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They do not withold any pay from my check. I get 4,250 dollars on each check and I am told to save taxes for myself. I don't know how much I should save, however, and more reading on the IRS website just brings up more questions as I read.
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Sep 12, 2011 16:05
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What should the normal procedure be for the exercising of options/selling of stock during the year? I normally sell ESPP shares twice a year and may sell some options this year as well. The ESPP was a giant tax pain in the rear end because the company just started reporting the income portion on the w2 correctly as of tax year 2010. Now it is not so bad. There is still usually a cap gain on that as well, though. If I sold options it would be all capital gain. My tax is not withheld for the espp/option gains. I usually just keep in mind a rough tax estimate of what I will have to pay at tax time. I remember in the past not only having to pay but pay a penalty (small one, but still) for not submitting tax on the gains earlier. I don't even know how to go about reporting those gains or paying that tax in the middle of the year. I really hope I am not expected to adjust my estimated withholding based on variable espp/stock sums of money.
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Sep 12, 2011 20:02
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TreFitty posted:They do not withold any pay from my check. I get 4,250 dollars on each check and I am told to save taxes for myself. I don't know how much I should save, however, and more reading on the IRS website just brings up more questions as I read. You will owe SE tax then. Whether you qualify for the FEIE and how much depends on a bunch of different factors that go beyond what I can tell you here.
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Sep 12, 2011 20:48
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Infinotize posted:What should the normal procedure be for the exercising of options/selling of stock during the year? You are required to pay in the lesser of 100% of your last year's tax (110% if your gross income is more than $150K), or 90% of your current year's tax to avoid underpayment penalties. You can do this through adjustments to your paycheck withholding, or by making estimated tax payments to make up the difference between the required amount and your withholding.
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Sep 12, 2011 20:50
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I'm interested in learning about US taxes on international companies so I'd welcome recommendations to websites or books. Here's the kind of question I'd be looking to have the knowledge to answer. Your client is an American citizen. He runs a company that does various technical consulting for other companies. So for instance a company may give him their sales data and his team of economists will determine how the prices should be adjusted to maximize their profits. He finds that his company can do their job regardless of the physical location. He asks if he expatriated to the Cayman Islands and established a corporation there would he still be liable for US Taxes. Now first, I actually am interested in the answer to that sample question if you know it. But more importantly I where I can get the knowledge to answer questions like that aside from grinding through IRS.gov.
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Sep 14, 2011 18:36
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Furu, you practice in CA right? How much would it cost to hire you to do taxes at years end?
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Sep 14, 2011 22:50
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Daeus posted:Furu, you practice in CA right? How much would it cost to hire you to do taxes at years end? Most likely somewhere between $200 and $10,000. If you would like something more specific send me an email with an outline of your situation to russell@barnettaccounting.net.
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Sep 14, 2011 23:30
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Oceanlife posted:I'm interested in learning about US taxes on international companies so I'd welcome recommendations to websites or books. Here's the kind of question I'd be looking to have the knowledge to answer. Research your own class homework!
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Sep 15, 2011 01:08
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The client doesn't have to pay any taxes no matter where he lives because the 16th amendment was never actually approved, hth.
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Sep 15, 2011 01:25
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AbbiTheDog posted:Research your own class homework! I graduated a long time about, but thanks for the reply I guess.
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Sep 15, 2011 02:51
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scribe jones posted:The client doesn't have to pay any taxes no matter where he lives because the 16th amendment was never actually approved, hth. Nah, they still owe state taxes, just not federal. At least under that argument.
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Sep 15, 2011 03:02
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furushotakeru posted:Nah, they still owe state taxes, just not federal. At least under that argument.
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Sep 15, 2011 04:36
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quote:I graduated a long time about, but thanks for the reply I guess. I suggest teaming up with poofactory for your new venture in evading US taxes. Maybe you two can scrape together the $5,000 needed for an accountant that specializes in international taxation to think about your idea for an hour before deciding to just tell you it doesn't work like that.
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Sep 15, 2011 11:55
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Admiral101 posted:I suggest teaming up with poofactory for your new venture in evading US taxes. Maybe you two can scrape together the $5,000 needed for an accountant that specializes in international taxation to think about your idea for an hour before deciding to just tell you it doesn't work like that. I was asking for a book I could read on the subject and giving an example to highlight the subject area I'm looking for. If you know one great, I'd appreciate a recommendation.
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Sep 15, 2011 17:16
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Oceanlife posted:I was asking for a book I could read on the subject and giving an example to highlight the subject area I'm looking for. If you know one great, I'd appreciate a recommendation. Google it first, there's tons of examples about how Ireland/carribbean accounting works. http://taxprof.typepad.com/taxprof_blog/2010/07/crs.html And my google search probably has the IRS all over me now, thanks.
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Sep 15, 2011 18:27
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The short answer is that a US citizen's worldwide income is taxable regardless of where they live. If a citizen wishes to renounce their citizenship their worldwide income is still taxable for 10 years following, and it is only limited to 10 years as long as the person files a specific form each year. The corporate income might be free from US taxation as long as they aren't physically doing business inside the US.
