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Taxes For the Self-Employed | How to file the PERFECT Income Tax Return

1569 ratings | 96159 views
Being self employed is one the greatest feats a person can achieve. It gives one a true sense of freedom and control and is like a great sun shines day until the IRS comes along and brings rain clouds. Well... If you are looking for information on business taxes, freelance taxes, self-employed, a serial entrepreneur, a social media-preneur or or what to do with a freaking 1099-Misc or 1099-K... then you have landed on the right video. Enjoy and join the community. Find out exactly what you need to do in order to file that perfect tax return.
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Text Comments (281)
Natalie Segovia (3 days ago)
Very very helpful and im only half way through the video, thank you!
Thank you for watching... I'm glad it was helpful!
scott davidson (7 days ago)
thanks for taking the time to make this video bro,,,it really helped!!! ty
scott davidson Thanks for watching! Im glad it helped!
Christian Agundez (7 days ago)
im a truck driver working for a smalk company they pay me in personal checks tax free wtf do i do
LMAO @ "wtf". Christian thank you for watching! Well... you would do what any self-employed person would do as I outlined in the video. Keep track of the income and all of your expenses. I'm going to assume that they are not taking out any taxes, so therefore, I highly suggest that you start paying quarterly estimated taxes if you aren't already. Hope that helps!
Bren Grace (10 days ago)
This is helpful
Thank you for watching!
SwiftyBR (13 days ago)
So, i am a video editor, and made 10,000 for this year. This is where it gets weird, you're saying 15% but my stepdad is saying about a 3rd I need to pay?
Here are the steps you need to take: 1. Subtract your expenses (write -offs) from your Gross amount (total amount made) that will give you your "net" income. 2. If your "net" income is less than $400 then don't file at all. On the other hand, if your net income is more than $400, Multiply your "net" income by 15.3% (.153) and that will give you the amount of taxes you must pay. Because you are still able to be claimed by your parents (due to your age), you will need to file what is called a "dependent" return. Doing so will allow your parents to still claim you and allow you to file your own return. And also note that the 15.3% covers your Social Security. Hope that helps. If not let me know.
SwiftyBR (13 days ago)
Awesome! But I am 17, so I would need to calculate my Social Security in the as well correct? What about write offs? This all confuses me
First... thank you for watching! Next - congrats! $10,000 is a nice amount. So in this video I'm specifically talking about the self-employment tax which is 15.3%, however there are other taxes to consider. Therefore, more information would be needed to determine how much you need to pay exactly, but if you are filing by yourself and no one else is claiming you as a dependent, then if you are only reporting the $10,000 (minus expenses), then you would be ok only calculating the 15.3% on your "net" income. Hope that helps.
Newlyweeds 420 couple (14 days ago)
Howw can I email this man? I need his help! Please someone get me his email!!!!
Lol... Thank you for watching! All of the ways you can contact me is shown at the very end.
Johny Toker (15 days ago)
You helped me big time. Thanks for sharing your knowledge.
Thanks for watching Johny!
bignate678 (16 days ago)
Very Informative I’m a hotshot driver usuing my pickup is it possible to get money back
bignate678 (14 days ago)
Lol ok thanks brother
BigNate... Thank you for watching! In order for me to answer that question I would need a lot more info lol
Natu Beyn (19 days ago)
Great video but my question is what if we don't know how much our gross income is going to be like in the trucking businesses you don't know how much you going to much the next month do you have any solution s for me
Thank you for watching! Yes when you are self-employed... projecting future income can be difficult especially if you don't have a business plan with financial projections. That's why we do everything on a quarterly basis (after the fact). So I suggest that you place some dates on a calendar and check your financials every quarter (every 3 months). Hope that helps
Paxton VLOGS (21 days ago)
Have you done one like this for 2018 small business tax filing? My husband is about to step into this for the first time as a 1099 contractor for a company, and I’ve always been the “bill payer” in the family. I’m a little scared, but can really absorb the instruction due to how you present it so well. I like your videos!
Paxton VLOGS (20 days ago)
Action From Square One thank you! You are so helpful! ❤️
Hello and thank you for watching! You husband is taking a giant step lol! I understand your role 100% as that is the role my wife plays. No need to worry as long as you are keeping track you will do just fine! I do have a video that talks about the tax changes in 2018 and you can watch that here: https://youtu.be/deV9z3v0YdQ Also I have a FREE "Cheat Sheet" you can grab that will outline the steps needed to be on track and you can nab that here: http://selfemployedtaxacademy.com/. I hope all this helps... If not let me know!
