A Minneapolis tax attorney help the self-employed stay out of trouble
We all know the famous, old saying by Ben Franklin, “In this world nothing can be said to be certain, except death and taxes.” We’ll I think he may have left out one thing. I think the saying should be, “In this world nothing can be said to be certain, except death, taxes and messing up your taxes.”
And why wouldn’t we mess a few things up? With the ever-changing tax code and just the general fallibility of humankind, we’re bound to slip up every once in a while. When counting our nickels and dimes. It may not be to hard to keep track of your taxes if you work a day job that handles it all for you, but for those that are self-employed, it’s a different story altogether. Here a few examples of the mistakes made by the self-employed.
One thing you may not know, is that anyone that falls under a 1099 classification must pay taxes 4 (yes, four) times a year, based on an estimated profit. So, basically you have to pay taxes on what you think you might make, so you could see how this could become a huge ball of cluster. If you don’t pay those estimated taxes you will be penalized anywhere from six to eight percent of those estimated earnings.
Keeping accurate records is also important. This is generally important for everyone paying taxes, but it’s especially important for those that are self-employed. Keeping receipts and a record of earnings will save a ton of money when taxes are taken. There are a lot of advantages when itemizing your records.
Making sure you’re classification is correct is also key when tax time comes. Remember you are an Independent Contractor and you are responsible for all communications between yourself and all state and federal tax agencies.
If you’ve fallen too far behind, Tax Tiger is a great option if you need to “square up” any past tax situations. Whether you need a Minneapolis tax attorney or a tax attorney in Sacramento, the Tax Tiger team is more than well equipped to handle your situation.
Source: Top 5 Tax Mistakes 1099 Independent Contractors Make – October 13, 2014 – Peers.org
Latest posts by admin (see all)
- Stock Transactions Can Complicate Taxes If Not Properly Reported - March 2, 2018
- Here are a few helpful summer tips from a trusted San Diego tax lawyer - August 19, 2015
- Involved in Tax Fraud? Get in touch with a Sacramento tax attorney! - August 17, 2015