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Sep 15, 2011 18:31
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furushotakeru posted:The short answer is that a US citizen's worldwide income is taxable regardless of where they live. If a citizen wishes to renounce their citizenship their worldwide income is still taxable for 10 years following, and it is only limited to 10 years as long as the person files a specific form each year. If its a corp registered in the Cayman Islands and owned by American shareholders, even if they aren't doing American business, its my understanding that you owe American taxes. You basically end up paying taxes on corporate income whether or not you take a distribution. That said, its not a bad thing... you don't incur additional tax by doing business in this way because there are several tax-free jurisdictions.
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Sep 16, 2011 07:17
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Sharkface posted:If its a corp registered in the Cayman Islands and owned by American shareholders, even if they aren't doing American business, its my understanding that you owe American taxes. You basically end up paying taxes on corporate income whether or not you take a distribution. And I mean if that was really a concern, it's not like the US lacks S corps or LLCs.
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Sep 16, 2011 10:02
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Small White Dragon posted:Wouldn't you owe personal, not corporate, taxes? There is a form 5471 to report foreign corporations that have significant % of US shareholders, but I am not clear off the top of my head whether income taxes are assessed on corporate profits. The only one I do is an Indian company that hasn't made any money yet. 5471 is essentially a P&L and B/S similar to a corporate tax return, so it is conceivable.
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Sep 16, 2011 17:19
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Small White Dragon posted:Wouldn't you owe personal, not corporate, taxes? It's a personal tax assessed on the percentage of a corporations income distributable to the American shareholder. The shareholder is liable for reporting it and paying it. It's assessed on corporate income, distributed or not, but paid by the shareholder.
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Sep 16, 2011 17:33
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In other words "the IRS is way ahead of you"
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Sep 16, 2011 17:36
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furushotakeru posted:In other words "the IRS is way ahead of you" It's not like you're going to find anything new that hasn't been tried yet. You don't think the big companies don't have herds of tax lawyers wandering around whose sole job it is to get around the tax laws? We only hear about this stuff years after they start and it finally gets worked through the courts.
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Sep 19, 2011 17:06
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My head almost exploded this morning when I heard two different morons blathering on about how taxing capital gains is double taxation. I don't think they know what a capital gain is. It's going to be a long election campaign.
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Sep 19, 2011 18:15
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If everyone understood taxes, what would you do with your life?
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Sep 19, 2011 19:05
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furushotakeru posted:My head almost exploded this morning when I heard two different morons blathering on about how taxing capital gains is double taxation. I don't think they know what a capital gain is. They should scrap the capital gains rates, but if you hold the asset more than one year, you get to adjust the original cost basis for inflation.
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Sep 19, 2011 22:32
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Modified Decelerated Cost Appreciation System?
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Sep 19, 2011 23:42
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I am sorry I literally killed this thread
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Sep 27, 2011 03:56
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So if I understand this right, if you have to pay your own taxes on your income you only have to pay self employment tax? I've been trying to find a definite answer as to what I will have to pay percentage wise but I've been coming across differing answers. Can anyone recommend some type of calculator to figure it out?
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Sep 28, 2011 00:16
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hello internet posted:So if I understand this right, if you have to pay your own taxes on your income you only have to pay self employment tax? I've been trying to find a definite answer as to what I will have to pay percentage wise but I've been coming across differing answers. Can anyone recommend some type of calculator to figure it out? I'm not sure what you are asking. Net income from self employment activities (consulting, freelancing, etc) is subject to both income tax at the appropriate rate for your overall taxable income, as well as 15.3% self employment tax (13.3% in 2011 though).
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Sep 28, 2011 00:33
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furushotakeru posted:I'm not sure what you are asking. Net income from self employment activities (consulting, freelancing, etc) is subject to both income tax at the appropriate rate for your overall taxable income, as well as 15.3% self employment tax (13.3% in 2011 though). My boss doesn't withhold anything from my paycheck and I am having difficulty trying to figure out how much I need to be setting aside to pay taxes because I've gotten 50 different answers. State of Ohio if it matters.
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Sep 28, 2011 00:52
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Hopefully someone can help me out with this question. Last year, my wife started her own business as a sole proprietorship. At this point, it's becoming obvious that we don't have the time or resources to invest to make this work. Is there anything we need to do to signal to the IRS that she's giving up and the business is closing? We filed all the schedule C, etc, for 2010 taxes, and we'll do that for 2011 as well (as the business has continued to operate this year). Do we just not do that in 2012 and thats the end of it? If it makes a difference, this was a seriously tiny home business, so there were no business premises, employees, etc.
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Sep 28, 2011 16:19
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Ashcans posted:Hopefully someone can help me out with this question. Just stop filing schedule C.