Sveta N (28 days ago)
In the beginning you said that self employed tax is 15% but half gets credited, so its 7.5%. But at the end in example of Brian, single with 75000 income you make his se tax 10000 something. But thats 15%. So which is it for se, 7 or 15%?
Great question! It's 15.3%. You still are going to be taxed the full amount which is why, in that example, his self-employment "tax" is for the full amount. The "credit" he gets for 1/2 is on the font page of his tax return listed as an adjustment. So in the end... there is a reduction, it's just not dollar for dollar.
emoneywon (28 days ago)
thanks for the intel.
Thank you for watching!
Sveta N (29 days ago)
"Nowwww... you need to choose your method. But you don't have to fiill out W4". What method, whats W4 form??? You dont define things.
Well thank you for watching! And I do define things. This is video # 5 in a series. If you were to watch the entire series you would have a better understanding... and if you don't know what a W4 form is (especially if you are W2 employee) then I strongly suggest that you go back and watch the entire series.
Mushky Fuchs (1 month ago)
Great video! Thank you so much!
Hello Mushky Fuchs and thank you watching! I'm glad you enjoyed it. Hope it helped.
Joanne Russell (1 month ago)
Thank you for making this so logical and simple. It gives understanding and you learn the ino Plus you presentation still is upbeat while being factual--teach on young man. Do you have any more I can watch?
Hello Joanne and thank you for watching! I truly appreciate the comment... it made my day today thank you! As far as having more to watch, I did just complete 3 more videos that are on my other website. If you are truly interested you can get access to the videos here: https://selfemployedtaxacademy.com/free-video-training/
WReTCHeD AP (1 month ago)
Hello good sir! I have to file taxes on roughly $1,150 worth of income from services rendered. Basically I was paid to move people’s things. Do I need to file 1099, CEZ? I’m so lost. Thank you!
The you will be just fine using the schedule c-ez.
WReTCHeD AP (1 month ago)
Action From Square One thanks for the response. Basically all I was paid for was to move people’s stuff, furniture etc... Kind of like a summer job for students. But more localized in a way it was friends of friends and such that were paying me cash for the moving.
Hello and thank you for watching! The use of form Schedule C or Schedule C-EZ all depends on your what you are writing off. If you don't have a lot of expenses then you should be fine to use the C-EZ. If you are using a software then it should make that decision for you. On the hand... if you are hiring someone make sure they don't try and force a Schedule C and charge you more. Hope that helps.
nanci kuba (1 month ago)
My daughter worked for a company called"Postmates" & didn't receive a 1099 misc form that you've shown in your video. I had IRS mail me a1099 misc packet , but now I hear you say the reason for not receiving a 1099 misc may be because the company didn't report it. How can you know if they did?
Hello and thank you for watching! I can only assume that your daughter didn't earn enough for them to issue a 1099-Misc. The law states that if a person did not earn more than $600 , then the company does not have to issue a 1099-Misc. However, your daughter is still responsible for reporting her earnings unless it's less than $400. And to answer your question... the only way to know if they reported anything to the IRS is to call them and request a "Wage & Income" transcript. That will tell you everything that was reported to them in that year. Hope that helps!
Evie Tancredo (1 month ago)
I need to file a tax return to be able to get an ITIN. I only made round $1,200 for the whole year doing little odd jobs as a stay at home mom. How can I do this?
Hello Evie. I would suggest that you just file a self-employed tax return. Hopefully you kept track of all or your write-offs and deductions so that you can reduce the self-employment tax, but if you didn't and you are just going to claim the $1,200 you can expect to have a tax bill of around $170. You can use either one of the online softwares to do this - but I would recommend a low cost like TaxSlayer (https://www.taxslayer.com/efile/Self-Employed) as they are cheaper but will result in the same outcome. I hope that helps and thank you for watching!
Souls Fanatic (2 months ago)
Quick question, if I run multiple self-employed businesses do I have to file separate tax papers for each? What if I have a normal employed job and a self-employed job?
Hello and thank you for watching! To answer the first part of your question I would say that it all depends... If the businesses can be classified as being within the same industry then you can just file one form. On the other hand, if they cannot, then you will need to file multiple forms. For the second part: If you are both self-employed and a W2 employee, then you still report both incomes on the same form (as long as you have not incorporated). I hope that helps. If you need more info, I would strongly suggest enrolling into my online course: http://selfemployedtaxacademy.com If you thought this video was informative then you will love the course!
