocate, tutoring?

What form would record the portion of the house or supplies needed?

Not something I am doing now, but friends and I have discussed over coffee to supplement income.