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Sep 28, 2011 18:16
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hello internet posted:My boss doesn't withhold anything from my paycheck and I am having difficulty trying to figure out how much I need to be setting aside to pay taxes because I've gotten 50 different answers. State of Ohio if it matters. Ok, let's see if I can shed some light on this. First of all, do you know what tax form your employer will be giving you? The choices are W2 or 1099. If he is not witholding any taxes from what he pays you, and you make anything more than about 10K per year, then he is probably treating you as an independent contractor and should be giving you a 1099. The bad news about this is that you will need to pay "self-employment tax" (see below). The good news is that this means your boss considers you an "independent contractor" which means you can and should deduct al kinds of business expenses against the income reported on your 1099. I won't go into the details of all the things you can deduct if you are self-employed, but it is a shitload and I hihgly recommend that you pick up a tax guide and take a look at the details of all the things you can deduct. This will make a massive impact on your taxes (in a good way) but you need to keep records and receipts. :-( In general, the IRS will "help" you to report all your gross income, but they will leave it up to you to figure out what you are allowed to deduct. If for some reason your employer will be giving you a W2 at the end of the year (if you don;t know, ASK now) that basically means you are an employee and tax should have been witheld from your paycheck all year long. In that case, you should ask your employer for a W4 form (which is used to calculate how much tax should be witheld from each paycheck), fill it out and give it your employer (make sure you keep a copy). The IRS frowns on employers and employees who don;t withold taxes throughout the year, and if this is your situation, you need to get this straightened out ASAP or you will be paying interest and fines at year-end. Ok let's assume you are indeed self-employed and your employer gives you a 1099 and you are able to deduct lots of business expenses. You will then need to pay taxes on whatever is left over, your net income. You will need to pay two types of taxes. 1. "Income tax" which is assessed by both the federal gov't and the state as a % of your net income, which increases as your income increases. I.e. you pay a smaller percentage of tax on your 1st 100K of income than you would on the secone 100K, et. 2. "Payroll taxes" which are used specifically to fund Social Security and Medicare, these are both federal taxes, so what state you live in doesn't matter. When you are an employee, these taxes are split 50/50 between you and your employer. In other words each of you pays 1.45% of your net income for Medicare and 6.2% of your net income for Social Security. So as an employee, you would see 7.65% of your paycheck being witheld and going to these two items (sometimes this is referred to as FICA). At the same time, an employer has to pay an additional 7.65% of your gross salary for these two programs. However, when you are self-employed, you are responsible for both the employer and employee portion, which means you need to pay the full 15.3% to the government. :-( But at least its with pre-tax dollars. Hope that helps clarify things.
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Sep 29, 2011 03:24
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Oliax posted:Ok, let's see if I can shed some light on this. Look at the new guy, kicking rear end and taking names! Nice work. The following link can answer 75% of the questions asked in this thread as well, if the posters would bother trying it first. https://www.google.com
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Sep 29, 2011 17:26
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Now let's all just hope our respective clients never find out about this "google" or else we might be out of a job 
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Sep 29, 2011 18:10
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AbbiTheDog posted:Look at the new guy, kicking rear end and taking names! Nice work. Why thank you! I figured I shouldn't just bitch about soccer and video games, and actually be a little helpful where I actually know something useful. furushotakeru posted:Now let's all just hope our respective clients never find out about this "google" or else we might be out of a job I don't know, many a call I get starts with: "so I read this on-line but I don't understand if it applies to me" :-)
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Sep 30, 2011 04:43
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Wasn't there a 2% reduction in employee side social security tax this year? I had done a few quarterly payments this year and noticed that several employers were withholding too much money from employees wages, attributable to using 6.2% instead of 4.2% for this year. Of course, everyone who was doing this were doing their own payroll and not using Paychex or ADP.
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Oct 5, 2011 08:03
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rentilius posted:Wasn't there a 2% reduction in employee side social security tax this year? I had done a few quarterly payments this year and noticed that several employers were withholding too much money from employees wages, attributable to using 6.2% instead of 4.2% for this year. Of course, everyone who was doing this were doing their own payroll and not using Paychex or ADP. Yes
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Oct 5, 2011 08:08
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furushotakeru posted:Yes SOMEONE'S GONNA GIT IT. Also, did they make any changes to the phase out for the American Opportunity Credit this year? If not, I think I may have found a misprint in my CPA review materials.  Oceanlife posted:I'm interested in learning about US taxes on international companies so I'd welcome recommendations to websites or books. Here's the kind of question I'd be looking to have the knowledge to answer. This won't specifically answer your question, but here's a short article on "The Global Tax Dance" by Edward D. Kleinbard. http://www.huffingtonpost.com/edward-d-kleinbard/the-global-tax-avoidance-_b_843318.html And here is a lenghty paper on more! http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1791769 rentilius fucked around with this message at 08:39 on Oct 5, 2011 |
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Oct 5, 2011 08:14
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AbbiTheDog posted:Look at the new guy, kicking rear end and taking names! Nice work. I did use google and that is what caused the confusion, I was told by the person in accounting to plan on saving one percentage and google was coming up with another that's why I was looking for clarification. I will receive the 1099 tax form. So I will only be paying the self employment tax that is 15.3%, so if I were to save every penny of that percentage I wouldn't have to pay any other taxes to anything payroll related? hello internet fucked around with this message at 15:02 on Oct 5, 2011 |
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Oct 5, 2011 14:57
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