Robert Willis (2 months ago)
The employer filed more then I actually made
Robert Willis (2 months ago)
Robert Willis (2 months ago)
Robert Willis (2 months ago)
I need that email bro
Hello Robert.... Which email is that you need? My email is listed at the end of the video so I'm not sure which email you are talking about.
tremaine buford (2 months ago)
Hey Tyrone...i have two small services concrete forming and finishing and heating and air automotive/residential.....i also worked as a finsher as a 1040 employee....my question is my tax prepareer said because i made enough on my 1040 i didn't need to file my self employment...but she put in some othwr things that got me a audit...can i go back and put my self employment on my 2017 return....
tremaine buford (2 months ago)
Action From Square One Thanks Tyrone.....I'll let you know what happens...
Hello Tremaine... Thank you for watching! Sorry to hear about you getting audited. I hope everything worked out well and in your favor, but to answer your question - yes you can always go back and make corrections. in order to go back you will need to fill out a form 1040X (amendment) and also fill out the appropriate forms for the self-employment. Hope that helps.
Heather Erickson (2 months ago)
No taxes are required if you did not make “income” “wages” which are acquired from holding a public office or government privilege. Why do you think they call it federal income tax. It doesn’t apply to MOST.
Wingy (2 months ago)
Thanks Tyrone. Very informative and you break it down so it's easily understandable. Much appreciated. Subscribed!
Hello Wingy! Thank you for watching.
Screw The Media (2 months ago)
This is the best video I've found on taxes in general.
Truly appreciate the love and thank you for watching!
well done! i love how you simplified it...
Thank you and thank you for watching! I would love to know more about Tax 101... maybe we can collaborate on something.
iamLoKi (3 months ago)
I have another question. I was reading how you don't have to pay Quarterly taxes unless you owe over $1000 in taxes. How do you calculate that? This would be my only income for the year, so would I base it off my profit (earnings minus my expenses)? In this case I doubt I would make enough to go above poverty level so I don't think I would owe any taxes. Or do I base it off Self Employment tax (medicare/social security), in which case I used an online calculator which says I would need to make over $7000 before I owe more than $1000. I'm pretty confused on how to calculate quarterly taxes. Thanks again for your awesome videos and responding to comments! Super helpful!
Traci S Campbell (3 months ago)
Wish I saw this kind of info when I first started my entrepreneurship journey
Traci S Campbell (3 months ago)
Yes...indeed! :-)
Hello Traci and again I thank you for watching! Trust me I know what you mean... But I'm grateful for the opportunity to save others the trouble lol.
iamLoKi (3 months ago)
Great Video man! I was wondering, if I do toy reviews, what deduction category would the toys that I review be? I looked through the form and I can't tell which they fit under. ☹️
iamLoKi (3 months ago)
Thanks man! Great info! Oh, I have another question though. I was reading how you don't have to pay Quarterly taxes unless you owe over $1000 in taxes. How do you calculate that? This would be my only income for the year, so would I base it off my profit (earnings minus my expenses)? In this case I doubt I would make enough to go above poverty level so I don't think I would owe any taxes. Or do I base it off Self Employment tax (medicare/social security), in which case I used an online calculator which says I would need to make over $7000 before I owe more than $1000. Thanks again! And Thor says hi back and is enjoying his new eye. lol!😂
Hello Loki and thank you for watching! That is a great question! For this I would say focus on the service that you provide rather then the product itself. Therefore, I would recommend 1 of these 3 possible codes: 519100 (other information services) because you are providing information about the product / 541800 (advertising and related services) because you are in fact advertising the product / and 541910 (market research) because you are in fact determining how the consumers are reacting to product, therefore providing valuable feedback for the maker of the product. So, in my opinion, those would be the 3 options that I suggest. Hope that helps. Also tell Thor I said what's up!
David Pixley (3 months ago)
(StyleME) StyleBitsnBobs (3 months ago)
Glad I found this video. How do I know what form to use? For example, I do online tutoring - it says that I have to make over $600 to get the 1099. What should I do to get myself prepped for the next tax season?
IslandGalOne (3 months ago)
Thank you! Your videos are truly valuable! Cheers!🍻
Well thank you for watching!
