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    #1

    Tax Season

    First off I have no idea where to put this so if someone will kindly make sure it goes in its proper home that'd be great.

    So as we know here at least in the US of A tax season is starting. Well I took on another personal chef gig to supplement my income while waiting for the LU job to start. I am contracted through Salted Chef and until I become a full time employee(I wont be) I will be just that a contracted person. I looked at the pay stub of my check and the form I will be getting is a 1099, I've never had one of those and they didn't take out any taxes. I should have looked at that earlier. So question is how much should I be taking out myself each check so that when I file and have to pay back it wont kill me? Or is there a way I can have it automatically taken out and given to the government like its suppose to so I don't worry about it at the end of the year?

    I figure I need to look at how much state tax is and all that good stuff but someone who has possibly dealt with this would be a huge help. Thanks
    "If you want to know what a man is like, take a good look at how he treats his inferiors, not his equals." -- Sirius Black

    "Time is an illusion, lunch time doubly so."-- Ford Prefect
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    #2
    Re: Tax Season

    I'm a contracted employee with the press I work with. Having my employer hold funds isn't possible, because it's royalties per quarter. I also have to file taxes as an independent contractor, which is a bit of a pain. If you usually do the turbotax thing (which I did), it might be cheaper in the long run to just talk to a CPA. I paid pretty much the same amount I would talking to an actual person doing turbotax because of the independent contractor part.
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      #3
      Re: Tax Season

      I'm pretty sure that when you're freelancing (which I think you are if you're getting a 1099), you have to put your own taxes aside. Look up your federal tax rate and your state tax rate and set that aside. I'm not 100% sure, but I think these are based on your overall income. Even if you deal with an agency, you'r probably still considered an independent contractor.

      BTW I know I'm not US-based, but I've freelanced for American companies for so long that I've learned a bit. I get the same general tax emails that everyone else gets haha. I don't envy you guys. The IRS makes our tax system look easy (plus, they're really lax about our deadlines here).

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        #4
        Re: Tax Season

        Do I base it off my overall income or just the income I am receiving from Salted Chef?

        - - - Updated - - -

        Also thanks for you help!!
        "If you want to know what a man is like, take a good look at how he treats his inferiors, not his equals." -- Sirius Black

        "Time is an illusion, lunch time doubly so."-- Ford Prefect

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          #5
          Re: Tax Season

          Originally posted by kalynraye View Post
          Do I base it off my overall income or just the income I am receiving from Salted Chef?

          - - - Updated - - -

          Also thanks for you help!!
          I'd say that would depend on whether the other's if there are others are pulling out taxes. Your total tax for Salted Chef is an account of its own which would be combined with any other taxes held. So you'd pay taxes based upon them initially then combine the totals for your total tax amount.
          I'm Only Responsible For What I Say Not For What Or How You Understand!

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            #6
            Re: Tax Season

            So....this depends on a couple of things...

            1) How much money will you make doing the Salted Chef gig?

            2) How long will you be doing the Salted Chef gig?

            3) How much money will you comparably make once you start your regular job?

            4) How do you take your taxes out from your paycheck normally?

            If you will only be there a few weeks, its part time, and you plan to withhold as "married but withhold at the higher single rate" when you transition to your normally taxed full time job, then you shouldn't have to worry about owing. You would obviously get less back at the end of the year (assuming you don't make so much money that you never see a refund) because of the non-payment of the PT contracted job. But, if you do want to take a bit out and set it aside (or if you need to because you will be working there for quite a while and/or making a substantial part of your income that way), you need to know what your effective tax rate is based on your (you and hubby if you file as married) taxable income is, and you should be okay to just set aside that amount of money from that pay check (and if you want to be extra cautious, you can add an extra bit of money to it).

            But....better than what I (or anyone else can tell you), call the IRS. Let them know your situation, and ask them how you should calculate what you should set aside, and what resources they have to help people in your situation figure out your taxes. Hubby and I have had to contact them with questions for various reasons, and 5 out of the 6 times, the people we have gotten were courteous, understanding, helpful, and ultimately helped us fix our problem in the most economical way possible. If you catch them now (and not in the month of April) your wait probably wouldn't be all that long either...
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              #7
              Re: Tax Season

              Originally posted by thalassa View Post
              So....this depends on a couple of things...

              1) How much money will you make doing the Salted Chef gig?

              2) How long will you be doing the Salted Chef gig?

              3) How much money will you comparably make once you start your regular job?

              4) How do you take your taxes out from your paycheck normally?
              So far I have only gotten 1 check from SC and it was a $150. I will only be getting $300 a month from SC because I only have 1 client and work about 6-8 hours every 2 weeks. So if I stayed with them for the whole year I would only be making $3600. My LU pays much much more then that and I take out more from each check to have more at the end of the year. I will call the IRS and see what they say thanks guys for the help.
              "If you want to know what a man is like, take a good look at how he treats his inferiors, not his equals." -- Sirius Black

              "Time is an illusion, lunch time doubly so."-- Ford Prefect

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                #8
                Re: Tax Season

                Originally posted by kalynraye View Post
                Do I base it off my overall income or just the income I am receiving from Salted Chef?

                - - - Updated - - -

                Also thanks for you help!!
                I think your tax rate is based on your total income. I'd save that, just to be safe. If I'm wrong, at least you'll have money in the bank! Also, I'd second calling the IRS. US taxes can be so complicated, so it helps to get first-hand information.

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                  #9
                  Re: Tax Season

                  Note: call the IRS if you want to, but A) don't count on the answer you get being correct, and B) if the IRS gives you the wrong answer, you can not use it as any kind of defense. You actually need a tax lawyer, or good accountant.
                  Every moment of a life is a horrible tragedy, a slapstick comedy, dark nihilism, golden illumination, or nothing at all; depending on how we write the story we tell ourselves.

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