Today TaxMama hears from Writer Mom at SavvyMommy.com, who says “Last year I published two articles for a magazine and have been trying to build a career as a freelance writer. My earnings totaled $970 from freelance writing last year. Should I file? Do I write off the home office already set up because my […]
Category Archives: Self-Employed
Today TaxMama hears from Puzzled in San Francisco, CA who wants to know: “My financial advisor told me there is a great deal of uncertainty with regard to egg donor compensation. Many egg donor boards mention that if the compensation if considered “pain and suffering” then it’s not taxable. I would much rather keep the […]
Today, Dina from Santa Barbara, CA moans, “Help! We owe $14,000.00 in taxes this year. My husband has a small business and only made $61,000.00. What happened? How can one live and provide for a family of four on that? Now our savings are gone.”
Today TaxMama hears from Dennis in Texas who tells us, “My wife and I are both self-employed, and we’re both the only employees in our companies. We would both like to start ROTH’s, because we would like to be able to withdraw contributions, without penalty, if an emergency came up. We file jointly and our […]
Today TaxMama hears from Peter in Florida who wants to know, “I am self employed, a sole proprietor running a one person business. Are my income tax preparation costs personal expenses? Or may I record them as business expenses?”
Today TaxMama hears from Mary in Ohio, who says, “I am 15 and have been working for the past 3 years. I have my own business (tutoring). What amount do you have to earn in order to pay taxes on it?”
Today TaxMama hears from Doug, an Enrolled Agent in Northridge, CA who insists that, “The special $5,000 deduction for start-up costs spent by businesses after 10/22/2004 only applies to companies who’ve already started doing business. They can’t take the deduction the year before the business opens their doors.” TaxMama disagreed with Doug, so, it was […]
Today TaxMama hears from Tommi in NC who asks, “When would be the best time to change from a sole proprietor to an LLC? Now? Or would it be best to wait until the first of the year, since I will have to get a new tax ID number (I will have employees)? Do I […]
Today TaxMama wants to talk about a disturbing IRS policy. It’s based on this question from a reader – “The IRS is wanting to garnish my wages for back taxes from 1998. My ex and I are both responsible, but he is claiming self employment, living with a very wealthy girlfriend. So IRS is coming […]
Today TaxMama hears from Debby in Illinois who got quite a shock. “I have been married for about a year (have been together for many more). I just found out that my husband did not file tax returns for several years, including at least two when he was self employed. I am in the process […]
Today TaxMama hears from Ross in NJ who wants to know. “My wife is self-employed and I am employed at an office. We were told that I could adjust my W-4 to cover her estimated taxes, thereby eliminating the need to make quarterly payments. Is this correct? If so, how do we do that?”
Today TaxMama hears from Kerry in Iowa, who tells us. “My husband is a sole proprietor general contractor. The lumberyard has handed him some great jobs. But they have been the general contractor on them. They pay my husband for his contracts with them. Recently, we hired a subcontractor to do the electrical work, which […]