Mfbsmd sifsai (3 months ago)
what do i need to do before being self employed? do i start my buisness then file my taxes after my income is made. do i start llc or s-corp?
First thank you for watching! Those are some excellent questions! If I can offer any advice about what to do before becoming self-employed... it would be to get mentally ready. Being self-employed is a challenge but its reward is great! As far as starting an LLC or S-Corp that all depends on your business needs and what you can afford. Just know that it is not necessary to incorporate to start a business.
Ian Corzine (3 months ago)
Thanks for the great points about financial planning!
Newlyweeds 420 couple (14 days ago)
The Self-Employed Tax Guy How can I contact you? please I need your help! Please please please can I get your email? How can I contact you?
Hello and thank you for watching... I never though of it like that, but for taxes I guess so lol.
Heart Felt (3 months ago)
Had one more question for you before I file today, being a small Non-profit organization and in exempt status what would be the best form for me to file 990 990-EZ or 990 Ne -Post card?
Gail Charles-Walters (3 months ago)
very informational... I started an LLC last year what if i did not make any income but have money in my Business account?
That's an excellent question! Thank you for watching btw... But if you didnt earn any income there is nothing to report even if you have money in the bank account.
Heart Felt (3 months ago)
Very glad that I ran into your video, looked at your video a few times.
Heart Felt (3 months ago)
I live in Texas a Tax free state what are my options? and do I divide my AGI by standard deductions to get my Taxable income?
Heart Felt (3 months ago)
Thank you for your reply. One more day to finish my taxes
Yes Big Tex is a State that does not have any "State" taxes so as far as that goes... you are good to go. In order to get to taxable income, you need to subtract your deductions from your AGI.
Heart Felt (3 months ago)
Two questions; want to know if you file your 2016 taxes on your personal taxes and it was not file when filing my 2017 taxes can it be added to my business taxes?
Heart Felt (3 months ago)
They give you a 3 year period to file correct? So, what you are saying is that I can file for each year.
Hello and thank you for watching! When filing taxes, you can only file on a per year basis... so what happened in 2016 must remain with 2016. Likewise only 2017 info can go on 2017 taxes.
Zuluisms (4 months ago)
You are an amazing human being for breaking this down for so many of us. THANK YOU!!!!
I am truly humbled by your comment!! Thank you for watching!
You have helped me and my family business greatly!
Wow!!! That is such a great statement to hear! Thank you for watching! I'm glad that I was able to provide value to you and your family.
hannah131313leah (4 months ago)
My issue is that my income is varied it’s not going to be consistent
Well... as long as you keep track and total everything on a quarterly basis you will be just fine. I'm sure that almost every entrepreneur's income is inconsistent lol so don't worry about it.
hannah131313leah (4 months ago)
I cut hair And it’s my first year at this location and first time dealing with being an independent contractor
rifah lee (4 months ago)
Do i still need to print these forms if i use a tax software like turbo tax?
That's a great question! The answer is no. I would suggest that you store them digitally however.
Marco Moreno (4 months ago)
The best and easy explanation about self employed tax liabilities.
Thank you and Thank you for watching!
SideHustle 247 (4 months ago)
One more question let's say I ended up paying to much when paying the quarterly payment will I receive a refund automatically or do I need to request my form be reviewed or something with IRS. Also what about my state's return that still has to be done as well correct. Ty any videos on that.
Great question. If you over pay via quarterly estimated payments you will get a refund when you file taxes. So make sure to keep good track and records when making QEPs. And yes, the State still has to be done as well...
SideHustle 247 (4 months ago)
Great video I have questions...one asked already that has no answer can I just file annually..I took a severance package that will end in September so I will be filing next year no problem. Here the other part I have been doing good delivery as a independent contractor I should receive a 1099 for this year next January can I add that to my w-2 when i file for 2018.
Hello and thank you for watching! To answer your question... yes you can file wait until the end of the year and just file annually, but just make sure that the expected balance due if any is less than $1000. For the 1099 that you will receive... you will report that on a "schedule c" and then transfer the net amount to your 1040 and add it to the amount from the W2. Hope that helps.
erich gutzler (4 months ago)
Can I email you a question? And if so what is your email?
Tanisha Adjo (4 months ago)
People prenuer 👋🏽👋🏽
Thank you!
Chad Swartz (4 months ago)
I’m still trying to figure this out. How did you derive the $21,247 tax liability from a $50,000 net income. I’m not disagreeing with you I’m just trying to make it make since in my head. Thanks in advance.
Chad Swartz (4 months ago)
Action From Square One thank you. I will have to check out your other videos. I am getting ready to start a job as a subcontractor so I am just trying to gain as much tax knowledge as possible
Hey Chad thank you for watching... and no worries I get it. So that $21, 247 is a combination of both his federal tax liability and his Self-Employment tax liability. I'm not sure if you have seen the other video, but I go into depth about how to figure your tax liability there and if you haven't you can check it out here: https://youtu.be/LGt9VNfgZA4?t=6m16s. Hope that helps.
Yung Kartz (4 months ago)
Your videos are amazing!!! I have an important question... I'm new to paying taxes and just started a business (self-employed) a couple of months ago and was wondering what taxes will I have to pay on my income? What I have down in my book is: - Income Tax - Self-employment Tax - State Tax - Local Tax Does this sound right to you? Am I missing anything important? How much of my income should I be saving on taxes being that I'm self-employed? Would love to hear back from you soon!
Yung Kartz (4 months ago)
Action From Square One Thanks man this helps a lot!
Hey Yung Kartz.. Thank you for watching! Sounds like you have everything all set and ready to go. The only other "tax" I would check for to see if you need to track it is the Sales and Use Tax. Some States have it, some don't. Plus it also depends on your industry and what products and services you offer. Hope that helps
Stovie Wan Kenobi (4 months ago)
Great video. Perfect In substance & clarity. Thank you
Thank you for watching!
Ramon Heard Jr (4 months ago)
What 1099 tax form should I get to fill out for 2015 and 2016 uber driver.
First, thank you for watching... Now can you clarify for me are you talking about which forms you should receive from Uber or are you asking which forms should you use to file your taxes?
Dorene Bonafilia (4 months ago)
Super informative. Thanks for helping us independent contractors stay employed without an IRS lein.
Thank you for watching! Yes avoiding leans and jail time is important lol!
Anthony Jacobs (4 months ago)
Hi, I like the things you talk about. would like your email
Hello and thank you for watching... all of the ways to contact me are listed at the end of the video.
Anny Rodriguez (4 months ago)
Hello, thanks for this video, My question is: How can i keep track of my cash payments in order to report it to the IRS . What method will they accept as proof? Thanks N.Y.S has held my tax refund for the last 3 years because i cant prove it
Anny Rodriguez (4 months ago)
Action From Square One thank you so much for your reply 😊
Anny Rodriguez Thank you for watching! That's a good question... my answer is to use a seperate bank account in which cash deposits can be clearly identified. Another option would be to use some sort of tracking software like quickbooks or Xero. Also note that a simple excel sheet will work as well. Hope that helps.
Margarita Octa (4 months ago)
Can I get your email?
Hello... All of the ways I can be reached is at the end of the video.
Amazing Grace Ministries (4 months ago)
Excellent information.
Thank you so very much for watching!
Agustin Molini (5 months ago)
Thank you for this. Excellent and informative video.
Agustin Molini Thank you for watching!
Haze s (5 months ago)
Very helpful, thank you man
Hayes Steiner Thank you for watching!
Terrie Cotham (5 months ago)
Thanks for your time and well done as we all need help at times
Terrie Cotham Thank you so much for watching!
Big$MoneyBoss (5 months ago)
How do I know when to file taxes like how much do i gotta make
Big$MoneyBoss (5 months ago)
Ok thank you so I will have to pay once I make more then $400 aw man that sucks lol
Well... it all depends. If you are filing with just a W2 then the filing threshold for tax year 2017 is $10,400 meaning that if you make less than that, then you are not required to file. However, if you have income from self-employment, then your threshold is $400 meaning that if you have "net" income of more than $400 then you are required to file.
Bamacher59 (5 months ago)
Thanks I appreciate the help thanks
Thank you so very much for watching!
tete 4life (5 months ago)
Question, in 2016 i worked for an employer and ran a small business as well. In 2017 i only filed the employer W2 for 2016 tax year. Can I go back and file that business tax now? I've already filed 2017 tax year and it was only the business. Would this be amended for tax year 2016 or just a regular return since it was separate from the W2.
Hello, you can go back and file. You would file whats called an amended return (form 1040X) but you would have to also do a Schedule C as well to show the income and expenses for the business and attach that to the 1040X
Tyjay Myers (5 months ago)
Hello I wanted to ask you a question so in single with one dependent and I'm self employed as a barber I charge $12 a haircut and try to get about 15 cuts per day for about 4 day i would like to know how would I be able to file and where I can get a 1040 from
You would find your tax liability after you have figured out your income, expenses, deductions and credits. What's left over after all of that is the "Taxable Income" and from that amount you will determine your tax liability.
Hello and thank you for watching! sounds like you are 100% self-employed... if that's the case, you would file like any other self employed individual would. You would calculate your income and expenses and pay taxes on the balance. You could either use a paid Tax Preparer or do it yourself using one of the online tax prep software. You have a dependent so it sounds like it may be worth looking into.
Tyjay Myers (5 months ago)
And how would I find my tax liability
Ace Master (5 months ago)
Wow! Thank you so much for this video and all the clarification! Much appreciated!
Ace Master Thank you so very much for watching!
Ivan (5 months ago)
Lets say someone donated me money in between from $300-1500 and in return I send them an item that is worth around that price. Is it legal? Do I have to file this?
Ivan Juarez thats a great question but the answer is yes. That would be considered a barter and that is a taxable event.
lastone032085 (5 months ago)
What if I work a normal job and work a IC side gig.
First thank you for watching... and if you do both the same still applies. you will just need to make sure to NOT commingle the funds.
Gideon James (5 months ago)
If Brian Made the $75,000 in 2017, is he making those quarterly payments in 2018?
Gideon James assuming that nothing has changed with Brian then yes.
1R083rt (6 months ago)
Can i still file my taxes if i have a copy of all my checks, ( my old boss is avoiding giving me my 1099 form) ?
You sure can... as long as its for 1099 income and not W2
1st Page Google (6 months ago)
I wanted to say that i have listened to hundreds if not thousands of informational videos. Your ability to share this information is crystal clear. You also seem like one of the nicest guys! I just wish to say thank you for this information as i am learning so much from you. thank you and blessings always! franco
Franco... Thank you so much for such awesome kind words! Also thank you for watching and blessings always!!
Nicolas Alvarez (6 months ago)
thank you so much man!
Thank you so much for watching!
Punketeria1369 (6 months ago)
Great advice, I thank you!
Thank you for watching!
Tone Okotie (6 months ago)
Will I get my 1099 from someone or can I get one from the library
Tone Okotie The 1099 is issued to you by the person who hired you. If you are trying to submit a 1099 for someone you paid then the best place is to go to Staples or some place similar to get the program to file 1099-Misc
Anchetta Sutton (6 months ago)
Thank you! and Thank you for watching!
Wanders Gion (6 months ago)
Very straightforward explanation for someone like me who’s in this situation “by accident”. Thank you.
1R083rt (6 months ago)
Action From Square One Awesome, i will update this here in the near Future.
yes keep us updated... things like this happen way too often.
1R083rt (6 months ago)
Same happened to me, my boss should of gave me a W2 form but he had me working for his company his costumers and said im a self contractor that i was going to get a 1099 form. But after quitting the job i have contacted him several times to mail me my 1099 or email to speed the process and he still blows me off... im wondering if i can still file my taxes, with out that form since i have a copy of all my pay checks. I will update this if anyone is interested in knowing what happened next...
Wanders Gion Thank you for watching! And hey accidents happen... just make it worthwhile.
lauren morgan (6 months ago)
tyrone pleasw email me. i have a few questions abt preparing my return and line 41 is negative ,im abt to cry i dont know what I've done wrong [email protected]
Ok great so you solved it! Congrats!
lauren morgan (6 months ago)
Action From Square One yes. lol it was very simple. i added asset to the wrong item
Hello Lauren and thank you for watching. I will email you today. Don't cry...I'm sure its something simple that can be easily fixed.
Samantha Ferguson (6 months ago)
Hello! What is your email address?
Hello! Thanks for your videos, O have a question maybe you or s someone here can give me some guidance ☺. We are self employed and get a 1099 misc at the end of the year, however this year for the first time we also had independent contractors so we sent out 6 1099 misc forms. My question is, where does the total amount (amount listed in form 1096) from these 1099s go in my business expenses tax form? I hope I'm making sense! Thanks in advance for any advice!
Hello Mirna and thank you for watching! That is a great question and it makes perfect sense. The answer to your question is to put the total amount (from form 1096) on line 11 of the Schedule C labeled "Contract Labor". I hope that answered your question, if not let me know.
Christopher Easler (6 months ago)
I am so confused on line 43, is taxable income you net?
You sure can.
Christopher Easler (6 months ago)
Yeah. Can I email or send you a PM?
Are you doing all of this by hand?
Christopher Easler (6 months ago)
Oh ok, so for example if the total amount of the net income is $9,000 just put the full $9,000? You would not minus the SE tax from it? Just want to make sure I get everything right. My first time filling one of these out, did some independent contract work online last year and this is all new to me.
Hello Christopher and thank you for watching! Line 43 is your "total" net income. But don't confuse it with your "business" net income. Line 43 is the amount that your tax is figured/based on. Hope that helps.
Trevor Blake (6 months ago)
How can I do my taxes if I did not get my 1099 I cut trees and made cash all year was told I will get a 1099 but had a falling out with boss and now won't give me my 1099
How can I be of some assistance?
Margarita Octa (4 months ago)
Action From Square One I need your help
Trevor Blake (6 months ago)
Action From Square One baically I filed self-employed using total income of 1099 was that okay?
First off, by law he has until 1/31/18 to have the form, at minimum, postmarked to be mailed to you. However, because you were paid via 1099-Misc, you can use your total earnings as a way to file.
Trevor Blake (6 months ago)
Action From Square One my boss is refusing to give me my 1099 because I quit on him. Have started my taxes without 1099 by putting my total earnings in as self-employed this includes my 1099... Will this work in place of my 1099? Thanks for help
Andrea B (7 months ago)
Hi, if i have a question regarding how to file my taxes how can I ask you via a private message. I believe that you mentioned in the video that one can send you a message if we have questions
Hello and thank you for watching the video! Yes you sure can send me a message privately. I look forward to hearing from you soon!
One Deep (7 months ago)
Whats your email?
15:51 in video is where you can find all of my contact info.
Wolf (7 months ago)
You are very intelligent! Great job , very educational. You broke it down so well you should be so proud thanks
Man... Thank you for watching and for that ego boosting comment! Much appreciated! Stay tuned... I have an update video coming soon to discuss the impact of the new tax law that just took effect.
iamLoKi (7 months ago)
What happened to all the replies with answers? Im reading throw them, and they say "thanks for the answer" but there is no answer. Did they get deleted?
Hello Loki, I'm not sure what may have happened at the time you were looking but I can see my replies. You may have to actually click on the comment to see the thread. If that doesn't work... ask me your question directly and I will do my best to answer it.
orin jackson (7 months ago)
Good video thanks
Thanks for watching!
smartboy20070 (7 months ago)
Thank you for helping . but what is the differeance between the net income and the taxable income ? What is the difference between 1090, 1099 and 1040 forms ? Thanks in advance .
Thank you for watching! There really is no "difference" between the net income and the taxable income. The net income is the amount that you pay taxes on (if your income is solely from being self employed). On the other hand, the only difference between the two is the fact that the "Net income" is only dealing with the income from the business and the "Taxable income" is the total of all income reported on your tax return that is taxable. As far as the forms goes... they are just reporting forms. The 1099Misc is fro reporting income from self-employment and the 1040 reconciles all the income to the IRS.
Tariq Khan (8 months ago)
Question for you. We have a Cleric in our mosque but the management pays him cash every month. I told management not to pay him in cash because if we ever get audited they would want to know what is that Misc charge every month. So what can the management do to make it legitimate? 1099 or W2?
Hello Tariq and thank you for watching! That is a great question and the answer comes down one simple principle - control. If management has any level of control of the Cleric outside of desired results, then the Cleric has to be treated as an employee and therefore given a W2. On the other hand, if the Cleric has full freedom to come and go as they please and the only concern that they have is the outcome of the work performed, then they are considered to be an Independent Contractor and can be given a 1099. Also note that, depending on how long they have been doing it this way, they can go back and amend any entries on the books and if payroll is needed because of W2 then they are going to need to do some back payroll. Hope that helps!
brushrome (8 months ago)
Thank you bro. Very helpful
Thank you for watching!
Wholesaling Tony (8 months ago)
How do you become a tax preparer for others? Courses and the # I hear you need
Hello Tony and thank you for watching. The process for becoming a tax professional varies by State. So what I would do is Google "Tax Prep Classes" and see what pops up. Once you have found a suitable class... call them and see what the State requirements are. From there just enroll in the class and learn the basics and then hone in on a subject that you are passionate about. Any questions let me know.
johnrtrucker (9 months ago)
Only thing that I don't disagree with but is kinda mis interpreted by the irs not this YouTuber is that I'm an "independent contractor" is false even though I am leasing my own semi I am employed by my company I filled out a regular application and every pay check I receive is from my company not the many customers I deliver loads to so for me it's kind of a grey area I pull my companies trailers I don't pay leases on them but I am leasing a truck
Hello Johnrtrucker and thank you for watching. Yes, you are in a unique situation when it comes to your taxes. It would appear as if you are in a category called Statutory Employee. Which is a hybrid type of employment. Here is a definition I copied from the IRS.Gov website: "If workers are independent contractors under the common law rules, such workers may nevertheless be treated as employees by statute (statutory employees) for certain employment tax purposes..." Here is a better definition taken from Wiki: A statutory employee is an independent contractor under IRS common law that is treated as an employee, by statute, for tax withholdings.
4EvaBeaux (9 months ago)
New subscriber! Great info.
Thank you for watching and subscribing!
auomauom (9 months ago)
I still do not understand how to calculate Total Tax Liability? If Brian earns 75k, how do you determine his tax liability and S.E. tax. ?
Well what you do is take is total income and determine his "personal" taxes using the look up method (explained in the link from the previous comment) and then we take that same number and multiply it by the 15.3% (the S.E. Tax).
auomauom (9 months ago)
How did you come to the conclusion that "Brian's tax liability is $10,650?, and his self employment tax is $10,597? I'd like to see numbers so I can under this better.
Hello and thank you for watching!  To calculate the Total Tax Liability we had to figure the tax liabilities separate. First we had to determine the personal tax liability that goes on line 43 and then determine the S.E. tax. Once we had the two individual numbers... we add them up and divide by 4. I hope that answered your question and if you haven't watched the video on how to determine the personal tax liability I suggest that take a look at it: https://youtu.be/LGt9VNfgZA4
Joshua Rispoli (9 months ago)
Excellent presentation- thanks!
Thank you for watching!
Edward Dudley (11 months ago)
Thanks bro for the video.
The Self-Employed Tax Guy (10 months ago)
Thank you for watching!
Emily Bunch (11 months ago)
This video has helped me so much! I am just starting out as an independent contractor and was so lost. I've been taking notes to help me get the whole process understood! Toward the end of the video, I got a little confused. What is tax liability and how do I calculate that? Also, do you have any tips for someone just starting out? Thank you!!
The Self-Employed Tax Guy (11 months ago)
Hello Emily. I apologize for the delay, but let me answer your question... The $600 limit is an aggregate total. So the idea of working for multiple companies and earning under $600 per company will result in NOT having to pay taxes is false. As far as having a full time position, your taxes from your full time job should not be impacted by your self-employment. However, if you wanted to increase your withholding to account for your S.E. taxes you could do that as well. Hope this helps.
Emily Bunch (11 months ago)
I will definitely check that out because I am starting off with absolutely no base knowledge on this. I do have another question. I work full time, so my freelance jobs are all supplemental income. You mentioned that I am not required to pay taxes if I make under $600 per year. This is per company, correct? So theoretically, could I work for multiple companies at once and as long as I don't make more than $600 from any single one, I wouldn't be liable to pay taxes on this income? Also, does the fact that I work full time as an employee of a business affect this strategy? Will the sole proprietor taxes have any effect on the taxes involved with my full time position? Thank you so much for your help!!!
Mr.Lavelanet (1 year ago)
By filing this way I am not required to have a business structure such as a sole proprietorship or LLC??
Hello and thank you for watching! I do apologize for the delay and I hope you found your answer. If not here is mine: No specific business structure is required so filing as a Sole Proprietorship or a Single Member LLC will have no effect. It will all be the same.
Shelley Still (1 year ago)
Thank you for this , I think it has helped me make a decision. I do receive SSDI, and a smaller annuity. Had an offer but only as consultant. I don't think it will work to my benefit. Maybe an email is in order, if you could offer advice?
Victor Lopez (1 year ago)
wow. , I worked with 10-99 I revive like 6 k taxt reurns. I have to kids. I make like 30 k a year. so that minds my taxt prepar is doing something wrong??? thank you I a little bit confuse

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